Agrarian Law and Social Legislation by P. Ungos

Rights and privileges of domestic workers .....................................
189
Obligations of domestic workers ...................................................... 19l
Araw ng mga kasambahay ............................................................ ig^
Prohibited Activities ............................................................... 19 ^
When the employment relation can be terminated ...................... 192
Effect of termination without notice or before the
stipulated period ................................................................. 192
The just causes for termination of employment
by the domestic worker ....................................................... 193
The just causes for termination of employment
by the employer ................................................................... 193
Certificate of Employment ............................................................ 194
Criminal acts ................................................................................ 194
Criminal sanction ......................................................................... 195
CHAPTER 5
THE MIGRANT WORKERS AND OVERSEAS
FILIPINOS ACT OF 1995
Migrant Worker ............................................................................ 196

Deployment of Migrant Workers .................................................. 196
Liability of the POE A Governing Board, Government
Officials and Employees ...................................................... 197
Compulsory Insurance Coverage for agency-hired
migrant workers.................................................................. 197
Disqualification............................................................................. 198
Coverage of the insurance ............................................................ 199
Repatriation of migrant workers .................................................. 200
Emergency Repatriation ................................................................ 201
Repatriation of underage migrant workers — mandatory... 201
Illegal recruitment of migrant workers ........................................ 201
Syndicated Illegal Recruitment .................................................... 204
Large-Scale Illegal Recruitment ................................................... 205
Economic Sabotage ....................................................................... 205
Who can file the criminal complaint for illegal
recruitment ......................................................................... 205
Prescriptive period for illegal recruitment of migrant
workers .............................................................................. 205
Penalty for illegal recruitment of migrant workers...................... 205
Jurisdiction of the POEA .............................................................. 206
Power of POEA to order closure of establishment ........................ 206
Effect of closure order ................................................................... 207
Remedies from a closure order ............................................... 207
xv
Who can file a motion to reopen the establishment ................... 207
Who can file a motion to lift a closure order .............................. 208
Ground for lifting of the closure order ....................................... 208
Appeal ............................................................................................ 209
Prescriptive period for filing administrative cases .................... 209
POEA has no jurisdiction over claims of migrant
workers................................................................................. 209
Reliefs for illegally dismissed migrant workers ........................ 209
Recruitment agencies are solidarity liable with
the principal ......................................................................... 209
Exceptions to the solidary liability rule ......................................... 210
Services and privileges available to migrant workers ............... 210
Migrant Workers Day .................................................................... 213
CHAPTER 6
THE PATERNITY LEAVE ACT OF 1996
Meaning of Paternity Leave .......................................................... 214
Coverage of the Law ...................................................................... 214
Duration of paternity leave............................................................ 214
Not convertible to cash .................................................................. 214
Conditions for entitlement of paternity leave ................................ 215
When to avail of the paternity leave.............................................. 215
How to avail of the paternity leave ................................................ 215
Proof of childbirth or miscarriage .................................................. 216
Penal sanctions .............................................................................. 216
CHAPTER 7
THE SOLO PARENTS’ WELFARE ACT OF 2000
Solo Parent..................................................................................... 217
Benefits available to a solo parent ................................................. 218
Flexible work schedule .................................................................. 218
Parental leave for solo parents ...................................................... 219
Housing benefits ............................................................................ 219
Educational benefits ...................................................................... 220
Medical Assistance......................................................................... 221
CHAPTER 8
MAGNA CARTA OF PERSONS WITH DISABILITY
Persons with disability .................................................................. 222
Rights and privileges of persons with disability ............................ 222
xvi
Discrimination against persons with disability,
prohibited .................................................................................. 232
Ridicule of persons with disability, prohibited ............................. 235
Villification of persons with disability, prohibited ....................... 235
Tax incentives for benefactors ............................................................. 236
Penal sanctions .................................................................................... 238
CHAPTER 9
THE SPECIAL PROTECTION OF
CHILDREN AGAINST ABUSE, EXPLOITATION AND
DISCRIMINATION ACT
Purpose of the Law .............................................................................. 240

Meaning of children ............................................................................. 240
Employment of children ...................................................................... 241
Suspension or cancellation of work permit................................... 242
Hours of Work of Working Children .................................................... 243
Prohibited child employment............................................................... 243
Handling of child’s income or property ................................................ 245
Child abuse — a criminal offense ........................................................ 245
Child prostitution or sexual abuse ...................................................... 246
Attempt to commit child prostitution .................................................. 247
Child Trafficking ................................................................................. 248
Attempt to commit child trafficking .................................................... 248
Obscene publications and indecent shows........................................... 249
Other acts of child abuse ..................................................................... 249
Sanctions for erring establishments .................................................... 251
Jurisdiction .......................................................................................... 252
Who may file a complaint .................................................................... 252
Protective custody of the child ............................................................. 252
Confidentiality ..................................................................................... 253
Protection of children in situations of armed conflict................... 253
Rights of children arrested for reasons related to
armed conflict ............................................................................ 254
Children in conflict with the law ......................................................... 255
Minimum age of criminal responsibility .............................. ; ...... 257
Determination of age ........................................................................... 257
Children not criminally liable for certain offenses .............................. 258
Procedure for taking the child in conflict with the
law into custody ......................................................................... 259
Treatment of children below the age of criminal
responsibility ............................................................................. 261
Petition for involuntary commitment .................................................. 261
xvii
Detention pending trial .......................................................................... 26J
Automatic suspension of sentence ......................................................... 262
Execution of judgment ........................................................................... 263
CHAPTER 10
THE MAGNA CARTA OF WOMEN
Objective of the Law ............................................................................... 265
The rights of women ............................................................................... 267
Rights of “Women in Especially Difficult Circumstances”... 277
Sanctions ............................................................................................... 278
Aggravating Circumstance..................................................................... 279
CHAPTER 11
ANTI-VIOLENCE AGAINST WOMEN
AND THEIR CHILDREN ACT OF 2004
Violence against women and their children ........................................... 280

Physical violence .................................................................................... 281
Sexual violence ....................................................................................... 281
Psychological violence ............................................................................ 282
Economic abuse ...................................................................................... 282
Remedies of victims of violence against women and
their children .............................................................................. 283
The crime of violence against women and their children................ 283
Aggravating circumstances .................................................................... 286
Prohibited defense .................................................................................. 286
Battered woman syndrome is a defense for the woman.................. 286
Public crime............................................................................................ 286
Exemption from liability ........................................................................ 287
No compromise on crimes involving violence against
women and their children ......................................................... 287
Venue of criminal action ........................................................................ 287
Protection order...................................................................................... 287
Who can file petition for protection order .............................................. 288
How to obtain protection order .............................................................. 288
Barangay Protection Order (BPO) ......................................................... 289
Judicial Protection Order ....................................................................... 291
Enforceability of protection orders ......................................................... 296
Confidentiality of Proceedings ............................................................... 297
Custody of children ................................................................................ 297
Leave for victims of violence against women
and their children ....................................................................... 297
xviii
CHAPTER 12
ANTI-TRAFFICKING OF PERSONS ACT OF 2003
Meaning of Trafficking in Persons .............................................. 299
Acts of Trafficking in Persons ..................................................... 299
Acts that promote Trafficking in Persons ................................... 300
Qualified Trafficking in Persons ........................................................ 301
Use of Trafficked Persons .................................................................. 302
Venue of criminal action ........................... , ................................ 303
Who may file a complaint .................................................................. 303
Immunity from criminal prosecution ................................................. 303
Institution of Criminal and Civil Actions .......................................... 304
Prescriptive period ............................................................................. 304
Confidentiality of proceedings ........................................................... 304
CHAPTER 13
THE ANTI-SEXUAL HARASSMENT ACT OF 1995
Meaning of sexual harassment .......................................................... 306
Where can sexual harassment be committed .................................... 307
How is sexual harassment committed in a
work-related environment ....................................................... 307
How is sexual harassment committed in an education
or training environment .......................................................... 307
Who can be victims of sexual harassment ......................................... 308
Who may be liable for sexual harassment ......................................... 308
Obligations of employer or head of educational or
training institution.................................................................. 308
Composition of the Committee on Decorum
and Investigation .................................................................... 309
Liability of the employer, educational or training
institutions .............................................................................. 309
Penalties ........................................................................................... 310
Prescriptive period ............................................................................. 310
Illustrative Cases ............................................................................... 310
CHAPTER 14
THE SENIOR CITIZENS ACT
Senior Citizen .................................................................................... 314
Privileges of Senior Citizens .............................................................. 314
Senior Citizen Discount and VAT Exemption applies
also to credit card payments ................................................... 319
xix
Conditions for availment of the senior citizens’
privileges....................................................................
319
No double discounts.............................................................. 319
The senior citizen's discount can be claimed
as tax deduction ......................................................... 319
Additional privileges for indigent senior citizens................. 320
Discount for DSWD-Accredited senior citizens center. 321
Incentives for Foster Care .................................................... 322
Addition tax deduction for private entities that
322
employ senior citizens................................................
322
Criminal Offenses and Penalties..........................................
324
The Office for Senior Citizens Affairs ..................................
324
Qualifications of the OSCA Head .........................................
325
Functions of the OSCA .........................................................
CHAPTER 15
THE HOME DEVELOPMENT MUTUAL
FUND LAW OF 1980
The Forerunner of the Present Home Development

Mutual Fund ............................................................................. 327
Objective of the Law ........................................................................... 327
The Home Development Mutual Fund ............................................... 328
Corporate Entity................................................................................. 328
Coverage ............................................................................................ 329
Fund Contributions ............................................................................ 329
Meaning of monthly compensation..................................................... 330
Term of membership .......................................................................... 330
Suspension of contribution ................................................................. 330
Withdrawal of contributions............................................................... 330
Housing features ................................................................................ 331
Waiver and suspension of coverage from the Home
Development Mutual Fund....................................................... 331
Substitute retirement plan ................................................................. 334
Penal provisions ................................................................................. 334
CHAPTER 16
THE NATIONAL HEALTH INSURANCE ACT OF 1995
The rationale behind the enactment of the National

Health Insurance Act ........................................................... 335
The National Health Insurance Program ..................................... 335
Coverage of the National Health Insurance Program
xx
L
Enrollment of beneficiaries ............................................................ 33g
Enrollment Requirements .............................................................. 337
Declaration of dependents .............................................................. 338
Health insurance 111 card ............................................................. 339
Premium contributions ................................................................... 339
Premium contributions of individually-paying members ............... 340
Persons not obliged to pay premium contributions ........................ 340
Premium contributions for indigent members ............................... 341
Benefits under the National Health Insurance
Program ...................................................................................... 341
Health services not covered by the National Health
Insurance Program ..................................................................... 342
Conditions for entitlement to benefits ............................................ 342
Health care providers ............................................................................ 343
Health care providers should be accredited .......................................... 344
Payment of claims ................................................................................. 345
Grounds for denial or reductions of claims............................................ 346
Compensability of confinement for less than 24 hours .................. 346
The Philippine Health Insurance Corporation ...................................... 347
CHAPTER 17
THE SOCIAL SECURITY ACT OF 1997
Development of the Law ........................................................................ 348
Rationale behind the, enactment of the Social'
Security Law............. ................................................................ 348
Validity of the Social Security Law ....................................................... 349
Construction of the Social Security Law ............................................... 349
Social Security Law is not a law on succession ..................................... 349
Social Security Law is not part of the taxation system .................. 349
The funds of the Social Security System are
private funds .............................................................................. 349
Coverage of the SSS law ........................................................................ 350
Compulsory coverage ............................................................................. 350
Effective date of coverage ...................................................................... 351
Voluntary coverage ................................................................................ 351
When a person has secured an SSS number does it
mean that he is already an SSS member ............................ 351
Can a member withdraw his membership with the SSS ............... 351
Employees not covered by the SSS Law ................................................ 351
Obligations of the employer under the Social
Security Law............................................................................... 352
Effect of non-reporting or non-remittance ............................................. 352
XX!
Effect of failure to make timely remittance
of contribution...........................................................
353
Good faith is not a defense ..................................................... 353
Demand is not a condition precedent for remittance
of premium contributions .............................................. 353
Contributions of the self-employed......................................... 353
Policy on the primacy of regular employment over
354
self-employment.............................................................
354
Effect of interruption of business or professional income.... 354
Effect of separation from employment ................................... 354
The Social Security Benefits................................................... 355
Maternity Leave Benefit ........................................................ 356
Sickness Benefit ..................................................................... 357
Permanent Total Disability Benefits...................................... 359
Permanent Partial Disability Benefits ................................... 360
Retirement Benefits ............................................................... 362
Death Benefits ........................................................................ 362
Funeral Benefits ..................................................................... 362
The Primary Beneficiaries...................................................... 363
The Secondary Beneficiaries .................................................. 363
The dependents ...................................................................... 364
The dependents’ pension ........................................................ 364
The Social Security System (SSS) .......................................... 365
Social Security System may sue and be sued ......................... 366
The Social Security Commission (SSC) .................................. 368
Quasi-judicial functions of the SSC ........................................ 368
Appeal from decisions of the SSC ...........................................
CHAPTER 18
THE GOVERNMENT SERVICE INSURANCE
SYSTEM ACT OF 1997
Coverage of the Government Service Insurance 369

System (GSIS)................................................................ 369
Compulsory membership ........................................................
370
Employees not subject to compulsory coverage
370
of the GSIS.....................................................................
371
Classes of GSIS membership..................................................
Effective date of GSIS membership........................................
371
Separation from the sendee does not terminate
371
GSIS membership ..........................................................
372
The GSIS benefits...................................................................
Separation benefits.................................................................
xxii
Unemployment or involuntary separation benefits ................................... 372
Permanent Total Disability Benefits ............................................... ......... 373
Permanent Partial Disability Benefits............................... ....................... 375
Temporary Total Disability Benefits ................................................ *........— 376
Suspension of disability benefits ......................................................................... 377
Forfeiture of disability benefits ........................................................................... 377
Retirement Benefits.,... .................... ..... ............................................................. 378
Survivorship Benefits ......................................................... ....................... 379
Funeral Benefits................................................................................................. 381
Life Insurance Benefit ..................... ..... ............................................................ 381
Prescriptive period for filing of claims ....................................................... 381
INTRODUCTION
Agrarian Law
The term “agrarian” is derived from the Latin word “ager,” which means
a field. Lexically, the word agrarian means “relating to land or to the ownership
or division of land.”1
Agrarian law, therefore, basically refers to the distribution of public
agricultural lands, large estates, and regulation of the relationship between the
landowner and the farmer who works on the land. It embraces all laws that
govern and regulate the rights and relationship over agricultural lands between
landowners, tenants, lessees or agricultural workers.
Presently, the focus of agrarian laws is on agrarian reform, the thrust of
which is the redistribution of agricultural lands. Our basic law on Agrarian
Reform is the Comprehensive Agrarian Reform Law,2 .-upplemented by the
Tenant Emancipation Law3 and the Code of Agrarian Reforms.4
The primary objective of the agrarian reform program is to breakup
agricultural lands and transform them into economic-size farms to be owned by
the farmers themselves, with the end in view of uplifting their socio-economic
status.
The agrarian reform program is founded on the right of farmers and
regular farm workers who are landless, to own directly or collectively the lands
they till or, in the case of other farm workers, to receive a just share in the fruits
thereof.5
'Webster’s New World Dictionary, 2nd Concise Edition.

"R.A. No. 6657, as amended by R.A. Nos. 7881, 7905, 8532 and 9700.
3P.D. No. 27, as amended.
4R.A. No. 6389.
DAR Administrative Order No. 02, series of 2009.
1
2 AGRARIAN LAW AND SOCIAL LEGISLATION
Social Legislation
There is no precise definition for social legislation. Social
legislation is so broad that it covers labor laws, agrarian laws, and
welfare laws. The emphasis is more on the aspect of general public good
and social welfare. Essentially, these are laws or statutes
enacted pursuant to the social justice clause of the Constitution.
CHAPTER 1
THE COMPREHENSIVE AGRARIAN
REFORM LAW OF 1998
REPUBLIC ACT NO. 6657

[As amended by Republic Act Nos. 7881, 7905, 8532 and 9700]
AN ACT INSTITUTING A COMPREHENSIVE AGRARIAN
REFORM PROGRAM TO PROMOTE SOCIAL JUSTICE AND
INDUSTRIALIZATION, PROVIDING THE MECHANISM FOR
ITS IMPLEMENTATION, AND FOR OTHER PURPOSES
CHAPTER I
PRELIMINARY CHAPTER
SECTION 1. Title. — This Act shall be known as the Com-
prehensive Agrarian Reform Law of 1998.
NOTES:
Agrarian Law
Agrarian law embraces all laws that govern and regulate the
rights and relationship over agricultural lands between landowners,
tenants, lessees or agricultural workers.
History of Philippine Agrarian Laws
During the Spanish era, the relationship between landowners
and tenants was governed by the Civil Code, particularfy by the
Special Provisions for Rural Leases.
During the American regime, the Rice Share Tenancy Act1 was
promulgated. This law regulated the relationship between
‘Act 4054.
3
u
4 ACUAKIAN LAW AND SOCIAL LKGISLATJON Sec.)
landlords and tenants on rice lands. Thereafter, the Sugar Tenancy

Act’ was enacted to regulate the relationship between landlords and
tenants on lands plunted(to sugar cane.
During the commonwealth period, Commonwealth Act 53 was
passed. This law recognized the testimony of the tenant as prima facie
evidence of the terms of a tenancy contract that was not reduced in
writing in a language known to him. Subsequently, Commonwealth Act
178 was enacted to amend the provisions of the Rice Share Tenancy
Act. Thereafter, Commonwealth Act 271 was enacted to amend ActRo.
4113 by extending its application to sugar farm workers. Afterwards,
Commonwealth Act 461 was enacted to provide security of tenure to
agricultural tenants. This law was later amended by Commonwealth
Act 608.
After the grant of independence, Republic Act No. 34 was en:
acted to amend the Rice Share Tenancy Act by introducing changes in
crop division. Thereafter, the Agricultural Share Tenancy Act1 was
enacted. This law repealed all the earlier tenancy laws except the
Sugar Tenancy Act. Subsequently, Republic Act No. 2263 amended
Republic Act No. 34.
Thereafter, Republic Act. No. 1400 was passed, setting in motion
the expropriation of all tenanted estates. On August 13, 1963, the
Agricultural Land Reform Code* * was enacted. The Agricultural
Land Reform Code abolished share tenancy. In its place, it instituted
the agricultural leasehold system. The Agricultural Land Reform Code
was later amended by Republic Act No. 6389 and was denominated as
the Code of Agrarian Reforms.
Immediately after the declaration of martial law, President
Ferdinand E. Marcos promulgated the Tenant Emancipation Law6
which provided for the transfer of lands primarily devoted to rice and
corn to the tenants. Thereafter, the Court of Agrarian Relations was
reorganized with the enactment of Presidential Decree No. 946.
Subsequently, Presidential Decree No. 1038 was promulgated to
strengthen the security of tenure of tenants in nonrice or com
agricultural lands. The Code of Agrarian Reforms wus later amended
by Presidential Decree Nos. 251, 444,1039, and 1817.
’Act
4113.
•
’*P.D.
R
No. 27.
.
A
.
N
o
.
1
1
9
9
.
*
R
.
A
.
Sec. 1 CHAPTER 1 5
THE COMPREHENSIVE AGRARIAN REFORM LAW OF 1998
On July 17, 1987, President Corazon C. Aquino, exercising her powers

under the Transitory Provisions of the 1987 Constitution, issued Executive
Order No. 228 (declaring full land ownership in favor of beneficiaries under
Presidential Decree No. 27) and Executive Order No. 229 (providing the
mechanics for its implementation). Subsequently, Proclamation No. 131
instituting a comprehensive agrarian reform program was issued.
On June 10, 1988, the Comprehensive Agrarian Reform Law of

1988r was enacted. Thereafter, Republic Act Nos. 7881, 7905, 8532 and 9700
were enacted to amend certain provisions of the Comprehensive Agrarian
Reform Law. .
Meaning of Agrarian Reform

Agrarian Reform means the 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.7
Gleaned from the foregoing definition, it can be seen that agrarian

reform is not confined to distribution of lands to landless farmers and
regular farmworkers — it includes other alternative modes, such as: (a)
labor administration: (b) profit-sharing; and (c) stock distribution. (The
reason is becausejto confine agrarian reform to land distribution is simply
not feasible, considering there is not enough agricultural land that can be
distributed to every farmer or regular farmworker.
Applicability of the Comprehensive Agrarian Reform Law

The Comprehensive Agrarian Reform Law applies only to agricultural
lands. It does not apply to lands classified as residential, commercial,
industrial, mineral, or forest land.8
It
Meaning of Agricultural Land
Agricultural land refers to land devoted to agricultural activities. It

contemplates lands that are arable and suitable for fanning" f»i
NATALIA REALTY V. DAR

225 SCRA279
[1992]
FACTS: Natalia Realty, Inc. (NATALIA) is the owner of a
125-hectare land in Antipolo, Rizal. On April 18, 1979,
Presidential Proclamation No. 1637 set aside 20,312 hectares of
land located in Antipolo, San Mateo and Montalban as townsite
areas to absorb the population overspill in the metropolis. The
NATALIA properties were situated within the areas proclaimed
as townsite reservation.
Private landowners were allowed to develop their proper-
ties into low-cost housing subdivisions within the reservation.
The Human Settlements Regulatory Commission (now Housing
and Land Use Regulatory Board) granted NATALIA the neces-
sary permit to develop the land into a subdivision.
When the Comprehensive Agrarian Reform Law took effect
on June 15, 1988, the Department of Agrarian Reform issued a
Notice of Coverage on the undeveloped portions of the
subdivision. NATALIA sought the cancellation of the Notice of
Coverage on the ground that the land in question ceased to be
agricultural lands when Presidential Proclamation No. 1637
transformed it into a townsite reservation.
ISSUE: Whether or not the undeveloped portions of the
NATALIA properties are covered by the Comprehensive Agrarian
Reform Law.
HELD: The undeveloped portions of the NATALIA
properties are not covered by the Comprehensive Agrarian
Reform Law because they are not agricultural lands. Agricultural
lands do not include commercial, industrial or residential lands.
The NATALIA properties ceased to be agricultural lands upon
approval of their inclusion in the townsite reservation.
/'
“Sec. 3 (c), Comprehensive Agrarian Reform Law as amended; Luz Farms v. Secretary
of Agrarian Reform, 192 SCRA 51; De Guzman v. Court of Appeals. 504 SCRA 238.
(
Sec. 2 CHAPTER 1 7
Constitutionality of the Comprehensive Agrarian Reform Law

The Comprehensive Agrarian Reform law is not unconstitutional
because it is a valid exercise of police power.10
SECTION 2. Declaration of Principles and Policies — It is the

policy of the State to pursue a Comprehensive Agrarian Reform
Program (CARP). The welfare of the landless farmers and
farmworkers will receive the highest consideration to promote
social justice and to move the nation toward sound rural
development and industrialization, and the establishment of
owner cultivatorship of economic-size farms as basis of
Philippine agriculture.
The State shall promote industrialization and full
employment based on sound agricultural development and
agrarian reform, through industries that make full and efficient
use of human and natural resources, and which are competitive
in both domestic and foreign markets: Provided, That the
conversion of agricultural lands into industrial, commercial or
residential lands shall take into account, tillers’ rights and
national food security. Further, the State shall protect Filipino
enterprises against unfair foreign competition and trade
practices.'
The State recognizes that there is not enough agricultural
land to be divided and distributed to each farmer and regular
farmworker so that each one can own his/her economic-size farm.
This being the case, a meaningful agrarian reform program to
uplift the lives and economic status of the farmer and his/her
children can only be achieved through simultaneous
industrialization aimed at developing a self- reliant and
independent national economy effectively controlled by
Filipinos.
To this end, the State may, in the interest of national
welfare or defense, establish and operate vital industries.
A more equitable distribution and ownership of land, with
due regard to the rights of landowners to just compensation,
retention rights under Section 6 of Republic Act 6657,
‘“Association of Small Landowners v. Secretary of Agrarian Reform, 175 SCRA

343.
y
8 AGRARIAN LAW AND SOCIAL LEGISLATION Sec. 2
as amended, and to the ecological needs of the nation, shall be

undertaken to provide farmers and farmworkers with the
opportunity to enhance their dignity and improve the quality of
their lives through greater productivity of agricultural lands.
The agrarian reform program is 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 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 the priorities and retention limits set forth in this
Act, taking into account ecological, developmental, and equity
considerations, and subject to the payment of just compensation.
The State shall respect the rights of small landowners, and shall
provide incentive for voluntary land-sharing.
As much as practicable, the implementation of the program
shall be community-based to assure, among others, that the farmers
shall have greater control of farmgate prices, and easier access to
credit.
The State shall recognize the right of farmers, farmworkers
and landowners, as well as cooperatives and other independent
farmers’ organizations, to participate in the planning,
organization, and management of the program, and shall provide
support to agriculture through appropriate technology and
research, and adequate financial, production, marketing and other
support services.
The State shall recognize and enforce, consistent with
existing laws, the rights of rural women to own and control land,
taking into consideration the substantive equality between men
and women as qualified beneficiaries, to receive a just share of the
fruits thereof, and to be represented in advisory or appropriate
decision-making bodies. These rights shall be independent of their
male relatives and of their civil status.
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 the public domain, under lease or concession, suitable to
agriculture, subject to prior
See. 2 CHAPTER 1 9
THE COMPREHENSIVE ACiHAINAN REFORM l.AW OF 1998
rights, homestead rights of small settlers and the rights of

indigenous communities to their ancestral lands.
The State may resettle landless farmers and farmworkers in
its own agricultural estates, which shall be distributed to them in
the manner provided by law.
By means of appropriate incentives, the State shall
encourage the formation and maintenance of economic-size family
farms to be constituted by individual beneficiaries and small
landowners.
The State shall protect the rights of subsistence fishermen,
especially of local communities, to the preferential use of
communal marine and fishing resources, both inland and offshore.
It shall provide support to such fishermen through appropriate
technology and research, adequate financial, production and
marketing assistance and other services. The State shall also
protect, develop and conserve such resources. The protection shall
extend to offshore fishing grounds of subsistence fishermen
against foreign intrusion. Fishworkers shall receive a just share
from their labor in the utilization of marine and fishing resources.
The State shall be guided by the principles that land has a
social function and land ownership has a social responsibility.
Owners of agricultural land have the obligation to cultivate
directly or through labor administration the lands they own and
thereby make the land productive.
The State shall provide incentives to landowners to invest
the proceeds of the agrarian reform program to promote
industrialization, employment and privatization of public sector
enterprises. Financial instruments used as payment for lands shall
contain features that shall enhance negotiability and acceptability
in the marketplace.
The State may lease undeveloped lands of the public domain
to qualified entities for the development of capital- intensive farms,
and traditional and pioneering crops especially those for exports
subject to the prior rights of the beneficiaries under this Act.11
As amended by R.A. No. 9700.

n
Sec. 3
NOTES:
The Primary Objective of Agrarian Reform

The primary objective of agrarian reform is to breakup agricultural lands
and transform them into economic-size farms to be owned by the farmers
themselves, with the end in view of uplifting their socio-economic status.
The agrarian reform program is founded on the right of farmers and

regular farm workers who are landless, to own directly or collectively the lands
they till or, in the case of other farm workers, to receive a just share in the
fruits thereof.12 But it does not guarantee improvement in the lives of the
agrarian reform beneficiaries — at best, it merely provides for a possibility or
a favorable chance of uplifting the economic status of the agrarian reform
beneficiaries, which may or may not be attained.13
Meaning of Economic Family-Size Farm

Economic family-size farm means an area of farm land 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.14
SECTION 3. Definitions. — For the purpose of this Act, unless the

context indicates otherwise:
(a) Agrarian Reform means the 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
12DAR Administrative Order No. 02, series of

2009.
‘“Hacienda Luisita Inc. v. PARC, 653 SCRA
“Sec. 166 (20), Code of Agrarian Reforms, as
154.
amended.
Sec. 3 CHAPTER 1 n
stocks, which will allow beneficiaries to receive a just share of

the fruits of the lands they work.
(b) 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.
(c) Agricultural Land refers to land devoted to agri-
cultural activity as defined in this Act and not classified as
mineral, forest, residential, commercial or industrial land.
(d) Agrarian Dispute refers to any controversy relating
to tenurial arrangements, whether leasehold, tenancy,
stewardship or otherwise, over lands devoted to agriculture,
including disputes concerning farmworkers’ associations or
representation of persons in negotiating, fixing, maintaining,
changing, or seeking to arrange terms or conditions of such
tenurial arrangements.
It includes any controversy relating to compensation of
lands acquired under this Act and other terms and conditions
of transfer of ownership from landowners to farmworkers,
tenants and other agrarian reform beneficiaries, whether the
disputants stand in the proximate relation of farm operator
and beneficiary, landowner and tenant, or lessor and lessee.
(e) Idle or Abandoned Land refers to any agricultural
land not cultivated, tilled or developed to produce any crop nor
devoted to any specific economic purpose continuously for a
period of three (3) years immediately prior to the receipt of
notice of acquisition by the government as provided under this
Act, but does not include land that has become permanently or
regularly devoted to non-agricultural purposes. It does not
include land which has become unproductive by reason of force
majeure or any other fortuitous event, Provided that prior to
such event, such land was previously used for agricultural or
other economic purpose.
(f) Farmer refers to a natural person whose primary
livelihood is cultivation of land or the production of
agricultural crops, livestock and/or fisheries either by
himself/herself, or primarily with the assistance of his/her
Id ACKAKIAN l AW AND SOCIAL I.KOISI.ATION s<‘c :i
immediate farm household, whether the land is owned by him'her,

or by another person under a leasehold or share tenancy
agreement or arrangement with the owner thereof.11
(g) Farmworker is a natural person who renders services
for value as an employee or laborer in an agricultural enterprise or
farm regardless of whether his compensation is paid on a daily,
weekly, monthly or “pakyaw” basis. The term includes an
individual whose work has ceased as a consequence of, or in
connection with, a pending agrarian dispute and who has not
obtained a substantially equivalent and regular farm employment.
(h) Regular Farmworker is a natural person who is
employed on a permanent basis by an agricultural enterprise or
farm.
(i) Seasonal Farmworker is a natural person who is
employed on a recurrent, periodic or intermittent basis by an
agricultural enterprise or farm, whether as a permanent or a non-
permanent laborer, such as “dumaan,” “sacada,” and the like.
(j) Other Farmworker is a farmworker who does not fall
under paragraphs (g), (h) and (i).
(k) Cooperatives shall refer to organizations composed
primarily of small agricultural producers, farmers, farmworkers,
or other agrarian reform beneficiaries who voluntarily organize
themselves for the purpose of pooling land, human, technological,
financial or other economic resources, and operated on the
principle of one member, one vote. A juridical person may be a
member of a cooperative, with the same rights and duties as a
natural person.
(l) Rural women refer to women who are engaged directly
or indirectly in farming and/or fishing as their source of livelihood,
whether paid or unpaid, regular or seasonal, or in food
preparation, managing the household, caring for the children, and
other similar activities.16
'"As amended by R.A. No. 9700. 111
Aa amended by R.A. No. 9700.

Sec. 4 CHAPTER 1 13
THE COMPREHENSIVE AGRARIAN REFORM LAW OF 19!>8
NOTES:
Raising of Livestock, Poultry or Fish Not Embraced in the Term
“Agriculture”
Lands devoted to raising of livestock, poultry, and swine are
classified as industrial, not agricultural, hence, exempt from the agrarian
reform program."
In the case of Luz Farms v. Secretary of Agrarian Reform, 192 SCRA
51, the Supreme Court declared unconstitutional the inclusion of lands
devoted to raising of livestock, poultry, and swine within the term
“agriculture.” The reason is because in livestock, poultry, or swine
farming, no land is tilled and no crop is harvested. Land is not the primary
resource in raising of livestock, poultry or even swine. Livestock, poultry,
or swine do not sprout from the land, hence, they are not “fruits of the
land.”18
CHAPTER II
COVERAGE
SECTION 4. Scope. — 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:
(a) All alienable and disposable lands of the public
domain devoted to or suitable for agriculture. No re-
classification 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;
1;RepubIic v. Salvador N. Lopez Agri-Business Corp., 639 SCRA 49.

18DAR v. Sutton, 473 SCRA 392.
(b) All lands of the public domain in excess of the

specific limits as determined by Congress in the preceding
paragraph;
(c) All other lands owned by the Government devoted
to or suitable for agriculture; and
(d) 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.1*
NOTES:
Lands Covered by the Agrarian Reform Law
As a general rule, the Comprehensive Agrarian Reform Law covers
the following lands:
(a) all public and private agricultural lands; and
(b) other lands of the public domain suitable for agri-
culture.20
Lands Not Covered by the Agrarian Reform Law
The following lands are not covered by the Comprehensive Agrarian
Reform Law:
(a) Private lands with a total area of five (5) hectares and
below;21
(b) Lands actually, directly, and exclusively used for parks,
wildlife, forest reserves, reforestation, fish sanctuaries and
breeding grounds, watersheds and mangroves;
10As amended by R.A. No. 9700.

20Sec. 4, Comprehensive Agrarian Reform Law, as amended.
2,Sec. 4, Ibid.
Secs, 5-6 CHAPTER 1 15
(c) Private lands actually, directly and exclusively used

for prawn farms and fishponds;
(d) Lands actually, directly, and exclusively used and
found to be necessary for:
(i) national defense;
(ii) school sites and campuses;
(iii) experimental farm stations operated for educa-
tional purposes;
(iv) seeds and seedling research and pilot production
center,
(v) church sites and convents appurtenant thereto;
(vi) mosque sites and Islamic centers appurtenant
thereto;
(vii) communal burial grounds and cemeteries;
(viii) penal colonies and penal farms actually worked
by the inmates;
(ix) research and quarantine centers; and
(x) all lands with eighteen percent (18%) slope and
over, except those already developed.22
SECTION 5. Schedule of Implementation. — The

distribution of all lands covered by this Act shall be
implemented immediately and completed within ten (10) years
from the effectivity thereof.
NOTES:
Implementation Extended by Republic Act No. 9700
Section 7 of Republic Act No. 9700 extended the implementation
of the Comprehensive Agrarian Reform Law, particularly, the
acquisition and distribution of agricultural lands, to June 30, 2014.
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
wScc. 10, Comprehensive Agrarian Reform Law, as amended by R.A. No. 7881.
16 AGRARIAN LAW AND SOCIAL LEGISLATION Sec e
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: (1) that he is at least fifteen (15) years of age; and
(2) that he is actually tilling the land or directly managing the
farm: 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: 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:
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 this 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
Sec. 6 CHAPTER 1 yj
(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.
NOTES:
Retention right of the landowner
Under Section 6 of the Comprehensive Agrarian Reform Law, the
landowner has the right to retain not more than five (5) hectares of his
landholdings. The retained area need not be personally cultivated by the
landowner — cultivation can be done indirectly through labor
administration.23
Can a landowner who has already exercised his retention rights

under Presidential Decree No. 27 be entitled to the retention right
under the Comprehensive Agrarian Reform Law?
If the landowner has already exercised his right of retention under
Presidential Decree 27, he can no longer exercise the retention right under
Comprehensive Agrarian Reform Law.24 * 26
However, if the landowner chooses to retain five (5) hectares under
Comprehensive Agrarian Reform.Law, the seven (7) hectares previously
retained by him under Presidential Decree 27 shall be immediately placed
under the coverage of the comprehensive agrarian reform law.2$
Can spouses retain 5 hectares each under the agrarian reform law?
It depends:
(a) if the property regime is conjugal or absolute community
— the spouses can retain only five (5) hectares.
(b) if the property regime is separation of property — the
spouses can retain five (5) hectares each (a total of 10 hectares).20
23Sec. 2 (b), DAR Administrative Order No. 05-00.

^Sec. 6, Comprehensive Agrarian Reform Law, as
amended.
26Sec. 3, DAR Administrative Order No. 05-00.
28Sec. 9 (g) and (h), DAR Administrative Order No. 05-00.
Who has the right to choose the retention area?

The landowner has the right to choose the area to be retained. The
chosen area should be compact or contiguous.27 As long as the area to be
retained is compact or contiguous, and it does not exceed the retention ceiling
of five (5) hectares, the landowner’s choice of the area to be retained must
prevail.28
The landowner should exercise his right of retention within sixty (60)
days from receipt of the Notice of Coverage.29 30 If the landowner does not
exercise his right of retention within the specified period, the Municipal
Agrarian Reform Officer (MARO) will designate the retained area for the
landowner. If the landowner disagrees with the area selected for retention, he
may file a protest with the MARO.38
Can a landowner exercise his right to retention over the land which has
already been covered by an Emancipation Patent or Certificate of Land
Ownership Award?
The issuance of Emancipation Patent (EP) or Certificate of Land
Ownership Awards (CLOA) to beneficiaries does not absolutely bar the
landowner from retaining the area covered thereby. If the landowner has been
deprived of his right to retention, he may file a petition for cancellation of the
EP or CLOA that may have been issued to the tenants.31 Under Administrative
Order No. 2, series of 1994, an EP or CLOA may be cancelled if the land
covered is later found to be part of the landowner’s retained area.32
Suppose the retention area chosen by the landowner is tenanted, what

happens to the tenant?
If the area selected for retention by the landowner is tenanted, the
tenant may choose on whether to remain therein or be a ' beneficiary in the
same or another agricultural land with similar or comparable features. 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.33
27Sec, 6, Comprehensive Agrarian Reform Law, as amended.

28Daez v. Court of Appeals, 325 SCRA 856.
29Sec, 4, DAR Administrative Order No. 05-00.
30Sec. 5, ibid.
3ITenants of the Estate of Dr. Jose Sison v. Court of Appeals, 201 SCRA
545.
32Daez v. Court of Appeals, 325 SCRA 856.
33Sec. 6, Comprehensive Agrarian Reform Law, as amended.
Sec. 6 CHAPTER 1 19
It should be noted that the law speaks of tenant, and not just of any
settler on the land. In short, the relationship of landlord- tenant must exist.
Mere occupation or cultivation of an agricultural land will not ipso facto make
the tiller an agricultural tenant. The person claiming to be an agricultural
tenant must prove by substantial evidence the existence of landlord-tenant
relationship.34 This relationship can be determined by the following elements:
(a) The landowner has engaged a person to personally cultivate
an agricultural land; and
(b) The landowner is compensated in terms of share in the
produce (share tenancy) or in terms of a price certain or ascertainable in
produce or in money or both (leasehold tenancy).
Effect if the tenant chooses to remain in the retained area

If the tenant chooses to remain in the retained area, he will no longer be
considered as a tenant but as an agricultural lessee and, he will no longer
qualify as an agrarian reform beneficiary.35
As an agricultural lessee, he will be entitled to:
(a) Peaceful possession and enjoyment of the land;
(b) Manage and work on the land in a manner and method of
cultivation and harvest which conform to proven farm practices;
(c) Mechanize all or any phase of his farm work;
(d) Deal with millers and processors and attend to the issuance
of quedans and warehouse receipts for the produce due him;36
(e) Be afforded a homelot;37
(f) Be indemnified for the cost and expenses incurred in the
cultivation, planting or harvesting and other expenses incidental to the
improvement of his crop in case he surrenders or abandons his
landholding for just cause or ejected therefrom;38
34Rodriguez v. Salvador, 651 SCRA 429.

36Sec. 6, Comprehensive Agrarian Reform Law as amended.
36Sec. 23, Code of Agrarian Reforms, as amended.
37Sec. 24, ibid.
20 AGRARIAN LAW AND SOCIAL LEGIST ATION Sec. {.
(g) Buy the agricultural landholding under reasonable

terms and conditions in case the agricultural lessor decides to sell
the same;”
(h) Redeem the landholding at a reasonable price and
consideration in case the agricultural lessor sold the same to a third
person without his knowledge.39 40
Correlative to the foregoing rights are the following obligations:
(a) To cultivate and take care of the farm, growing crops,
and other improvements on the landholding as a good father of a
family and perform all the work therein in accordance with proven
farm practices;
(b) Inform the agricultural lessor within a reasonable time
of any trespass committed by third persons upon the farm, without
prejudice to his direct action against the trespasser;
(c) Take reasonable care of the work animals and farm
implements delivered to him by the agricultural lessor and see that
they are not used for purposes other than those intended or used by
another without the knowledge and consent of the agricultural
lessor;
(d) Keep his farm and growing crops attended to during the
work season;
(e) Notify the agricultural lessor at least three (3) days
before the date of harvesting or, whenever applicable, of
threshing; and
(f) Pay the lease rental to the agricultural lessor when it
falls due.41
What is the term of the lease?

The agricultural leasehold relation once established continues
until such leasehold relation is extinguished through any of the
following means:
(a) Abandonment or voluntary surrender of the land-
holding by the lessee; or
39Sec.
11, ibid.
40Sec.
12, ibid.
4,Sec.
26, Code of Agrarian Reforms,
as amended.
Sec. 6 CHAPTER 1 21
(b) Absence of successor (i.e., surviving spouse, eldest direct

descendant by consanguinity, or next eldest descendant or
descendants in the order of their age) in the event of death or
permanent incapacity of the lessee.*2
The leasehold relation is not necessarily extinguished by death or
incapacity of the lessee. If the lessee dies or is permanently disabled, the
leasehold continues between the agricultural lessor and the person who
can cultivate the landholding personally, which the lessor can choose from
among the following:
(a) the surviving spouse;
(b) the eldest direct descendant by consanguinity; or
(c) the next eldest descendant or descendants in the order
of their age.'3
Likewise, the agricultural leasehold is not terminated or
extinguished by the mere expiration of the term or period in a leasehold
contract. Neither is it terminated by the transfer of ownership or legal
possession of the landholding. If the agricultural lessor transfers the
ownership or legal possession of the landholding, the transferee becomes
the agricultural lessor.*4
Effect if the Tenant Chooses to be a Beneficiary

If the tenant chooses to be a beneficiary in the same or another
agricultural land, he loses his right to be a lessee of the land retained by
the landowner.42 43 44 45
Children of the Landowner are Entitled to 3 hectares each

If the landowner owns more than five (5) hectares of agricultural
land, the excess area may be awarded to the children of the landowner to
the extent of three (3) hectares for each child under the following
conditions:
(a) the child is at least fifteen (15) years old; and
(b) the child is actually tilling the land or directly managing
the farm.
42Secs. 7,
and
43 8,9,
Sec.
ibid.
ibid.
44Sec. 10,
ibid.
4G Sec. 6,
ibid.
E
The child need not directly or personally till the land — it js

enough that he directly manages the farm.
A qualified child who owns less than five (5) hectares of agri-
cultural land is still entitled to an award of his parent’s landholding
provided that his total area, including the area to be awarded does not
exceed the 5-hectare ownership ceiling." For example, if the child already
owns three (3) hectares of agricultural land, he can still be awarded two
(2) hectares from his parent’s landholding.
Lands awarded to qualified children of landowners cannot be sold,
transferred or conveyed within a period of ten (10) years, except:
(a) through hereditary succession;
(b) to the government;
(c) to the Land Bank of the Philippines; or
(d) to other qualified beneficiaries.
The children or the spouse of the transferor can repurchase the
land from the government or the Land Bank of the Philippines within a
period of two (2) years from the date of transfer."
Right of Homesteaders vis-a-vis Right of Tenants

Section 6 of Article XIII of the Constitution provides that:
“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 x x x
homestead rights of small settlers, and the rights of indigenous
cultural communities to their ancestral lands.”'8
Section 6 of the Comprehensive Agrarian Reform Law also

provides that:
“x x x 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.”*'
"
S
e
c
.
2
.
D
A
I
t
A
d
m
i
n
i
s
Sec. 6-A CHAPTER 1 23
It can be seen that both the Constitution and the Comprehensive

Agrarian Reform Law respect the superiority of the rights of
homesteaders over the rights of tenants. While the agrarian reform law is
a remedial measure promulgated pursuant to the social justice precepts of
the Constitution, it cannot be invoked to defeat the very purpose of the
enactment of the Commonwealth Act 141. 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.50
Therefore, the owners (or their direct compulsory heirs) of lands
acquired through homestead grants or Free Patents under
Commonwealth Act 141 are entitled to retain the entire area (even if it
exceeds 5 hectares), provided that:
(a) they were cultivating the same at the time of the
approval of the Comprehensive Agrarian Reform Law {i.e., June
15, 1988); and
(b) they continue to cultivate the same.
SECTION 6-A. Exception to Retention Limits. — Provincial, city

and municipal government units acquiring private agricultural
lands by expropriation or other modes of acquisition to be used
for actual, direct and exclusive public purposes, such as roads and
bridges, public markets, school sites, resettlement sites, local
government facilities, public parks and barangay plazas or
squares, consistent with the approved local comprehensive land
use plan, shall not be subject to the five (5)-hectare retention limit
under this Section and Sections 70 and 73 (a) of Republic Act No.
6657, as amended: Provided, That lands subject to CARP shall first
undergo the land acquisition and distribution process of the
program: Provided, further, That when these lands have been
subjected to expropriation, the agrarian reform beneficiaries
therein shall be paid just compensation.51 * 61
“AJita v. Court of Appeals, 170 SCRA

706.
61 Added by R.A. No. 9700.
24 AGRARIAN LAW AND SOCIAL LEGISLATION Secs. 6-B-7
NOTES:
Expropriation of Private Agricultural Lands By Local Government

Units
If a Local Government Unit (LGU) expropriates a private
agricultural land for actual, direct, and exclusive public purposes, the
Department of Agrarian Reform should first subject it to agrarian reform
coverage. This means that the land should first be acquired by the national
government through the Department of Agrarian Reform who will pay just
compensation to the landowner. Thereafter, the Department of Agrarian
Reform will distribute the land to the agrarian reform beneficiaries. After
distribution, the LGU will expropriate the land and pay the agrarian
reform beneficiaries the just compensation.
SECTION 6-B. Review of Limits of Land Size. — Within six

(6) months from the effectivity of this Act, the DAR shall submit
a comprehensive study on the land size appropriate for each type
of crop to Congress for a possible review of limits of land sizes
provided in this Act.52
NOTES:
The Import of the Law
Section 6-B of the Comprehensive Agrarian Reform Law is an
implied recognition that the uniform setting of a 5-hectare limit for all
agricultural landholding may not be feasible, considering the economic
differences for each type of agricultural product. Surely, lands planted to
rice, corn, coconut, mango, sugar, pineapple, cacao, etc., cannot be treated
identically.
SECTION 7. Priorities. — The DAR, in coordination with the

Presidential Agrarian Reform Council (PARC) shall plan and
program the final acquisition and distribution of all remaining
unacquired and undistributed agricultural lands from the
effectivity of this Act until June 30, 2014. Lands shall be acquired
and distributed as follows:
Phase One: During the five (5)-year extension period hereafter all
remaining lands above fifty (50) hectares
52Added by R.A. No. 9700.

Sec. 7 CHAPTER 1 25
shall be covered for purposes of agrarian reform upon the

effectivity of this Act. All private agricultural lands of
landowners with aggregate landholdings in excess of fifty
(50) hectares which have already been subjected to a notice
of coverage issued on or before December 10, 2008; 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: Provided, That with respect
to voluntary land transfer, only those submitted by June 30,
2009 shall be allowed: Provided, further, That after June 30,
2009, the modes of acquisition shall be limited to voluntary
offer to sell and compulsory acquisition: Provided,
furthermore, That all previously acquired lands wherein
valuation is subject to challenge by landowners shall be
completed and finally resolved pursuant to Section 17 of
Republic Act No. 6657, as amended: Provided, finally, as
mandated by the Constitution, Republic Act No. 6657, as
amended, and Republic Act No. 3844, as amended, only
farmers (tenants or lessees) and regular farmworkers
actually tilling the lands, as certified under oath by the
Barangay Agrarian Reform Council (BARC) and attested
under oath by the landowners, are the qualified
beneficiaries. The intended beneficiary shall state under
oath before the judge of the city or municipal court that
he/she is willing to work on the land to make it productive
and to assume the obligation of paying the amortization for
the compensation of the land and the land taxes thereon; all
lands foreclosed by 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 by June 30, 2012;
Phase Two: (a) Lands twenty-four (24) hectares up to
fifty (50) hectares shall likewise be covered for purposes of
agrarian reform upon the effectivity of this Act. All alienable
and disposable public agricultural lands; all arable public
agricultural lands under agroforest, pasture and
agricultural leases already cultivated
r
/
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 of landowners with
aggregate landholdings: above twenty- four (24) hectares up
to fifty (50) hectares which have already been subjected to
a notice of coverage issued on or before December 10, 2008,
to implement principally the rights of farmers and regular
farmworkers, who are landless, to own directly or
collectively the lands they till, which shall be distributed
immediately upon the effectivity of this Act, with the
implementation to be completed by June 30, 2012; and
(b) All remaining private agricultural lands of
landowners with aggregate landholdings in excess of
twenty-four (24) hectares, regardless as to whether these
have been subjected to notices of coverage or not, with the
implementation to begin on July 1,2012 and to be completed
by June 30, 2013;
Phase Three: All other private agricultural lands
commencing with large landholdings and proceeding to
medium and small landholdings under the following
schedule:
(a) Lands of landowners with aggregate land-
holdings above ten (10) hectares up to twenty-four (24)
hectares, insofar as the excess hectarage above ten (10)
hectares is concerned, to begin on July 1, 2012 and to
be completed by June 30, 2013; and
(b) Lands of landowners with aggregate land-
holdings from the retention limit up to ten (10) hect-
ares, to begin on July 1, 2013 and to be completed by
June 30,2014; 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 PARC,
taking into consideration the following:
Sec. 7 CHAPTER 1 27
the landholdings wherein the fanners are organized and

understand the meaning and obligations of farmland ownership;
the distribution of lands to the tillers at the earliest practicable
time; the enhancement of agricultural productivity; and the
availability of funds and resources to implementand support the
program: Provided, That thePARC shall design and conduct
seminars, symposia, information campaigns, and other similar
programs for farmers who are not organized or not covered by
any landholdings. Completion by these farmers of the
aforementioned seminars, symposia, and other similar programs
shall be encouraged in the implementation of this Act
particularly the provisions of this Section.
Land acquisition and distribution shall be completed by
June 30, 2014 on a province-by-province basis. In any case, the
PARC or the PARC Executive Committee (PARC EXCOM), upon
recommendation by the Provincial Agrarian Reform
Coordinating Committee (PARCCOM), may declare certain
provinces as priority land reform areas, in which case the
acquisition and distribution of private agricultural lands therein
under advanced phases may be implemented ahead of the above
schedules on the condition that prior phases in these provinces
have been completed: Provided, That notwithstanding the above
schedules, phase three (b) shall not be implemented in a
particular province until at least ninety percent (90%) of the
provincial balance of that particular province as of January 1,
2009 under Phase One, Phase Two (a), Phase Two (b), and Phase
Three (a), excluding lands under the jurisdiction of the
Department of Environment and Natural Resources (DENR),
have been successfully completed.
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/ she does not
own but is actually cultivating to the extent of the difference
between the area of the land he/she owns and the award ceiling
of three (3) hectares: Provided, further, That collective ownership
by the farmer beneficiaries shall be subject to Section 25 of
Republic Act No. 6657, as amended: Provided, furthermore, That
rural women shall
fa
be given the opportunity to participate in the development

planning and implementation of this Act: Provided, finally, That in
no case should the agrarian reform beneficiaries’ sex, economic,
religious, social, cultural and political attributes adversely affect
the distribution of lands.53
NOTES:
Acquisition and Distribution Scheme

This provision lays down the scheme for the final acquisition and
distribution of all remaining agricultural lands during the 5-year extension
period up to June 30 2014, in following order of priority:
(a) Lands with an area of more than fifty (50) hectares, to be
completed by June 30, 2012, specifically:
(i) those which have already been subjected to a
Notice of Coverage on or before December 10, 2008;
(ii) rice and corn lands;
(iii) idle or abandoned lands;

NOTE: Idle or abandoned land refers to any agricultural land not
cultivated, tilled or developed to produce any crop nor devoted to any specific
economic purpose continuously for a period of three (3) years immediately
prior to the receipt of notice of acquisition by the government as provided
under this Act, but does not include land that has become permanently or
regularly devoted to non-agricultural purposes. It does not include land which
has become unproductive by reason of force majeure or any other fortuitous
event, provided that prior to such event, such land was previously used for
agricultural or other economic purpose.64
(iv) private lands voluntarily offered by the owners for

agrarian reform;
(v) lands foreclosed by government financial insti-
tutions;
“As amended by R.A. No.

9700.
MSec. 3 (e), R.A. No. 6657, as
amended.
Sec. 7 CHAPTER 1 29
(vi) lands acquired by the Presidential Commission on

Good Government (PCGG); and
(vii) all other lands owned by the government devoted
to or suitable for agriculture.
(b) Lands with an area of twenty-four (24) hectares up to
filly (50) hectares, to be completed by June 30, 2013, specifically:
(i) all alienable and disposable public agricultural
lands;
(ii) 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;
(iii) all public agricultural lands which are to be opened
for new development and resettlement;
(iv) all private agricultural lands which have already
<3
0 been subjected to a Notice of Coverage issued on or before
December 10, 2008; and
(v) all remaining private agricultural lands regardless
as to whether they have been subjected to notices of coverage.
(c) Lands with an area of more than ten (10) hectares up to
J twent3'-four (24) hectares, to be completed by June 30, 2013; and
(d) Lands from the retention limit up to ten (10) hectares, to
be completed by June 30, 2014.
Only farmers (tenants or lessees) and regular farmworkers
actually tilling the lands, as certified under oath by the Barangay
Agrarian Reform Council (BARC) and attested under oath by the
landowners, can be considered as qualified beneficiaries.
The intended beneficiary shall state under oath before the
judge of the city or municipal court that he/she is willing to work on
the land to make it productive and to assume the obligation of paying
the amortization for the compensation of the land and the land taxes
thereon.
u
SECTION 8. Multinational Corporations. — All lands of the

public domain leased, held or possessed by multinational
corporations or associations, and other lands owned by the
government or by government-owned or controlled corporations,
associations, institutions, or entities, devoted to existing and
operational agri-business or agro-industrial enterprises, operated by
multinational corporations and associations, shall be programmed
for acquisition and distribution immediately upon the effectivity of
this Act, with the implementation to be completed within three (3)
years.
Lands covered by the paragraph immediately preceding,
under lease, management, grower or service contracts, and the like,
shall be disposed of as follows:
(a) Lease, management, grower or service contracts
covering such lands covering an aggregate area in excess of
1,000 hectares, leased or held by foreign individuals in excess
of 500 hectares are deemed amended to conform with the
limits set forth in Section 3 of Article XII of the Constitution.
(b) Contracts covering areas not in excess of 1,000
hectares in the case of such corporations and associations, and
500 hectares, in the case of such individuals, shall be allowed
to continue under their original terms and conditions but not
beyond August 29, 1992, or their valid termination, whichever
comes sooner, after which, such agreements shall continue
only when confirmed by the appropriate government agency.
Such contracts shall likewise continue even after the land has
been transferred to beneficiaries or awardees thereof, which
transfer shall be immediately commenced and implemented,
and completed within the period of three (3) years mentioned
in the first paragraph hereof.
(c) In no case will such leases and other agreements
now being implemented extend beyond August 29, 1992, when
all lands subject hereof shall have been distributed
completely to qualified beneficiaries or awardees.
Such agreements can continue thereafter only under a new
contract between the government or qualified benefi-
£
Lz
Sec. 8 CHAPTER 1 31
ciaries or awardees, on the one hand, and said enterprises, on the

other.
Lands leased, held or possessed by multinational cor-
porations, owned by private individuals and private non-
governmental corporations, associations, institutions and entities,
citizens of the Philippines, shall be subject to immediate
compulsory acquisition and distribution upon the expiration of the
applicable lease, management, grower or service contract in effect
as of August 29,1987, or otherwise, upon its valid termination,
whichever comes sooner, but not later than after ten (10) years
following the effectivity of this Act. However during the said period
of effectivity, the government shall take steps to acquire these
lands for immediate distribution thereafter.
In general, lands shall be distributed directly to the in-
dividual worker-beneficiaries. In case it is not economically
feasible and sound to divide the land, then they shall form a
workers’ cooperative or association which will deal with the
corporation or business association or any other proper party for
the purpose of entering into a lease or growers agreement and for
all other legitimate purposes. Until a new agreement is entered
into by and between the workers’ cooperative or association and
the corporation or business association or any other proper party,
any agreement existing at the time this Act takes effect between
the former and the previous landowner shall be respected by both
the workers’ cooperative or association and the corporation,
business, association or such other proper party. In no case shall
the implementation or application of this Act justify or result in
the reduction of status or diminution of any benefits received or
enjoyed by the worker-beneficiaries, or in which they may have a
vested right, at the time this Act becomes effective.
The provisions of Section 32 of this Act, with regard to
production and income-sharing shall apply to farms operated by
multinational corporations.
During the transition period, the new owners shall be
assisted in their efforts to learn modern technology in production.
Enterprises which show a willingness and commitment and good-
faith efforts to impart voluntarily
such advanced technology will be given preferential treatment

where feasible.
In no case shall a foreign corporation, association, entity or
individual enjoy any rights or privileges better than those enjoyed
by a domestic corporation, association, entity or individual.
NOTES:
Lands Possessed by Multinational Corporations are Covered by
the CARL
Agricultural lands leased, held or possessed by multinational
corporations are also subject to compulsory acquisition and distribution.
The land shall be distributed directly to the individual worker-
beneficiaries.
If it is not economically feasible and sound to divide the land, the
individual worker-beneficiaries shall form a workers’cooperative or
association which will deal with the corporation by way of lease or
growers’ agreement and other legitimate purposes.
SECTION 9. Ancestral Lands. — For purposes of this Act,

ancestral lands of each indigenous cultural community shall
include, but not be limited to, lands in the actual, continuous and
open possession and occupation of the community and its
members: Provided, That the Torrens System shall be respected.
The right of these communities to their ancestral lands shall
be protected to ensure their economic, social and cultural well-
being. In line with the principles of self- determination and
autonomy, the systems of land ownership, land use, and the
modes of settling land disputes of all these communities must be
recognized and respected.
Any provision of law to the contrary notwithstanding, the
PARC may suspend the implementation of this Act with respect
to ancestral lands for the purpose of identifying and delineating
such lands: Provided, That in the autonomous regions, the
respective legislatures may enact their own laws on ancestral
domain subject to the provisions of the Constitution and the
principles enunciated in this Act and other national laws.
to
Sec. 10 CHAPTER 1 33 1
NOTES:
Ancestral land defined
Ancestral lands are lands of the public domain that have been in
open, continuous, exclusive, and notorious occupation and cultivation by
members of the National Cultural Communities by themselves or through
their ancestors, under a bona fide claim of acquisition of ownership
according to their customs and traditions for a period of at least thirty
(30) years before the date of approval of Presidential Decree No. 410.
It refers to lands occupied, possessed and utilized by individuals,

families, and clans who are members of the indigenous cultural
communities or indigenous peoples since time immemorial, by themselves
or through their predecessors-in-interest, under claims of individual or
traditional group ownership, continuously, to the present except when
interrupted by war, force majeure or displacement by force, deceit, stealth,
or as a consequence of government projects and other voluntary dealings
entered into by government and private individuals/corporations,
including, but not limited to, residential lots, rice terraces or paddies,
private forests, swidden farms, and tree lots.'6
Ancestral lands exempted from the Agrarian Reform Law

Ancestral lands are exempted from the coverage of the agrarian reform
program.56 The comprehensive agrarian reform law recognizes and respects the
systems of land ownership, land use, and the modes of settling land disputes of all
indigenous cultural communities or indigenous peoples, in line with the principles of
self-determination and autonomy.
In the autonomous regions, the respective legislatures may enact
their own laws on ancestral domain subject to the provisions of the
Constitution and the principles enunciated in the comprehensive
agrarian reform law and other national laws.
SECTION 10. Exemptions and Exclusions. — a) Lands actually,

directly and exclusively used for parks, wildlife, forest reserves,
reforestation, fish sanctuaries and breeding
“Sec. 3 (b), R.A. No. 8371.

“DAR Administrative Order No. 02, series of
2009.
grounds, watersheds and mangroves shall be exempt from the

coverage of this Act.
b) Private lands actually, directly and exclusively used for
prawn farms and fishponds shall be exempt from the coverage of
this Act: Provided, That said prawn farms and fishponds have not
been distributed and Certificate of Land Ownership Award (CLOA)
issued to agrarian reform beneficiaries under the Comprehensive
Agrarian Reform Program.
In cases where the fishponds or prawn farms have been
subjected to the Comprehensive Agrarian Reform Law, by
voluntary offer to sell, or commercial farms deferment or notices of
compulsory acquisition, a simple and absolute majority of the
actual regular workers or tenants must consent to the exemption
within one (1) year from the effectivity of this Act. When the
workers or tenants do not agree to this exemption, the fishponds or
prawn farms shall be distributed collectively to the worker-
beneficiaries or tenants who shall form a cooperative or
association to manage the same.
In cases where the fishponds or prawn farms have not been
subjected to the Comprehensive Agrarian Reform Law, the consent
of the farm workers shall no longer be necessary, however, the
provision of Section 32-A hereof on incentives shall apply.
c) Lands actually, directly and exclusively used and found to
be necessary for national defense, school sites and campuses,
including experimental farm stations operated by public or private
schools for educational purposes, seeds and seedling research and
pilot production center, church sites and convents appurtenant
thereto, mosque sites and Islamic centers appurtenant thereto,
communal burial grounds and cemeteries, penal colonies and penal
farms actually worked by the inmates, government and private
research and quarantine centers and all lands with eighteen percent
(18%) slope and over, except those already developed, shall be
exempt from the coverage of this Act.57

See. 10 CIlAI'l'KU 1 35
THU COMPREHENSIVE AGRARIAN REFORM I,AW OF 1998
NOTES:
Land classification in the tax declaration is not conclusive
The land classification embodied in the tax declaration is not

conclusive. Tax declarations are not the sole basis of land
classification. Thus, even if the tax declaration classifies the land as
agricultural, such classification is not irrefutable/"
REPUBLIC V. COURT OF APPEALS

342 SCRA 189 [2000]
FACTS: Green City Estate & Development Corp. is the
owner of a parcel of land located in Jala-Jala, Rizal, with a total
area of 112 hectares. Under the tax declaration, the land is
classified ns agricultural. Hence, the Department of Agrarian
Reform (DAR) subjected the land to compulsory acquisition
under the agrarian reform law.
Thereafter, Green City Estate & Development Corp. filed an
application for exemption from agrarian reform on the ground that
the land is non-agricultural because it is within the residential and
forest conservation zones of the town plan/ zoning ordinance of Jala-
Jala. The DAR denied the application for exemption on the basis of
the classification embodied in the tax declaration.
ISSUE: Was the DAR correct in denying the application for
exemption on the mere fact that the tax declaration classified the
land as agricultural?
HELD: The DAR was not correct in denying the appli
cation for exemption by the mere fact that the tax declaration
classified the land as agricultural. There is no law or jurisprudence
that holds that the land classification embodied in the tax
declarations is conclusive and final nor would proscribe further
inquiry. Furthermore, the tax declarations Eire not clearly the sole
basis of the classification of a land. In fact, DAR Administrative
Order No. 6 lists other documents, aside from tax declarations, that
must be submitted when applying for exemption from CARP.
’Republic-, v. Salvador N. Lope/. Agri-Business Corp., 639 SCRA 49 .

Lands classified as non-agricultural prior to the effectivity of the CARL are not
covered
Lands already classified for residential, commercial or industrial use
by the Housing and Land Use Regulatory Board prior to the effectivity of
the Comprehensive Agrarian Reform Law (CARL) are not subject to
agrarian reform.59
In the case of Natalia Realty v. DAR, 225 SCRA 278, the Supreme
Court held that:
“Based on the foregoing, it is clear that the undeveloped

portions of the Antipolo Hills Subdivision cannot in any language be
considered as ‘agricultural lands.’ These lots were intended for
residential use. They ceased to be agricultural lands upon approval of
their inclusion in the Lungsod Silangan Reservation. Even today, the
areas in question continued to be developed as low cost housing
subdivision, albeit at a snail’s pace. This can be gleaned from the fact
that SAMBA members even instituted an action to restrain
petitioners from continuing with such development. The enormity of
the resources needed for developing a subdivision may have delayed
its completion but this does not detract from the fact that these lands
are still residential lands and outside of the ambit of the CARL.
Indeed, lands not devoted to agricultural activity are outside
the coverage of CARL. These include lands previously converted to
non-agricultural uses prior to the effectivity of CARL by government
agencies other than respondent DAR. x x x
Since the NATALIA lands were converted prior to 15 June 1988,
respondent DAR is bound by such conversion. It was therefore error
to include the undeveloped portions of the Antipolo Hills subdivision
within the coverage of CARL.”
Lands with at least 18% slope

The reason for exempting lands with at least 18% slope from the coverage
of agrarian reform is to prevent adverse effects on the lowlands and streams
resulting from soil erosion. That is why all lands of the public domain with at
least 18% slope are considered as permanent forests or forest reserves, regardless
of the condition of vegetative cover, occupancy, or use of any kind, and therefore,
not alienable or disposable.
fi9Buk1od Ng Magbuhukid sa Lupaing Ramos v. E.M. Ramos & Sons, 645 SCRA 401;
Hairs of Dr. Jose Deleste v. LBP, 651 SCRA 352.

Sec. 10 CHAPTER 1 37
If the land with at least 18% slope has been previously classified as
alienable or disposable, but not yet titled, it shall be reverted to the category of
public forest. However, if the land has been covered by an approved public land
application or occupied openly, continuously, adversely, and publicly for a period
of not less than thirty (30) years as of the effectivity of the Forestry Reform Code,
it shall remain as such alienable or disposable on condition that the land is kept
in a vegetative state sufficient to prevent erosion and adverse effects on the
lowlands and streams.®
School sites and campuses

Lands actually, directly, and exclusively used and found necessary for
school sites and campuses are exempted from the coverage of agrarian reform.
The School is in the best position to determine whether the land is necessary for
use as school site or campuses. The DAR has no right to substitute its judgment
or discretion for that of the school.61
CMU V. DABAB
215 SCRA 86
[1992]
FACTS: Central Mindanao University (CMU) is an

agricultural institution which owns 3,000 hectares of land. In
1984, CMU adopted a livelihood program under which its land
resources were leased to its faculty and employees (groups of 5
members each group) to enable each group to cultivate 4 to 5
hectares of land for lowland rice project. Later, these faculty and
employees filed before the Department of Agrarian Reform (DAR)
a complaint praying that they be declared as tenants under the
Comprehensive Agrarian Reform Law.
Acting on the said complaint, the DAR found that the faculty
and employees were not tenants, and cannot therefore qualify as
an agrarian reform beneficiary. However, the DAR segregated 400
hectares of suitable, compact, and contiguous portions of the CMU
land and subjected it to agrarian reform coverage for distribution
to qualified beneficiaries, on the ground that it was not directly,
actually, and exclusively used for school site.
61 Sec. 16, P.D. No. 389 otherwise known as the Forestry Reform Code of the
Philippines.
6'CMU v. DARAB, 215 SCRA 86; DAR v. DECS, 426 SCRA 217.
I
38 AGRARIAN LAW AND SOCIAL LEGISLATION Sec. U
ISSUE: Whether or not the DAR was correct in segregating

the 400 hectares of CMU land.
HELD: The construction given by the DAR to Section 10 of
the Comprehensive Agrarian Reform Law restricts the land area of
the CMU to its present needs or to a land area presently, actively
exploited and utilized by the university in carrying out its present
educational program with the present student population and
academic facility — overlooking the very significant factor of growth
of the university in the years to come. By the very nature of the
CMU, which is a school established to promote agriculture and
industry, the need for vast tract of agricultural land for future
expansion is obvious.
As to the determination of when and what lands are found to be
necessary for use by the CMU, the school is in the best position to
resolve and answer the question and pass upon the problem of its
needs in relation to its avowed objectives.
Who has jurisdiction to exempt a property from agrarian reform

coverage?
The Secretary of Agrarian Reform has the jurisdiction and authority to
exempt or exclude a property from the coverage of the agrarian reform
program.62
SECTION 11. Commercial Farming. — Commercial farms, which

are private agricultural lands devoted to saltbeds, fruit farms,
orchards, vegetable and cut-flower farms, and cacao, coffee and rubber
plantations, shall be subject to immediate compulsory acquisition and
distribution after ten (10) years from the effectivity of this Act. In the
case of new farms, the ten-year period shall begin from the first year of
commercial production and operation, as determined by the DAR.
During the ten-year period, the Government shall initiate steps
necessary to acquire these lands, upon payment of just compensation
for the land and the improvements thereon, preferably in favor of
organized cooperatives or associations which shall thereafter manage
the said lands for the workers-beneficiaries.62
If the DAR determines that the purposes for which this deferment
is granted no longer exists, such areas shall automatically be subject to
redistribution.
"’Milestone Farms, Inc. v. Office of the

President, 644 SCRA 217. “As amended by
R.A. No. 7881.
The provisions of Section 32 of the Act, with regard to

production and income sharing shall apply to commercial
farms.
NOTES:
Commercial farms
Commercial farms are lands devoted to:
(a) saltbeds;
(b) fruit farms;
(c) orchards;
(d) vegetable and cut-flower farms; and

(e) cacao, coffee and rubber plantations.
Implementation of Agrarian Reform Law deferred on

commercial farms
Compulsory acquisition and distribution of commercial farms
has been deferred for 10 years:
(a) from the effectivity of Comprehensive Agrarian
Reform Law (i.eJune 15, 1988) — for farms already existing
when the law took effect; and
(b) from the first year of commercial production and
operation — for new farms.
Mode of acquisition of commercial farms

Commercial farms may be acquired through:
(a) Voluntary offer to sell (VOS);
(b) Compulsory acquisition (CA); or
(c) Direct payment scheme (DPS).54
Manner of distribution of commercial farms

Commercial farms may be distributed individually or collec-
tively. Individual beneficiaries are entitled to three (3) hectares
“Sec. 8, DAR Administrative Order No. 09, series of 1998.

each or a minimum of one (1) hectare each, if the land is not sufficient to
accommodate them.65
The following order of priority shall be observed in the distri-
bution:
(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) collectives or cooperatives of the above beneficiaries;
and
(g) others directly working on the land.“
If it is not economically feasible and sound to divide the land, the beneficiaries
will be obliged to form a workers cooperative or association.87
Infrastructure facilities and improvements which are necessary and beneficial
to the operations of the farm, including buildings, roads, machinery, receptacles,
instruments or implements permanently attached to the land may be subject to
acquisition, as determined by the Department of Agrarian Reform upon the
recommendation of the agrarian reform beneficiaries.68
Qualifications of commercial farm beneficiaries
Agrarian reform beneficiaries for acquired commercial farms must have the
following qualifications:
(a) Must be 18 years old at the time of the filing of the application as
beneficiary;
(b) Must have the willingness, aptitude, and ability to cultivate and
make the land productive; and
(c) Must have been employed in the commercial farm between June
15,1988 and June 15,1998 or upon the expiration of the deferment.
“Sec. 17, DAR Administrative Order 09, series of 1998.

Farm workers who have worked the longest on the land continuously
will be given priority.69 70
Who are disqualified to become commercial farm beneficiaries?
The following are disqualified from becoming a commercial farm

beneficiary:
(a) Farm workers who have retired from service, whether
optional or compulsory;
(b) Farm workers who have resigned from their employment
with the farm;
(c) Farm workers who have been dismissed for cause;
(d) Farm workers, lessees, or tenants who waive or refuse to be

a beneficiary; and
(e) Farm workers, lessees or tenants who have committed a
violation of agrarian reform laws and regulations.™
Freedom of beneficiaries to choose the type of agribusiness

Beneficiaries of commercial farms have the full freedom:
(a) To choose the type of agribusiness venture arrangement

that will maintain the economic viability of the farm;
(b) To market their products or enter into marketing
arrangements; and
(c) To avail of the services or assistance of individuals,
associations or non-government organizations in negotiating for the
most advantageous agribusiness venture arrangement, enterprise
development, and capability building.71
Types of agribusiness venture arrangements

Under Section 29 of DAR Administrative Order No. 09, series of 1998, among
the agribusiness venture arrangements which
69Sec. 4, ibid.
70Sec. 5, DAR Administrative Order 09, series of
1998.
7,Sec. 2 (i), ibid.
AGRARIAN LAW AND SOCIAL LEGISLATION
Set 11
42
commercial farm beneficiaries or their cooperatives may enter into are the
following:
(a) Joint Venture Arrangement — In a joint venture
arrangement, a company is organized and coowned by an investor
and the agrarian reform beneficiaries through their cooperative or
association. The investor may provide the management and
marketing skills, technology infrastructure and capital, while the
contribution or participation of the agrarian reform beneficiaries
includes labor, usufructuary rights to the land, and capital infusion,
if available.75
(b) Lease Arrangement — This is a scheme whereby the
agrarian reform beneficiaries through their cooperative or
association, enter into a contract of lease with the landowner or
investor. The lessee controls the farm operations within an agreed
period of time not exceeding ten (10) years, extendible by
agreement."
(c) Contract Growing/Growership Arrangement — This is
an arrangement whereby the agrarian reform beneficiaries or
their cooperative produce certain crops for an investor or
agribusiness firm which buys the produce at pre-arranged
terms."
(d) Management Contract - This is an arrangement
whereby the agrarian reform beneficiaries or their cooperative/
association hire the services of the landowner or investor to
manage and operate the farm in exchange for fixed wages or
commission."
(e) Build-Operate-Transfer Scheme — This is an arrangement
whereby the project proponent undertakes the financing and construction of a
given infrastructure facility and the operation and maintenance thereof for
an agreed period of time not exceeding twenty-five (25) years, subject to
extension.™
,zSec.3(i), ibid.
"Sec. 3(j), ibid.
"Sec. 3(e), ibid.
76Sec, 3(k), ibid. , *, QQQ
78Sec. 3(b), DAR Department Order No. 09 senes
Right of retention over commercial farms

Owners of commercial farms, whether individual or corporate, are
entitled to the retention rights granted by Section 6 of the
Comprehensive Agrarian Reform Law.”
CHAPTER III
IMPROVEMENT OF TENURIAL AND
LABOR RELATIONS
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
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 com, or different regions in order to improve
progressively the conditions of the farmer, tenant or lessee.
NOTES:
Power of DAR to fix rentals
Under Section 6 of the Comprehensive Agrarian Reform Law, the tenant
may choose to remain in the portion retained by the landowner, in which case,
he will no longer be considered as a tenant but as a lessee.
In order to protect the economic status of the farmer, the Department of
Agrarian Reform is empowered to determine and fix the lease rental.™ The
Department of Agrarian Reform has fixed the rentals in this wise:
(a) For lands devoted to rice and other crops — 25% of the
average normal harvest after deducting the amount used for seeds and
the cost of harvesting, or threshing. If there has been no normal
harvests, then the estimated normal harvest 77 78
77Sec.2 (c), ibid.

78Sec.12, K.A
No. 6657.
V
AGRARIAN LAW AND SOCIAL LEGISLATION Sec. 13

44
during the three (3) agricultural years immediately preceding the

date the leasehold was established.™
(b) For sugar cane lands - 25% of average normal harvest less
the value of the cost of seeds/cane points, harvesting (cutting),
loading, hauling, and/or trucking fee, and cost of processing.*0
(c) For coconut lands — 25% of the average normal harvest

for a specific area for the preceding three (3) calendar years less the
value of production cost.81
SECTION 13. Production-Sharing Plan. — Any enterprise

adopting the scheme provided for in Section 32 or operating under
a production venture, lease, management contract or other similar
arrangement and any farm covered by Sections 8 and 11 hereof is
hereby mandated to execute within ninety (90) days from the
effectivity of this Act, a production-sharing plan, under guidelines
prescribed by the appropriate government agency.
_ Nothing herein shall be construed to sanction the dimi-
nution of any benefits such as salaries, bonuses, leaves and
working conditions granted to the employee-beneficiaries under
existing laws, agreements, and voluntary practice by the
enterprise, nor shall the enterprise and its employee- beneficiaries
be prevented from entering into any agreement with terms more
favorable to the latter.
NOTES:
Applicability of the Law
This provision which obliges the establishment of a production-
sharing plan, applies only to:
(a) Farms operating under a production venture, lease,

management contract or other similar arrangement;
(b) Farms leased or operated by multinational corporations;
Secs. 14-15 CHAPTER 1 45
(c) Commercial farms, i.e., those devoted to saltbeds, fruit

farms, orchards, vegetable and cut flower farms, cacao, coffee or
rubber plantations.
CHAPTER IV
REGISTRATION
SECTION 14. Registration of Landowners. — Within one
hundred eighty (180) days from the effectivity of this Act, all
persons, natural or juridical, including government entities, that
own or claim to own agricultural lands, whether in their names or
in the name of others, except those who have already registered
pursuant to Executive Order No. 229, who shall be entitled to such
incentives as may be provided for the PARC, shall file a sworn
statement in the proper assessor’s office in the form to be
prescribed by the DAR, stating the following information:
(a) the description and area of the property;
(b) the average gross income from the property for at
least three (3) years;
(c) the names of all tenants and farmworkers
therein;
(d) the crops planted in the property and the area
covered by each crop as of June 1,1987;
(e) the terms of mortgages, leases, and management
contracts subsisting as of June 1, 1987, and
(f) the latest declared market value of the land as
determined by the city or provincial assessor.
NOTES:
Purpose of the Law
The purpose of the sworn statement is to help the Department of
Agrarian Reform identify the lands and their owners for effective
implementation of the agrarian reform program.
SECTION 15. Registration of Beneficiaries. — The DAR in

coordination with the Barangay Agrarian Reform Committee
(BARC) as organized in this Act, shall register all agricultural
46
lessees, tenants and farmworkers who are qualified to be

beneficiaries of the CARP. These potential beneficiaries with the
assistance of the BARC and the DAR shall provide the following data:
(a) names and members of their immediate farm
household;
(b) owners or administrators of the lands they work on
and the length of tenurial relationship;
(c) location and area of the land they work;
(d) crops planted; and
(e) their share in the harvest or amount of rental paid
or wages received.
A copy of the registry or list of all potential CARP
beneficiaries in the barangay shall be posted in the barangay
hall, school or other public buildings in the barangay where it
shall be open to inspection by the public at all reasonable hours.
NOTES:
Purpose of the Law
The purpose of requiring registration of agricultural lessees,
tenants, and farm workers is to develop a databank of potential and
qualified beneficiaries for the effective implementation of the agrarian
reform program.
CHAPTERV
LAND ACQUISITION
SECTION 16. Procedure for Acquisition and Distribution of Private
Lands.— For purposes of acquisition of private lands, the following
procedures shall be followed:
(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
“DAR Administrative Older No. 4. scries of 1998.

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 monuments 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 by requiring the
landowner, the LBP and other interested parties to submit
evidence as to the just compensation for the land, within
fifteen (IS) 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 corre-
sponding 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.
r
(f) Any party who disagrees with the decision may

bring the matter to the court of proper jurisdiction for final
determination of just compensation.83
NOTES:
The Compulsory Acquisition Process
This provision outlines the procedure to be followed in compulsory
acquisition of agricultural lands. Simply stated, the procedure is as follows:
(a) Identification by the Department of Agrarian Reform of
the land, landowner and beneficiary;
(b) Notice by the Department of Agrarian Reform to the
landowner about the compulsory acquisition and the price offer, thru
the following means:
(i) personal notice or by registered mail; and
(ii) posting of the notice in a conspicuous place in the
barangay hall and municipal hall where the land is located.
(c) Reply by the landowner about his acceptance or rejection
of the offered price:
(i) If the landowner accepts the offered price — the
Land Bank will pay the landowner within thirty (30) days
from execution and delivery of Deed of Transfer;
(ii) If the landowner rejects the offer — the
Department of Agrarian Reform will determine the just
compensation thru summary administrative proceedings;
(iii) If the landowner disagrees with the decision of
the Department of Agrarian Reform, he may bring the
matter to the regular courts of justice for final
determination of just compensation.
(d) Taking of immediate possession of the land by the
Department of Agrarian Reform:
(i) if the landowner receives the corresponding
payment; or
“As amended by R.A. No. 9700.

CHAPTER 1 49
Sec. 16 THE COMPREHENSIVE AGRARIAN REFORM LAW OF 1998
(ii) if the landowner does not respond to the Notice of

Acquisition.
(e) Request by the Department of Agrarian Reform to the
Register of Deeds to issue a Transfer Certificate of Title to the
Republic of the Philippines;
(f) Distribution of the land to the qualified beneficiaries.
Two notices are required for validity of implementation

For a valid implementation of the agrarian reform program, two ( 2)
notices to the landowner are required, namely:
(a) Notice of Coverage pursuant to DAR Administrative Order
No. 12, series of 1989; and
(b) Notice of Acquisition pursuant to Section 16 of the
Comprehensive Agrarian Reform Law.84
The first notice is in compliance with administrative due process,
considering that implementation of the agrarian reform law is an exercise of
police power and the power of eminent domain.85
Land acquisition procedure should be strictly construed

Since land acquisition under the agrarian reform law is an
extraordinary method of expropriation, it must be strictly construed. Hence,
the failure of the Department of Agrarian Reform or any of its agencies to
comply with the proper procedure for expropriation, i.e., when no Notice of
Coverage was issued, it should be treated as violation of constitutional due
process and should be deemed arbitrary, capricious, whimsical and tainted
with grave abuse of discretion.85
When title or ownership of the land is transferred to the State

Title and ownership over the land will be transferred to the Republic
of the Philippines only upon full payment of the just compensation. Until the
just compensation is finally determined
'“Sta. Rosa Development Corp. v. Court of Appeals, 367 SCRA 175.

"Utoxas & Co. v. Court of Appeals, 321 SCRA 106; Heirs of Dr. Jose Deleste v.
Land Bank, 651 SCRA 352.
85Heirs of Nicolas Jugalbot v. Court of Appeals, 518 SCRA 202.
AGRARIAN LAW AND SOCIAL LEGISLATION
50 Sec. 17
and fully paid, the title and ownership remains with the landowner. This is so
even if the Department of Agrarian Reform has deposited the offered price with
the Land Bank. The mere fact, therefore, that the Department of Agrarian
Reform has deposited the offered price does not warrant the cancellation of the
owner’s title.87
Opening of trust account does not constitute payment

Opening of a trust account does not constitute payment because the law
requires just compensation to be paid in cash and Land Bank bonds and not by
trust account.98
CHAPTER VI
JUST COMPENSATION
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 and the
farmworkers and by the Government to the property as well as the
nonpayment of taxes or loans secured from any government
financing institution on the said land shall be considered as
additional factors to determine its valuation.89
NOTES:
Concept of just compensation
Just compensation has been defined as “the full and fair equivalent of the
property taken from its owner by the expropriator.”
87 Association of Small Landowners v. Secretary of Agrarian Reform, 175 SCRA
“Heirs of Francisco Tan toco v. Court of Appeals, 489 SCRA 590.

“As amended by R.A. No. 9700.
The measure is not the taker’s gain, but the owner’s loss.*0 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.* 91
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.92
Prompt payment of just compensation does not only contemplate the
immediate deposit and release of the provisional compensation — it also
encompasses the full payment of the finally adjudged just compensation.
There can be no “prompt payment” when there is only partial payment of the
just compensation.93 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.94
The factors used in valuation of lands

The following are the factors in the valuation of lands:
(a) Capitalized Net Income (CNI) which is based on land use

and productivity;
(b) Comparable Sales (CS) which is based 70% of the BIR zonal
value; and
(c) Market Value (MV) which is based on the Tax Declaration.95
^Hacienda Luisita v. PARC, G.R. No. 171101, April 24, 2012.

91LandBank v. Dumlao, 572 SCRA 108.
92LandBank v. Soriano, 620 SCRA 347.
93LandBank v. Orilla, 556 SCRA 102.
^Land Bank v. Court of Appeals, 258 SCRA 407.
95DAR Administrative Order No. 02, series of 2009.
The basic formula when all factors are present

When all of the foregoing factors are present, the basic formula is as follows:
CNI x 0.60 + CS x 0.30 + MV x 0.10 = Land Value
The formula when CNI factor is not present

If the Capitalized Net Income (CNI) factor is not present, the formula is as
follows:
CS x 0.90 + MV x 0.10 = Land Value
The formula when CS factor is not present

If the Comparable Sales (.CS) factor is not present, the formula is as follows:
CNI x 0.90 + MV x 0.10 = Land Value
The formula when CS and CNI factors are not present

If the Comparable Sales (CS) and Capitalized Net Income (CNI) factor are
not present, the formula is as follows:
MV x 2 = Land Value 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 complaint. The ‘time of taking1 does not only refer to that stage
when the title is transferred to the Republic of the Philippines or the beneficiaries —
it also refers to the time when the agricultural land voluntarily offered by a
landowner was approved by Presidential Agrarian Reform Council (PARC) for
agrarian reform coverage through the stock distribution scheme.96
However, if there is undue delay in payment, the value of the property
should be determined not at the time of taking of the land,
“Hacienda Luisita v. PARC, G.R. No. 171101, April 24, 2012.

Hoc. 17 CHAPTER 1 53
THE COM I’RISI 1ENSIVH AGRARIAN REFORM LAW OF 1998
but at the time of full payment of the just compensation. As held by the
Supreme Court in Lubrica v. Land Bank, G.R. No. 170220, November
20, 2006:
“Petitioners were deprived of their proportion way back in

1972, yet to date 2006, they have not yet received just compen-
sation. Thus, it would certainly be inequitable to determine just
compensation bused on the guideline provided by P.D. No. 227
and H.O. No. 22H considering the failure to determine just com-
pensation for a considerable length of liino. That just compensa-
tion should be determined in accordance with R.A. No. 6057 und
not P.D. No. 227 or 10.0. No. 228, is important considering that
just compensation should lie the full and fair equivalent of the
property taken from its owner by the expropriator, the equiva-
lent being real, substantial, full and umplo.”
Procedure for determination of just compensation
The determination of just compensation under the Comprehensive

Agrarian Reform Law commences with Land Bank determining the value of
the lands. Using Land Bank’s valuation, the Department of Agrarian
Reform makes an oiler to the landowner. In case the landowner rejects the
oiler, the Department of Agrarian Reform 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 the just compensation. A party who disagrees with the
decision of the adjudicator may bring the matter to the Regional Trial Court
designated as a Special Agrarian Court for final determination of just
compensation.
Role of the Department of Agrarian Reform Adjudication Board (DARAB)

The 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 computations of the Lund Bank are in accordance with the rules
or administrative orders."'
The preliminary proceedings of land valuation for the purpose of the
determination of just compensation for its acquisition shall be conducted by:
"'Sec. 1, Ruin XIX, 2009 DARAB Rules ofl’rocedure.

54 AGRARIAN IJ\W AND SOCIAL LEGISLATION Sec. 17
(a) PARAD — when the initial land valuation of the Land

Bank is less than P10M;
(b) Regional Agrarian Reform Adjudicators (RARAD) —
when the initial land valuation of the Land Bank is P10M to P50M;
and
(c) DARAB — when the initial land valuation of the Land
Bank is above P50M.
In the event of non-availability, inhibition, or disqualification of a
designated PARAD in the locality, the RARAD concerned may conduct
preliminary proceedings of land valuation notwithstanding that the
jurisdictional amount is less than P10M.
On account of non-availability, inhibition or disqualification of the
RARAD concerned, the DARAB may conduct the preliminary
proceedings of land valuation or designate the same to an Adjudicator
from among the PARADs in the region.98
The valuation set by DAR not conclusive

The valuation set by the Land Bank is not conclusive. The
landowner can still contest the same in the proper court, i.e., the
Regional Trial Court designated as Special Agrarian Court. Section 6,
Rule XIX of the 2009 DARAB Rules of Procedure provides:
“SECTION 6. Filing of Original Action with the Special

Agrarian Court for Final Determination. — The party who disagrees
with the decision of the Board/Adjudicator may contest the same by filing
an original action with the Special Agrarian Court (SAC) having jurisdiction
over the subject property within fifteen (15) days from his receipt of the
Board/ Adjudicator’s decision.
Immediately upon filing with the SAC, the party shall file a Notice of
Filing of Original Action with the Board/Adjudicator, together with a
certified true copy of the petition filed with the SAC.
Failure to file a Notice of Filing of Original Action or to submit a
certified true copy of the petition shall render the decision of the
Board/Adjudicator final and executory. Upon receipt of the Notice of Filing
of Original Action or certified true copy of the petition filed with the SAC,
no writ of execution shall be issued by the Board/Adjudicator.”
"Sec. 2, Rule XIX, 2009 DARAB Rules of Procedure.

Courts cannot disregard the formula

While the determination of just compensation is essentially a judicial
function vested in the Regional Trial Court acting as special agrarian court,
it cannot disregard the formula laid down by the Department of Agrarian
Reform.89 The factors for the determination of just compensation which the
Department of Agrarian Reform converted into a formula are mandatory
and not mere guides which the designated Regional Trial Court may
disregard.1"0
Consent of beneficiary not necessary in determining just com-

pensation
The consent of the farmer-beneficiary is not required in determining
the proper compensation of the landowner. Gleaned from Section 18 of the
Comprehensive Agrarian Reform Law, the only parties in the valuation of
land are the landowner, the Department of Agrarian Reform, and the Land
Bank. Thus:
SECTION 18. Valuation and Mode of Compensation. —

The LBP shall compensate the landowner in such amount as may
be agreed upon by the landowner and the DAR and the 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 (emphasis
supplied).
The law does not mention the participation of the farmer- beneficiary.
Therefore, the Land Bank cannot refuse to pay the valuation set by the
Provincial Agrarian Reform Adjudicator (PARAD) simply because the
consent of the farmer-beneficiary was not obtained in fixing the just
compensation.'01
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 the LBP, in accordance with the
criteria provided for in Sections 16 and 17 and other pertinent provisions
hereof, or as may
"Land Bank v. Barrido, 628 SCRA 454.

100Land Bank v. Colarina, 629 SCRA 614; Land Bank v. Escandor, 632 SCRA 504;
Allied Banking Corp. v. Land Bank, 581 SCRA 301.

,01Land Bank v. Pascual, G.R. No. 128557, December 29, 1999.
be finally determined by the court, as the just compensation for the

land.
The compensation shall be paid in one of the following modes,
at the option of the landowner:
(1) Cash payment, under the following terms and conditions;
(a) For lands above fifty Twenty-five percent (25%) cash,

(50) hectares, insofar as the the balance to be paid in
excess hectarage is concerned. government financial
instruments negotiable at any
(b) For lands above time.
twenty-four (24) hectares and Thirty percent (30%) cash, the
up to fifty (50) hectares. balance to be paid in
government financial
time.
(c) For lands twenty- four Thirty-five percent (35%) cash,

(24) hectares and below. the balance to be paid in
government financial
time.
(2) Shares of stock in government-owned or controlled

corporations, LBP preferred shares, physical assets or other qualified
investments in accordance with guidelines set by the PARC; 3 4
(3) Tax credits which can be used against any tax liability;
(4) LBP bonds, which shall have the following features:

(a) 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
(10th) year: Provided, That should the landowner choose to
forego the cash portion, whether in full or in part, he shall be
paid correspondingly in LBP bonds;
(b) 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:
(i) Acquisition of land or other real properties
of the government, including assets under the Asset
Privatization Program and other assets foreclosed hy
government financial institutions in the same province
or region where the lands for which the bonds were
paid are situated;
(ii) Acquisition of shares of stock of government-
owned or controlled corporations or shares of stocks
owned by the government in private corporations;
(iii) Substitution for surety or bail bonds for the
provisional release of accused persons, or performance
bonds;
(iv) Security for loans with any government
financial institution; Provided, that the proceeds of the
loans shall be invested in an economic enterprise,
preferably in a small- and medium- scale industry, in
the same province or region as the land for which the
bonds are paid;
(v) Payment for various taxes and fees to
government; Provided, That the use of these bonds for
these purposes will be limited to a certain percentage
of the outstanding balance of the financial
instruments: Provided, further, That the PARC shall
determine the percentage mentioned above; ,
(vi) Payment for tuition fees of the immediate
family of the original bondholder in government
universities, colleges, trade schools, and other
institutions;
(vii) Payment for fees of the immediate family of
the original bondholder in government hospitals; and
(viii) Such other uses as the PARC may from
time to time allow.
r—^ --------------------
58 AGRARIAN LAW AND SOCIAL LEGISLATION Sac 18
In case of extraordinary inflation, the PARC shall take

appropriate measures to protect the economy.
NOTES:
Mode of payment
Payment of compensation may be done through the following modes,
at the option of the landowner:
(A) Cash and financial instruments of the government,
payable as follows:
(a) Lands above 50 hectares (with respect to the excess
hectarage):
(i) 25% in cash; and
(ii) 75% in government financial instruments.
(b) Lands above 24 hectares to 50 hectares:
(c) Lands above 24 hectares and below:
(B) Shares of stocks in government-owned or -controlled
corporations, preferred shares of the Land Bank, physical assets or
other qualified investments;
(C) Tax credits which can be used against tax liabilities;
and
(D) Land Bank bonds which shall mature every year until
the 10th year.
Landowner cannot insist in cash payment only

The landowner cannot insist in cash payment only because it is not
sanctioned by the agrarian reform law. The law says that the just
compensation shall be paid partly in cash and the remainder by means
of bonds, government financial instruments, shares of stock in
government owned or controlled corporations, tax credits or Land
Bank bonds.102 As rationalized by the Supreme Court in the case of

Association of Small Landowners v. Secretary of Agrarian Reform,
175SCRA 343:
“It cannot be denied from these cases that the traditional

method for the payment of just compensation is money and no
other. And so, conformably, has just compensation been paid in
the past solely in that medium. However, [th]e [Court] do[esj not
deal here with the traditional exercise of the power of eminent
domain. This is not an ordinary expropriation where only a
specific property of relatively limited area is sought to be taken
by the State from its owner for a specific and perhaps local
purpose. What [th]e [Court] deal[s] with here is a revolutionary
kind of expropriation.
xxx xxx xxx
Accepting the theory that payment of the just com-
pensation is not always to be made fully in money, [th]e [Court]
find[s] further that the proportion of cash payment to the other
things of value constituting the total payment, as determined on
the basis of the areas of the lands expropriated, is not unduly
oppressive upon the landowner. It is noted that the smaller the
land, the bigger the payment of money, primarily because the
small landowner will be needing the it more than the big
landowners, who can afford bigger balance in bonds and other
things of value. No less importantly, the government financial
instruments making up the balance of the payment are
‘negotiable at any time.’ The other modes, which are likewise
available to the landowner at his option, are also not
unreasonable because payment is made in shares of stock, LBP
bonds, other properties or assets, tax credits, and other things
of value equivalent to the amount of just compensation.”
Features of the Land Bank bonds

The features of the Land Bank bonds are as follows:
(a) Ten percent (10%) of the face value of the bonds shall
mature every year from the date of issuance until the tenth (10th) year;
(b) The bonds are transferable and negotiable;

(c) The bonds can be used for any of the following:
(i) Acquisition of land or other real properties of the
government, including assets under the Asset Priva-
102Santos v. Land Bank, G.R. No. 137431, September 7, 2000.

60
tization Program and other assets foreclosed by govern-

ment financial institutions in the same province or region
where the lands for which the bonds were paid are situ-
ated;
(ii) Acquisition of land shares of stock of govern-
ment-owned or -controlled corporations or shares of
stocks owned by the government in private corporations;
(iii) Bail bonds for the provisional release of accused persons,
or performance bonds;
(iv) Security for loans with government financial institution,
provided that the proceeds of the loans shall be invested in an
economic enterprise;
(v) Payment for various taxes and fees to government;
(vi) Payment for tuition fees of the immediate family of
the original bondholder in government universities, colleges,
trade schools, and other institutions; and
(vii) Payment for fees of the immediate family of the
original bondholder in government hospitals.
SECTION 19. Incentives for Voluntary Offers for Sale. —

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.
NOTES:
Documentary requirements for voluntary offers for sale

Landowners who voluntarily offer their agricultural lands for sale must
attach the following documents to their written offer:
(a) Title or proof of ownership, if untitled;
(b) Tax declaration; and
(c) Approved survey plan.
If the landowner fails to submit the documentary requirements,
the land will be subjected to compulsory acquisition.
SECTION 20. Voluntary Land Transfer. — Landowners of

agricultural lands subject to acquisition under this Act may enter
into a voluntary arrangement for direct transfer of their lands to
qualified beneficiaries subject to the following guidelines:
(a) All notices for voluntary land transfer must be
submitted to the DAR within the first year of the
implementation of the CARP. Negotiations between the
landowners and qualified beneficiaries covering any
voluntary land transfer which remain unresolved after one
(1) year shall not be recognized and such land shall instead
be acquired by the government and transferred pursuant to
this Act.
(b) The terms and conditions of such transfer shall not
be less favorable to the transferee than those of the
government’s standing offer to purchase from the landowner
and to resell to the beneficiaries, if such offers have been
made and are fully known to both parties.
(c) The voluntary agreement shall include sanctions

for non-compliance by either party and shall be duly
recorded and its implementation monitored by the DAR.
NOTES:
Voluntary land transfer no longer allowed
Section 7 of the Comprehensive Agrarian Reform Law, as amended
by Republic Act No. 9700, allowed voluntary land transfer up to June 30,
2009 only. After June 30, 2009, the modes of acquisition are limited to
voluntary offer to sell and compulsory acquisition.
SECTION 21. Payment of Compensation by Beneficiaries

Under Voluntary Land Transfer. — Direct payments in cash or in
kind may be made by the farmer-beneficiary to the landowner
under terms to be mutually agreed upon by both parties, which
shall be binding upon them, upon registration with and approval
by the DAR. Said approval shall be considered given, unless
notice of disapproval is received by the farmer-beneficiary
within thirty (30) days from the date of registration.
In the event they cannot agree on the price of land, the

procedure for compulsory acquisition as provided in Section 16
shall apply. The LBP shall extend financing to the beneficiaries for
purposes of acquiring the land.
NOTES:
Mode of payment in voluntary land transfers
Unlike in compulsory acquisition, the farmer-beneficiary pays the
agreed price of the land directly to the landowner.
CHAPTER VII
LAND REDISTRIBUTION
SECTION 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:
(b) regular farmworkers;
(c) seasonal farmworkers;
(d) other farmworkers;
(f) collectives or cooperatives of the above benefi-
ciaries; 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 landholdings 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 this Program.
A basic qualification of a beneficiary shall be his willingness,
aptitude, and ability to cultivate and make the land
Sec. 22 OHAPTKUl 63
TIIE COMPREHENSIVE AGRARIAN REFORM I-AW OK 1998
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 the landowner’s retention rights or to the number of
tennnts, 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.
NOTES:
Who are eligible to become agrarian reform beneficiaries?

To be eligible to become an agrarian reform beneficiary, a person must
be a landless resident of the same barangay, or of the same municipality.
A landless resident is a farmer or tiller who owns less than three
(3) hectares of land.103 It could refer to any of the following:
(b) regular farmworkers;
(c) seasonal farmworkers;
(d) other farmworkers;
(f) collectives or cooperatives of the above beneficiaries;
and
(g) others directly working on the land.
lmSec. 25, Comprehensive Agrarian Reform Law.

AGRARIAN LAW AND SOCIAL LEGISLATION See. 22
64
Qualifications of an agrarian reform beneficiary

To qualify as an agrarian reform beneficiary, the farmer (whether
tenant, lessee, or worker) must be:
(a) Filipino citizen;
(b) Resident of the barangay or municipality where the
landholding is located;
(c) At least fifteen (15) years old at the time of identifi-
cation, screening and selection; and
<d) Willing, able, and equipped with aptitude to cultivate and
make the land productive.1"*
Special qualifications for farm workers in commercial farms or

plantations
In addition to the aforementioned qualifications, farm workers in
commercial farms of plantations can qualify as an agrarian reform
beneficiary if they were already employed as of June 15,1988 in the
landholding covered by the comprehensive agrarian reform law.1"5
Managerial farm workers not qualified to become beneficiaries

Farm workers holding managerial for supervisory) positions as
of June 15, 1988 are not qualified to become agrarian reform
beneficiaries.
However, farm workers promoted to managerial or supervisory
position after they were identified, screened and selected will remain
as qualified agrarian reform beneficiaries.106
Who are disqualified to become agrarian reform beneficiaries?

The following tenants, lessees, or farm workers are
disqualified from becoming an agrarian reform beneficiary under
the agrarian reform law:
(a) Those who do not meet the basic qualifications;

(b) Those who have waived their right to become an agrarian

reform beneficiary in exchange for compensation, provided that the
waiver has not been questioned in the proper government entity;
(c) Those who have not paid an aggregate of three (3) annual
amortizations;
(d) Those who have failed to exercise right of redemption/
repurchase within two (2) years resulting in the foreclosure of
mortgage by the Land Bank of the Philippines of a previously
awarded land;
(e) Those who refused to pay three (3) annual amortizations
for land acquired through voluntary land transfer or direct payment
scheme, resulting in the repossession by the landowner;
(f) Those who have been dismissed for cause;
(g) Those who have obtained substantially equivalent
employment, i.e., any employment or profession from which the
applicant-farmer derives income equivalent to the income of a
regular farm worker at the time identification, screening, and
selection of the beneficiary;
(h) Those who have retired or voluntarily resigned from their
employment;
(i) Those who have misused the land or diverted the
financial support services extended by the government;
(j) Those who have misrepresented material facts in their
basic qualifications;
(l) Those who have sold, disposed, or abandoned the lands
awarded to them by the government;
(m) Those who have converted agricultural lands to non-
agricultural use without prior approval of the Department of
Agrarian Reform;
(n) Those who have been finally adjudged guilty of forcible
entry or unlawful detainer over the property: and
(o) Those who have violated agrarian reform laws and
regulations.107
107DAR Administrative Order No. 2, series of 2009.

AGRARIAN LAW AND SOCIAL LEGISLATION Secs. 22-A-2S
SECTION 22-A. Order of Priority. - A landholding of a

landowner shall be distributed first to qualified
beneficiaries under Section 22, subparagraphs (a) and (b)
of that same landholding up to a maximum of three (3)
hectares each. Only when these beneficiaries have all
received three (3) hectares each, shall the remaining
portion of the landholding, if any, be distributed to
other beneficiaries under Section 22, subparagraphs (c),
(d), (e), (f), and (g).108
NOTES:
Order of distribution
As per Section 22 of the Comprehensive Agrarian Reform Law,
children of the landowner enjoy first preference in the distribution of
the landholding. Each child is entitled to three (3) hectares if he is:
(a) fifteen (15) years old; and
(b) actually tilling the land or directly managing
the farm.109
After the children, the covered landholding will be distributed
to the following:
(b) regular farmworkers.
If the lessees, tenants and regular farm workers have already
received their three (3) hectares, the remaining portion of the land
will be distributed to:
(a) seasonal farm workers;
(b) other farm workers;
(c) actual tillers or occupants of public lands;
(d) collectives or cooperatives of the above beneficiaries;
and
(e) others directly working on the land.
SECTION 23. Distribution Limit. - No qualified beneficiary may

own more than three (3) hectares of agricu ura land.
108As amended by R.A. No.

9700.
,09Sec. 6, Comprehensive
Agrarian Reform Law.
NOTES:
Maximum area that can be owned by or awarded to beneficiaries
The maximum agricultural land area that can be owned by or
awarded to an agrarian reform beneficiary is three (3) hectares.
Therefore, if a tenant or farm worker already owns two (2) hectares of
agricultural land, he can still be awarded one (1) hectare.
If the particular landholding is not enough to meet the 3-hectare
award ceiling for each agricultural lessee or tenant, the area to be
distributed to them will be based on the actual size of tillage by each lessee
or tenant.
If the landholding is more than enough to accommodate the 3-
hectare limit for each agricultural lessee or tenant, the excess will be
distributed to agrarian reform beneficiaries in the following order of
priority:
(a) seasonal farm workers;
(b) other farmworkers;
(c) actual tillers or occupants of public lands;
(d) collectives or cooperatives of the above beneficiaries.
If it is not economically feasible and sound to divide the excess
land to the seasonal or other farm workers, the following criteria for
prioritization shall be observed:
(a) willingness, aptitude, and ability to cultivate and
make the land productive;
(b) physical capacity; and
(c) length of service.
If the seasonal or other farm workers equally meet the foregoing
criteria, priority shall be given to those who have continuously worked
on the subject landholding. The other farm workers who cannot be
accommodated will be put in a wait list of potential beneficiaries in
other landholdings.no 110
110DAR Administrative Order No. 2. series of 2009.

68
If the beneficiaries opt for collective ownership, such as farmer?

cooperative, the total area must coincide with the total number of
members or co-owners multiplied by the 3-hectare limit.111
Factors to be considered in determining the size of land to be

awarded
In determining the size of the land for distribution, the following
factors are to be considered:
(a) Type of crop;
(b) Type of soil;
(c) Weather patterns; and
(d) Other pertinent factors critical for the success of the
beneficiaries.112
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 land ownership 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.113
NOTES:
Transfer of ownership to the beneficiaries not automatic

Compulsory acquisition does not mean automatic transfer of
ownership of the land to the tenant, lessee, or farm worker. Title and
ownership over the land can be transferred to the beneficiaries only upon
full payment of the just compensation to the landowner.'14
When does the DAR issue a Certificate of Land Ownership Award

(CLOA)?
The DAR will issue the CLOA only upon full payment of amortization
by the farmer-beneficary. The CLOA in turn, becomes the basis for the
issuance in his name of an original or transfer certificate of title.116 * *
mAs amended by R.A. No. 9700.

*H Association of Small Landowners v. Secretary of Agrarian Reform, 175 SCRA
343; Land Bank v. Court of Appeals, 249 SCRA 149; Land Bank v. Abello, 584 SCRA 342;
Mago v. Barbin, 603 SCRA 383.
13BPadua v. Court of Appeals, 517 SCRA 232.
CLOA is indefeasible
CLOAs are titles brought under the operation of the Torrens system.
Hence, they are conferred with the same indefeasibility and security as
provided for by Presidential Decree No. 1529, as amended by Republic Act
No. 6732. CLOAs and other titles issued under the agrarian reform
program become 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 under Comprehensive Agrarian
Reform Law, the Property Registration Decree, and other pertinent
laws.116
Cancellation of CLOAs
AU cases involving the cancellation of CLOAs, and other titles
issued UDder any agrarian reform program are within the exclusive
and original jurisdiction of the Secretary of the Department of
Agrarian Reform.1"
Grounds for Cancellation of CLOAs
CLOAs may be cancelled on the following grounds:
(a) Abandonment of the land;
(b) Neglect or misuse of land;11*
(c) Failure to pay three (3) annual amortizations;11*
(d) Misuse or diversion of financial and support services;1”
(e) Sale, transfer or conveyance of the right to use the
land;* 111 and
(f) Illegal conversion of the land.152
When will the rights and obligations of beneficiaries commence?
The rights and responsibilities of the beneficiaries will begin
naSec. 24, Comprehensive Agrarian

Reform
111 Ibid.Law.
n8Sec. 22, Comprehensive Agrarian
Reform Law.
1,0Sec. 26, ibid.
,MSec. 37, ibid.
,21Sec. 73, ibid.
,22Sec. 73, ibid.
4
from their receipt of a duly registered CLOA and their actual physical
possession of the awarded land.123
Pending issuance of CLOA, the identified and qualified agrarian
reform beneficiaries have usufructuary rights over the awarded land which
the Department of Agrarian Reform, has taken possession.124
Obligations of Agrarian Reform Beneficiaries

Agrarian reform beneficiaries are obliged to:
(a) Exercise due diligence in the use, cultivation, and
maintenance of the land, including improvements thereon; and
(b) Pay the Land Bank thirty (30) annual amortizations
with 6% interest per annum;
The amortization will start one (1) year from the date of
registration of the CLOA. However, if actual occupancy of the land takes
place after the registration of the CLOA, the 1-year period shall be
reckoned from constructive occupation of the land by the beneficiary.
SECTION 25. Award Ceilings for Beneficiaries. — Bene-

ficiaries 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. The
determination of the size of the land for distribution shall
consider crop type, soil type, weather patterns and other
pertinent variables or factors which are deemed critical for the
success of the beneficiaries.
For purposes of this Act, a landless beneficiary is one who
owns less than three (3) hectares of agricultural land.
Whenever appropriate, the DAR shall encourage the
agrarian reform beneficiaries to form or join farmers’ coop-
eratives for purposes of affiliating with existing cooperative
banks in their respective provinces or localities, as well as
forming blocs of agrarian reform beneficiaries, corporations,
and partnerships and joining other farmers’ collective orga
123Sec. 24, ibid- Pasco v. Pison-Areeo Agricultural Dev. Corp., 485

SCRA
i24Sec. 514.
24, ibid.
72
nizations, including irrigators’ associations: Provided, That

the agrarian reform beneficiaries shall be assured of corre-
sponding shares in the corporation, seats in the board of di-
rectors, and an equitable share in the profit.
In general, the land awarded to a farmer-beneficiary should
be in the form of an individual title, covering one (1) contiguous
tract or several parcels of land cumulated up to a maximum of three
(3) hectares.
The beneficiaries may opt for collective ownership, such as
co-workers or farmers cooperative or some other form of collective
organization and for the issuance of collective ownership titles:
Provided, That the total area that may be awarded shall not exceed
the total number of co-owners or members of the cooperative or
collective organization multiplied by the award limit above
prescribed, except in meritorious cases as determined by the
PARC.
The conditions for the issuance of collective titles are as
follows:
(a) The current farm management system of the land

covered by CARP will not be appropriate for individual
farming of farm parcels;
(b) The farm labor system is specialized, where the
farmworkers are organized by functions and not by specific
parcels such as spraying, weeding, packing and other similar
functions;
(c) The potential beneficiaries are currently not
farming individual parcels but collectively work on large
contiguous areas; and
(d) The farm consists of multiple crops being farmed

in an integrated manner or includes non-crop production
areas that are necessary for the viability of farm operations,
such as packing plants, storage areas, dikes, and other
similar facilities that cannot be subdivided or assigned to
individual farmers.
For idle and abandoned lands or underdeveloped agri-
cultural lands to be covered by CARP, collective ownership shall
be allowed only if the beneficiaries opt for it and there is a clear
development plan that would require collective
farming or integrated farm operations exhibiting the conditions

described above. Otherwise, the land awarded to a farmer-
beneficiary should be in the form of an individual title, covering one
(1) contiguous tract or several parcels of land cumulated up to a
maximum of three (3) hectares.
In case of collective ownership, 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. If the certificates of land ownership
award are given to cooperatives then the names of the beneficiaries
must also be listed in the same certificate of land ownership award.
With regard to existing collective certificates of land
ownership award, the DAR should immediately undertake the
parcelization of said certificates of land ownership award,
particularly those that do not exhibit the conditions for collective
ownership outlined above. The DAR shall conduct a review and
redocumentation of all the collective certificates of land ownership
award. The DAR shall prepare a prioritized list of certificates of land
ownership award to be parcelized. The parcelization shall
commence immediately upon approval of this Act and shall not
exceed a period of three (3) years. Only those existing certificates of
land ownership award that are collectively farmed or are operated
in an integrated manner shall remain as collective.126
NOTES:
Individual titles for every beneficiary
As a general rule, the land should be awarded to the individual
farmer-beneficiary and should be covered by an individual title.
However, if the beneficiaries opt for collective ownership, such as
farmers cooperative, collective ownership title may be issued in the name of
the co-owners or the collective organization. If the title is issued in the name
of the collective organization, the names of the beneficiaries must be listed in
the same certificate of land ownership award.'20
‘“As amended by R.A. No. 9700.

'“Sec. 25, Comprehensive Agrarian Reform
Law.
Conditions for issuance of collective titles

There are certain conditions that must be complied with before a
collective ownership title can be issued, namely:
(a) The farm management system of the land covered is not
appropriate for individual farming;
(b) The farm labor system is specialized, i.e., where the
farmworkers are organized by functions and not by specific parcels
such as spraying, weeding, packing and other similar functions;
(c) The beneficiaries are currently not farming individual
parcels but collectively work on large contiguous areas; and
(d) The farm consists of multiple crops being farmed in an
integrated manner or includes non-crop production areas that are
necessary for the viability of farm operations, such as packing
plants, storage areas, dikes, and other similar facilities that cannot
be subdivided or assigned to individual farmers.127
Title must indicate that it is an EP or CLOA

The title of the land awarded under the agrarian reform must
indicate that it is an Emancipation Patent (EP) or a Certificate of Land
Ownership Award (CLOA).
The subsequent transfer title must also indicate that it is an
emancipation patent or a certificate of land ownership award.12"
SECTION 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 annual amortization shall start one (1) year from
the date of the certificate of land ownership award registration.
However, if the occupancy took place after the certificate of land
ownership award registration, the amortization shall start one (1)
year from actual occupancy. The payments for the first three (3)
years after the award shall be at reduced amounts as established
by the PARC: Provided, That the first five (5) annual payments may
* 26
1!7 /6id.
I26Sec.
27, Comprehensive Agrarian
Reform Law.
not be more than five percent (5%) of the value of the annual gross
production as established by the DAR. Should the scheduled annual
payments after the fifth (5th) 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 shall reduce the interest rate
and/or reduce the principal obligation to make the repayment
affordable.
The LBP shall have a lien by way of mortgage on the land
awarded to the 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.1”
NOTES:
Schedule of payment
The cost of the awarded land is payable to the Land Bank (by the
beneficiaries) in thirty (30) annual amortizations with six percent (6%)
interest per annum.
Payment starts one (1) year from:
(a) date of registration of the Certificate of Land
Ownership Award (CLOA); or
(b) date of actual occupancy, if the occupancy took place
after the registration of the CLOA.
Basis of amortization
c
The maximum amortization is 5% of the annual gross production

as established by the Department of Agrarian Reform.
After the 5th year, the interest rate and/or the principal obligation
may be reduced by the Land Bank to make the repayment affordable: 129

>
(a) If due to failure of production, the scheduled annual

payments exceed 10% of the annual gross production; and
(b) the failure to produce is not due to the beneficiary’s fault.
Effect of failure to pay the amortizations

If the beneficiary fails to pay three (3) annual amortizations, the
Land Bank can forfeit the landholding and award it to other qualified
beneficiaries.
The beneficiary whose land has been foreclosed or forfeited will be
permanently disqualified from becoming a beneficiary.
SECTION 27. Transferability of Awarded Lands. — Lands

acquired by beneficiaries under this Act or other agrarian reform laws
shall not be sold, transferred or conveyed except through hereditary
succession, or to the government, or to the LBP, or to other qualified
beneficiaries through the DAR 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 BARC of the barangay where the land is
situated. The PARCCOM, as herein provided, shall, in turn, be given
due notice thereof by the BARC.
The title of the land awarded under the agrarian reform must
indicate that it is an emancipation patent or a certificate of land
ownership award and the subsequent transfer title must also indicate
that it is an emancipation patent or a certificate of land ownership
award.
If the land has not yet been fully paid by the beneficiary, the
rights 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/herself. Failing compliance herewith, 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.
L.
-ssa,
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/she has
made on the land.'30
NOTES:
Sale or transfer of awarded lands prohibited
Agrarian reform beneficiaries cannot, within a period of ten (10) years,
sell or transfer ownership of the land awarded to them, except:
(a) through hereditary succession;

(b) to the Government;
(c) to the Land Bank of the Philippines; or
(d) to other qualified beneficiaries.
Meaning of hereditary succession

Hereditary succession means succession by intestate succession or
by will to the compulsory heirs — it does not pertain to succession to other
persons. The prohibition against transfer to persons other than the heirs
of the agrarian reform beneficiary stems from the policy of the
Government to develop generations of farmers to attain its avowed goal to
have an adequate and sustained agricultural production with certitude.
Such objective will not see the light of the day if lands covered by agrarian
reform can easily be converted to non-agricultural purposes.131
Effect of sale or transfer to the Government or the Land Bank

If the beneficiary sells or transfers ownership of the land to the
Government or to the Land Bank of the Philippines, the children or the
spouse of the transferor can repurchase the land within two (2) years from
the date of transfer.132
1:10As
amended by R.A. No. 9700.
,31Estate
of the Late Encamacion Vda. De Panlilio v. Dizon, 536
SCRA
132DAR565.
Administrative Order No, 2, series of 2009.
Can a beneficiary who has not fully paid the amortizations sell
the land to another?
If the land has not yet been fully paid by the beneficiary, he may
sell transfer, or convey his rights to the land under the following
conditions:
(a) Approval of the Department of Agrarian Reform must
first be obtained;
(b) The land should be sold only to an heir of the bene-
ficiary or to any other qualified beneficiary; and
(c) The transferee must undertake to cultivate the land
himself, otherwise, the Land Bank will take the land for proper
disposition.
If the sale or transfer complies with the foregoing conditions,
the Land Bank will compensate the beneficiary (i.e., the seller or
transferor) in one lump sum for the amounts he has already paid,
together with the value of improvements he has made on the land.
Can the beneficiary lease the land to another person?
What the law prohibits is the transfer of ownership, not
transfer of possession. Therefore, the beneficiary can lease the land
to another person, provided that the lease is also for agricultural
purposes. If the lease is for non-agricultural purpose, such as lease
to a telecommunications company for cellsites or antennas, the
beneficiary must seek the approval of the Department of Agrarian
Reform.
Can the beneficiary lease the land to the former landowner?
The beneficiary can lease the land to its former owner.
However, this can only be done after obtaining approval from the
Department of Agrarian Reform through the Provincial Agrarian
Reform Coordinating Committee.133
SECTION 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.
133Sec. 44 (a) (3), Comprehensive Agrarian Reform Law.

TOE COMPREHENSIVE AGRARIAN REFORM LAW OF 1998
NOTES:
Right over standing crops at the time of acquisition
The landowner retains his right over crops not yet
harvested at the time the Department of Agrarian Reform took
possession of the land.
CHAPTER VIII
CORPORATE FARMS
SECTION 29. Farms Owned or Operated by Corporations or
Other Business Associations. — In the case of farms owned or operated
by corporations or other business associations, the following rules shall
be observed by the PARC:
In general, lands shall be distributed directly to the individual
worker-beneficiaries.
In case it is not economically feasible and sound to divide the
land, then it shall be owned collectively by the worker-beneficiaries who
shall form a workers’ cooperative or association which will deal with the
corporation or business association. Until a new agreement is entered
into by and between the workers’ cooperative or association and the
corporation or business association, any agreement existing at the time
this Act takes effect between the former and the previous landowner
shall be respected by both the workers’ cooperative or association and
the corporation or business association.
NOTES:
Modes of distribution
There are two (2) modes of distribution of corporate farms, namely:
(a) direct; or
(b) indirect.
As a rule, corporate farms are to be distributed directly to the
individual worker-beneficiaries.
If it is not economically feasible and sound to divide the land, then it
shall be distributed indirectly to the worker-beneficiaries through a workers’
cooperative or association.
Collective ownership is sanctioned by the Constitution. This is

in recognition of the fact that land reform may become successful
even if it is done through the medium of juridical entities composed
of farmers. In the words of the Supreme Court in Hacienda Luisita,
Inc. v. PARC, G.R. No. 171101, July 5, 2011:
“As it were, the principle of ‘land to the tiller’ and the old
pastoral model of land ownership where non-human juridical
persons, such as corporations, were prohibited from owning
agricultural lands are no longer realistic under existing conditions.
Practically, an individual fanner will often face greater
disadvantages and difficulties than those who exercise ownership in
a collective manner through a cooperative or corporation. The former
is too often left to his own devices when faced with failing crops and
bad weather, or compelled to obtain usurious loans in order to
purchase costly fertilizers or farming equipment. The experiences
learned from failed land reform activities in various parts of the
country are lack of financing, lack of farm equipment, lack of
fertilizers, lack of guaranteed buyers of produce, lack of farm-to-
market roads, among others. Thus, at the end of the day, there is still
no successful implementation of agrarian reform to speak of in such
a case.
Although success is not guaranteed, a cooperative or a

corporation stands in a better position to secure funding and
competently maintain the agri-business than the individual farmer.
While direct singular ownership over farmland does offer
advantages, such as the ability to make quick decisions unhampered
by interference from others, yet at best, these advantages only but
offset the disadvantages that are often associated with such
ownership arrangement. Thus, government must be flexible and
creative in its mode of implementation to better its chances of
success. One such option is collective ownership through juridical
persons composed of farmers.”
SECTION 30. Homelots and Farmlots for Members of

Cooperatives. — The individual members of the cooperatives or
corporations mentioned in the preceding section shall be
provided with homelots and small farmlots for their family
use, to be taken from the land owned by the cooperative or
corporation.
NOTES:
Entitlement to homelot and small farmlot
As stated earlier, if it is not economically feasible and sound to
divide the farm owned or operated by corporations or other
business associations, it will be distributed indirectly to the worker-

beneficiaries through a workers’ cooperative or association, Under this
situation, the beneficiaries are entitled to a homelot and a small farmlot not
exceeding 1,000 square meters which the beneficiary can use as the site of his
permanent dwelling and for raising vegetables, poultry, pigs and other
animals and engaging in minor industries.
The homelot and small farmlot will be taken from the land awarded to
the cooperative or association.
If the existing homelot is situated within the retained area of the
landowner, the beneficiary may be made to transfer his dwelling in his farmlot
or other area designated for his homelot, provided, that the landowner
shoulders the cost of the transfer.134
SECTION 31. Corporate Landowners. — Corporate land-

owners may voluntarily transfer ownership over their agricultural
landholdings to the Republic of the Philippines pursuant to Section
20 hereof or to qualified beneficiaries, under such terms and
conditions, consistent with this Act, as they may agree upon, subject
to confirmation by the DAR.
Upon certification by the DAR, corporations owning
agricultural lands may give their qualified beneficiaries 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, under such terms and
conditions as may be agreed upon by them. In no case shall the
compensation received by the workers at the time the shares of
stocks are distributed be reduced. The same principle shall be
applied to associations, with respect to their equity or participation.
Corporations or associations which voluntarily divest a
proportion of their capital stock, equity or participation in favor of their
workers or other qualified beneficiaries under this section shall be
deemed to have complied with the provisions of this Act: Provided,
That the following conditions are complied with:
a) In order to safeguard the right of beneficiaries
who own shares of stocks to dividends and other financial
134DAR Administrative Order No. 12-91.

benefits, the books of the corporation or association shall be

subject to periodic audit by certified public accountants chosen by
the beneficiaries;
b) Irrespective of the value of their equity in the
corporation or association, the beneficiaries shall be assured of at
least one (1) representative in the board of directors, or in a
management or executive committee, if one exists, of the
corporation or association; and
c) Any shares acquired by such workers and beneficiaries
shall have the same rights and features as all other shares;
d) Any transfer of shares of stocks by the original
beneficiaries shall be void ab initio unless said transaction is in
favor of a qualified and registered beneficiary within the same
corporation.
If within two (2) years from the approval of this Act, the land or
stock transfer envisioned above is not made or realized or the plan for
such stock distribution approved by the PARC within the same period,
the agricultural land of the corporate owners or corporation shall be
subject to the compulsory coverage of this Act.
NOTES:
The schemes under Section 31 are no longer operative
Under Section 31, there are two schemes available to corporate
landowners, namely:
(a) Voluntary land transfer; and
(b) Stock distribution.
Both schemes are no longer operative. Section 7 of the Comprehensive
Agrarian Reform Law, as amended by Republic Act No. 9700, allowed
voluntary land transfers and stock distribution only up to June 30, 2009.
After June 30, 2009, the modes of acquisition are limited to voluntary offer
to sell and compulsory acquisition. Thus:
“Section 7. Priorities — x x x (a)fter June 30, 2009, the
modes of acquisition shall be limited to voluntary offer to sell
and compulsory acquisition;”
Sec. 31 CHAPTER 1
The Hacienda Luisita case
HACIENDA LUISITA, INC. V. PARC

G.R. No. 171101
July 5, 2011
FACTS: In 1957, Tarlac Development Corporation TADECO;
bought Hacienda Luisita and Central Azucarera De Tarlac from their
Spanish owners. The Philippine government, through the then
Central Bank of the Philippines, assisted TADECO in obtaining a
dollar loan from a US bank to pay for the dollar component of the sale,
while the Government Service Insurance System (GSIS) extended a
P5.911 million loan in favor of TADECO to pay the peso price
component of the sale.
One of the conditions for the GSIS loan was that the lots
comprising the HACIENDA LUISITA shall be subdivided by
TADECO and sold at cost to the tenants, if any, and whenever
conditions should exist warranting such action under the provisions
of the Land Tenure Act.
On May 7, 1980, the martial Law administration filed a
complaint with the Regional Trial Court against TADECO to compel
it to surrender HACIENDA LUISITA to the then Ministry of Agrarian
Reform (now Department of Agrarian Reform; so that the land can be
distributed to the tenants. Although TADECO maintained that
HACIENDA LUISITA does not have tenants, and therefore, not
covered by existing agrarian reform legislations, the Regional Trial
Court rendered a Decision ordering TADECO to surrender
HACIENDA LUISITA to the Ministry of Agrarian Reform.
TADECO appealed the Decision to the Court of Appeals. During
the pendency of the appeal, the Office of the Solicitor General (OSG)
moved to withdraw the government’s case against TADECO. The
Court of Appeals granted the motion on condition that TADECO must
submit a Stock Distribution Plan duly approved by the Presidential
Agrarian Reform Council (PARC; which must be implemented after
such approval. Failure to comply with these conditions will result in
the revival of the case.
On August 23, 1988, TADECO organized the HACIENDA
LUISITA, INC. (HLI), as a vehicle to facilitate stock acquisition by
the farm workers. For this purpose, TADECO assigned and conveyed
to HLI the agricultural land portion (4,915.75 hectares; and other
farm-related properties of Hacienda Luisita in exchange for HLI
shares of stock.
-4 AGRARIAN LAW AND SOCIAL LEGISLATION
Sec. 31
To accommodate the transfer of assets from TADECO to HLI,

the latter increased its capital stock from P1.5M (divided into
1.500,000 shares with a par value of Pl/sharej to P4M (divided into
400,000,000 shares also with par value of Pi/ share/.
Of the 400,000,000 shares, 150,000,000 were to be issued to
qualified and registered agrarian reform beneficiaries, and the
remaining 250,000,000 were to be issued to any stockholder of the
corporation.
Under the Stock Distribution Plan, the properties and assets
which TADECO contributed to the capital stock of HLI amounted to
P590,554,220, Deducting the total liabilities of the farm in the amount
of P235,422,758 leaves a net value of P355,531,462. This translated
to 355,531,462 shares with a par value of Pl/share.
In a referendum conducted on May 9, 1989, 93% of the
farmworker-beneficiaries of HACIENDA LUISITA signified their
acceptance of the proposed HLI’s Stock Distribution Option Plan.
Thus, on May 11, 1989, a Stock Distribution Option Agreement
was entered into by TADECO, HLI, and the 5,848 qualified farm worker-
beneficiaries. As may be gleaned from the Stock Distribution Option
Agreement, included as part of the distribution plan are:
(a) production-sharing equivalent to three percent (3%) of
gross sales from the production of the agricultural land payable to
the farm worker-beneficiaries in cash dividends or incentive bonus,
irrespective of whether HLI makes money or not; and
<h) distribution of free homelots of not more than 240
square meters each to family-beneficiaries.
The Stock Distribution Option Agreement was approved by the
Presidential Agrarian Reform Council.
On August 15,1995, HLI applied for the conversion of 500
hectares of land of the hacienda from agricultural to industrial use. On
August 14, 1996, the Department of Agrarian Reform approved the
application subject to payment of three percent (■VZo) of the gross
selling price to the beneficiaries and to HLI’s continued compliance
with its undertakings under the Stock Distribution Plan.
On December 13, 1996, HLI, ceded 300 hectares of the
converted area to Centennary Holdings, Inc. The remaining 200
hectares was transferred to Luisita Realty Corporation.
Subsequently, Centennary sold the entire 300 hectares to

Luisita Industrial Park Corporation (LIPCO) for the purpose of
developing an industrial complex. Later on, in a Deed of Absolute
Assignment dated November 25, 2004, LIPCO transferred the
parcels llizal Commercial Banking Corporation (RCBC) by way of
dacion an pago in payment of LIPCO’s PhP431,695,732.10 loon
obligations.
Apart from the 500 hectares of converted area, another 80.51
hectares of HACIENDA LUISITA were later acquired by the
government as part of the Subic-Clark-Tarlac Expressway (SCTEX)
complex. Thus, 4,335.75 hectares remained of the original 4,915
hectares which TADECO ceded to HLI.
Thereafter, a group of supervisors filed with the Depart-
ment of Agrarian Reform a petition to revoke the Stock Distri-
bution Option Agreement alleging that HLI had failed to give
them their dividends and the 1% share in gross sales, as well as
the 33% share in the proceeds of the sale of the converted 500
hectares of land.
Another petition to revoke the Stock Distribution Option
Agreement was filed by another group of beneficiaries who
wanted distribution of land and not stock option.
Finding that HLI has not complied with its obligations
under Republic Act No. 6657 despite the implementation of the
Slock Distribution Plan, the Presidential Agrarian Reform
Council revoked the Stock Distribution Option Agreement and
placed HACIENDA LUISITA under the compulsory coverage of
the agrarian reform law.
Later, RCBC and LIPCO intervened in the proceedings,
questioning the inclusion of the lands that they had acquired from
HLI in the coverage of the agrarian reform program.
ISSUES: 1. Does the Presidential Agrarian Reform Council
(PARC) have jurisdiction, power and authority to nullify or
revoke the Stock Distribution Option Agreement?
2. Was the PARC correct in nullifying or revoking the
Stock Distribution Option Agreement?
3. Was the PARC correct in including the lands that
RCBC and LIPCO had acquired from HLI in the coverage of the
agrarian reform program.
4. Should the 80.51-hectare land transferred to the
government for use as part of the SCTEX, be excluded from the
compulsory agrarian reform coverage?
HELD: 1. The PARC has jurisdiction, power and authority to nullify

or revoke the Stock Distribution Option Agreement. While Republic Act
No. 6657 or other executive issuances on agrarian reform do not explicitly
vest the PARC with the power to revoke or recall an approved Stock
Distribution Plan, such power or authority is deemed possessed under the
doctrine of necessary implication, a basic postulate that what is implied
in a statute is as much a part of it as that which is expressed. Following
the doctrine of necessary implication, it may be stated that the conferment
of express power to approve a plan for stock distribution of the agricultural
land of corporate owners necessarily includes the power to revoke or recall
the approval of the plan.
2. The PARC was correct in nullifying or revoking the Stock
Distribution Option Agreement.
Firstly, because HLI has not fully complied with its
undertaking to distribute homelots to the beneficiaries under the
Stock Distribution Plan despite the lapse of 16 years. With regard
to the homelots already awarded or earmarked, the beneficiaries are
not obliged to return the same to HLI or pay for its value since this
is a benefit granted under the Stock Distribution Plan. The
homelots do not form part of the 4,915.75 hectares covered by the
Stock Distribution Plan but were taken from the 120.9234 hectare
residential lot owned by TADECO. Those who did not receive the
homelots as of the revocation of the Stock Distribution Plan will no
longer be entitled to homelots. Thus, in the determination of the
ultimate agricultural land that will be subjected to land
distribution, the aggregate area of the homelots will no longer be
deducted. However, since the Stock Distribution Plan was
already revoked with finality, the government through the
Department of Agrarian Reform must pay HLI the just
compensation for said homelots in consonance with Sec. 4,
Article XHI of the 1987 Constitution that the taking of land for
use in the agrarian reform program is “subject to the payment
of just compensation.” (as modified by the Supreme Court
Resolution dated April 24, 2012)
Secondly, because the mechanics and timelines of stock
distribution violate the provisions of DAO 10. The distribution of
the shares of stock although not entailing a cash out from the
beneficiaries, is contingent on the number of “man days,” that is,
the number of days that the beneficiaries have worked during the
year. By
CHAITEH 1 87
See. 31 THE COMPREHENSIVE AGRARIAN REEORM IAW OF 1998
providing that the number of shares of the original 1989

beneficiaries shall depend on the number of “man days," HLI
violated the rule on stock distribution and effectively deprived the
beneficiaries of equal shares of stock in the corporation, for, in net
effect, these 6,296 qualified beneficiaries, who theoretically had
given up their rights to the land that could have been distributed
to them, suffered a dilution of their due share entitlement. HLI
has chosen to use the shares earmarked for farmworkers as
reward system chips to water down the shares of the original 6,296
beneficiaries. It is clear that the original 6,296 beneficiaries, who
were qualified at the time of the approval of the Stock Distribution
Plan, suffered from watering down of shares. Each original
beneficiary is entitled to 18,804.32 HLI shares, The original
beneficiaries got less than the guaranteed 18,804.32 HLI shares
per beneficiary, because the acquisition and distribution of the
HLI shares were based on “man days” or “number of days worked”
by the beneficiaries in a year’s time. As explained by HLI, a
beneficiary needs to work for at least 37 days in a fiscal year before
he or she becomes entitled to HLI shares. If it falls below 37 days,
the beneficiary unfortunately, does not get any share at year end.
3. The Presidential Agrarian Reform Council was not correct
in including the lands that RCBC and LIPCO had acquired from HLI in
the coverage of the agrarian reform program. As bona fide purchasers
for value, both LIPCO and RCBC have acquired rights which cannot just
be disregarded. However, considering that the sale and transfer of the
500 hectares of land subject of the August 14, 1996 Conversion Order
came after compulsory coverage has taken place, the beneficiaries
should have their corresponding share of the land’s value. HLI shall be
liable for the value received for the sale of the 200-hectare land to Luisita
Realty Corporation and the equivalent value of the 12,000,000 shares
of its subsidiary, Centennary, for the 300-hectare lot sold to LIPCO.
4. As regards the 80.51-hectare land transferred to the
government for use as part of the SCTEX, this should also be excluded
from the compulsory agrarian reform coverage considering that the
transfer was consistent with the government’s exercise of the power of
eminent domain and none of the parties actually questioned the
transfer. But considering that the sale and transfer of the 80.51-hectare
SCTEX lot came after compulsory coverage has taken place, the
beneficiaries should have their corresponding share of the land’s value,
for which HLI is liable.
88 AGRA1UAN LAW AND SOCIAL LEGISLATION Sec. 32
The 6,296 original beneficiaries shall forfeit and

relinquish their rights over the HL1 shares of stock issued to
them in favor of HL1. The 4,206 non-qualified FWBs shall
remain as stockholders of HLI.'“
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 farmworkers or
farmworkers’ organization, 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 this 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.
536As modified by the Supreme Court Resolution dated November 22, 2011.
THE COMPREHENSIVE AGRARIAN REEORM LAW OF 1998
NOTES:
Section 32 —A Transitory Provision
This provision applies only while the land transfer is being
processed and finalized. The scheme requires individuals or entities
owning, or operating an agricultural land under lease or management
contract to adopt a production sharing with farm workers in the following
manner:
(a) if more than P5M gross sales/year are realized:
(i) 3% of the gross sales — to be distributed to regular
and other farm workers (over and above the compensation
they currently receive)
(ii) 1% of the gross sales — to be distributed to the
managerial, supervisory and technical employees
(b) If profits are realized — additional 10% of the net profit
after tax, to be distributed to regular and other farmworkers.
Section 32 — Declared unconstitutional with respect to

livestock and poultry
Section 32 of the Comprehensive Agrarian Reform Law which directs
corporate farms to execute and implement production sharing plans
(pending final redistribution of their landholdings), is unreasonable,
confiscatory, and violative of due process, hence, null and void for being
unconstitutional, insofar as it includes the livestock, poultry and swine
farms in its coverage.136
SECTION 32-A. Incentives. — Individuals or entities

owning or operating fishponds and prawn farms are hereby
mandated to execute within six (6) months from the effectivity
of this Act an incentive plan with their regular fishpond or
prawn farmworkers or fishpond or prawn farm workers’
organization, if any, whereby seven point five percent (7.5%) of
their net profit before tax from the operation of the fishpond
or prawn farms are distributed within sixty (60) days at the end
of the fiscal year as compensation to regular and other pond
workers in such ponds over and above the compensation they
currently receive. 13
13*Luz Farms v. Secretary of Agrarian Reform, 192SCRA51.

90 AGRARIAN LAW AND SOCIAL LEGISLATION Secs. 33-34
In order to safeguard the right of the regular fishpond or

prawn farm workers under the incentive plan, the books of the
fishpond or prawn farm owners shall be subject to periodic audit or
inspection by certified public accountants chosen by the workers.
The foregoing provision shall not apply to agricultural lands

subsequently converted to fishpond or prawn farms provided the
size of the land converted does not exceed the retention limit of the
landowner.137
NOTES:
Incentives for Regular Fishpond or Prawn Farm Workers
This provision applies to individuals or entities owning or operating
fishponds and prawn farms. The incentive is 7.5% of the net profit before tax
over.
SECTION 33. Payment of Shares of Cooperative or Association.

— Shares of a cooperative or association acquired by farmer-
beneficiaries or worker-beneficiaries shall be fully paid for in an
amount corresponding to the valuation as determined in the
immediately succeeding section. The landowner and the LBP shall
assist the farmer-beneficiaries and worker-beneficiaries in the
payment for said shares by providing credit financing.
NOTES:
Value of shares
The value of shares of a cooperative or association will be determined by
the Land Bank.
SECTION 34. Valuation of Lands. — A valuation scheme for the

land shall be formulated by the PARC, taking into account the factors
enumerated in Section 17, in addition to the need to stimulate the
growth of cooperatives and the objective of fostering responsible
participation of the worker-beneficiaries in the creation of wealth.
137Added by R.A. No. 7881.

In the determination of a price that is just not only to the

individual but to society as well, the PARC shall consult closely with
the landowner and the worker-beneficiaries.
In case of disagreement, the price as determined by the PARC,
if accepted by the worker-beneficiaries, shall be followed, without
prejudice to the landowner’s right to petition the Special Agrarian
Court to resolve the issue of valuation.
NOTES:
The Land Bank now determines the valuation
Executive Order No. 405 promulgated on June 14, 1990, has
transferred the authority of the Presidential Agrarian Reform Council
(PARC) to determine the valuation or just compensation to the Land Bank.
Section 1 of the said Executive Order provides as follows:
“SECTION 1. The Land Bank of the Philippines shall be
primarily responsible for the determination of the land valuation
and compensation for all private lands suitable for agriculture
under either the Voluntary Offer to Sell (VOS) or Compulsory
Acquisition (CA) arrangement as governed by Republic Act No.
6657. The Department of Agrarian Reform shall make use of the
determination of the land valuation and compensation by the Land
Bank of the Philippines, in the performance of its functions.”
CHAPTER IX
SUPPORT SERVICES
SECTION 35. Creation of Support Services Office. — There is
hereby created the Office of Support Services under the DAR to be
headed by an Undersecretary.
The Office shall provide general support and coordinative
services in the implementation of the program, particularly in
carrying out the provisions of the following services to farmer
beneficiaries and affected landowners:
1) Irrigation facilities, especially second crop or dry
season irrigation facilities;
2) Infrastructure development and public works projects
in areas and settlements that come under
AGRARIAN I.AW AND SOCIAL LEGISLATION Sec. 35
agrarian reform, and for this purpose, the preparation of the

physical development plan of such settlements providing
suitable barangay sites, potable water and power resources,
irrigation systems, seeds and seedling banks, post harvest
facilities, and other facilities for a sound agricultural
development plan. For the purpose of providing the aforecited
infrastructure and facilities, the DAR is authorized to enter into
contracts with interested private parties on long term basis or
through joint-venture agreements or build-operate-transfer
scheme;
3) Government subsidies for the use of irrigation
facilities;
4) Price support and guarantee for all agricultural
produce;
5) Extending to small landowners, farmers and farmers’
organizations the necessary credit, like concessional and
collateral-free loans, for agro-industrialization based on social
collaterals like the guarantees of farmers’ organizations;
6) Promoting, developing and extending financial
assistance to small and medium-scale industries in agrarian
reform areas;
7) Assigning sufficient numbers of agricultural
extension workers to farmers’ organizations;
8) Undertake research, development and dissemination
of information on agrarian reform, plants and crops best suited
for cultivation and marketing, and low-cost and ecologically
sound farm inputs and technologies to minimize reliance on
expensive and imported agricultural inputs;
9) Development of cooperative management skills
through intensive training;
10) Assistance in the identification of ready markets for
agricultural produce and training in the other various aspects
of marketing;
11) Conduct an effective information dissemination
system through the Department of Agriculture to
Il fcir*
Sec. 86 CHAH’EIU 9a
promote marketing and minimize spoilage of agricultural

produce and products;
12) Create a credit guarantee fund for agricultural
landowners that will enhance the collateral value of
agricultural lands that are affected or will be affected by
coverage under the agrarian reform program; and
13) Administration, operation, management and
funding of support services programs and projects including
pilot projects and models related to agrarian reform as
developed by the DAR.,3H
NOTES:
The success of agrarian reform depends on the provision of the
necessary support services and an organizational vehicle that will propel
the beneficiaries to attain economic independence and self- reliance. The
lives of agrarian reform beneficiaries will be uplifted through the provision
of support services.138 139
SECTION 36. Funding for Support Services. — In order to cover

the expenses and cost of support services, at least forty percent
(40%) of all appropriations for agrarian reform during the five (5)-
year extension period shall be immediately set aside and made
available for this purpose: Provided, That the DAR shall pursue
integrated land acquisition and distribution and support services
strategy requiring a plan to be developed parallel to the land
acquisition and distribution process. The planning and
implementation for land acquisition and distribution shall be
hand-in-hand with support services delivery: Provided, further,
That for the next five years, as far as practicable, a minimum of two
(2) Agrarian Reform Communities (ARCs) shall be established by
the DAR, in coordination with the local government units, non-
governmental organizations, community-based cooperatives and
people’s organizations in each legislative district with a
predominant agricultural population: Provided, furthermore,
That the areas in which the ARCs are to be established

139DAR Administrative Order No. 5, series
of 1995.
shall have been substantially covered under the provisions of this Act
and other agrarian or land reform laws: Provided, finally, That a
complementary support services delivery strategy for existing
agrarian reform beneficiaries that are not in barangays within the
ARCs shall be adopted by the DAR.
For this purpose, an Agrarian Reform Community is composed
and managed by agrarian reform beneficiaries who shall be willing to
be organized and to undertake the integrated development of an area
and/or their organizations/ cooperatives. In each community, the DAR,
together with the agencies and organizations abovementioned, shall
identify the farmers’ association, cooperative or their respective
federations approved by the farmers-beneficiaries that shall take the
lead in the agricultural development of the area. In addition, the DAR,
in close coordination with the congressional oversight committee
created herein, with due notice to the concerned representative of the
legislative district prior to implementation shall be authorized to
package proposals and receive grants, aids and other forms of
financial assistance from any source.140
NOTES:
1. Establishment of Agrarian Reform Communities
This provision mandates the Department of Agrarian Reform to
establish Agrarian Reform Communities in each legislative district with a
predominant agricultural population.
The Agrarian Reform Community will be composed of and managed by
agrarian reform beneficiaries who shall be willing to be organized and to
undertake the integrated development of an area, their organizations or
cooperatives.
SECTION 37. Support Services for the Agrarian Reform

Beneficiaries. — The State shall adopt the integrated policy of support
services delivery to agrarian reform beneficiaries. To this end, the
DAR, the Department of Finance, and the Bangko Sentral ng Pilipinas
(BSP) shall institute reforms to
,40As amended by R.A. No. 9700.

THU COMPREHENSIVE AGRARIAN REFORM LAW OF 1998
liberalize access to credit by agrarian reform beneficiaries. The

PARC shall ensure that support services for agrarian reform
beneficiaries are provided, such as:
(a) Land surveys and titling;
(b) Socialized terms on agricultural credit facilities;
Thirty percent (30%) of all appropriations for support
services referred to in Section 36 of Republic Act No. 6657,
as amended, shall be immediately set aside and made
available for agricultural credit facilities: Provided, That
one-third (1/3) of this segregated appropriation shall be
specifically allocated for subsidies to support the initial
capitalization for agricultural production to new agrarian
reform beneficiaries upon the awarding of the
emancipation patent or the certificate of land ownership
award and the remaining two-thirds (2/3) shall be allocated
to provide access to socialized credit to existing agrarian
reform beneficiaries, including the leaseholders: Provided,
further, the LBP and other concerned government financial
institutions, accredited savings and credit cooperatives,
financial service cooperatives and accredited cooperative
banks shall provide the delivery system for disbursement of
the above financial assistance to individual agrarian reform
beneficiaries, holders of collective titles and cooperatives.
For this purpose, all financing institutions may accept
as collateral for loans the purchase orders, marketing
agreements or expected harvests: Provided, That loans
obtained shall be used in the improvement or development
of the farmholding of the agrarian reform beneficiary or
the establishment of facilities which shall enhance
production or marketing of agricultural products or
increase farm income therefrom: Provided, further, That
of the remaining seventy percent (70%) for the support
services, fifteen percent (15%) shall be earmarked for farm
inputs as requested by the duly accredited agrarian
reform beneficiaries’ organizations, such as, but not
limited to: (1) seeds, seedlings and/or planting materials;
(2) organic fertilizers; (3) pesticides; (4) herbicides; and (5)
farm animals, implements/machiner-
ies; and five percent (5%) for seminars, trainings and

the like to help empower agrarian reform
beneficiaries.
(c) Extension services by way of planting, crop-
i ping, production and post-harvest technology
transfer, as well as marketing and management
assistance and support to cooperatives and farmers’
(d) Infrastructure such as, but not limited to,
organizations;
access trails, mini-dams, public utilities, marketing
and storage facilities;
(e) Research, production and use of organic
fertilizers and other local substances necessary in
farming and cultivation; and
(f) Direct and active DAR assistance in the educa-
tion and organization of actual and potential agrarian
reform beneficiaries, at the barangay, municipal, city,
provincial, and national levels, towards helping them
understand their rights and responsibilities as owner-
cultivators developing farm-related trust relationships
among themselves and their neighbors, and increasing farm
production and profitability with the ultimate end of
empowering them to chart their own destiny. The
representatives of the agrarian reform beneficiaries to the
PARC shall be chosen from the nominees of the duly
accredited agrarian reform beneficiaries’ organizations, or
in its absence, from organizations of actual and potential
agrarian reform beneficiaries as forwarded to and
processed by the PARC EXCOM.
The PARC shall formulate policies to ensure that support
services for agrarian reform beneficiaries shall be provided at
all stages of the program implementation with the concurrence
of the concerned agrarian reform beneficiaries.
The PARC shall likewise adopt, implement, and monitor
policies and programs to ensure the fundamental equality of
women and men in the agrarian reform program as well as
respect for the human rights, social protection, and decent
working conditions of both paid and unpaid men and women
farmer-beneficiaries.
The Bagong Kilusang Kabuhayan sa Kaunlaran (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.
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/her or lesser sanctions as may be provided by the PARC,
without prejudice to criminal prosecution.1'1
NOTES:
Support services to beneficiaries
This provision mandates the Government to extend support
services to agrarian reform beneficiaries, most notable of which are:
(a) Land surveys and titling;
(b) Liberalized access to credit;
(c) Socialized terms on agricultural credit facilities;
(d) Technology transfer;
(e) Infrastructure, such as storage facilities, mini dams,
etc.
SECTION 37-A. Equal Support Services for Rural Women.

— Support services shall be extended equally to women and
men agrarian reform beneficiaries.
The PARC shall ensure that these support services, as
provided for in this Act, integrate the specific needs and well-
being of women farmer-beneficiaries taking into account the
specific requirements of female family members of farmer-
beneficiaries.
The PARC shall also ensure that rural women will be able
to participate in all community activities. To this effect, rural
women are entitled to self-organization in order to obtain
equal access to economic opportunities and to have access to
agricultural credit and loans, marketing facilities and
technology, and other support services, and equal treatment
in land reform and resettlement schemes.
I 141As amended by R.A. No. 9700.

The DAR shall establish and maintain a women’s desk,

which will be primarily responsible for formulating and
implementing programs and activities related to the
protection and promotion of women’s rights, as well as
providing an avenue where women can register their
complaints and grievances principally related to their rural
activities.1*2
NOTES:
Meaning of Rural Women
Rural women are those engaged directly or indirectly in farming
or fishing as their source of livelihood, whether paid or unpaid,
regular or seasonal, or in food preparation, managing the household,
caring for the children, and other similar activities. 113
Under Section 40(5) of the Comprehensive Agrarian Reform

Law, all qualified women members of the agricultural labor force are
guaranteed and assured of the following:
(a) equal right to ownership of the land;

(b) equal shares of the farm’s produce; and
(c) representation in advisory or appropriate decision-
making bodies.
SECTION38 Support Services for 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 coun-
seling assistance, particularly investment information on
government-owned and/or -controlled corporations and
disposable assets of the government in pursuit of
national industrialization and economic independence:
(b) Facilities, programs and schemes for the con-
version or exchange of bonds issued for payment of the
"Hbid..
,43Sec. 3 (1), Comprehensive Agrarian Reform Law.
Sec. 38 CHAFFER 1 99
lands acquired with stocks and bonds issued by the

National Government, the BSP and other
government institutions and instrumentalities;
(c) Marketing of agrarian reform bonds, as
well as promoting the marketability of said bonds
in traditional and non-traditional financial
markets and stock exchanges; and/or
(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 shall provide.
The LBP shall redeem a landowner’s agrarian reform bonds
at face value as an incentive: Provided, That at least fifty percent
(50%) of the proceeds thereof shall be invested in a Board of
Investments (BOI)-registered company or in any agri-business or
agro-industrial enterprise in the region where the CARP-covered
landholding is located. An additional incentive of two percent (2%)
in cash shall be paid to a landowner who maintains his/her
enterprise as a going concern for five (5) years or keeps his/her
investments in a BOI-registered firm for the same period: Provided,
further, That the rights of the agrarian reform beneficiaries are
not, in any way, prejudiced or impaired thereby.
The DAR, the LBP and the Department of Trade and Industry
shall jointly formulate the program to carry out these provisions
under the supervision of the PARC: Provided, That in no case shall
the landowners’ sex, economic, religious, social, cultural and
political attributes exclude them from accessing these support
services.114
111 As amended by R.A. No. 9700.

NOTES:
Support services for landowners
This provision outlines the support services that are available
to landowners, the most notable of which is the incentive granted
to a landowner who invests in rural-based industries.
A landowner who invests in rural-based industry is entitled to
the incentives granted to a registered enterprise engaged in a pio-
neer or preferred area of investment under the Omnibus
Investment Code of 1987.
Moreover, the Land Bank will redeem the landowner’s
agrarian reform bonds at its face value if at least 50% of the
proceeds thereof are invested in a Board of Investments (BOI)-
registered company or in any agri-business or agro-industrial
enterprise in the region where the CARP-covered landholding is
located.
Furthermore, if the landowner maintains his enterprise as a
going concern or keeps his investments in a BOI-registered firm for
five (5) years, he is entitled to be paid an additional incentive of 2%
in cash.
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.
NOTES:
This provision is intended to:
(a) promote equal distribution of landholdings;

(b) provide the needed infrastructures in agriculture;
and
(c) conserve soil fertility and prevent erosion.
CHAPTER X
SPECIAL AREAS OF CONCERN
SECTION 40. Special Areas of Concern. — As an integral part of
the Comprehensive Agrarian Reform Program, the
THE COMPREHENSIVE AGRARIAN REFORM LAW OF
1998
following principles in these special areas of concern shall be

observed:
(1) Subsistence Fishing. — Small fisherfolk, including seaweed
farmers, shall be assured of greater access to the utilization of water
resources.
(2) Logging and Mining Concessions. — Subject to the
requirement of a balanced ecology and conservation of water
resources, suitable areas, as determined by the Department of
Environment and Natural Resources (DENR), in logging, mining and
pasture areas, shall be opened up for agrarian settlements whose
beneficiaries shall be required to undertake reforestation and
conservation production methods. Subject to existing laws, rules and
regulations, settlers and members of tribal communities shall be
allowed to enjoy and exploit the products of the forest other than
timber within the logging concessions.
(3) Sparsely Occupied Public Agricultural Lands. — Sparsely
occupied agricultural lands of the public domain shall be surveyed,
proclaimed and developed as farm settlements for qualified landless
people based on an organized program to ensure their orderly and
early development.
Agricultural land allocations shall be made for ideal family-
size farms as determined by the PARC. Pioneers and other settlers
shall be treated equally in every respect.
Subject to the prior rights of qualified beneficiaries,
uncultivated lands of the public domain shall be made available
on a lease basis to interested and qualified parties. Parties who
will engaged in the development of capital- intensive, traditional
or pioneering crops shall be given priority.
The lease period, which shall not be more than a total of fifty
(50) years, shall be proportionate to the amount of investment and
production goals of the lessee. A system of evaluation and audit
shall be instituted.
(4) Idle, Abandoned, Foreclosed and Sequestered Lands.
— Idle, abandoned, foreclosed and sequestered lands shall be
planned for distribution as home lots and family-size farmlots to
actual occupants. If land area permits, other landless families
shall be accommodated in these lands.
(5) Rural Women. — All qualified women members of the

agricultural labor force must be guaranteed and assured equal
right to ownership of the land, equal shares of the farm’s produce,
and representation in advisory or appropriate decision-making
bodies.
(6) Veterans and Retirees. — In accordance with Section 7 of
Article XVI of the Constitution, landless war veterans and
veterans of military campaigns, their surviving spouses and
orphans, retirees of the Armed Forces of the Philippines (AFP)
and the Integrated National Police (INP), returnees, surrenderees,
and similar beneficiaries shall be given due consideration in the
disposition of agricultural lands of the public domain.
(7) Agriculture Graduates. — Graduates of agricultural
schools who are landless shall be assisted by the government,
through the DAR, in their desire to own and till agricultural
lands.
NOTES:
Opening of agrarian settlements in special areas
Farm settlements may be opened up in the following areas:
(a) Logging and mining concessions — farm settlements
may be opened up here, provided that the beneficiaries will
undertake reforestation and conservation production methods.
(b) Sparsely occupied public agricultural lands - farm
settlement may be opened up here for qualified landless people
pursuant to an organized program to ensure orderly development.
CHAPTER XI
PROGRAM IMPLEMENTATION
SECTION 41. The Presidential Agrarian Reform Council. — The

Presidential Agrarian Reform Council (PARC) shall be
composed of the President of the Philippines as Chairperson,
the Secretary of Agrarian Reform as Vice-Chairperson and the
following as members: Secretaries of the Departments of
Agriculture; Environment and Natural Resources; Budget and
Management; Interior and Local Government; Public
Works and Highways; Trade and Industry; Finance; and

Labor and Employment; Director-General of the National
Economic and Development Authority; President, Land
Bank of the Philippines; Administrator, National
Irrigation Administration; Administrator, Land
Registration Authority; and six (6) representatives of
affected landowners to represent Luzon, Visayas and
Mindanao; six (6) representatives of agrarian reform
beneficiaries, two (2) each from Luzon, Visayas and
Mindanao: Provided, That at least one (1) of them shall be
from the indigenous peoples: Provided, further, That at least
one (1) of them shall come from a duly recognized national
organization of rural women or a national organization of
agrarian reform beneficiaries with a substantial number
of women members: Provided, finally, That at least twenty
percent (20%) of the members of the PARC shall be women
but in no case shall they be less than two (2).'“
SECTION 42. Executive Committee. — There shall be an
Executive Committee (EXCOM) of the PARC composed of
the Secretary of the DAR as Chairman, and such other
members as the President may designate, taking into
account Article XIII, Section 5 of the Constitution. Unless
otherwise directed by the PARC, the EXCOM may meet
and decide on any and all matters in between meetings of
the PARC; Provided, however, That its decisions must be
reported to the PARC immediately and not later than the
next meeting.
SECTION 43. Secretariat. — A PARC Secretariat is
hereby established 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.
The Secretariat shall be headed by the Secretary of
Agrarian Reform who shall be assisted by an
Undersecretary and supported by a staff whose
composition shall be determined by the PARC Executive
Committee and whose compensation shall be chargeable
against the Agrarian Reform Fund. All officers and
employees of the Secretariat shall be appointed by the
Secretary of Agrarian Reform.
M5As amended by R.A. No. 9700,
104 AGRARIAN LAW AND SOCIAL LEGISLATION Hum. 4V 4:1
NOTES:
Composition of the Presidential Agrarian Roform Council

(PARC)
The PARC IH composed of'the following:
Chairperson — President of tho Philippines Vice-Chairperson —
Secretary of Agrarian Reform Members — Secretary of — the
Department of Agriculture
— the Department of Environment and
Natural Resources
— the Department of Budget and
Management
— the Department of Interior and
Local Government
— the Department of Public Works
and Highways
— the Department of Trade and
Industry
— the Department of Finance
— the Department of Labor and
Employment
— Director-General — National Economic
and Development Authority
— President — Land Bank of the Philippines
— Administrator — National Irrigation Adminis-
tration
— Administrator — Land Registration Authority
— 6 representatives of affected landowners to rep-
resent Luzon, Visayas and Mindanao;
— 6 representatives of agrarian reform beneficiaries,
two (2) each from Luzon, Visayas and Mindanao:
Of the 6 representatives of the agrarian reform beneficiaries:
(a) at least one (1) should be from the indigenous peoples;
Av. 44 CHAPTER 1 105
THE COMPREHENSIVE AGRARIAN REFORM LAW OK 1998
do at least one (1) should come from a duly recognized national

organization of rural women or a national organization of agrarian
reform beneficiaries with a substantial number of women members.
At least 20' v of the members of t he PARC should be women but in
no case should they be less than two (.2).
SECTION 44. Provincial Agrarian Reform Coordinating

Committee (PARC-COM). — A Provincial Agrarian Reform
Coordinating Committee is hereby created in each province,
composed of a Chairman, who shall be appointed by the President
upon the recommendation of the EXCOM, the Provincial Agrarian
Reform Officer as Executive Officer, and one (1) representative each
from the Departments of Agriculture, and of Environment and
Natural Resources and from the LBP; one (1) representative each from
existing farmers’ organizations, agricultural cooperatives and non-
governmental organizations in the province; two (2) representatives
from landowners, at least one (1) of whom shall be a producer
representing the principal crop of the province, and two (2)
representatives from farmer and farmworker or beneficiaries, at least
one (1) of whom shall be a farmer or farmworker representing the
principal crop of the province, as members: Provided, That in areas
where there are cultural communities, the latter shall likewise have
one (1) representative.
The PARCCOM shall coordinate and monitor the
implementation of the CARP in the province. It shall provide
information on the provisions of the CARP, guidelines issued by the
PARC and on the progress of the CARP in the province; in
addition, it shall:
a) Recommend to the PARC the following:
1) Market prices to be used in the determination
of the profit sharing obligation of agricultural entities in
the province;
2) Adoption of the direct payment scheme
between the landowner and the farmer and/ or
farmworker beneficiary: Provided, that the
AGRARIAN LAW AXD SOCL-U. LEGISLATION Sec. 44
amount and terms of payment are not more bur-

densome to the agrarian reform beneficiary' than
under the compulsory coverage provision of the CARL:
Prodded, further. That the agrarian reform beneficiary
agrees to the amount and terms of payment: Prodded,
furthermore, That the DAR shall act as mediator in cases
of disagreement between the landowner and the
farmer and/or farmworker beneficiary; Prodded, finally,
That the farmer and/ or farmer beneficiary shall be
eligible to borrow' from the LBP an amount equal to
eighty-five percent (85%) of the selling price of the land
that they have acquired;
3> Continuous processing of applications for lease
back arrangements, joint-venture agreements and
other schemes that will optimize the operating size for
agricultural production and also promote both
security of tenure and security of income to farmer
beneficiaries: Provided, That lease back arrangements
should be the last resort.1*6
VOTES:
Composition of the PARCCOM
Chairman
— appointed by the President upon the
recommendation of the EXCOM
— Provincial Agrarian Reform Officer

Executive Officer 1
— the Department of Agriculture
— the Department of Environment and
representative each from
Natural Resources
— the Land Bank

— existing farmers’ organizations,
agricultural cooperatives and non-
governmental organizations in the
1 representative each from province
"'•AH amended by R.A. No. 7900.

Sec. *15 CHAPTER 1 107
THE COMPREHENSIVE AGRARIAN REFORM
LAW OF 1998
2 representatives from — landowners, at least one (1) of whom
shall be a producer representing
the principal crop of the province
— farmer and farmworker or
2 representatives from beneficiaries, at least one (1) of
whom shall be a farmer or
farmworker representing the
principal crop of the province
— cultural communities, in areas
where there are cultural
1 representative from
communities
SECTION 45. Province-by-Province Implementation. — The

PARC shall provide the guidelines for the province-byprovince
implementation of the CARP, taking into account the peculiarities and
needs of each place, kind of crops needed or suited, land distribution
workload, beneficiaries development activities and other factors
prevalent or obtaining in the area. In all cases, the implementing
agencies at the provincial level shall promote the development of
identified ARCs without neglecting the needs and problems of other
beneficiaries. The ten-year program of distribution of public and
private land in each province shall be adjusted from year to year by the
province’s PARCCOM in accordance with the level of operations
previously established by the PARC, in every case ensuring that
support services arc available or have been programmed before actual
distribution is effected.M7
NOTES:
Manner of Implementation of the Agrarian Reform Program

Section 45 of the Comprehensive Agrarian Reform Law mandates the
implementation of the agrarian reform program on a province-hy-province basis
because of the peculiarities and needs of each province, such as the kind of crops
needed or suited, land
AH amended by li.A. No. 7905,

U,
108 AGRARIAN LAW AND SOCLAL LEGISLATION Sec. 46
distribution workload, and other factors prevalent or obtaining in the area.

The PARCCOM coordinates and monitors the implementation of the
agrarian reform program in the province.
SECTION 46. Barangay Agrarian Reform Committee (BARC). —

Unless otherwise provided in this Act, the provisions of Executive
Order No. 229 regarding the organization of the Barangay Agrarian
Reform Committee (BARC) shall be in effect.
NOTES:
Composition of the Barangay Agrarian Reform Council (BARC)
The Barangay Agrarian Reform Council (BARC) is composed of representatives
coming from the following:
(a) Farmers and farmworkers beneficiaries;
(b) Farmer and farmworkers non-beneficiaries;
(c) Agricultural cooperatives;
(d) Other farmer organizations;
(e) Barangay Council;
(f) Non-government organizations;
(g) Landowners;
(h) Land Bank;

(i) Official of the Department of Agriculture assigned to the barangay;
(j) Official of the Department of Environment and Natural Resources official

assigned to the area; and
(k) Department of Agrarian Reform Technologist assigned to the area who
shall act as the Secretary.1'*
■“Sec. 19. E.O. No, 229 dated July 22, 1987.

y
SECTION 47. Functions of the BARC. — (1) In addition to those
provided in Executive Order No. 229, the BARC shall have the following
functions:
(a) Mediate and conciliate between parties involved in
an agrarian dispute including matters related to tenurial and
financial arrangements;
(b) Assist in the identification of qualified beneficiaries
and landowners within the barangay;
(c) Attest to the accuracy of the initial parcellary
mapping of the beneficiary’s tillage;
(d) Assist qualified beneficiaries in obtaining credit from
lending institutions;
(e) Assist in the initial determination of the value of the
land;
(f) Assist the DAR representatives in the preparation of
periodic reports on the CARP implementation for submission
to the DAR;
(g) Coordinate the delivery of support services to
beneficiaries; and
(h) Perform such other functions as may be assigned by
the DAR.
(2) The BARC shall endeavor to mediate, conciliate and settle
agrarian disputes lodged before it within thirty (30) days from its
taking cognizance thereof. If after the lapse of the thirty-day
period, it is unable to settle the dispute, it shall issue a certificate
of its proceedings and shall furnish a copy thereof upon the parties
within seven (7) days after the expiration of the thirty-day period.
NOTES:
Functions of the BARC under Executive Order No. 229'^
The functions of the BARC under Section 19 of Executive Order No.
229 are the following:
(a) To participate and give support to the implementation of
programs on agrarian reform;
(b) To mediate, conciliate or arbitrate agrarian conflicts and
issues that are brought to it for resolution; and
no AGRARIAN LAW AND SOCIAL LEGISLATION Secs. 48-50
(c) To perform such other functions that the PARC,

its Executive Committee, or the DAR Secretary may delegate
from time to time.
SECTION 48. Legal Assistance. — The BARC or any member

thereof may, whenever necessary in the exercise of any of its functions
hereunder, seek the legal assistance of the DAR and the provincial,
city, or municipal government.
NOTES:
Legal assistance
In the exercise of its mediation or conciliation functions, the Barangay
Agrarian Reform Council can ask for legal advice from the Department of
Agrarian Reform to ensure that its proposed solution to the dispute is within
the bounds of law.
SECTION 49. Rules and Regulations. — The PARC and the DAR
shall have the power to issue rules and regulations, 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.
NOTES:
Rule-making power of DAR and PARC

This provision authorizes the Department of Agrarian Reform and the
Presidential Agrarian Reform Council to promulgate rules and regulations to
carry out the purposes of the agrarian reform program. In the exercise of their
rule-making power, the Department of Agrarian Reform and the Presidential
Agrarian Reform Council cannot enlarge or amend the provisions of the statute.
Y
CHAPTER XII
ADMINISTRATIVE ADJUDICATION
SECTION 50. Quasi-Judicial Powers of the DAR. — The DAR is

hereby vested with primary jurisdiction to determine and adjudicate
agrarian reform matters and shall have exclusive original jurisdiction
over all matters involving
REFORM LAW OF 1998
the implementation of agrarian reform, except those falling
under the exclusive jurisdiction of the Department of
Agriculture (DA) and the DENR.
It shall not be bound by technical rules of procedure and
evidence but 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 of
every action or proceeding before it.
It shall have 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 to 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.
Responsible farmer leaders shall be allowed to represent
themselves, their fellow farmers, or their organizations in any
proceedings before the DAR: Provided, however, That 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.
Notwithstanding an appeal to the Court of Appeals, the
decision of the DAR shall be immediately executory except a
decision or a portion thereof involving solely the issue of just
compensation.149
NOTES:
Two-Fold jurisdiction of the Department of Agrarian Reform (DAR)
The jurisdiction of the DAR under Section 50 of the Comprehensive Agrarian Reform
Law is two-fold, to wit:

• The first is essentially executive and pertains to the

enforcement and administration of the laws, carrying them into
practical operation and enforcing their due observance.
• The second is judicial and involves the determination of
rights and obligations of the parties.150
Therefore, a line must be drawn between the functions of the DAR
Regional Office and the functions of the DAR Adjudication Board (DARAB).
Thus:
• The function of the DAR Regional Office concerns the
implementation of agrarian reform laws.
• The functions of the DAR Adjudication Board, including the
Regional Agrarian Reform Adjudicators (RARAD) or Provincial
Agrarian Reform Adjudicators (PARAD) concerns adjudication of
agrarian reform cases.
The first is essentially executive because it pertains to the enforcement
and administration of the laws, carrying them into practical operation and
enforcing their due observance. The second is judicial in nature, involving as
it does the determination of rights and obligations of the parties.1'1
The quasi-judicial jurisdiction of the DAR

The quasi-judicial power of the DAR, which it exercises through the DAR
Adjudication Board (DARAB), embraces the following:
(a) Primary jurisdiction to determine and adjudicate agrarian
reform matters; and
(b) Appellate jurisdiction over orders and decisions of the
Agrarian Reform Adjudicators.152
The quasi-judicial powers of the DAR

In the exercise of its quasi-judicial powers, the DARAB is authorized to:
(a) hear and decide cases within its jurisdiction;
(b) summon witnesses;
,60Soriano v. Bravo, 638 SCRA 403,

16!Cabral v. Court of Appeals, G.R. No. 101974, July 12, 2001.
,62Sec. 2, Rule II, 2009 DARAB Rules of Procedure.
Sec. 50 CHAPTER 1
THE COMPREHENSIVE AGRARIAN RKKOHM RAW OK im>8 113
(c) administer oaths;
(d) take testimony;
(e) issue subpoena ad testificandum or duces tecum;
(f) issue writs of execution; and
(g) punish direct or indirect contempt.
The Provincial Agrarian Reform Adjudicators (PARAD)

In general, the PARAD has primary and exclusive jurisdiction to hear
and decide agrarian disputes. Agrarian dispute is defined in this manner:
“Agrarian dispute refers to any controversy relating to tenurial arrangements,

whether leasehold, tenancy, stewardship or otherwise, over lands devoted to
agriculture, including disputes concerning farmworkers’ associations or representa-
tion of persons in negotiating, fixing, maintaining, changing, or seeking to arrange
terms or conditions of such tenurial arrangements.
It includes any controversy relating to compensation of lands acquired under
this Act and other terms and conditions of transfer of ownership from landowners to
farmworkers, tenants and other agrarian reform beneficiaries, whether the disputants
stand in the proximate relation of farm operator and beneficiary, landowner and
tenant, or lessor and lessee.”153
It must be noted that not every case involving an agricultural land

automatically makes it 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 or tenant. Tenancy is not a
purely factual relationship dependent on what the alleged tenant does
upon the land. It is also a legal relationship. The intent of the parties, the
understanding when the farmer is installed, and their written agreements,
provided these are complied with and are not contrary to law, are even
more important. The law states that an agrarian dispute must be a
controversy relating to a tenurial arrangement over lands devoted to
agriculture. Such arrangement may be leasehold, tenancy or stewardship.
If
1B3Sec. 3 (d), Comprehensive Agrarian Reform Law.

Sec. BO
the occupancy and possession was by mere tolerance, there is no

agrarian dispute to speak of.164
Specifically, the PARAD has primary and exclusive jurisdiction
determine and adjudicate matters pertaining to:
(a) Rights and obligations of persons engaged in the
management, cultivation, and use of all agricultural lands covered by
the Comprehensive Agrarian Reform Law and other related agrarian
laws;
(b) Preliminary administrative determination of reasonable
and just compensation of lands acquired under Presidential Decree No.
27 and the Comprehensive Agrarian Reform Program;
(c) Annulment or rescission of lease contracts or deeds of sale of
lands under the administration and disposition of the DAR or Land
Bank, including amendment of titles of agricultural lands under the
administration and disposition of the DAR, Land Bank, as well as
Emancipation Patents issued under Presidential Decree No. 266,
Homestead Patents, Free Patents, and miscellaneous sales patents to
settlers in settlement and re-settlement areas under the administration
and disposition of the DAR;
(d) Ejectment and dispossession of tenants or leaseholders;
(e) Sale, alienation, pre-emption, and redemption of
agricultural lands under the coverage of the Comprehensive Agrarian
Reform Law, as amended or other agrarian laws;
(f) Correction, partition, secondary and subsequent issuances
such as reissuance of lost or destroyed owner’s duplicate copy and
reconstitution of Certificates of Land Ownership Award and
Emancipation Patents which are registered with the Land Registration
Authority;
(g) Review of leasehold rentals and fixing of disturbance
compensation;
(h) Collection of amortization payments, foreclosure and similar
disputes concerning the functions of the Land
‘“Isidro v. Court of Appeals, 216 SCRA 503.

Sec. SO CHAPTER 1 115
Bank, and payments for lands awarded under agrarian laws, including
payment for residential, commercial, and industrial lots within the
settlement and resettlement areas under the administration and disposition
of the DAR;
(i) Boundary disputes over lands under the administration and
disposition of the DAR and the Land Bank, which were transferred,
distributed, or sold to tenant-beneficiaries and covered by deeds of sale,
patents, and certificates of title;
(j) Cases previously falling under the original and exclusive
jurisdiction of the defunct Court of Agrarian Relations under Section 12 of
Presidential Decree No. 946 except those cases falling under the proper
courts or other quasi-judicial bodies; and
(k) Such other agrarian cases, disputes, matters or concerns
referred to it by the Secretary of the Department of Agrarian Reform.1M
NOTE: Section 12 of Presidential Decree No. 946 provides as follows:
“SECTION 12. Jurisdiction over Subject Matter. — The

Courts of Agrarian Relations shall have original and exclusive
jurisdiction over:
a) Cases involving the rights and obligations of persons in
the cultivation and use of agricultural land except those cognizable
by the National Labor Relations Commission; Provided, That no
case involving the determination of rentals over any kind of
tenanted agricultural land shall be taken cognizance of by the
Courts of Agrarian Relations unless there has been a prior fixing of
provision rental by the Department of Agrarian Reform, except that
the tenant-farmer may directly bring the case for immediate
determination by the Courts of Agrarian Relations;
b) Questions involving rights granted and obligations
imposed by laws, Presidential Decrees, Orders, Instructions, Rules
and Regulations issued and promulgated in relation to the agrarian
reform program; Provided, however, That matters involving the
administrative implementation of the transfer of the land to the
tenant-farmer under Presidential Decree No. 27 and amendatory
and related decrees, orders, instructions, rules
ls5Sec. 1, Rule n, 2009 DARAB Rules of Procedure.

and regulations, shall be exclusively cognizable by the Secretary of

Agrarian Reform, namely:
(1) classification and identification of landholdings;
(2) identification of tenant-farmers and landowners, and
determination of their tenancy relationship;
(3) parcellary mapping;
(4) determination of the total production and value of the
land to be transferred to the tenant-farmer;
(5) issuance, recall or cancellation of certificates of land
transfer in cases outside the purview of Presidential Decree No.
816;
(6) right of retention of the landowner;
(7) right of the tenant-farmer to a home lot;
(8) disposition of the excess area in the tenant’s
farmholding;
(9) change of crop from rice and/or corn to any other
agricultural crop;
(10) issuance of certification for the conversion of
tenanted rice and/or com land for residential, commercial,
industrial, or other urban purposes, it being understood that the
authority to issue certificates for conversion of other kinds of
tenanted agricultural land for the same purposes remains vested
in the Secretary of Agrarian Reform;
(11) transfer, surrender or abandonment by the tenant-
farmer of his farmholding and its disposition; and
(12) increase of tillage area by a tenant-farmer;
Provided, further, That the decision of the Secretary of Agrarian
Reform may be appealed to the President of the Philippines.
c) Cases involving the collection of amortizations on payments for
lands acquired under Presidential Decree No. 27, as amended,
Commonwealth Act Numbered twenty, as amended, Commonwealth Act
Numbered five hundred thirty- nine, as amended, Republic Act
Numbered eleven hundred and sixty, as amended, Republic Act
Numbered fourteen hundred, as amended, Republic Act Numbered
thirty-eight hundred and forty-four, as amended, and other related laws,
decrees, orders, instructions, rules and regulations, as well as payment
for residential, commercial and industrial lots within the
Sec. 50 CHAPTER 1
THE COMPREHENSIVE AGRARIAN REFORM LAW OF 1998 117
settlement and resettlement areas under the administration and

disposition of the Department of Agrarian Reform;
d) Cases involving collection of amortizations on payments
for farm machineries and implements distributed and sold by the
Department of Agrarian Reform and the Land Bank of the Philippines
to tenant-farmers, agricultural lessees, settlers, owner-cultivators,
amortizing owner-cultivators, the Samahang Nayon, compact farms,
farmers’ cooperatives, and other registered farmers’ associations or
organizations, as well as payment for indebtedness of settlers by
reason of the assistance given them by the Department of Agrarian
Reform in the form of seeds, work animals, houses, subsistence,
transportation, medicines, farm implements, tools, and the like;
e) Cases involving collection of amortizations on payments
for irrigation systems and/or water rights grants, as well as irrigation
fees, charge and/or rentals;
f) Cases involving collection of rentals on agricultural lands
leased by the Department of Agrarian Reform or Land Bank and
collection of agricultural loans granted to tenant- farmers,
agricultural lessees, settlers, owner-cultivators, amortizing owner-
cultivators, the Samahang Nayon, compact farms, farmers’
cooperatives and other registered farmer associations or
organizations;
g) Cases involving the annulment or rescission of lease
contracts and deeds of sale, and the cancellation or amendment of
titles pertaining to agricultural lands under the administration and
disposition of the Department of Agrarian Reform and the Land Bank,
as well as emancipation patents issued under Presidential Decree No.
266, homestead patents, free patents, and miscellaneous sales patents
to settlers in settlement and resettlement areas under the
administration and disposition of the Department of Agrarian
Reform;
h) Cases involving boundary disputes over lands under the
administration and disposition of the Department of Agrarian Reform
and the Land Bank, which are transferred, distributed and/or sold to
tenant-beneficiaries and are covered by deeds of sale, patents and
certificates of titles;
i) Cases arising out of, or in connection with, membership
in the Samahang Nayon, compact farms, farmers’ cooperatives and
other registered farmers’ associations or organizations, and the rights
and obligations arising from such membership;
j) Cases arising directly or indirectly between corporations
or partnerships covered by General Order No. 47 and tenant-farmers,
agricultural lessees, settlers, owner-cultiva-
11S AGRARIAN LAW AND SOCLAL LEGISLATION Sec. 50
tors. amortizing owner-cultivators. the Samahang Xayon, compact farms,

farmers' cooperatives, and other registered farmers’ associations or
organizations, and between such corporation or partnerships and other
corporations, partnerships, associations or sdngie proprietorships where
the question involved affects the rights and interests of the persons
herein mentioned;
k* Cases involving the determination of title to agricultural lands
where this issue is raised in an agrarian dispute by any of the parties or
a third person in connection with the possession thereof for the purpose
of preserving the tenure of the agricultural lessee or actual tenant-farmer
and effecting the ouster of the interloper or intruder in one and the same
proceeding;
Ij Cases involving the sale, alienation, mortgage foreclosure, pre-
emption and redemption of tenanted agricultural land:
m) Cases involving expropriation of all kinds of land in
furtherance of the agrarian reform program:
nj Expropriation proceedings for public purpose of all kinds of
tenanted agricultural land, whether instituted by the State, its political
subdivisions and instrumentalities, or corporations and entities
authorized by laws to expropriate;
o) Cases involving acquisition by the Department of
Agrarian Reform of irrigation systems and/or water rights grants for
the benefit of tenant-farmers, agricultural lessees, settlers, owner-
cultivators, amortizing owner-cultivators, the Samahang Nayon,
compact farms, farmers’ cooperatives, and other registered farmers’
associations or organizations, the Department of Agrarian Reform
being hereby vested with the authority to construct irrigation systems
and apply for water rights grants for the purpose herein provided;
p) Ejectment proceedings instituted by the Department of
Agrarian Reform and the Land Bank involving lands under their
administration and disposition, except urban properties belonging to
the Land Bank;
qj Cases involving violations of the penal provisions of Republic
Act Numbered eleven hundred and ninety-nine, as amended, Republic
Act Numbered thirty eight hundred and forty-four, as amended,
Presidential Decrees and laws relating to agrarian reform; Provided,
however, That violations of the said penal provisions committed by any
Judge shall be tried by the courts of general jurisdiction; and
r) Violations of Presidential Decrees Nos. 815 and
816/
REFORM LAW OF 1998
Appeal from decisions of the PARAD
Decisions of the PARAD are appealable to the DAR Adjudication
Board (DARAB) within fifteen (15) days.1116
The Regional Agrarian Reform Adjudicators (RARAD)

The RARAD is the Executive Adjudicator in the Region. It is
vested with the following functions:
fa) Administrative supervision over the PARAD including
the monitoring of cases in the Region;
(b) Conduct hearing and adjudication of agrarian dis-
putes within the Region;
(c) Conduct hearing on the following:
(i) Cases that cannot be handled by the PARAD on
account of inhibition, disqualification or when there is no
PARAD designated in the locality;
(ii) Matters of such complexity and sensitivity that
the decision thereof would constitute an important
precedent affecting regional interest as may be
recommended by the concerned RARAD and approved by the
Board; and
(iii) Preliminary determination of just compensation
of lands valued at P10M to P50M.
(iv) Conduct hearing on applications for the issuance
of a writ of preliminary injunction or temporary restraining
order and such other cases which the Board
may assign.11"
DARAB has no jurisdiction over matters pertaining to ownership

When the controversy pertains to ownership, there is no agrarian
dispute, hence, the matter is beyond the jurisdiction of the DARAB. As
held by the Supreme Court in the case of Heirs of Herman Rey Santos
v. Court of Appeals, G.R. No. 109992, March 7, 2000:
]“>Sec.
2, Rule II; Sec. 1, Rule XIV, 2009 DARAB Rules of
Procedure. “’Sec. 2, Rule II, 2009 DARAB Rules of Procedure.
120 AGRARIAN LAW AND SOCLAL LEGISLATION Sec. 50
“Petitioners and private respondent have no tenunal,

leasehold, or any agrarian relations whatsoever that could have
brought this controversy under the ambit of the agrarian reform laws.
Consequently, the DARAB has no jurisdiction over the controversy
and should not have taken cognizance of private respondent’s petition
for injunction in the first place.”
DARAB has no jurisdiction over retention or exemption issues

Issues pertaining to retention rights of the landowner and the
exclusion or exemption from agrarian reform coverage are not cognizable
by the DARAB, but by the Secretary of the Department of Agrarian
Reform because they pertain to administrative implementation of agrarian
law.158
DARAB has no jurisdiction over right of way issues

The DARAB cannot entertain a petition for right of way filed by agrarian
reform beneficiaries against an adjoining landowner because the issue of a right
of way or easement over private property without tenancy relations is outside the
jurisdiction of the DARAB.
LAGUNA ESTATES V. COURT OF APPEALS

G.R. No. 119357
July 5, 2000
FACTS: Some 234.76 hectares of agricultural land situated in
Barangay Casile, Cabuyao,
Laguna belonging to the Sta. Rosa Realty Development
Corporation (“SRRDC,” hereafter) was placed by the Department of
Agrarian Reform (DAR) under the compulsory acquisition scheme of
the Comprehensive Agrarian Reform Program (CARP), and
subsequently, Certificates of Land Ownership Award (CLOA’s) were
issued to the farmers-beneficiaries.
The aforesaid agricultural lands are isolated and/or separated

from the rest of the Municipality of Cabuyao, and the only passage
way or access road leading to said private respondents’ agricultural
lands is the privately owned road network situated within the
premises of Laguna Estate. The subject road network is open to the
public. But after agrarian reform beneficiaries were awarded the
aforesaid agricultural land, Laguna Estate prohibited and denied
the agrarian reform
168Sta. Ana v. Carpo, 572 SCRA 463; Magno v. Francisco, 616 SCRA 402.
beneficiaries from utilizing the subject road network, thereby

preventing the ingress to, and egress from, Bgy. Casile where the
farmlands awarded to private respondent are located.
On petition by the agrarian reform beneficiaries, the
DARAB ordered Laguna Estate to give a right of way over the
subject road network owned by Laguna Estate.
ISSUE: Whether or not the DARAB has jurisdiction to
grant the beneficiaries of the agrarian reform program a right of
way over Laguna Estate’s network of private roads intended for
their exclusive use.
HELD: DARAB has no jurisdiction. For DARAB to have
jurisdiction over a case, there must exist a tenancy relationship
between the parties. 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.
DARAB has no jurisdiction to identify and classify landholdings for

agrarian reform coverage
The jurisdiction to classify and identify landholdings for
agrarian reform coverage is reposed in the Secretary of
Agrarian Reform and not with the DARAB because the matter
of agrarian reform coverage is strictly a part of the
administrative implementation of the agrarian reform
program.l“
DARAB has no jurisdiction over matters pertaining to identification

and selection of beneficiaries
Identification and selection of agrarian reform
beneficiaries are matters involving administrative
implementation of the agrarian reform program. Therefore,
the matter is cognizable by the Secretary of Agrarian Reform
and not by the DARAB. Hence, any party who claims to have
priority over those who have been identified by the Municipal
Agrarian Reform Officer (MARO) should file his protest with
the MARO or Provincial Agrarian Reform Officer (PARO) and
later to the Department of Agrarian Reform, but not with the
DARAB. 159
159Alangilan Realty v. Office of

the President, 616 SCRA 633.
'“Concha v. Rubio, 617 SCRA
223.
Sec. 50-A
SECTION 50-A. Exclusive Jurisdiction on Agrarian Dispute. — No

court or prosecutor’s office shall take cognizance of cases pertaining
to the implementation of the CARP except those provided under
Section 57 of Republic Act No. 6657, as amended. If there is an
allegation from any of the parties that the case is agrarian in nature
and one of the parties is a farmer, farmworker, or tenant, the case shall
be automatically referred by the judge or the prosecutor to the DAR
which shall determine and certify within fifteen (15) days from
referral whether an agrarian dispute exists: Provided, That from the
determination of the DAR, an aggrieved party shall have judicial
recourse. In cases referred by the municipal trial court and the
prosecutor’s office, the appeal shall be with the proper regional trial
court, and in cases referred by the regional trial court, the appeal shall
be to the Court of Appeals.
In cases where regular courts or quasi-judicial bodies have
competent jurisdiction, agrarian reform beneficiaries or identified
beneficiaries and/or their associations shall have legal standing and
interest to intervene concerning their individual or collective rights
and/or interests under the CARP.
The fact of non-registration of such associations with the
Securities and Exchange Commission, or Cooperative Development
Authority, or any concerned government agency shall not be used
against them to deny the existence of their legal standing and interest
in a case filed before such courts and quasi-judicial bodies.161
NOTES:
Agrarian case directly filed in court — action to be taken
The primary jurisdiction to determine and adjudicate agrarian

reform matters is vested with the Department of Agrarian Reform.
Should a party directly file a case with the regular court and the
pleading alleges that the case is agrarian in nature and one of the
parties is a farmer, farmworker, or tenant, the Court should not
,61As amended by R.A. No. 9700.

L-

dismiss the case. Instead, it should refer the matter to the DAR for the
purpose of determining whether an agrarian dispute exists.
The aggrieved party has fifteen (15) days to appeal the ruling of
DAR to the:
(a) Regional Trial Court — For cases referred by the
Municipal Trial Court or the prosecutor’s office; and
(b) Court of Appeals — For cases referred by the
Regional Trial Court.
Legal personality of unregistered associations cannot be challenged

Courts can still entertain complaints or petitions filed by
unregistered associations or cooperatives composed of agrarian
reform beneficiaries despite the fact that they are not
incorporated with the Securities and Exchange or registered
with the Cooperative Development Authority.
SECTION 51. Finality of Determination. — 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.
NOTES:
Judicial Review
The aggrieved party can elevate the order or ruling of the DAR to the
Court of Appeals by way of a petition for review on certiorari under Rule 43
of the Rules of Court.
SECTION 52. Frivolous Appeals. — 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.
NOTES:
Frivolous or dilatory appeals
As to what is a frivolous or dilatory appeal is a factual matter
which should be decided according to the surrounding facts and
circumstances.
SECTION 53. Certification of the BARC. — 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.
NOTES:
Prerequisite to filing of a complaint before the DARAB
The Department of Agrarian Reform Adjudication Board
(DARAB) or its Adjudicators shall not take cognizance of any
agrarian case, dispute, or controversy, unless a certification from
the Barangay Agrarian Reform Committee (BARC) of the barangay
where the land involved is located is presented, to the effect that
the dispute has been submitted to it for mediation or conciliation
without any success or settlement.
However, BARC certification is not necessary in the following
cases:
(a) where the issue involves the valuation of land to
determine just compensation for its acquisition;
(b) where one party is a public or private corporation,
partnership, association or juridical person, or a public officer
or employee and the dispute relates to the performance of his
official functions;
(c) where the Secretary of the Department of Agrarian
Reform directly refers the matter to the DARAB or
Adjudicator; or
(d) where the Municipal Agrarian Reform Officer or, in
his absence, the Senior Agrarian Reform Program
Technologist
or Agrarian Reform Program Technologist certifies the nonexistence

of the B ARC or the inability of the BARC to convene .162
BARC Certification not needed in judicial determination of just

compensation
The BARC is needed only for cases filed before the DARAB. It is not
needed in petitions filed with the special agrarian courts for determination
of just compensation, because the jurisdiction of Special Agrarian Courts
over petitions for determination of just compensation is original and
exclusive.
CHAPTER XIII
JUDICIAL REVIEW
SECTION 54. Certiorari. — Any decision, order, award or ruling
of the DAR on any agrarian dispute or on any matter pertaining to the
application, implementation, enforcement, or interpretation of this Act
and other pertinent laws on agrarian reform may be brought to the
Court of Appeals by certiorari except 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.
NOTES:
The remedy from an adverse ruling of the DAR
The remedy from an adverse ruling of the DAR is to file a
petition for review on certiorari under Rule 43 of the Rules of
Court within fifteen (15) days from notice of the ruling.
SECTION 55. No Restraining Order or Preliminary Injunction.
— Except for the Supreme Court, no court in the Philippines shall
have jurisdiction to issue any restraining order or writ of preliminary
injunction against the PARC, the DAR, or any of its duly authorized
or designated agencies in any case, dispute or controversy arising
from, necessary to, or in connection with the application,
implementation,
‘“Sec. 1, Rule m, 2009 DARAB Rules of Procedure.

126 AGRARIAN LAW AND SOCLAL LEGISLATION Sec. .56
enforcement, or interpretation of this Act and other pertinent laws on

agrarian reform- (as amended by Republic Act No. 9700)
NOTES:
What Section 55 seeks to prohibit is the issuance of restraining
orders or injunctions against the proceedings before the
Department of Agrarian Reform or the Presidential Agrarian
Reform Council so as not to disrupt the smooth implementation of
the agrarian reform program. But once a ruling is rendered and the
aggrieved party brings the matter to the proper courts, the
prohibition will no longer apply. In such a situation, the court can
issue a restraining order or injunction as an ancillary relief,
particularly when jurisdictional error or grave abuse of discretion
was committed in rendering the ruling.
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.
NOTES:
The RTC should be designated as Special Agrarian Court
The Regional Trial Court should specifically be designated by the
Supreme Court as a Special Agrarian Court. Regional Trial
Seca. 57-58 CHAPTER! 127
THE COMPREHENSIVE AGRARIAN REFORM LAW OR 1!)!)8
Courts which have not been designated as special agrarian courts

cannot hear petitions for determination of just compensation even if the
land subject of such cases happen to bo within their territorial
jurisdiction.
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.
NOTES:
Additional jurisdiction of the Special Agrarian Court (SAC)
In addition to their vested jurisdiction, Special Agrarian
Courts are conferred original and exclusive jurisdiction to hear and
decide:
(a) petitions for the determination of just
compensation
to landowners; and
(b) criminal violations of the Comprehensive Agrarian
Reform Law.
Just compensation preliminarily determined by the DARAB should be filed

with the SAC within fifteen (15) days from notice
Under Section 6, Rule XIX of the 2009 DARAB Rules of
Procedure, the party who disagrees with the decision of the
Adjudicator may contest the same by filing an original action with
the Special Agrarian Court having jurisdiction over the subject
property within fifteen (15) days from his receipt of the
Adjudicator’s decision.
SECTION 58 .Appointment of Commissioners. — The Special

Agrarian Courts, upon their own initiative or at the instance
‘“Land Bank v. Villegas, 616 SCRA 626.

128 AGRARIAN LAW AND SOCIAL LEGISLATION Secs. 59.60
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 file a written report thereof
with the court.
NOTES:
Objections to the Commissioner’s report
Under the Rule 32 of the Rules of Court, a party has ten (1O
days within which to signify grounds for objections to the findings
of the report. Upon expiration of the 10-day 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 courts until the
hearing shall have been terminated and the case decided on the merits.
NOTES:
Interlocutory Orders
Interlocutory orders of the Special Agrarian Court cannot be
challenged before the higher court until the case is decided on the
merits. The obvious purpose is to expedite the resolution of agrarian
disputes.
SECTION 60. Appeals. — An appeal may be taken from the decision

of the Special Agrarian Courts by filing a petition for review with the
Court of Appeals within fifteen (15) days from receipt of notice of the
decision; 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-extendible
period of fifteen (15) days from receipt of a copy of said decision.
NOTES:
Remedy from adverse decision of the Special Agrarian Court
The remedy from an adverse decision rendered by the Regional
Trial Court acting as Special Agrarian Court is appeal via petition for
review under Rule 43 of the Rules of Court, and not an ordinary
appeal. This is so even if Special Agrarian Courts are not mentioned
in Rule 43 of the Rules of Court. As held in the case of Land Bank v.
De Leon, G.R. No. 143275, September 10, 2002:
“x x x 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 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 th[e] Court
expressly disallowing the said procedure.”
Remedy from adverse decision of the Court of Appeals
The remedy from an adverse decision of the Court of Appeals is appeal by
certiorari with the Supreme Court under Rule 45 of the Rules of Court, within
fifteen (15) days from notice.
The 15-day period is non-extendible

By express provision of Section 60 of the Comprehensive Agrarian Reform
law, the 15-day period within which to file petition for review with the Supreme
Court is non-extendible.
SECTION 61. Procedure on Review. — Review by the Court of

Appeals or the Supreme Court, as the case may be, shall be
governed by the Rules of Court. The Court of Appeals, however,
may require the parties to file simultaneous memoranda within a
period of fifteen (15) days from notice, after which the case is
deemed submitted for decision.
NOTES:
Applicability of the Rules of Court
On appeal, the procedures outlined in the Rules of Court will govern.
To expedite the proceedings, the Court can just require the parties to submit
simultaneous memorandum within fifteen (15) days after which the case
will be deemed submitted for decision.
SECTION 62. Preferential Attention in Courts. — All courts in

the Philippines, both trial and appellate, shall give preferential attention
to all cases arising from or in connection with the implementation of the
provisions of this Act.
All cases pending in court arising from or in connection with the
implementation of this Act shall continue to be heard, tried and
decided into their finality, notwithstanding the expiration of the ten-
year period mentioned in Section 5 hereof.
NOTES:
Expeditious disposition of agrarian cases is the objective
Considering the nature of an agrarian case, it is imperative that
the case be decided with expeditiously for the benefit of both the agrarian
reform beneficiary and the landowner who is entitled to prompt payment
of just compensation.
CHAPTER XIV
FINANCING
SECTION 63. Funding Source. — The amount needed to further

implement the CARP as provided in this Act, until June 30, 2014,
upon expiration of funding under Republic Act No. 8532 and other
pertinent laws, shall be funded from the Agrarian Reform Fund
and other funding sources
in the amount of at least One hundred fifty billion pesos

(P150,000,000,000.00).
Additional amounts are hereby authorized to be appropriated
as and when needed to augment the Agrarian Reform Fund in order
to fully implement the provisions of this Act during the five (5)-year
extension period.
Sources of funding or appropriations shall include the
following:
(a) Proceeds of the sales of the Privatization and
Management Office (PMO);
(b) All receipts from assets recovered and from sales
of ill-gotten wealth recovered through the PCGG excluding
the amount appropriated for compensation to victims of
human rights violations under the applicable law;
(c) Proceeds of the disposition and development of
the properties of the Government in foreign countries, for
the specific purposes of financing production credits,
infrastructure and other support services required by this
Act;
(d) All income and collections of whatever form and
nature arising from the agrarian reform operations,
projects and programs of the DAR and other CARP
implementing agencies;
(e) Portion of amounts accruing to the Philippines
from all sources of official foreign aid grants and
concessional financing from all countries, to be used for the
specific purposes of financing productions, credits,
infrastructures, and other support services required by this
Act;
(f) Yearly appropriations of no less than Five billion
pesos (P5,000,000,000.00) from the General Appropriations
Act;
(g) Gratuitous financial assistance from legitimate
sources; and
(h) Other government funds not otherwise appro-
j priated.
132 AGRARIAN LAW AND SOCIAL LEGISLATION See. 64
All funds appropriated to implement the provisions of this

Act shall be considered continuing appropriations during the
period of its implementation: Provided, That if the need arises,
specific amounts for bond redemptions, interest payments and
other existing obligations arising from the implementation of
the program shall be included in the annual General
Appropriations Act: Provided, further, That all just
compensation payments to landowners, including execution of
judgments therefor, shall only be sourced from the Agrarian
Reform Fund: Provided, however, That just compensation
payments that cannot be covered within the approved annual
budget of the program shall be chargeable against the debt
service program of the national government, or any
unprogrammed item in the General Appropriations Act:
Provided, finally, That after the completion of the land
acquisition and distribution component of the CARP, the yearly
appropriation shall be allocated fully to support services,
agrarian justice delivery and operational requirements of the
DAR and the other CARP implementing agencies.164
NOTES:
Funding of just compensation
The just compensation payments to landowners can only be
sourced from the Agrarian Reform Fund. If the annual budget for the
agrarian reform fund is not sufficient, the just compensation payments
shall be charged against the debt service program of the national
government, or any unprogrammed item in the General
Appropriations Act.
SECTION 64. Financial Intermediary for the CARP. — The

Land Bank of the Philippines shall be the financial
intermediary for the CARP, and shall insure that the social
justice objectives of the CARP shall enjoy a preference among
its priorities.
'"As amended by R.A. Nos. 8532 and 9700.

NOTES:
Role of the Land Bank
The Land Bank is the financial arm of the agrarian reform pro-
gram. The determination of just compensation under the Comprehensive
Agrarian Reform Law commences with the Land Bank determining the
value of the lands. Using Land Bank’s valuation, the Department of
Agrarian Reform makes an offer to the landowner.
CHAPTER XV
GENERAL PROVISIONS
SECTION 65. Conversion of 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 respect only to his/her retained area which is tenanted,
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 if the applicant is a
beneficiary under agrarian laws and the land sought to be
converted is the land awarded to him/her or any portion
thereof, the applicant, after the conversion is granted, shall
invest at least ten percent (10%) of the proceeds coming from
the conversion in government securities: Provided, further,
That the applicant upon conversion shall fully pay the price of
the land: Provided, furthermore, That irrigated and irrigable
lands, shall not be subject to conversion: Provided, finally, That
the National Irrigation Administration shall submit a
consolidated data on the location nationwide of all irrigable
lands within one (1) year from the effectivity of this Act.
Failure to implement the conversion plan within five
(5) years from the approval of such conversion plan or any
violation of the conditions of the conversion order due to the
fault of the applicant shall cause the land to automatically be
covered by CARP.165

NOTES:
Meaning of conversion
Conversion is the act of changing the current use of a piece of
agricultural land into some other use, to wit:
(a) For residential, commercial, industrial, and other
non-agricultural purposes;
(b) For another type of agricultural activity such as
livestock, poultry, and fishpond the effect of which is to exempt
the land from CARP coverage;
(c) For non-agricultural use other than that previously
authorized.166
Change of crops to commercial crops or high value crops is
considered as a conversion in the use or nature of the land.167
Conversion differs from reclassification

Conversion is the act of changing the current use of a piece of
agricultural land into some other use as approved by the Department
of Agrarian Reform.
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. 168
Effect of reclassification
A mere reclassification of an agricultural land does not auto-
matically allow the 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.169
Scope of the DAR’s conversion authority

Agricultural lands that were already or reclassified as non-
agricultural prior to June 15,1998 does not require any conversion

167Sec. 65-D, Comprehensive Agrarian Reform Law.
16flCREBA v. Secretary of Agrarian Reform, 621
SCRA
m Ibid. 296.
clearance or authority from the Department of Agrarian Reform because

the said lands are not covered by the agrarian reform program.1™
The authority of the Department of Agrarian Reform to approve or

disapprove conversion of agricultural land into residential, commercial or
industrial use can only be exercised after the effectivity of Republic Act
No. 6657 on June 15,1988. After June 15,1998, conversion approval is
necessary even if the land has been reclassified as non-agricultural by the
local government units or by way of Presidential Proclamation.
Reclassification alone will not suffice to use the agricultural lands for non-
agricultural purposes. Conversion is needed to change the current use of
reclassified agricultural lands.170 171
Who can apply for conversion?

The following persons can apply for land conversion:
(a) the beneficiary; or
(b) the landowner with respect only to his retained area
which is tenanted.
When is the proper time to file the application for conversion?

The application for conversion can be filed after the lapse of five
(5) years from the award of the land.
Under what conditions can an application for conversion be

filed?
The application for conversion can be filed if any of the following
conditions exist:
(a) when the land ceases to be economically feasible for
agricultural purposes, or
(b) when the locality has become urbanized and the land
will have a greater economic value for residential, commercial or
industrial purposes.
170Sta. Rosa Realty v. Court of Appeals, G.R. No. 112526, October 12,
171CREBA v. Secretary of2001.
Agrarian Reform, supra.
136 AGRARIAN LAW AND SOCIAL LEGISLATION S6C. 65
Obligations of the beneficiary if the application for

conversion is approved
If the conversion application is approved, the beneficiary
is required to:
(a) invest 10% of the proceeds from the conversion
in government securities; and
(b) pay the Land Bank the full price of the land
upon conversion.
Lands that cannot absolutely be subject to conversion

The following lands are absolutely not subject to
conversion:
(a) Agricultural lands within protected areas designated
under the National Integrated Protected Areas System (NIP AS),
including watershed and recharged areas of aquifers, as determined
by the Department of Environment and Natural Resources (DENR);
(b) All irrigated lands, as delineated by the Department of
Agriculture (DA) and/or the National Irrigation Administration
(NIA), where water is available to support rice and other crop
production, and all irrigated lands where water is not available for
rice and other crop production but are within areas programmed for
irrigation facility rehabilitation by the DA and/or the NIA;
(c) All irrigable lands already covered by irrigation projects
with firm funding commitments, as delineated by DA and/or NIA;
and
(d) All agricultural lands with irrigation facilities operated
by private organizations.172
Areas highly restricted from conversion

The following areas are highly restricted from conversion:
(a) Irrigable lands not covered by irrigation projects with firm
funding commitment:
(b) Agro-industrial croplands, or lands presently plant-
172Sec. 4, DAK Administrative Order No. 01-99.

ed to industrial crops that support the economic viability of ex-

isting agricultural infrastructure and agro-based enterprises;
(c) Highlands or areas located in elevations of 500 meters
or above and have the potential for growing semi- temperate and
usually high-value crops;
(d) Lands issued with notice of land valuation and ac-
quisition, or subject of a perfected agreement between the land-
owner and the beneficiaries under the voluntary land transfer/
direct payment scheme (VLT/DPS) under the Comprehensive
Agrarian Reform Program (CARP); and
(e) Environmentally critical areas (EGAs) as determined
by the DENR in accordance with law.
These lands are highly restricted from conversion because they
require, apart from the standard requirements, a project feasibility
study and environmental compliance certificate.173
Effect of failure to implement the approved conversion plan

If the approved conversion plan is not implemented within five
(5) years from approval, the land will continue to be covered by the
agrarian reform program.
SECTION 65-A. Conversion Into Fishpond and Prawn Farms. —

No conversion of public agricultural lands into fishponds and
prawn farms shall be made except in situations where the
provincial government with the concurrence of the Bureau of
Fisheries and Aquatic Resources (BFAR) declares a coastal
zone as suitable for fishpond development. In such case, the
Department of Environment and Natural Resources (DENR)
shall allow the lease and development of such areas: Provided,
That the declaration shall not apply to environmentally
critical projects and areas as contained in title (A) sub-
paragraph two, (B-5) and (C-l) and title (B), number eleven (11)
of Proclamation No. 2146, entitled “Proclaiming Certain Areas
and Types of Projects as Environmentally Critical and Within
the Scope of the Environmental Impact Statement (EIS)
System established

138 AGRARIAN LAW AND SOCIAL LEGISLATION Sec. G5-A
under Presidential Decree No. 1586,” to ensure the protection of

river systems, aquifers and mangrove vegetations from pollution
and environmental degradation: Provided, further, That the
approval shall be in accordance with a set of guidelines to be
drawn up and promulgated by the DAR and the BFAR: Provided,
furthermore, That small-farmer cooperatives and organizations
shall be given preference in the award of the Fishpond Lease
Agreement (FLAs).
No conversion of more than five (5) hectares of private lands
to fishpond and prawn farms shall be allowed after the passage
of this Act, except when the use of the land is more economically
feasible and sound for fishpond and/or prawn farm, as certified
by the Bureau of Fisheries and Aquatic Resources (BFAR), and a
simple and absolute majority of the regular farm workers or
tenants agree to the conversion, the Department of Agrarian
Reform, may approve applications for change in the use of the
land: Provided, finally, That no piecemeal conversion to
circumvent the provisions of this Act shall be allowed. In these
cases where the change of use is approved, the provisions of
Section 32-A hereof on incentives shall apply.1,4
NOTES:
Conversion of public agricultural lands to fishponds
Public agricultural lands can be converted into fishponds and
prawn farms only when the coastal zone is declared suitable for
fishpond development by the provincial government and the Bureau of
Fisheries and Aquatic Resources.
If the condition is complied with, the Department of Environ-
ment and Natural Resources (DENR) can allow the lease and devel-
opment of the area.
Conversion of private agricultural lands to fishponds

Private agricultural lands can be converted into fishponds and
prawn farms up to a maximum area of five (5) hectares.
"‘Added by R.A. No. 7881.

Sec. 65-B CHAPTER 1 139
Exceptionally, the Department of Agrarian Reform may

approve the conversion of more than five (5) hectares of
agricultural land to fishponds and prawn under the
following conditions:
(a) when the use of the land is more economically
feasible and sound for fishpond and/or prawn farm, as
certified by the Bureau of Fisheries and Aquatic
Resources (BFAR); and
(b) a simple and absolute majority of the regular
farm workers or tenants agree to the conversion.
SECTION 65-B. Inventory. — Within one (1) year from the

effectivity of this Act, the BFAR shall undertake and finish an
inventory of all government and private fishponds and prawn
farms, and undertake a program to promote the sustainable
management and utilization of prawn farms and fishponds. No
lease under Section 65-A hereof may be granted until after the
completion of the said inventory.
The sustainable management and utilization of prawn
farms and fishponds shall be in accordance with the effluent
standards, pollution charges and other pollution control
measures such as, but not limited to, the quantity of fertilizers,
pesticides and other chemicals used, that may be established
by the Fertilizer and Pesticide Authority (FPA), the
Environmental Management Bureau (EMB), and other
appropriate government regulatory bodies, and existing
regulations governing water utilization, primarily Presidential
Decree No. 1067, entitled “A Decree Instituting A Water Code,
Thereby Revising and Consolidating the Laws Governing the
Ownership, Appropriation, Utilization, Exploitation,
Development, Conservation and Protection of Water
Resources.”175
NOTES:
Purpose of inventory
The inventory of all government and private fishponds and prawn
farms will help the Department of Agrarian Reform monitor
unauthorized conversions of lands into fishponds and prawn farms.
“Added by R.A. No. 7881.

140 AGRARIAN LAW AND SOCIAL LEGISLATION Secs. 65-C-66
SECTION 65-C. Protection of Mangrove Areas. — In existing

Fishpond Lease Agreements (FLAs) and those that will be issued after
the effectivity of this Act, a portion of the fishpond area fronting the sea,
sufficient to protect the environment, shall be established as a buffer
zone and be planted to specified mangrove species to be determined in
consultation with the regional office of the DENR. The Secretary of
Environment and Natural Resources shall provide the penalties for any
violation of this undertaking as well as the rules for its
implementation.176
NOTES:
The Import of the Provision

This provision is intended to harmonize agrarian reform
with the environmental laws.
SECTION 65-D. Change of Crops. — The change of crops to

commercial crops or high value crops shall not be considered as a
conversion in the use or nature of the land. The change in crop should
however, not prejudice the rights of tenants or leaseholders should
there be any and the consent of a simple and absolute majority of the
affected farm workers, if any, shall first be obtained.177
NOTES:
Change of crops does not need DAR approval

Considering that change of crops to commercial crops or
high value crops is not considered as a conversion in the use or
nature of the land, approval of the Department of Agrarian Reform
is not required.
SECTION 66. Exemptions from Taxes and Fees of Land Transfers. —

Transactions under this Act involving a transfer of ownership, whether
from natural or juridical persons, shall be exempted from taxes arising
from capital gains. These transactions shall also be exempted from the
payment of registration fees, and all other taxes and fees for the
'“Ibid.
■"Added by R.A
No. 7881.
conveyance or transfer thereof; Provided, That all arrearages in

real property taxes, without penalty or interest, shall be
deductible from the compensation to which the owner may be
entitled.
NOTES:
Lands transferred to beneficiaries exempted from taxes and fees
Deeds of transfer of ownership to agrarian reform beneficiaries,
whether voluntary transfer or compulsory acquisition are exempted
from capital gains tax, and other applicable taxes or fees.
SECTION 67. Free Registration of Patents and Titles. — All

Registers of Deeds are hereby directed to register, free from
payment of all fees and other charges, patents, titles and
documents required for the implementation of the CARP.
NOTES:
Exemption from registration fees
Lands acquired by agrarian reform beneficiaries and those
retained by the landowner are exempted from transfer fees, registration
fees, etc.
SECTION 68. Immunity of Government Agencies from

Undue Interference. — In cases falling within their jurisdiction,
no injunction, restraining order, prohibition or mandamus shall
be issued by the regional trial courts, municipal trial courts,
municipal circuit trial courts, and metropolitan trial courts
against the DAR, the DA, the DENR, and the Department of
Justice in their implementation of the Program.1’"
NOTES:
No injunction policy
The purpose of the law in prohibiting lower courts from issuing
injunction is to ensure the unhampered, speedy, and smooth imple-
mentation of the agrarian reform program.

178
SECTION 69. Assistance of Other Government Entities. — The

PARC, in the exercise of its functions, is hereby authorized to call
upon the assistance and support of other government agencies,
bureaus and offices, including government-owned or controlled
corporations.
NOTES:
Inter-Agency Cooperation
This provision emphasizes the utmost importance given by the
government to the agrarian reform program.
SECTION 70. Disposition, of Private Agricultural Lands. —

The sale or disposition of agricultural lands retained by a
landowner as a consequence of Section 6 hereof shall be valid
as long as the total landholdings that shall be owned by the
transferee thereof inclusive of the land to be acquired shall not
exceed the landholding ceiling provided for in this Act.
Any sale or disposition of agricultural lands after the

effectivity of this Act found to be contrary to the provisions
hereof shall be null and void.
Transferees of agricultural lands shall furnish the ap-
propriate Register of Deeds and the BARC an affidavit at-
testing that his total landholdings as a result of the said
acquisition do not exceed the landholding ceiling. The Register
of Deeds shall not register the transfer of any agricultural land
without the submission of this sworn statement together with
proof of service of a copy thereof to the BARC.
NOTES:
Affidavit of aggregate landholding — a requirement for
registration
Aside from the normal requirements for registration, the buyer
of an agricultural land is required, as a condition for registration of
title, to submit to the Register of Deeds an affidavit of aggregate
landholding (with confirmation from the Assessor’s Office) in order
to ensure that the landholding of the buyer does not exceed the 5-
hectare limit.
SECTION 71. Bank Mortgages. — Banks and other financial

institutions allowed by law to hold mortgage rights or security
interests in agricultural lands to secure loans and other obligations
of borrowers, may acquire title to these mortgaged properties,
regardless of area, subject to existing laws on compulsory transfer
of foreclosed assets and acquisition as prescribed under Section 13
of this Act.
NOTES:
When the bank or financial institution is deemed as the new

landowner
For purposes of covering the property under the agrarian reform
program, the bank or financial institution, as mortgagee, is considered as the
new landowner if before the deposit of just compensation:
(a) The bank or financial institution is the purchaser in the
foreclosure sale and the redemption period, as provided by law, has
already expired in cases where the right of redemption exists; or
(b) The bank or financial institution is the purchaser in the
foreclosure sale and said foreclosure sale is confirmed by the court in
cases where only equity of redemption is provided.'™
When the bank or financial institution is deemed as lien-holder

The bank or financial institution, as mortgagee, is considered a hen-
holder if on the date the land transfer claim was received by the Land Bank
from the Department of Agrarian Reform (DAR):
(a) The mortgage debt is not yet due and demandable; or
(b) The mortgage debt is already due and demandable but the
bank or financial institution has not foreclosed on the property; or
(c) The mortgage has already been foreclosed but the period
to exercise the right of redemption, in cases provided 179

144 AGRARIAN LAW AND SOCL4L LEGISLATION Set Z
bv law, has not yet expired; or the foreclosure sale has not yet
been confirmed by the court in cases where there is only
equity of redemption.'®
Rights and privileges of the bank or financial institution as new

landowner
As new landowner, the bank, financial institution, or other
concerned person is entitled to:
(a) Receive all notices, advices, correspondence, and
all other communications from the Department of Agrarian
Reform (DAR) or Land Bank (LB), such as, but not limited to,
Notice of Coverage, Notice of Land Valuation and
Acquisition, Letter-Requirement for Processing and
Payment of Claim, etc.:
(b) Transact with DAR or LB regarding all aspects of
subject land transfer claim, to the exclusion of all other
persons:
(c) Be named as the recipient of all cash and bond
deposits; and
(d) Receive all the proceeds of subject land transfer
claim, less deductions to which the land may be liable. 1"1
Rights and privileges of the bank or financial institution as lienholder

As lien-holder, the bank, financial institution, or other con-
cerned person is entitled to:
(a) Receive payment for the obligation of the
mortgagor from the land transfer proceeds up to an
amount equivalent to the landowner’s compensation value;
and
(b) Receive notices, advices, and all other
communications pertaining to the obligation of the
landowner-debtor, i.e., mortgagor.180 * 182
180Sec. 5, ibid.
t8lSec. 8, ibid.
lfl2Sec. 8, DAR Administrative Order No. 01-
00.
Obligations of the bank or financial institution as the new land-

owner
As new landowner, the bank or financial institution is obliged to:
(a) Comply with all the requirements for processing and

payment of the claim such as surrender of the Owner’s Duplicate
Copy of Title; and
(b) Sign all land transfer documents required as a con-
sequence of the processing and payment of the land transfer claim
such as: Deed of Assignment, Warranties and Undertaking, Deed of
Transfer, Deed of Confirmation of Coverage and Transfer, etc.183
Obligations of the bank or financial institution as lien-holder

As lien-holder, the bank or financial institution is obliged to:
(a) Issue a release of mortgage, or execute a deed of
redemption, and deliver the Owner’s Duplicate Copy of Title after
payment of the value of the lien; and
(b) Sign all other documents necessary to effect the
cancellation of the mortgage.184
SECTION 72. Lease, Management, Grower or Service Con-

tracts, Mortgages and Other Claims. — Lands covered by this Act
under lease, management, grower or service contracts, and the
like shall be disposed of as follows:
(a) Lease, management, grower or service contracts
covering private lands may continue under their original
terms and conditions until the expiration of the same even
if such land has, in the meantime, been transferred to
qualified beneficiaries.
(b) Mortgages and other claims registered with the
Register of Deeds shall be assumed by the government up to
an amount equivalent to the landowner’s compensation
value as provided in this Act.
1B3Sec
. 9,Ibi
184
ibid.
d.
NOTES:
The term of contractual arrangements will be respected
If at the time when the land was placed under agrarian reform
coverage, any contract of lease, management contract, grower or service
contracts, will be respected until their expiry, notwithstanding the fact that
the land has already been transferred to the beneficiaries.
Debts secured by mortgage on the land
If the land subject of agrarian reform coverage has been mortgaged,
the government will assume the obligation in an amount not exceeding what
the landowner would receive as just compensation for the land.
SECTION 73. Prohibited Acts and Omissions. — 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) Any conversion by any landowner of his/her
agricultural land into any non-agricultural use with intent
to avoid the application of this Act to his/her landholdings
and to dispossess his/her bonafide tenant farmers;
(d) The malicious and 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,
except after final completion of the appropriate
. 73 CHAPTER 1 147
conversion under Section 65 of Republic Act No. 6657, as amended.

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/she
acquired by virtue of being a beneficiary, in order to circumvent
the provisions of this Act;
(g) The unjustified, willful, and malicious act by a
responsible officer or officers of the government through the
following:
(1) The denial of notice and/or reply to landowners;
(2) The deprivation of retention rights;
(3) The undue or inordinate delay in the preparation
of claim folders; or
(4) Any undue delay, refusal or failure in the
payment of just compensation;
(h) The undue delay or unjustified failure of the DAR, the
LBP, the PARC, the PARCCOM, and any concerned government
agency or any government official or employee to submit the
required report, data and/or other official document involving the
implementation of the provisions of this Act, as required by the
parties or the government, including the House of Representatives
and the Senate of the Philippines as well as their respective
committees, and the congressional oversight committee created
herein;
(i) The undue delay in the compliance with the obligation
to certify or attest and/or falsification of the certification or
attestation as required under Section 7 of Republic Act No. 6657, as
amended; and
(j) Any other culpable neglect or willful violations of the
In the case of government officials and employees, a

conviction under this Act is without prejudice to any civil
case and/or appropriate administrative proceedings under
civil service law, rules and regulations.
Any person convicted under this Act shall not be
entitled to any benefit provided for in any agrarian reform
law or program.181
NOTES:
Criminal violations
The following are the criminal violations of the Comprehensive Agrarian
Reform Law:
(a) Ownership or possession of agricultural lands in excess of the
total retention limits or award ceilings, if done for the purpose of
circumventing the provisions of the Comprehensive Agrarian Reform Law;
(b) Forcible entry or illegal detainer by persons who are not
qualified beneficiaries under the Comprehensive Agrarian Reform Law, if
done to avail of the rights and benefits of the agrarian reform program;
(c) Conversion of agricultural land to non-agrieultural use, if
done with intent to avoid the application of the Comprehensive Agrarian
Reform Law to his landholdings and to dispossess his bonafide tenant
farmers;
(d) Malicious and willful prevention or obstruction of the
implementation of the CARP;
(e) 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 the Comprehensive Agrarian Reform Law, except after final
completion of the appropriate conversion under Section 65 of Republic Act
No. 6657, as amended;
(f) Sale, transfer or conveyance by a beneficiary of the right to
use or any other usufructuary right over the land he

185
Sec 73-A CHAPTER 1 149
acquired by virtue of being a beneficiary, if done to circumvent the

provisions of the Comprehensive Agrarian Reform Law;
(g) Unjustified, willful, and malicious act by a responsible
officer or officers of the government through the following:
(1) Denial of notice and/or reply to landowners;
(2) Deprivation of retention rights;
(3) Undue or inordinate delay in the preparation of
claim folders; or
(4) Undue delay, refusal or failure in the payment of
just compensation;
(h) Undue delay or unjustified failure by any concerned
government agency or any government official or employee to
submit the required report, data and/or other official document
involving the implementation of the provisions of the
Comprehensive Agrarian Reform Law, as required by the parties
or the government, including the House of Representatives and
the Senate of the Philippines as well as their respective
committees, and the congressional oversight committee created
herein;
(i) Undue delay in the compliance with the obligation to
certify or attest and/or falsification of the certification or
attestation as required under Section 7 of Republic Act No. 6657,
as amended; and
(j) Any other culpable neglect or willful violations of the
SECTION 73-A. Exception. — The provisions of Section 73,

paragraph (e), to the contrary notwithstanding, the sale and/or
transfer of agricultural land in cases where such sale, transfer
or conveyance is made necessary as a result of a bank’s
foreclosure of the mortgaged land is hereby permitted.11*
'"Added by R.A. No. 7881.

NOTES:
Sale resulting from foreclosure of mortgage not a criminal violation

The sale or transfer of a mortgaged agricultural land as a result of a
bank’s foreclosure is not a criminal violation of the Comprehensive Agrarian
Reform Law.
SECTION 74. Penalties. — Any person who knowingly or willfully

violates the provisions of this Act shall be punished by imprisonment
of not less than one (1) month to not more than three (3) years or a fine
of not less than One thousand pesos (PI,000.00) and not more than
Fifteen thousand pesos (P15,000.00), or both, at the discretion of the
court: Provided, That the following corresponding penalties shall be
imposed for the specific violations hereunder:
(a) Imprisonment of three (3) years and one (1) day to six
(6) years or a fine of not less than Fifty thousand pesos
(P50,000.00) and not more than One hundred fifty thousand pesos
(P150,000.00), or both, at the discretion of the court upon any
person who violates Section 73, subparagraphs (a), (b), (f), (g),
and (h) of Republic Act No. 6657, as amended; and
(b) Imprisonment of six (6) years and one (1) day to twelve
(12) years or a fine of not less than Two hundred thousand pesos
(P200,000.00) and not more than One million pesos
(PI,000,000.00), or both, at the discretion of the court upon any
person who violates Section 73, subparagraphs (c), (d), (e), and (i)
of Republic Act No. 6657, as amended.
If the offender is a corporation or association, the officer
responsible therefor shall be criminally liable.187
SECTION 75. Suppletory Application of Existing Legislation. —
The provisions of Republic Act No. 3844 as amended, Presidential
Decree Nos. 27 and 266 as amended, Executive Order Nos. 228 and 229,
both Series of 1987; and other laws not inconsistent with this Act shall
have suppletory effect.

187
THE COMPREHENSIVE AGRARIAN REFORM
LAW OF 1998
SECTION 76. Repealing Clause. — Section 35 of Republic
Act No. 3844, Presidential Decree No. 316, the last two
paragraphs of Section 12 of Presidential Decree No. 946,
Presidential Decree No. 1038, and all other laws, decrees,
executive orders, rules and regulations, issuances or parts
thereof inconsistent with this Act are hereby repealed or
amended accordingly.
SECTION 77. Separability Clause. — If, for any reason, any
section or provision of this Act is declared null and void, no
other section, provision, or part thereof shall be affected and
the same shall remain in full force and effect.
SECTION 78. Effectivity Clause. — This Act shall take
effect immediately after publication in at least two (2) national
newspapers of general circulation.
CHAPTER 2
THE TENANT EMANCIPATION LAW
PRESIDENTIAL DECREE NO. 27
[as amended by Executive Order No. 228]

The Tenant Emancipation Law supplements the Comprehen-
sive Agrarian Reform Law.1 It applies only to private agricultural
lands primarily devoted to rice and com under share tenancy or lease-
tenancy.
Transfer of lands 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.”2
Section 1 of Executive Order No. 228 further provides that:

“SECTION 1. All qualified farmer beneficiaries are now
deemed full owners as of October 21, 1972 of the land they acquired
by virtue of Presidential Decree No. 27 (hereinafter referred to as P.D.
No. 27).”3
The phrase “shall be deemed owner” or “are now deemed full

owners” does not mean automatic transfer of title or ownership
■Sec. 75, R.A. No.

6657.
2Emphasis supplied.
“Emphasis supplied.
152
CHAPTER 2 153
THE TENANT
EMANCIPATION LAW
of the land to the tenant or lessee. There has to be full payment of just
compensation before the landowner could be divested of his land, otherwise,
the land would be taken without just compensation in violation of the
constitutional injunction against taking of private property without just
compensation. Therefore, notwithstanding the phrase “shall be deemed owner,
” or “are now deemed full owners” the title and ownership over the land will be
transferred to the beneficiaries only upon full payment of the just
compensation to the landowner.
Size of land to be transferred to the tenant-farmer

The tenant-farmer is entitled to:
(a) five (5) hectares, if not irrigated; or
(b) three (3) hectares, if irrigated;
Stages of land transfer

The land transfer under Presidential Decree No. 27 is effected in two (2)
stages, namely:
(a) Issuance of a Certificate of Land Transfer (CLT) to the

farmer-beneficiary; and
(b) Issuance of Emancipation Patent (EP).4
Significance of the Certificate of Land Transfer (CLT)

The CLT does not vest upon the tenant-beneficiary ownership over the
land. It merely qualifies the tenant-beneficiary to possess the land and comply
with certain conditions preparatory to ownership. If the tenant-beneficiary
complies with the conditions, he is issued an Emancipation Patent.5
Significance of an Emancipation Patent (EP)

The EP vests upon the farmer-beneficiary absolute ownership over the
landholding, and it constitutes conclusive authority for the issuance of an
original or transfer certificate of title in his name.6
4Heirsof Dr. Jose Deleste v. Land Rank, 651 SCRA 352.

“Lcvardo v. Yatco, 582 SCRA 93; Vin/.ons-Magana v. Estrella, 201 SCRA 536.
“Maylem v. Ellano, 592 SCRA 440.
Indefeasibility of EPs
EPs are titles brought under the operation of the Torrens
System. Hence, they are conferred with the same indefeasibility
and security as provided for by Presidential Decree No. 1529, as
amended by Republic Act No. 6732. Emancipation patents become
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 under the
Comprehensive Agrarian Reform Law, the Property Registration
Decree, and other pertinent laws. This is provided for in Section
24 of the Comprehensive Agrarian Reform Law, the pertinent
portion of which reads as follows:
“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.”
Cancellation of EPs
Emancipation Patents may be cancelled on the following
grounds:
(a) Abandonment of the land;
(b) Neglect or misuse of land;7
(c) Failure to pay three (3) annual amortization;8
78ec. 22, Comprehensive Agrarian

Reform
"Sec. 26,Law.
ibid.
CHAPTER 2 155
THE TENANT
EMANCIPATION LAW
(d) Misuse or diversion of financial and support services;8
(e) Sale, transfer or conveyance of the right to use the land;10 and
(f) Illegal conversion of the land.11
Jurisdiction over cancellation of EPs
All cases involving the cancellation of registered emancipation patents are
within the exclusive and original jurisdiction of the Secretary of the Department of
Agrarian Reform.12
Tenant-beneficiary cannot sell or transfer ownership of the land

The tenant-beneficiary cannot sell or transfer ownership of the land acquired
under the Tenant Emancipation Law, except to the Government or by hereditary
succession. Presidential Decree No. 27 expressly provides 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.”
The tenant-farmer will pay the Land Bank

The farmer-beneficiary or his heirs will pay the Land Bank the total
costs of the land plus interest at the rate of six percent (6%) per annum
for twenty (20) years in twenty (20) equal annual amortizations. The
Emancipation Patent will be issued to the farmer-beneficiary after full
payment of the amortizations. Section 6 of Executive Order No. 228
provides that;
“SECTION 6. The total costs of the land including interest at the

rate of six percent (6%) per annum with a two percent (2%) rebate for
amortizations paid on time, shall be paid by the farmer-beneficiary or his
heirs to the Land Bank over a period of up to twenty (20) years in twenty
(20) equal annual amortizations. Lands already valued and financed by
the Land * 10 * 12
8 Sec. 37,
ibid.
10Sec. 73,
ibid.
"Sec. 73,
Sec. 24,
ibid.
12
ibid.
Bank are likewise extended a 20-year period of payment of twenty

(20) equal annual amortizations. However, the farmer- beneficiary if
he so elects, may pay in full before the twentieth year or may request
the Land Bank to structure a repayment period of less than twenty
(20) years if the amount to be financed and the corresponding annual
obligations are well within the farmer’s capacity to meet. Ownership
of lands acquired by the farmer-beneficiary may be transferred after
full payment of amortizations.”
Failure on the part of the farmer-beneficiary to pay three (3)

annual amortizations shall cause the Land Bank to foreclose the
mortgage.11
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.1*
If the tenant-farmer or any of his compulsory heirs does not
take steps to lift the foreclosure within the 2-year period,
ownership of the land will be transferred to the Land Bank. 13 * 15
Thereafter, the Land Bank, not later than three (3) months after its
acquisition of the land, shall sell the foreclosed land to any
interested landless farmer duly certified to as a bonafide landless
farmer by the Department of Agrarian Reform of the barangay or
the two closest barangays where the land is situated.16
Payment of just compensation to landowner

The just compensation is payable to the landowner through
any of the following modes, at the option of the landowner:
(a) Direct payment to the landowner by the farmer-
beneficiaries, in cash or in kind, on terms to be mutually
agreed upon by the beneficiaries and landowners and subject
to the approval of the Department of Agrarian Reform;
(b) Payment by the Land Bank with 10% payable in
cash immediately and the balance payable in the form of Land
13Sec. 8,
E.O.
'Sec.No.
10,
228.
"Ibid.
ibid.
16Sec. 11,
ibid.
CHAPTER 2 157
THE TENANT
EMANCIPATION LAW
Bank bonds over a 10-year period, with 1/10 of the face value maturing every
year until the 10th year; and
(c) Other modes of payment as may be prescribed or approved by the
Presidential Agrarian Reform Council.1’
Lease rentals paid to the landowner by the farmer beneficiary after
October 21, 1972 is considered as advance payment for the land.18
Retention right of landowner

Under Presidential Decree No. 27, the landowner is entitled to retain an
area of not more than seven (7) hectares, if he is cultivating or will cultivate it.
Thus:
“In all cases, 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.”
Personal cultivation by the landowner is not required — cultivation can be

done indirectly through labor administration.19
Retention right under Predidential Decree No. 27 vis-d-vis retention right

under the CARL
If the landowner has already exercised his right of retention under
Presidential Decree No. 27, he can no longer exercise the retention right under
Comprehensive Agrarian Reform Law. However, he can keep the 7-hectare
retention limit granted under Presidential Decree No. 27. 20
If the landowner chooses to retain five (5) hectares under Comprehensive
Agrarian Reform Law, the seven (7) hectares previously retained by him under
Presidential Decree No. 27 shall be immediately placed under the coverage of the
Comprehensive Agrarian Reform Law.21
"Sec. 3, E.O. No. 228.

'“See. 2, ibid.
■“Sec. 2 (b), DAR Administrative Order No. 05-00.
2“Sec. 6, Comprehensive Agrarian Reform Law, as amended.

Jurisdiction over retention or exemption issues

Issues pertaining to retention rights of the landowner and the
exclusion or exemption from agrarian reform coverage are cognizable by the
Secretary of the Department of Agrarian Reform because they pertain to
administrative implementation of agrarian law.22
22Sta. Ana v. Carpo, 572 SCRA 463; Magno v. Francisco, 616 SCRA 402.
CHAPTER 3
THE CODE OF AGRARIAN REFORMS

[as amended by Presidential Decree Nos. 251,444, 1039, and 1817,
Republic Act Nos. 6389, 6557, 7907, and 9700]
History of the Code of Agrarian Reforms

The Code of Agrarian Reforms was initially denominated as the Agricultural
Land Reform Code. Republic Act No. 6389 renamed it as the Code of Agrarian Reforms.
The Agricultural Land Reform Code was an administration bill submitted by

President Diosdado Macapagal for enactment by the 5th Congress of the Philippines. It
was signed into law on August 8, 1963.
Objective of the Code of Agrarian Reforms

The main objective of the Code of Agrarian Reforms is to create a system of
owner-cultivatorship and economic family-size farm as basis of Philippine agriculture.
Code of Agrarian Reforms vis-a-vis Comprehensive Agrarian Reform

Law
The Comprehensive Agrarian Reform Law did not repeal the Code of Agrarian
Reforms. The Code of Agrarian Reforms supplements the Comprehensive Agrarian
Reform Law.1
‘Sec. 75, R.A. No. 6657.
159
The salient features of the Code of Agrarian Reforms

The salient features of the Code of Agrarian Reforms are as
follows:
(a) It abolished the share tenancy system and replaced

it with agricultural leasehold;
(b) It established a bill of rights for agricultural
workers;
(c) It established the Department of Agrarian Reform
as the machinery for the acquisition and distribution of
agricultural land; and
(d) It established the Land Bank as the financial arm
of the agrarian reform program.
The Code of Agrarian Reforms abolished share tenancy

Share tenancy is a situation where 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. 2
In an agricultural leasehold, the farmer cultivates the land
belonging to, or possessed by, another with the latter’s consent for a
price certain in money or in produce or both.
The Code of Agrarian Reforms abolished share tenancy. All
share tenancy arrangements were automatically converted to lease-
hold.3
Extent of application of the leasehold principles under the

Code of Agrarian Reforms
With the enactment of the Comprehensive Agrarian Reform
Law which compulsorily acquired lands for distribution to farmer-
beneficiaries, leasehold relationship can exist under the following
situations:
(a) In case the area retained by the landowner is

tenanted;
2Sec. 166 (25), Code of Agrarian Reforms, as amended.

CHAPTER 3 161
THE CODE OF AGRARIAN
REFORMS
(b) In case the farmer-beneficiary leases the land awarded to
him to another person;
(c) In case the farmer-beneficiary leases the land awarded to
him back to the former owner of the land; or
(d) In case the land awarded to a farmer’s cooperative or
association is leased to agricultural corporations.
Under the present set-up, therefore, the agrarian reform beneficiaries
can become lessors of agricultural land. However, the leasehold principles
under the Code of Agrarian Reforms will apply only to situations where the
lessor is the landowner, to wit:
(a) farmers whose tenancy relations were automatically
converted to leasehold by virtue of the Code of Agrarian Reforms; and
(b) tenanted lands that were retained by the landowner, which
were automatically converted to leasehold by virtue of the
Comprehensive Agrarian Reform Law;
If the lessor is the farmer-beneficiary under the Comprehensive Agrarian
Reform Law, the leasehold relationship will be governed by the Lease Contract
and by the Comprehensive Agrarian Reform Law.
Form of lease contract

Considering that the conversion to leasehold was by operation of law, no
particular form is required to establish the leasehold relation. The lease
agreement can be oral or written.4 The lessor need not be the owner of the
land — he can be a usufructuary or a legal possessor such as civil law lessee.5
Should the parties agree to reduce their agreement in writing, the
agricultural leasehold contract shall be;
(a) drawn in quadruplicate in a language or dialect known to the
agricultural lessee;
(b) signed or thumb-marked both by the agricultural lessee
personally and by the agricultural lessor before two witnesses, to be
chosen by each party;
‘Sec. 5, ibid.
(c) acknowledged before the municipal court of the

municipality where the land is situated; and
(d) registered with the Municipal Treasurer.
If the agricultural lessee does not know how to read, the contents of the
document shall be read and explained to him by his witness."
The Municipal Treasurer is the custodian of agricultural lease
contracts. The said contracts are to be kept and recorded in the Registry of
Agricultural Leasehold Contracts.* 7
Terms and conditions of the lease contract

The agricultural lessor and the agricultural lessee are free to enter into
any kind of term, condition or stipulation in a leasehold contract, as long as
they are not contrary to law, morals or public policy.8
The following stipulations in an agricultural leasehold contract are
considered contrary to law, morals or public policy:
(a) Stipulation requiring the agricultural lessee to pay
excessive rental;
NOTE: • The rental for riceland and lands devoted to other

crops shall not be more than the equivalent of 25% of the
average normal harvest.
• If there have been no normal harvests, then rental
shall be the estimated normal harvest during the three (3)
agricultural years immediately preceding the date the leasehold
was established after deducting the amount used for seeds and
the cost of harvesting, threshing, loading, hauling and
processing, whichever are applicable.
• If the land has been cultivated for a period of less
than three (3) years, the initial rental shall be based on the
average normal harvest. If there have been no normal harvests,
then the rental shall be based:
(i) on the estimated normal harvest during the
preceding years when the land was actually cultivated; or
®Sec. 17, Code of Agrarian Reforms, as

amended.
7Sec. 18, ibid.
"Sec. 15. ibid.

CHAPTER 3 163
REFORMS
(ii) on the harvest of the first year in the case of newly
cultivated lands, if that harvest is normal harvests.
• The final consideration shall be based on the average
normal harvest during these three (3) preceding agricultural
years.4
(b) Stipulation requiring the agricultural lessee to pay an amount

in excess of the fair rental value for the use of the lessor’s (or any other
person’s) work animals or farm implements;
NOTE: The fair rental value for work animal or animals
and farm implements used to produce the crop shall not exceed
5% of the gross harvest for the work animal or animals and 5%
for implements.9 10
(c) Stipulation requiring the agricultural lessee to rent work
animals or to hire farm implements from the agricultural lessor or a
third person;
(d) Stipulation requiring the agricultural lessee to make use
of any store or services operated by the agricultural lessor or a third
person;
(e) Stipulation requiring the agricultural lessee to render any
service other than his duties and obligations as lessee, with or without
compensation; or
(f) Stipulation requiring the agricultural lessee to answer for
any fine, deductions and/or assessments.11
(g) Stipulation requiring the agricultural lessee to accept a
loan or to make payment therefor in kind.12
Mode of payment of rental

The rental may be paid by the agricultural lessee in money or in produce,
or both. If the rental is to be paid in produce, it should be paid immediately
after threshing or processing. If payment to be paid in money, it should be paid
within a reasonable time from threshing or processing.13
9Sec. 34,
ibid.
10 Sec. 166
(6), ibid.
"Sec. 15,
ibid.
l2Ibid.
13Sec. 33,
ibid.
Term of the lease
The term of the lease is indefinite, i.e., until the lease is ter-
minated for cause. The reason is because agricultural lessees- farmers are
entitled to security of tenure.14
Expiration of lease contract does not terminate the leasehold relation

Agricultural leasehold relationship is not an ordinary contractual
relation. Thus, the mere fact that the agreed lease period has expired will not
result in the termination of the leasehold relationship. The reason is because
agricultural lessees are entitled to security of tenure. Section 10 of the Code of
Agrarian Reforms provides:
“SECTION 10. Agricultural Leasehold Relation Not

Extinguished by Expiration of Period, etc. — The agricultural
leasehold relation under this Code shall not be extinguished by mere
expiration of the term or period in a leasehold contract nor by the sale,
alienation or transfer of the legal possession of the landholding. In case the
agricultural lessor sells, alienates or 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.”
Neither will the expiration of the lease contract authorize the

landowner to increase the rentals, unless the landowner introduces
capital improvements to increase its productivity, in which case, the
rental may be increased proportionately to the consequent increase in
production due to said improvements.15
Transfer of ownership of the land does not terminate the leasehold

relation
If the landowner-lessor sells or transfers ownership of the land, the
leasehold relationship is not extinguished. The buyer or transferee
becomes the lessor.15 * 16
14Sec.
7, ibid.
16Secs.16
and 34, ibid.
CHAPTER 3 165
Death or physical incapacity of the lessee does not terminate the

leasehold relation
If the lessee dies or becomes incapacitated, the leasehold relations is not
extinguished. The lessor must choose the successor from among the
following, if they are willing to personally cultivate the landholding:
(a) the surviving spouse;
(b) the eldest direct descendant by consanguinity; or
(c) the next eldest descendant or descendants in the order of
their age.
If none of the above exists, or if the above persons are not willing to
cultivate the land, the leasehold relations is extinguished. Section 9 of the
Code of Agrarian Reforms, as amended, provides:
“SECTION 9. Agricultural Leasehold Relation Not Extin-
guished by Death or Incapacity of the Parties. — In case of death or
permanent incapacity of the agricultural lessee to work his landholding, the
leasehold shall continue between the agricultural lessor and the person who
can cultivate the landholding personally, chosen by the agricultural lessor
within one month from such death or permanent incapacity, from among the
following: (a) the surviving spouse; (b) the eldest direct descendant by
consanguinity; or (c) the next eldest descendant or descendants in the order of
their age: Provided, That in case the death or permanent incapacity of the
agricultural lessee occurs during the agricultural year, such choice shall be
exercised at the end of that agricultural year: Provided, further, That in the
event the agricultural lessor fails to exercise his choice within the periods
herein provided, the priority shall be in accordance with the order herein
established.
In case of death or permanent incapacity of the agricultural lessor,
the leasehold shall bind his legal heirs.”
When the agricultural leasehold is extinguished

The agricultural leasehold established under Code of Agrarian
Reforms is extinguished by:
fa) Abandonment of the landholding without the knowledge of
the agricultural lessor;
(b) Voluntary surrender of the landholding by the agricultural
lessee; or
(c) Absence of the persons under Section nine to succeed to the

lessee, in the event of death or permanent incapacity of the lessee .17
Abandonment of the Landholding

To constitute abandonment, two (2) essential elements must concur,
namely:
(a) There must be intent to abandon; and
(b) There must be actual act of abandonment, i.e., the lessee must
actually stop occupying and working on the land for a substantial period of
time.
Voluntary Surrender of the Landholding

To constitute a ground for extinguishment of the lease:
(a) The surrender of the landholding must be voluntary on the part
of the farmer-lessee, i.e., the decision to relinquish the leasehold relations
must not be influenced by any compelling factor from the landowner; and
(b) The farmer lessee must serve three (3) months advance notice.
Termination of leasehold by agricultural lessee

The agricultural lessee may terminate the leasehold for any of the
following causes:
(a) Cruel, inhumane or offensive, treatment of the agricultural
lessee or any member of his immediate farm household by the agricultural
lessor;
(b) N on-compliance on the part of the agricultural lessor with any
of his obligations under the Code of Agrarian Reforms or under the lease
contact;
(c) Compulsion of the agricultural lessee or any member of his
immediate farm household by the agricultural lessor to render any service
not in any way connected with farm work, or even without compulsion if no
compensation is paid;
"Sec. 8, Code of Agrarian Reforms, as amended.

CHAPTER 3 167
(d) Commission of a crime by the agricultural lessor or his

representative against the agricultural lessee or any member of his
immediate farm household; or
(el Voluntary surrender due to circumstances more
advantageous to him and his family.18
Dispossession
The lessee may be dispossessed of the landholding on the
following grounds:
(a) The land has been declared by the appropriate gov-
ernment agency to be suited for residential, commercial, industrial
or some other urban purposes (Under this situation, the
agricultural lessee shall be entitled to disturbance compensation
equivalent to five times the average of the gross harvests on his
landholding during the last five preceding calendar years!;
(b) Failure of the agricultural lessee to substantially
comply with any of the terms and conditions ofthe lease contract or
any of the provisions of the Code of Agrarian Reforms;
(c) The agricultural lessee planted crops or used the
landholding for a purpose other than what had been previously
agreed upon;
(d| The agricultural lessee failed to adopt proven farm
practices as determined under paragraph 3, Section 29 of the Code
of Agrarian Reforms;
(e) The land or other substantial permanent improvement
thereon is substantially damaged or destroyed or has unreasonably
deteriorated through the fault or negligence of the agricultural
lessee;
(f) The agricultural lessee does not pay the lease rental
when it falls due.
(g) The lessee employed a sub-lessee on his landholding.18
The dispossession on the above-mentioned grounds is not automatic.
The landowner-lessor should file the corresponding petition * 19
1HSec. 28, Code of Agrarian Reforms, as

amended.
19Sec. 36, ibid.
with the DAR Adjudication Board and prove the existence of the grounds for
dispossession.20
Obligations of the agricultural lessor

The agricultural lessor is obliged to:
(a) Keep the agricultural lessee in peaceful possession and
cultivation of his landholding; and
tb) Keep intact such permanent useful improvements existing on

the landholding at the start of the leasehold relation.21
These obligations are “intended to protect the interest of the

agricultural lessee against harassment by the agricultural lessor. Moreover,
permanent useful improvements are generally considered as an important
part of the consideration of the leasehold contract and to remove or destroy
them would be a substantial violation thereof.”22
Obligations of the agricultural lessee

The agricultural lessee is obliged to:
(1) Cultivate and take care of the farm, growing crops, and
other improvements on the landholding as a good father of a family
and perform all the work therein in accordance with proven farm
practices;
(2) Inform the agricultural lessor within a reasonable time of

any trespass committed by third persons upon the farm, without
prejudice to his direct action against the trespasser;
t3) Take reasonable care of the work animals and farm

implements delivered to him by the agricultural lessor and see that
they are not used for purposes other than those intended;
(4) Keep his farm and growing crops attended to during the
work season. In case of unjustified abandonment or neglect of his
farm, any or all of his expected produce may, upon order of the Court,
be forfeited in favor of the agricultural lessor to the extent of the
damage caused thereby;
“Secs. 36 and 37, ibid.

=‘Sec. 30, ibid.
“Montemayor, Labor, Agrarian and Social Legislation, vol. 3, p. 284,
2nd *
CHAPTER 3 169
REFORMS
(5) Notify the agricultural lessor at least three days before the
date of harvesting or, whenever applicable, of threshing; and
(6) Pay the lease rental to the agricultural lessor when it falls
due.23
Destroying any improvement on the landholding is a violation of the
agricultural lessee’s obligation to take care of the farm, crops and other
improvements on the landholding with the diligence of a good father of a
family. As held in the case of Guevarra v. Santos, G.R. No. L-19716, November
23, 1966:
“There is ample evidence showing that Herminigildo

Guevarra and Apolonio Javinia caused the death of twenty eight
(28) and six (6) coconut trees, respectively, in their holdings. In
the case of Guevarra, twenty-eight (8) trees were destroyed when
hay was heaped at the base of the coconut trees and burned, and
in the case of Apolonio Javinia, he failed to exercise caution in
plowing his holding to prevent serious damage to the coconut
trees. As lessee-tenants defendants Herminigildo Guevarra and
Apolonio Javinia are obliged to exercise the diligence of a good
father of a family to preserve the improvements existing in their
holdings. Herminigildo Guevarra while denying that he actually
burned the hay heaped at the base of twenty eight (281 trees,
admitted that at the time the hay was burned he was away from
his holding. He may not have had any hand in the burning of the
hay but certainly he should be made accountable for depositing
hay at the base of the trees, an act which would not be done by a
reasonably careful father of a family. It does not require great
intelligence to perceive that hay is highly and unpredictably
inflammable and if heaped at the base of young coconut tress
could cause total destruction of the trees.
On the part of Apolonio Javinia, knowing that young coconut
trees were growing in his holding, he plowed too closely to the six
(6) tress causing their death. As a fanner of long standing he
should have known that by plowing too close to the base of the
trees his plow would inevitably cut the trees’ roots. He, therefore,
failed to exercise sufficient caution in his plowing.”
23Sec. 26, supra.

Rights of the agricultural lessor

The following are the rights of an agricultural lessor:
(a) To inspect and observe the extent of compliance with the
terms and conditions of the lease contract;
(b) To propose a change in the use of the landholding to other

agricultural purposes, or in the kind of crops to be planted;
(c) To require the agricultural lessee to adopt in his farm

proven farm practices necessary to the conservation of the land,
improvement of its fertility and increase of its productivity; and
(d) To mortgage expected rentals.21

The agricultural lessor can exercise the aforementioned rights as long
as it does not interfere with the lessee’s peaceful possession of the landholding.
Rights of agricultural lessee

The following are the rights of an agricultural lessee:
(a) To have possession and peaceful enjoyment of the
land;
Cb) To manage and work on the land in a manner and method of
cultivation and harvest which conform to proven farm practices;
(c) To mechanize all or any phase of his farm work; and

(d) To deal with millers and processors and attend to the
issuance of quedans and warehouse receipts for the produce due him.24
25
(e) To have a homelot within the land that he is leasing.35
Right of lessee to be indemnified for his labor

If the agricultural lessee surrenders, abandons or is validly ejected
from his landholding, he is entitled to be indemnified for:
24Sec. 29,
Code of
Agrarian
“Sec. 24. ibid.
Reforms, as
amended.
“Sec. 23,
ibid.
CHAPTER 3 171
(a) the cost and expenses incurred in the cultivation, planting

or harvesting and other expenses incidental to the improvement of his
crop; and
(b) for one-half of the necessary and useful improvements made
by him on the landholding which are tangible and have not yet lost
their utility at the time of surrender and/or abandonment of the
landholding.21
Right of pre-emption
The agricultural lessee has the preferential right to buy the land
actually cultivated by him under reasonable terms and conditions.
Therefore, if the agricultural lessor decides to sell the landholding,
he should give notice to:
(a) the Department of Agrarian Reform; and
(b) all the lessees affected.
If the agricultural lessee agrees with the terms and conditions of the
sale, he must give written notice to the agricultural lessor of his intention
to exercise his right of pre-emption, and thereafter tender payment of, or
present a guarantee certificate from the Land Bank to the agricultural
lessor. If the lessor refuses to accept such tender or presentment, he may
consign it with the court.
Any dispute as to the reasonableness of the terms and conditions may
be brought by the lessee or by the Department of Agrarian Reform to the
proper court. Section 11 of the Code of Agrarian Reforms, as amended,
provides:
“SECTION 11. Lessee’s Right of Pre-Emption. — In case the agricultural

lessor decides to sell the landholding, the agricultural lessee shall have the
preferential right to buy the same under reasonable terms and conditions:
Provided, That the entire landholding offered for sale must be pre-empted by
the Department of Agrarian Reform upon petition of the lessee or any of them:
Provided, further, That where there are two or more agricultural lessees, each
shall be entitled to said preferential right only to the extent of the area actually
cultivated by him. The right of pre-emption under this Section may be

exercised within one hundred eighty days from notice in writing, which
shall be served by the owner on all lessees affected and the Department
of .Agrarian Reform.
If the agricultural lessee agrees with the terms and conditions of
the sale, he must give notice in writing to the agricultural lessor of his
intention to exercise his right of preemption within the balance of one
hundred eighty day's period still available to him. but in any case not
less than thirty days. He must either tender payment of. or present a
certificate from the Land Bank that it shall make payment pursuant to
section eighty of this Code on. the price of the landholding to the
agricultural lessor. If the latter refuses to accept such tender or
presentment, he may consign it with the court.
Any dispute as to the 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 which
shall decide the same within sixty days from the date of the filing
thereof: Provided, That upon finality of the decision of the Court of
Agrarian Relations, the Land Bank shall pay to the agricultural lessor
the price fixed by the court within one hundred twenty days:
Provided, further, That in case the Land Bank fails to pay within
that period, the principal shall earn an interest equivalent to the
prime bank rate existing at the time.
Upon the filing of the corresponding petition or request with
the department or corresponding case in court by the agricultural
lessee or lessees, the said period of one hundred and eighty days shall
cease to run.
Any petition or request for pre-emption shall be resolved within
sixty days from the filing thereof; otherwise, the said period shall
start to run again.”
The Register of Deeds will not register or issue a Transfer Certificate

of Title without a sworn statement from the vendor (landowner) that he has
given the required notice to the lessee or that the land is not covered by an
agricultural lease.28 This is provided for in Section 13 of the Code of Agrarian
Reforms, which reads as follows:
“SECTION 13. Affidavit Required in Sale of Land Subject to

Right of Pre emption. — No deed of sale of agricultural land under
cultivation by an agricultural lessee or lessees shall be

CHAPTER 3 173
recorded in the Registry of Property unless accompanied by an

affidavit of the vendor that he has given the written notice required
in Section eleven of this Chapter or that the land is not worked by
an agricultural lessee.”
Right of redemption
If the land was 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 to the extent of the area actually cultivated
by him, by filing a petition or request for redemption with the Department of
Agrarian Reform within one hundred eighty (180) days from knowledge of the
sale.
The redemption price shall be the reasonable price of the land at the time
of the sale. The Department of Agrarian Reform shall initiate, while the Land
Bank shall finance, said redemption. Section 12 of the Code of Agrarian Reforms
as amended provides:
“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 where there 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 the
redemption under this Section may be exercised within one
hundred eighty days from notice in writing which shall be
served by the vendee on all lessees affected and the
Department of Agrarian Reform upon the registration of the
sale, and shall have priority over any other right of legal
redemption. The redemption price shall be the reasonable
price of the land at the time of the sale.
Upon the filing of the corresponding petition or request
with the department or corresponding case in court by the
agricultural lessee or lessees, the said period of one hundred
and eighty days shall cease to run.
Any petition or request for redemption shall be resolved
within sixty days from the filing thereof; otherwise, the said
period shall start to run again.
The Department of Agrarian Reform shall initiate, while
the Land Bank shall finance, said redemption as in the case of
pre-emption.”
X
MiTT*~ .......... .............................. ____________________________________________________________________________________
Rights of agricultural workers

Agricultural workers are entitled to the same rights and opportunities
in life as industrial workers, hence, they are entitled to the following rights:
(a) Right to self-organization;
(b) Right to engage in concerted activities;
(c) Right to minimum wage;
(d) Right to work for not more than eight hours;

(e) Right to compensation for personal injuries,
death or illness; and
(0 Right to security of tenure.®
Acts which the agricultural lessor is forbidden to do

The agricultural lessor is forbidden to do the following acts:
(a) To dispossess the agricultural lessee of his landholding
without just cause;
(b) To require the agricultural lessee to assume, directly or
indirectly, the payment of the taxes or part thereof levied by the
government on the landholding;
(c) To require the agricultural lessee to assume, directly or
indirectly, any part of the rent, “canon” or other consideration which
the agricultural lessor is under obligation to pay to third persons for
the use of the land;
(d) To deal with millers or processors without written
authorization of the lessee in cases where the crop has to be sold in
processed form before payment of the rental; or
(e) To discourage, directly or indirectly, the formation,
maintenance or growth of unions or organizations of agricultural
lessees in his landholding, or to initiate, dominate, assist or interfere
in the formation or administration of any such union or organization.30
zsSec. 39, Code of Agrarian Reforms, as amended. “Sec. 31, ibid.

CHAPTER 3 175
THE CODE OK AGRARIAN
REFORMS
Acts which the agricultural lessee is forbidden to do
The agricultural lessee is forbidden to do the following acts:
(a> To work additional landholdings belonging to a different
agricultural lessor; and
(b) To employ a sub-lessee on his landholding.51
The purpose of the prohibition is to prevent the agricultural lessee from
dissipating his labor and efforts in various landholdings at the expense of the
first agricultural lessor. Agricultural leasehold is personal in character in
the sense that the agricultural lessee must personally work and cultivate the
landholding.55
Enforceability of loans obtained by an agricultural lessee
To be enforceable, loans obtained by an agricultural lessee should be:
(a) written in a language or dialect known to the agricultural
lessee; and
(b) signed or thumb-marked by the agricultural lessee or by his
agent.31 * 33 *
Properties of the lessee that are exempt from liens or execution
The following properties of the agricultural lessees cannot be the subject
of lien or execution:
(a) 25% of the entire produce of the land under cultivation; and
(b) Work animals and farm implements, except upon a
judgment for its price or upon a judgment of foreclosure of a mortgage
thereon."
The exemption cannot be waived for the reason that it is intended to
provide sustenance for the lessee and his family from one harvest to the next.
As held by the Supreme Court in Maniego v. Castelo, G.R. No. L-9855, April
29,1957:
31 Sec. 27, ibid.
“Montemayor, Labor, Agrarian and Social Legislation, vol. 3, p. 278, 2nd ed.
“Sec. 20, supra.
“Sec. 21, Code of Agrarian Reforms, as amended.
17(J AGRARIAN LAW AND SOCIAL LEGISLATION
“Being designed to provide sustenance for the tenant and his

family from one harvest to the next, a waiver of the exemption could
amount to a waiver of the tenant’s right to live. Any such renunciation
would therefore be against public policy, and hence null and void even
without specific statutory provision. The case comes under the rule of
Art. 6 of the New Civil Code, x x x
The Tenancy Act is a remedial legislation intended to better the
lot of the sharecropper by giving him a more equitable participation in
the produce of the land which he cultivates. Being a remedial statute it
should be construed so as to further its purpose in accordance with the
general intent of the lawmaker. Adopting the construction placed upon
it by the petitioner would open the door to evasions and render the law
useless” (Sibulo v. Altar, 83 Phil., 513, 46 Off. Gaz., 5502).
The Sheriffs levy on the exempt portion being illegal, the sale
thereof was likewise unlawful and unenforceable. The petitioner could
not plead ignorance of the inclusion of the exempted portion in the levy
and sale, he being the landlord on whose land the palay was harvested.”
Prescription of action
The prescriptive period for filing an action to enforce the rights
and obligations under the Code of Agrarian Reforms is three (3)
years reckoned from the time the cause of action accrued.35
The Department of Agrarian Reform
The Agricultural Land Reform Code created the Land

Authority as the implementing arm of the implementing arm of the
agrarian reform program. The Code of Agrarian Reforms re-named
the Land Authority as the Department of Agrarian Reform. As the
implementing arm of the agrarian reform program, the Department
of Agrarian Reform is tasked with the following functions:
fa) Implement laws, programs and policies for the ac-
quisition and distribution of all agricultural lands as provided
by laws;
(b) Resettle landless farmers and farm workers in gov-
ernment-owned agricultural estates which shall be distributed
to them as provided by law;
35Scc. 38. ibid.

CHAPTER 3 177
(c) Recommend and provide incentives for voluntary sharing of

lands by owners of agricultural lands;
(d) Acquire, determine the value, subdivide into family- size
farms, develop and distribute to qualified tillers, actual occupants and
displaced urban poor, private agricultural lands regardless of area and
crops planted;
(e) Administer and dispose of, under a settlement scheme, all
portions of the public domain declared as alienable and disposable lands
for speedy distribution to and development by deserving and qualified
persons who do not own any land and under such terms and conditions
as the Department may prescribe, giving priority to qualified and
deserving farmers in the province where such lands are located;
(f) Provide free legal assistance to farmers covered by agrarian
reform and expedite the resolution of agrarian conflicts and land tenure
problems either through conciliatory or adversary proceedings;
(g) Provide creative, responsive and effective information,
education and communication programs and projects both for the tenant
beneficiaries, landowners, the government and private sectors and the
general public, thereby generating a broad spectrum of support and
understanding of the new agrarian reform program;
(h) Strengthen agr arian reform beneficiaries organizations to a
degree of national viability that would enable them to share in the
shaping of government policies and institutionalize farmers’
participation in agrarian reform policy formulation, program
implementation and evaluation;
(i) Promote the organization and development of cooperatives of
agrarian reform beneficiaries and register the same;
(j) Implement all agrarian reform laws and for this purpose issue
subpoena, subpoena duces tecum, and writs of execution of its orders, and
decisions and other legal processes to ensure compliance from all parties
concerned for successful and expeditious program implementation;
(k) Undertake land surveys on lands covered by agrarian
reform, and issue patents to farmers covered by agrarian reform, both
on private and public lands;
(l) Develop, implement and undertake alternative and

innovative land development schemes and land tenure systems
such as, but not limited to land consolidation, land forming,
cooperative farming and agro-industrial estates;
(m) Approve or disapprove conversion of agricultural
lands to non-agricultural uses such as residential and industrial
conversions in accordance with the existing provisions of law;
(n) Undertake land use management studies;
(o) Compensate the landowners covered by agrarian
reform;
(p) Integrate and synchronize program implementation
of the Land Bank of the Philippines and other relevant civilian
and military government and private entities involved and
mandated to support the agrarian reform program through Inter-
Agency Committees and Agrarian Reform Coordinating Councils;
and
(q) Perform such other functions as may be provided by
law.*
The Land Bank

The Land Bank which was created by the Code of Agrarian Reforms
is the financial arm of the agrarian reform program. It is vested with the
following powers:
(a) To prescribe, repeal and alter its own by-laws to
determine its operating policies, and to issue such rules and
regulations as may be necessary;
(b) To adopt, alter and use a corporate seal;
(c) To hold, purchase, acquire and own real and personal
property, introduce necessary improvements thereon to enhance and
develop their social and economic values, and to sell, mortgage or
otherwise dispose of the same;
(d) To sue and be sued, make contracts, negotiate and secure
loans from both local and foreign sources. Before undertaking any
such credit operation, the Bank, through the Secretary of Finance,
shall request the opinion, in writing, 36
36Sec. 3, Title XI, Administrative Code of 1987.

CHAPTER 3 179
REFORMS
of the Monetary Board on the monetary implications of the contemplated
action. All loans from foreign sources shall be subject to approval by the
President of the Philippines and shall be fully guaranteed by the
Philippine Government;
(e) To grant short, medium and long term loans and advances
against security of real estate and/or other acceptable assets for the
establishment, development or expansion of agricultural, industrial, home
building or home financing projects and other productive enterprises;
(0 To grant loans to farmers’ cooperatives/associations to facilitate
production, marketing of crops and acquisition of essential commodities;
(g) To finance and/or guarantee the acquisition, under
Presidential Decree No. 85 dated December 25, 1972, of farm lots
transferred to tenant-farmers pursuant to Presidential Decree No. 27
dated October 21, 1972;
(h) To underwrite, hold, own, purchase, acquire, sell, mortgage,
dispose or otherwise invest or reinvest in stocks, bonds, debentures,
securities and other evidence of indebtedness of other corporations and of
the government or its instrumentalities which are issued for or in
connection with any project or enterprise;
(i) The provision of any law to the contrary notwithstanding, to
guarantee acceptance(s), credits, loans, transactions or obligations of any
person, co-partnership, association or corporation in favor of any financing
or banking institution, whether foreign or domestic: Provided, That the
proceeds of such acceptances, credits, loans, transactions or obligations are
utilized or earmarked for the development and/or expansion of agriculture
and industry;
(j) To borrow from, or rediscount notes, bills of exchange and
other commercial papers with, the Central Bank. The rate of interest to be
charged and the conditions on such obligations or borrowings shall be subject
to the rules and regulations of the Monetary Board;
(k) To act as trustee, or administer any trust or hold property in
trust in accordance with the provisions of law governing trust corporations;
and
(l) To act as an official government depository with full

authority to maintain deposits of the government, its branches,
subdivisions and instrumentalities, and of government-owned or -
controlled corporations which deposits shall be subject to liquidity
floor and/or reserve requirements as may be imposed by the
Monetary Board upon other commercial banks;
(m) For the strengthening of the capital base of the bank,
to establish a national marketing umbrella for farmers and
fisheries cooperatives to attract massive capital formation from
savings deposits of the cooperative members nationwide;
(n) To exercise the general powers mentioned in the
Corporation Law and the General Banking Act, as amended,
insofar as they are not inconsistent or incompatible with this
Decree.37
Sec. 75, Code of Agrarian Reforms, as amended.

37
CHAPTER 4
DOMESTIC WORKERS ACT
[BATAS KASAMBAHAY]

The Domestic Workers Act applies only to domestic
workers working within the Philippines.1
Meaning of Domestic Worker

Domestic worker or “Kasambahay” is a person
engaged to work for a household within an employment
relationship.
Examples are: general househelp, nursemaid, cook,
gardener, or laundry person.
To be considered as domestic worker, one should be
hired specifically to perform household work. In the
absence of specific engagement, one cannot be
considered as a domestic worker.
Persons who perform domestic work occasionally
and not on an occupational basis are not considered as
domestic workers. Thus, children who are under foster
family arrangement and are provided access to
education and given an allowance incidental to
education, i.e., “boon* transportation, school projects
and school activities, are not considered domestic
workers.2
Children or relatives of the domestic worker who
live under the employer’s roof and share the same
accommodations
‘ provided for the domestic worker
cannot be considered
S as domestic workers if
e
c
. 181
3
,
D
o
m
e
1S2 AGRARIAN' LAW AND SOCL^L LEGISLATION
they were not engaged as such and are not required to perform
substantial household work.
APEX MINING CO. V. NLRC

196 SCRA 251
FACTS: SC was engaged by Apex Mining to perform laundry
sendee at its staffhouse. While she was attending to her assigned task,
she accidentally slipped and hit her back on a stone. As a result of the
accident, she was not able to continue with her work. She was then
permitted to go on leave for medication. Thereafter, she was not
allowed to return to work. SC then filed a complaint for illegal
dismissal against Apex Mining, The main defense interposed by Apex
Mining is that SC was not a regular employee but a domestic worker.
HELD: SC is not a domestic worker but a regular employee of
Apex Mining. While it is true that the nature of work performed by SC
as laundrywoman in the staffhouse is similar to the work of a domestic
worker, still she could not be classified as a domestic worker because
she was not working for a family but for a corporation. The mere fact
that SC worked within the premises of Apex Mining, as in its
staffhouses for its guests or even for its officers and employees is an
indication that SC is a regular employee and not a mere domestic
worker.
BARCENAS V. NLRC
187 SCRA 498
FACTS: B was hired by the Manila Buddhist Temple as
secretary and interpreter. B’s position required her to receive and
assist Chinese visitors to the temple, act as tourist guide for foreign
Chinese visitors, attend to the callers of the Head Monk as well as to
the food for the temple visitors, run errands for the Head Monk such
as paying Meralco, PLDT, MWSS bills, and act as liaison in some
government offices. After the death of the Head Monk, B’s monthly
allowance was discontinued and she was forcibly evicted from her
quarters in the temple. In a complaint for illegal dismissal filed by B,
the Manila Buddhist Temple claimed that B was not its employee but
a domestic worker who confined herself to the personal needs of the
Head Monk, and therefore her position was coterminous with that of
her master.
HELD: B is not a domestic worker but a regular employee of
the Temple. The work of B cannot be categorized as mere domestic
work but were essential and important to the operation and
religious functions of the temple.
CHAPTER 4 183
DOMESTIC WORKERS ACT (BATAS KASAMBAHAY)
Minimum age for employment of domestic workers

The minimum age for employment of domestic workers is fifteen (15)
years old. It is unlawful to employ any person below fifteen (15) years of age
as a domestic worker.3
Hiring of domestic workers

Domestic workers can be hired directly or through a private
employment agency. If a private employment agency recruits domestic
workers, it should require the domestic worker to submit the following
documents:
(a) Medical or a health certificate issued by a local government
health officer;
(b) Barangay and police clearance;
(c) National Bureau of Investigation (NBI) clearance; and
(d) 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.
Employers who directly hire the domestic worker may also require
the submission of the above-mentioned documents.
The cost of the foregoing documents shall be borne by the prospective
employer or agency, as the case may be.4 *
Recruitment of domestic workers by private employment agencies

Employment agencies that recruit domestic workers must obtain a
license and authority to recruit from the Regional Office of the DOLE
having jurisdiction over the place where the recruitment activities will be
undertaken.6
Employment agencies can engage in recruitment activities only
through their representatives who are:
(a) duly authorized to recruit; and
3Sec. 16, Domestic Workers Act.

4Sec. 12, ibid.
6Sec. 15, Rule III, Rules Governing Private Recruitment and Placement Agency
or Local Employment.
(b) registered with the Regional Office of the DOLE.*

A duly notarized recruitment contract should be executed between
the employment agency and the recruit.
Thereafter, the employment agency should submit to the DOLE
Regional Office where recruitment was undertaken (copy furnished the
DOLE Regional Office of destination):
(a) the names of the recruits;
(b) addresses;
(c) birth certificates;
(d) medical certificates; and
(e)recruitment contract.
The employment agency should provide the recruit with a stamped
envelope (which the recruit will send to his parent) containing the
following:
(a) name and address of recruit; and
(b) name, address, telephone number of his employer.7
Liability of private employment agencies

Private employment agencies are jointly and severally liable with
the employer for all the wages, and other benefits due a domestic
worker.8
Responsibility of private employment agencies

The responsibilities of private employment agencies are the following:
(a) Ensure that domestic workers are not charged or levied
any recruitment or placement fees;
(b) Ensure that the employment agreement between the
domestic worker and the employer stipulates the terms and
conditions of employment and all the benefits prescribed by the
Domestic Workers Act; 6
6Sec. 18, Rule III, Rules Governing Private
Recruitment and Placement Agency for Local Employment.

’Sec. 20, ibid.
BSec. 36, Domestic Workers Act.
CHAPTER 4 185
(c) Provide pre-employment orientation briefing to the domestic

worker and the employer about their rights and responsibilities under
the Domestic Workers Act;
(d) Keep copies of employment contracts and agreements
pertaining to recruited domestic workers which shall be made
available during inspections or whenever required by the
Department of Labor and Employment (DOLE) or local
government officials;
(e) Assist domestic workers with respect to complaints
or grievances against their employers; and
(f) Cooperate with government agencies in rescue
operations involving abused or exploited domestic workers. 8
Recruitment and Finder’s Fees

Regardless of whether the domestic worker was hired through a private
employment agency or a third party, no share in the recruitment or finder’s fees
shall be charged against the domestic worker by the said private employment
agency or third party.10
Employment Contract
Whether the domestic worker was hired directly or through an employment
agency, the employer and the domestic worker must execute an employment
contract before the commencement of the service. The contract must be written in
a language or dialect understood by both the domestic worker and the employer.
The domestic worker should be given a copy of the employment contract.11
Basic contents of the employment contract
The contract of domestic work should contain the following
stipulations:
(a) Duties and responsibilities of the domestic worker;
(b) Period of employment;
(c) Compensation;
•Sec. 30. OmnesUe Workers

Act. '“Sec. 13. i bi d.
"Sec. It, ibid.
1S6 AGRARIAN LAW AND SOCIAL LEGISLATION
(d) Authorized deductions;

(e) Hours of work and proportionate additional pay meat;
(f) Rest days and allowable leaves;

(g) Board, lodging and medical attention;
(h) Agreements on deployment expenses, if any;
(i) Loan agreement;
(j) Termination of employment; and
(k) Any other lawful condition agreed upon by both parties.
If the domestic worker was hired through a private employment agency,

the agency should keep a copy of the employment contracts which shall be made
available for verification and inspection by the DOLE.12
Registration of domestic workers

Employers are required to register their domestic workers in the
barangay where the employer’s residence is located.13
Terms and conditions of employment of domestic workers

Health and Safety
The employer shall safeguard the health and safety of the domestic
worker, with due consideration of the peculiar nature of domestic work.'1
Free Board, Lodging and Medical Attendance

The employer shall provide for the basic necessities of the domestic
worker to include:
(a) at least three (3) adequate meals a day;

(b) humane sleeping arrangements;
(c) appropriate rest and assistance in case of illness or
injuries sustained during service without loss of benefits.
,2S
ec.S
13
3,
ec.
ibi
17,
d.
ibi
d.
CHAPTER 4 187
NOTE: Medical attendance is limited to medical treatment

for ailments contracted by the househelper while in the service
of the employer. It does not include hospitalization."
The employer cannot withdraw or hold in abeyance the provision of these

basic necessities as punishment or disciplinary action to the domestic worker. 15
* * 18
Daily Rest Period

Domestic workers are entitled to an aggregate daily rest period of eight
(8) hours per day.17
Weekly Rest Period

Domestic workers are entitled to a weekly rest period of at least twenty-
four (24) consecutive hours.
The employer and the domestic worker shall agree in writing on the
schedule of the weekly rest day of the domestic worker. The rest day chosen by
the domestic worker on religious grounds shall be respected.
The domestic worker and the employer may validly agree on the
following:
(a) Offset a day of absence with a particular rest day;
(b) Waive a particular rest day in return for an equivalent daily
rate of pay;
(c) Accumulate rest days not exceeding five (5) days; or
(d) Other similar arrangements.18
Appropriate compensation for Assignment to Non-Household Work
Domestic workers cannot be assigned to work in a commercial, industrial
or agricultural enterprise at a wage rate lower than that provided for
agricultural or nonagricultural workers.
15Zamora v, Sy, 52 O.G.

1518.
lsSec. 6, supra,
nSec, 20, ibid.
,8Sec. 21, Domestic
Workers Act.
Domestic workers assigned to work in such establishments shall be paid the

applicable minimum wage.19
Extent of Duty
The employer may allow a domestic worker to temporarily perform a
task for another household, but any liability that will be incurred by the
domestic worker on account of such arrangement shall be borne by the original
employer.
The domestic worker who temporarily works for another household shall
be paid an additional compensation of not less than the existing minimum wage
rate of a domestic worker. The original employer to charge any amount from
the household where the service of the domestic worker was temporarily
performed.20
Minimum Wage of Domestic Workers

(a) P2,500.00/month — in the National Capital Region
(NCR);
(b) P2,000,00/month — in chartered cities and first
class municipalities; and
(c) Pl,500.00/month — in other municipalities.
The Regional Tripartite and Productivity Wage Boards (RTPWBs) may
from time to time review, determine, and adjust the minimum wage rates of
domestic workers.21
Payment of Wages
Wages of domestic workers should be paid:
1. in cash;
2. directly to the domestic worker; and
3. at least once a month.

The employer cannot pay the wages of a domestic worker by means of
promissory notes, vouchers, coupons, tokens, tickets, chits, or any object other
than cash.22
19Sec.
22,
“Sec.
ibid.
Sec.
23,
21
24.
ibid.
ibid.
CHAPTER 4 189
Pay Slip
The employer shall at all times provide the domestic worker with a copy
of the pay slip containing the amount paid in cash every pay day, indicating all
deductions made, if any. The copies of the pay slip shall be kept by the employer
for a period of three (3) years.23
Thirteenth Month Pay

Domestic workers are entitled to 13th month pay as provided for by the
13th month pay law.24 *
Leave Benefits
Domestic workers who have rendered at least one (1) year of service shall
be entitled to an annual service incentive leave of five (5) days with pay.
Unused portion of said annual leave is neither cumulative nor convertible to
cash.23
Social Security, PhilHealth and Pag-Ibig Fund

Domestic workers who have rendered at least one (1) month of service
shall be covered by the Social Security System (SSS), the Philippine Health
Insurance Corporation (PhilHealth), and the Home Development Mutual
Fund (Pag-IBIG). The premium contributions shall be paid as follows:
(a) For domestic workers who receive a monthly wage of less
than P5,000.00 — the employer’s contribution and the domestic
worker’s contribution shall be borne solely by the employer;
(b) For domestic workers who receive a monthly wage of
P5,000.00 and above — the domestic worker and the employer shall
shoulder their respective premium contributions.26
Rights and privileges of domestic workers

Right to Humane Treatment
The employer or any member of the household shall not subject a
domestic worker to any kind of abuse, physical violence,
“See. 26, Domestic Workers

Act.
24Sec. 25, ibid.
“Sec. 27, ibid.

“Sec. 28, ibid.
harassment or any act tending to degrade the dignity of a domestic worker.27
NOTE: Any abused or exploited domestic worker shall be

immediately rescued by a municipal or city social welfare officer or
a social welfare officer from the Department of Social Welfare and
Development (DSWD) in coordination with the concerned barangay
officials. The DSWD and the DILG shall develop a standard
operating procedure for the rescue and rehabilitation of abused
domestic workers, and in coordination with the DOLE, for possible
subsequent job placement.28 29 30
Right to Privacy
The employer shall respect the privacy of the domestic worker at all
times. The right to privacy extends to all forms of communication and personal
effects.23
Access to Outside Communication

The employer shall grant the domestic worker access to outside
communication during free time. However, 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,50
Right to Education and Training

The employer shall afford the domestic worker the opportunity to finish
basic education and may allow 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.31
27Sec. 5,
ibid.
^Sec.
31,
29 ibid.
Sec. 7,
ibid.
30 Sec. 8,
ibid.
31 Sec. 9.
ibid.
CHAPTEK 4 191
Obligations of domestic workers

Domestic workers are obliged to:
(a) render satisfactory service at all times;32
(b ) observe the terms and conditions of the employment
contract;33 * *
(c) refrain from publicly disclosing any communication or
information pertaining to the employer or members of the household
during and after employment.
NOTE: Information that may be divulged by the domestic
worker on the matter are privileged in character and therefore,
inadmissible in evidence except when the suit involves the
employer or any member of the household in a crime against
persons, property, personal liberty and security, and chastity.3*
Araw ng mga kasambahay

January 18 (the date of approval of the law) has been designated as the
“Araw ng mga Kasambahay.""'
Prohibited Activities
Prohibition Against Deposits for Loss or Damage
The employer cannot oblige the domestic worker to make deposits to
answer for loss or damage to tools, materials, furniture and equipment in the
household.36
Prohibition on Debt Bondage

The employer cannot oblige the domestic worker to render service as security
for or in 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.37
32Sec. 7,
ibid.
“Sec. 34,
ibid.
“Sec. 3,
36Sec. 39,
ibid.
ibid.
36Sec. 14,
“See.
ibid. 15,
ibid.
Prohibition on Interference in the Disposal of Wages

The employer cannot interfere with the freedom of any domestic
worker to dispose of the latter’s wages. Thus, the domestic worker
cannot be obliged 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.38
Prohibition Against Withholding of Wages

The employer cannot, directly or indirectly, to withhold th
wages of the domestic worker. Likewise, the employer cannot indue
the domestic worker to give up any part of the wages by force, stealth
intimidation, threat or by any other means whatsoever.39
When the employment relation can be terminated

If there is a just cause — the domestic worker or the employer
can terminate the employment relations any time.
If there is no just cause — the domestic worker or the employer
can terminate the employment relations:
(a) At the end of the stipulated period; or

(b) If no stipulated period — by giving 5 days advance
notice.40
Effect of termination without notice or before the stipulated period

If the stipulated period or the 5-day advance notice is not
observed, the following are the consequences:
On the part of the domestic worker

(a) He forfeits any unpaid salary equivalent to 15 days;
and
(b) He is liable for the deployment expenses, if the
termination is done within six (6) months from hiring.
3flSec.27, Domestic Workers Act.

39Sec.28, ibid.
*°Sec. 32, ibid.
CHAPTER 4 193
On the part of the employer

He is liable for indemnity in an amount equivalent to 15 days pay.“
The just causes for termination of employment by the domestic
worker
The domestic worker may validly terminate the employment
relationship at any time for any of the following just causes:
(a) Verbal or emotional abuse by the employer or any member
of the household;
(b) Inhumane treatment including physical abuse by the
employer or any member of the household;
(c) Commission of a crime or offense against the domestic
worker by the employer or any member of the household;
(d) Violation by the employer of the terms and conditions of
the employment contract and other standards set forth under the law;
(e) If he is suffering from a disease prejudicial to the health of
the domestic worker, the employer, or member/s of the household; and
(f) Other causes analogous to the foregoing.42
The just causes for termination of employment by the employer

The employer can terminate the services of the domestic worker for
any of the following just causes:
( a ) Misconduct or willful disobedience to lawful order in
connection with the work;
( b ) Gross or habitual neglect or inefficiency;
(c) Fraud or willful breach of the trust;
( d ) 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;
‘See. 32, ibid.

( e ) Violation by the domestic worker of the terms and

conditions of the employment contract and other standards set -forth
under the law;
( f ) If the domestic worker is suffering from a disease
prejudicial to his health, the health of the employer, or members of
the household; and
( g ) Other causes analogous to the foregoing.*3 Certificate
of Employment
Upon the severance of the employment relationship, the employer
shall issue the domestic worker within five (5) days from request a
certificate of employment indicating the nature, duration of the service
and work performance."
Criminal acts
The Domestic Workers Act declares the following acts as criminal
offenses:
(a) Employing a domestic worker who is below 15 years
old;46
(b) Charging by the original employer any amount from the
household where the service of his domestic worker was temporarily
performed;46
(c) Requiring the domestic worker to make deposits to
answer for losses or damage to tools, materials, furniture and
equipment in the household;47
(d) Placing the domestic worker under debt bondage. i.e.,
requiring the domestic worker to render service 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;18
"Sec. 34, ibid.

“Sec. 35, ibid.
“Sec. 16, ibid.
“Sec. 23, ibid.
"Sec. 14, ibid.
"Sec. 4 (a)
and 15. ibid.
i
CHAPTER 4 1&5
DOMKHTIO WOKKKKS ACT tfcATAS
KASAMBAHAYj
(c) I ntcrfering with the freedom of the domestic worker to

dispose of his wages, or. forcing, impelling or obliging the domestic
worker to purchase merchandise, commrxiities 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; 4*
(f) Withholding the wages of the domestic worker or inducing
the domestic worker to give up any part of his wages by force, stealth,
intimidation, threat or by any other means whatsoever.™
Criminal sanction
The aforementioned criminal acts will subject the offender to a fine of
not less than Ten thousand pesos (P10,000.00) but not more than Forty
thousand pesos (P40,000.00).51
49Sec. 27, ibid.

“Sec. 28, ibid.
51Sec. 40, ibid.
CHAPTER 5
FILIPINOS ACT OF 1995
[as amended by R.A. 9422 and R.A. 10022]
Migrant Worker
A migrant worker is an overseas Filipino worker, i.e., a person
who is to be engaged or has been engaged in a remunerated activity
in a country of which he is not a citizen, or on board a vessel navigat-
ing the foreign seas, other than a government ship used for military'
or non-commercial purposes, or on an installation located offshore
or on high seas.
A person is deemed to have been “engaged in a remunerated
activity” if he has been promised or assured employment overseas.1
Deployment of Migrant Workers
Migrant workers can be deployed only in countries where the
rights of Filipino workers are protected. This may be indicated if
the receiving country:
(a) Has existing labor and social laws protecting the
rights of migrant workers;
(b) Is a signatory to or a ratifier of multilateral conven-
tions, declarations, or resolutions relating to the protection of
workers, including migrant workers; or
'Sec 2 (jj), Omnibus Rules and Regulations Implementing the Migrant Workers and Overseas
Filipinos Act of 1995.
196
CHAPTER 5 197
THE MIGRANT WORKERS AND OVERSEAS FILIPINO ACT OF 1995
(c) Has concluded a bilateral agreement with the Philippine

government on the protection of the rights of overseas
Filipino workers.2
With regard to Filipino seafarers, their deployment to vessels
navigating the foreign seas or to installations located offshore or on high seas
will be allowed only when the 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, deployment of Filipino workers thereat will be allowed if they are
compliant with standards and conditions embodied in the employment
contracts prescribed by the POEA.
In the absence of clear showing that any of the aforementioned
guarantees exist in the country of destination of the migrant workers, the
POEA will not issue a deployment permit.3
Liability of the POEA Governing Board, Government Officials and

Employees
The 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 shall suffer the penalties of removal or
dismissal from service with disqualification to hold appointive public office
for five (5) years.4
Government officials or employees responsible for allowing the
deployment of migrant workers in direct contravention of the prohibition
imposed by tfie POEA Governing Board shall also be meted the same
penalties.5
Compulsory Insurance Coverage for agency-hired migrant workers

Recruitment or manning agencies are obliged to provide each migrant
worker they deploy a compulsory insurance at no cost to the worker.6
2Sec. 3 (a), R.A. No. 8042, as

amended.
3Sec. 4, ibid.
4Sec. 4, ibid.
•Sec. 4, ibid.
•Sec. 37-A, ibid.
If the migrant worker was made to shoulder the cost of insurance

premium, the license of the recruitment or manning agency will be cancelled
and all its directors, partners, proprietors, officers and employees shall be
perpetually disqualified from engaging in recruitment of overseas workers,
without prejudice to any other liabilities."
The insurance company must be:
• duly registered with the Insurance Commission;
• in existence and operational for at least five (5) years:
• with a net worth of at least P500,000,000.00 to be
determined by the Insurance Commission; and
• with a current certificate of authority.®
The recruitment/manning agency has the right to choose the
insurance provider. The migrant worker should be given an authen-
ticated copy of the insurance policy. The certificate of insurance coverage
should be submitted to the POEA as a requirement for the issuance of
an Overseas Employment Certificate. Insurance policies issued by
foreign insurance companies to seafarers shall be accepted by the POEA
if the minimum coverage are complied with.9
Migrant workers recruited by the POEA on a government-to-
govemment arrangement shall be covered by a foreign employer’s
guarantee fund established by the POEA. The foreign employer’s
guarantee fund shall answer for the workers’ monetary claim arising
from breach of contractual obligations. Migrant workers who are
classified as rehires, name hires, or direct hires may request their foreign
employers to pay for the cost of insurance coverage or opt to pay the
premium themselves.10
Disqualification
Insurance companies who have directors, partners, officers,
employees or agents with relatives, within the fourth civil 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 this workers’ insurance coverage.11
’Sec. 37-A, ibid.

'Sec. 37-A, ibid.
9Scc. 37-A, ibid.
“ftec. 37-A, ibid..

’'Sec. 37-A, ibid.
CHAPTER 5 199
Coverage of the Insurance

The insurance policy which should be effective for the duration of the
migrant worker’s employment contract and shall cover:
(a) US$15,000.00 for accidental death, payable to the

migrant worker’s beneficiaries;
(b) US$10,000.00 for natural death, payable to the migrant
worker’s beneficiaries;
(c) US$7,500.00 for permanent total disability, payable to the
migrant worker;12
(d) US$100.00 per month for subsistence allowance for a
maximum of six (6) months if the migrant worker is involved in a case
or litigation for the protection of his rights in the receiving country; 13
(e) Repatriation cost of the worker when employment is
terminated without any valid cause, including the transport of his or
her personal belongings;14
(f) Money claims arising from employer’s liability which may
be awarded or given to the worker in a judgment or settlement of his or
her case in the National Labor Relations Commission;15
12The following disabilities are deemed permanent total:

' complete loss of sight of both eyes;
• loss of two (2) limbs at or above the ankles or wrists;
' permanent complete paralysis of two (2) limbs;
' brain injury resulting to incurable imbecility or insanity.
13The concerned labor attache or, in his absence, the embassy or consular office shall issue a
certification which states the name of the case, the names of the parties and the nature of the cause of
action of the migrant worker.
14In case of death, the insurance provider shall;
(a) arrange and pay for the repatriation or return of the worker’s remains;
(b) render assistance necessary in the transport, including, but not limited to,
locating a local and licensed funeral home, mortuary or direct disposition facility to prepare the body
for transport, completing all documentation, obtaining legal clearances, procuring consular services,
providing death certificates, purchasing the minimally necessary casket or air transport container, as
well as transporting the remains including retrieval from site of death and delivery to the receiving
funeral home [Sec. 37-A, R.A. No. 8042, as amended]. In case of repatriation, a certification which states
the reason for the termination of the migrant worker’s employment and the need for his or her
repatriation shall be issued by the Philippine foreign post or the Philippine Overseas Labor Office
(POLO) located in the receiving country.
The insurance coverage for money claims shall be equivalent to at least three
(g) Cost of transportation for compassionate visit by one

(1) family member (or requested individual) to the major airport
closest to the place of hospitalization of the worker, in case the
migrant worker is hospitalized or confined for at least seven (7)
consecutive days;1*
(h) Cost of medical evacuation, when proximate and
adequate medical facility is not available to the migrant worker,
as determined by the insurance company’s physician or
consulting physician; and
(i) Cost of medical repatriation, when medically necessary as
determined by the attending physician, and medically cleared for
travel by the commercial carrier.16 17
Claims arising from accidental death, natural death or disablement
shall be paid by the insurance company without any contest and without
the necessity of proving fault or negligence of any kind on the part of the
insure migrant worker.18 19
The following documents, duly authenticated by the Philippine
foreign posts, shall be sufficient evidence to substantiate the claim:
• Death Certificate — In case of natural or accidental death;
• Police or Accident Report — In case of accidental death;
• Medical Certificate — In case of permanent disablement.18
Repatriation of Migrant Workers

Repatriation of overseas worker and the transport of his personal
belongings is the primary responsibility of the recruitment agency. All
costs attendant to repatriation shall be borne by or charged to the agency
concerned and/or its principal.
16It is, however, the responsibility of the family member or requested individual
to meet all visa and travel document requirements (Sec. 37-A, R.A. No. 8042, aft
amended].
17Sec. 37-A, R.A. No. 3042, as amended
'•Sec. 37-A, ibid.
19Sec. 37-A, ibid.
CHAPTER 5 201
Likewise, the repatriation of remains and transport of the personal

belongings of a deceased worker and all costs attendant thereto shall be
borne by the principal and/or the recruitment agency.
However, in cases where the termination of employment is due solely
to the fault of the worker, the principal/employer or agency will not be
responsible for the repatriation of the former and/or his belongings .20
Emergency Repatriation
In case of war, epidemic, disasters or calamities, natural or man-
made, and other similar events, the OWWA,21 in coordination with
appropriate international agencies shall undertake the repatriation of
workers. The cost of repatriation is subject to reimbursement by the
responsible principal or agency.
If the principal or recruitment agency cannot be identified, all costs
attendant to repatriation shall be borne by the OWWA.22 23
Repatriation of underage migrant workers — mandatory

If there are migrant workers whose actual age fall below 18 years old,
the responsible officers in the foreign service shall without delay repatriate
said workers.
The license of the recruitment/manning agency which recruited or
deployed the underaged migrant worker shall be automatically revoked and
shall be meted out with a fine ranging from P500,000.00 to PI ,000,000.00.
Furthermore, the recruitment or manning agency shall refund all the
fees incurred by the underage worker without need of notice. The refund
should be paid within thirty (30) days from the date of the mandatory
repatriation.22
Illegal recruitment of migrant workers

Illegal recruitment can be committed in the following manner:
20Sec. 15, ibid.

zlOverseas Workers Welfare
Administration.
Z2Sec. 15, supra.
23Sec. 16, ibid.
(a) When a person who is not licensed or authorized to

recruit workers, engages in recruitment activities;21 or
(b) When a person, whether or not he is licensed or
authorized to recruit, commits any of the following prohibited
activities:
• Charging or accepting directly or indirectly any amount
greater than that specified in the schedule of allowable fees;
• Making a worker pay or acknowledge any amount greater
than that actually received by him as a loan or advance;
• Furnishing or publishing any false notice or information or
document in relation to recruitment or employment;
• Misrepresentation in obtaining a license or authority to
recruit or in the documentation of hired workers;
• Reprocessing workers through a job order that pertains to:
• nonexistent work;
• work different from the actual overseas work; or
• work with a different employer.
. Inducing or attempting to induce a worker already employed to
quit his employment in order to offer him another unless the
transfer is designed to liberate a worker from oppressive
terms and conditions of employment;
. Influencing or attempting to influence any person or entity not
to employ a worker who has not applied for employment
through his agency; •
• Influencing or attempting to influence any person or

entity not to employ a worker who has formed, joined
or supported, or has contacted or is supported by any
union or workers’ organization;
^Recruitment activities refer to canvassing, enlisting, contracting, transport

ing, utilizing, hiring, or procuring workers, including referrals, contract serviette
promising, or advertising for employment abroad, whether for profit or not.
V)
CHAPTER 5 203
• Engaging in the recruitment of placement of workers in

jobs harmful to public health or morality or to the
dignity of the Republic of the Philippines;
• Obstructing or attempting to obstruct inspection by the
Secretary of Labor and Employment or by his duly
authorized representative;
• Substituting or altering to the prejudice of the worker,
employment contracts approved and verified by the
Department of Labor and Employment from the time of
actual signing thereof by the parties up to and including
the period of the expiration of the same without the
approval of the Department of Labor and Employment;
• For an 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 or to be
engaged directly or indirectly in the management of a
travel agency;
• Withholding or denying travel documents from applicant

workers before departure for monetary or financial
considerations, or for any other reasons, other than
those authorized under the Labor Code and its
implementing rules and regulations;
■ Failure to submit reports on the status of employment,
placement vacancies, remittance of foreign exchange
earnings, separation from jobs, departures, and such
other matters or information as may be required by the
Secretary of Labor and Employment;
. Failure to actually deploy a contracted worker without
valid reason as determined by the Department of Labor
and Employment;
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;
Allowing a non-Filipino citizen to head or manage a

licensed recruitment/manning agency;
• Charging an overseas Filipino worker with interest exceeding

eight percent (8%) per annum, for a loan which will be used for
payment of legal and allowable placement fees and make the
migrant worker issue, either personally or through a guarantor
or accommodation party, postdated checks in relation to the
said loan;
• Obliging the overseas Filipino worker to avail of loan only from
specifically designated institutions, entities or persons;
• Refusing to condone or renegotiate a loan incurred by an
overseas Filipino worker after the latter’s employment
contract has been prematurely terminated through no fault of
his or her own;
• Obliging the an overseas Filipino worker to undergo health
examinations only from specifically designated medical clinics,
institutions, entities or persons, except in the case of a seafarer
whose medical examination cost is shouldered by the
principal/shipowner;
• Obliging the overseas Filipino worker to undergo training,
seminar, instruction or schooling of any kind only from specifically
designated institutions, entities or persons, except for
recommendatory trainings mandated by principals/shipowners
where the latter shoulder the cost of such trainings;
• Engaging any kind of recruitment activity including the
processing of pending workers’ applications while the license
is suspended; and
• Charging the cost of the compulsory insurance to the
overseas Filipino worker.25
Syndicated Illegal Recruitment

Illegal recruitment is deemed committed by a syndicate if carried out
by a group of three (3) or more persons conspiring or confederating with one
another.25 * 26
26Sec.
6,
26Sec.
ibid.
6.
ibid.
CHAPTER 5 205
Large-Scale Illegal Recruitment

Illegal recruitment is deemed in large scale if committed against
three (3) or more persons individually or as a group.'7
Economic Sabotage
Illegal recruitment is considered an offense involving economic
sabotage when committed by a syndicate or in large scale.*
Who can file the criminal complaint for illegal recruitment

The criminal complaint for illegal recruitment can be filed by:
• the Secretary of Labor and Employment or his duly
authorized representative;
• the POEA Administrator or his duly authorized
representative; or
• any aggrieved person.73
Prescriptive period for illegal recruitment of migrant workers
Simple illegal recruitment prescribes in five (5) years.
Large-scale or syndicated illegal recruitment prescribes in twenty
(20) years.30
Penalty for illegal recruitment of migrant workers

For simple illegal recruitment:
■ 12 years and 1 day to 20 years imprisonment, and
• a fine of ranging from PI,000,000.00 to P2,000,000.00. For
large-scale or syndicated illegal recruitment:
• life imprisonment, and
• a fine ranging from P2,000,000.00 to P5,000,000.00.
”Ibid.
KIbid.
™lbid.
’"Sec. 12, R.A. No. 8042, i amended.
205 AGRARIAN LAW AMD SOCIAL LEGISLATION
The maximum penalty shall be imposed:

• if the person illegally recruited is less than eighteen (IS)
years of age. or
• if committed by a non-licensee or non-holder of authority.
For persons found guilty of any of the prohibited acts:
• 6 years and 1 day to 12 years imprisonment; and
• a fine ranging from P500,000.00 to Pi,000,000.00. Accessory
penalties:
• Deportation after service of sentence — if the offender is an
alien;
• Automatic revocation of the license or registration of the
recruitment/manning agency, lending institution, training
school or medical clinic.3'
Jurisdiction of the POEA

The POEA has original and exclusive jurisdiction to hear and decide:
(a) the administrative aspect of recruitment violations
committed by recruitment or manning agencies; and
( h ) disciplinary action cases and other special cases involving
employers, principals, contracting partners and overseas workers
processed by the POEA.31 32
The decision of the POEA Administrator may be appealed to the
Secretary of Labor and Employment within fifteen (15) days from the receipt
of the Decision.33
Power of POEA to order closure of establishment

The POEA Administrator may order the closure of the establishment
if he finds (upon preliminary examination) that the activities of a non-
licensee:
31f3ec. 7, R.A. No. 8042, as amended.

MSec. 6, Rule X, Omnibus Rules and Regulations Implementing the Migrant
Workers and Overseas Filipinos Act of 1995, as amended.
33Sec. 11, Rule X, ibid.
^ a.
CHAPTER 5 207
• constitute a danger to national security and public order; or
• will lead to further exploitation of job seekers."

The closure shall be effected by sealing and padlocking the
establishment and posting a notice of such closure in bold letters at a
conspicuous place in the premises of the establishment.M
Effect of closure order

A closure order will result in:
(a) the inclusion of all officers and responsible employees of the
entity engaged in illegal recruitment activities in the List of Persons
With Derogatory Record; and
(b) their disqualification from participating in the overseas

employment program of the government.36
Remedies from a closure order

The following remedies may be availed of from an order of closure:
• Motion to Re-Open Establishment;
• Motion to Lift Closure Order; and
• Appeal.
Who can file a motion to reopen the establishment

A motion to re-open may be filed only by the following persons:
• The owner of the building;
• The building administrator; or
• Any person or entity legitimately operating within the
premises closed or padlocked and whose operations or
activities are distinct from the recruitment activities of the
entity subject of the closure order.”
“7
208 AGRARIAN LAW AND SOCIAL
LEGISLATION
The motion to reopen will be granted if it is proven that:

• The office is not the subject of the closure order;
• The contract of lease with the owner of the building
administrator has already been canceled or
terminated;
• The office is shared by a person or entity not involved
in illegal recruitment activities, whether directly or
indirectly;
• Any other ground that the POEA may consider as valid
and meritorious.38 * *
Who can file a motion to lift a closure order

Only the person or entity against whom the closure order was
issued and implemented can file a motion to lift a closure order. 59
The motion to lift a closure order should be filed with the
Licensing and Regulation Office (LRO) within ten (10) calendar days
from the date of implementation thereof.
The motion should be under oath and should clearly state the
grounds upon which it is based, with supporting documents attached.
A motion to lift which does not conform with these require-
ments shall be denied.*"
Grounds for lifting of the closure order

The closure order may be lifted on any of the following
grounds:
fa) The person has proven that it is not involved in
illegal recruitment activities, whether directly or indirectly;
or
(b) Any other analogous ground which the POEA may
find valid and meritorious.
Lifting of a closure order is without prejudice to the filing of a

criminal complaint with the appropriate office against the person
alleged to have conducted illegal recruitment activities.41
“Sec. 17, Rule VI,

ibid.
**Sec. 19, Rule
VI, ibid.
^Sec. 18, Rule
VI,
4I ibid.
Sec. 20, Rule
VI, ibid.
CHAPTER 5 209
THE MIGRANT WORKERS AND 0\"ERSEAS FILIPINO ACT OF 1995
Appeal
The order of the POEA Administrator denying the motion to lift a
closure order or denying the motion to re-open may be appealed to the
Secretary within ten (10) days from service or receipt thereof.*-'
Prescriptive period for filing administrative cases

Administrative cases involving recruitment violation and dis-
ciplinary action should be filed within three (3) years from accrual of the
cause if action, otherwise, it will be barred by prescription
POEA has no jurisdiction over claims of migrant workers

The Labor Arbiters of the National Labor Relations Commission have the
original and exclusive jurisdiction to hear and decide claims of migrant workers
arising out of an employer-employee relationship, including claims for actual,
moral, exemplary, and other forms of damages."
Reliefs for illegally dismissed migrant workers

A migrant worker who is illegally dismissed is entitled to the following reliefs:
• payment of salaries for the unexpired portion of his employment
contract; and
• full reimbursement of his placement fee and the deductions made with
interest of 12%per annum.411
NOTE: The clause “or for three (3) months for every year of the
unexpired term, whichever is less ” as provided in Section 10 of the Migrant
Workers and Overseas Filipinos Act was declared unconstitutional in the case of
Serrano v. Gallant Maritime Services, G.R. No. 167614, March 24, 2009.
Recruitment agencies are solidarily liable with the principal
Recruitment or manning agencies for overseas employment are jointly and

severally liable with the principal or employer for all
claims and liabilities which may arise from the implementation of the
employment contract.'8
Exceptions to the solidary liability rule

The rule regarding the solidary liability of recruitment agencies admits
of certain exceptions, namely:
(a) When the workers themselves were the ones who
insisted that the recruitment agency to send them back abroad
despite their knowledge that the foreign employer might not be able
to pay their wages because of financial difficulties and they agreed
not to hold the agency responsible therefor.*'
(b) When the workers were recruited by the supposed
recruitment agency without the latter’s knowledge and consent.*3
Services and privileges available to migrant workers

Exemption from Travel Tax and Airport Fee
Migrant workers are exempt from the payment of travel tax and
airport fee upon proper shoving of proof of entitlement by the POEA.*9
Exemption from Documentary Stamp Tax

The remittances of all overseas Filipino workers are also exempt
from the payment of documentary stamp tax, upon showing of proof of
entitlement by the overseas Filipino worker’s beneficiary or recipient .50
Travel Advisory/Information Dissemination

All embassies and consular offices, through the POEA are obliged
shall issue travel advisories or disseminate information on labor and
employment conditions, migration facilities, adherence of particular
countries to international standards on human and workers’ rights
which will adequately prepare individuals into making
“Ibid.
*7Feagle Construction Corp v. Gayda, 186 SCRA 589. ‘“Has V. NLRC, 193 SCRA
682.
,!Sec. 35, R.A. No. 8042, as amended.
60R.A. No, 8042, as amended.
CHAPTER 5
THU MIGRANT WORKERS AND OVERSEAS FILIPINO ACT OF 1995
informed and intelligent, decisions about overseas employment, and

thus prevent illegal recruitment, fraud, and exploitation or abuse of
Filipino migrant workers. Such advisory or information shall be
published in a newspaper of general circulation at least three (3) times
in every quarter."1
Migrant Workers and Other Overseas Filipinos Resource Center

This is required to be established within the premises of the
Philippine Embassy in countries where there are large concentrations
of Filipino migrant workers. The Migrant Workers and Other Overseas
Filipinos Resource will provide the following services to migrant
workers:
(a) Counseling and legal services;
(b) Welfare assistance including the procurement of
medical and hospitalization services;
(c) Information, advisory and programs to promote social
integration such as post-arrival orientation, settlement and
community networking services and activities for social
interaction;
(d) Registration of undocumented workers to bring them
within the purview of the Migrant Workers Act;
(e) Human resource development, such as training and
skills upgrading;
(f) Gender sensitive programs and activities to assist
particular needs of women migrant workers;
(g) Orientation program for returning workers and other
migrants; and
(h) Monitoring of daily situations, circumstances, and
activities affecting migrant workers and other overseas Filipi-
nos.
The Center is open for twenty-four (24) hours daily including Saturdays,
Sundays, and holidays.
6,Sec. 14, R.A. No. 8042, as amended.

In countries categorized as highly problematic by the Department of

Foreign Affairs and the Department of Labor and Employment and where
thei'e is a concentration of Filipino migrant workers, the government must
provide a Shari’a or human rights lawyer, a psychologist and a social worker
for the Center. In addition to these personnel, the government must also hire
within the receiving country, in such number as may be needed by the post,
public relation officers or case officers who are conversant, orally and in
writing, with the local language, laws, customs and practices. The Labor
Attache shall coordinate the operation of the Center and shall keep the Chief
of Mission informed and updated on all matters affecting it.
The Center shall have a counterpart 24-hour information and assistance

center at the Department of Foreign Affairs to ensure a continuous network
and coordinative mechanism at the home office.52
Migrant Workers Loan Guarantee Fund

The Migrant Workers Loan Guarantee Fund which is administered by
the Overseas Workers Welfare Administration (OWWA) may be availed of by
the migrant worker for pre-departure loan or family assistance loan in order to
further prevent unscrupulous illegal recruiters from taking advantage of
workers seeking employment abroad.53
Congressional Migrant Workers Scholarship Fund

This is intended for the benefit of deserving migrant workers or their
immediate descendants below twenty-one (21) years of age who intend to
pursue courses or training primarily in the field of science and technology.54
National Reintegration Center for Overseas Filipino Workers (NRCO)

This is under the Department of Labor and Employment, the purpose of
which is to assist in the reintegration of returning Filipino migrant workers
into the Philippine society, serve as a promotion
“
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.
CHAPTER 5
FILIPINO ACT OF 1995
house for their local employment, and tap their skills and potentials for
national development. For this purpose, the Technical Education and Skills
Development Authority (TESDA1, the Technology Livelihood Resource
Center (TLRC), and other government agencies involved in training and
livelihood development shall give priority to returnees who had been
employed as domestic helpers and entertainers.“
Legal Assistance
Migrant workers and overseas Filipinos in distress are entitled to
legal assistance through the Legal Assistant for Migrant Workers Affairs
under the Department of Foreign Affairs. The Legal Assistant for Migrant
Workers Affairs is primarily responsible for the provision and overall
coordination of all legal services to migrant workers and overseas Filipinos
in distress and can hire private lawyers, domestic or foreign, in order to
assist him in the effective discharge of the above functions. 3*
Sectoral Representation in Congress

Filipino migrant workers are entitled to two (2) sectoral
representatives in the House of Representatives to be appointed by
the President from the ranks of migrant workers. At least one (1) of
the two (2) sectoral representatives shall come from the women
migrant workers sector. All nominees must have at least two (2)
years experience as a migrant worker.57
Migrant Workers Day
The day of signing by the President of the Migrant Workers
and Overseas Filipinos Act, June 7 has been designated as the
Migrant Workers Day to be commemorated annually.5*
“Sec. 17, ibid.

“Sec. 24. ibid.
*;Sec. 34. ibid
“Sec. 39. ibid.
CHAPTER 6
Meaning of Paternity Leave

Paternity leave refers to the time-off with pay granted to a
married male employee by reason of childbirth or miscarriage of his
lawful wife so that he could lend support to his wife during her
period of recovery, or in nursing of the newly bom child.1
Coverage of the Law

The Paternity Leave Act covers married male employees in
both the public and the private sector.
Duration of paternity leave

The duration of paternity leave is seven (7) days with full pay,
available only for the first four (4) deliveries (or miscarriage) of the
legitimate spouse with whom he is cohabiting.2
Full pay consists of basic salary, all allowances, and other
monetary benefits.3
Not convertible to cash

Paternity leave benefit, if unused, is not convertible to cash.4
'Sec. 1, Revised Implementing Rules and Regulations Implementing R.A.

No. 8187 for the Private Sector.
2Sec. 2, Paternity Leave Act of 1996.
"Sec. 6, R.A. No. 8187; Sec. 3, Revised Implementing Rules and

Regulations Implementing R.A. No. 8187 for the Private Sector.
'‘Sec. 7. R.A. No. 8187: Sec. 3. ibid.
CHAPTER 6 215
Conditions for entitlement of paternity leave

A male employee can avail of the paternity leave if the following
conditions are complied with:
(a) The woman who gave birth or suffered miscarriage
must be the legal wife;
(b) At the time of the miscarriage or delivery of the child,
the male spouse must be:
(if an employee; and
(ii) cohabiting with his lawful wife.
(c)The employee must notify the employer of the
pregnancy of his wife, stating the expected date of delivery.5
(d) The paternity leave can be availed of only for the first
four (4) childbirth or miscarriage."
When to avail of the paternity leave

The paternity leave may be enjoyed before, during, or after the
delivery by his wife but not later than sixty (60) after the date of said
delivery.’
How to avail of the paternity leave

As soon as the married male employee learns that his spouse is
pregnant, he should inform his employer about the pregnancy and the
expected date of delivery, within a reasonable period of time. The
employee should file an application for paternity leave by
accomplishing the Paternity Notification Form to be provided for by the
employer and submit the same to the latter, together with a copy of his
marriage contract; or where not applicable, any proof of marriage.
The notification requirement does not apply to miscarriage or
abortion.® * 6
6Sec. 2, R.A. No. 8187; Sec. 3, ibid.

6Sec. 3, ibid.
7Sec. 5, Revised Implementing Rules and Regulations Implementing R.A. No.
8187 for the Private Sector.

8Sec. 4, ibid.
Proof of childbirth or miscarriage

The employee who has availed of the paternity leave benefits
shall, within a reasonable period of time, submit a copy of the birth
certificate of the newly-born child, death or medical certificate in case of
miscarriage or abortion, duly signed by the attending physician or
midwife showing the actual date of childbirth, miscarriage, or abortion,
as the case may be.9 10
Penal sanctions
Violation of the Paternity Leave Act is punishable by:
(a) fine not exceeding P25.000; or
(b) imprisonment ranging from 30 days to 6 months.11
Sec. 4, ibid.
9
Sec. 5, Paternity Leave

10
Act of 1996.
CHAPTER 7
Solo Parent
A solo parent is a person left alone with the responsibility
of parenthood due to the following circumstances:
(a) Giving birth as a result of rape or crimes against chastity;
(b) Death of spouse;

(c) Detention or imprisonment of spouse for at least one
(1) year;
(d) Physical or mental incapacity of spouse as certified by a public

medical practitioner;
(e) Legal separation/de facto separation from spouse for at least one
(1) year;
(f) Declaration of nullity or annulment of marriage;

(g) Abandonment of spouse for at least one (11 year;
(h) An unmarried mother/father who preferred to keep and rear his/her
child or children instead of having others care for them or give them up to a welfare
institution; (i)
(i) A foster parent duly licensed by the Department of Social

Welfare and Development or a legal guardian appointed by the court, who
solely provides parental care and support to a child or children;
(j) A family member who assumes the responsibility of head of

family as a result of the death, abandonment, disappearance, or prolonged
absence of the parents or solo
217
parent, provided, that such abandonment, disappearance, or

absence lasts for at least one (1) year.1
Benefits available to a solo parent

The Solo Parents Welfare Act accords solo parents the following
benefits:
(a) Flexible work schedule;
(b) Parental leave of not more than seven (7) days;
(c) Educational benefits;

(d) Housing benefits on liberal terms in low-cost govern-
ment housing; and
(e) Medical assistance.
These benefits can be enjoyed as long as the solo parent continues
to be left alone with the responsibility of parenthood.2 3
Flexible work schedule

Flexible work schedule is a system whereby a solo parent- employee
is given the right to vary his/her arrival and departure time without
affecting the core work hours as defined by the employer.1
The employer is obliged to provide for a flexible working schedule
for solo parents as long as it does not affect individual and company
productivity. If individual or company productivity will be affected, the
employer may request exemption from the Department of Labor and
Employment.4
In the case of employees in the government service, flexible working
hours will be subject to the discretion of the head of the agency. In no case
shall the weekly working hours be reduced in the event the agency adopts
the flexible working hours schedule format (flexi-time). In the adoption of
flexi-time, the core working hours shall be prescribed taking into
consideration the needs of the service.5
'Sec. 3 (a), Solo Parents’ Welfare Act of 2000.

2Sec. 3, ibid.
3Sec. 3 (e), ibid.
4Sec. 6, ibid.
sSec. 16, Rules Implementing the Solo Parents’ Welfare Act of2000.
CHAPTER 7 219
The solo parent is entitled to the flexible work schedule even if his/her
income is above the poverty threshold set by the National Economic and
Development Authority (NEDA) and assessment of the Department of Social
Welfare and Development (DSWD).6
Parental leave for solo parents

Parental leave is time-off granted to a solo parent to enable him/her to
perform parental duties and responsibilities where physical presence is
required.7
Solo parent-employees who have rendered service of at least one (1)
year are entitled to parental leave of not more than seven (7) working days
every year.8
The seven-day parental leave is non-cumulative and not convertible to
cash, if unused.9
Conditions for Entitlement to Parental Leave

The parental leave for solo parents can be availed of if the following
conditions are complied with:
(a) The solo parent must have rendered at least one (1)
year of service, whether continuous or broken;
(b) The solo parent must give notice to the employer of
the availment thereof within a reasonable time period; and
(c) The solo parent must present his Solo Parent
Identification Card to the employer.
The solo parent is entitled to parental leave even if his/her income
is above the poverty threshold set by the National Economic and
Development Authority (NEDA) and assessment of the Department of
Social Welfare and Development (DSWD).10
Housing benefits
Solo parents are entitled to be given allocation in government low-
cost housing projects on liberal terms of payment, under the following
conditions:
6 Sec. 4, supra.
7Sec. 3 (d), ibid.
8Sec. 8, ibid.
’Sees. 18 and 20, Rules Implementing the Solo Parents’ Welfare Act of
l0Sec. 4, supra. 2000.
(a) The solo parent applying for housing benefits must meet the
qualification criteria for housing assistance under the Urban
Development and Housing Act" and other eligibility criteria set by the
National Housing Authority; and
(b) The eligible solo parent must file their application for
housing emit directly with the concerned National Housing Authority
Project Offices.12
Educational benefits
The following are the educational benefits and privileges available to
solo parents:
(1) Scholarship programs for qualified solo parents and their
children in institutions of basic, tertiary and technical/ skills education;
and
(2) Non-formal education programs appropriate for solo parents
and their children.13
Procedure for Availing Educational Benefits
To avail of the educational benefits under the Solo Parents Welfare

Act, the solo parent must:
(a) Secure an application form from either Department of
Education, Commission on Higher Education or Technical Education
and Skills Development Authority (TESDA) depending on his need;
and
(b) Submit the duly accomplished application form together
with the following documents:
(i) Solo Parent Identification Card;
(ii) Barangay Clearance;
(iii) Birth Certificate;
(iv) Notice of admission from the school; and
"R.A. No. 7279.

"Sec. 10, Solo Parents’ Welfare Act of 2000; Sec. 24, Rules Implementing the Solo
Parents’ Welfare Act of 2000.
"Sec. 9, Solo Parents' Welfare Act of 2000.
V
CHAPTER 7
22
1
(v) Original or Certified True Copy of the transcript
of record, or the Report Card of the last year the applicant
attended school."
Only solo parents whose income in the place of domicile falls
below the poverty threshold as set by the National Economic and
Development Authority (NEDA) and as assessed by the Department
of Social Welfare and Development are eligible for educational
benefits.15
Medical Assistance
Only solo parents whose income in the place of domicile falls
below the poverty threshold as set by the National Economic and
Development Authority (NEDA) and as assessed by the Department
of Social Welfare and Development are eligible for medical
assistance."
CHAPTER 8
MAGNA CARTA OF PERSONS WITH
DISABILITY

[as amended by Republic Act No. 9442]
Persons with disability

Persons with disability refer to those who are suffering from certain
limitations to perform an activity in the manner considered normal for a
human being, as a result of a mental, physical or sensory impairment.1
Rights and privileges of persons with disability

20% Discount
Persons with disability are entitled to at least twenty percent ( 20%)
discount on the following:
(a) services in hotels, lodging establishments, restaurants, and

recreation centers.2
(b) admission fees in theaters, cinema houses, concert halls,

circuses, carnivals and other similar places of culture, leisure, and
amusement.3
(c) cost of medicines in all drugstores;

(d) cost of medical and dental services in all government
facilities;
‘Sec. 4 (a), Magna Carta of Persons With Disability, as amended.

2Sec. 32 (a), ibid.
3Sec. 32 (b), ibid.
222
CHAPTER 8 223
MAGNA CARTA OF PERSONS WITH DISABILTTY
(e) cost of medical and dental services in all private hospitals

and medical facilities, including diagnostic and laboratory fees, and
professional fees of attending doctors;
(f) fare for land, domestic air, and sea travel.4
The discount is available only to persons with disability who are
Filipino citizens upon submission of any of the following as proof of
entitlement:
(1) Identification card issued by the city or municipal
mayor or the barangay captain of the place where the persons
with disability resides;
(2) Passport of the persons with disability concerned;
or
(3) Transportation discount fare Identification Card (ID)
issued by the National Council for the Welfare of Disabled Persons
(NCWDP).
The discount privileges cannot be claimed if the persons with disability
claims a higher discount as may be granted by the commercial establishment
and/or under other existing laws or in combination with other discount
programs.
Express Lanes
All commercial and government establishments are required to
provide express lanes for persons with disability. Jn the absence thereof,
priority shall be given to persons with disability. 5 6 *
Right to Barrier-Free Environment
This will enable persons with disability to have access in public and
private buildings and establishments and such other places mentioned
in Batas Pambansa Big. 344, otherwise known as the “Accessibility Law.”8
The pertinent provisions of the Accessibility Law read as follows:
“SECTION 1. In order to promote the realization of the rights of
disabled persons to participate fully in the social life and the development of
the societies in which they live and the
4
Sec. 32,
ibid.
6
Sec. 32,
e
Sec. 25,
ibid.
ibid.
enjoyment of the opportunities available to other citizens, no li-

cense or permit for the construction, repair or renovation of pub-
lic and private buildings for public use, educational institutions,
airports, sports and recreation centers and complexes, shopping
centers or establishments, public parking places, workplaces,
public utilities, shall be granted or issued unless the owner or
operator thereof shall install and incorporate in such building,
establishment, institution or public utility, such architectural
facilities or structural features as shall reasonably enhance the
mobility of disabled persons such as sidewalks, ramps, railings
and the like. If feasible, all such existing buildings, institutions,
establishments, or public utilities may be renovated or altered to
enable the disabled persons to have access to them: Provided,
however, That buildings, institutions, establishments, or public
utilities to be constructed or established for which licenses or
permits had already been issued may comply with the require-
ments of this law: Provided, further, That in case of government
buildings, streets and highways, the Ministry of Public Works and
Highways shall see to it that the same shall be provided with
architectural facilities or structural features for disabled persons.
In the case of the parking place of any of the above
institutions, buildings, or establishments, or public utilities, the
owner or operator shall reserve sufficient and suitable space for
the use of disabled persons.
SECTION 2. In case of public conveyance, devices such as
the prominent display of posters or stickers shall be used to
generate public awareness of the rights of the disabled and
foster understanding of their special needs. Special bus stops
shall be designed for disabled persons. Discriminating against
disabled persons in the carriage or transportation of passengers
is hereby declared unlawful.
xxx xxx xxx
SECTION 4. Any person violating any provision of this Act
or of the rules and regulations promulgated hereunder shall,
upon conviction by a court of competent jurisdiction, suffer the
penalty of imprisonment of not less than one month but not more
than one year or a fine of P2,000 to P5,000 or both, at the discretion
of the court: Provided, That in the case of corporations,
partnerships, cooperatives or associations, the president,
manager or administrator, or the person who has charge of the
construction, repair or renovation of the building, space or
utilities shall be criminally responsible for any violation of this Act
and/or rules and regulations promulgated pursuant thereto.”
CHAPTERS 225
MAGNA CARTA OF PERSONS WITH D18AIM JTY
Free Use of Government Recreational or Sports Centers

Recreational or sports centers owned or operated by the
Government shall be used, free of charge, by marginalized persons
with disability during their social, sports or recreational activities. 7
Free Postal Charges
Persons with disability are entitled to free postal charges on the
following items:
a) articles and literatures sent by mail within the
Philippines and abroad, like books and periodicals, orthopedic
and other devices, and teaching aids for the exclusive use of
the person with disability; and
b) aids and orthopedic devices for the disabled sent by
abroad by mail for repair.8
This privilege, however is available only to marginalized Filipino
citizens with disability who are:9
(a) Certified to be a person with disability by the Social
Welfare and Development Office of the municipality, city
government unit or representative of the Department of Social
Welfare and Development in the municipality or city
government unit where the person with disability is a resident;
(b) Holders of accreditation certificate issued by the
Postmaster General or representative of the Philippine Postal
Corporation.
It is also required that the envelop or wrapper of the franked
mail must on the left upper corner state the name and complete
address of the sender, and on the upper right corner the words “Free
Matter for Disabled Person.” Private or unauthorized use to avoid
payment of postage is penalized by a fine or imprisonment or both.10
7Sec. 37, ibid.

8Sec. 24, Magna Carta of Persons With Disability, as amended.
^Marginalized disabled person with disability is one who lack access to rehabilitation services
and opportunities to be able to participate fully in socioeconomic activities and who have no means of
livelihood or whose income fall below the poverty threshold (Rule, VI, Rules Implementing the Magna
Carta of Persons With Disability).
10Rule, VI, Rules Implementing the Magna Carta of Persons With Disability.
Right to Equal Opportunity for Employment

Persons with disability have the right to equal opportunity for suitable
employment.11 To carry out this objective, the law mandates that 5% of all
casual emergency and contractual positions in the Departments of Social
Welfare and Development; Department of Health; Department of Education;
and other government agencies, offices or corporations engaged in social
development should be reserved for persons with disability. 12
Right to Equal Terms and Conditions of Employment

Persons with disability, if they are qualified, 13 are entitled to the
same terms and conditions of employment and the same compensation,
privileges, benefits, fringe benefits, incentives or allowances as a qualified
able-bodied person.
BERNARDO V. NLRC
310 SCRA 186
FACTS: X and several others who are deaf-mutes were
hired on various periods from 1988 to 1993 by FEBTC as
Money Sorters and Counters through a uniformly worded
Employment Agreement for Handicapped Workers. Upon
expiration of their employment contracts, the FEBTC
terminated their employment. X and the other deaf-mute
employees claimed that they cannot be terminated from their
employment because they are regular employees of the
FEBTC, considering that their task as Money Sorters and
Counters was necessary and desirable to the business of a
bank.
On the other hand, FEBTC maintained that X, et al.,
were not regular employees because they were engaged as
special workers pursuant to Article 80 of the Labor Code.
Furthermore, FEBTC claimed that their employment was
“Suitable employment refers to jobs or occupations appropriate to the needs of

persons with disability and which enhance their skills and provide them with better
opportunities for employment (Sec. 1, Rule I, Rules Implementing the Magna Carta of
Persons With Disability).
12Sec. 5, Magna Carta of Persons With Disability, as amended.
13Qualified employees with disability refer to those who can perform the essential
functions of the employment position they hold or desire to hold, with or without
reasonable accommodations. As to what functions of a job are essential will depend upon
the employer’s judgment. If an employer has prepared a written job description before
advertising or interviewing applicants, the job description will be considered evidence of
the essential functions of the job (Sec. 1, Rule I, Rules Implementing the Magna Carta of
Persons With Disability).
CHAPTER. S 227
MAGNA CARTA OF PERSON'S WTTH
DISABILITY
smerely an accommodation to the request cf government officials and dtic-

tnioded citizens. They were told from the start, with me assistance of
government representatives that they could not become regular
employees because there were no plantilla positives for money sorters and
counters whose task used to be performed by tellers. Further, FEETC
claimed that their contracts were renewed several times, not because of
need, but merely for humanitarian reasons.
ISSUE: Whether cr not X and the other deaf-mute employees are
regular employees.
HELD: X and the other deaf-mute employees are regular
employees of the FEBTC. While their Employment Contracts
indubitably conform with Article 280 of the Labor Code, succeeding
events and the enactment of Republic Act No. 7277 (the Magna Carta
for Disabled Persons;, however, justify the application of Article 280
of the Labor Code. The fact that the Employment Contracts have
been renewed and other deaf-mutes have been hired lead to the
conclusion that their tasks were beneficial and necessary to FEBTC.
More importantly, these facts show that they were qualified to
perform the responsibilities of their positions. In other words, their
disability did not render them unqualified or unfit for the tasks
assigned to them. In this light, the Magna Carta for Disabled Persons
mandates that a qualified disabled employee should be given the
same terms and conditions of employment as a qualified able-bodied
person.
The fact that the employees were qualified disabled persons
necessarily removes the Employment Contracts from the ambit of
Article 80 of the Labor Code. Since the Magna Carta accords them
the rights of qualified able-bodied persons, they are thus covered
by Article 280 of the Labor Code. As regular employees, therefore,
X and the other deaf-mute employees are entitled to security of
tenure; that is, their services may be terminated only for a just or
authorized cause. Considering, however, that the job of money
sorting is no longer available because it has been assigned back to
the tellers to whom it originally belonged, reinstatement cannot be
ordered. In lieu thereof, separation pay is awarded, in addition to
back wages.
Rif/hi to Sheltered. Employment

The Department of Labor and Employment shall provide training for persons
with disability so that they can qualify for sheltered employment.1'1
"Mi r 2, Rule II, Ruins Implementing the Magna Carta of Persons With Dis-
“W Illy
I
AOKAHIAN LAW AND KOCIAL LKOIKLATJON
Sheltered Employment refers productive work through workshops

with Hpecial CacilitieH, income-producing projects or homework HchemeH
designed to give the person with disability opportunity to earn a living and
acquire a working capacity required in open industry. "
Right to Be Hired as Apprentices or Learners

Persons with disability are eligible for apprenticeship or learnership,
as long as their handicap will not effectively impede the performance of the
job operations which they will handle."1
Right to Quality Education

Learning institutions are obliged to admit all persons with special
needs whether in academic, vocational or technical courses and other
training programs, except in the following instances:
a) If the learning institutions have already accepted persons

with special needs and further acceptance will render the teaching
personnel and facilities less effective.
b) If the learning institutions do not meet the criteria set by

the Bureau of Special Education and are not included in the financial
assistance program.
It is unlawful for any learning institution to deny a person admission

to any course it offers simply because of handicap or disability.17
Right to Educational Assistance

Persons with disability are entitled to educational assistance so that
they can pursue primary, secondary, tertiary, post tertiary, as well as
vocational or technical education, in both public and private schools.
The educational assistance can be in the form of scholarships,

grants, financial aids, subsidies and other incentives, including support
for books, learning materials, and uniform allowance to the extent
feasible.
CHA1TKR H
MAGNA CARTA OK PERSONS Wi l l I DISABILITY 229
To he entitled to the educational assistance, the person with

disability must meet minimum admission requirements set by the
Department of Education, the Commission on Higher Education, or
the Technical Education and Skills Development Authority. 18
Right to Health Services
With regard to health services, the National Government is
mandated to:
(a) Provide an integrated health service for persons with
disability, such as:
(i) 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
(ii) medical treatment and rehabilitation.10
(b) Institute a national health program for the purpose of:
(i) prevention of disability, whether occurring pre-
natally or post-natally;
(ii) recognition and early diagnosis of disability; and
(iii) early rehabilitation of the persons with disability.-”
(c) Establish medical rehabilitation centers in government
provincial hospitals, formulate and implement a program to enable
marginalized persons with disability to avail of free rehabilitation
services in government hospitals.21
Auxiliary Social Services
Municipal and city governments are obliged to develop and
implement programs on auxiliary social services that will respond to the
needs of marginalized persons with disability, which program shall be
composed of the following:
18Sec. 32(h), Magna Carta of Persons With Disability, as amended; Sec. 6, Rule
IV, Rules Implementing R.A. No. 9442.
,0Sec. 20, Magna Carta of Persons With Disability, as amended.
20Sec. 18, ibid.
2’.Sec. 19, ibid.
(a) assistance in the acquisition of prosthetic devices and

medical intervention of specialty services;
(b) provision of specialized training activities designed to
improve functional limitations of persons with disability related
to communication skills;
(c) development among persons with disability of a pos-
itive self-image through the provision of counseling, orientation,
and mobility and strengthening daily living capability;
(d) provision of family care services geared towards
developing the capability of families to respond to the needs of the
disabled members of the family;
(e) provision of substitute family care services and the
facilities therefor for abandoned, neglected, abused and
unattached persons with disability who need custodial care;
(f) provision of after care and follow-up services for the
continued rehabilitation in a community-based setting of persons
with disability who were released from residential care or
rehabilitation centers; and
(g) provision of day care services for disabled children of
pre-school age.22
Television stations are 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.23
Telephone companies are 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.24
Mobility
The following persons with disability can be allowed to drive motor

vehicle:26
(a) Partially blind — person with poor visual acuity due to
partial loss of vision/sight;
“Sec. 21, Magna Carta of Persons With Disability, as amended.

“Sec. 22. ibid.
CHAPTER 8 231
(b) Orthopedically-impaired — person with amputated

left or right leg; amputated left or right arm; post-polio victims;
paralyzed legs; weak legs but not paralyzed;
(c) Speech and hearing impaired — person unable to
speak but can partially hear.*5
Persons with disability who apply for driver’s license must comply
with the following requirements:
(a) Medical Certificate/Itecommendation from a govern-
ment accredited physician;
(b) Written and practical examinations;
(c) Student permit and driving instruction for 60 days;
Applicants with disability may use a customized vehicle provided
that it meets the standard/specifications set and duly requested at
Land Transportation Office.2’
Suffrage
A qualified person with disability may register as a voter by
accomplishing the required voter’s affidavit, and such other forms
through:
(i) Any relative within the fourth civil degree of consan-
guinity or affinity; or
(ii) Any member of the board of election inspectors.25
During the elections, a person with disability shall be allowed
to be assisted by a person of his choice from among the following:
(i) A relative, by affinity or consanguinity, within the
fourth civil degree;
(ii) Any person of his confidence, whether or not
belonging to the same household; or
(iii) Any member of the board of election inspectors.25
“Sec. 1, C, Rule, VII, Rules Implementing the Magna Carta of Persons With
Disability.
27Sec. 1, B, Rule, VII, Rules Implementing the Magna Carta of Persons With
Disability.
“Sec. 1,1.1, Rule, VIII. ibid.
“Sec. 1,1.2, Rule, VIII, ibid.
Freedom of Expression
Persons with disability have the right to participate in
processions, rallies, parades, demonstrations, public meetings, and
assemblages or other forms of mass or concerned action held in
public.30
Self-Organization
Persons with disability have the right to form organizations or
associations that promote their welfare and advance or safeguard their
interests.31
Discrimination against persons with disability, prohibited

Discrimination in Employment
Discrimination against a qualified person with disability with
regard to job application procedures; the hiring, promotion, or discharge
of employees; employee compensation, job training, and other terms and
conditions of employment is prohibited.
The following constitute acts of discrimination with respect to

employment:
(a) Limiting, segregating or classifying a disabled job

applicant in such manner that adversely affects his work op-
portunities;
(b) Using qualification standards, employment tests or

other selection criteria that rule out or tend to rule out a person
with disability, unless such standards, tests or other selection
criteria are shown to be job-related for the position in question
and are consistent with business necessity;
(cl Utilizing standards, criteria or methods of adminis-

tration that:
(i) have the effect of discrimination on the basis of
disability; or (ii)
(ii) perpetuate the

discrimination of others who are
subject to common administrative
control.
3f,Sec. 30, Magna Carta of Persona With Disability, as amended.
3lScc. 31, ibid.
CHAPTER 8 £33
(d) Providing a lower compensation, salary, wage or

other forms of remuneration and fringe benefits to a
qualified employee with disability as compared to an able-
bodied worker performing the same type and amount of
work;
(e) Favoring an able-bodied employee over a
qualified employee with disability with respect to
promotion, training opportunities, study and scholarship
grants, solely on account of the latter’s disability;
(f) Re-assigning or transferring an employee with
disability to a job or position he cannot perform by reason
of his disability;
(g) Dismissing or terminating the services of an
employee with disability by reason of his disability;
(h) Failing to select or administer in the most
effective manner employment tests which accurately reflect
or measure the skills, aptitude or positive traits of the
applicant or employee with disability rather than the
impaired sensory, manual or speaking capabilities of such
applicant or employee, if any; and
(i) Excluding employees with disability from
membership in labor unions or similar organizations. 32
Discrimination in the Use of Public Accommodations and Services

The following constitute acts of discrimination in the use
of public accommodations and services:33
“Sec. 1, Rule, II, Rules Implementing the Magna Carta of Persons With Disability.
33Public accommodations and services include the following:
a) 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;
b) a restaurant, bar, or other establishment serving food or drink;
c) a motion picture, theater, concert hall, stadium, or other place of exhibition
or entertainment;
d) an auditorium, convention center, lecture hall, or other place of public
gathering;
e) a bakery, grocery store, hardware store, shopping center, or other sales or
rental establishment;
234 AGRARIAN LAW AND SOCLAL LEGISLATION
(a) denying a passenger with disability to enter the

terminal, station or depot premises;
(b) denying a passenger with disability to purchase

travel tickets, prepare waybills, secure boarding passes, claim
tags for baggages and other transactions which an able-bodied
passenger may do;
(c) failure to provide accessibility features such as
ramps, signages and stickers inside the terminal, station or
depot;
(d) failure to designate seats in the waiting area for
passengers with disability, if there are seats available;
(e) denying a passenger with disability to use the toilet/
washroom or failure to make such facilities accessible.^
f; 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;
g) a terminal, depot, or other station used for specified public transportation;
h; a museum, gallery, library or other place of public display or collection;
i) a park, zoo, amusement park, or other place of recreation;
j) a nursery, elementary, secondary, undergraduate, or post-graduate private
school, or other place of education;
k) a gymnasium, health spa, bowling alley, golf course; or
l) other place of exercise or recreation (Sec. 35, Magna Carta of Persons With
Disability).
^Sec. 36, Magna Carta of Persons With Disability; Sec. 3, Rule EX, Rules Im-
plementing R.A. No. 7277.
a) 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;
b; a restaurant, bar, or other establishment serving food or drink;
c) a motion picture, theater, concert hall, stadium, or other place of exhibition
or entertainment;
d) an auditorium, convention center, lecture hall, or other place of public
gathering;
e) a bakery, grocery store, hardware store, shopping center, or other sales or
rental establishment;
0 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;
g) a terminal, depot, or other station used for specified public transportation;
h) a museum, gallery, library or other place of public display or collection;
i) a park, zoo, amusement park, or other place of recreation;
j) a nursery, elementary, secondary, undergraduate, or post-graduate private
school, or other place of education;
CHAPTERS 235
Ridicule of persons with disability, prohibited

Public ridicule is the act of making fun or contemptuous imitating or
making mockery of persons with disability whether in writing, or in words,
or in action due to their impairment.
The following acts constitute public ridicule:
(a) 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;
(b) Making mockery of a person with disability whether in oral
or in writing;
(c) Imitating a person with disability in public gath-
erings, 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;
No individual, group or community shall execute any of
these acts of ridicule against persons with disability in any time
and place which could intimidate or result in loss of self-esteem
of the latter.3*
Villification of persons with disability, prohibited
Vilification is the act of:
(a) Uttering slanderous and abusive statements
against a person with disability, such as but not limited to:
(i) calling a person by his disability in public
which results to humiliation;
(ii) using the disability of a person as an
example in a manner that is embarrassing and
humiliating to the dignity of persons with disability.
(b) Inciting in public, hatred, serious contempt, or
severe ridicule of persons with disability.
k) a gymnasium, health spa, bowling alley, golf course; or

l) other place of exercise or recreation (Sec. 35, Magna Carta of Persons
llip/ini/rrif n c n m on rl a
Any individual, group or community is prohibited from vilifying any

person with disability which could result into loss of self-esteem of the
latter.®
Tax incentives for benefactors

Persons caring for and living with a person with disability are
entitled to the following tax incentives:
(a) Single persons shall be considered as head of family and

shall be entitled to one basic personal exemption equivalent to
Twenty-five thousand pesos (P25,000), or as allowed thereafter under
the National Internal Revenue Code.
(b) Married persons who have a child or children with

disability dependent on him for support, are entitled to an additional
exemption of Eight Thousand pesos (P8,000) per qualified dependent
(not exceeding four).
NOTE: 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, unless he/she legally adopts the
same.
(c) Single or legally separated persons with child or chil-

dren with disability dependent on him for support, are entitled to
an additional exemption of Eight Thousand pesos (P8,000) per
qualified dependent (not exceeding four).
NOTE: A solo parent is not entitled to the additional exemption

if he/she takes care of a person with disability who is not his/her child,
unless he/she legally adopts the same.
(d) Grandparents not legally separated or a widow/
widower/solo parent are entitled to a basic personal exemption of
Thirty-two thousand pesos (P32,000) [the personal exemption
granted to a married individual],
(e) Grandparents legally separated or a solo parent, are

entitled to the basic personal exemption accorded to a head of the
family in the amount of Twenty-five thousand pesos (P25,000). 36
36 Sec. 8, Rule V, Rules Implementing R.A. No. 9442.

CHAPTER 8 237
Individuals or nongovernmental institutions establishing

homes, residential communities or retirement villages solely to
suit the needs and requirements of persons with disability are
entitled to:
(a) Realty tax holiday for the first five years of
operation; and
(b) Priority in the building and/or maintenance of provincial or
municipal roads leading to the aforesaid home, residential community
or retirement village. The city and municipal government concerned
where the homes, residential communities or retirement villages is
located shall issue the implementing guidelines for the availment of this
incentives.37
Establishments granting the 20% discount are entitled to tax deductions
based on the net cost of the goods sold or services rendered under the
(a) the cost of the discount should be claimed as deduction from
gross income for the same taxable year that the discount is granted;
(b) the total amount of the claimed tax deduction net of value-
added tax if applicable, should be included in their gross sales receipts
for tax purposes and shall be subject to proper documentation and to the
provisions of the National Internal Revenue Code, as amended.38
Donations, bequests, subsidies or financial aids made to organizations
of persons with disability or to government agencies engaged in the
rehabilitation of persons with disability are exempt from the donor’s tax, and
shall be allowed as deductions from the donor’s gross income for purposes of
computing the taxable income subject to the provisions of Section 29 (h) of
the Code.
Donations from foreign countries are also exempt from taxes and duties
on importation subject to the provisions of Section 105 of the Tariff and
Customs Code of the Philippines, as amended, Section 103 of the NIRC, as
amended and other relevant laws and international agreements.39
"Sec. 6.12, ibid.

“Sec. 6.12, ibid.
“Sec. 42, Magna Carta of Persons With Disability, as
amended.
Local manufacturing or technical aids and appliances for

use by persons with disability are considered as a preferred area
of investment and, as such, shall enjoy the rights, privileges and
incentives as provided in said Code such as, but not limited, to
the following:
(a) repatriation of investments;
(b) remittance of earnings;
(c) remittance of payments on foreign contracts;
(d) freedom from expropriations;
(e) freedom from requisition of investment;
(f) income tax holiday;
(g) additional deduction for labor expense;
(h) tax and duty exemption on imported capital
equipment;
(i) tax credit on domestic capital equipment;
(j) exemption from contractor’s tax;
(k) simplification of customs procedures;
(l) unrestricted use of consigned equipment;
(m) employment of foreign nationals;
(n) tax credit for taxes and duties on raw materials;
(o) access to bonded manufacturing/traded
warehouse system;
(p) exemption from taxes and duties on imported
spare parts; and
(q) exemption from wharfage dues and any export
tax, duty, impost and fee.40
Penal sanctions
Violation of the Magna Carta for Persons With Disability entails the
following penalties:
40Sec. 42 (c), ibid.

WUih. ________ .
CHAPTER 8 239
(a) For the first violation — finerangingfrom P50.000.00

to P100,000.00, or imprisonment ranging from six (6) months to
two (2) years, or both at the discretion of the court; and
(b) For subsequent violation — a fine ranging from
P100,000.00 to P200,000.00 or imprisonment ranging from two
(2) years to six (6) years, or both at the discretion of the court.
(c) For abuse of the privileges — imprisonment of not
less than six (6) months or a fine ranging from P5,000.00 to
P50.000.00, or both, at the discretion of the court.
(d) If the violator is an alien or a foreigner, he shall be
deported immediately after service of sentence without further
deportation proceedings.41
‘Sec. 46, Magna Carta of Persons With Disability, as amended by R.A. No.
9442.
CHAPTER 9
THE SPECIAL PROTECTION OF CHILDREN
AGAINST ABUSE, EXPLOITATION AND
DISCRIMINATION ACT

[as amended by Republic Act Nos. 7658 and 9231]
Purpose of the Law

Republic Act No. 7610 was enacted to provide special pro-
tection to children from all forms of abuse, neglect, cruelty,
exploitation, discrimination, and other conditions prejudicial to
their development, including child labor and worst forms of child
labor. It supplies the inadequacies of existing laws treating crimes
committed against children, namely, the Revised Penal Code, and
the Child and Youth Welfare Code.
The law, however, should not be taken to mean that wayward
youths should be cuddled. The deviant conduct of the youth should
be corrected rather than take the cudgels for them. The law should
be applied only and strictly to actual child abusers, lest [th]e
[Court] regressfes] to a culture of juvenile delinquency and errant
behavior.1
Meaning of children
The term “children” refers to persons who are:
(a) below eighteen (18) years of age; or
(b) over (18) years of age, but unable to fully take care
or protect themselves from abuse, neglect, cruelty,
exploitation
Amanquiton v. People, 596 SCRA 366.

1
CHAPTER 9 241
THE SPECIAL PROTECTION OF CHILDREN AGAINST ABUSE,
EXPLOITATION AND DISCRIMINATION ACT
or discrimination due to physical or mental disability or
condition.2
Employment of Children
General Rule: Children below fifteen (15) years old cannot be
employed, permitted or suffered to work in any public or private
establishment.3
Exceptions\ Children below fifteen (15) years of age may be
employed under the following circumstances:
(a) When a child works directly under his parents or legal
guardian, subject to the following conditions:
(i) Only members of his family are employed
thereat;
(ii) The employment does not endanger the child's
life, safety, health, and morals, or impair his normal
development;
(iii) The parent or legal guardian provides the child
with the prescribed primary or secondary education; and
(iv) A work permit is first obtained from the
Department of Labor and Employment.
(b) When the employment of the child is essential in public
entertainment or information such as cinema, theater, radio,
television or other forms of media, subject to the following
conditions:
(i) An employment contract, duly approved by the
Department of Labor and Employment, must be executed by
the parents or legal guardian of the child;
(ii) The employer must ensure the protection, health,
safety, morals, and normal development of the child;
(iii) The employer must institute measures to prevent
the child’s exploitation or discrimination;
’Sec. 3, (a). Special Protection of Children Against Abuse, Exploitation and

Discrimination Act, as amended.
’Sec. 12. ibid.
(iv) The employer must formulate and implement

a continuing program for training and skills acquisition
of the child, subject to the approval and supervision of
competent authorities; and
(v) A work permit must be obtained from the De-
partment of Labor and Employment.1
NOTE: 1. Work permit is not necessary for spot extras or

those being cast outright on the day of the filming or taping.
Instead, the employer shall file a notice with the Regional Office
where the work is to be performed that it will undertake activities
involving child work. The notice shall be in the form prescribed by
the Department and shall state the approximate number of child
workers to be employed, the date, place and time the work is to be
performed, and an undertaking that the employment shall be in
conformity with Republic Act No. 9231 and these Rules.* * * 6
2. The work permit is valid for a maximum period of one
(1) year.6
Suspension or cancellation of the work permit

The Regional Director of the Department of Labor and
Employment may cancel the work permit of the child on the
following grounds:
(a) Fraud or misrepresentation in the application for
work permit;
(b) Violation of the terms and conditions of the child’s
employment contract;
(c) Failure to institute measures to ensure the protec-
tion, health, safety, morals, and normal development of the
child;
(d) Failure to formulate and implement a program for
the education, training and skills acquisition of the child; or
■■Sec. 12, Special Protection of Children Against Abuse, Exploitation and Dis-
crimination Act, as amended.
6Sec. 13, Rules and Regulations Implementing R.A. No. 9231.
6Sec. 12, ibid.

CHAPTER 9 243
(e) Depriving the child of access to formal, non-formal or

alternative learning systems of education.1
Hours of Work of Working Children

BELOW 15 YEARS OLD Not more than four (4) hours/
day
Not more than twenty (20)
hours/week
No work between 8:00 P.M.
and 6:00 A.M.
Not more than eight (8) hours/
15-18 YEARS OLD
day
Not more than forty (40) hours/
week
No work between 10:00 P.M.
and 6:00 A.M.7 8
Prohibited child employment

Children cannot be employed in any of the following:
(a) As a model in any advertisement which directly or
indirectly promote:
(i) alcoholic beverages or intoxicating drinks;
(ii) tobacco and its by-products;
(iii) gambling;
(iv) violence; or
(v) pornography.'
(b) In worst forms of labor, particularly:
(i) Slavery or acts similar to slavery, such as sale and
trafficking of children, debt bondage and serfdom, forced
labor, or for use in .armed conflict;
7Sec. 22, ibid.

8Sec.12-A, Special Protection of Children Against Abuse, Exploitation
and Discrimination Act, as amended.
'Sec. 6, Rules Implementing R.A No, 9231.
i44 AGRARIAN LAW AND SOCIAL LEGISLATION
(ii) Prostitution, pornographic performances, or

production of pornography;
UiO Illegal or illicit activities, including the produc-
tion and trafficking of dangerous drugs and volatile sub-
stances prohibited under existing laws;
(iv) Jobs which degrade or demean the intrinsic
worth and dignity of a child as a human being;
(v) Jobs which are highly stressful
psychologically, or which expose the child to physical,
emotional or sexual abuse;
(vi) Jobs which are performed underground,
underwater or at dangerous heights;
(vii) Jobs which involve the use of dangerous
machinery, equipment and tools such as power-driven
or explosive power-actuated tools; or
(viii) Jobs which expose the child to physical
danger such as, but not limited to the dangerous feats
of balancing, physical strength or contortion, or which
requires the manual transport of heavy loads;
(ix) Jobs which expose the child to hazardous
working conditions, elements, substances, co-agents or
processes involving ionizing, radiation, fire,
flammable substances, noxious components and the
like, or to extreme temperatures, noise levels, or
vibrations;
(x) Jobs performed under particularly difficult
conditions;
(xi) Jobs which expose the child to biological
agents such as bacteria, fungi, viruses, protozoans,
nematodes and other parasites; or
(xii) Jobs which involve the manufacture or hand-
ling of explosives and other pyrotechnic products.10
t0Sec. 12-D, Special Protection of Children Against Abuse, Exploitation and Discrimination
Act, as amended.
CHAPTER 9 245
THE SPECIAL PROTECTION OF CHILDREN AGAINST ABUSE
Handling of child’s income or property
The income of the working child belongs to him alone. It shall be used
primarily for his support, education or skills acquisition and secondarily to the
collective needs of the family to the extent of 20% of the income.
The income of the working child as well as any property acquired through
the work of the child shall be administered by both parents.
In the absence or incapacity of either of the parents, the other parent
shall administer the same.
In case both parents are absent or incapacitated, the income and property
of the child shall be administered by the following:
(a) The surviving grandparent. In case several grandparents
survive, the one designated by the court taking into account all relevant
considerations, especially the choice of the child over seven (7) years of
age, unless the grandparent chosen is unfit;
(b) The oldest brother or sister, over 21 years of age, unless unfit,
or disqualified; and
(c) The child’s actual custodian over 21 years of age, unless
unfit or disqualified.11 *
If the child earns at least P200,000.00 a year, the administrator is
required to set up at least thirty percent (30%) of the earnings as a trust
fund, to be accounted for twice a year. Full control over the trust fund should
be turned over to the child upon reaching the age of majority, i.e., 18 years
old.15
If the child earns less than P200,000.00 a year, at least 30% of the income
should be deposited in a savings account.13
Child abuse - a criminal offense

To ensure that children are protected, child abuse and other acts of
child exploitation are declared as criminal offenses. Such criminal offenses
can refer to:
nSec. 12-B, ibid.', Sec. 17, Rules and Regulations Implementing R.A. No. 9231.
,2Sec.12-C, Special Protection of Children Against Abuse, Exploitation and
Discrimination Act, as amended.
(a) Child prostitution or sexual abuse;

(b) Attempt to commit child prostitution;
(c) Child trafficking;
(d) Attempt to commit child trafficking;
(e) Obscene publication and indecent shows;
(0 Cruelty, physical abuse, neglect, psychological
and emotional maltreatment;
(g) Any act by deeds or words which debases,
degrades or demeans the intrinsic worth and dignity of
a child as a human being;
(h) Unreasonable deprivation of his basic needs
for survival, such as food and shelter; or
(i) 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.14
Child prostitution or sexual abuse

Child prostitution and sexual abuse exist when a child, whether
male or female, indulges in sexual intercourse or lascivious conduct:
(.a) for money or any other consideration; or
(b) due to coercion or influence of any adult, syndicate or
group.15
Criminal liability for child prostitution and other sexual abuse is
imposed upon the following:
(a) Persons who promote, facilitate, or induce child
prostitution through any of the following acts:
(i) Acting as a procurer of a child prostitute;
(ii) Inducing a person to be a client of a child
prostitute by means of written or oral advertisements or
other similar means; * 16
"See. 3 (b). Special Protection of Children Against Abuse,

Exploitation and Discrimination Act, as amended.
16Sec. 5, ibid.
CHAPTER 9 247
(iii) Taking advantage of influence or relationship

to procure a child as prostitute;
(iv) Forcing a child to become a prostitute; or
(v) Giving monetary consideration, goods or

other pecuniary benefit to a child with intent to engage
such child in prostitution.
(b) Persons who engage in sexual intercourse or
lascivious conduct with a child prostitute.
NOTE: 1. Lascivious conduct is the intentional touching,
either directly or through clothing, of the genitalia, anus, groin,
breast, inner thigh, or buttocks, or the introduction of any object
into the genitalia, anus or mouth of any person, whether of the
same or opposite sex, with an intent to abuse, humiliate,
harass, degrade, or arouse or gratify the sexual desire of any
person, bestiality, masturbation, lascivious exhibition of the
genitals or pubic area of a person.16
2. When the victim is under twelve (12) years of age, the
perpetrator shall be prosecuted for rape under Article 335,
paragraph 3, and Article 336 of the Revised Penal Code, for rape
or lascivious conduct, as the case may be.
(c) Persons who derive profit or advantage from child
prostitution, whether as manager or owner of the establishment where
the prostitution takes place, or of the sauna, disco, bar, resort, place of
entertainment or establishment serving as a cover or which engages in
prostitution in addition to the activity for which the license has been
issued to said establishment.
The penalty for the aforementioned criminal acts is reclusion temporal in
its medium period to reclusion perpetua. The penalty for lascivious conduct
when the victim is under twelve (12) years of age is reclusion temporal in its
medium period.17
Attempt to commit child prostitution

Mere attempt to commit child prostitution is punishable under the law.
Attempt to commit child prostitution is committed in the following manner:
,6Sec. 2 (h), Rules and Regulations Implementing R.A. No. 7610: People v. Ch- ingh, 645 SCRA
573.
'’Sec. 5, Special Protection of Children Against Abuse, Exploitation and Dis- crimination Act,
as amended.
-18 AUKAUIAN LAW AND SOCIAL LMCISLATION
UO when any person who, not being u relative of a child, is found

alone with the said child inside the room or cubicle of a house, an inn,
hotel, motel, pension house, upartelle or other similar establishments,
vessel, vehicle or any other hidden or secluded area 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) when any person is receiving services from a child in a sauna
parlor or bath, massage clinic, health club and other similar
establishments.'"
The penalty for attempt to commit child prostitution is two (2) degrees
lower than that of the consummated child prostitution.
Child Trafficking
There is child trafficking when a person engages in trading and

dealing children including, but not limited to, the act of buying and selling of
a child for money, or for any other consideration, or barter.
The penalty for child trafficking is reclusion temporal to reclusion
perpetua. The penalty shall be imposed in its maximum period when the
victim is under twelve (12) years of age.8 19
Attempt to commit child trafficking

Just like child prostitution, attempt to commit child trafficking is
punishable. Attempt to commit child trafficking is committed in the following
manner:
(a) When a child travels alone to a foreign country:
(i) without valid reason therefor; and
(ii) without clearance from the Department of Social
Welfare and Development or written permit from the child’s
parents or legal guardian.
(b) When a pregnant mother executes an affidavit of consent
for adoption of her child for a consideration;
(c) When a person, agency, establishment or child-care
institution recruits women or couples to bear children for the purpose
of child trafficking;
l8Sec.
6,Sec.
,!)
ibid.
7.
ibid.
CHAPTER 9 249
(d) 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
(e) When a person engages in the act of finding children among
low-income families, hospitals, clinics, nurseries, daycare centers, or
other child-caring institutions who can be offered for the purpose of child
trafficking.
The penalty for attempt to commit child trafficking is two
(2) degrees lower than that prescribed for the consummated child trafficking.20
Obscene publications and indecent shows

What is punishable here is the act of hiring, employing, using, persuading,
inducing or coercing a child to:
(a) perform in obscene exhibitions, indecent shows, whether live or in
video;
(b) act as model in obscene publications or pornographic materials; or
(c) sell or distribute obscene publications or pornographic materials.
The penalty for these acts is prision mayor in its medium period. If the
child used as a performer, subject or seller/distributor is below twelve ( 12)
years of age, the penalty is prision mayor in its maximum period.
Criminal liability extends to any ascendant, guardian, or person
entrusted in any capacity with the care of a child who causes or allows the
child to be employed or to participate in an obscene play, scene, act, movie
or show.21
Other acts of child abuse
Aside from child prostitution, sexual abuse, and child trafficking, also
punishable are other acts of child abuse, such as:
(a) Keeping in his company a minor, twelve (12) years or under
or who is ten (10) years or more his junior in any
public or private place, hotel, motel, beer joint, discotheque,

cabaret, pension house, sauna or massage parlor, beach and/or
other tourist resort or similar places.
NOTE: 1. The penalty for this is prision mayor in its maximum

period and a fine of not less than Fifty thousand pesos (P50,000).
2. The owner, manager or one entrusted with the operation of
such public or private place, including residential places, who allows a
person to take along with him a minor to such places is also criminally
liable.22
3. This provision does not apply to a person who is related to
the child within the fourth degree of consanguinity or affinity or any
bond recognized by law, local custom and tradition or acts in the
performance of a social, moral or legal duty.
(b) Inducing, delivering or offering a minor to any one

prohibited to keep or have in his company a minor;
NOTE: 1. The penalty for this is prision mayor in its medium

period and a fine of not less than Forty thousand pesos (P40,000).
2. If the perpetrator is an ascendant, stepparent or guardian of
the minor, the penalty is prision mayor in its maximum period, a fine
of not less than Fifty thousand pesos (P50,000), and the loss of parental
authority over the minor.
(c) Forcing a street child or any other child to;
(i) Beg or use begging as a means of living;
(ii) Act as conduit or middlemen in drug trafficking

or pushing; or
(iii) Conduct any illegal activities.

NOTE: The penalty for this is prision correccional in its
medium period to reclusion perpetua.
(d) Commission by any parent or guardian of the acts

covered by Article 59 of Presidential Decree No. 603, to wit:
CHAPTER 9
25
1
THE SPECIAL PROTECTION OF CHILDREN AGAINST
(i) ABUSE
Concealment or abandonment of the child with
EXPLOITATION
intent to make theAND
child DISCRIMINATION
lose his civil status; ACT
(ii) Abandonment of the child which deprives him of
the love, care, and protection he needs;
Selling the child to another person;
(iii)
(iv)Neglecting the child by not giving him the
education which the family’s station in life and financial
conditions permit;
(v) Failing or refusing to enroll the child in an
educational institution without justifiable ground;
(vi) Allowing the child to be absent from school for
more than 20 school days without justifiable reason;
(vii) Inflicting cruel and unusual punishment upon the
child or deliberately subjecting the child to indignation and
excessive chastisement that embarrass or humiliate him;
(viii) Causing or encouraging the child to lead an immoral or
dissolute life;
(ix) Permitting the child to possess, handle or carry a
deadly weapon, regardless of its ownership; and
(x) Allowing or requiring the child to drive without a
license or with a license which the parent knows to have been
illegally procured.23
NOTE: The penalty for this is prision mayor in its minimum period.
Sanctions for erring establishments

Establishments which promote or facilitate child prostitution and other sexual
abuse, child trafficking, obscene publications and indecent shows, and other acts of
abuse shall be subjected to the following sanctions:
(a) immediate closure;
”Sec. 10, Special Protection of Children Against Abuse, Exploitation and

Dis- crimination Act, as amended.
(h) cancellation of their authority or license to operate;

and,
(c) prosecution of the owner or
manager Jurisdiction
Original jurisdiction over all cases involving offenses punishable
under Republic Act No. 7610, as amended, is vested with the family
courts.
In cities or provinces where there are no family courts, the

regional trial courts and the municipal trial courts shall have
concurrent jurisdiction depending on the penalties prescribed for the
offense charged.23 *
Who may file a complaint

Complaints on cases of unlawful acts committed against children
may be filed by the following:
(a) Offended party;

(b) Parents or guardians;
(c) Ascendant or collateral relative within the third
degree of consanguinity;
(d) Officer, social worker, or representative of a licensed

child-caring institution;
(e) Officer or social worker of the Department of Social

Welfare and Development;
(f) Barangay chairman of the place where the violation

occurred, where the child is residing or employed; or
(g) At least three (3) concerned, responsible citizens

where the violation occurred.25
Protective custody of the child

The child-victim shall be immediately placed under the protective
custody of the Department of Social Welfare and Development
23Sec. 11,
ibid.
“Sec. 26-
A, ibid.
CHAPTER 9 253
pursuant to Executive Order No. 56, series of 1986. Custody pro-

ceedings shall be in accordance with the provisions of
Presidential Decree No. 603.27
Confidentiality
It is unlawful for any editor, publisher, 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 the movie industry,
to cause undue and sensationalized publicity of any case of
violation of Republic Act No. 7610 which results in the moral degradation and
suffering of the offended party.28
Protection of children in situations of armed conflict

The Policy of the State
Children are declared as Zones of Peace. Therefore:
(a) Children shall not be the object of attack and shall be
entitled to special respect. They entitled to protection from any form
of threat, assault, torture or other cruel, inhumane or degrading
treatment;
(b) Children shall not be recruited to become members of the
Armed Forces of the Philippines or its civilian units or other armed
groups, nor be allowed to take part in the fighting, or used as guides,
couriers, or spies;
(c) Children are entitled to unhampered delivery of basic
social services such as education, primary health and emergency
relief services;
(d) Persons who provide services to children, including those
involved in fact-finding missions, must be assured of safety and
protection;
(e) 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
27Sec. 28, Special Protection of Children Against Abuse, Exploitation and

Dis- crimination Act, as amended.
“Sec. 29, ibid.
(f) All appropriate steps shall be taken to facilitate the

reunion of families temporarily separated due to armed
conflict.29
Evacuation of Children During Armed Conflict

In case of armed conflict, children should be given priority
during evacuation. Existing community organizations shall be tapped
to look after the safety and well-being of children during evacuation
operations. Measures shall be taken to ensure that children evacuated
are accompanied by persons responsible for their safety and well-
being.30
Whenever possible, members of the same family shall be housed
in the same premises and given separate accommodation from other
evacuees and provided with facilities to lead a normal family life.
In temporary shelters, expectant and nursing mothers and
children shall be given additional food in proportion to their physi-
ological needs. Whenever feasible, children shall be given opportuni-
ties for physical exercise, sports and outdoor games.31
Rights of children arrested for reasons related to armed conflict
Children arrested for reasons related to armed conflict, either

as combatant, courier, guide or spy are 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

guardian of the child; and
(d) Release from detention 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.
29Sec. 22, ibid.

30Sec. 23, ibid.
31Sec. 24, Special Protection of Children Against Abuse, Exploitation and Discrimination Act,
as amended.
CHAPTER 9 255
If after hearing the evidence in the proper proceeding 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 child shall be 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.32
Children in conflict with the law

Children in conflict with the law refers to a person under 18 years old
who is alleged as, accused of, adjudged, or recognized as, having committed
an offense under Philippine laws.33
Rights of a Child in Conflict With the Law

Children in conflict with the law are entitled to the following rights:
(a) Right against torture, cruel, inhuman or degrading,
treatment or punishment;
(b) Right against punishment with death penalty or life
imprisonment;
32Sec. 25, ibid.

"Sec. 4 re), Juvenile Justice and Welfare Act of
2006.
(c) Right against unlawful or arbitrary deprivation of liberty;

(d) Right against detention together with adult offenders.
(e) Right to prompt access to legal and other appropriate
assistance;
(f) Right to bail and recognizance, in appropriate cases;
(g) Right to testify as a witness in his own behalf under the rule
on examination of a child witness;
(h) Right to privacy at all stages of the proceedings;
(i) Right to diversion if he is qualified and voluntarily avails of the

same;
NOTE: Diversion refers to an alternative child-appropriate

process of determining the responsibility and treatment of a child in
conflict with the law on the basis if his social, cultural, economic,
psychological or educational background without resorting to formal
court proceedings.34
(j) Right to be imposed a judgment proportionate to the gravity of

the offense where his 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) Right to have restrictions on his 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 fines being
preferred as the more appropriate penalty;
(l) Right to automatic suspension of sentence, in general;
(m) Right to probation as an alternative to imprisonment, if
qualified under the Probation Law;
(n) Right to be free from liability for perjury, concealment or
misrepresentation; and
“Sec. 4 (i), Juvenile Justice and Welfare Act of 2006.

CHAPTER 9 257
(o) Other rights as provided for under existing laws, rules and
regulations.16
Minimum age of criminal responsibility

Fifteen (15) years old — exempted from criminal liabil- and below
ity. However, the child will be
subjected to an intervention program.
Above 15 years but below — exempted from criminal li- 18 years old
ability if he acted without dis
cernment. But the child will be
subjected to an intervention
program.
— if the child acted with discernment, the
child is no longer exempt from
criminal liability, and he will be
subjected to the appropriate
proceedings.36
NOTE: 1. Intervention refers to a series of activities which are

designed to address the issues that caused the child to commit an offense.
It may take the form of an individualized treatment program which may
include counseling, skills training, education, and other activities that
will enhance his psychological, emotional and psycho-social well-being.37
2. The exemption is limited to criminal liability and not to the
civil liability.38
Determination of age
Children in conflict with the law enjoy the presumption of minority. He is
entitled to enjoy all the rights of a child in conflict with the law until he is proven
to be eighteen (18) years old or older.
The age of a child may be determined from the child's birth certificate,
baptismal certificate or anv other nertinent dnmrmmta
In the absence of these documents, age may be based on information from the
child himself, 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 favor.
In all proceedings, law enforcement officers, prosecutors, judges and

other government officials concerned shall exert all efforts at determining the
age of the child in conflict with the law.39
Petition for Determination of Age

Prior to the filing of information with the appropriate court, any person
contesting the age of the child in conflict with the law, may file a petition for
determination of age before the Family Court. The petition shall be decided case
within twenty-four (24) hours from receipt of the appropriate pleadings of all
interested parties.10
Motion for Determination of Age

If the case against the child in conflict with the law has already been
filed in court, a motion to determine the age of the child may be filed in the
same court where the case is pending. Pending hearing on the said motion,
proceedings on the main case shall be suspended.11
Children not criminally liable for certain offenses

Children below eighteen (18) years of age are exempt from prosecution
for the crime of:
(a) vagrancy and prostitution under the Revised Penal

Code;
(b) mendicancy under Presidential Decree No. 1563; and
(c) sniffing of rugby under Presidential Decree No. 1619.

Said children will just undergo appropriate counseling and treatment
program.42
“Sec. 7, ibid.
"Sec. 7, ibid.
"Sec. 7, ibid.
"Sec. 58,
ibid.
f
CHAPTER 9 259
Procedure for taking the child in conflict with the law into custody
When a child in conflict with the law is taken into custody, the
law enforcement officer is obliged to do the following:
(a) Explain to the child in simple language and in a
dialect that he can understand the reason why he is being placed
under custody and the offense that he allegedly committed;
Cb) Inform the child of his constitutional rights in a
language or dialect understood by him;
(c) Properly identify himself and present proper identi-
fication 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 another 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 to greater restraint
than is necessary for his apprehension;
(g) Avoid violence or unnecessary force;
(h) Determine the age of the child through his 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, 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 favor [Sec. 7.];
(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 parents or guardians and Public Attorneys’ Office of the
child’s apprehension;
(k) Ensure that should detention of the child, if

necessary,is secure and 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
Department of Social Welfare and Development, and the Public
Attorney’s Office have been duly informed of the apprehension
and the details thereof; and
(iii) That measures to determine the age of the child
have been exhausted and the precise details of the physical and
medical examination or the failure to submit a child to such
examination;
(m) Ensure that all statements signed by the child during
investigation are 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.43
NOTE: The statement of the child should be taken in the

presence of the following:
(a) child’s counsel of choice or in the absence thereof, a
lawyer from the Public Attorney’s Office;
(b) the child’s parents, guardian, or nearest relative,
as the case may be; and
(c) the local social welfare and development officer.
In the absence of the child’s parents, guardian, or nearest
relative, and the local social welfare and development officer,
the investigation shall be conducted in the presence of a
representative of an NGO, religious group, or member of the
BCPC.44 45
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.4*
43Scc. 21, Juvenile

Justice
4 and
'.Sec. 22, Welfare
ibid. Act
ofSec.
45 2006.
21, ibid.
CHAPTER 9 261

Treatment of 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 initial contact with the child is duty-bound 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) 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 nongovernmental or religious organization;
(b) a barangay official or a member of the Barangay Council for the

Protection of Children;
(c) a local social welfare and development officer; or

(d) the Department of Social Welfare and Development, when and where
appropriate.
Petition for involuntary commitment

If the Local Social Welfare and Development Office finds that the child has been
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 Department of Social Welfare and Development or the Local Social
Welfare and Development Office pursuant to the Child and Youth Welfare Code."
Detention pending trial

Children detained pending trial may be released on bail or recognizance. 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 should be detained in youth
detention homes established by local governments 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 Department of Social Welfare and
Development 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 to court
whenever required.47 48
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. The suspension of sentence shall still be applied even if the
child has reached 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.49
Children in conflict with the law, whose sentences are suspended may,
upon order of the court, undergo any or a combination of disposition measures
best suited to the rehabilitation and welfare of the child as provided in the
Supreme Court Rule on Juveniles in Conflict with the Law.
47Sec. 36, Juvenile Justice and Welfare Act of 2006.

48Sec. 38, ibid.
CHAPTER 9 263
If the community-based rehabilitation is availed of by a child

in conflict with the law, he shall be released to parents, guardians,
relatives or any other responsible person in the community.
Under the supervision and guidance of the local social welfare
and development officer, and in coordination with his/her parents/
guardian, the child in conflict with the law shall participate in
community-based programs, which shall include, but not limited to:
(a) Competency and life skills development;

(b) Socio-cultural and recreational activities;
(c) Community volunteer projects;
(d) Leadership training;
(e) Social services;
(f) Homelife services;
(g) Health services;
(h) Spiritual enrichment; and
(i) Community and family welfare services.
In accordance therewith, the family of the child in conflict with
the law shall endeavor to actively participate in the community-
based rehabilitation.
Based on the progress of the youth in the community, a final
report will be forwarded by the local social welfare and development
officer to the court for final disposition of the case.
If the community-based programs are provided as diversion
measures under Chapter II, Title V, the programs enumerated
above shall be made available to the child in conflict with the law.49
Execution of judgment
If the child in conflict with the law has reached eighteen
(18) years of age while under suspended sentence, the court shall
determine whether:
(a) to discharge the child;
(b) to order execution of sentence; or
49Sec. 52, Juvenile Justice and Welfare Act of 2006.

2l>4 AC,RAMAN l.AW AM) SOCIAL I.WIISI.ATION
(cl to extend the suspended sentence for « certain specified

period or until the child reuchos the muximum age of twenty-one
t21) years.
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 hus 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.10
A child in conflict with the law may, in lieu of confinement in a
regular penal institution, be made to servo his/her sentence in an
agricultural camp and other training facilities that may be established,
maintained, supervised and controlled by the BUCOR, in coordination
with the DSWD.'1
l
>
n
S
e
c
.
4
0
,
i
b
CHAPTER 10
Objective of the Law

The Magna Carta of Women emphasizes the rights of women and
institutionalizes the substantive equality of men and women. The
essence of the law is not only to provide equal opportunities for women
but also their empowerment. Thus, the Magna Carta of Women
mandates the State to:
(1) Abolish the unequal structures and practices that
perpetrate discrimination and inequality to women, such as the
repeal of discriminatory provisions of existing laws;' * (ii)
’Some laws considered to contain discriminatory provisions against women

are:
(a) the provisions of the Family Code on:
(i) giving preference to the father’s consent to the marriage of children between the
ages of 18 and 21 (Art. 14);
(ii) giving preference to the husband’s decision, in case of disagreement with the wife,
on the administration and enjoyment of community and conjugal properties (Arts. 96 and 124);
(iii) giving preference to the husband’s decision, in case of disagreement with the wife,
over the persons of their common children (Art. 211);
(iv) giving preference to the husband’s decision, in case of disagreement with the wife,
on the exercise of legal guardianship over the property of un- emancipated common child (Art.
225);
(v) the requirement for repeated physical abuse and grossly abusive conduct to
constitute a ground for legal separation (Art. 55, No. 1);
(b) the provisions of the Revised Penal Code on:
(i) adultery and concubinage (Arts. 333 and 334);
(ii) the definition of vagrants and prostitution (Art. 202);

(iii) premature marriages (Art. 351); and
(iv) on death inflicted under exceptional circumstances (Art. 247);
(c) the provisions of Section 3 (jj), Rule 131 of the Rules of Court, on disputable
presumptions;
(d) the Code of Muslim Personal Laws; and
265
7 *
(2) Revise gender stereotypes and images in

educational materials and curricula.2
(3) Eliminate discrimination of women in the
military, police, and other similar services, 3 including
revision or abolition of policies and practices that restrict
women from availing of both combat and non-combat
training, or from taking on functions other than
administrative tasks, such as engaging in combat,
security-related, or field operations.'1
(4) Protect the rights of Moro and indigenous
women to practice, promote, and preserve their own
culture, traditions, and institutions which are not
discriminatory to women.5
(5) Increase the number of women participating in
discussions and decision-making in the peace process,
including membership in peace panels;6
(6) Ensure the development and inclusion of
women’s welfare and concerns in the peace agenda and
women’s participation in the planning, implementation,
monitoring, and evaluation of rehabilitation and
rebuilding of conflict- affected areas;7
(7) Give special consideration for the specific
needs of women in conflict-affected communities;8
(8) Adopt measures to:
(a)protect girl-children from all forms of abuse
and exploitation;
(b) eliminate all forms of discrimination against
girl-children in education, health and nutrition, and
skills development;
(e) R.A. No. 8353, on removal of criminal liability of rapist when victim marries
him (Sec. 15, Rules and Regulations Implementing the Magna Carta of Women).
2Sec. 13, R.A. No. 9710.
3Similar services include the Bureau of Fire Protection (BFP), Bureau of Jail
Management and Penology (BJMP), National Bureau of Investigation (NBI), Philippine

Drug Enforcement Agency (PDEA), other agencies with law enforcement functions, and
private security agencies (Sec. 7 [W], Rules and Regulations Implementing R.A. No. 9710).
4Sec. 15, Magna Carta of Women.
5Sec. 28, ibid.
6Sec. 29 (a), ibid.
7Sec. 29 (b), Magna Carta of Women.
8Sec. 29 (c), ibid.
CHAPTER 10 26
(c) ensure equal access of Moro and indigenous girl-

children in the Madaris, schools of living culture and
traditions, and the regular schooled) develop gender-sensitive
curriculum and books in the Madaris and schools of living
culture and traditions; and
(e) ensure the sensitivity of regular schools to

particular Moro and indigenous practices, such as fasting in
the month of Ramadan, choice of clothing (including the
wearing of hijab), and availability ofhalal food.9
The rights of women

In general, all women are entitled to enjoy all the rights under the
Constitution, including those rights recognized under international
instruments duly signed and ratified by the Philippines.10
Equal Rights in All Matters Relating to Marriage and Family Relations
Women are entitled to enjoy equal rights pertaining to marriage and
family relations, specifically;
(a) right to enter into and leave marriages or common law
relationships referred to under the Family Code, without prejudice to
personal or religious beliefs;
(b) right to freely choose a spouse and to enter into marriage
only with their free and full consent. The betrothal and the marriage of
a child shall have no legal effect;
(c) right to decide jointly with their partners on the number
and spacing of their children;
(d) right to enjoy the same personal rights as their spouses
or their common law spouses;
right to freely choose a profession or occupation;
(e)
right to enjoy same rights as their spouses or their
(f)
common law spouses with respect to ownership, acquisition,
management, administration, enjoyment, and disposition of
property;
Sec. 32,
e
ibid.
1D
Sec. 8,
ibid.
(g) right to enjoy the same rights to properties,

whether titled or not, and inheritance, whether formal or
customary; and
(h) right to enjoy equal rights with men in acquiring,
changing, or retaining their nationality. Neither marriage to
an alien nor change of nationality' by the husband during
marriage can automatically change the nationality of the
wife, much less force upon her the nationality of the
husband, or render her stateless.11
Right to Be Protected From All Forms of Violence

All government agencies are mandated to give priority' to
the defense and protection of women against gender-based
offenses. To attain this objective, the law mandates the
pursuance of the following measures:
(a) 50% of the personnel in the police force, legal services,
forensics and medico-legal services, and social services should be women,
so that women who are victims of gender-related violence cam properly be assisted;
(b) In situations of emergency, armed conflict, and militarization:

(i) women should not be required to take part in armed hostilities;
(ii) women should be given the opportunity to fully participate in
the planning and management of relief operations;
(iiij relief supplies should include the specific requirements of

pregnant women, lactating mothers, sick people, senior citizens, persons with
disabilities, and children;
(iv) utmost priority should be given to cases involving pregnant,
lactating women, women with dependent children, and women with
disabilities who are detained for reasons related to armed conflict;
(v) civilian casualties should not be considered as collateral
damage;
uSec. 19, Magna Carta of Women.

CHAPTER 10
269
(vi) local government units should provide

tem-
porary shelters to women and children in
situations of
(c) government
armed conflict. personnel involved in the
protection and defense of women against gender-
based violence should regularly undergo mandatory
training on gender and human rights, particularly
on the cycle and continuum of violence, counseling
and trauma healing;
(d) barangays should establish a Violence
Against Women Desk to be manned by a person
trained in handling gender-sensitive cases.12
Right to he Protected in Times of Disasters, Calamities, and

Other Crisis Situations
Women are entitled to protection and security in times of disaster, calamities
and other crisis situations, especially in all phases of relief, recovery, rehabilitation,
and reconstruction. Responses to disaster situations should include psychological
support, livelihood support, education, and comprehensive health services. 12
Right to Participation and Equitable Representation in All

Spheres of Society
Women have the right to participate in the formulation, implementation and
evaluation of policies, plans, and programs for national and local development. To
accomplish this objective, the State is mandated to:
(a) Ensure that 50% of 3rd level positions in the government are held
by women;
(b) Ensure that 40% of membership in all regional, provincial, city,

municipal, and barangay development councils are composed of women;
(c) Ensure that women are represented in international, national,

and local special and decision-making bodies;
l2Sec. 9. Magna Carta of Women; Sec. 12, Rules and Regulations

Implementing the Magna Carta of Women.
13Sec. 10, Magna Carta of Women; Sec. 13, Rules and Regulations
Implementing the Magna Carta of Women.
(d) Ensure that women are given the opportunity to represent

the government at the international level and to participate in the
work of international organizations;
(e) Provide incentives to political parties with women’s
agenda; and
(0 Encourage women leadership in the private sector. 1*
Right Against Dismissal or Expulsion From School Due to Pregnancy

Out of Wedlock
Expulsion or non-readmission of unmarried women teachers or faculty
members due to pregnancy is outlawed. Neither can educational institutions
transfer, or force unmarried teachers or faculty members to go on leave,
simply because they got pregnant.
Similarly, educational institutions cannot refuse admission, expel,
suspend or impose any disciplinary action against unmarried female
students who get pregnant during their term in school.
Pregnant students, teachers, faculty members, and other school
personnel should be accorded with a special leave of absence from school,
upon advice of the attending physician.16
Right to Health
This right entitles a woman to have access to the following
services:
(a) Pre-natal and post-natal services to address pregnancy
and infant health and nutrition;
(b) Promotion of breastfeeding;
(c) Ethical, legal, safe, and effective methods of family
planning;
(d) Youth sex education and health services;
(e) Prevention and management of reproductive tract
infections, including sexually transmitted diseases, HIV, and AIDS;
14

lsSec. 13 (c), Magna Carta of Women; Sec. 16, Rules and Regulations Imple-
meriting the Magna Carta of Women.
CHAPTER 10
THE MAGNA CARTA OF WOMEN 271
(f) Prevention and management of reproductive

tract cancers like breast and cervical cancers, and other
gynecological conditions and disorders;
(g) Prevention of abortion and management of
pregnancy-related complications;
(h) Comprehensive health services for victims of
violence against women and children, such as
psychosocial, therapeutic, medical, and legal interventions
and assistance towards healing, recovery, and
empowerment;
(i) Prevention and management of infertility and sexual
dysfunction pursuant to ethical norms and medical standards;
(j) Care of the elderly women beyond their child-bearing
years; and
(k) Management, treatment, and intervention of mental
health problems of women."
Right to Special Leave Benefits

Women employees who have undergone surgery caused by
gynecological disorders are entitled to a special leave benefit of two ( 2)
months with full pay based on her gross monthly compensation, i.e.,
including mandatory allowances fixed by the regional wage boards."
The special leave benefit for women is not cumulative and not
convertible to cash."
To be entitled to this special leave, the female employee:
(a) Must have undergone surgery due to gynecological
disorder such as, dilatation and curettage and those involving female
reproductive organs, like vagina, cervix, uterus, fallopian tubes,
ovaries, breast, adnexa and pelvic floor, as certified by a competent
physician, including hysterectomy, ovariectomy, and mastectomy, as
certified by a competent physician.'*
H’Scc. 17, Magna Carta of Women.

17Sec. 18, Magna Carta of Women; Sec. 7 (L), Rules and Regulations Implementing
the Magna Carta of Women.
'"See. 21, Rules and Regulations Implementing the Magna Carta of Women.
’’’Department Order No. 112-11.
/
(b) Must have rendered at least six (6) months continuous

aggregate employment service for the last twelve (12) months prior to
surgery;
(c) Must file an application for special leave with the employer
within a reasonable time from expected date of surgery or within such
period as may be provided under company policies or collective
bargaining agreement.20
Right Against Discriminatory and Derogatory Portrayal in Media and

Film
To realize this right, all media organizations and corporations are
required to:
(a) integrate into their human resource development
components regular training on gender equality and gender- based
discrimination;
(b) create and use gender equality guidelines in all aspects of
management, training, production, information, dissemination,
communication, and programming; and
(c) convene a gender equality committee that will promote
gender mainstreaming as a framework and affirmative action as a
strategy, and monitor and evaluate the implementation of gender
equality guidelines.21
Right to Decent Work

Decent work involves opportunities for work that are productive and
fairly remunerative as family living wage, security in the workplace, and
social protection for families, better prospects for personal development and
social integration, freedom for people to express their concerns, organize,
participate in the decisions that affect their lives, and equality of opportunity
and treatment for all women and men.22
To enable women to balance their family obligations and work
responsibilities, employers in both public and private sectors are obliged to
provide support services at the workplace, such as:
(a) day care and child minding centers;
1;Sec. 21, Rules and Regulations Implementing the Magna Carta of Women.
22Sec. 22 (a), Magna Carta of Women.
CHAPTER 10 273
(b) breastfeeding or lactation stations with appropriate facilities;
(c) nursing/lactatlon breaks;

(d) health education;
(e) counseling on breastfeeding, seminars on responsible
parenthood and family planning;
(f) non-sexist child-rearing;
(g) shared parenting and family responsibility;
(h) annual family day;
(i) flexible work arrangements; and
(j) anti-sexual harassment initiatives.23
Right to Resources for Food Production

This right entails the following:
(a) Equal status for women in the titling of the land and issuance of
stewardship contracts or patents.
NOTE: Where the properties form part of the conjugal partnership of gains
or absolute community of property, the names of both spouses should be entered in
the Certificate of Title preceded by the word '*spouses.
If the parties are not legally married, the names of both parties should be
entered in the Certificate of Title with the conjunctive word “and” between their
names. 24
(b) Equal treatment to women-beneficiaries of the agrarian reform program,

wherein the vested right of a woman agrarian reform beneficiary is defined by a woman’s
relationship to tillage, i.e., her direct and indirect contribution to the development of the
land;
(c) Equal rights to women in the enjoyment, use, and management of land,
water, and other natural resources within their communities or ancestral domains
shall be guaranteed;
23
Sec. 25, A. 3, a, Rules Implementing the Magna Carta of Women.
2<
Sec. 23, B. I a, Rules and Regulations Implementing Che Magna Carta
of Women.
(d) Equal access to the use and management of fisheries

and aquatic resources;
(e) Equal status for women in the issuance of stewardship
or lease agreements and other fishery rights that may be granted
for the use and management of coastal and aquatic resources;
(f) Equal treatment to women’s organizations as with
other marginalized fishers organizations in the issuance of
stewardship or lease agreements or other fishery rights for the use
and management of such coastal and aquatic resources which may
include providing support to women-engaged coastal resources;
(g) Equal rights to membership in farmers’ organizations
to ensure wider access to and control of the means of production;
(h) Recognition of the customary rights of women to the
land, including access to and control of the fruits and benefits, in
circumstances where private ownership is not possible, such as
ancestral domain claims;
(i) Access at all times to information and assistance in
claiming rights to the land;
(j) Non-discrimination in the deputization of fish
wardens;
(k) Women-friendly design for agriculture technology
based on accessibility and viability in consultation with women’s
organizations;
(l) Access to small farmer-based and controlled seeds
production and distribution;
(m) Recognition, protection and encouragement of
indigenous practices of women in seed storage and cultivation;
(n) Opportunities for empowering women fishers to be
involved in the control and management, not only of the catch and
production of aquamarine resources but also, to engage in
entrepreneurial activities which will add value to production and
marketing ventures; and
(o) Economic opportunities to indigenous women, par-
ticularly access to market for their produce.25

CHAPTER 10
Right to Livelihood, Credit, Capital, and Technology

This right entails the following:
(a) Equal access to formal sources of credit and capital;

(b) Equal share to the produce of farms and aquatic resources; and
(c) Employment opportunities, skills and entrepreneur- ship
development for returning women migrant workers
Right to Education and Training This right entails the following:

(a) Skills training for women migrant workers before taking on a
foreign job, and possible retraining upon return to the country, if they so
desire;
(b) Gender-sensitive trainings and seminars; and
(c) Equal opportunities in scholarships based on merit and
fitness, especially to those interested in research and development aimed
towards women-friendly farm technology,27
Right to Information
All government agencies, instrumentalities, and local government units are obliged to
develop and make available information, education and communication materials on
their specific programs, services and funding outlays on women’s empowerment and gender
equality. These information shall be translated in major Filipino dialects and disseminated to
the public, especially in remote or rural areas.”
Right to Housing
This right mandates the State to develop housing programs for women that are:
(a) localized, simple, secure and accessible;
(b) with potable water and electricity;
”Soc. 23. ibid.

■'Sec. 24, Mngnn Carta of Women.
«“Soc. 29, Rules and Regulations Implementing the Magna Carta of Women.
(c) with viable employment opportunities; and

(d) affordable amortization."
Right to Representation and Participation in Policy-Making Bodies

Women are entitled to participate in policy-making or decision-
making bodies in the regional, national, or international levels.50
To fully realize this right, concerned agencies, in cooperation with
women’s organizations are required to implement capabilitybuilding and
leadership formation programs to enable grassroots women leaders to
effectively participate in decision and policymaking in agencies, like:
(a) Presidential Agrarian Reform Council (PARC),
Provincial Agrarian Reform Coordinating Committee (PARC-
COM), or Barangay Agrarian Reform Committee (BARC);
(b) National Agricultural and Fishery' Council (NAFC) and
its regional and local counterparts;
(c) National Fisheries and Aquatic Resources Management
Council (NFARMC) and its regional and local counterparts;
(d) National Commission on Indigenous Peoples (NCIP);
(e) Presidential Commission for the Urban Poor (PCUP) for
membership in its Board of Commissioners;
(f) Local Housing Boards (LHBs), whenever applicable;
(g) National Anti-Poverty Commission (NAPC) Basic
Sectoral Councils; and
(h) Community-based resource management bodies or
mechanisms on forest management and stewardship.
The NAPC shall ensure that its sectoral councils shall have at least
thirty percent (30%) women membership and shall have gender
equality concerns incorporated in their sectoral agenda." * 31
2
t
t
31 Sec. 27, Rules and Regulations Implementing the Magna Carta
S Women.
of
c
c
.
2
1
,
s
u
——
CHAPTER 10 277
Rights of “Women in Especially Difficult Circumstances”

“Women in Especially Difficult Circumstances” refers to victims
and survivors of sexual and physical abuse, illegal recruitment,
prostitution, trafficking, armed conflict, women in detention, victims and
survivors of rape and incest, and such other related circumstances which
have incapacitated them functionally.
This right mandates local government units to deliver the following
necessary services and interventions to WEDC under their respective
jurisdictions:
(a) Temporary and protective custody;
(b) Medical and dental services;
(c) Psychological evaluation;
(d) Counseling;
(e) Psychiatric evaluation;
(f) Legal services:
(g) Productivity skills capability building;
(h) Livelihood assistance;
(i) Job placement;
(j) Financial assistance; and

(k) Transportation assistance.32
Right of Women Senior Citizens to Protection

Women senior citizens are entitled to be protected from neglect, abandonment,
domestic violence, abuse, exploitation, and discrimination. Towards this end, the
State shall ensure special protective mechanisms and support services against
violence, sexual abuse, exploitation, and discrimination of older women. 33
3ZSecs. 30 and 31, Magna Carta

ofSec.
33 Women.
33, ibid.
Sanctions
Public and private entities and individuals found to have committed
discrimination against women are subject to the sanctions.34 *
If the Commission on Human Rights finds that a department, agency,
or instrumentality of government, government-owned and -controlled
corporation, or local government unit has violated any provision of the
Magna Carta of Women and its implementing rules and regulations, the
sanctions under administrative law, civil service, or other appropriate laws
shall be recommend to the Civil Service Commission and/or the Department
of the Interior and Local Government. The person directly responsible for
the violation as well as the head of the agency or local chief executive shall
be held liable.
If the violation is committed by a private entity or individual, the
person directly responsible for the violation shall be liable to pay damages.
The filing a complaint under Magna Carta of Women will not
preclude the offended party from pursuing the remedies available under
existing laws especially those laws protecting women and children, such as
the:
(a) Women in Development and Nation Building Act;36 37
(b) Special Protection of Children Against Child Abuse,
Exploitation and Discrimination Act;36
(c) Anti-Sexual Harassment Act of 1995
(d) Anti-Rape Law of 1997j38 *
(e) Rape Victim Assistance and Protection Act of 1998;”
(f) Anti-Trafficking in Persons Act of2003;40 41 and
(g) Anti-Violence Against Women and Their Children Act of
2004.4'
3,Sec. 35, Magna Carta of

Women.
3fiR.A. No. 7192.
”R.A. No. 7610.
37R.A. No. 7877.
“R.A. No. 8353.

”R.A. No. 8505.
“R.A. No. 9208.
41R.A. No. 9262.
CHAPTER 10 279
THE MAGNA CARTA OF
WOMEN
Aggravating Circumstance
Violence is perpetrated by agents of the State including, but not limited
to, extrajudicial killings, enforced disappearances, torture, and internal
displacements, shall be considered aggravating offenses with corresponding
penalties depending on the severity of the offenses. 42
Sec. 41, Magna Carta of Women.

4I
rr-u
CHAPTER 11
ANTI-VIOLENCE AGAINST WOMEN AND
THEIR
CHILDREN ACT OF 2004
REPUBLIC ACT NO. 9262 * (ii)
Violence against women and their children

Violence against women and their children refers to physical,
sexual, psychological, or economic abuse committed by a person:
(a) against a woman:

(i) who is his wife or former wife; or
(ii) with whom he has or had a sexual or dating
relationship; or
(iii) with whom he has a common child,

against her child, whether legitimate or illegitimate,
(b)
who is:
(i) below 18 years old; or
(ii) above 18 years old but are incapable of taking care of
himself.
Violence against women and their children is not confined to
physical violence. It includes sexual violence, psychological violence or
economic abuse. The victim need not necessarily be the wife or former
wife — she could be any woman whom the offender had:
(a) sexual relationship; or
(b) dating relationship.
Sexual relationship can exist even if there was only a single sexual
act, regardless of whether it resulted in the bearing of a common child.
280
CMAI'I Kk i 1 !sM
ANTI-VIOIJONCK AGAINST WOMBS AN I; niKIH
CHII.OkhN AO'I OK
Dating relationship neither refers to casual acquaintance nor to

ordinary Hociali/.ation in a business or social context, It refers to a situation
where the parties:
(a) live as husband and wife without the benefit of marriage;
or
(b) are romantically involved over time and on a continuing
basis.'
Physical violence
Physical violence is the infliction of bodily harm. It could be in the form
of battery, assault, coercion, harassment, arbitrary deprivation of liberty.
Battery refers to an act of inflicting physical harm upon the woman or
her child resulting to physical and psychological or emotional distress.2
Sexual violence
Sexual violence can be in the form of:
(a) rape, sexual harassment, acts of lasciviousness;
(b) treating the woman/child as a sex object;
(c) making demeaning and sexually suggestive remarks;
(d) physically attacking the sexual parts of the body;
(e) forcing woman/child to watch obscene publications and
indecent shows;
(f) forcing the woman/child to do indecent acts or make films
thereof;
(g) forcing the wife and mistress/lover to live in the conjugal
home or sleep together in the same room with the abuser;
(h) acts causing or attempting to cause the victim to engage
in any sexual activity by force, threat of force, physical or other harm
or threat of physical or other harm or coercion;
‘See. 3, Anti-Violence Against Women and Their Children Act of 2004. 'Sec. 3, MiL
(i) prostituting the woman/child.3
Psychological violence
Psychological violence refers to acts or omissions causing or likely to
cause mental or emotional suffering of the victim such as:
(a) intimidation;
(b) harassment;
(c) damage to property;
(d) public ridicule or humiliation;
(e) repeated verbal abuse;
(f) marital infidelity;
(g) causing or allowing the victim to witness the physical, sexual
or psychological abuse of a member of the family to which the victim
belongs;
(h) causing or allowing the victim to witness pornography in any
form;
(i) causing or allowing the victim to witness abusive injury to
pets;
(j) unwanted deprivation of the right to custody and/or
visitation of common children; or
(k) stalking.
NOTE: Stalking is the act of following the woman or her child or

putting the woman or her child under surveillance without
justification.4
Economic abuse
Economic abuse refers to acts that are intended to make the woman
financially dependent, such as:
(a) withdrawal of financial support;
(b) preventing the woman from engaging in any legitimate
profession, occupation, business or activity, except in
3Sec. 3, Anti-Violence Against Women and Their Children Act of 2004.

4Sec. 3. ibid.
CHAPTER 11 283
ANTI-VIOLENCE AGAINST WOMEN AND THEIR
cases wherein the other spouse/partner objects on valid, serious and

moral grounds as defined in Article 73 of the Family Code;
(c) deprivation or threat of deprivation of financial
resources, including the right to the use and enjoyment of the
conjugal, community or property owned in common;
(d) destroying household property;
(e) controlling the victim's own money or properties or solely

controlling the conjugal money or properties.5
Remedies of victims of violence against women and their children

The remedies available to victims of violence against women and
their children are as follows:
(a) Criminal action;
(b) Criminal action with reservation of a separate civil
action; or
(c) Civil action for damages;
(d) Protection order without claiming damages.6
The crime of violence against women and their children

The crime of violence against women and their children is
committed through any of the following acts:
(a) Causing physical harm to the woman or her child;7
BIbid.
8Sec. 6, A.M. No. 04-10-11-SC, Rule on Violence Against Women and Their
Children. 1(
7These acts if constituting attempted, frustrated or consummated parricide or
l:i ;]
r'i]
murder or homicide shall be punished in accordance with the provisions of the Revised Penal
Code.
If the acts resulted in mutilation, it shall be punishable in accordance with the
Revised Penal Code;
If the acts constitute serious physical injuries the penalty is prision mayor;
If the acts constitute less serious physical injuries the penalty is prision
correccional;
If the actB constitute slight physical injuries the penalty is a rres to mayor (Sec.
6 [a], Anti-Violence Against Women and Their Children Act of2004).
(b) Threatening to cause the woman or her child physi-

cal harm;8 9
(c) Attempting to cause the woman or her child physical
harm;8
(d) Placing the woman or her child in fear of imminent
physical harm;10
(e) Compelling or attempting to compel the woman or
her child:
(i) to engage in conduct which the woman/her
child has the right to desist from; or
(ii) to desist from conduct which the woman/her
child has the right to engage in.
(f) Restricting or attempting to restrict the freedom of
movement of the woman or her child by force, threat, or
intimidation, such as:
(i) Threat to deprive or actually depriving the
woman or her child of custody or access to her/his
family;
(ii) Threat to deprive or actually depriving the
woman or her child of financial support legally due her
or her family;
(iii) Deliberately providing the woman’s children
insufficient financial support;
(iv) Threat to deprive or actually depriving the
woman or her child of a legal right;
8The prescriptive period for these acts is 20 years (Sec. 24, Anti-Violence Against Women
and Their Children Act of2004).

These acts are punishable by imprisonment of two (2) degrees lower than the prescribed
penalty for the consummated crime as specified but shall in no case be lower than arresto mayor
(Sec. 6 [a], Anti-Violence Against Women and Their Children Act of2004).
The prescriptive period for these acts is 20 years (Sec. 24, Anti-Violence Against Women
and Their Children Act of2004).
9The penalty for this is arresto mayor (Sec. 6 [b], Anti-Violence Against Women and
Their Children Act of2004).

The prescriptive period for these acts is 20 years (Sec. 24, ibid).
10The penalty for this is arresto mayor (Sec. 6 [b], ibid).
The prescriptive period for these acts is 20 years (Sec. 24, ibid).
CHAPTER 11 285
(v) Preventing the woman from engaging in any legitimate

profession, occupation, business or activity1;
(vi) Controlling the money or properties of the woman or her
child, or solely controlling the conjugal or common money, or properties;11
(g) Inflicting or threatening to inflict physical harm on oneself for the
purpose of controlling her actions or decisions;12
(h) 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;13
(i) 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, such as:
(i) Stalking or following the woman or her child in public or
private places;
(ii) Peering in the window or lingering outside the residence of
the woman or her child;
(iii) Entering or remaining in the dwelling or on the property of
the woman or her child against her/his will;
(iv) Destroying the property and personal belongings or
inflicting harm to animals or pets of the woman or her child; and
(v) Engaging in any form of harassment or violence;14
(j) Causing mental or emotional anguish, public ridicule or
humiliation to the woman or her child, such as repeated
“The penalty for this is prision correctional (Sec. 6 [c], ibid). The prescriptive period is 20
years (Sec. 24, It.A. No. 9262).
“The penalty for this is arresto mayor (Sec. 6 [d], ibid).
The prescriptive period is 20 years (Sec. 24, ibid).
13The penalty for this is prision mayor (Sec. 6 [e], ibid).
The prescriptive period is 10 years (Sec. 24, ibid).

“The penalty for this is prision mayor (Sec. 6[f], Anti-Violence Against Women nnd
Their Children Act of2004).
The prescriptive period is 10 years (Sec. 24, ibid.)
verbal and emotional abuse, and denial of financial support or custody

of minor children or denial of access to the woman’s child/children.* 16
Aggravating circumstances
The penalty shall be the maximum period of the prescribed penalty if
the foregoing acts were committed:
(a) while the woman or child is pregnant; or
(b) in the presence of her child.16
Prohibited defense
Being under the influence of alcohol, any illicit drug, or any other
mind-altering substance is not a defense cases involving violence against
women and their children.17
Battered woman syndrome is a defense for the woman

“Battered Woman Syndrome” refers to a scientifically defined
pattern of psychological and behavioral symptoms found in women living in
battering relationships as a result of cumulative abuse.18 *
Women who are suffering from battered woman syndrome do not
incur any criminal and civil liability, notwithstanding the absence of any of
the elements for justifying circumstances of self- defense under the Revised
Penal Code.10
However, a woman is not disqualified from having custody of her
children simply because she is suffering from battered woman syndrome. In
no case shall custody of minor children be given to the offender of a woman
who is suffering from Battered Woman Syndrome.20
Public crime
Violence against women and their children is a public offense. Therefore,
it may be prosecuted upon the filing of a complaint by any
“The penalty for

this is prision
mayor
l6Sec. 6,(Sec.
ibid.6 [f],
ibid.)
,7 Theibid.
Sec. 27,
prescriptive
"Sec. period
3 (c), ibid.
is 10 years
"Sec. (Sec.
26, ibid.
24, ibid.)
“Sec. 28, ibid.
CHAPTER 11 287
citizen having personal knowledge of the circumstances involving the

commission of the crime.21
Exemption from liability

Any person, private individual or police authority or barangay official
who, acting in accordance with law, responds or intervenes without using
violence or restraint greater than necessary to ensure the safety of the victim, is
not liable for any criminal, civil or administrative liability resulting therefrom.22
No compromise on crimes involving violence against women and their

children
Compromise on any act constituting the crime of violence against
women and their children is not allowed.23
Venue of criminal action

The Regional Trial Court designated as a Family Court has 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 Regional Trial Court where the crime
or any of its elements was committed.2*
Protection Order
Victims of violence against women and their children can apply for
protection order to prevent further acts of violence against them, minimize
disruption in their daily lives, and facilitate the opportunity and ability to
independently regain control over their lives.25
The protection orders that may be in the form of:
(a) Barangay protection order (BPO);
2,Sec. 25, ibid.

22Sec. 34, R.A. No. 9262.
Children.
MSec. 7, Anti-Violence Against Women and Their Children Act of 2004.
2SS AGRARIAN LAW AND SOCIAL LEGISLATION
(b) Temporary protection order (TPO); or

(c) Permanent protection order (PPO).M
Who can file petition for protection order?

A petition for protection order may be filed by any of the following
persons:
(a) offended party;
(b) parents or guardians of the offended party;
(c) ascendants, descendants or collateral relatives within the
4th degree of consanguinity or affinity;
(d) officers or social workers of the Department of Social
Welfare and Development or social workers of local government units;
(e) police officers, preferably those in charge of women and
children’s desks;
(f) Punong Barangay or Barangay Kagawad;
(g) lawyer, counselor, therapist or healthcare provider of the
petitioner;
(h) 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.26 27
How to obtain a protection order?

To obtain a protection order, a written petition for a protection
order signed and verified under oath by the petitioner must be filed
using the standard protection order application form which should
contain, among others, 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;
26Ibid.
Sec. 9, Anti-Violence Against Women and Their Children Act of 2004.

27
CHAPTER II 289
ANTI-VIOLENCE AGAINST WOMEN .AND THEIR
(dj description of the reliefs requested by petitioner;
fej request for counsel and reasons for such;

(ft 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.
The petition for protection order may be filed as an independent action or
as an incidental relief in the civil or criminal case.
If the applicant is not the victim, the application must be accompanied by
an affidavit of the applicant attesting to:
(a.) the circumstances of the abuse suffered by the victim; and
(h) the circumstances of consent given by the victim for the filing
of the application. When disclosure of the address of the victim will pose
danger to her life, it shall be so stated in the application. In such a case, the
applicant shall attest that the victim is residing in the municipality or city
over which court has territorial jurisdiction, and shall provide a mailing
address for purposes of service processing.
An application for protection order filed with a court shall be considered an
application for both a TPO and PPO.
Barangay officials, and court personnel are obliged to assist applicants in
the preparation of the petition for protection order.28
Barangay Protection Order (BPO)

The application for a BPO should be filed with the barangay where the
applicant resides. The place of residence may include the place where the victim-
survivor temporarily resides or where she sought refuge/sanctuary to escape from
and avoid continuing violence from the respondent.29
The Purumg Barangay should issue the BPO on the date of filing of the
application, after an ex parte determination of the basis of the application.
“"Hoc. It, ibid.

au8ec. IF,, RUICH and Regulations Implementing R.A. No.
9262.
If the Punong Barangay is not available, the application for

BPO shall be acted upon by any available Barangay Kagawad, in
which case, the BPO must contain an attestation by the Barangay
Kagawad that the Punong Barangay was unavailable at the time
for the issuance of the BPO.
Immediately after the issuance of an ex parte BPO, the Punong
Barangay or Barangay Kagawad shall personally serve a copy of
the same on the respondent, or direct any barangay official to effect
its personal service.30
The BPO is effective for fifteen (15) days. It is enforceable within the
barangay that issued the BPO.
Within twenty-four (24) hours after the issuance of the BPO, the
Punong Barangay, or in his absence or inability, any available Barangay
Kagawad shall assist the applicant in filing an application for a TPO or
PPO with the nearest court in the place of residence of the victim-
survivor.31 32
BPOs Must Be Recorded in a VA WC~2 Logbook

All BPOs must be recorded in a logbook specifically for cases of
violence against women and their children. The logbook is confidential
and must be kept from the public especially the media.
A quarterly report of all BPOs must be submitted to the local office of the
Department of the Interior and Local Government (DILG). The DILG
shall submit a summary report of the BPOs issued to the Secretariat of
the Inter-Agency Council on Violence Against Women and Their
Children.
Remedy for Violation of a Barangay Protection Order

If the BPO is violated, the Punong Barangay or Kagawad who
issued the BPO must file a complaint for directly with any Municipal
Trial Court, Metropolitan Trial Court, or Municipal Circuit Trial Court
that has territorial jurisdiction over the barangay that issued the BPO.
30The Punong Barangay shall also furnish a copy of all BPOs to the
Philippine National Police-Women and Children Protection Desks (PNP-

WCPD) who has jurisdiction in the city or municipality and shall be entered
in a logbook
31Sec. for
14,that purpose. Against Women and Their Children Act of 2004.
Anti-Violence
32Violence Against Women and Their Children.
11 jt-.
A;* nvifTiJzuy, AGAINST woitzs uta TKZIZ
CHllJjicZS A.C7 Of aX/4
If the Punonq Barangay or Ksigtvjxid or harengay orfscial refuses
to file a complaint for a violation of a BPO, the survivor/applicant can
file such complaint, without prejudice to the appropriate administrative,
civil, or criminal action against the barangay official concerned.
Violation of a BPO is punishable by imprisonment of thirty 1301
days without prejudice to any other criminal or er.il action that the
offended party may file for any of the acts committed.
A judgment of violation of a BPO may be appealed axxordingto the
Rules of Court. During trial and upon judgment, the trial court where the
petition is filed may rnotu proprio issue a protection order as it deems
necessary without need of an application.13
Judicial Protection Order

The offended party can also ask for a judicial protection order by filing a
verified petition with the Family Court of the place where the offended party
resides.
If there is no existing Family Court, the petition can be filed with the
regional trial court, metropolitan trial court, municipal trial court in cities,
municipal trial court or municipal circuit trial court with territorial jurisdiction over
the place of residence of the offended party.*4
The mere fact that there is a pending application for BPO or that the
petitioner was already able to obtain a BPO, does not bar the filing a petition for
protection order with the courts. Neither will it preclude the court from granting
the petition for protection order.35
No docket fees and other fees shall be charged for petitions for protection
order if the offended party is:
fa) an indigent; or
fb) in imminent danger or threat of danger.36
»8<;c. 16, Rules and Regulations Implementing R.A. No. 9262.

’“Sec, 9, A.M. No. 04-10-11-SC, Rule on Violence Against Women and Their
Children.
“Sec. 8, Anti-Violence Against Women and Their Children Act of 2004.
^-Hec. 18, A.M. No. 04-10-11-SC, Rule on Violence Against Women and Their Children.
292 AGRARIAN I AW AND SOCIAL LEGISLATION
Issuance of Temporary Protection Order (TPO)

If the court is satisfied from the verified allegations of the petition
that there is reasonable ground to believe that an imminent danger of
violence against women and their children exists or is about to recur, the
court may issue a TPO ex parte. The TPO is effective for thirty (30) days
from service on the person sought to be enjoined.37
The respondent may file an opposition to the petition per sonally
verified by him, accompanied by the affidavits of his witnesses, but he
cannot file the following pleadings or motions:
(a) Counterclaim, cross-claim, or third-party complaint;
(b) Motion to dismiss the petition, except on the ground of
lack of jurisdiction over the subject matter or over the parties;
(c) Motion for extension of time to file opposition, affidavit,
and other pleadings;
(d) Dilatory motion for postponement;
(e) Motion for a bill of particulars;
(f) Third-party complaint;
(g) Reply;
(h) Motion to declare the respondent in default;
(i) Intervention;
(j) Memorandum;
(k) Petition for certiorari, mandamus or prohibition
against any interlocutory order issued by the court;
(l) Motion for new trial, or for reconsideration of a
protection order, or for reopening of trial; and
(m) Petition for relief from judgment.
Preliminary Conference
A mandatory preliminary conference shall be conducted during which, the propriety of
issuing a protection order will be determined.
Soc. 15, ibid.

ni
:W
SOCH. 20 find 22, A.M. No. 04-10-21-SC, Rule on Violence Against Women and
Their Children.
CHAPTER 11 293
ANTI-VIOLENCE AGAINST WOMEN
AND THEIR
If the petitioner fails to personally appear during the preliminary
conference, the petition shall be dismissed, unless the counsel or a duly
authorized representative of the petitioner appears in court and gives a
justifiable reason for the non-appearance of the petitioner. However, if the
petition is filed by a person other than the offended party, it shall not be
dismissed if the offended party is present and does not agree to its dismissal.
On the other hand, if the respondent appears without counsel, the
court shall not reschedule or postpone the conference but shall appoint a
lawyer for the respondent and immediately proceed with the preliminary
conference.
If the respondent has filed his opposition but fails to appear despite
proper notice, the petitioner shall be allowed to present evidence ex parte.
The court shall then render judgment on the basis of the pleadings and
evidence on record.39
Hearing of the Petition

If the court finds it necessary to conduct a hearing, the Revised Rule
on Summary Procedure shall apply as far as practicable.40
The testimony of an adult female victim of violence may be taken by
live-link television, if it appears that she would suffer trauma if she were to
testify in the presence of the offender or perpetrator. Likewise, the testimony
of an eyewitness-child may be taken by live-link television if warranted by
circumstances.41
History of respondent’s abusive conduct may be admitted in evidence
even if the same was not directed against the victim, as long as it is
relevant.42
The court hearing a petition for a protection order cannot order or in
any way unduly influence the petitioner to compromise or abandon any of the
reliefs sought in the petition for protection.43
39Sec.23, ibid.
40Sec. 23, ibid.
41Sec. 28, ibid.
42Sec. 26, ibid.
43Sec. 33, Anti-Violence Against Women and Their Children Act of 2004; Sec. 27,
A.M. No. 04-10-1X-SC, Rule on Violence Against Women and Their Children.
Issuance of a Permanent Protection Order (PPO)

If the court finds the petition meritorious, the court will render a
judgment44 granting permanent protection against acts of violence and other
necessary reliefs.45
The judgment ordering permanent protection is immediately
executory.46
Reliefs that may he granted under a Protection Order

The following reliefs may be granted under the protection order:
(a) Directive prohibiting the respondent from committing or
threatening to commit any act of violence, whether personally or
through another;
(b) Directive prohibiting the respondent from harassing,
annoying, telephoning, contacting or otherwise communicating with
the petitioner, directly or indirectly;
(c) Directive removing or excluding of the respondent from
the residence of the petitioner, regardless of ownership of the
residence, either temporarily or permanently where no property rights
are violated. If respondent must remove personal effects from the
residence, the court shall direct a law enforcement agent to accompany
the respondent to the residence, remain there until respondent has
gathered his things and escort respondent from the residence;
(d) Directive for the respondent to stay away from petitioner
and any designated family or household member at a distance
specified by the court, and to stay away from the residence, school,
place of employment, or any specified place frequented by the
petitioner and any designated family or household member;
44The judgment shall be rendered within thirty (30) days from the termination
of the hearing on the merits. If no hearing has been conducted, the court shall decide
the petition within ten (10) days from the termination of the preliminary conference
(Sec. 29,A.M. No. 04-10-ll-SC, Rule on Violence Against Womenand Their
Children).
Children.
46Sec. 30, ibid.
CHAI'TBK 11 2&5
ANTI-VIOLENCK AGAINST WOMEN ANDTHEJK
CIIILDKEN ACT OK 2<M
(e) Directive for the petitioner to possess and use the

automobile and other essential personal effects, regardless of
ownership, with order for the appropriate Jaw enforcement
officer to accompany the petitioner to the residence of the parties
to ensure that the petitioner is safely restored to the possession
of the automobile and other essential personal effects, or to
supervise the petitioner’s or respondent’s removal of personal
belongings;
(f) Directive granting temporary or permanent custody
of children to the petitioner;
(g) Directive for the respondent to provide support to the
woman and her child if entitled to legal support. Notwithstanding
other laws to the contrary, the court shall order an appropriate
percentage of the income or salary of the respondent to be withheld
regularly by the respondent’s employer for the same to be
automatically remitted directly to the woman. Failure to remit
and/or withhold or any delay in the remittance of support to the
woman and/or her child without justifiable cause shall render the
respondent or his employer liable for indirect contempt of court;
(h) Directive prohibiting the respondent from any using or
possessing any firearm or deadly weapon and ordering him to
surrender the same to the court for appropriate disposition,
including revocation of license and disqualification to apply for any
license to use or possess a firearm. If the offender is a law
enforcement agent, the court shall order the offender to surrender
his firearm and shall direct the appropriate authority to
investigate on the offender and take appropriate action on the
matter;
(i) Restitution for actual damages caused by the violence
inflicted, including, but not limited to, property damage, medical
expenses, childcare expenses and loss of income;
(j) Directive for the Department of Social Welfare and
Development or any appropriate agency to provide petitioner
temporary shelter and other social services that the petitioner may
need; and
(k) Provision of such other forms of relief as the court
deems necessary to protect and provide for the safety of the
petitioner and any designated family or household member,
296 AGRARIAN LAW AND SOCLAL LEGISLATION
provided petitioner and any designated family or hoosehoij

member consents to such relief.
Any of the foregoing reliefs can be granted even in the absent
of a decree of legal separation or annulment or declaration of
absolute nullity of marriage.47
Lapse of time between the act of violence and the filing of the
petition is not a sufficient ground for the court to deny the
issuance of a protection order, unless barred by prescription. 45
Acquittal of the respondent in the criminal case is not a
ground to deny the issuance of a protection order, unless it is clearly
shown that the acts imputed against the respondent were not
actually committed.4*
Appeal
The aggrieved party may appeal the judgment by filing a
notice of appeal with the court that rendered the final order or
judgment within fifteen (15) days from notice. The appeal shall
not stay the enforcement of the final order or judgment.50
Bond to Keep the Peace

The Court may order the person against whom a protection
order is issued to present two (2) sufficient sureties who shall
undertake that such person will not commit the violence sought to
be prevented.
Failure to post the bond as required, shall result in
detention for a period ranging from thirty (30) days to six (6)
months, depending on the nature of the act committed.61
Enforceability of protection orders

All TPOs and PPOs are enforceable anywhere in the Philip-
pines.
"Sec. 8, Anti-Violence Against Women and Their Children Act of 2004.

“Sec. 23, A.M. No. 04-10-11-SC, Rule on Violence Against Women and Their Children.
"Sec. 16, Anti-Violence Against Women and Their Children Act of 2004.
'“Sec. 31, A.M. No. 04-10-11-SC, Rule on Violence Against Women and Their Children.
B1Sec. 23, Anti-Violence Against Women and Their Children Act of 2004.
CHAPTER XI 297
Violation of protection orders is punishable with a fine ranging from Five

Thousand Pesos (P5,000.00) to Fifty Thousand Pesos (P50,000.00i and/or
imprisonment of six (6) months.52
Confidentiality of Proceedings
Ail records of cases pertaining to violence against women and their
children are confidential. Whoever publishes or causes to be published, in any
format, the name, address, telephone number, school, business address, employer,
or other identifying information of a victim or an immediate family member,
without the latter’s consent, shall be liable for contempt of court and shall suffer
the penalty of one Cl) year imprisonment and a fine of not more than Five
Hundred Thousand pesos (PSOO.OOO.OO).53
Custody of children
The woman victim of violence is entitled to the custody and support of her
children. The mere fact that the victim is suffering from battered woman
syndrome does not disqualify her from having custody of her children. In no case
shall custody of minor children be given to the perpetrator of a woman who is
suffering from Battered Woman Syndrome.
Children below seven (7) years old or older with mental or physical
disabilities shall automatically be given to the mother, with right to support,
unless the court finds compelling reasons to order otherwise.''1
Leave for victims of violence against women and their children

Victims of violence against women and their children are entitled to take
a paid leave of absence up to ten (10) days in addition to other paid leaves under
the Labor Code and Civil Service Rules and Regulations, extendible when the
necessity arises as specified in the protection order.™
The leave is non-cumulative and not convertible to cash if unused.
raScc. 12, ibid.

MScc. 44, ibid.
MSet\ 28, ibid.
Br’Sec. 43, ibid.
Conditions for Entitlement to Leave for Victims of Violence

Against Women and Their Children
To be entitled to the leave for victims of violence against women
and their children, the following conditions must be complied with
(a) The employee must present a certification from the
Punong Barangay /Kagawad, prosecutor or the Clerk of Court, as
the case may be, that a case for violence against women and their
children is pending;
(b) The availment of the ten day-leave shall cover only the
days when she has to attend to medical and legal concerns.*
B6Sec. 42, Rules and Regulations Implementing R.A. No. 9262.

CHAPTER 12
ANTI-TRAFFICKING OF PERSONS ACT OF
2003

Meaning of Trafficking in Persons
“Trafficking in Persons” refers to the recruitment, transportation,
transfer, harboring, or receipt of persons, within or across national borders,
for the purpose of exploitation, such as prostitution, forced labor, slavery,
servitude, or the removal/sale of organs, with or without the consent of the
victim.
The law penalizes the following;
(a> acts of trafficking in persons;
<b) acts that promote trafficking in persons; and
(c) use of trafficked persons.
Trafficked persons are victims. As such, they are not liable for crimes
directly related to the acts of trafficking.1
Acts of Trafficking in Persons

The following are considered acts of trafficking in persons which are
subject to criminal sanctions;
(a) Recruiting, transporting, transferring, harboring,
providing, or receiving a person by any means (including those done
under the pretext of domestic or overseas employment, training or
apprenticeship), for the purpose of prostitution, pornography, sexual
exploitation, forced labor, slavery, involuntary servitude or debt
bondage;
'Sec. 43, Rules and Regulations Implementing R.A. No. 9208.
299
(b) Introducing or matching for money, profit, or material,

economic or other consideration, any person or any Filipino woman
to a foreign national for marriage and ultimately for the purpose of
acquiring, buying, offering, selling or trading her to engage in
prostitution, pornography, sexual exploitation, forced labor, slavery,
involuntary servitude or debt bondage;
(c) Offering or contracting 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) Organizing 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) Maintaining or hiring a person to engage in prosti-
tution or pornography;
(f) Adopting or facilitating the adoption of persons for the
purpose of prostitution, pornography, sexual exploitation, forced
labor, slavery, involuntary servitude or debt bondage;
(g) Recruiting, hiring, adopting, transporting or abduct-
ing 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; and
(h) Recruiting, transporting or adopting a child to engage
in armed activities in the Philippines or abroad.2
Acts that promote Trafficking in Persons

The following acts which promote or facilitate trafficking in persons
are also subject to criminal sanctions:
(a) Knowingly leasing, subleasing, using or allowing the
use of any house, building or establishment for the purpose of
promoting trafficking in persons;
2Sec,4, Anti-Trafficking ol Persons Act of 2003.

The penalty for this is 20 vears imprisonment and a fine ranging from
PI,000,000.00 to P2.000,000.00 (Sec. 10. [a], R.A. No. 9208).
CHAPTER 12 301
(b) Producing, printing, issuing or distributing unissued,

tampered or fake counseling certificates, registration stickers or
certificates of any government agency as proof of compliance with
government regulatory and pre-departure requirements for the
purpose of promoting trafficking in persons;
(c) Advertising, publishing, printing, broadcasting, dis-
tributing, or causing the advertisement, publication, printing,
broadcasting or distribution of any brochure, flyer, or propaganda
material that promotes trafficking in persons, including the use of
information technology and the internet to promote trafficking in
persons;
(d) Assisting in the conduct of misrepresentation or fraud for
purposes of facilitating the acquisition of clearances and necessary
exit documents from government agencies that are mandated to
provide pre-departure registration and services for departing persons
for the purpose of promoting trafficking in persons;
(e) Facilitating or assisting in the exit from and entry to
the country at international and local airports, territorial
boundaries and seaports of persons who are in possession of
unissued, tampered or fraudulent travel documents for the
purpose of promoting trafficking in persons;
(f) Confiscating, concealing, or destroying the passport,
travel documents, personal documents or belongings of trafficked
persons in furtherance of trafficking or to prevent them from
leaving the country or seeking redress from the government or
appropriate agencies; and
(g) Knowingly benefitting from or making use of, the labor
or services of a person held to a condition of involuntary servitude,
forced labor, or slavery.3
Qualified Trafficking in Persons

The following are considered as qualified trafficking in persons
which will subject the offender to a heavier penalty:
(a) When the trafficked person is a child;
3Sec.5, Anti Trafficking of Persons Act of 2003.

The penalty for this is 15 years imprisonment and a fine ranging from
P500.000.00 to PI,000,000.00 (Sec. 10, [b], R.A. No. 9208).
(b) 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;
(c) When the offender is an ascendant, parent, sibling,
guardian ora person who exercises authority over the trafficked
person or when the offense is committed by a public officer or
employee;
(d) When the crime is committed by a syndicate, or in large
scale;
NOTE: 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.
Trafficking is deemed committed in large scale if committed against three
(3) or more persons, individually or as a group.
(e) When the trafficked person is recruited to engage in

prostitution with any member of the military or law enforcement
agencies;
(f) When the offender is a member of the military or law
enforcement agencies; and
(g) 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).*
Use of Trafficked Persons

Any person who buys or engages the services of trafficked
persons for prostitution shall be penalized as follows:
(a) First offense — six (6) months of community service as
may be determined by the court and a fine of Fifty thousand pesos
(P50,000.00); and
*Sec. 6, Anti-Trafficking of Persons Act of 2003.

The penalty for this is life imprisonment and a fine ranging from P2,000,000.00
to P5,000,000.00 (Sec. tO, [b], Rji. No. 9208).
T *
CHAPTER 12 303
ANTI-TRAFFICKESG OF PERSONS ACT OF 2003
(b) Second and subsequent offenses — Imprisonment of one (1)

year and a fine of One hundred thousand pesos fPl00,000.00
Venue of criminal action

Criminal action arising from violation of the Anti-Trafficking in Persons
Act should be filed in the place where:
(a) the offense was committed;
(b) any of its elements occurred; or
(c) the trafficked person actually resides at the time of the
commission of the offense.
The court where the criminal action is first filed shall acquire jurisdiction
to the exclusion of other courts.6
Who may file a complaint?
Complaints for violations of the Anti-Trafficking Act may be filed by the
following:
(a) Any person who has personal knowledge of the commission of
the offense;
(b) The trafficked person or the offended party;
(c) Parents or legal guardians;
(d) Spouse;
(e) Siblings; or
(f) Children.7
Immunity from criminal prosecution

Any person who has personal knowledge in the commission of any of the
offenses penalized under the Anti-Trafficking in Persons Act and who
voluntarily gives material information relative thereto and willingly testifies
against the offender shall be exempt from prosecution for the offense with
reference to which his information and testimony were given, subject to the
“Sec. 11, Anti-Trafficking of Persons Act of 2003.

"Ibid.
(a) The information and testimony are necessary for the

conviction of the accused; and
(b) Such information and testimony are not yet in the
possession of the State.8
Institution of Criminal and Civil Actions

Pursuant to the Revised Rules on Criminal Procedure, when a
criminal action is instituted, the civil action arising from the offense
charged is deemed instituted with the criminal action, unless the offended
party waives the civil action, reserves the right to institute it separately, or
institutes the civil action prior to the criminal action.9
When the trafficked person institutes a separate civil action for the
recovery of civil damages, he/she shall be exempt from the payment of filing
fees.10
Prescriptive period
As a general rule, trafficking cases prescribe in ten (10) years.
However, trafficking cases committed by a syndicate or in a large scale
prescribe in twenty (20) years.
The prescriptive period commences 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.11
Confidentiality of proceedings
Law enforcement officers, prosecutors, judges, court personnel and
medical practitioners, as well as parties to the case, are obliged to recognize
the right to privacy of the trafficked person and the accused. Towards this
end, law enforcement officers, prosecutors and judges to whom the
complaint has been referred may order a
8Sec.
45,
9Sec.
ibid.
39,
10Sec.
ibid.
40,
"Sec.
ibid.
12.
ibid.
CHAITFU 12 305
closed-door investigation, prosecution or trial, whenever necessary to

ensure a fair and impartial proceeding, and after considering all
circumstances for the best interest of the parties.
The name and personal circumstances of the trafficked person or
of the accused, or any other information tending to establish their
identities and such circumstances or information shall not be disclosed
to the public.
In case of closed-door hearing or trial, it is unlawful for any
person to cause the publication of any case involving trafficking in
persons in print, broadcast, movie or information technology. 11
Violation of this confidentiality will subject the offender to a
penalty of 6 years imprisonment and a fine of not less than
P500,000.00 but not more than PI,000,000.00.
,2Sec. 7, Anti-Trafficking of Persona Act of 2003.

CHAPTER 13
Meaning of sexual harassment

Sexual harassment is the act of demanding or requesting sexual favor, by
a person having authority or moral ascendancy over another, regardless of
whether the demand or request is accepted or not.1
Sexual harassment 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.2
The gravamen of the offense of sexual harassment is not the violation of

sexuality but the abuse of power by the superior.3
To fall within the ambit of sexual harassment, it is not necessary that the
demand, request or requirement for sexual favor be articulated in a categorical
oral or written statement — it may be discerned, with equal certitude, from the
acts of the superior. It is not even essential that the demand, request or
requirement be made as a condition for continued employment or for promotion
— it is enough that the respondent’s acts result in creating an intimidating,
hostile or offensive environment for the employee.4
'Sec. 3, Anti-Sexual Harassment Act of 1995.

’Floralde v. Court of Appeals, 337 SCRA 371.
’Philippine Aeolus Automotive v. NLRC, 331 SCRA
237. ’Domingo v. Rayala, 546 SCRA 90.
306
CHAPTER 13 307
Where can sexual harassment be committed?

Sexual harassment can be committed in:
(i) a work-related environment; or
(ii) an education or training environment.
How is sexual harassment committed in a work-related environment?

In a work-related or employment environment, sexual harassment
is committed when:
(a) sexual favor is made as a condition for:
(i) hiring, re-employment, or continued employment
of an employee; or
(ii) granting favorable terms, conditions, or privileges;
(b) When sexual advances:
(i) impair the employee’s rights or privileges under existing
labor laws; or
(ii) result in an intimidating, hostile, or offensive
environment for the employee.
(c) When 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.6
How is sexual harassment committed in an education or training

environment?
In an education or training environment, sexual harassment is
committed when:
(a) the sexual favor is made as a condition for:
(i) giving of a passing grade;
(ii) granting of honors and scholarships; or
(iii) payment of benefits, privileges or considerations.
“Sec. 3 (a), Anti-Sexual Harassment Act of 1995.

(b) the sexual advances result in an intimidating, hostile or

offensive environment for the trainee or apprentice.*
Who can be victims of sexual harassment?

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.
Who may be 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 was has authority, influence or moral
ascendancy over another in a work or training or education
environment; and
(d) any person who directs, induces or cooperates with
another to commit any act of sexual harassment.7
Obligations of employer or head of educational or training institution

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;
eSec. 3 (b), ibid.

CHAPTER 13 309
THE ANTI-SEXUAL HARASSMENT ACT OF
1995
(b) Promulgate rules and regulations prescribing:

(i) the guidelines on proper decorum in the workplace,
educational or training institutions.
(ii) the procedure for the investigation of sexual harassment

cases; and
(iii) the administrative sanctions therefor.

The rules and regulations must be jointly approved by the duly
designated representatives of employees or students/trainees.8
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; and
(d) union, if any.

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) trainors, teachers, instructors, professors or coaches;
and
(c) students or trainees.8
Liability of the employer, educational or training institutions

Employers, educational or training institutions are solidarity liable
for damages arising from the acts of sexual harassment committed in the
employment, education or training environment if they do not take
immediate action on any sexual harassment that has been reported to
them by the offended party.10
"Sec. '1, Anti-Sexual Harassment Act of

1995. “Sec. 4, ibid.
\
Penalties
The penalties for violation of the Anti-Sexual Harassment Act
are:
(a) imprisonment ranging from 1 month to 6 months;
(b) fine ranging from P10,000.00 to P20,000.00; or

(c) both such fine and imprisonment at the discretion of
the court.11
Prescriptive period
Action arising from the violation of the provisions of this Anti-
Sexual Harassment Act prescribes in three (3) years. 12
Illustrative Cases
CIVIL SERVICE COMMISSION V. NIERRAS

545 SCRA 316
FACTS: OLGA ONA was a Secretary at the Local Water

Utilities Administration (LUWA), while PETER NIERRAS was the
Acting General Manager of Metro Carigara Water District.
On July 17, 1994, ONA was ordered by his superior to go to Leyte

to assist in the formation of the San Isidro Water District. Upon
arrival at Tacloban City, ONA was endorsed by the LUWA
management to PETER NIERRAS. Thereafter, they proceeded to San
Isidro, Leyte where they conducted a briefing for the local officials.
After the briefing, ONA asked NIERRAS where the municipal mayor
would accommodate her. NIERRAS replied that he would
accommodate her in his farm in Calubian.
They then took a motorcycle to Calubian where according to ONA,
NIERRAS already made passes at her.
In Calubian, they first deposited their personal belongings in

the house of NIERRAS’ cousin where he said they would stay for the
night. Thereafter, they proceeded to the farm where NIERRAS asked
a tenant to purchase liquor and invited the tenants to a drinking
spree. At around 10:00 p.m., ONA, already feeling tired and sleepy,
reminded NIERRAS that they should go back to his cousin’s house to
retire for the night. But instead of going back, NIERRAS gave her a
sleeping mat, a blanket and
llSec.7, Anti-Sexual Harassment

Act of 8.
I2Sec. 1995.
ibid.
CHAPTER13
THE, ’ 1995
— “ -l- mic j’es CNA then 3efi and chose a corner

--- -*u- wJ£jdcr3 TT hcdsE- m Trw XT-T—> =2eep.
A; £K>nd — ~r i OXA was awakened when XTERRAS
1^7 cCVE beside bsT and crept underneath her blanket. To DST
surprise. see saw that XTERRAS was half-naked with his psms
already unzipped. OXA cried to ran away but NIERRAS pc_fid her
and cndsr&d her to go hack to sleep. It was only when OXA streamed
‘Ayoko, Ayako, Ayoko” that XTERRAS stopped grabbing and
polling her.
ISSUE: Is XIEKRAS guilty of sexual harassment?
HELD: XTERRAS is not guilty of sexual harassment because
OXA and XTERRAS were not employed with the same agency,
hence, it cannot be said that XTERRAS used his position to procure
sexual favors from OXA However, XTERRAS is goxky of grave
misconduct
FLORALDE V. COURT OF APPEALS

337 SCRA 371
FACTS: YOLAXDA FLORALDE, XTDA VELASCO, and
XORMTTA ALAMBRA all rank-and-file employees of the
Agricultural Training Institute filed sexual harassment charges
against PAULIXO RESMA the OIC.
YOLAXDA FLORALDE declared that at around 4:00 p.m. at
the anteroom of the Director’s Office, RESMA approached her and
asked hen “Ano yan, pagkatapos ako’y pinalapit sa kanyang
klnaroroonan x xx nanatili akong nakatayo ngunit maya-maya ay bigla
na lang siyang tumayo at dinakma ang puwit ko ng papisilpisil.” She
further declared that this was not the only incident that RESMA
sexually harassed her. RESMA would also pinch her at her side close
to her bust, and whenever they met at the corridors, RESMA would
make motion as though he would embrace her.
NIDA VELASCO declared that in 1990, RESMA made her first
advances toward her. According to VELASCO, “habang binubukuan
ko po and pinto ng refrigerator sa Orosa Hall, bigla pn nya ako niyakap
at hinawakan sa maselang parte ng aking difhjdib at bigla po akong
hinalikan sa bibig. Binantaan po nya ako na kapag nagsumbong ako ay
hindi niya irerenew ang aking appointment dahil casual lang po ako.”
VELASCO further testified that RESMA would often comment that
“mamula- mula ang iyong pag-aari at fresh na fresh ka pa” and she
would answer “lolo ka na nga eh, gago ka pa.” At one time, she was
wutching a volleyball game when she felt someone touch her
•''12 AGRARIAN LAW AND SOCIAL LEGISLATION
buttocks, and when she looked back, it was RESMA, who told her
“nakakagigil ka.”
NORMELITA ALHAMBRA declared that in 1990 at around
7:00 a.m. RESMA suddenly embraced her. ALHAMBRA further
declared that: “tuwing maglalagay ako ng tubig sa baso xa loob ng
(JR biglang xumuxulpot xi Mr. Resma at dinadakma ang puwit ko at
xinaxabing guxting-guxto nya ang malalaking puwit." ALHAMBRA
also declared that at one time, “nakasuot ako ng long xleeve na rod.
at white among pants gating ako sa CIt bigla akong binaggga ni Mr.
Resma at dinakma ang aking dibdib.”
HELD: RESMA is guilty of sexual harassment.
VTLLARAMA V. NLRC
236 SCRA 283
FACTS: X was the Materials Manager of Golden Donuts
Inc. Y was her clerk typist who was only five (5) months in the
service. One day, X invited Y and the other female employees of
the Materials Department to a dinner, but the other female
employees were not able to join the group. After taking their
dinner, Y thought that X would bring her home. But instead of
taking her home, X brought Y to a motel. Because of this
shocking experience, Y tendered her resignation the following
week. The events and incidents that led to her resignation were
narrated by Y in her resignation letter. This prompted the
employer to conduct an investigation wherein X was required to
submit an explanation. Failing to submit a satisfactory
explanation, Golden Donuts Inc. terminated the services of X.
ISSUE: Was the dismissal valid and justified?
HELD: The dismissal is valid and justified. As managerial

employee, X is bound by a more exacting work ethics. He failed to
live up to this higher standard of responsibility when he
succumbed to his moral perversity. When such moral perversity
is perpetrated against his subordinate, he provided a justifiable
ground for his dismissal for lack of trust and confidence. It is the
right, nay, the duty of every employer to protect its employees from
over sexed superiors.
PHILIPPINE AEOLUS AUTOMOTIVE V. NLRC

331 SCRA 237
FACTS: WILLIAM CHUA was the Plant Manager of
Philippine Aeolus Automotive. ROSALINDA CORTEZ was its
company nurse.
CHAPTER 13 313
According to CORTEZ, as early as the first year of her

employment, CHUA already manifested a special liking for
her, so much so that she was receiving special treatment
from him. CHUA would oftentimes invite her for a date
which she would as often refuse. On many occasions, CHUA
would make sexual advances — touching her hands, putting
his arms around her shoulders, running his fingers on her
arms and telling her she looked beautiful.
The special treatment and sexual advances continued
during her employment for four (4) years but she never
reciprocated his flirtations, until finally, she noticed that his
attitude towards her changed. He made her understand that
if she would not give in to his sexual advances he would
cause her termination from service. CHUA made good his
threat. Her table, which was equipped with telephone and
intercom units and containing her personal belongings, was
transferred without her knowledge to a place with neither
telephone nor intercom, for which reason, an argument
ensued when she confronted CHUA, resulting in her being
charged with gross disrespect.
ISSUE: Was there sexual harassment on the part of CHUA?
HELD: There was sexual harassment because the sexual advances
of CHUA resulted in a hostile or offensive working environment for
CORTEZ. The NLRC’s ruling that the alleged sexual harassment is hardly
believable because it took her almost four (4) years to expose CHUA’s
sexual harassment is not correct. Strictly speaking, there is no time period
within which an employee is expected to complain about sexual
harassment. The time to do so may vary depending upon the needs,
circumstances, and more importantly, the emotional threshold of the
employee. Not many women, especially in this country, are made of stuff
that can endure the agony and trauma of a public, even corporate, scandal.
CHAPTER 14

[as amended by R.A. 9257 and 9994]
Senior Citizen
Senior citizen refers to a resident citizen of the Philippines at least
sixty (60) years old.1 It includes Filipinos with “dual citizenship” status,
provided they have at least six (6) months residency in the Philippines. 2
Privileges of Senior Citizens

Senior citizens are entitled to the following privileges:
(1) 20% discount and exemption from the value-added
tax (VAT,) for their exclusive use and enjoyment 3 of the following
goods and services:
• purchase of medicines;
[This applies to both prescription and non-
prescription drugs, whether generic or branded,
including vitamins and mineral supplements
medically prescribed by the senior citizen’s phy-
sician.]
• professional fees of attending physician;
’Sec. 1. R.A. No. 7234 as amended.

2Sec. 5.1, Art. V, Rule III Implementing Rules And Regulations of R.A. No.
9994.
^The phrase "exclusive use and enjoyment” means “for personal consumption”
only (Sec 3 [d], Art. 7, Implementing Rules and Regulations ofR.A. No. 9994).
314
CHAPTER 14 316
[This applies to all private hospitals, medical facilities,

outpatient clinics and home health care services.]
• professional fees of health workers;
[This applies to health workers which provide home
health care services as endorsed by private hospitals or
employed through home health care employment agencies,]
• medical and dental services, diagnostic and laboratory
fees;
[This applies to all private hospitals, clinics, and home
health care services. The medical and dental services
referred to are eyeglasses, hearing aids, dentures,
prosthetics, artificial bone replacements like steel, walkers,
crutches, wheelchairs whether manual or electric-powered,
canes/quad canes, geriatric diapers, and other essential
medical supplies, accessories and equipment,4 oral
examination, cleaning, permanent and temporary filling;
extractions and gum treatments; restoration, replacement
or repositioning of teeth; or alteration of the alveolar or
periodontium process of the maxilla and the mandible that
are necessary for the diagnosis or treatment of an illness or
injury.]5
• actual fare for land transportation travel;
[This covers public utility buses, utility jeepneys,
taxis, Asian utility vehicles, shuttle services and public
railways, including Light Rail Transit, Mass Rail Transit,
and Philippine National Railways.]
• actual fare for air and sea transportation;
[This applies only to advanced booking for domestic air
transport services and sea shipping vessels.]
Sec. 1 (b), Art. 7, ibid.

4
Sec, 2, (d) R.A. No. 7234, as amended; and Sec. 3 (g), Art. 7, Implementing and Regulations
of R.A. No. 9994.
• utilization of services in hotels, restaurants

and recreation centers;
[The term “hotel” includes beach,
mountain resorts,6 and lodging
establishments. In hotels or lodging
establishments, the discount is applicable
for room accommodation and other ame-
nities, such as hotel-based parlors and
barbershops, restaurants, massage parlor,
spa, sauna bath, aromatherapy rooms,
workout gyms, swimming pools, jacuzzis, ktv
bars, internet facilities, food, drinks and
other services offered.]7
[In restaurants the discount applies to fast food or
fine dining.8 9 It covers food, drinks, dessert, and other
consumable items,8 take-out or drive-thru orders,10 and
delivery orders. But the discount does not apply to pre-
contracted party packages or bulk orders and children’s
meals which are primarily prepared and intentionally
marketed for children.]11
[In recreational centers, the discount covers rental of
sports facilities or equipment, including golfcart rentals
and green fees, or venues for ballroom dancing, yoga,
badminton courts, bowling lanes, table or lawn tennis,
workout gyms, martial arts facilities.]
[Non-profit, stock golf and country clubs which are
not open to the general public, and are private and for
exclusive membership only are not mandated to give
the 20% senior citizens discount. However, if restaurants
and food establishments inside these country7 clubs are
independent concessionaires and the foods sold are not
consumable items under club member-
sSec. 3 (a), Art. 7, Implementing Rules And Regulations of R.A. No. 9994,
7Sec. 3 (a), Art. 7, ibid.
°Sec. 5.8, Rule III, Art. 5, ibid.
9Sec. 3 (b), Art. 7, ibid.
10Sec. 3 (0, Art. 7, ibid.
"Sec. 3 (d), Ar. 7. ibid.

CHAPTER 14 317
THE SENIOR CITIZENS
ACT
ship dues, they are obliged to grant the 20% senior citizens’
discount.]12
• funeral and burial services;
[The discount accrues to the beneficiary or any person
who shouldered the funeral and burial expenses of the
deceased senior citizen. Funeral and burial expenses cover
the cost of casket, urn, embalming, cremation, pick-up from
the hospital morgue, transport of the body to intended burial
site and other related services such as wake cost. The
discount does not cover obituary publication and purchase of
the memorial lot.].13
• admission fees charged by theaters, cinema houses and
concert halls, circuses, carnivals, and other similar places of
culture, leisure and amusement.
(2) exemption from the payment of individual income taxes.
[This applies only to senior citizens who are minimum wage
earners.11]
(3) 5% discount on the monthly utilization of water and electricity
supplied by public utilities;
[This is available only on a per household basis regardless of the
number of senior citizens residing therein. The discount will be granted if the
following conditions are met:
(i) the meters must be registered in the name of the senior
citizen residing therein;
(ii) the monthly consumption must not exceed one hundred

(100) kilowatt hours of electricity and thirty (30) cubic meters of
water.1']
12
Sec. 4, Art. 7, ibid.
1
S
e
c
.
6
,
A
r
t
.
7
,
i
b
i
d
(4) free medical and dental services in all government

facilities, subject to the guidelines to be issued by the DOH in
coordination with the PhilHealth;
(5) exemption from training fees for socio-economic
programs;
(6) educational assistance for post secondary, tertiary,
post tertiary, vocational and technical education, as well as
short-term courses for retooling in both public and private
schools through provision of scholarships, grants, financial
aids, subsidies, including support for books, learning materials,
and uniform allowance, to the extent feasible, if the senior
citizen meets the minimum admission requirements;
(7) to the extent practicable and feasible, the continu-
ance of the same benefits and privileges given by the Govern-
ment Service Insurance System (GSIS), the Social Security
System (SSS) and the Pag-Ibig, as the case may be, as are en-
joyed by those in actual service;
(8) special discounts in special programs for senior citi-
zens on purchase of basic commodities,16 subject to the guide-
lines to be issued for the purpose by the Department of Trade
and Industry (DTI) and the Department of Agriculture (DA);
(9) express lanes in all commercial and government
establishments or in the absence thereof, priority shall be given
to them; and
(10) death benefit assistance of a minimum of Two thou-
sand pesos (Php2,000.00) to be given to the nearest surviving
relative of a deceased senior citizen which amount shall be
subject to adjustments due to inflation in accordance with the
guidelines to be issued by the DSWD.17
’“Basic Necessities refer to rice, com, bread, fresh, dried and canned fish and other
marine products, fresh pork, beef and poultry, meat, fresh eggs, fresh and processed milk,
fresh vegetables, root crops, coffee, sugar, cooking oil, salt, laundry soap, detergents, and
drugs classified as essential by the DOH and other commodities as maybe classified by the
Department of Trade and Industry (DTI) and the Department of Agriculture (DA) according
to R.A. No. 7581 or the Price Act [Sec. 5.22, Art. V, Rule III, Implementing Rules and
Regulations ofR.A. No. 9994],
17Sec. 4, R.A. No. 7234 as amended.
CHAPTER 14 319
Senior Citizen Discount and VAT Exemption applies also to credit card
payments
The 20% discount and VAT exemption also apply to purchases
of goods and services paid through credit cards. 18
Conditions for availment of the senior citizens’ privileges

In the availment of the senior citizens’ privileges, the senior
citizen must submit proof of his entitlement through any of the fol-
lowing:
(a) Senior citizen’s identification card issued by the
Office of the Senior Citizen Affairs;19
(b) Philippine passport of the senior citizen; and
(c) Other documents showing the age and Filipino
citizenship,20 such as driver’s license, voter’s ID, SSS/GSIS ID,
PRC card, postal ID.21
No double discounts
If goods and services are on promotional discount, the senior
citizen can choose between the promotional discount or the 20%
discount under the Senior Citizens Act, whichever is higher and
more favorable.
If the senior citizen is also a person with disability (PWD)
entitled to the 20% discount under the Magna Carta of Persons With
Disability Act, the senior citizen may choose on whether to avail of
his Senior Citizen Card or his PWD card.22
The senior citizen’s discount can be claimed as tax deduction

The discounts granted by establishments to senior citizens
may be claimed as deductions from the gross income for the same
taxable year that the discount is granted, provided, that the total
amount of
“Art. 8, Implementing Rules And Regulations of R.A. No. 9994.

19This identification card is valid nationwide.
20
Sec. 4, R.A. No. 7234 as amended.
21
Sec. 5.5, Art. V, Rule III Implementing Rules And Regulations of R.A. No.
9994.
22
Art. 9, ibid-
I
320 AGRARIAN LAW AND SOCIAL LKOIS1.ATION
iho claimed tax deduction net of VAT. if applicable, shall be included

tn their unv.» «aW nxvipts for tax purposes and shall be subject to
proper documentation and t<> the provisions of the National Internal
Revenue Code t NlRC>. as amended.”
Additional privileges for indigent senior citizens

Aside from the foregoing benefits, indigent senior citizens are
entitled to the following privileges:
(a' free vaccination from the Department of Health
against the influenza virus and pneumococcal disease for indi-
gent senior citizens;'* *
(b) monthly stipend from the government in the
amount of Five Hundred Pesos (Php500.00) to augment their
daily subsistence and other medical needs, subject to a review
every two (21 years by Congress, in consultation with the
Department of Social Welfare and Development;28
(c) Philhealth coverage;
'.The Local Government Unit where the indigent senior
citizen resides shall allocate the necessary funds to ensure the
enrollment of their indigent senior citizens, in accordance
with the pertinent laws and regulations.]M
(d) Death benefit assistance from the government in
the amount of at least Two Thousand Pesos (Php2,000.00) to be
given to the nearest surviving relative27 who took care of the
deceased indigent senior citizen until his death, or in his
absence, the benefactor or the licensed foster family of the
deceased indigent senior citizen, which amount shall be
subject to adjustments every two years due to inflation, in
accordance with the guidelines to be issued by the
Department of Social
“Art. 10, Implementing Rules And Regulations of R.A. No. 9994.

“Sec. 4, R-A- 7234 as amended, r'Sec. 5*h i d ) , ibid.
*3ec. f> 'h> <21. ibid.

^Nearest surviving relative refers to the legal spouse who survives the de-
ceased senior citizen: Rmvidvd, That, where no spouse survives the decedent, this
shall be limited to relatives in the following order of degree of kinship: children,
parents. siblings, grandparents, grandchildren, uncles and aunts [See. 2. (f) H.A. No.
7234, ax amended by HA. Nan. 0257 and 0004J.
CHAPTER 14
THE SENIOR CITIZENS ACT 321
Welfare and Development and Department of Interior and Local

Government.28
Discount for DSWD-Accredited senior citizens center

DSWD-accredited senior citizens centers, 29 residential care
institutions,30 or group homes31 that are government-run or organized
and operated by non-stock, non-profit domestic corporations, primarily
for the purpose of promoting the well-being of abandoned, neglected,
unattached or homeless senior citizens, are entitled to 50% discount on
all electricity, water, telephone consumption.
To be entitled to the discount, the senior citizens centers, resi-
dential care, or group homes must have been in operation for at least
six (6) months and must have a separate meter for said utili-
ties/services.32
“Sec. 4, Art. 20, Implementing Rules and Regulations of R.A. No. 9994.
“Senior Citizens Center refers to the place established by R.A. No. 7876 or the
Senior Citizens Center Act, with recreational, educational, health and social programs
and facilities designed for the full enjoyment and benefit of the senior citizens in the city
or municipality accredited by the DSWD. It can be any available structure, a spacious
room in a private or public building, a room attached to a community center, a barangay
hall or chapel [Sec. 5.16, Art. V, Rule III, Implementing Rules and Regulations of RA. No.
9994].
“Residential Care Institution refers to facility which provides twenty-four (24)
hour residential care services operated primarily for the purpose of promoting the well-
being of abandoned, neglected, unattached or homeless senior citizens. The facility
may be run by government or non-stock non-profit organization and is accredited by
the DSWD to serve a minimum of 10 clients. [Sec. 5.20, Art. V, Rule III, Implementing
Rules and Regulations ofR.A. No. 9994].
31Group Homes refer to a community-based alternative living arrangement to
institutional care. It can be a transit home for a definite period for neglected older
persons while the necessary services of locating relatives and care management is
ongoing. It envisions responding to the needs of the senior citizens who have been
abandoned, have no families to return to or to whose family reunification is not suit-
able, and are assessed to be needing group living experience. The program enables a
minimum of 6 and a maximum of 10 clients discharged from a residential care facility
to live together and manage their group living activities with minimal supervision
from the agency social worker [Sec. 5.18, Art. V, Rule III, Implementing Rules a?id
Regulations ofR.A. No. 9994].
32Sec. 5, (d), R.A. No. 7234 as amended; Sec. 2, Art. 12, Implementing Rules and
Regulations ofR.A. No. 9994.

Incentives for Foster Care”

Individual or non-governmental institutions, homes,
residential communities or retirement villages” caring solely for
senior citizens are entitled to the following incentives:
(a) realty tax holiday for the first five (5) years starting
from the first year of operation; and
(b) priority in the construction or maintenance of
provincial or municipal roads leading to the aforesaid home,
residential community or retirement village.”
Additional tax deduction for private entities that employ

senior citizens
Private entities that will employ senior citizens are entitled to
an additional deduction from their gross income, equivalent to
fifteen percent (15%) of the total amount paid as salaries and wages
to senior citizens, subject to the following conditions:
(a) the employment shall continue for a period of at
least six (6) months; and
(b) the annual income of the senior citizen does not
exceed the latest poverty threshold as determined by the
National Statistical Coordination Board (NSCB) of the
National Economic and Development Authority (NEDA) for
that year *
Criminal Offenses and Penalties

The following are considered as criminal offenses under the
Senior Citizens Act: * 31 * * * 35 36
“Foster Care refers to a social work intervention which provides for a

planned substitute or alternative family care by a licensed foster family to a
neglected, abandoned, unattached and poor older person [Sec. 5.19, Art. 5, Rule III,
Implementing Rules and Regulations of R.A. No. 9994],
31 Retirement village refers to an independent-living facility, often with con-
tinuing-care amenities. It refers to a residential community offering separate or

autonomous houses for residents. It is a retirement habitat with a multi-residence
housing facility that is planned, designed and geared towards people who no longer
work and are restricted to a certain age. It has particular conveniences catering to
the wishes and desires of retirees, which may include services such as clubhouses,
swimming pools, arts and crafts, boating, walking trails, golf courses, active adult
retail and on-site medical services [Sec. 5.17, Art. 5, Rule III, Implementing Rules and
Regulations of R.A. No. 9994],
35Sec. 5 (g), R.A. No. 7234 as amended.
36Sec. 5 (a), ibid.
CHAPTER 14 323
(1) Refusal to honor the senior citizen card

This can be committed in the following manner:
(a) Pegging a maximum amount of food purchase sub-
ject to 20% discount and the VAT exemption or posting of no-
tice to that effect;
(b) Refusal to grant the 20% discount and VAT exemp-
tion on take-out/take-home/drive-thru orders it appearing that
the purchase is for the exclusive use and enjoyment of senior
citizens;
(c) Refusal to grant a discount for credit card payments;
(d) Refusal to grant a 20% discount and VAT exemption
on delivery orders it appearing that the purchase is for the
exclusive use and enjoyment of senior citizens;37
(e) Making a distinction between branded and generic
drugs and medicines in giving the 20% discount;
(£) Posting notices that availment of the 20% discount
is limited to cash purchases only;
(g) . Limiting discountable drug and medicine
purchases
to certain days of the week only; and
(h) Restricting the purchase time for senior citizens to
a particular hour each day only; i.e., refusing to grant senior
citizen discounts after a certain hour.38
■ Penalties: For the first violation — imprisonment
ranging from 2 years to 6

years; and
— fine of P50,000.00 to PI00,000.00;
For subsequent — imprisonment ranging

violation from 2 years to 6
years; and
— fine of P100,000.00
to P200, OOO.OO.*>
37Art. 23, Implementing Rules and

Regulations of R.A. No. 9994. "Sec.
3, Art.10,
"Sec. 22,R.A.
Rule VII,
No. ibid.as amended.
7432,
(2) Abuse of senior citizen privileges

This can be committed by the
following:
(a) Senior citizen, his representative or a person who misuses
the privileges by:
(i) using several purchase booklets;
(ii) availing of the discount 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.* *0
(b) Medical practitioner who gives prescription to
other persons in the name of the senior citizen or who gives
anomalous prescription.*1
■ Penalties — imprisonment for 6 months; and
- fine of P50,000.00 to P100,000.00.42
The Office for Senior Citizens Affairs

All cities and municipalities are obliged to have an Office for
Senior Citizens Affairs (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 organization in the city or municipality.
The head of the OSCA 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.
Qualifications of the OSCA Head

The following are the qualifications of the OSCA Head:
(a) Filipino citizen and resident of the municipality or
city for at least one (1) year;
"Sec. 1, Art. 22, Rule VII, Implementing Rules and Regulations of R.A. No.
9994.
41 Sec. 2, Art. 22, Rule VII, ibid.
*2Sec. 10, R.A. No. 7432, ae amended.

CHAPTER 14
32
5
(1) ) Registered voter ofthe concerned city or
municipality;
(c) Able to read and write;
(d) Physically and mentally capable of performing
the tasks of OSCAHead;
(e) Bona fide member of a duly registered senior citi-
zens organization which has a track record of at least three
consecutive years;
(f) Good moral character; and
tg) At least a high school graduate.43
Functions of the OSCA

The OSCA exercises the following functions:
la) To plan, implement and monitor yearly work programs in
pursuance of the objectives of the Senior Citizens Act;
(b) To draw up a list of available and required services which
can be provided by the senior citizens;
(c) To maintain and regularly update on a quarterly basis the list
of senior citizens and to issue national individual identification cards, free
of charge, which shall be valid anywhere in the country;
(d) To serve as a general information and liaison center for senior
citizens;
(e) To monitor compliance of the provisions of the Senior Citizens
Act particularly the grant of special discounts and privileges to senior
citizens;
(f) To report to the mayor, any individual, establishments,
business entity, institution or agency found violating any provision ofthe
Senior Citizens Act; and
Ig) To assist the senior citizens in filing complaints or charges
against any individual, establishment, business entity, institution, or
agency refusing to comply with the privileges
43Sec. 1, Art. 21, supra.

under this Act before the Department of Justice (DOJ), the

Provincial Prosecutor’s Office, the regional or the
municipal trial court, the municipal trial court in cities, or
the municipal circuit trial court." 44
44See. 6, R.A. No. 7432, as amended.

CHAPTER 15
THE HOME DEVELOPMENT MUTUAL FUND
LAW OF 1980
The Forerunner of the Present Home Development Mutual Fund

The Home Development Mutual Fund was created by Presidential
Decree No. 1530, promulgated on June 11, 1978. The said fund, one for
government employees and another for private employees, is composed of
contributions by the employees and counterpart contributions by their
employers.
Presidential Decree No. 1752, enacted on December 13, 1980,
amended Presidential Decree No. 1530 to make the Home Development
Mutual Fund a body corporate and make its coverage mandatory upon all
employers covered by the Social Security System and Government Service
Insurance System.'
Objective of the Law

The objective of the Home Development Mutual Fund Law is to
motivate the employed and other earning groups to better plan and provide
for their housing needs by membership in an integrated, nationwide savings
system for the said purposes, with contributory support of the employers in
the spirit of social justice and pursuit of national development. * 2
'China Banking Corporation v. Home Development Mutual Fund, 307 SCRA

443, 450.
2Sec. 2, P.D. No. 1752, as amended.
327
The Home Development Mutual Fund

The Home Development Mutual Fund is a provident savings system
for employees in the private and public sectors supported by matching
contributions of their respective employers, with housing as primary
investment.
The system is also available to self-employed and other working
groups.3 *
The Fund is private in character, owned wholly by the members,
administered in trust and applied exclusively for their benefit. All personal
and employer contributions shall be fully credited to each member, accounted
for individually and transferable in case of employment. They earn dividends
to be paid to the employee, his estate or beneficiaries upon termination of
membership.*
Corporate Entity
The Home Development Mutual Fund is a corporate entity.'As such, it
is vested with the following corporate powers:
(a) To make policies and guidelines, as well as adopt, amend
and rescind such rules and regulations as may be necessary to carry
out the provisions and purposes of the law;
(b) To submit annually to the President of the Philippines not
later than March 15, a public report covering its activities in the
implementation of the Home Development Mutual Fund Law, as well
as the state of the Fund during the preceding year, including
information and recommendations for the development and
improvement of the Fund, which report should be made available to
the members;
(c) To invest its fund, directly or indirectly, in accordance with
the provisions of the Home Development Mutual Fund Law;
(d) To acquire, utilize, or dispose of, in any manner
recognized by law, real or personal properties to carry out the
purposes of the law;
3Sec. 3,
ibid.
^Sec.
84,
ibid.
CHAPTER 15 329
THE HOME DEVELOPMENT MUTUAL
FUND LAW OF 19S0
(e) To set up its own accounting and computer systems, conduct
continuing actuarial and statistical studies and valuations to determine
the financial liability of the Fund and its projects, 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;
(f) To have the power of succession; to sue and be sued; to adopt
and use a corporate seal;
(g) To enter into and earn- out contracts of every kind and
description with any person, firm or association or corporation, domestic or
foreign;
(h) To borrow funds from any source, private or government,
foreign or domestic;
(i) To invest, own, or 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;
(j) To exercise such powers and perform such acts as may be
necessary, useful, incidental or auxiliary to carry out the provisions of
the law.6 7
Coverage
Coverage of the Home Development Mutual F und is mandatory upon
all employers and employees covered by the Social Security System and the
Government Service Insurance System, and their respective employers. 1
Fund Contributions
For Employees: 1% — for employees earning not
more than PI,500.00 per month;
2% — for employees earning more than
PI,500.00 per month.
6Sec. 10, P.D. No. 1752, as

amended.
7Sec. 4. ibid.
For Employers: 2% of the monthly compensation of

all covered employees.8
The contributions to the Home Development Mutual Fund shall be

remitted through the Social Security System and Government Service
Insurance System.
Non-payment shall subject the employer to penalty of 3% per month

of the amounts payable from the date the contributions fall due until paid. 9
10
Meaning of monthly compensation

Monthly compensation means the basic monthly salary plus cost of
living allowance (COLA). The maximum monthly compensation to be used
in computing employee and employer’s contributions shall not be more than
Five thousand pesos (P5,000.00).'°
Term of membership
Membership in the Home Development Mutual Fund shall be for a
period of twenty (20) years, unless, earlier terminated by reason of
retirement, disability, insanity, death, departure from the country or other
causes as may be provided for by the Board of Trustees. 11
Suspension of contribution
The obligation to make contributions is suspended when the
employee resigns, is laid-off or suspended from employment.12
Withdrawal of contributions
Members who have no outstanding loans may withdraw the total
accumulated value of their contributions to the Fund after the 10th or 15th
year of continuous membership.
This option can be exercised only once and shall not prejudice the
member’s continuing membership in the Fund.13
8Sec. 5, ibid.
9Sec. 22, P.D. No. 1752, as
amended.
10See. 5, ibid.
“See. 6, ibid.
,aSec. 6, ibid.
,3Sec. 6, ibid.
CHAPTER 15
THE HOME DEVELOPMENT MUTUAL FUND LAW OF 1980
Housing features
A member of good standing may apply for a housing loan, under such
terms as may be authorized by the Board of Trustees, taking into account
ability to pay.1*
Waiver and suspension of coverage from the Home Development Mutual
Fund
Employers or employee group who, at the time of the effectivity of the Home
Development Mutual Fund Law, have their own provident or employee housing plans,
may register with the Fund, for annual certification of waiver and suspension from
coverage or for full or partial integration with the Fund.
The establishment of a separate provident or housing plan after the
effectivity of the Home Development Mutual Fund Law is not a ground for
waiver of coverage in the Fund.'5
An employer need not have both a superior retirement/ provident plan
and a superior employee housing plan in order to be entitled to a certificate of
waiver and suspension of coverage from the Home Development Mutual Fund.
CHINA BANKING CORPORATION V. HOME

DEVELOPMENT MUTUAL FUND
307 SCRA 443, 4S0-4S9
“xxx Section 19 of P.D. No. 1752 provides for waiver or suspension
from coverage or participation in the fund, thus;
‘SEC. 19. Existing Provident /Housing Plans —
An employer and/or employee group who, at the time this
Decree becomes effective have their own provident and/or
employee housing plans, may register with the Fund, for any
of the following purposes:
(a) For annual certification of waiver or
suspension from coverage or participation in the Fund,
which shall be granted on the basis of verification that
the waiver or suspension does not contravene any
effective collective bargaining agreement and that the
features of the plan or plans are superior to the Fund or
continue to be so; or 4
l
4
S
e
c
.
9
,
i
b
i
d
.
“
(b) For integration with the Fund, either fully

or partially.
The establishment of a separate provident and/ or
housing plan after the effectivity of this Decree shall not
be a ground for waiver of coverage in the Fund; nor shall
such coverage bar any employer and/or employee group
from establishing separate provident and/or housing
plans,’
xxx xxx xxx
“The controversy lies in the legal signification of the words
‘and/or.’
“In the instant case, the legal meaning of the words ‘and/ or’
should be taken in its ordinary signification, i.e., ‘either and or’, e.g.,
butter and/or eggs means butter and eggs or butter or eggs.
The term ‘and/or’ means that effect shall be given
to both the conjunctive ‘and’ and the disjunctive ‘or; or
that one word or the other may be taken accordingly as
one or the other will best effectuate the purpose
intended by the legislature as gathered from the whole
statute. The term is used to avoid a construction which
by the use of the disjunctive ‘or’ alone will exclude the
combination of several alternatives or by the use of the
conjunctive ‘and’ will exclude the efficacy of any one of
the alternatives standing alone.’
“It is accordingly ordinarily held that the intention of the
legislature in using the term ‘and/or’ is that the word ‘and’ and the
word ‘or’ are to be used interchangeably.
“It seems to [the Court] clear from the language of the
enabling law that Section 19 of P.D. No. 1752, intended that an
employer with a provident plan or an employee housing plan superior
to that of the fund may obtain exemption from coverage. If the law
had intended that the employee should have both a superior
provident plan and a housing in order to qualify for exemption, it
would have used the words ‘and’ instead of ‘and/ or.’ Notably,
paragraph (a) of Section 19 requires for annual certification of waiver
or suspension, that the features of the plan or plans are superior to
the fund or continue to be so. The law obviously contemplates that the
existence of either plan is considered as sufficient basis for the grant
of an exemption; needless to state, the concurrence of both plans is
more than sufficient. To require the existence of both plans would
radically impose a more stringent condition for waiver which was not
CHAPTER 15 333
THE HOME DEVELOPMENT MUTUAL FUND LAW OF 1980
clearly envisioned by the basic law. By removing the disjunctive word

‘or* in the implementing rules the respondent Board has exceeded its
authority.
XXX XXX XXX
“While it may be conceded that the requirement of the
concurrence of both plans to qualify for exemption would strengthen
the Home Development Mutual Fund and make it more effective both
as a savings generation and a house building program, the basic law
should prevail as the embodiment of the legislative purpose, and the
rules and regulations issued to implement said law cannot go beyond
its terms and provisions.
“[Th]e [Court] accordingly find[s] merit in petitioner’s contention that
Section 1, Rule VII of the Rules and Regulations Implementing R.A. 7742, and
HMDF Circular No. 124-B and the Revised Guidelines and Procedure for Filing
Application for Waiver or Suspension of Fund Coverage under P.D. 1752, as
amended by R.A. 7742, should be declared invalid insofar as they require that an
employer must have both a superior retirement/ provident plan and a superior
employee housing plan in order to be entitled to a certificate of waiver and
suspension of coverage from the HMDF.”
ROMULO, MABANTA, BUENAVENTURA, SAYOC & DE

LOS ANGELES V. HDMF
333 SCRA 777
“It is without doubt that the HDMF Board has rule-making power as
provided in Section 5 of R.A. 7742 and Section 13 of P.D. 1752. However, it is well-
settled that rules and regulations, which are the product of a delegated power to
create new and additional legal provisions that have the effect of law, should be
within the scope of the authority granted by the legislature to the administrative
agency. It is required that the regulation be germane to the objects and purposes
of the law, and be not in contradiction to, but in conformity with, the standards
prescribed by law.
“In the present case, when the Board of Trustees of the HDMF required in
Section 1, Rule VII of the 1995 Amendments to the Rules and Regulations
Implementing R.A. No. 7742 that employers should have both providentt
retirement and housing benefits for all its employees in order to qualify for
exemption from the Fund, it effectively amended Section 19 of P.D. No. 1752. And
when the Board subsequently abolished that exemption through the 1996
Amendments, it repealed Section 19 of P.D. No. 1752. Such amendment and
subsequent repeal of Section
19 are invalid, as they are not within the delegated power of the Board.
The HDMF cannot, in the exercise of its rule-making power, issue a
regulation not consistent with the law it seeks to apply. Indeed,
administrative issuances must not override, supplant or modify the law,
but must remain consistent with the law they intend to carry out. Only
Congress can repeal or amend the law.
“While it may be conceded that the requirement of having both
plans to qualify for an exemption, as well as the abolition of the
exemption, would enhance the interest of the working group and further
strengthen the Home Development Mutual Fund in its pursuit of
promoting public welfare through ample social services as mandated by
the Constitution, [th]e [Court] [is] of the opinion that the basic law
should prevail. A department zeal may not be permitted to outrun the
authority conferred by the statute.”
Substitute retirement plan

Private employers have the option to treat the coverage by the
Fund as a retirement plan for the employee concerned within the
purview of the Labor Code of the Philippines.16
Penal provisions
Refusal or failure register its employees, collect and remit
employee contributions as well as employer counterparts, or the
correct amount due, will subject the employer to:
(a) fine of not less, but not more than twice the amount
involved; or
(b) imprisonment of not more than six (6) years; or
(c) both such fine and imprisonment, in the discretion of the
Court.17
16
Sec. 21, P.D. No. 1752, as
amended.
,7Sec. 23, ibid.
CHAPTER 16

The rationale behind the enactment of the National Health Insur-

ance Act
The National Health Insurance Act was enacted to implement
Section 11, Article XIII of the 1987 Constitution of the Republic of the
Philippines which mandates the State to adopt an integrated and
comprehensive approach to health development and to make essential
goods, health and other social services available to all the people at
affordable cost, with priority for the needs of the underprivileged, sick,
elderly, disabled, women, and children, and provide free medical care
to paupers.'
The National Health Insurance Program

This is a social insurance program intended to answer for
utilization or purchase of hcullh services by covered beneficiaries.
Consisted initially of Programs I1 and II' of the Medicare/ the National Health
Insurance Program will be expanded progressively a
to constitute one universal heulth insurance program for the entire population.
Being a social insurance, the Health Insurance Program it is
prohibited from: * 3
‘Sec. 2 (b), R.A. No. 7871, as amended.

3Program I covers members of the SSS and GSIS including their legal dependents.
3Program II, refers to those not covered under Program I.

^Program I covers members of the SSS and GSIS including their legal dependents.
335
(a) providing direct health care;
(b) owning or investing in health care facilities;
(c) buying and dispensing drugs and pharmaceuticals;

and
(d) employing physicians and other professionals for the
purpose of directly rendering care.6
Coverage of the National Health Insurance Program

All citizens of the Philippines are covered by the National Health
Insurance Program.6 Coverage is compulsory. Therefore, all citizens of
the Philippines are required to enroll in the National Health Insurance
Program.7
However, the compulsory coverage in certain provinces and
cities cannot be effected until the Philippine Health Corporation is able
to ensure that members in such localities have reasonable access to
adequate and acceptable health care services.8
Enrollment of beneficiaries
To be entitled to the benefits, the beneficiary9 must be enrolled
with the National Health Insurance Program in accordance with the
following policies:
(a) Persons currently eligible for benefits under Medicare
Program I, including SSS and GSIS members, retirees, pensioners
and their dependents, are automatically enrolled in the Program;
(b) Persons eligible for benefits as members of local health
insurance plans established by the Philippine Health Insurance
Corporation are also deemed enrolled in the Program;
(c) Persons eligible for benefits under health insurance
plans established by local governments as part of the Program
6Sec. 5, R.A. 7871, as amended.

6Sec. 6, ibid.
7Sec. 2 (I), ibid.
8Sec. 6, ibid.
’Beneficiary is the person entitled to health care benefits under

the National Health Insurance Act (Sec. 4 fa], R.A. No. 7871, as
amended).
CHAPTER 16 337
II of Medicare, including indigent members, should be enrolled in the

Program; and
(d) Persons eligible for benefits as members of other
government initiated health insurance programs, community- based
health care organizations, cooperatives, or private nonprofit health
insurance plans should be enrolled in the Program upon accreditation by
the Philippine Health Insurance Corporation.
Individually-paying members should enroll for membership through the
offices of the Philippine Health Insurance Corporation.10
A member who is separated from employment may continue his
membership by enrolling as an individually paying member within three (3)
months after separation, otherwise, the benefit entitlement will be
suspended."
Indigonts not enrolled in the National Health Insurance Program shall
have priority in the use and availment of the services and facilities of
government hospitals, health care personnel, and other health organizations.
Such government health care providers shall ensure that said indigents shall
subsequently be enrolled in the Program.12
Enrollment Requirements
To register with the National Health Insurance Program, the
appropriate PhilHealth membership registration form together with any of the
following documents must be submitted:
(a) Birth Certificate;
(b) Baptismal Certificate;
(c) GSIS/SSS Member’s ID;
(d) Passport;
(e) Any other valid ID/document acceptable to the Philippine
Health Insurance Corporation.13 30
30Sec. 30, Revised Rules and Regulations
Implementing the National Health Insurance Act

of 1995. uSec. 31, ibid.
l2Sec. 7, R.A. No. 7871, as amended.
J3Sec. 9, Rule II Revised Rules and
Regulations Implementing the National Health

Insurance Act of 1995.
Membership in. the National Health Insurance Program shall take effect
upon payment of the required premium contribution.’*
Declaration of dependents
Registrants who are declaring dependents14 15 should submit the following
supporting documents, whichever is applicable:
• For dependent spouse — Marriage Contract
• For dependent — Marriage Contract and
legitimate children Birth/Baptismal Certifi
cate
• For illegitimate — Birth/Baptismal Certifi-
children cate
For dependent adopted — Adoption papers or court

children resolution/decision
For dependent parents — Birth/Baptismal certificate of
registrant
For dependent stepchildren Marriage Contract of the parent
and stepfather/ stepmother and
Birth Certificate of the depen-
dent stepchildren
• Duly notarized joint affidavit of two (2) disinterested persons and other
relevant information (date of birth, etc.) attesting to the fact of the relationship of
the dependents to the supposed members.
Sec. 12, ibid.

14
15The legal dependents of a member are:

(a) the legitimate spouse who is not a member;
(b) the unmarried and unemployed legitimate, legitimated, illegitimate,
acknowledged children as appearing in the birth certificate; legally adopted or
stepchildren below twenty-one (21) years of age;
(c) 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 of our support;
(d) the parents who are sixty (60) years old or above whose monthly income is
below an amount to be determined by the Corporation in accordance with the guiding
principles set forth in Article I of the National Health Insurance Act (Sec. 4 [fj, R.A. No.
7871, as amended).
CHAPTER 16 339
• Certificate from the Department of Social Welfare and Development

(DSWD) or Barangay Captain attesting to the fact of the relationship of the
dependents to the supposed members.
* Any other valid ID or document acceptable to the Philippine Health
Insurance Corporation.16 17 18
Health insurance ID card

Upon enrollment, the Philippine Health Insurance Corporation through its local
office shall issue a health insurance ID which shall be used for purposes of identification,
eligibility verification, and utilization recording.17
Premium contributions
Members of the National Health Insurance Program are obliged to pay the
premiums in accordance with the following guidelines:
(a) Employees and their employers shall pay monthly contributions as
determined by the Philippine Health Insurance Corporation, the amount of
which shall not exceed 3% of the monthly salaries;18
(b) Self-employed members shall pay their contributions based
primarily on household earnings and assets but their total contributions for one
year shall not exceed 3% of their estimated actual net income for the preceding
year;
(c) Contributions made in behalf of indigent members shall not exceed
the minimum contributions set for employed members.19
16
Sec. 10, Rule II Revised Rules and Regulations Implementing the National Health
Sec. 8, R.A. No. 7871, as amended.
17
I8The premium contribution of employed members shall be paid on a monthly basis and should
be remitted by the employer on or before the tenth ( 10th) calendar day following the month for which
the payment is due and applicable. The member’s contribution shall be deducted and withheld
automatically by the employer from the former’s salary, wage or earnings.
For government agencies, it shall be mandatory and compulsory for the employers to include
the payment of contributions in their annual appropriations (Sec. 20, Revised Rules and
Regulations Implementing the National Health Insurance Act of 1995).
I9Sec. 28, R.A. No. 7871, as amended.
ismti v .r"
Failure or refusal of the employer to deduct or remit the

employees’ and employer’s premium contribution is not a
ground for denial of a properly filed claim. In such a case, the
Philippine Health Insurance Corporation shall be entitled to
reimbursement of claims paid from the erring or negligent
employer, without prejudice to the criminal prosecution and
other liabilities.110
Premium contributions of individually-paying members

The premium contribution of individually-paying members (including self-
employed members of the SSS) shall be at a minimum of P75.00 per month and
can be paid quarterly, semi-annually, or annually.
Overseas Filipino Workers (OFWs) enrolled with the NHIP shall pay an
annual contribution in an amount to be set by the Corporation. 20 21
Persons not obliged to pay premium contributions

The following need not pay the monthly premium contributions:
(a) Retirees and pensioners of the SSS and GSIS prior to the
effectivity of the National Health Insurance Act;
(b) Members who reach the age of retirement as provided for by
law and have paid at least one hundred twenty (120) monthly
contributions; and
(c) Enrolled indigents.22
Members who have reached the retirement age provided for by law and
have paid at least 120 monthly premium contributions shall register with the
Philippine Health Insurance Corporation as a non-paying member.
The age of retirement referred to is sixty (60) years old with the exception
of those covered by special laws.23
20
Sec. 20, Revised Rules and Regulations Implementing the National Health
Sec. 34, ibid.
21

22
Sec. 36, Revised Rules and Regulations Implementing the National Health
23

CHAPPEK 16 I
341
THE NATIONAL HEALTH INSURANCE ACT
OK I960
Premium contributions for indigent members
Premium contributions for indigent members shall be subsidized
partially by the local government unit where the member resides. The
Philippine Health Insurance Corporation shall provide counterpart financing
equal to the locul government’s subsidy for indigents.
In the case of 4th, 5th and 6th class municipalities, the National
Government shall provide up to 90% of the subsidy for indigents until such time
that they shall have been upgraded to 1st, 2nd or 3rd class municipalities. The
share of the local governments shall be progressively increased until such time
that its share becomes equal to that of the National Government. 24
Benefits under the National Health Insurance Program
The benefits under the National Health Insurance Program are as
follows:
(a) Inpatient hospital care:
1. room and board;
2. services of health care professionals;
3. diagnostic, laboratory, and other medical examination
services;
4. use of surgical or medical equipment and facilities;
5. prescription drugs and biologicals;
6. inpatient education packages.
(b) Outpatient care:
1. services of health care professionals;
2. diagnostic, laboratory, and other medical examination
services;
3. personal preventive services; and
4. prescription drugs and biological.
(c) Emergency and transfer services; and

(d) Such other health care services that the

Philippine Health Insurance Corporation shall determine to
be appropriate and cost-effective.”1
Health services not covered by the National Health Insurance Program

The National Health Insurance Program does not cover
expenses for the following services:25 26
(a) non-prescription drugs and devices;
(b) alcohol abuse or dependency treatment;

(c) cosmetic surgery;
(d) optometric services;
(e) fifth and subsequent normal obstetrical
deliveries;
(f) cost-ineffective procedures, which shall be
defined by the Philippine Health Insurance Corporation.27 28
(g) outpatient psychotherapy and counseling for
mental disorders;
(h) home and rehabilitation services.26
Conditions for entitlement to the benefits
To be entitled to the benefits under the National Health
Insurance Act, the member/dependent should meet the following
conditions:
(a) He must suffer illness or injury which requires
treatment as in-patient or out-patient in an accredited
health care institution;29
25
Sec. 10, R.A. No. 7871, as amended. The Philippine Health Insurance Corporation
also provides outpatient services to its members such as chemotherapy, radiation therapy,
dialysis, cataract extraction and minor surgical procedures performed in an operating room
complex of an accredited facility. For the purposes of this Rules, the operating room fee shall
cover services availed of in the operating room, emergency room, delivery room, dialysis, and
chemotherapy and radiation rooms (Sec. 41, Revised Rules and Regulations
Implementing the National Health Insurance Act of 1995).
26Except when the Philippine Health Insurance Corporation, after actuarial studies,
recommends their inclusion subject to the approval of the Board.

27
28
Sec, 45, Revised Rules and Regulations Implementing the National Health
29
Sec. 46, ibid.
CHAPTER 16 343
(a) He must have paid premium contributions for at least three

(3) months within the 6-month period prior to the first day of his or his
dependents’ availment.
(b) He must show that he contributes thereto with sufficient
regularity, as shown in their health insurance ID card;
(c) He must not be currently subject to the penal sanctions
under the law.30
The series of confinements/procedures for the same illness at intervals
not exceeding ninety (90) calendar days within the calendar year shall be
considered as a single period of confinement. Hence, the member shall only be
entitled for the remainder of the benefit ceilings set by the Philippine Health
Insurance Corporation for that period for drugs and medicines, x-rays,
laboratories, and others.31
Members/dependents can avail of benefits while they are outside the
country as long as they meet the conditions for entitlement and the following
requirements are submitted:
(a) Official receipt of payment or statement of account from the
health care institution where the member/dependent was confined; and
(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 in the equivalent local rate
based on the tertiary hospital category.32
Health care providers

Health care provider refers to:
(a) a duly licensed health care institution 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;”
(b) a health care professional, who is any doctor of medicine,
nurse, midwife, dentist, or other health care practitioner duly licensed
to practice in the Philippines;
(c) a health maintenance organization which provides, offers,
or arranges for coverage of designated health services needed by plan
members for a fixed prepaid premium; or
(d) a community-based health care organization of indigenous
members of the community organized for the purpose of improving the
health status of that community through preventive, promotive and
curative health services.33 34
Health care providers should be accredited

To participate in the National Health Insurance Program, the health
care provider must be accredited by the Philippine Health Insurance
Corporation.35
To qualify for accreditation, the health care provider must have operated
for at least three (3) years.
Health care providers which have not operated for at least three
(3) years may apply and qualify for accreditation if it complies with all the other
accreditation requirements36 and any of the following conditions:
33This refers to hospitals, out-patient clinics, infirmaries, nurseries, dispen-
saries, rehabilitation centers and such other similar names by which they may be
designated.
^Sec. 4 (o), R.A. No. 7871, as amended.
35Sec. 31, ibid.
36The minimum accreditation requirements for health care providers are as
follows:
(a) human resource, equipment and physical structure in conformity
with the standards of the relevant facility, as determined by the Department of
Health;
(b) acceptance of formal program of quality assurance and utilization
review;
(c) acceptance of the payment mechanisms specified in the following
section;
(d) adoption of referral protocols and health resources sharing ar-
rangements;
(e) recognition of the rights of patients; and
(f) acceptance of information system requirements and regular trans-
fer of information (Sec. 33, R.A. No. 7871, as amended).
CHAPTER 16 345
(a) Its managing health care professional has had a working

experience in another accredited health care institution for at least three
(3) years;
fbj It operates as a tertiary facility or its equivalent; or
(c) It operates in a local government unit where the accredited
health care provider cannot adequately or fully service its population.37 *
The 3-year operation requirement is reckoned from the effectivity date of
the initial business permit issued by the office of the local chief executive in the
case of private hospitals, or such date as certified by the local chief executive or
the Department of National Defense fDND), in case of government and military
hospitals respectively.K
Payment of claims
Payment of a health care provider shall be made through any of the
following mechanisms:
(a) Fee for service;
(b) Capitation of health care professionals, institutions or
networks of the same, including health maintenance organizations,
medical cooperatives, and other legally formed health service groups;39
(c) Such other mechanisms as may hereafter be determined by
the Philippine Health Insurance Corporation."
Health care institutions cannot charge processing fees from the member
when claiming reimbursement from the Corporation.
Direct payment to the member is not allowed except in the following
cases:
(a) If the member or dependent was confined abroad;
“’See. 32, R.A No. 7871, as amended.

““Sec. 60, Revised Rules and Regulations Implementing the National Health
39Capitation is a payment mechanism where a fixed rate, whether per person,
family, household, or group, is negotiated with a health care provider (Sec. 4, R.A. No.
7871).
"Sec. 51, Revised Rules and Regulations Implementing the National Health
(b) If drugs, medicines and other medical supplies were

bought and used by the member within the confinement period with
supporting official receipts;
(c) If member advanced the payment because of failure to
submit the required documents;
(d) If the member paid professional fees directly.
Grounds for denial or reduction of claims

The Philippine Health Insurance Corporation may deny or reduce a
claim under the following circumstances:
(a) over-utilization and under-utilization of services;
(b) unnecessary diagnostic and therapeutic procedures and
intervention;
(c) irrational medication and prescriptions;
(d) fraud;
(e) gross, unjustified deviations from currently accepted
standards of practice and/or treatment protocols;
(f) inappropriate referral practices;
(g) use of fake, adulterated or misbranded pharmaceuticals,
or unregistered drugs; or
(h) use of drugs other than those recognized in the latest
PNDF and those for which exemptions were granted by the Board.
When the claim is reduced or denied, the amount thus reduced or
denied cannot be charged, directly or indirectly, to the beneficiary involved.
Compensability of confinement for less than 24 hours

Hospital confinement of less than twenty-four (24) hours are not
compensable, except in the following instances:
(a) when the patient died;
(b) when the patient is transferred to another health care
institution; or
CHAPTER 16 347
(c) in emergency cases.11 *
The Philippine Health Insurance Corporation

The Philippine Health Insurance Corporation is a tax-exempt government
corporation attached to the Department of Health for policy coordination and
guidance.13 Basically, it administers the National Health Insurance Program.13 *
The Philippine Health Insurance Corporation is vested not only with
administrative powers but also quasi-judicial powers, to wit:
(a) to conduct investigations for the determination of a question,
controversy, complaint, or unresolved grievance brought to its attention, and
render decisions, orders, or resolutions thereon;
(b) to summon the parties to a controversy, issue subpoenas
requiring the attendance and testimony of witnesses or the production of
documents and other materials necessary to a just determination of the case
under investigation;
(c) to suspend temporarily, revoke permanently, or restore the
accreditation of a health care provider11 or the right to benefits of a member45
and/or impose fines after due notice and hearing.
Decisions of the Philippine Health Insurance Corporation are immediately be
executory, even pending appeal, when the public interest so requires.16
11
Sec. 52, Revised Rules and Regulations Implementing the National Health Insurance Act of 1995.
“Sec. 14, R.A. No. 7871, as amended.

13
Sec. 16, ibid.
“Suspension of accreditation of a health care provider shall not exceed twenty- four (24) months.
“Suspension of the rights of members shall not exceed six (6) months.
16
CHAPTER 17

(As amended by Republic Act Nos. 1792, 2658, 3839, 4482, 4857,
Presidential Decree Nos. 24, 177, 347, 735,1202,1636,
Executive Order Nos. 28,102, Republic Act Nos. 7322 and 8282)
Development of the Law

Republic Act No. 1161, otherwise known as the Social Security Act of
1954 was approved on July 18, 1954, but it was not implemented until
September 1, 1957. It has undergone several amendments throughout the
years.
The first amendatory act was Republic Act No. 1792 which deleted
the provisions on unemployment benefits. Thereafter, Republic Act No.
2658 was enacted wherein the coverage of the Social Security System was
broadened, the benefits increased and the enjoyment thereof liberalized.
Three (3) years thereafter, Republic Act No. 3839 was promulgated wherein
the retirement benefits were increased and the minimum age requirement
for coverage was removed. On June 19, 1965, Republic Act No. 4482 was
enacted wherein the reimbursable amount of sickness benefits advanced by
employers was increased. Thereafter, several other laws increasing the
amount of social security benefits were promulgated, namely; Republic Act
No. 4857, Presidential Decree Nos. 24, 177, 347, 735, 1202, 1636, Executive
Order Nos. 28, 102, Republic Act Nos. 7322 and 8282, the latter having been
approved on May 1, 1997.
Rationale behind the enactment of the Social Security Law

The Social Security Law was enacted pursuant to the policy of the
State to establish, develop and promote a sound and viable tax-exempt
social security system suitable to the needs of the people
348
OKAFTEE. 17 -
THi SOClAjL SECURITY ACT O? l“fl
itrvsgbcrai th* * Philippir^es and pro-ride mesnlngf-ui protection to r*~''*f* their

oetAficiaries against the hazards of disabilitv. i i « c r a t a t A r n : t v , old age and
death, and other coatiagencies ra*?„tir_g hi loss of ir-corne or financial harden.
/aJidfty of the Social Security Law

The enactment of the Social Security Law is a legitimate *KTCM* rif police
jxr/rer. It is in full accord with the constitutional Prr'r‘ i>1/yn-i; r>n the “promotion of
social justice to insure the well-being and economic security of all the people.”*
Construction of the Social Security Lav/
The provision- of the Social Security Law are to be liberally construed in

favor of those seeking its benefits.*
Social Security Lav/ is not a lav/ on succession
The Social Security System is not a law of succession. It is not the heirs of
the employee but the designated beneficiaries who are to receive the social security
benefits. It is only when the beneficiary ia the estate, or when there is no designated
beneficiary or if the designation of beneficiary is void, that the Social Security
System is required to pay the employee’s heirs.*
Social Security Law is not part of the taxation system
The Social Security Law is not part of the taxation system because it is not
intended for raising revenues but for the promotion of the general welfare/
The funds of the Social Security System are private funds
The funds contributed to the Social Security System are not public inndn.
The funds belong to the members and are merely held in trust, by the Government.
Thus, the inclusion of religious
’ B 2 , Boric) Security Act of i 997, as amended; Roman Catholic Archbishop of

Manila v. SBC, I SCRA 10; CMS Rotate V. KBS, 132 SCRA 108.
*lConnifi Catholic Archbishop of Manila v. SBC, 1 SCRA 10.
‘Ji'rofiklin (hiker Co. of the Philippines v. SSS, 7 SCRA 836, 840.
‘Tociion v. BHB, 3 BCR A 735, 738; SSS v. Davac, 17 SCRA 863.
'■Conn Rotate v. HSH, 132 SCRA 108.
organizations under the coverage of the Social Security Law does not violate
the constitutional prohibition against the application of public funds for the
use, benefit or support of any priest who may be employed by the church.6
Coverage of the SSS Law

It used to be that, the coverage of the Social Security Law is predicated
on the existence of an employer-employee relationship.7 This is no longer true
because the policy now is to encourage even the self-employed to become SSS
members.8
Compulsory coverage
Coverage in the SSS is compulsory upon:
(a) All employers engaged in business in the Philippines,
including religious, charitable or non-profit institutions;8 10 *
(b) All employees not over sixty (60) years of age;'0
(c) Domestic helpers receiving Pl,000.00/month;"
(d) Aliens employed in the Philippines;12
(e) Self-employed persons, including, but not limited to the
following:
(i) Self-employed professionals;
(ii) Partners and single proprietors of businesses;
(iii) Actors, actresses, directors, scriptwriters, and news
correspondents;
(iv) Professional athletes, coaches, trainers, and
jockeys; and
(v) Individual farmers and fishermen.13
‘Homan Catholic Archbishop of Manila v. SSS, 1 SCRA 10.

'Roman Catholic Archbishop of Manila v. SSC, 1 SCRA 10; LUSTEVECO v. SSS,
16 SCRA 6.
"Corporal v. NLRC 341 SCRA 658, 667.
"Sec. 8 (c), Social Security Act of 1997, as amended; Roman Catholic Archbishop
of Manila v. SSC, 1 SCRA 10.
10Sec. 9, (a) Social Security Act of 1997, as amended.
1JSec. 9-A, ibid.
'"Philippine Blooming Mills v. SSS, 17 SCRA 1077, 1080.

'"Sec. 9-A, Social Security Act of 1997, as amended.
CHAPTER 17 351
Effective date of coverage

(a) For employers — on the first day of his operation
(b) For employees — on the first day of his employment
(c) For the self-employed — upon his registration with the
SSS'<
Voluntary coverage
The following may be covered by the SSS on a voluntary basis:
(a) Spouses who devote full time to managing the household
and family affairs; and
(b) Filipinos recruited for overseas employment by foreign-
based employers.111
When a person has secured an SSS number does it mean that he is

already an SSS member?
No. Securing an SSS number does not automatically make a person an
SSS member. He will be considered a member only when he has been reported
for SSS coverage and has paid at least one month contribution.
Can a member withdraw his membership with the SSS?
No. When a person registers for SSS membership, he becomes a
member for life. Therefore, during such time that the member failed to remit
contributions, the benefits and loan privileges provided by the SSS can still
be availed as long as the member meets the qualifying conditions for
entitlement thereto.
Employees not covered by the SSS Law
The Social Security Law does not cover the following:
(a) Purely casual employees;
(b) Employees serving on an alien vessel, when such vessel is
outside of the Philippines; 14 15
14
Sec. 10,
ibid.
15
Sec. 9,
ibid.
(c) Employees of the Philippine government or any of its

instrumentalities and agencies;
(d) Employees of foreign government, international
organization, and their wholly-owned instrumentality;
(e) Temporary employees, if excluded by regulation of the
SSC.‘«
In the absence of a regulation exempting temporary employees from
coverage, temporary employees are covered because there is no way of telling
whether or not the said employees belong to a group or class designated by
regulation of the Social Security Commission as exempt .17
Obligations of employer under the Social Security Law

Employers have two (2) distinct obligations under the Social Security
Law, namely:
(a) To make a timely report of its employees for coverage;18
and
(b) To make timely remittance of premiums.19
Effect of non-reporting or non-remittance
If the employer fails to report the employee for SSS coverage or fails
to remit the premium contributions, such failure or refusal, by express
provision of Section 22 (b) of the Social Security Act, shall not prejudice the
right of the covered employee to social security benefits. In short, the
employee would still be entitled to the social security benefits.
Therefore, if an employee dies, becomes disabled, gets sick or reaches
the retirement age without him being reported for coverage or without the
premium contributions being remitted, the SSS will still pay the employee
the corresponding benefits, but the SSS will hold the employer liable for
damages equivalent to the benefits the employee or his heirs are entitled to
receive.20 Moreover, the employer will be held criminally liable for such
violation.
18
Sec. S (j), ibid.
■’LUSTEVECO v. SSS, 16 SCRA 6.
18
Sec. 24 (a), Social Security Act of 1997, as
amended.
19
Sec. 22 (a), ibid.
“Machuca Tile Co. v. SSS, 30 SCRA 256.
CHAPTER 17 353
Effect of failure to make timely remittance of contributions

Failure to make a timely remittance of the premium contributions will hold
the employer liable to 3% monthly penalty from the date the contribution falls due
until paid.21 The 3% prescribed penalty for failure to remit premium contributions
is intended to ensure that the employer complies with its obligation to remit
premium contributions.22 Furthermore, the employer will be held criminally liable
for such violation.
Good faith is not a defense

The penalty for failure to remit premium contributions is punitive in
character, hence, good faith is not a defense. From the moment the remittance of
premiums due is delayed, the penalty immediately attaches to the delayed
premium payments by force of law.23
Demand is not a condition precedent for remittance of premium

contributions
The employer is duty-bound to remit the contributions without need of any
demand from the employee. It is the legal obligation of every employer to remit
within the first seven (7) days of the month the contributions of the employee and
the employer to the SSS failing in which invites the imposition of a penalty of three
percent (3%). With this mandate of the law, demand on the part of the employee
before the employer remits these contributions to the SSS is not a condition
precedent for such remittance. The Social Security System can collect such
contributions in the same manner as taxes are made collectible under the National
Internal Revenue Code.24
Contributions of the self-employed

The self-employed pays both the employer’s and employee’s contributions.
The monthly earnings declared by the self-employed member at the time of his
registration shall be the basis of his monthly salary credit, unless he makes
another declaration of his
21Sec. 22, Social Security Act of 1997, as amended.

“Santiago v. Court of Appeals, 133 SCRA 34.
“United Christian Missionary Society v. SSS, 30 SCRA
982.
24Lantaco v. Llamas, 108 SCRA 502.
monthly earnings, in which case, such latest declaration becomes the new
basis of his monthly salary credit.25
Policy on the primacy of regular employment over self-employment

If one is both an employee covered by the SSS and a self- employed
person, he shall pay the contributions under both status and coverage.
However, when the combined contributions paid to the SSS as a regular
employee and as a self-employed member exceed the maximum
contributions based on the highest monthly salary credit prevailing at the
time of simultaneous coverage, the excess shall be refunded accordingly
to the member. The excess contributions to be refunded shall come from
the self-employed contributions.26 27 * *
Effect of interruption of business or professional income

If the self-employed member does not earn income in any given
month, he is not required to pay contributions for that month. He may,
however, be allowed to continue paying contributions under the same
rules and regulations applicable to separated employee- member.
Retroactive payment of contributions is not allowed.21
Effect of separation from employment
When an employee under compulsory coverage is separated from
employment, the obligation of the employer and the employee to pay
contributions arising from that employment ceases at the end of the
month of separation.2*
The Social Security Benefits
The benefits under the Social Security Act are as follows:
(a) Maternity leave benefit;2*
(b; Sickness benefit;30
(c) Permanent disability benefits;31
“Sec. 19-A, Social Security Act of 1997, as

amended.
“Circular No. 37-P, May 16, 2007.
27Sec. 11-A, Social Security Act of 1997, as
“Sec. 11, ibid.

amended.
“Sec. 14-A, ibid.
“Sec. 14, ibid.
3,Sec. 13-A, ibid.
CHAPTER 17 355
(d) Retirement benefits;3*

(e) Death benefits;* 33
(0 Funeral benefit.33 * * *
Maternity Leave Benefit33

The maternity leave benefit is available to a female SSS member who:
(a) gives birth or suffers miscarriage/abortion; and
(b) has paid at least three (3) monthly contributions in the 12-
month period immediately preceding the semester of her childbirth, abortion
or miscarriage.
The maternity leave benefit is equivalent to 100% of the average daily salary
credit.38
The duration of maternity leave is;
(a) sixty (60) days for normal delivery; or
(b) seventy-eight (78) days in case of caesarian delivery. Procedure for
availment of the maternity leave benefit;
(a) The employee should notify her employer of her pregnancy and
the probable date of her childbirth which notice shall be transmitted to the
SSS;
(b) The employer shall advance the payment within thirty (30) days
from the filing of the maternity leave application; and
(c) The SSS shall reimburse the employer the amount paid upon receipt
of satisfactory proof of such payment and legality thereof;
32Sec. 12-B, ibid.

*>Sec. 13, ibid.
“See. 13-B, ibid.
33Sec. 14-A, Social Security Act of 1997, as amended.
33Average daily salary credit is the result obtained by dividing the sum of the
six 16) highest monthly salary credits in the twelve-month period immediately pre
ceding the semester of contingency by one hundred eighty (180) (Sec. 8 [n], Social Security Act
of 1997, as amended).
Monthly salary credit is the compensation base for contributions and benefits
as indicated in the schedule in Section Eighteen of the Social Security Act (Sec. 8 [g],
Social Security Act of 1997, as amended).
The maternity leave benefit can be availed of only for the first four (4)
deliveries or miscarriage. It cannot be availed of simultaneously with sickness
benefit.
Sickness Benefit37
Sickness benefit is not payment or reimbursement for hospitalization,
medical treatment or medicine. Rather they are daily cash allowances to help
carry through the employee and his family during his confinement. It is a
stipend to enable the employee and his family to provide themselves with the
bare necessities for subsistence when he is not receiving his wage or salary.38
The sickness benefit is equivalent to 90% of the average daily salary
credit payable for each day of compensable confinement or fraction thereof.
The compensable confinement begins on the first day of sickness.
The sickness benefit is available to an SSS member who:
(a) has paid at least three (31 monthly contributions in the 12-
month period immediately preceding the semester of sickness;
(b) was confined for more than three (3) days in a hospital or
elsewhere with the approval of the SSS; and
(c) has exhausted the company sick leave with pay, if
any.
The daily sickness benefit cannot be paid longer than 120 days in one
calendar year. It cannot be paid for more than two hundred forty (240) days
on account of the same confinement. Unused portion of the 120 cannot be
carried forward to the subsequent year.
Procedure for availment of sickness benefit by employees:
(a) The employee should notify his employer of the fact of his
sickness or injury within five (5) calendar days after the start of his
confinement.
NOTE: If the notice of sickness or injury was filed after five
(5) days, the confinement shall be deemed to have started not
earlier than the fifth day immediately preceding the date of
notification.
37See. 14, Social Security Act of 1997, as

amended.
38SSS Circular No. 41, July 20, 1963.
CHAPTER 17 337
THE SOCIAL SECURITY ACT OF
19&7
If the SSS member is unemployed or self-employed, he shall

directly notify the SSS of his confinement within five 15/ calendar
days after the start thereof.
Notice is not necessary if the employee was confined is in a
hospital or if the employee became sick or was injured while
working or within the premises of the employer.
fb) The employer shall advance the sickness allowances and

pay the employee every regular payday;
fc) The SSS shall reimburse the amount paid by the employer
upon satisfactory proof of payment and legality thereof.
NOTE: If the notification to the SSS was made by the

employer after five (5) calendar days from receipt of the
notification from the employee, the employer shall be
reimbursed only for each day of confinement starting from the
tenth calendar day immediately preceding the date of
notification to the SSS:
The SSS shall reimburse the employer only for confine-
ment within the one-year period immediately preceding the date
of the claim for reimbursement, except confinement in a hospital
in which case the claim for benefit or reimbursement must be
filed within one (1) year from the last day of confinement.
If the employee has given the required notification but the employer
failed to notify the SSS of the confinement or to file the claim for
reimbursement within the prescribed period, resulting in the reduction of the
benefit or denial of the claim, the employer cannot recover the daily
allowance he advanced to the employee.
The claim of reimbursement shall be adjudicated by the SSS within
two (2) months from receipt thereof. If the employer does not receive the
reimbursement within one (1) month from the prescribed 2-month period for
adjudication, the reimbursement shall thereafter earn simple interest of one
percent (1%) per month until paid.
Permanent Total Disability Benefits19

Permanent total disability does not mean a state of absolute
helplessness. It means disablement to do the same or similar kind
“Sec. 13-A, Social Security Act of 1997, as amended.

of work that the SSS member was trained for and accustomed to perform
because of:
(a) Complete loss of sight of both eyes;
fb) Loss of two limbs at or above the ankle or wrists;
(c) Permanent complete paralysis of two limbs;

Id) Brain injury resulting in incurable imbecility or insanity; and
(e) Such cases as determined and approved by the SSS. The
permanent total disability benefits are as follows:
(a) Monthly pension40 — available if the SSS member has
paid at least thirty-six (36) monthly contributions prior to the semester
of disability;
NOTE: The monthly pension and dependent’s pension shall be

suspended:
1. upon the re-employment or resumption of self- employment;
2. upon recovery of the disabled member from his permanent
total disability; or
3. by failure to undergo examination at least once a year upon
notice by the SSS.
(b) Lump sum benefit — available if the SSS member’s

contribution is less than thirty-six (36) monthly contributions.
NOTE: The lump sum benefit is equivalent to the monthly

pension times the number of monthly contributions paid to the SSS
or twelve (12) times the monthly pension, whichever is higher. * (ii)
■"The monthly pension under the Social Security Act is the highest of the following
amounts:
(a) The sum of the following:
(i) Three hundred pesos (P300.00), plus
(ii) Twenty percent (20%) of the average monthly salary credit, plus
(iii) Two percent (2%) of the average monthly salary credit for each credited
year of service in excess of ten (10) years; or
(b) Forty percent (40%) of the average monthly salary credit; or
(c) One thousand pesos (PI ,000.00) (Sec. 12, Social Security Act of1997, as amended).
L
CHAPTER 17 Z59
THE SOCIAL SECURITY ACT OF 1W
If a member who has received the lump sum benefit is re-

employed or has resumed self-employment he shall again be
subject to compulsory coverage and shall be considered a new
member.
Effect of death of a permanently and totally disabled pensioner:

(a) If the permanently and totally disabled pensioner dies, the
primary beneficiaries as of the date of the disability shall be entitled to
receive his monthly pension;
(b) If permanently and totally disabled pensioner has no
primary beneficiaries and he dies within sixty (60) months41 from the
start of his monthly pension, the secondary beneficiaries shall be
entitled to a lump sum benefit.
NOTE: The lump sum benefit is equivalent to the total

monthly pensions corresponding to the balance of the five-year
guaranteed period excluding the dependents’ pension.
i
Permanent Partial Disability Benefits42 l
Permanent partial disability is a situation where the employee is
unable to continue with his former work because of complete and permanent
loss of use of the following anatomical part of his body:
One thumb • One little finger • One foot • Hearing of one ear
One index finger • One big toe • One leg • Hearing of both ears
One middle finger • One hand • One ear • Sight of one eye
One ring finger • One arm • Both ears
The permanent partial disability benefits are as follows:

(a) Percentage of the lump sum benefit — available if
the permanent partial disability occurs before thirty-six (36) monthly
contributions have been paid prior to the semester of disability;
(b) Monthly pension - available if the permanent partial
disability occurs after thirty-six (36) contributions, payable in
accordance with the following schedule:
““Equivalent to five years.

42Sec. 13-A, Social Security Act of 1997, as
amended.
Complete and Permanent Number of Months

Loss of the Use of
Loss of One little finger 3 months

Loss of One ring finger 5 months
Loss of One middle finger 6 months
Loss of One big toe 6 months
Loss of One index finger 8 months
Loss of One thumb 10 months
Loss of One ear 10 months

Loss of Hearing of one ear 10 months
Loss of Both ears 20 months
Loss of Sight of one eye 25 months

Loss of One foot 31 months
Loss of One hand 39 months
Loss of One leg 46 months

Loss of One arm 50 months
Loss of Hearing of both ears 50 months
NOTE: The monthly pension benefit for permanent

partial disability will be given in lump sum if it is payable in
less than 12 months.
The partial disability pension ceases upon retirement or
death.
Retirement Benefits43
The retirement benefit under the Social Security Act can be
availed of by the SSS member if he has:
(a) reached the age of 60 years or the compulsory
retirement age of 65 years; and
(b) already retired from service or ceased to be self-
employed.
^Sec. 12-B, Social Security Act of 1997, as amended.

Death Benefits16
The death benefits of a member of the SSS consist of a lump sum
amount computed as follows:
(a) Thirty-six (36) times the monthly pension - if
the member has paid at least thirty-six (36) monthly contribu-
tions*7 prior to the semester of death;
(b) Monthly pension times the number of monthly
contributions paid or twelve (12) times the monthly pension,
whichever is higher — if the member has not paid the thirty-six
(36) monthly contributions.
Funeral Benefits48
This is granted to help defray the cost of funeral expenses of a
member who dies, including death of a permanently totally disabled
member or retiree.
The funeral benefit is Twelve Thousand Pesos (P12,000.00) payable
in cash or in kind.
The Primary Beneficiaries

The primary beneficiaries under the Social Security Act are:
(a) the dependent spouse, until he or she remarries; and
(b) the dependent legitimate, legitimated or legally
adopted, and illegitimate children.
The existence of both legitimate/legitimated/legally adopted and
illegitimate children entitles the illegitimate children to fifty percent (50%)
of the share of the legitimate/legitimated/legally adopted children.
In the absence of legitimate/legitimated/legally adopted children,
the illegitimate children will be entitled to one hundred percent (100%) of
the benefits."
If an SSS member while still unmarried, designates his brothers
and sisters as beneficiaries, his children would be entitled * 49
"Sec. 13, Social Security Act of 1997, as

amended.
' ." .'"valent to three (3) years.
"Sec.
49 Sec.13-B,
8 (kl,Social
ibid. Security Act of 1997. as
amended.
CHAPTER 17 363
THE SOCIAL SECURITY ACT OF
1997
to the benefits under the Social Security Law, even if the covered
member failed to change the designation of beneficiaries after his
marriage because the benefits under the Social Security Law are vested
only upon death of the member.
Brothers and sisters may not be designated as beneficiaries

except in default, not only of surviving spouse and children, but also of
“legitimate parents of the covered employee.”
The Secondary Beneficiaries
The secondary beneficiaries under the Social Security Act are:

(a) the dependent parents; or
(b) any other person designated by the member as his secondary
beneficiary."
The dependents
The dependents of an SSS member are the following:
(a) The legal spouse entitled by law to receive support
from the member;
(b) The legitimate, legitimated, legally adopted, and illegitimate
child who:
(i) is unmarried; and
(ii) has not reached twenty-one (21) years of age; or
(iii) if over twenty-one (21) years of age, he is con-
genitally incapacitated or while still a minor has been
permanently incapacitated and incapable of self-support,
physically or mentally;
(c) The parent who is receiving regular support from the
member."
"'Merced v. Vda. de Merced, 19 SCRA 423.

"'See. 8 (It), Sociul Security Act of 1997, as amended. “Sec. 8 (e), ibid.
The dependents’ pension”

This is granted to dependents in case of death, permanent total
disability or retirement of an SSS member.
The dependents’ pension is equivalent to ten percent (10%) of the
monthly pension or Two hundred fifty pesos (P250.00), whichever is higher,
payable to each dependent child conceived on or before the date of contingency
but not exceeding five (5) beginning with the youngest and without
substitution.
Where there are legitimate and illegitimate children, the former shall
be preferred.
The Social Security System (SSS)

The SSS is the implementing arm of the Social Security Act. It is a
corporate body directed and controlled by the Social Security Commission.
The SSS exercises the following powers and duties:
(a) To submit annually not later than April 30, a public report
to the President of the Philippines covering its activities in the
administration and enforcement of the Social Security Act during the
preceding year including information and recommendations on broad
policies for the development and perfection of the program of the SSS;
(b) To require the actuary to submit a valuation report on the
SSS benefit program every four (4) years, or more frequently as may
be necessary, and to undertake the necessary actuarial studies and
calculations concerning increases in benefits and the financial
stability of the SSS and to provide for feasible increases in benefits
every four (4) years, including the addition of new ones under such
rules and regulations as the Commission may adopt subject to
approval by the President;
(c) To establish offices of the SSS to cover as many provinces,
cities and congressional districts, whenever and wherever it may be
expedient, necessary and feasible, and to inspect or cause to be
inspected periodically such offices;
CHAPTER 17 365
(d) To enter into agreements or contracts for such service

and aid, as may be needed for the proper, efficient and stable
administration of the SSS;
(e) To adopt from time to time a budget of expenditures
including salaries of personnel, against all funds available to the
SSS under the Social Security Act;
(f) To set up its accounting system and provide the
necessary personnel therefor;
(g) To require reports, compilations and analyses of
statistical and economic data and to make investigations as may be
needed for the proper administration and development of the SSS;
(h) To acquire and dispose of property, real or personal,
which may be necessary or expedient for the attainment of the
purposes of the Social Security Act;
(i) To acquire, receive, or hold, by way of purchase,
expropriation or otherwise, public or private property for the
purpose of undertaking housing projects preferably for the benefit
of low-income members and for the maintenance of hospitals and
institutions for the sick, aged and disabled, as well as schools for
the members and their immediate families;
(j) To sue and be sued in court; and
(k) To perform such other acts as it may deem appropriate
for proper enforcement of the Social Security Act.11
Social Security System may sue and be sued

The Social Security System is a juridical entity with a personality
separate and distinct from the Government. The System’s own organic
act specifically provides that it can sue and be sued in Court. These words
“sue and be sued” embrace all civil process incident to a legal action. The
law itself has given the private citizen a remedy for the enforcement and
protection of his rights. A private citizen, therefore, may bring a suit
against it for varied objectives, such as in this case, to obtain
compensation in damages arising from contract and even for tort.86
“Sec. 4, Social Security Act of 1997, as amended.

“SSS v. Court of Appeals, 120 SCRA 707,
The Social Security Commission (SSC)

The Social Security Commission is composed of the following:
(a) Secretary of Labor and Employment or his duly
designated undersecretary;
(b) SSS President; and

(c) Seven (7) members to be appointed by the President
of the Philippines, to wit:
(i) three (3), representing the workers’ group, at least
one (1) of whom shall be a woman;
(ii) three (3), representing the employers’ group, at
least one of whom shall be a woman; and
(iii) one (1), representing the general public who should
have adequate knowledge and experience regarding social
security.
The six (6) members representing workers and employers shall be
chosen from among the nominees of workers’ and employers’ organizations,
respectively.
The Chairman of the SSC shall be designated by the President from
among its members.
The term of the appointive members shall be three (3) years. They
shall continue to hold office until their successors shall have been appointed
and duly qualified. All vacancies, prior to the expiration of the term, shall
be filled for the unexpired term only.
The SSC is co-equal in rank with the Regional Trial Courts.
Therefore, the Regional Trial Court cannot issue writs of Injunction,
Certiorari and Prohibition against the SSC.M
The SSC performs administrative as well as quasi-judicial functions.
It may sue and be sued in the Regional Trial Courts only on matters
connected with its administrative functions, but not on matters connected
with its quasi-judicial functions. For this reason, Section 5(c) of said Act,
explicitly provides in connection with “decisions” of the Social Security
Commission or the determinations thereof in the exercise of said functions,
that the same “may be 66
66Pobletc Construction v. SSC, 10 SCRA 1; Philamlife v. SSC, 20 SCRA 162.

CHAPTER 17 367 {,
reviewed both upon the law and the facts by the Court of Appeals” or by
the Supreme Court if the decision involves questions of law. 5;
The administrative functions are as follows:
(a) To adopt, amend and rescind, subject to the approval of the
President of the Philippines, such rules and regulations as may be
necessary to carry out the provisions and purposes of the Social
Security Act.
fb) To establish a provident fund for its members which will
consist of voluntary contributions of employers and/or employees,
self-employed and voluntary members and their earnings, for
payment of benefits to such members or their beneficiaries, subject
to such rules and regulations as it may promulgate and approved by
the President of the Philippines;
(c) To maintain a Provident Fund from the contributions
made by both the SSS and its officials and employees and their
earnings, for the payment of benefits under such terms and
conditions as it may prescribe;
fd) To approve restructuring proposals for the payment of due

but unremitted contributions and unpaid loan amortizations under
such terms and conditions as it may prescribe;
(e) To authorize cooperatives registered with the Coop-
erative Development Authority or associations registered with the
appropriate government agency to act as collecting agents of the SSS
with respect to their members;
(f) To compromise or release, in whole or in part, any
interest, penalty or any civil liability to SSS in connection with the
investments authorized under Section 26 hereof, under such terms
and conditions as it may prescribe and approved by the President of
the Philippines; and
(g) To approve, confirm, pass upon or review any and all
actions of the SSS in the proper and necessary exercise of its powers
and duties hereinafter enumerated.”1
Quasi-judicial functions of the SSC

The SSC has jurisdiction over disputes arising under the Social
Security Act with respect to coverage, entitlement of benefits, collection and
settlement of contributions and penalties thereon, or any other matter
related thereto.59
In the exercise of its quasi-judicial functions, the SSC can order motu
proprio the remittance of unpaid premium contributions discovered in the
course of the proceedings before it. The hearings before the Commission are
administrative and are not strictly governed by the technical rules of
procedure that are applied to judicial trials.60
However, the SSC has no authority to condone penalties for late
payment. Being a mere trustee of the funds of the SSS which actually
belong to the members, the SSC cannot legally perform any acts affecting
the same, including condonation of penalties, that would diminish the
property rights of the owners and beneficiaries of such funds without an
express or specific authority therefor.61
The SSC has jurisdiction over claim for damages. Section 5(a) of the
Social Security Act provides that the “filing, determination and settlement
of claim shall be governed by the rules and regulations promulgated by the
Commission; and the rules and regulations thus promulgated state that the
effectivity of membership in the System, as well as the final determination
and settlement of claims shall be vested in the Commission. The term
‘claims’ is broad enough to include a claim for ‘damages’ under Section 24.” 62
Appeal from decisions of the SSC

Decisions of the SSC are appealable to the Court of Appeals under
Rule 43 of the Rules of Court by filing a verified petition for review within
fifteen (15) days from notice of judgment. Judicial review thereof shall be
permitted only after any party claiming to be aggrieved thereby has
exhausted his remedies before the Commission.63
“See. 5 (a). Social Security Act of 1997, as amended, Sec. 1, Rule III, Rules of Pleading,
Practice and Procedure of the SSC.
“Oromega Lumber Co. v. SSC, L-14833 April 28, 1962: Jalotlot v. Marinduque Iron
Mines, 14 SCRA 187.
31United Christian Missionary Society v. SSC, 30 SCRA 982.
“'Poblete Construction v. Asian, 20 SCRA 1143.

“3Sec. 5 (b), Social Security Act of 1997, as amended.
CHAPTER 18
THE GOVERNMENT SERVICE INSURANCE SYSTEM
ACT OF 1997

■ _________________________________________________________________________________________
Coverage of the Government Service Insurance System (GSIS)

The GSIS covers government employees, irrespective of em-
ployment status, who are employed with:
(a) the national government, its political subdivisions,
branches, agencies or instrumentalities;
(b) government-owned or controlled corporations;
(c) government financial institutions with original
charters;
(d) constitutional commissions; and
(e) the judiciary.1
Compulsory membership
Membership with the GSIS is compulsory upon:
(a) All government personnel who are receiving fixed
monthly compensation and have not reached the mandatory
retirement age of 65 years, whether elective or appointive;
(b) Elective officials who will be more than 65 years old
at the end of his term (including the period of his re-election
without interruption);
'See. 3, GSIS Act of 1997.
369
(c) Officials appointed by the President of the Republic of

the Philippines who remain in office after reaching the age of 65;
(d) Contractual or casual employees who receive fixed
monthly compensation and render the required number of
working hours for the month.1
Employees not subject to compulsory coverage of the GSIS

The following employees are excluded from compulsory cover-
age of the GSIS:
(a) Uniformed personnel of the Armed Forces of the
Philippines, Philippine National Police, Bureau of Fire
Protection, and Bureau of Jail Management and Penology;
ib) Barangay and Sanggunian Officials who are not
receiving fixed monthly compensation;
(c) Contractual Employees who are not receiving fixed
monthly compensation; and
(d) Employees who do not have monthly regular hours of
work and are not receiving fixed monthly compensation.3
Classes of GSIS membership

GSIS membership is classified as follows:
(a) Regular or Special
Regular Members — those employed by the government of
the Republic of the Philippines, national or local, legislative
bodies, government-owned and controlled corporations (GOCC)
with original charters, government financial institutions (GFIs),
except uniformed personnel of the Armed Forces of the
Philippines, the Philippine National Police, Bureau of Jail
Management and Penology (BJMP) and Bureau of Fire
Protection (BFP), who are required by law to remit regular
monthly contributions to the GSIS;
Special Members — the constitutional commissioners,
members of the judiciary, including those with equivalent
2Sec.3, Rule II, Revised Implementing Rules of the GSIS Act of 1997.
■Sec. 2, ibid.
CHAPTER 18 371
THE GOVERNMENT SERVICE INSURANCE SYSTEM ACT OF 1997
ranks, who are required by law to remit regular monthly

contributions for life insurance policies to the GSIS in order to
answer for their life insurance benefits;
Cb) Active or Inactive

Active member — refers to a member of the GSIS, whether
regular or special, who is still in the government service and
together with the government agency to which he belongs, is
required to pay the monthly contribution.
Inactive member — a member who is separated from the

service either by resignation, retirement, disability, dismissal from
the service, retrenchment or, who is deemed retired from the
service under this Act.*
Effective date of GSIS membership

GSIS membership takes effect on the date of assumption to office
by virtue of the original appointment or election.5 6
Separation from the service does not terminate GSIS

membership
A GSIS member who is separated from the service continues to be
a member, and therefore, entitled to whatever benefits he has qualified
to in the event of any compensable contingency.'
The GSIS benefits

Members of the GSIS are entitled to the following benefits:
(a) Separation benefits;7
(b) Unemployment or involuntary separation benefits;'
(c) Permanent total disability benefits;8 9
(d) Permanent partial disability benefits;1"
(e) Temporary total disability benefit;11
‘Sec. 2, Rule II, Revised Implementing Rules of the GSIS Act of 1997.
6Sec. 5, ibid.
6Sec. 4, GSIS Act of 1997.
7Sec. 11, ibid.
BSec. 12, ibid.
9Sec. 16, ibid.
“Sec. 18, ibid.

(f) Retirement Benefits;'-1

(g) Survivorship benefits;'-1
(h) Funeral benefit;'*
fi) Life insurance benefits
Separation benefits
The separation benefit consists of the following:
(a) For members who resign or are separated from the service
after rendering service for at least 3 years but less than 15 years:
Cash payment equivalent to 100% of the average monthly
compensation12 13 * 15 16 17 for each year of service he paid contributions,
but not less than P12,000.00 payable upon reaching the age of 60 years
or upon separation, whichever comes later.
(b) For members who resign or are separated from the service
after rendering at least 15 years of service and is below 60 years old at
the time of resignation or separation:
Cash payment equivalent to 18 times his basic monthly pension
payable at the time of resignation or separation, plus an old-age
pension benefit equal to the basic monthly pension payable monthly
for life upon reaching the age of 60 years.11
Unemployment or involuntary separation benefits

This is available to permanent employees involuntarily separated
from the service due to the abolition of office.
The unemployment benefit is in the form of monthly cash payments
equivalent to 50% of the average monthly compensation payable for the
following duration:
12Sec. 13, ibid.

13Sec. 20, ibid.
“Sec. 23, ibid.
“Sec. 24, ibid.
16Average monthly compensation is the quotient arrived at after dividing the
aggregate compensation received by the member during his last thirty-six (36) months of
service preceding his separation/retirement/disability/death by thirty-six (36), or by the
number of months he received such compensation if he has less than thirty-six (36) months of
service (Sec. 2 [l], GSIS Act of1997).
17Sec. 11, supra.
CHAPTER IS 373
THE GOVERNMENT SERVICE INSURANCE SYSTEM ACT OF VZH
(a) 2 months — if contributions have been made for 1

year but less than 3 years;
(bj 3 months — if contributions have been made for 3
years but less than 6 years;
(c) 4 months — if contributions have been made for 6
(d) 5 months — if contributions have been made for 9
(e) 6 months — if contributions have been made for 11
Conditions for Entitlement to Unemployment Benefit

GSIS members are entitled to the unemployment benefits if the
following conditions are met:
(a) he was a permanent employee at time of separation;
(b his separation was involuntary due to the abolition of
his office; and
(c) he has been paying the required premium contribu-
tions for at least 1 year prior to separation.'8
Permanent Total Disability Benefits

Permanent total disability means disability caused by injury or
disease resulting in complete, irreversible and permanent incapacity
to work or to engage in any gainful occupation.18
The following disabilities shall be deemed total and permanent:
(a) complete loss of sight for both eyes;
(b) loss of two limbs at or above the ankle or wrists;
(c) permanent complete paralysis of two limbs; and
(d) brain injury resulting in incurable imbecility or insanity;
1BSec. 22, Revised Implementing Rules and Regulations of the GSIS Act of
1997.
10Sec 23.2,1 Revised Implementing Rules of the GSIS Act of 1997.
x e> such other cases as may be determined and approved by

the GSIST"
The permanent total disability benefits for GSIS members are as
follows:
(a) If the permanent total disability was suffered while in

the service
Lifetime monthly income benefit equal to the basic monthly
pension11 plus cash payment equivalent to 18 times his basic monthly
pension, provided that a total of at least 180 monthly contributions has
been paid;n
lb) If the permanent total disability was suffered after
separation from service
Lifetime monthly income benefit equal to the basic monthly
pension effective from the date of disability, provided that the member
has paid:
(i) 36 monthly contributions within the 5-year period
immediately preceding his disability, or
(ii) 180 monthly contributions, prior to his disability.23
(c) If the member has not paid the required minimum
contributions and the permanent total disability was suffered
after separation from service
His separation benefit equivalent to 100% of his average monthly
compensation for each year of service (but not less than P12.000) shall
be paid in advance, provided that he has rendered at least three (3) years
of service at the time of his permanent total disability. 2* * 21
MSec 23.2,1 ibid.

21The basic monthly pension is equal to:
(a) thirty-seven and one-half percent (37.5%) of the revalued average monthly
compensation; plus
(b) two and one-half percent (2.5%) of said revalued average monthly compensation for
each year of service in excess of fifteen (15) years: Provided, That the basic monthly pension
shall not exceed ninety percent (90%) of the average monthly compensation (Sec, 9, GSIS Act
of1997).
^Sec. 16, GSIS Act of 1997,
MSec. 16, GSIS Act of 1997.
^Sec. 16, ibid.

CHAPTER 18 375
NOTE: A member cannot simultaneously enjoy the

monthly income benefit for permanent disability and the old-
age retirement.2*
A member is not entitled to the benefit if the permanent
total disability was caused by his grave misconduct, notorious
negligence, habitual intoxication, or willful intention to kill
himself or another.26
Permanent Partial Disability Benefits

The disability is permanent and partial when the GSIS member is
incapacitated to work for a limited period of time because of complete and
permanent loss of any of the following body parts:
• any finger • one leg

• any toe • one or both ears
• one arm • hearing of one or both ears
• one hand • sight of one eye
• one foot • other cases as may be determined by the GSIS27
The permanent partial disability benefits consist in cash
payment in accordance with a schedule of disabilities prescribed by
the GSIS.28
A GSIS member is entitled to permanent partial disability benefit:
(a) if he was in the service at the time of disability; or

(b) if separated from the service, he has paid at least 36
months contributions within the 5-year period immediately
preceding his disability; or has paid a total of at least 180 months
contributions prior to the disability; provided, that the following
conditions are met:
1. he is gainfully employed prior to the commence-

ment of disability resulting in loss of income as evidenced by
any incontrovertible proof thereof;
Sec. 16, ibid.

2*Sec. 15, ibid.
27Sec.17, ibid; Sec. 23.2.2, Revised Implementing Rules and Regulations of the
GSIS Act of 1997.
MSec. 17, ibid.
2. he is not a registered member of any social insurance

institution; and
3. he is not receiving any other pension either from
GSIS or another local or foreign institution or organization.29
NOTE: A member is not entitled to the benefit if the permanent partial

disability was caused by his grave misconduct, notorious negligence, habitual
intoxication, or willful intention to kill himself or another.™
Temporary Total Disability Benefits

The disability is temporary and total when the GSIS member is
momentarily incapacitated to work or engage in any gainful occupation as a
result of impairment of physical or mental faculties which can be
rehabilitated or restored to their normal functions.31
The temporary total disability benefit of GSIS members is:
75% of the current daily compensation for each day of disability for a
period not exceeding 120 days in one calendar year.
NOTE: If the disability requires more extensive treatment

beyond 120 days, the payment of the temporary total disability
benefit may be extended by the GSIS for a period not exceeding 240
days.
A GSIS member is entitled to temporary total disability benefit under

the following conditions:
(a) The GSIS member must be in the service at the time of
his disability or, if separated, he has:
(i) rendered at least three (3) years of service; and
(ii) paid at least six (6) monthly contributions in the 12-

month period immediately preceding his disability.
29Sec. 23.4.2, Revised Implementing Rules and Regulations of the GSIS Act of
1997.
1997.
\
(b) The GSIS member must have exhausted all his sick leave
credits.3*
NOTE: A GSIS member cannot enjoy the temporary total

disability benefit and sick leave pay simultaneously.32 33
A member is not entitled to the benefit if the permanent
partial disability was caused by his grave misconduct,
notorious negligence, habitual intoxication, or willful
intention to kill himself or another.34
Suspension of disability benefits

Unless the member has reached the minimum retirement age, disability
benefits shall be suspended when he:
(a) is reemployed or
(b) recovers from disability as determined by the GSIS-, or
(c) fails to present himself for medical examination when required
by the GSIS.35
Forfeiture of disability benefits

The disability benefits will be automatically forfeited if the GSIS
member refuses or fails:
(a) to have himself medically treated by a physician when
required by the GSIS;
(b) to take the prescribed medications;
(c) to have himself confined in a hospital, when such
confinement is required by the GSIS; or
(d) to avail himself of rehabilitation facilities as may be duly
recommended by the GSIS; or

33Sec. 18, ibid.
1997.
(e) to observe such precautionary or preventive measures as

prescribed by a physician to prevent the aggravation or continuance of his
disability.36 37
Retirement Benefits
To be entitled to the retirement benefits, the GSIS member must meet
the following conditions:
(a) he has rendered at least fifteen (15) years of service;
(b) he is at least sixty (60) years of age at the time of retirement;
and
(c) he is not receiving a monthly pension benefit from permanent
total disability.31
A retiring GSIS member has the following options:
(a) 5-year lump sum equivalent to 60 months of basic monthly
pension.38 After the lapse of the 5-year period, old-age pension benefit
equal to the basic monthly pension payable for life; or
(b) Cash payment benefit equivalent to 18 times of the basic
monthly pension plus monthly pension for life;39
Effect of Death of the GSIS Member While the Retirement
Claims Are Being Processed
(a) If the deceased member opted for 5-year lump sum benefit,
his legal heirs shall be entitled to 5-year lump sum benefit equivalent to
60 months basic monthly pension. But the survivorship pension shall be
granted only after the end of the 5-year guaranteed period;
1997.
37Sec.13-A, GSIS Act of 1997.
38The basic monthly pension is equal to:
(a) thirty-seven and one-half percent (37.5%) of the revalued average monthly
compensation; plus
(b) two and one-half percent (2.5%) of said revalued average monthly compensation for
each year of service in excess of fifteen (15) years: Provided, That the basic monthly pension shall
not exceed ninety percent (90%) of the average monthly compensation (Sec. 9, GSIS Act of 1997).
39Sec. 20.2, Revised Implementing Rules and Regulations of the GSIS Act of
1997.
CHAPTER 18 379
(b) If the deceased member opted for immediate pension, his

legal heirs shall be entitled to the cash payment benefit equivalent to
18 months of basic monthly pension, plus accrued pension up to the
date of death of the retiree.
(c) If the deceased member failed to indicate any retirement
option, the retirement benefit shall be computed as if he opted for
immediate pension.*0
Survivorship Benefits
If the GSIS member dies, the primary beneficiaries'1 are entitled to the
following survivorship benefits, whichever is applicable:
(a) Survivorship pension, under the following conditions:
(i) The deceased was in the service at the time of his
death; or
(ii) if separated from the service,
• has at least three (3) years of service at the time
of his death and has paid thirty-six (36) monthly
contributions within the five-year period immediately
preceding his death; or
• has paid a total of at least one hundred eighty
(180) monthly contributions prior to his death;
(b) Survivorship pension plus a cash payment equivalent to
one hundred percent (100%) of average monthly compensation for
every year of service, under the following conditions:
(i) the deceased was in the service at the time of his
death; and
(ii) must have rendered at least three (3) years of
service.
(c) Cash payment equivalent to one hundred percent (100%)
of his average monthly compensation for each year
‘“Sec. 20.5, ibid.

"The primary beneficiaries are the legal dependent spouse until he/she remarries and
the dependent children (Sec. 2 [g], GSIS Act of 1997).
of service he paid contributions, but not less than Twelve thousand pesos
(P12,000.00), under the following conditions:
(i) the deceased has rendered at least three (3) years of
service prior to his death;
(ii) but does not qualify for survivorship pension
mentioned above.42
The survivorship pension shall be paid to:
(a) the dependent spouse - if she is the only survivor, to be
enjoyed for life or until he/she remarries;
(b) the dependent children43 — if they are the only survivors, to
be enjoyed for as long as they are qualified, plus the dependent children’s
pension;44 *
(c) the dependent spouse and the dependent children, if they are
survivors — the dependent spouse shall receive the basic survivorship
pension for life or until he/she remarries, while the dependent children
shall receive the dependent children’s pension equivalent to 10% of the
basic monthly pension for every dependent child not exceeding five (5),
counted from the youngest and without substitution.46
If there are no primary beneficiaries, the survivorship benefits shall be paid to
the secondary beneficiaries46 in the following amount:
(a) Cash payment equivalent to 100% of the average monthly
compensation for each year of service he paid contributions, but not less
than Twelve thousand pesos (P12,000), if the GSIS member:
(i) was in the service at the time of his death; and
“Sec. 21, GSIS Act of 1997.

“The dependent children are the unmarried the legitimate, legitimated, or
legally adopted child including the illegitimate child, not gainfully employed, not over
the age of majority, or over the age of majority but incapacitated and incapable of self-
support due to a mental or physical defect acquired prior to age of majority (Sec. 2/77,
GSIS Act of1997).
44The dependent children’s pension is 10% of the basic monthly pension for every
dependent child not exceeding five (5), counted from the youngest and without
substitution.
“Sec. 21, GSIS Act of 1997.
“Secondary beneficiaries are the dependent parents and, subject to the re-
strictions on dependent children, the legitimate descendants (Sec. 2 [h], GSIS Act of
1997).
CHAPTER 18 381
(ii) has at least three (3) years of service.

In the absence of secondary beneficiaries, the benefits shall be paid to his
legal heirs.41
Funeral Benefits
Funeral benefit is intended to help defray the expenses incident to the
burial and funeral of the deceased member, pensioner or retiree. It is payable to
any qualified individual, in accordance with the following order of priority:
(a) Legitimate spouse;

(b) Legitimate child who spent for the funeral services;
(c) Any other person who can show incontrovertible

proof that he shouldered the funeral expenses of the deceased.48
The funeral benefit is:
(a) The prevailing amount approved by the Board of Trustees at

the time of death of the member or pensioner;
(b) P10,000.00 — For uniformed members of the Philip-

pine National Police, Bureau of Jail Management and Peno-
logy, and Bureau of Fire Protection.49
The GSIS life insurance is compulsory and available to all employees,

except for Members of the Armed Forces of the Philippines and the Philippine
National Police.50
Prescriptive period for filing claims

Claims for GSIS benefits except for life insurance and retirement must be
filed within 4 years from the date of contingency. Claims filed after 4 years will
be barred by prescription.61

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SECTION 3. Definitions. — For the purpose of this Act, unless the

(a) Agrarian Reform means the redistribution of lands,

12DAR Administrative Order No. 02, series of

stocks, which will allow beneficiaries to receive a just share of

immediate farm household, whether the land is owned by him'her,

'"As amended by R.A. No. 9700. 111

Aa amended by R.A. No. 9700.

1;RepubIic v. Salvador N. Lopez Agri-Business Corp., 639 SCRA 49.

(b) All lands of the public domain in excess of the

10As amended by R.A. No. 9700.

(c) Private lands actually, directly and exclusively used

SECTION 5. Schedule of Implementation. — The

SECTION 6. Retention Limits. — Except as otherwise

size of which shall vary according to factors governing a viable

(3) months after the effectivity of this Act. Thereafter, all

Can a landowner who has already exercised his retention rights

23Sec. 2 (b), DAR Administrative Order No. 05-00.

Who has the right to choose the retention area?

Suppose the retention area chosen by the landowner is tenanted, what

27Sec, 6, Comprehensive Agrarian Reform Law, as amended.

Effect if the tenant chooses to remain in the retained area

34Rodriguez v. Salvador, 651 SCRA 429.

(g) Buy the agricultural landholding under reasonable

What is the term of the lease?

(b) Absence of successor (i.e., surviving spouse, eldest direct

Effect if the Tenant Chooses to be a Beneficiary

Children of the Landowner are Entitled to 3 hectares each

22 AGRARIAN LAW AND SOCIAL LEGISLATION

The child need not directly or personally till the land — it js

Right of Homesteaders vis-a-vis Right of Tenants

Section 6 of the Comprehensive Agrarian Reform Law also