STA.

RITA vs CA
G.R. No. 119891 August 21, 1995

FACTS:
Petitioner w*s ch*rged in the RTC with viol*ting Soci*l Security L*w. It
w*s *lleged th*t petitioner, *s Pres./GM of B. St*. Rit* Co., Inc. *
compulsorily covered employer under the SS L*w refused to remit to the
contributions for SSS, Medic*re *nd Employees Compens*tion for its
covered employees. Petitioner moved to dismiss s*id crimin*l c*se on the
following grounds: 1. f*cts ch*rged do not constitute *n offense, *nd; 2.
RTC h*s no jurisdiction over the c*se. RTC dismissed the crimin*l c*se *nd
ruled th*t the MOA entered into between SSS *nd DOLE extending the
cover*ge of Soci*l Security, Medic*l C*re *nd Employment Compens*tion
l*ws to Filipino se*f*rers on bo*rd foreign vessels w*s null *nd void *s it
w*s entered into by the Administr*tor of the SSS without the s*nction of
the Commission *nd *pprov*l of the President, in contr*vention of SS L*w.
The People, through the SolGen, filed in the CA * petition for certior*ri,
prohibition *nd m*nd*mus *ss*iling the order of dismiss*l issued by the
RTC. CA gr*nted the petition *nd ordered RTC to reinst*te the crimin*l
c*se *g*inst petitioner. MR by petitioner w*s denied.
Petitioner filed * PR before the SC contending th*t the Filipino se*f*rers
recruited by B. St*. Rit* Co. *nd deployed on bo*rd foreign vessels
outside the Philippines *re exempt from the cover*ge of SS L*w under
Section 8 (j) (5) thereof:
EMPLOYMENT — Any service performed by *n employee for his employer,
except —
Xxx
5) Service performed on or in connection with *n *lien vessel by *n
employee if he is employed when such vessel is outside the Philippines.
Hence, the MOA entered into by the DOLE *nd the SSS is null *nd void
*s it h*s the effect of *mending the *forequoted provision of R.A. No.
1161 by exp*nding its cover*ge.

ISSUE: WON the se*f*rers recruited *nd deployed on bo*rd foreign vessels
outside the PH by petitionerʼs comp*ny *re covered by SS L*w

RULING: YES

RATIONALE: Respondent *ppell*te court correctly upheld the v*lidity of

the MOA entered into between the DOLE *nd the SSS. Upon the one
h*nd, contr*ry to the tri*l court's finding, the MOA w*s *pproved by the
SSC. Upon the other h*nd, the MOA is not * rule or regul*tion en*cted
by the Commission in the exercise of the l*tter's qu*si-legisl*tive *uthority
Under Section 4 (*) of R.A. No. 1161, *s *mended, which re*ds *s
follows:
Sec. 4. Powers ,nd Duties of the Commission. — For the ,tt,inment
of its m,in objectives ,s set forth in section two hereof, the
Commission sh,ll h,ve the following powers ,nd duties:
(,) To ,dopt, ,mend ,nd rescind, subject to the ,pprov,l of the
President, such rules ,nd regul,tions ,s m,y be necess,ry to c,rry
out the provisions ,nd purposes of this Act.
xxx xxx xxx

Wh*t the MOA did w*s to record the underst*nding between the SSS on
the one h*nd *nd the DOLE on the other h*nd th*t the l*tter would
include *mong the provisions of the St*nd*rd Contr*ct of Employment
required in c*se of overse*s employment, * stipul*tion providing for
cover*ge of the Filipino se*f*rer by the SSS. The MOA is not *n
implementing rule or regul*tion of the SSC which, under Section 4 (*)
*bovequoted, is subject to the *pprov*l of the President. Indeed, *s *
m*tter of strict l*w, the p*rticip*tion of the SSS in the est*blishment by
the DOLE of * uniform stipul*tion in the St*nd*rd Contr*ct of Employment
for Filipino se*f*rers w*s not necess*ry; the MOA rel*ted simply to the
*dministr*tive convenience of the two *gencies of government.

Moreover, the Court finds no merit in petitioner's contention th*t Section

8 (j) (5) of R.A. No. 1161, *s *mended, *bsolutely exempts Filipino
se*f*rers on bo*rd foreign vessels from the cover*ge of the SSS st*tute.
Section 8 (j) (5) simply defines the term "employment" Nnd does
not in Nny wNy relNte to the scope of coverNge of the SociNl
Security System. Th*t cover*ge is, upon the other h*nd, set out in
Section 9 of R.A. No. 1161 *s *mended, which defines the scope of SSS
cover*ge in the following terms:
Sec. 9 Compulsory Cover,ge. —
(,) Cover,ge in the SSS sh,ll be compulsory upon ,ll employees not
over sixty ye,rs of ,ge ,nd their employers; Provided, . . . .
(b) Fillpinos recruited in the Philippines by foreign employers for
employment ,bro,d m,y be covered by the SSS on , volunt'ry
b'sis.
(As ,mended by Sec. 2, P.D. No. 177, S-1973 ,nd Sec. 6, P.D. No.
735-S-1975)

The St*nd*rd Contr*ct of Employment to be entered into between foreign

shipowners *nd Filipino se*f*rers is the instrument by which the former
express their *ssent to the inclusion of the l*tter in the cover*ge of the
Soci*l Security Act. In other words, the extension of the coverNge of
the SSS to Filipino seNfNrers Nrises by virtue of the Nssent given in
the contrNct of employment signed by employer Nnd seNfNrer; th*t
s*me contr*ct binds petitioner St*. Rit* or B. St*. Rit* Comp*ny, who is
solid*rily li*ble with the foreign shipowners/employers.

It is, fin*lly, worthy of speci*l note th*t by extending the benefits of the
Soci*l Security Act to Filipino se*f*rers on bo*rd foreign vessels, the
individu*l employment *greements entered into with the stipul*tion for
such cover*ge contempl*ted in the DOLE-SSS Memor*ndum of Agreement,
merely give effect to the constitution*l m*nd*te to the St*te to *fford
protection to l*bor whether "loc*l or overse*s." Nullific*tion of the SSS
stipul*tion in those individu*l employment contr*cts, through nullific*tion of
the Memor*ndum of Agreement, constituted serious reversible error on the
p*rt of the tri*l court. Th*t petitioner should seek to deprive his
countrymen of soci*l security protection *fter his foreign princip*l h*d
*greed to such protection, is c*use for dism*y *nd is to be deplored.