DOJ OPINION NO. 107 , s.

1989
May 23, 1989

The Executive Director

Employees' Compensation Commission
3rd Floor, ECC Building
355 Gil. J. Puyat Avenue
Makati, Metro Manila

Sir :
This refers to your request for legal opinion on the apparent con ict between the
provisions of Section 15 of R.A. No. 1161, as amended, otherwise known as the Social
Security Law and Article 173 of P.D. No. 442, as amended, or the Labor Code. Said
provisions read:
Social Security Law —
"Sec. 15. Non-transferability of bene ts . — The SSS shall pay the bene ts
provided for in this Act to such persons as may be entitled thereto in accordance
with the provisions of this Act: . . . Provided, Finally, That notwithstanding any law
to the contrary, the payment of bene ts under this Act shall bar the recovery of
similar bene ts under Title II of Book IV of the Labor Code of the Philippines, as
amended, during the period of such payment for the same contingency, and
conversely". (Sec. 13, PD 735, June 1975) (Emphasis supplied)

The Labor Code —

"Art. 173. Extent of liability. — Unless otherwise provided, the liability of the State
Insurance Fund under this Title shall be exclusive and in place of all other
liabilities of the employer to the employee, his dependents or anyone otherwise
entitled to receive damages on behalf of the employee or his dependents. The
payment of compensation under this Title shall not bar the recovery of bene ts
as provided for in Section 699 of the Revised Administrative Code, Republic Act
numbered eleven hundred sixty-one, Republic Act numbered six hundred ten, as
amended, Republic Act Numbered forty-eight hundred sixty-four, as amended, and
other laws whose bene ts are administered by the System, or by other agencies
of the government". (As amended by Sec. 2 of P.D. 1921, effective June 1, 1984)
(Emphasis supplied) prcd

We do not see any con ict between the above-quoted provisions of Section 15
of the Social Security Law and Article 173 of the Labor Code. Section 15, as amended
by P.D. No. 735 in 1975 expressly provides that the payment of bene ts under the
Social Security Law shall bar the recovery of similar bene ts under Title II, Book IV of
the Labor Code. However, Article 173, as last amended by P.D. No. 1921 in 1984 ,
expressly provides that the "payment of compensation under this Title [referring to Title
II, Book IV of the Labor Code] shall not bar the recovery of bene ts as provided for in . .
. Republic Act numbered eleven hundred sixty-one . . ." It is a settled rule of statutory
construction that in case of con ict between two laws, the later law shall prevail over
the earlier law. Since P.D. No. 1921 which amended Article 173 in 1984 is the later law,
it will prevail over the provision of P.D. No. 735 which amended Section 15 in 1975.
Nonetheless, although the law as it stands now is clear, we surmise that the
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 doubt as to which between Section 15 and Article 173 should prevail must have been
generated by the changes in the phraseology of Article 173 brought about by the
amendments introduced in the text thereof rst, by P.D. No. 626, subsequently, by P.D.
No. 1921. A look into the legislative history of Article 173 will certainly clarify this
doubt.
As originally worded, Article 173 provides:
"ART. 173. Exclusiveness of liability . — Unless otherwise provided by law, the
liability of the System under this Title shall be exclusive and in place of all other
liabilities of the employer to the employee, his legal representative, dependents or
nearest of kin or anyone otherwise entitled to receive damages under the Civil
Code on account of such injury or death.

In case of government employees, the right to compensation under this Title shall
be a bar to the recovery of bene ts for the same injuries or death provided for in
Section 699 of the Revised Administrative Code, as amended, and other existing
laws, except those granted by the Government Service Insurance System".
(Emphasis supplied)

On December 27, 1974, P.D. No. 626 amended this provision as follows:
"ART. 173. Exclusiveness of liability . — Unless otherwise provided, the liability of
the State Insurance Fund under this Title shall be exclusive and in place of all
liabilities of the employer to the employee, his dependents or anyone otherwise
entitled to receive damages on behalf of the employee or his dependents. The
payment of compensation under this Title shall bar the recovery of bene ts as
provided for in Section 699 of the Revised Administrative Code, Republic Act
numbered eleven hundred sixty-one, as amended, Commonwealth Act numbered
one hundred eighty-six, as amended, Republic Act numbered sixty-one hundred
eleven, as amended, Republic Act numbered six hundred ten, as amended,
Republic Act numbered forty-eight hundred sixty-four, as amended and other laws
whose bene ts are administered by the System, during the period of such
payment for the same disability or death". (Emphasis supplied)

The latest amendment was introduced by P.D. No. 1921 on May 1, 1984 and the
amended text is as reproduced on page one hereof. Incidentally, P.D. No. 1921 was
published in Vol. 80, No. 26, p. 3558 of the Official Gazette.
Signi cantly, the original provision of Article 173 barred the recovery of bene ts
by a government employee under Section 699 of the Revised Administrative Code and
other existing laws, for the same injuries or death compensated under the employees'
compensation program, except those bene ts granted by the GSIS. This prohibition
against the recovery of similar bene ts was later expanded by P.D. No. 626 to include
similar bene ts granted among others, the Social Security Law (R.A. No. 1161). P.D. No.
1921 which took effect on June 1, 1984, lifted the prohibition and expressly allowed the
simultaneous recovery of bene ts under the employees' compensation program, on the
one hand, and other laws, among which is R.A. No. 1161 or the Social Security Law.
In ne, until the amendment introduced by P.D. No. 1921 is amended or repealed
by subsequent law, this will be the controlling provision on the matter of payment of
employee benefits in the private sector. prcd

Please be guided accordingly.

Very truly yours,

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 (SGD.) SEDFREY A. ORDOÑEZ
Secretary of Justice

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