MANILA, Philippines – Except for a provision that requires advanced payment of Social Security System (SSS) contributions for land-based overseas Filipino workers (OFWs) leaving the country, the Supreme Court affirmed the constitutionality of Republic Act No. 11199 or the Social Security Act of 2018 and its implementing rules and regulations (IRR).
The 40-page ruling of the Court en banc authored by Associate Justice Maria Filomena D. Singh said Rule 14, Section 7 (iii) of the IRR of R.A. 11199 violates the OFWs right to property and right to travel, which are Sections 1 and Section 6 of Article III (Bill of Rights) of the Philippine Constitution.
The SC ruling prohibited the SSS, the Philippine Overseas Employment Administration, and the Department of Labor and Employment (DOLE) from implementing Rule 14, Section 7 (iii) of the IRR of R.A. 11199.
This rule states: “For land-based OFWs in countries without any SSA or BLA (bilateral social security and labor agreements) with the Republic of the Philippines, the measures for enforcement of compulsory coverage shall include, among others, the collection of contribution payments by the Philippine Overseas Employment Administration (POEA) and/or the concerned DOLE (Department of Labor and Employment) agencies, through its applicable documentation and deployment process such as the issuance of Overseas Employment Certificate (OEC)…”
The High Court said: “to enforce compulsory coverage of land-based OFWs through the issuance of OECs is unduly oppressive, unreasonable, and repugnant to the Constitution.”
The said provision, said the SC, undermines the mandate of the Constitution to protect the rights of overseas workers and to promote their welfare. It added: “this provision places an undue burden on the land-based OFWs by imposing as condition to the issuance of their OEC the payment of the employer’s contribution, an onus not place on any other class of employee under the SSS coverage.”
The Court said under IRR Rule 14, Section 7 (iii) land-based OFWs, who have not even started their employment, much less received their salaries, would be compelled to advance their SSS contributions.
Besides, the dubious IRR proviso imposes the advance SSS payment as a condition to the issuance of their OEC, yet without an OEC, a worker is still technically not considered an OFW.
It also noted that prior to the issuance of an OEC, a worker is technically not considered an OFW yet. “However, despite this, they are being compelled to prepay the required SSS contributions, otherwise, they cannot leave the country due to the absence of an OEC,.”
“This situation places undue burden on our OFWs, who often resort to borrowing money to cover costly deployment expenses. The Court is reminded of the hardships and sacrifices faced by our OFWs,” it added.
The Supreme Court decision came about from the petition filed by Migrante International and party-list groups Bayan Muna, Gabriela, ACT-Teachers and Kabataan.
As for the rest of the Social Security Act of 2018, the Court said: “The constitutionality of assailed provisions of Republic Act No. 11199 and the remaining assailed provisions of the Implementing Rules and Regulations of R.A. 11199 are upheld.”
“Pursuant to Rule 50, Section 1 of the Implementing Rules and Regulations of Republic Act No. 11199, these provisions remain in force and effect,” added the court. – Rappler.com
