F. Philippine Blooming Mills VS SSS Case Digest
F. Philippine Blooming Mills VS SSS Case Digest
F. Philippine Blooming Mills VS SSS Case Digest
FACTS
The Philippine Blooming Mills Co., Inc., a domestic corporation, has employed 6 Japanese
technicians under a pre-arranged contract of employment, from April 28, 1957, to October 26,
1958.
In connection with the employment of these aliens, it sent an inquiry to the Social Security
System (SSS) whether these employees are subject to compulsory coverage under the System.
The inquiry was answered by the First Deputy Administrator of the SSS on August 29, 1957.
Under Rule I, Sec. 3[d], Rules and Regulations, it states that
Aliens employed in the Philippines:
Aliens who are employed in the Philippines shall also be compulsorily covered. But
aliens who are employed temporarily shall, upon their departure from the Philippines,
be entitled to a rebate of a proportionate amount of their contributions; their
employers shall be entitled to the same proportionate rebate of their contributions in
behalf of said aliens employed by them.
However, upon the termination of its employment, the appellants filed a claim with the SSS for
the refund of the premiums paid. This claim was refuted by SSS, contending that Rule IX of the
amended Rules and Regulations of the System requires membership for at least 2 years before
a separated or resigned employee may be allowed a return of his personal contributions. Under
the same rule, the employer is not also entitled to a refund of the premium contributions it had
paid.
ISSUE
Was due process observed in implementing the SSS law and denying appellants' claim for
refund of their premium contributions?
RULING
Yes, due process was observed.
Rule I Section 3 (d) was amended, which now requires at least 2 years of membership to be
granted with a refund.
“It may be argued, however, that while the amendment to the Rules may have been lawfully
made by the Commission and duly approved by the President on January 14, 1958, such
amendment was only published in the November 1958 issue of the Official Gazette, and after
appellants' employment had already ceased. Suffice it to say, in this regard, that under Article 2
of the Civil Code, the date of publication of laws in the Official Gazette is material for the purpose
of determining their effectivity, only if the statutes themselves do not so provide.
In the present case, the original Rules and Regulations of the SSS specifically provide that
any amendment thereto subsequently adopted by the Commission, shall take effect on the
date of its approval by the President. Consequently, the delayed publication of the amended
rules in the Official Gazette did not affect the date of their effectivity, which is January 14, 1958,
when they were approved by the President. It follows that when the Japanese technicians were
separated from employment in October, 1958, the rule governing refund of premiums is Rule IX of
the amended Rules and Regulations, which requires membership for 2 years before such refund of
premiums may be allowed.”
Finding no error in the resolution of the Commission appealed from, the same is hereby
affirmed by the Court.