5/19/2021
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Petitioners, consisting of Manning Associations, Manning Agencies, and their Manning
Directors and Presidents, argue that Sec. 9-B of R.A. No. 11199 is unconstitutional for
violation of the constitutionally guaranteed due process and equal protection of rights
because it unreasonably discriminates against manning agencies. They underscore that
the assailed provision treats manning agencies of sea-based OFWs as employers and
make them jointly and severally or solidarily liable insofar as the SSS coverages are
concerned.
Petitioners point out that recruitment agencies of land-based OFWs are not treated in
the same manner because they are not considered as employers and are not jointly
and severally liable for the SSS coverage. Instead, landbased OFWs are only considered
as self-employed members of the SSS. It is only when there is a bilateral labor
agreement that the land-based OFW is treated as a compulsory covered member of the
SSS.
Petitioners emphasize that the law does not provide for any valid justification of the
difference in treatment between the manning agencies of sea-based OFWs and the
recruitment agencies of land-based OFWs. While petitioners concede that there is a
necessity to place OFWs under the compulsory coverage of the SSS, the manner of
such coverage must be fair to all parties. They argue that the SSS coverage of seabased OFWs is already provided by the 1988 MOA, 2006 MLC, and the POEA-SEC, thus,
Sec. 9-B of R.A. No. 11199 is no longer required.
Petitioners also argue that the increased contribution of employers in R.A. No. 11199[7]
is too high, which would prejudice the shipping industry in the country, as follows:
Share
Year of
Contribution
Implementation
Rate
Employer Employee
2019
12%
8%
4%
2020
12%
8%
4%
2021
13%
8.5%
4.5%
2022
13%
8.5%
4.5%
2023
14%
9.5%
4.5%
2024
14%
9.5%
4.5%
2025
15%
10%
5%
Monthly Salary Credit
Minimum
Maximum
P2,000.00
P20,000.00
P2,000.00
P20,000.00
P3,000.00
P25,000.00
P3,000.00
P25,000.00
P4,000.00
P30,000.00
P4,000.00
P30,000.00
P5,000.00 P35,000.00[8]
In its Comment,[9] the Office of the Solicitor General (OSG), representing the
Government of the Philippines,[10] countered that the petition failed to comply with the
requirement of justiciability to justify the exercise of the Court's power of judicial
review. It underscored that the petition is bereft of any allegation that petitioners had
suffered actual and direct injury under R.A. No. 11199 because it has not been fully
implemented.
https://elibrary.judiciary.gov.ph/thebookshelf/showdocsfriendly/1/66432
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