38.cawad v. Abad
38.cawad v. Abad
DECISION
PERALTA, J : p
Before the Court is a petition for certiorari and prohibition under Rule 65 of the
Rules of Court filed by the officers and members of the Philippine Public Health
Association, Inc. (PPHAI) assailing the validity of Joint Circular No. 1 1 dated November
29, 2012 of the Department of Budget and Management (DBM) and the Department of
Health (DOH) as well as Item 6.5 of the Joint Circular 2 dated September 3, 2012 of the
DBM and the Civil Service Commission (CSC).
The antecedent facts are as follows:
On March 26, 1992, Republic Act (RA) No. 7305, otherwise known as The
Magna Carta of Public Health Workers was signed into law in order to promote the
social and economic well-being of health workers, their living and working conditions
and terms of employment, to develop their skills and capabilities to be better equipped
to deliver health projects and programs, and to encourage those with proper
qualifications and excellent abilities to join and remain in government service. 3
Accordingly, public health workers (PHWs) were granted the following allowances and
benefits, among others:
Section 20. Additional Compensation. — Notwithstanding Section 12 of
Republic Act No. 6758, public health workers shall receive the following
allowances: hazard allowance, subsistence allowance, longevity pay, laundry
allowance and remote assignment allowance.
Section 21. Hazard Allowance. — Public health workers in hospitals,
sanitaria, rural health units, main health centers, health infirmaries, barangay
health stations, clinics and other health-related establishments located in
difficult areas, strife-torn or embattled areas, distressed or isolated stations,
prisons camps, mental hospitals, radiation-exposed clinics, laboratories or
disease-infested areas or in areas declared under state of calamity or
emergency for the duration thereof which expose them to great danger,
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contagion, radiation, volcanic activity/eruption, occupational risks or perils to life
as determined by the Secretary of Health or the Head of the unit with the
approval of the Secretary of Health, shall be compensated hazard allowances
equivalent to at least twenty-five percent (25%) of the monthly basic salary of
health workers receiving salary grade 19 and below, and five percent (5%)
for health workers with salary grade 20 and above.
Section 22. Subsistence Allowance. — Public health workers who are
required to render service within the premises of hospitals, sanitaria, health
infirmaries, main health centers, rural health units and barangay health stations,
or clinics, and other health-related establishments in order to make their
services available at any and all times, shall be entitled to full subsistence
allowance of three (3) meals which may be computed in accordance with
prevailing circumstances as determined by the Secretary of Health in
consultation with the Management-Health Worker's Consultative Councils, as
established under Section 33 of this Act: Provided, That representation and
travel allowance shall be given to rural health physicians as enjoyed by
municipal agriculturists, municipal planning and development officers and
budget officers.
Section 23. Longevity Pay. — A monthly longevity pay equivalent to
five percent (5%) of the monthly basic pay shall be paid to a health workerfor
every five (5) years of continuous, efficient and meritorious services
rendered as certified by the chief of office concerned, commencing with the
service after the approval of this Act. 4
Pursuant to Section 35 5 of the Magna Carta, the Secretary of Health
promulgated its Implementing Rules and Regulations (IRR) in July 1992. Thereafter, in
November 1999, the DOH, in collaboration with various government agencies and
health workers' organizations, promulgated a Revised IRR consolidating all additional
and clarificatory rules issued by the former Secretaries of Health dating back from the
effectivity of the Magna Carta. The pertinent provisions of said Revised IRR provide:
6.3. Longevity Pay. — A monthly longevity pay equivalent to five
percent (5%) of the present monthly basic pay shall be paid to public health
workers for every five (5) years of continuous, efficient and meritorious
services rendered as certified by the Head of Agency/Local Chief Executives
commencing after the approval of the Act. (April 17, 1992)
xxx xxx xxx
7.1.1. Eligibility to Receive Hazard Pay. — All public health workers
covered under RA 7305 are eligible to receive hazard pay when the nature of
their work exposes them to high risk/low risk hazards for at least fifty
percent (50%) of their working hours as determined and approved by the
Secretary of Health or his authorized representatives.
xxx xxx xxx
7.2.1. Eligibility for Subsistence Allowance.
a. All public health workers covered under RA 7305 are
eligible to receive full subsistence allowance as long as they
render actual duty.
b. Public Health Workers shall be entitled to full
Subsistence Allowance of three (3) meals which may be
computed in accordance with prevailing circumstances as
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determined by the Secretary of Health in consultation with the
Management-Health Workers Consultative Council, as
established under Section 33 of the Act.
c. Those public health workers who are out of station shall
be entitled to per diems in place of Subsistence Allowance.
Subsistence Allowance may also be commuted.
xxx xxx xxx
7.2.3 Rates of Subsistence Allowance
a. Subsistence allowance shall be implemented at not less than
PhP50.00 per day or PhP1,500.00 per month as certified by head of agency.
xxx xxx xxx
d. Part-time public health workers/consultants are entitled to one-half
(1/2) of the prescribed rates received by full-time public health workers.6
On July 28, 2008, the Fourteenth Congress issued Joint Resolution No. 4,
entitled Joint Resolution Authorizing the President of the Philippines to Modify the
Compensation and Position Classification System of Civilian Personnel and the Base
Pay Schedule of Military and Uniformed Personnel in the Government, and for other
Purposes, approved by then President Gloria Macapagal-Arroyo on June 17, 2009,
which provided for certain amendments in the Magna Carta and its IRR.
On September 3, 2012, respondents DBM and CSC issued one of the two
assailed issuances, DBM-CSC Joint Circular No. 1, Series of 2012, to prescribe the
rules on the grant of Step Increments due to meritorious performance and Step
Increment due to length of service. 7 Specifically, it provided that "an official or
employee authorized to be granted Longevity Pay under an existing law is not eligible
for the grant of Step Increment due to length of service." 8
Shortly thereafter, on November 29, 2012, respondents DBM and DOH then
circulated the other assailed issuance, DBM-DOH Joint Circular No. 1, Series of 2012,
the relevant provisions of which state:
7.0. Hazard Pay. — Hazard pay is an additional compensation for
performing hazardous duties and for enduring physical hardships in the course
of performance of duties.
As a general compensation policy, and in line with Section 21 of R.A.
No. 7305, Hazard Pay may be granted to PHWs only if the nature of the
duties and responsibilities of their positions, their actual services, and
location of work expose them to great danger, occupational risks, perils
of life, and physical hardships; and only during periods of actual
exposure to hazards and hardships.
xxx xxx xxx
8.3 The Subsistence Allowance shall be P50 for each day of actual full-
time service, or P25 for each day of actual part-time service.
xxx xxx xxx
9.0 Longevity Pay (LP)
9.1 Pursuant to Section 23 of R.A. No. 7305, a PHW may be granted LP
at 5% of his/her current monthly basic salary, in recognition of every 5 years of
continuous, efficient, and meritorious services rendered as PHW. The grant
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thereof is based on the following criteria:
9.1.1 The PHW holds a position in the agency plantilla of regular
positions; and
9.1.2 He/She has rendered at least satisfactory performance and has not
been found guilty of any administrative or criminal case within all rating periods
covered by the 5-year period.
In a letter 9 dated January 23, 2013 addressed to respondents Secretary of
Budget and Management and Secretary of Health, petitioners expressed their
opposition to the Joint Circular cited above on the ground that the same diminishes the
benefits granted by the Magna Carta to PHWs.
Unsatisfied, petitioners, on May 30, 2013, filed the instant petition raising the
following issues:
I.
WHETHER RESPONDENTS ENRIQUE T. ONA AND FLORENCIO B.
ABAD ACTED WITH GRAVE ABUSE OF DISCRETION AND VIOLATED
SUBSTANTIVE DUE PROCESS WHEN THEY ISSUED DBM-DOH JOINT
CIRCULAR NO. 1, S. 2012 WHICH:
A) MADE THE PAYMENT OF HAZARD PAY DEPENDENT ON THE ACTUAL
DAYS OF EXPOSURE TO THE RISK INVOLVED;
B) ALLOWED PAYMENT OF SUBSISTENCE ALLOWANCE AT P50 FOR EACH
DAY OF ACTUAL FULL-TIME SERVICE OR P25 FOR EACH DAY OF
ACTUAL PART-TIME SERVICE WITHOUT CONSIDERATION OF THE
PREVAILING CIRCUMSTANCES AS DETERMINED BY THE
SECRETARY OF HEALTH IN CONSULTATION WITH THE
MANAGEMENT HEALTH WORKERS' CONSULTATIVE COUNCILS;
C) REQUIRED THAT LONGEVITY PAY BE GRANTED ONLY TO PHWs WHO
HOLD PLANTILLA AND REGULAR POSITIONS; AND
D) MADE THE JOINT CIRCULAR EFFECTIVE ON JANUARY 1, 2013, BARELY
THREE (3) DAYS AFTER IT WAS PUBLISHED IN A NEWSPAPER OF
GENERAL CIRCULATION ON DECEMBER 29, 2012, IN VIOLATION OF
THE RULES ON PUBLICATION.
II.
WHETHER RESPONDENTS FRANCISCO T. DUQUE AND
FLORENCIO B. ABAD ACTED WITH GRAVE ABUSE OF DISCRETION
WHEN THEY ISSUED DBM-CSC JOINT CIRCULAR NO. 1, S. 2012 DATED
SEPTEMBER 2, 2012 WHICH PROVIDED THAT AN OFFICIAL OR
EMPLOYEE ENTITLED TO LONGEVITY PAY UNDER EXISTING LAW SHALL
NO LONGER BE GRANTED STEP INCREMENT DUE TO LENGTH OF
SERVICE.
III.
WHETHER RESPONDENTS' ISSUANCE OF DBM-DOH JOINT
CIRCULAR NO. 1, S. 2012 IS NULL AND VOID FOR BEING AN UNDUE
EXERCISE OF LEGISLATIVE POWER BY ADMINISTRATIVE BODIES WHEN
RESPONDENT ONA ALLOWED RESPONDENT ABAD TO SIGNIFICANTLY
SHARE THE POWER TO FORMULATE AND PREPARE THE NECESSARY
RULES AND REGULATIONS TO IMPLEMENT THE PROVISIONS OF THE
MAGNA CARTA.
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IV.
WHETHER RESPONDENT ONA WAS REMISS IN IMPLEMENTING
THE MANDATE OF THE MAGNA CARTA WHEN HE DID NOT INCLUDE THE
MAGNA CARTA BENEFITS IN THE DEPARTMENT'S YEARLY BUDGET.
V.
WHETHER RESPONDENTS' ISSUANCE OF DBM-DOH JOINT
CIRCULAR NO. 1, S. 2012 IS NULL AND VOID FOR BEING AN UNDUE
EXERCISE OF LEGISLATIVE POWER BY ADMINISTRATIVE BODIES WHEN
THE SAME WAS ISSUED SANS CONSULTATION WITH PROFESSIONAL
AND HEALTH WORKERS' ORGANZATIONS AND UNIONS.
Petitioners contend that respondents acted with grave abuse of discretion when
they issued DBM-DOH Joint Circular No. 1, Series of 2012 and DBM-CSC Joint
Circular No. 1, Series of 2012 which prescribe certain requirements on the grant of
benefits that are not otherwise required by RA No. 7305. Specifically, petitioners assert
that the DBM-DOH Joint Circular grants the payment of Hazard Pay only if the nature of
the PHWs' duties expose them to danger when RA No. 7305 does not make any
qualification. They likewise claim that said circular unduly fixes Subsistence Allowance
at P50 for each day of full-time service and P25 for part-time service which are not in
accordance with prevailing circumstances determined by the Secretary of Health as
required by RA No. 7305. Moreover, petitioners fault respondents for the premature
effectivity of the DBM-DOH Joint Circular which they believe should have been on
January 29, 2012 and not on January 1, 2012. As to the grant of Longevity Pay,
petitioners posit that the same was wrongfully granted only to PHWs holding regular
plantilla positions. Petitioners likewise criticize the DBM-CSC Joint Circular insofar as it
withheld the Step Increment due to length of service from those who are already being
granted Longevity Pay. As a result, petitioners claim that the subject circulars are void
for being an undue exercise of legislative power by administrative bodies.
In their Comment, respondents, through the Solicitor General, refute petitioners'
allegations in stating that the assailed circulars were issued within the scope of their
authority, and are therefore valid and binding. They also assert the authority of Joint
Resolution No. 4, Series of 2009, approved by the President, in accordance with the
prescribed procedure. Moreover, respondents question the remedies of Certiorari and
Prohibition used by petitioners for the assailed circulars were done in the exercise of
their quasi-legislative, and not of their judicial or quasi-judicial functions.
The petition is partly meritorious.
At the outset, the petition for certiorari and prohibition filed by petitioners is not
the appropriate remedy to assail the validity of respondents' circulars. Sections 1 and 2
of Rule 65 of the Rules of Court provide:
RULE 65
CERTIORARI, PROHIBITION AND MANDAMUS
Section 1. Petition for certiorari. — When any tribunal, board or officer
exercising judicial or quasi-judicial functions has acted without or in excess
of its or his jurisdiction, or with grave abuse of discretion amounting to lack or
excess of jurisdiction, and there is no appeal, or any plain, speedy, and
adequate remedy in the ordinary course of law, a person aggrieved thereby
may file a verified petition in the proper court, alleging the facts with certainty
and praying that judgment be rendered annulling or modifying the proceedings
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of such tribunal, board or officer, and granting such incidental reliefs as law and
justice may require.
xxx xxx xxx
Sec. 2. Petition for Prohibition. — When the proceedings of any tribunal,
corporation, board, officer or person, whether exercising judicial, quasi-
judicial or ministerial functions, are without or in excess of its jurisdiction, or
with grave abuse of discretion amounting to lack or excess of jurisdiction, and
there is no appeal or any other plain, speedy, and adequate remedy in the
ordinary course of law, a person aggrieved thereby may file a verified petition in
the proper court, alleging the facts with certainty and praying that judgment
be rendered commanding the respondent to desist from further
proceedings in the action or matter specified therein, or otherwise granting
such incidental reliefs as law and justice may require. 10
Thus, on the one hand, certiorari as a special civil action is available only if: (1) it
is directed against a tribunal, board, or officer exercising judicial or quasi-judicial
functions; (2) the tribunal, board, or officer acted without or in excess of jurisdiction or
with grave abuse of discretion amounting to lack or excess of jurisdiction; and (3) there
is no appeal nor any plain, speedy, and adequate remedy in the ordinary course of law.
11
12 or more days 25% of monthly basic salary 14% of monthly basic salary
6 to 11 days 14% of monthly basic salary 8% of monthly basic salary
Less than 6 days 8% of monthly basic salary 5% of monthly basic salary
Footnotes
***No part.
4. Emphasis ours.
5. Section 35. Rules and Regulations. — The Secretary of Health after consultation with
appropriate agencies of the Government as well as professional and health workers'
organizations or unions, shall formulate and prepare the necessary rules and
regulations to implement the provisions of this Act. Rules and regulations issued
pursuant to this Section shall take effect thirty (30) days after publication in a newspaper
of general circulation.
6. Emphasis ours.
11. Metropolitan Bank and Trust Company, Inc. v. National Wages and Productivity
Commission and Regional Tripartite Wages and Productivity Board-Region II, 543 Phil.
318, 328 (2007).
13. Dela Llana v. The Chairperson, Commission on Audit, G.R. No. 180989, February 7, 2012,
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665 SCRA 176, 184, Liga ng mga Barangay National v. City Mayor of Manila,465 Phil.
529 (2004), Southern Hemisphere Engagement Network, Inc. v. Anti-Terrorism Council,
646 Phil. 452, 470-471 (2010).
14. Chamber of Real Estate and Builders Associations, Inc. v. Secretary of Agrarian Reform,
635 Phil. 283, 304, citing Liga ng mga Barangay National v. City Mayor of Manila,
supra, at 543.
15. Id.
16. Metropolitan Bank and Trust Company, Inc. v. National Wages and Productivity
Commission and Regional Tripartite Wages and Productivity Board-Region II, supra
note 11, at 329, citing De Guzman, Jr. v. Mendoza, 493 Phil. 690, 696 (2005); Sismaet
v. Sabas, 473 Phil. 230, 239 (2004); Philippine Bank of Communications v. Torio, 348
Phil. 74, 84 (1998).
17. Chamber of Real Estate and Builders Association, Inc. v. Secretary of Agrarian Reform,
supra note 14, at 304-305.
18. Metropolitan Bank and Trust Company, Inc. v. National Wages and Productivity
Commission and Regional Tripartite Wages and Productivity Board-Region II, supra
note 11, at 330.
19. Yusay v. Court of Appeals, G.R. No. 156684, April 6, 2011, 647 SCRA 269, 277, citing
Republic v. Yang Chi Hao, 617 Phil. 422, 425 (2009) and Chua v. Court of Appeals, 338
Phil. 262, 269 (1997).
20. Holy Spirit Homeowners' Association, Inc. v. Sec. Defensor,529 Phil. 573, 587 (2006).
23. Section 35. Rules and Regulations. — The Secretary of Health after consultation with
appropriate agencies of the Government as well as professional and health workers'
organizations or unions, shall formulate and prepare the necessary rules and
regulations to implement the provisions of this Act. Rules and regulations issued
pursuant to this Section shall take effect thirty (30) days after publication in a
newspaper of general circulation. (Emphasis ours)
25. Association of Southern Tagalog Electric Cooperatives, Inc. (ASTEC), et al. v. Energy
Regulatory Commission, G.R. Nos. 192117 and 192118, September 18, 2012, 681
SCRA 119, 151, citing Commissioner of Internal Revenue v. Court of Appeals, 329 Phil.
987, 1007 (1996).
26. Id., citing The Veterans Federation of the Philippines v. Reyes,518 Phil. 668, 704 (2006).
27. Id.
31. Dacudao v. Secretary of Justice, G.R. No. 188056, January 8, 2013, 688 SCRA 109, 123,
citing ABAKADA Guro Party List v. Purisima, 584 Phil. 246, 283 (2008).
32. Id.
34. Araos, et al. v. Hon. Regala, 627 Phil. 13, 22 (2010), citing GMA Network, Inc. v. Movie
Television Review and Classification Board, 543 Phil. 178, 183 (2007).
35. Section 9.5 of DBM-DOH Joint Circular provides:
9.5 On or after the effectivity of this JC, a PHW previously granted Step Increment Due
to Length of Service shall no longer be granted subsequent Step Increment Due to
Length of Service in view of the prohibition in item (4)(d) of said JR No. 4. Likewise, a
PHW hired on or after the effectivity of this JC shall not be granted Step Increment Due
to Length of Service.
36. Re: Entitlement to Hazard Pay of SC Medical and Dental Clinic Personnel,592 Phil. 389,
397 (2008).