DoJ affirms bill on unemployment benefits

THE DEPARTMENT of Justice (DoJ) has backed a House bill seeking to expand benefits under the Social Security System (SSS) for employees separated from the service.

House Bill No. 4668 -- “An Act Expanding The Benefits of the Social Security System So As To Provide for the Unemployment Benefits Thereby Amending For This Purpose Republic Act No. 8282, as Amended, Otherwise Known as the Social Security Law of 1997” -- is authored by Party-list Rep. Raymond Democrito C. Mendoza (Trade Union Congress of the Philippines).

In a legal opinion to North Cotabato Rep. Jesus N. Sacdalan (1st district), chairman of the House committee on government enterprises and privatization, Justice Secretary Leila M. de Lima said her department “recognizes the importance of this bill and we express our support thereto.”

Ms. de Lima also emphasized in her opinion that SSS funds should be sufficient to fulfill its obligation to its members.

The bill seeks to provide unemployment benefits in the form of monthly cash payments to an employee who is terminated, or “involuntarily unemployed” as the bill says. The said benefits are equivalent to the employee’s minimum wage.

“It is imperative upon the state to ensure that our work force does not only have meaningful and satisfying jobs, but can also address employment or income security during unfortunate times when they lose their jobs through no fault of their own,” Mr. Mendoza said.

Ms. de Lima said the objective of the proposed bill -- to give temporary economic support to employees who were separated from their employment while looking for new opportunities to work -- “appears to be the same intention” in providing workers with separation pay under the Labor Code. -- Reden D. Madrid Bworldonline

Barbers and make up artists to get SSS membership soon

A lawmaker has filed a bill protecting the rights and promoting the welfare of workers in the wellness centers, beauty and grooming salons, fitness gyms, spas and massage parlors by facilitating their membership in the Social Security System (SSS).

Rep. Raymond Democrito Mendoza (Party-list, TUCP) said under House Bill 2550, workers in wellness centers, beauty salons, fitness gyms and other interrelated services should be removed from the definition of self-employed under the SSS law.

Mendoza said barbershops, salons, spas, massage parlors, wellness or fitness centers or gyms, and any other similar entity to which the workers regularly report to render their services shall be considered their employers.

"Their employers should deduct and withhold from them the average monthly commissions, earnings, compensation or payment, as an employee's contribution to the SSS," Mendoza said.

Mendoza said the bill, which seeks to amend Republic Act 1161 or the Social Security Law, removes the workers from the definition of self-employed under the SSS law irrespective of the contractual arrangement or their non-recognition as employees.

"These workers would be able to continue being an active SSS member and reap the benefits while they are still working or upon their retirement," Mendoza said.

According to Mendoza, workers of wellness centers or of the barbershops, or any other similar entity, lease the facilities of the centers and bring their own set of clients.

Mendoza said the workers, who are being paid on a per-head basis, earn a commission or share in the payments due from their clients. They are not required to observe office hours or report to the company everyday, and do not devote their time exclusively for one company for they are free to work on any other wellness facility, or to engage in any other employment.

"Under the bill, these workers are considered self-employed, thus they pay their entire SSS membership dues, and there is no one to pay the heftier employer counterpart," Mendoza said.

"Irrespective of the contractual arrangement of their non-recognition as employees, or of the kind or source of the commissions, earnings, compensation or payment for their services, barbers, hairstylist, manicurists, make-up artists, masseuse, reflexologists, gym trainers, fitness instructors or dieticians shall not be considered as self-employed," Mendoza added. - Jazmin S. Camero, Media Relations Service-PRIB

SSS coverage for workers in wellness spa, beauty salon, fitness gym sought

A lawmaker is determined to shepherd a measure mandating the compulsory inclusion of thousands of barbers, haircutters or hairstylists, manicurists or pedicurists, make-up artists or beauty professionals, masseuse, reflexologists or therapists and gym trainers, fitness instructors or dieticians in the coverage of the Social Security System (SSS).

Rep. Raymond Democrito Mendoza (Party-list, TUCP) is hopeful that the proposal, which removes the workers in wellness spas, beauty salons and fitness gyms from the category of self-employed, will ultimately be enacted into law in the next Congress.

The proposal is contained in House Bill 1558, which was authored by Mendoza. It is pending in the House Committee on Government Enterprises and Privatization.

In pushing for the proposal, Mendoza noted the recent growth of wellness centers, which, more often than not, are an amalgamation of beauty and grooming salons, fitness gyms, spas and massage parlors and other interrelated services.

"The industry is the bread and butter of thousands of workers in wellness spas, beauty salons and fitness gyms. Most of these are 'experts' in their individual fields who have undergone professional training. However, in most instances, the services of these persons are merely outsourced by the wellness centers. They are not employed but are treated as independent contractors," Mendoza said.

Mendoza said these workers lease the facilities of the centers and bring their own set of clients. Their compensation or payment is based on a per head basis and they earn a commission or share in the payments due their clients.

He added that they are not required to observe office hours or report to the company every day. They are not devoting their time exclusively for one company and are free to work on any other wellness facility, or engage in any other employment.

"One of the predicaments of these workers is their membership in the SSS. With the above-mentioned arrangement, they are considered as self-employed. Thus, they pay their entire SSS membership dues and there is no one to pay the heftier employer counterpart," Mendoza said.

According to Mendoza, the vision of the measure is to compel owners of the wellness center, barbershop, salon, spa, massage parlor, fitness gym or any other similar entity to which they are affiliated or regularly report to render their services which are considered as their employer to deduct and withhold from the concerned person's average monthly commissions, earnings, compensation or payment, his/her employee's contribution, as well as pay for and remit the counterpart employer's contribution.

"By doing this, these persons would be able to continue being an active SSS member and reap the benefits, while still working or upon their retirement," Mendoza stressed.

The measure amends Section 9-A of Republic Act 1161, as amended, otherwise known as the “Social Security Law,” by compulsory including, irrespective of the contractual arrangement of their non-recognition as employees, or of the kind or source of the commissions, earnings, compensation or payment for their services, barbers, haircutters or hairstylists; manicurists or pedicurists; make-up artists; masseuse, reflexologists or therapists and gym trainers, fitness instructors or dieticians, and shall not be considered under the category of self-employed.

"The State affirms labor as a primary social economic force. It shall protect the rights of workers and promote their welfare. The social security of workers in the wellness centers, beauty and grooming salons, fitness gyms, spas and massage parlors, and other interrelated services should always be protected and promoted," Mendoza said. - Lorelei V. Castillo, Media Relations Service-PRIB