526 Phil. 79
SANDOVAL-GUTIERREZ, J.:
Yazaki Torres Manufacturing, Inc., petitioner herein, a corporation organized under Philippine laws, applied for and was granted by the HDMF a waiver from the Fund coverage for the period from January 1 to December 31, 1995. The HDMF found that petitioner's retirement plan for its employees is superior to that offered by the Fund.RULE VII
WAIVER OR SUSPENSION
SEC. 1. Waiver or Suspension, Existing Provident or Retirement Plan. – An employer and/or employee group who has an existing provident or retirement plan as of the effectivity of Republic Act No. 7742, qualified under Republic Act No. 4917 and actuarially determined to be sound and reasonable by an independent actuary duly accredited by the Insurance Commission may apply with the Fund for waiver or suspension of coverage. Such waiver or suspension may be granted by the President of the Fund on the basis of verification that the waiver or suspension does not contravene any effective collective bargaining or other existing agreement and that the features of the plan or plans are superior to the Fund and continue to be so. The certificate of waiver or suspension of coverage issued therein shall only be for a period of one (1) year but the same may be renewed for another year upon the filing of a proper application within a period of sixty (60) days prior to the expiration of the existing waiver or suspension.
SEC. 2. Waiver or Suspension, Existing Housing Plan. – An employer and/or employee group who has an existing housing plan as of the effectivity of Republic Act No. 7742 may apply with the Fund for waiver or suspension of coverage. Such waiver or suspension may be granted by the President of the Fund on the basis of verification that the waiver or suspension does not contravene any effective collective bargaining or other existing agreement and that the features of the plan or plans are superior to the Fund and continue to be so. The certificate of waiver or suspension of coverage issued therein shall only be for a period of one (1) year but the same may be renewed for another year upon the filing of a proper application within a period of sixty (60) days prior to the expiration of the existing waiver or suspension.x x x
SEC. 4. Effects of Waiver or Suspension, Existing Provident or Retirement/Housing Plan. - Waiver or suspension of coverage granted to an employer under Sections 1 and 2 of this Rule shall likewise apply to his employees who are members of the employer's private plan; Provided, That such members are not member-borrowers of the Fund. A member-borrower shall continue to pay and remit to the fund his monthly contributions together with the employer contributions to be shouldered by him. A member-saver may opt to remain in good standing by remitting to the Fund his monthly contributions with or without employer contribution.
Employees who are non-members of the employer's private plan at the time of the certificate of waiver or suspension of coverage is granted shall continue to be mandatorily covered by the Fund and their employer is required to set aside and remit to the Fund the employee contributions together with the employer contributions.
SEC. 1. Waiver or Suspension Because of Existing Provident/Retirement and Housing Plan. – An employer with a plan providing both for a provident/retirement and housing benefits for all his employees and existing as of December 14, 1980, the effectivity date of Presidential Decree No. 1752, may apply with the Fund for waiver or suspension of the coverage. The provident/retirement aspect of the plan must be qualified under Republic Act No. 4917 and actuarially determined to be sound and reasonable by an independent actuary duly accredited by the Insurance Commission. The provident/retirement and housing benefits as provided for under the plan must be superior to the provident/retirement and housing benefits offered by the Fund.After its waiver from the Fund coverage lapsed, petitioner applied for a renewal. The ground relied upon was once again its "superior retirement plan" to that of the Fund.
Such waiver or suspension may be granted by the Fund on the basis of actual certification that the waiver or suspension does not contravene any collective bargaining agreement, any other existing agreement or clearly spelled out management policy and that features of the plan or plans are superior to the Fund and continue to be so.
Provided further, That the application must be endorsed by the labor union representing a majority of the employees or in the absence thereof by at least a majority vote for all the employees in the said establishment in a meeting specifically called for the purpose; Provided furthermore, That such a meeting be held or conducted under the supervision of an authorized representative from the Fund.
The certificate of waiver or suspension of coverage issued herein shall only be for a period of one (1) year effective upon issuance thereof. No certificate of waiver issued by the President of the Fund shall have retroactive effect. Application for renewal must be filed within sixty (60) days prior to the expiration of the existing waiver or suspension and such application for renewal shall only be granted based on the same conditions and requirements under which the original application was approved.
Pending the approval of the application for waiver or suspension of coverage or the application for renewal, the employer and his covered employees shall continue to be mandatorily covered by the Fund as provided for under Republic Act No. 7742.x x x
SEC. 3. Effects of Waiver or Suspension; Existing Provident or Retirement/Housing Plan. – Waiver or suspension of coverage granted to an employer under Section 1 shall likewise apply to his employees who are members of the employer's private plan; Provided, That such members are not member-borrowers of the Fund. A member-borrower shall continue to pay and remit to the Fund his monthly contributions together with the employer contribution to be shouldered by him. A member-saver may opt to remain in good standing by remitting to the Fund his monthly contributions with or without employer contributions. Notwithstanding the certificate of waiver or suspension granted to the employer, it is still the obligation of the employer to service this type of contributing employee-member by deducting through salary deductions and remitting to the Fund the contribution as required herein.
Employees who are non-members of the employer's private plan at the time the certificate of waiver or suspension of coverage is granted shall continue to be mandatorily covered by the Fund and their employer is required to set aside and remit to the Fund the employee contributions together with the employer's required contributions.x x x
Petitioner contends that the existing rules and regulations cannot be amended unless and until R.A. No. 7742 is likewise amended and since the September 1, 1995 amendment on Rule VII of the HDMF rules and regulations was beyond the 60-day period required under Section 5 of R.A. No. 7742, the same is invalid. To uphold these arguments would render the administrative agency inutile to correct the rules and regulations duly promulgated by it. A contario, such rules and regulations or orders may be amended, modified or revoked to conform to the requirements of the law or the demands of justice (Benito v. Public Service Commission, 86 Phil. 624 [1950]; Raymundo Transportation Co. v. Tanay Transit Co., 63 Phil. 1064 [1936]). The only limitation is that the administrative regulations cannot extend the law and amend a legislative enactment for settled is the rule that administrative regulations must be in harmony with the provisions of the law (Land Bank of the Philippines v. Court of Appeals, 249 SCRA 149 [1995]). In case of discrepancy between the basic law and an implementing rule or regulation, the former prevails (Shell Philippines, Inc. v. Central Bank of the Philippines, 162 SCRA 628 [1988]).Petitioner filed its Motion for Reconsideration, but it was denied in a Resolution dated June 17, 1997.
The September 1, 1995 amendment to the rules requiring both provident/retirement and housing plans to the employees in order that the employer may be granted a waiver or suspension of the Pag-ibig Fund coverage is in harmony with WHEREAS clauses of Presidential Decree No. 1752, thus:WHEREAS, the Government, in pursuit of the Constitutional mandates on the promotion of public welfare through ample social services, as well as its humanist commitment to the interests of the working group, in relation particularly to their need for decent shelter has established the Home Development Mutual Fund, under Presidential Decree 1530, a system of employee – employer contributions for housing purposes; andThe governing law which is Section 19 of Pres. Decree No. 1752 states:
WHEREAS, there is need to strengthen the Home Development Mutual Funds and make it more effective both as savings generation and home building program for the gainfully-employed members of the Philippine society; (Emphasis supplied)SEC. 19. Existing Provident/Housing Plans – An employer and/or employee – group who, at the time this Decree becomes effective have their own provident and/or employee – housing plans, may register with the Fund, for any of the following purposes:x x x The grant of the certification of waiver to the petitioner was only for a specific period, i.e., from January 1, 1995 to December 31, 1995 but subject to the condition that the same may be renewed for another year upon the filing of the proper application within 60 days prior to the expiration of the existing waiver or suspension. The grant is merely a privilege which the State in the exercise of its police power has the right not to renew the same as the exigency of the case warrants. After the lapse of the specified period, the HDMF is not automatically required to enter another contract with the petitioner as long as the latter applies for renewal of certification. To reiterate, Section 1 of the original HDMF rules, the law in force at the time of the granting of the certification of waiver to the petitioner, provides "[s]uch waiver or suspension may be granted by the President of the Fund on the basis of verification that the waiver or suspension does not contravene any effective collective bargaining or other existing agreement and that the features of the plan or plans are superior to the Fund and continue to be so." The word "may" is merely permissive and operates to confer discretion upon a party (Capati v. Ocampo, 113 SCRA 794 [1982]). The disapproval of the petitioner's application for renewal of waiver from the Pag-ibig Fund coverage was by reason that the petitioner's retirement plan was not superior to Pag-ibig Fund (Annex "D", Petition, p. 30, Rollo). It is well-settled principle that the finding of facts by the administrative bodies which has acquired the expertise in the field is entitled to great respect and, should not be disturbed on appeal unless it is shown that it has patently misappreciated the facts. Petitioner however failed to prove by sufficient evidence that the findings of the President of the Fund was patently erroneous.[3](a) For annual certification of waiver or suspension from coverage or participation in the Fund, which shall be granted on the basis of verification that the waiver or suspension does not contravene any effective collective bargaining agreement and that the features of the plan or plans are superior to the Fund or continue to be so; or
x x x x x x x x x
SEC. 1. The legislative power shall be vested in the Congress of the Philippines which shall consist of a Senate and a House of Representatives, except to the extent reserved to the people by the provision on initiative and referendum.The legislative power has been described generally as the power to make, alter, and repeal laws.[8] The authority to amend, change, or modify a law is thus part of such legislative power. It is the peculiar province of the legislature to prescribe general rules for the government of society. However, the legislature cannot foresee every contingency involved in a particular problem that it seeks to address. Thus, it has become customary for it to delegate to instrumentalities of the executive department, known as administrative agencies, the power to make rules and regulations. This is because statutes are generally couched in general terms which express the policies, purposes, objectives, remedies and sanctions intended by the legislature. The details and manner of carrying out the law are left to the administrative agency charged with its implementation. In this sense, rules and regulations promulgated by an administrative agency are the product of a delegated power to create new or additional legal provisions that have the effect of law.[9] Hence, in general, rules and regulations issued by an administrative agency, pursuant to the authority conferred upon it by law, have the force and effect, or partake of the nature, of a statute.[10]