KMG V COMMISSION ON AUDIT
FACTS
RA No. 7305, also known as the “Magna Carta for Public Health Workers” was enacted in 1992 to promote and improve the economic and social well-being as well as the living and working conditions of health workers in the public sector. The law provides, in addition to their basic salary, for hazard pay, among others. In 1996, Health Secretary Juan Flavier granted the request for payment of hazard pay of 5 departments of the GSIS. Subsequently, the Secretary likewise granted the request of the remaining units of the Social Insurance Group (SIG) of GSIS for hazard pay benefits under RA no. 7305. However, GSIS Resident Auditor Ma. Crisitina Dimagiba issued a notice of disallowance regarding the payment of allowances under said RA to the SIG personnel. This retroactive disallowance was made in accordance with a letter from the Department of Budget Management (DBM) stating that employees belonging to the SIG are not considered as “health-related workers” and are therefore not qualified to receive hazard pay under RA 7305. Thereafter, Dimagiba issued another notice, this time disallowing the payment of hazard pay to the SIG personnel from January 1998 to the present. The employees in the SIG moved for a reconsideration of the notice , but Dimagiba maintained her stance. The KMG, the recognized employees’ union in the GSIS, appealed the disallowance to the COA. COA affirmed Dimagiba. Principally, the KMG claims that the previous grant of hazard pay by the GSIS was well within its right as authorized by the DOH, the agency tasked to implement the RA. It insists that since their processing of numerous medical claims inevitably exposes them to infected persons, documents and objects, thereby entitling them to the hazard pay. Further, it argues that since they’ve been receiving hazard pay for several years already, such grant in their favor has ripened into a vested right.
ISSUE
Whether or not the SIG employees are “health-related workers” and are therefore qualified to receive hazard pay under RA 7305.
HELD
NO. The records show that the functions of the SIG personnel are not principally related to health. They perform tasks for the processing of GSIS members’ claims for life insurances, retirement, disability and surviving benefits. These functions are not similar to those of persons working in health-related establishments such as clinics or medical departments of government agencies. Undoubtedly, they cannot be considered public health workers under RA 7305.
Assuming arguendo that they may be considered as public health workers, they would still not qualify to be the recipient of hazard pay benefits, as they failed to prove that they work in establishment specifically mentioned in Section 21 of RA 7305 (health-related establishments located in difficult areas, strife-torn or embattled areas, distressed or isolated stations, prison camps, mental hospitals, disease-infected areas, etc.), much less show that they have been exposed to specific kinds of hazard for at least 50% of his working hours.
Also, it has been previously held that practice, no matter how long continued, cannot give rise to any vested right if it is contrary to law. The erroneous application and enforcement of the law by public officers does not estop the Government from making a subsequent correction of such errors. Hence, the payment of hazard pay benefits to the SIG personnel may validly be discontinued by the government, being inconsistent with the pertinent law.
