What can employees without contracts do if their employer deducts SSS contributions that don't reflect in their accounts?
In the Philippines, employees are entitled to certain protections and benefits under labor laws, even if they do not have a written employment contract. One significant issue is the improper handling of Social Security System (SSS) contributions. Here's what employees need to know and can do if they encounter problems with SSS deductions.
Understanding Employee Rights
1. Employment Contracts and Labor Code: Even without a written contract, an employee is protected under the Labor Code of the Philippines. Employment is established through the nature of work and the employer-employee relationship, not solely through written agreements.
2. Mandatory SSS Contributions: Employers are required by law to deduct SSS contributions from employees' salaries and remit them to the SSS. This is mandated under Republic Act No. 11199, also known as the Social Security Act of 2018. Failure to do so is a violation of the law.
3. Payslip and Deduction Transparency: Employees should receive a payslip that details their salary and any deductions, including SSS contributions. This transparency helps ensure that employees are aware of the amounts being withheld.
Steps to Address SSS Contribution Issues
1. Verify SSS Contributions: Employees should regularly check their SSS account through the SSS online portal to verify that their contributions are being correctly remitted.
2. Document Discrepancies: If discrepancies are found, employees should document these, including payslips, employment records, and any other relevant documents that show the deductions made by the employer.
3. Communicate with the Employer: Initially, employees should raise the issue directly with their employer or HR department. Sometimes, discrepancies may be due to administrative errors that can be quickly resolved.
4. File a Complaint with SSS: If the issue is not resolved internally, employees can file a complaint with the SSS. The SSS has a process for investigating non-remittance of contributions and can take action against the employer.
5. Seek Assistance from DOLE: Employees can also seek assistance from the Department of Labor and Employment (DOLE). DOLE can provide guidance and support in addressing labor law violations and can facilitate mediation between the employee and employer.
6. Legal Action: In severe cases, employees may need to take legal action against their employer. This can involve filing a case with the National Labor Relations Commission (NLRC) for non-compliance with labor standards and withholding of benefits.
Employer Penalties for Non-Compliance
Employers who fail to remit SSS contributions are subject to penalties, including fines and imprisonment under the Social Security Act. Additionally, they may be required to pay the unremitted contributions with interest.
Conclusion
Employees in the Philippines have robust legal protections even without a written contract. It's crucial for employees to be proactive in monitoring their SSS contributions and to take the necessary steps if they encounter any issues. The combination of internal resolution, complaints to SSS, and assistance from DOLE provides a comprehensive approach to ensuring that employers comply with their legal obligations.