Can employees take legal action if their employer fails to remit SSS contributions?

The Social Security System (SSS) in the Philippines provides protection to employees against various contingencies, including sickness, disability, maternity, old age, and death. It is a mandatory program where employers are required by law to remit contributions on behalf of their employees. However, there are instances where employers fail to comply with this obligation, leading to questions about the legal remedies available to employees.

Legal Obligations of Employers

Under the Social Security Act of 2018 (Republic Act No. 11199), employers are mandated to register their employees with the SSS and regularly remit their contributions. This law stipulates that contributions should be made monthly, and any failure to comply is considered a violation of the law.

Consequences of Non-Remittance

Employers who fail to remit SSS contributions are subject to penalties and legal action. The SSS can impose fines, charge interest on the unpaid contributions, and pursue legal proceedings against the delinquent employer. Specifically, the law provides for a penalty of 3% per month on delayed contributions until the entire amount is fully paid.

Employee Remedies

Employees have several options if they discover that their employer has not been remitting their SSS contributions:

Filing a Complaint with the SSS: Employees can file a complaint directly with the SSS. The SSS has the authority to investigate and enforce compliance, including the collection of unpaid contributions and penalties.
Legal Action: Employees may seek legal redress through the National Labor Relations Commission (NLRC) or the appropriate courts. Legal action can compel the employer to pay the unremitted contributions and any applicable damages.
Administrative Sanctions: The SSS can impose administrative sanctions on non-compliant employers, including the issuance of a warrant of distraint, levy, or garnishment to collect unpaid contributions.
Criminal Prosecution: Employers who deliberately fail to remit SSS contributions can face criminal charges, leading to imprisonment and additional fines. The SSS can refer such cases to the Department of Justice for prosecution.

Prescriptive Period

Employees should be aware of the prescriptive period for filing claims. Under the SSS law, actions to collect contributions must be brought within 20 years from the time the obligation to pay contributions arises.

Conclusion

Employees have the right to expect their employers to fulfill their legal obligations regarding SSS contributions. If an employer fails to remit these contributions, employees can take various legal actions to ensure compliance and protect their benefits. By understanding their rights and the legal remedies available, employees can effectively address any issues related to non-remittance of SSS contributions.