Letter to an Attorney

Dear Attorney,

I hope this letter finds you well. I am reaching out to seek legal advice regarding an issue I and some of my colleagues are currently facing with our employer. Specifically, our employer has been deducting contributions for the Social Security System (SSS) from our salaries; however, it has come to our attention that these deductions have not been remitted to SSS for nearly a year.

This has caused significant concern, as SSS contributions are critical for our social benefits, and the lack of remittances affects our records and entitlements. We would like to know the best course of action to take to address this matter, including filing a formal complaint.

Thank you for your assistance.

Sincerely,
A Concerned Employee

Comprehensive Legal Discussion: Filing a Complaint Against Employers for Non-Remittance of SSS Contributions

Introduction to SSS Contributions and Employer Obligations

The Social Security System (SSS) in the Philippines is a government-mandated program designed to provide employees with financial assistance in times of need, such as retirement, illness, disability, or death. Under the Social Security Act of 2018 (Republic Act No. 11199), both employers and employees are required to contribute to the SSS fund. Employers are responsible for deducting the employee’s share of the contribution and adding their share before remitting the total amount to SSS on a monthly basis.

Non-compliance with these requirements is a serious offense. Employers who fail to remit SSS contributions despite deducting them from employees' salaries may face administrative, civil, and even criminal liability.

Legal Framework Governing SSS Contributions

Republic Act No. 11199 (Social Security Act of 2018):
- Section 28 of RA 11199 explicitly requires employers to remit both the employee’s and employer’s shares of SSS contributions.
- Section 22 mandates that contributions should be remitted on or before the 15th day of the following month.
- Section 28(j) imposes criminal penalties, including imprisonment and/or fines, on employers who fail to remit contributions.
Labor Code of the Philippines:
- Article 116 prohibits employers from withholding wages unlawfully, including deductions for contributions that are not remitted to the proper agencies.
- Non-compliance may also constitute an unfair labor practice under the Labor Code.
Implementing Rules and Regulations (IRR) of RA 11199:
- These rules outline specific procedural requirements for remittance and the obligations of employers to maintain accurate records.
Relevant Jurisprudence:
- Philippine courts have consistently ruled that employers must strictly comply with SSS remittance obligations. For instance, in Social Security System v. Pyrotech Corporation (G.R. No. 175941, 2013), the Supreme Court underscored the public interest served by ensuring prompt remittance of contributions.

Steps to Address Non-Remittance

If you discover that your employer has been deducting SSS contributions but failing to remit them, you can take the following steps:

Step 1: Verify the Issue
Before filing a complaint, confirm that contributions have not been remitted by obtaining a copy of your SSS Contribution Record. This can be accessed through the My.SSS portal or by visiting an SSS branch. Compare your records with your payslips to verify discrepancies.

Step 2: Notify the Employer
In some cases, non-remittance may be due to administrative oversight. Notify your employer or the HR department in writing about the issue and request immediate remittance. This can serve as evidence of good faith on your part.

Step 3: File a Complaint with the SSS
If the employer fails to act, you can file a formal complaint with the SSS. Here’s how:

Where to File: Submit the complaint at any SSS branch or through the SSS website.
Requirements: Include the following:
- A detailed account of the issue.
- Copies of your payslips showing deductions.
- Your SSS Contribution Record.
- Correspondence with your employer regarding the matter.
SSS Investigation: The agency will investigate the complaint and may conduct an audit of the employer’s records.

Step 4: Seek Assistance from DOLE
The Department of Labor and Employment (DOLE) may assist employees in addressing labor-related disputes, including non-remittance of contributions. Contact the nearest DOLE office to inquire about filing a complaint under labor laws.

Step 5: File a Criminal Case (If Necessary)
If the employer continues to ignore the issue, you may consider filing a criminal case under RA 11199. Criminal penalties include:

Imprisonment of six (6) years to twelve (12) years.
A fine of up to PHP 20,000.

The case can be filed at the Office of the City Prosecutor. Legal counsel will be necessary to guide you through this process.

Potential Defenses by Employers and How to Counter Them

Employers may claim financial difficulties, lack of knowledge, or administrative lapses as defenses. However, these are not sufficient justifications under the law. Employees can counter these defenses by presenting evidence of deductions (e.g., payslips) and highlighting the employer’s statutory duty to remit contributions.

Additional Remedies for Employees

Small Claims Court:
- Employees may file for the reimbursement of unremitted contributions if these were deducted from their salaries.
Administrative Penalties:
- Employers found guilty may be subjected to administrative sanctions, including suspension of business permits.

Preventative Measures for Employees

To avoid future issues, employees should regularly check their SSS Contribution Records and report discrepancies immediately. Employers, on the other hand, should maintain accurate records and ensure timely compliance to avoid penalties.

Conclusion

Non-remittance of SSS contributions is a serious violation of Philippine law that compromises employees’ rights to social security benefits. Employees have multiple avenues for redress, from filing complaints with the SSS and DOLE to pursuing criminal cases against erring employers. Legal remedies not only hold employers accountable but also reinforce the importance of upholding labor standards.

By understanding the legal framework and procedural steps involved, employees can effectively assert their rights and seek justice in cases of non-remittance. Employers, for their part, must recognize their vital role in ensuring compliance and protecting the welfare of their workers.