606 firms in hot water over SSS contributions

Delinquent companies charged in court

2:24 am | Wednesday, October 3rd, 2012

The Social Security System filed lawsuits against 606 companies in the first half of the year, mostly for failing to remit contributions to the pension fund.

Santiago Agdeppa, SSS assistant vice president and head of the legal department, said the number represented a 17-percent increase from the 518 firms charged in court in the same period in 2011.

Agdeppa said that this year, 494 of the delinquent companies failed to turn over monthly premiums amounting to P209.3 million, including the 3-percent monthly penalty that had accumulated to P188 million.

The other firms were charged for failing to register workers for SSS coverage or refusing to cooperate with SSS account officers who are inquiring about their businesses.

The Social Security Act of 1997 requires employers to register workers with the SSS within 30 days from start of employment and to promptly remit monthly contributions of employees.

Employers are also required by law to present their records for inspection by SSS or its authorized representatives.

“We continue to intensify legal measures to compel employers to fulfill their responsibilities under the law,” Agdeppa said.

When pressed for details, he explained that the SSS preferred to withhold the names of the delinquent companies from the public in order to encourage them to settle their accounts and spare both the SSS and the firms from the costs and hassle of lawsuits.

Also in the first semester, the pension fund collected P155.63 million from employers who settled their obligations after the SSS initiated legal action against them—including the issuance of demand letters and the filing of cases in court, Agdeppa said.

The SSS official explained that, under the law, delinquent employers face up to 12 years in prison and a fine of P5,000 to P20,000.

“To safeguard against unscrupulous employers, we encourage employees to monitor the remittance of their SSS payments by registering at our website at www.sss.gov.ph,” Agdeppa said.

“Employees can file a complaint against delinquent employers at their nearest SSS branch. They may remain anonymous in filing their complaints. But what is important is that they inform SSS so we can immediately start to investigate.”

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Tags: companies , court , employers , Philippines , Social Security System , SSS contributions

Marla Ly

How about this also. Gov’t should SUPPORT businesses. Last I checked, gov’t makes it even harder for local businesses to stay afloat. This SSS problem is just another part of the domino effect. Look at other countries. Their gov’t even gives away grant money for different purposes. When businesses are supported, the rest follows.
binatangtagabukid

matagal na kalakaran yan
policaruso

The number of delinquent if not abusive employers is even more than a thousand and the 600+ reported is just a tip of the iceberg. Why did these employers thrived amidst the sharp teeth of the SSS Law’s penal clause? Or, under a giant government who is supposed to be the guardian of the employees’ rights? My suspicion, which I believe is true, is that the SSS employees are sleeping on the job although showered with unbelievable benefits and perks coming from the billions of contributions from the SSS members. They better resign from their jobs because they are members of NPAs in this GOCC – they are the so-called Non-Performing-Assets in the organization who are like parasites, sucking the funds of the SSS but without beneficial services to SSS. This GOCC must drink a powerful Latigo-50 or a more potent drug to get rid of these parasites who are of no use to SSS members and pensioners.
http://profile.yahoo.com/UZMYIL5FXLVIHRZXBQGONZS6U4 Jhune

SSS withhold the names of the unscrupulous employers, did these employers withhold too in deducting contribution? Common SSS you are the representative of the million SSS members, are you afraid? You better resign to you post Agdeppa.
bol pen

AS a part of the mandate of this government agency, the SSS should not wait for the complaints lodged by the employees. They should conduct a thorough inspection to all the listed companies in partnership with SEC together with HDMFI, Philhealth, BIR and other collecting agencies.
WeAry_Bat

Excellent.
http://www.facebook.com/track.wander Track Wander

A commendation deserve by SSS to protect common employees.
http://profile.yahoo.com/AUNBI66J3EGEPMV5LFCN53OUGI JEO

Good Job SSS, we must protect the SSS Agency as millions of people depend on it..invest the money of the people in a less risky products..so that our people will be happy in their retirement time.
Panch1t0

When pressed for details Mr. Agdeppa explained that the SSS preferred to withhold the names of the delinquent companies from the public in order to encourage them to settle their accounts and spare both the SSS and the firms from the costs and hassle of lawsuits.

My comment:

“Withholding the company names to encourage settling their accounts” – this is not encouragement. This is clearly protecting the company against public scrutiny. If SSS is firm with the charges, the company should be listed in the open to encourage them take the initial step approaching SSS to settle their matters/shortcomings. Mr. Agdeppa your attention please or you are just taking publicity….

http://profile.yahoo.com/AUNBI66J3EGEPMV5LFCN53OUGI JEO

I believe Mr Agdeppa did a good job..from chasing and give warning in these company. about withholding the name of the companies is a right move to do as the situation can still be negotiated by both parties and these companies to learn that governement is working now…at least it start to work as it is supposed to.. Remember that as possible we want to proptect every businesses as it is the source of employment of our people as long as they respect the law and they do the right way.

Panch1t0

I respect your comment. The thing is the “warning and chasing” is I believe the thing in the past. The news is about legal suits filed by the SSS which is now a public document. These companies must learn…. and take necessary steps to move forward…. or again just a publicity. No offense Mr. Mr Agdeppa I think you are doing great.
http://twitter.com/erncastillo ern

Leave the manager alone…. it’s his function. He knows what he is doing.
Panch1t0

ern my comment is focused in the news, not the manager. It just happened that he made action peculiar.

http://pulse.yahoo.com/_FFVPH2R22XWJ3Z6QOP3WBA6KA4 EC

You are being cynical. Sometimes employers stall their remittance to SSS because they are having trouble with their cash flow. There is really no point in embarrassing them by making public the legal action against them. The most important thing is that the employers settle their obligation to their employees and the SSS.

Panch1t0

EC Im not being cynical here. Please read the story/news. The SSS filed lawsuit, their “grace period to settle their trouble in cash flow is over” as I said its the thing in the past. I believe SSS tried to be tolerant before case is filed. Your is comment noted.

INQ_reader

That is called rule of law. Under our Constitution, no person shall be deprived of life, liberty and property without due process. The companies have to be given chances to settle their accounts, or if already paid, prove it by showing reciepts.

What if there was a mistake?

Panch1t0

I believe in filing legal actions by the SSS against these employers, studies and preparation on all legal matters were (or should have) made properly by the SSS. The employer’s chance is settling their account “under the rules of SSS” has passed. True – that is the rule of law. SSS is at fault if there was a mistake on the examples you wrote.

http://jaoromero.com/ Jao Romero

if the names of the company are made public, all the cases will go through trial while if they give the companies a chance to settle their obligations, they’ll have fewer cases to file. use your brain please.

Panch1t0

Thanks for the comment Jao. But I don’t think an institution like SSS did not gave little chance for the employers to settle their obligations. As I wrote “SSS must be firm with their charges”, otherwise SSS will be in the loosing end – this is what I mean. I hope you have your brain on this at least a drop.
http://jaoromero.com/ Jao Romero

it’s always more preferable to settle than to go to court. iwas gastos, iwas sayang oras, iwas hassle. kung hindi mo to ma gets, sorry na lng. kung mag hihinigpit ang SSS, mas malaki mawawala d2. sana lng kumonti na ang pinapanganak na tanga d b?

btw, mag tagalog k n lng kung d k marunong mag english. iba ang lose sa loose. iba ang losing sa loosing. google mo nga. sabog ang grammar mo, kaya tinatagalog n lng kta. nakakaawa k nman.
Panch1t0

Better read the news, its already a court case. This is why Im commenting the news. brainless.
http://jaoromero.com/ Jao Romero

filing is different from going through trial. duh. aanhin mo ang kakayahan magbasa kung ignorante ka naman?
Panch1t0

Jao its in the process. SSS filed lawsuit. Its a court case. Focus and comment on the news. You seem neglected. Thanks anyway.

606 firms in hot water over SSS contributions

Delinquent companies charged in court

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