The state-run Social Security System (SSS) on Wednesday said a regional trial court convicted a glass and aluminum supplier due to willful violation of Republic Act 1161 as amended by R.A. 8282 otherwise known as the Social Security Law of 1997.
The Makati City Regional Trial Court (RTC) Branch 58 convicted Efren Sales, proprietor of E.M. Sales Iron Works, a glass and aluminum supplier, due to non-production of employment records and non-remittance of employees’ Social Security (SS) and Employees Compensation (EC) contributions.
“It is very unfortunate that Mr. Sales’ employees were greatly affected by his negligence. In fact, his brother who works for the company was not properly reported to the pension fund. Also, the monthly premiums of his two other employees were not remitted to SSS. As a result, these workers were deprived of enjoying their short- and long-term benefits from SSS,” SSS President and Chief Executive Officer Aurora C. Ignacio said.
“The accused still failed to comply with his legal obligations as a business owner despite receiving demand letters from SSS. That is why it is imperative for the branch to endorse his case to our Corporate Legal Services Division for appropriate legal action,” added Ignacio.
Sales was ordered by the RTC to pay P669,546.78 worth of civil liabilities for unpaid contributions and penalties. He will also serve a jail time of six years and one day.
Under the SS Act of 2018, employers must report their employees within 30 days from their first day of work, submit their employee records to the SSS Account Officer for payroll audit, and pay their employee’s SSS contributions regularly.
“I hope that this case will serve as a strong warning to all non-compliant employers that they will face criminal charges if they continue to neglect their legal obligations as business owners. SSS will use the full force of the law to break these wrong labor practices,” said Ignacio.
As of this writing, Sales’ case is now pending with the Court of Appeals (CA). “Rest assured that our pool of lawyers will monitor all cases pending with the CA to ensure that all convicted employers will pay their pending obligations to SSS,” Ignacio concluded.
From 2010 to September 2019, SSS Legal Enforcement Group recorded 73 convictions with total collections amounting to P19.64 million.
