Reps investigate employers non remittance pension deductions

A very specific and important topic!

The Reps (short for Representatives) in the Philippines, particularly the Department of Labor and Employment (DOLE), have the authority to investigate employers who fail to remit pension deductions to the Social Security System (SSS) and the Philippine Health Insurance Corporation (PhilHealth).

Here's a breakdown of the process:

  1. Complaint filing: An employee or a representative of the employee files a complaint with the DOLE or the SSS, alleging that their employer has failed to remit pension deductions.
  2. Investigation: The DOLE or SSS conducts an investigation to verify the allegations. This may involve:
    • Reviewing records and documents related to the employer's pension deductions and remittances.
    • Conducting interviews with the employer, employees, and other relevant parties.
    • Inspecting the employer's premises to gather evidence.
  3. Finding of non-remittance: If the investigation reveals that the employer has indeed failed to remit pension deductions, the DOLE or SSS issues a finding of non-remittance.
  4. Penalties and sanctions: The employer may be subject to penalties and sanctions, including:
    • Fines and penalties for each employee affected.
    • Suspension or revocation of business permits and licenses.
    • Public posting of the employer's non-compliance.
  5. Recovery of unpaid contributions: The DOLE or SSS may also order the employer to recover the unpaid pension deductions and remit them to the relevant government agency.
  6. Employee benefits: Employees who were affected by the non-remittance of pension deductions may be entitled to benefits, such as:
    • Backpay for the unpaid pension deductions.
    • Interest on the unpaid contributions.
    • Other benefits as may be prescribed by law or regulations.

The DOLE and SSS have various mechanisms in place to ensure that employers comply with their obligations to remit pension deductions. These include:

  1. Regular monitoring: The DOLE and SSS conduct regular monitoring and inspections to ensure that employers are remitting pension deductions on time.
  2. Compliance reporting: Employers are required to submit regular reports on their pension deductions and remittances to the DOLE and SSS.
  3. Penalties for non-compliance: Employers who fail to remit pension deductions may be subject to penalties and sanctions, as mentioned earlier.

It's essential for employees to be aware of their rights and to report any instances of non-remittance of pension deductions to the DOLE or SSS.