SC: Illegally dismissed workers entitled to SSS contributions

Employees who are illegally dismissed are entitled to the remittance of their Social Security System contributions on top of full backwages, the Supreme Court ruled.

In a decision penned by Associate Justice Maria Filomena D. Singh, the SC Third Division held that an employer’s obligation to remit SSS contributions continues throughout the period covered by an employee’s illegal dismissal.

The case involved four Lopez Sugar Corp. employees who were ordered reinstated with full backwages after being illegally dismissed.

After the ruling became final, the workers asked the company to remit their SSS contributions covering the period included in their backwages so they could qualify for retirement benefits.

The company refused, arguing that its obligation to pay contributions ended when the workers were separated from employment.

The Social Security Commission rejected the argument, a ruling later affirmed by the Court of Appeals and the SC.

The high court said illegally dismissed workers are considered to have remained employed during the period covered by their backwages and are therefore entitled to benefits that would have accrued during that time.

The SC also imposed a 3 percent monthly penalty on the company for unremitted contributions, calculated from the date they became due until fully paid.