The state-run Social Security System (SSS), together with the Philippine National Police (PNP) Manila Police District, continued its crackdown of delinquent employers as it served warrants of arrest to two employers in Metro Manila on 16 June.
SSS and PNP successfully served warrants of arrest to Florida Jose of Falcon Maritime & Allied Services, Inc. and to Ana Marie Celestia Vasquez of Applebee, Inc. due to their violation of then Republic Act 1161 as amended by R.A. 8282 otherwise known as the Social Security Law.
“This shows our serious commitment to apprehend employers who disregard their legal obligations of reporting their employees to SSS and religiously remitting the contributions of their employees to SSS. This has been SSS’ ongoing project nationwide since it was launched in 2017,” SSS President and Chief Executive Officer Aurora C. Ignacio said.
Jose was arrested for non-payment of contributions and penalties worth P 7.92 million computed as of 13 September 2019. Vasquez of Applebee Inc. was criminally charged for non-remittance of contributions worth P 1.5 million computed as of 12 September 2019.
“Since PNP’s first serving of warrants of arrest to SSS-delinquent employers, a total of 15 employers with warrants of arrest were apprehended nationwide. Three of these are still ongoing trials in courts, while others chose to settle and apply in our recently concluded Contribution Penalty Condonation Program (CPCP),” SSS Chief Legal Counsel and Legal Enforcement Group Senior Vice President Atty. Voltaire Agas said during the operation.
SSS offered CPCP from March 6 to September 6 this year to delinquent employers to allow them to pay for the unpaid premiums of their employees without the incurred penalties. CPCP is a product of the transitory clause under the Republic Act 11199 or Social Security Act of 2018.
“We gave delinquent employers a chance to put their records back to good standing through our contribution condonation. Now that the program has ended, we will continue to identify erring employers and send them billing letters. This is a stern warning to all delinquent employers that they may face legal consequences such as payment of penalties and worse, imprisonment if they continue to ignore the welfare of their employees and deprive them of the social security benefits due them,” Agas added.
Alongside the issuance of warrants of arrest to delinquent employers, the pension fund has also been conducting the Run Against Contribution Evaders (RACE) campaign since 2017 to notify erring employers of their delinquent accounts and give them 15 days to explain why they should not be legally liable. The show cause orders are posted on the establishments to inform the public as well. Since June 2019, SSS has conducted simultaneous RACE operations nationwide and visited more than 100 establishments in 15 areas particularly in: Mandaluyong; San Fernando, Pampanga; Mandaue, Cebu; Dipolog, Zamboanga del Norte; Binondo, Manila City; Cabanatuan City, Nueva Ecija; Dumaguete, Negros Oriental; Iligan, Lanao del Norte; Parañaque City; Bauan, Batangas; Koronadal, South Cotabato; Tacloban City, Leyte; Novaliches, Quezon City; San Fernando, La Union; and Digos City, Davao del Sur.
