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Two employers convicted, arrested for violating Social Security Law

Published Sep 19, 2020 04:28 pm

Social Security System (SSS) warned delinquent employers that non-compliance of the Social Security Law has corresponding penalties and legal repercussions for depriving private-sector workers of their social security benefits.

According to the pension fund, authorities have arrested two employers identified as Antonio Perlas, owner of Red Lion Pub in Itogon, Benguet, and Larry Ferrer, owner of Ads Central in Alaminos, Pangasinan, who were both convicted of violating the Social Security Law in separate operations conducted in July and August, respectively.

Perlas, who was tagged as the agency's most wanted employer in Luzon North 1 Division, was convicted by the Baguio Regional Trial Court (RTC) Branch 7 in October 2019 for violation of Section 24 (d), in relation to Sec. 18 (a) and Sec. 19 (a) and (b) of the Social Security Act of 2018.

"Perlas violated the said provisions by failing to produce records as prescribed by the SSS, deduct employee's share of contributions from his employees' compensations, pay the employer's share of contributions, and remit them to the SSS," the pension fund said.

He was sentenced to six years in prison and to pay his obligations amounting to over P16.8 million, as computed by the RTC Sheriff as of August 2020. Perlas failed to appear during the last scheduled hearing for promulgation with no acceptable excuse which led the RTC to order his arrest.  

Meanwhile, Ferrer's case was provisionally dismissed back in August 2015 because of his proposal to pay the SSS in installment basis, his employees' contributions that he failed to remit, including penalties for late payments.  

Ferrer had fully paid his principal obligation but the case against him was revived in January 2017 as penalties amounting to P40,172.04 remained unsettled. He also continued to be at large despite the issuance of a warrant of arrest, the pension fund said.

In a decision dated May 2020,  the Baguio RTC Branch 7 found Ferrer guilty of violating the Social Security law. He was also sentenced to serve six years and one day up to a maximum of eight years in prison and pay his SSS obligation, plus a 3 percent monthly interest accumulated from August 2015.  

The pension fund said these penalties could have been condoned through its Contribution Penalty Condonation Program for Employers when it was still offered but Ferrer did not avail.

"We reiterate our message to all other delinquent employers that they will not be excused from the law. Any minor or major violation against the SS Law has corresponding legal repercussions as it deprives private-sector workers of social security benefits due to them," SSS President and CEO Aurora Ignacio said in a statement.

Ignacio also assured that it will continuously uphold every worker's right to social security so that they may avail of the benefits and loans it provides.

"SSS benefit programs are its members' and their beneficiaries' safety net in times of sickness, maternity, unemployment, retirement, disability, death, and other contingencies that cause loss of income or financial burden," she emphasized.

"The number of their contributions determines entitlement to these programs. When employers neglect their obligations under the SS Law, their employees cannot avail of the programs that SSS offers," Ignacio added.

The SSS chief also encouraged members to immediately contact them for complaints regarding non-remittance, non-reporting, and other related concerns on the matter.

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