Dear

PAO,
Our company started its operations in 2009 but it only began deducting SSS, PhilHealth and
Pag-IBIG contributions from our salaries in 2010. I brought this matter to our Human
Resources department, together with some of my officemates, and we were told that they will fix
the issue.
Until now, we think they have not done anything about our concern. We sought assistance from
the Department of Labor and Employment (DOLE) about this and we were advised to try sorting
things out with our employer. If they still do not give us favorable update or if we find out that
they really did not pay our contributions, can we proceed with filing a complaint before the
Labor Arbiter of the DOLE? Please advise us on what to do. Thank you and more power.
Toto
Dear
Toto,
Under the law, Labor Arbiters only have the original and exclusive jurisdiction over the
following cases: (1) Unfair labor practice cases; (2) Termination disputes; (3) If accompanied
with a claim for reinstatement, those cases that workers may file involving wages, rates of pay,
hours of work and other terms and conditions of employment; (4) Claims for actual, moral,
exemplary and other forms of damages arising from the employer-employee relations; (5) Cases
arising from any violation of Article 264 of this Code, including questions involving the legality
of strikes and lockouts; (6) Except claims for employees compensation, social security, Medicare
and maternity benefits, all other claims arising from employer-employee relations, including
those of persons in domestic or household service involving an amount exceeding Five thousand
pesos (P5,000), whether or not accompanied with a claim for reinstatement (Article 217 as
amended by Section 9, Republic Act or RA 6715); (7) Wage distortion disputes in unorganized
establishments not voluntarily settled by the parties (RA 6727); (8) Enforcement of compromise
agreements when there is non-compliance by any of the parties pursuant to Article 227 of the
Labor Code, as amended; (9) Money claims arising out of employer-employee relationship or by
virtue of any law or contract, involving Filipino workers for overseas deployment, including
claims for actual, moral, exemplary and other forms of damages as provided by Section 10 of RA
8042, as amended by RA 10022; and (10) Such other cases as may be provided by law.
Applying the foregoing, we submit that filing of a complaint before the Labor Arbiter is not the
proper remedy for you and your co-workers to avail of. Nevertheless, you may pursue separate
complaints against your employer before the Social Security System, PhilHealth and Pag-IBIG.
According to Section 28 of RA 8282 or the Social Security Law: (e) Whoever fails or refuses to
comply with the provisions of this Act or with the rules and regulations promulgated by
the[system], shall be punished by a fine of not less than Five thousand pesos (P5,000.00) nor
more than Twenty thousand pesos (P20,000.00), or imprisonment for not less than six (6) years
and one (1) day nor more than twelve (12) years or both, at the discretion of the court: x x x

PhilHealth can impose a penalty of fine not less than Five Hundred Pesos (P500.00) but not more
than One Thousand Pesos (P1,000.00) multiplied by the total number of employees employed by
them and imprisonment of not less than six (6) months but not more than one (1) year to
employers who fail or refuse to deduct contributions from the employees compensation or to
remit the same to the Corporation. (Section 44, RA 7875 or the National Health Insurance Act of
1995)
Lastly, under Section 25 of RA 9679 or the Home Development Mutual Fund Law of 2009, the
employer who fails to remit contributions without lawful cause or with fraudulent intent may be
penalized with imprisonment of not more than six (6) years and/or a fine of not less than but not
more than twice the amount involved.