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SC clarifies SSS rules for illegally dismissed workers
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BusinessWorld Online
THE Supreme Court (SC) has ruled that illegally dismissed employees remain entitled to Social Security System (SSS) contributions for the period covered by their backwages, as their employer-employee relationship is deemed to have continued during that period.
In a decision written by Associate Justice Maria Filomena D. Singh, the SC’s Third Division upheld Lopez Sugar Corp.’s (LSC) obligation to remit contributions for four employees illegally dismissed in 1995.
The SC rejected LSC’s argument that its obligation ended when the employees were dismissed.
The Court also ruled that the employees’ acceptance of backwages did not waive their right to SSS contributions, as the claims involved different causes of action.
It also directed the SSS to adjust the employees’ retirement benefits, if warranted, subject to its rules.