Illegal Dismissal May Carry SSS Liability Beyond Backwages
A Supreme Court ruling highlights that an illegal dismissal can create statutory consequences beyond backwages and separation pay.
In Lopez Sugar Corporation v. Perrin, Jr., et al., employees who had already been awarded backwages and separation pay in lieu of reinstatement later sought the SSS contributions corresponding to the period of their illegal dismissal.
The Supreme Court held that illegally dismissed employees are deemed never to have left their employment. The employer's obligation to remit their SSS contributions therefore did not cease during the period covered by the backwages.
The Court also clarified that:
- Claims involving unpaid SSS contributions fall within the jurisdiction of the Social Security Commission.
- A prior illegal-dismissal judgment does not necessarily bar a later claim for unremitted SSS contributions.
- A general satisfaction of judgment or quitclaim does not automatically waive the employer's statutory obligation to remit SSS contributions.
Case reference: Lopez Sugar Corporation v. Romeo Perrin, Jr., et al., G.R. No. 260447, February 5, 2026, Supreme Court, Third Division
For general legal information only. This article is not a substitute for advice on a particular case.
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