Under the Social Security Act of 2018 (Republic Act No. 11199), the Social Security System (SSS) provides a social security program to protect workers against the hazards of disability, sickness, maternity, old age, and death. A critical component of this protection is the prompt processing of sickness and maternity benefits. When an employer fails to perform its statutory duties regarding these filings, significant legal liabilities arise.

The Nature of the Employer's Duty

In the Philippine social security system, the employer acts as a vital intermediary between the employee and the SSS. This role is not merely administrative; it is a mandatory legal obligation.

Sickness Benefits: The employer must pay the employee the sickness benefit in advance. Once paid, the employer then seeks reimbursement from the SSS.
Maternity Benefits: Similarly, the employer is required to advance the full maternity benefit to the qualified female employee within thirty (30) days from the filing of the maternity leave application.

The failure to advance these payments or to notify the SSS of the claim can lead to the employer being held directly liable for the benefit amount.

Grounds for Employer Liability

Liability typically stems from three specific failures on the part of the employer:

Failure to Remit Contributions: If an employee is otherwise qualified for the benefit but the employer failed to remit the required SSS contributions, the SSS may deny the claim. In such cases, the employer is legally bound to pay the SSS the equivalent of the benefits the employee would have been entitled to, plus penalties.
Failure to File/Notify: For sickness benefits, the employee must notify the employer, who in turn must notify the SSS within five (5) calendar days after receipt of the notification. Failure to notify the SSS within the prescribed period results in the employer becoming liable for the benefit.
Failure to Advance Payment: If the employer fails to advance the benefit to the employee (despite the employee having met all notification requirements), the employer violates the Social Security Act.

Legal Consequences and Penalties

The Social Security Act of 2018 provides for both civil and criminal liabilities for erring employers.

1. Civil Liability (Reimbursement and Damages)

The employer must pay the employee the full amount of the benefit that should have been received from the SSS. Furthermore, if the case is brought before the Social Security Commission (SSC) or the courts, the employer may be ordered to pay:

The full value of the benefit.
Legal interest on the unpaid amount.
Actual or moral damages, depending on the circumstances of the denial.

2. Criminal Liability

Section 28 of R.A. 11199 outlines the criminal penalties. Any person (including corporate officers) who fails or refuses to comply with the provisions of the Act—including the advancement of benefits—can be punished by:

A fine ranging from ₱5,000 to ₱20,000.
Imprisonment for a period of not less than six (6) years and one (1) day to twelve (12) years.

3. Presumptive Liability

If a claim is denied by the SSS because the employer failed to remit contributions or failed to report the employee for coverage, the law presumes the employer is liable for the full amount of the benefit.

Procedural Remedies for Employees

Employees who have been denied their benefits due to employer negligence or willful omission have several avenues for redress:

SSS Branch Office: The employee can report the non-payment or non-filing to the SSS for investigation and assistance.
Social Security Commission (SSC): The SSC has jurisdiction over disputes involving SSS benefits and contributions. A formal petition can be filed here to compel the employer to pay.
Department of Labor and Employment (DOLE): Since the advancement of benefits is considered a labor standard, employees may also seek assistance through the DOLE’s Single Entry Approach (SEnA) for mediation.

Summary of Key Principles

Advance Payment is Mandatory: Employers cannot wait for SSS reimbursement before paying the employee. The law requires the employer to pay first.
Non-Transferability of Fault: An employer cannot escape liability by claiming they "forgot" or that their HR department was understaffed. The duty is absolute upon the occurrence of the contingency (sickness or childbirth) and proper notification.
Strict Timelines: Both the sickness notification and the maternity leave application have strict windows (e.g., 5 days for sickness notification to SSS). Missing these windows shifts the financial burden from the SSS to the employer.