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Recovering Unpaid Overtime & SSS Contributions After Resignation
A comprehensive Philippine legal guide (updated to 2025)
Even after you have signed your quitclaim or cleared your accountabilities, you do not lose the right to pursue statutory wage differentials and government-mandated contributions. — Article 116, Labor Code & Section 24, SSS Law (RA 11199)
1. Quick-look checklist
What you want to recover | Governing law | Prescriptive period¹ | Where to file first | Typical documentary proof |
---|---|---|---|---|
Overtime pay, rest-day / night-shift premiums, holiday pay | Labor Code (PD 442, as amended) & Omnibus Rules; DOLE D.O. 147-15 | 3 years from each date the pay fell due | DOLE Single-Entry Approach (SEnA) → DOLE Regional Office or NLRC, depending on case theory | Time cards, biometrics print-outs, CCTV logs, e-bundy records, payslips, e-mails assigning work |
Unremitted SSS contributions & penalties | Social Security Act of 2018 (RA 11199) | 20 years from the year the contribution should have been paid (Sec. 24[j]) | Nearest SSS Branch → SSS Accounts Management Section; criminal cases via SSS Legal or prosecutor’s office | SSS contribution print-out (My.SSS), payroll register, employment contract, Certificate of Separation |
¹Prescription is interrupted by a written demand or the filing of a complaint.
2. Unpaid Overtime Pay
2.1 Statutory definition & rates
Work performed | Premium to basic daily wage |
---|---|
Beyond 8 hrs on ordinary day | 125 % (Art. 87) |
Rest day / special non-working day first 8 hrs | 130 % (Art. 93) |
Rest day overtime | 169 % |
Regular holiday first 8 hrs | 200 % (Art. 94) |
Regular holiday overtime | 260 % |
Night shift (10 p.m.–6 a.m.) | +10 % (Art. 86) |
Exemptions: managerial employees, field personnel, family drivers, and those on output-oriented contracts unless the employer exercised “substantial control” (Auto Bus Transport v. NLRC, G.R. 155509, 23 Aug 2005).
2.2 How to compute
- Determine the regular hourly rate (Daily wage ÷ 8).
- Multiply by the applicable premium percentage.
- Multiply by number of overtime hours.
- Add 6 % legal interest per annum from date of extrajudicial demand (Nacar v. Gallery Frames, G.R. 189871, 13 Aug 2013).
2.3 Enforcement route
Ask in writing. Demand letter triggers 6 % interest.
SEnA (mandatory 30-day conciliation).
DOLE Regional Office issues a Compliance Order if:
- employer-employee relationship exists, and
- claim arises solely from labor standards (regardless of amount). Otherwise, file a regular NLRC money-claim case (Art. 129 vs. Art. 224 jurisdiction).
Execution: sheriff may garnish bank accounts or levy personalty.
3. SSS Contribution Delinquencies
3.1 Employer obligations
- Register employees within 30 days from hire (Sec. 24[a]).
- Deduct employee share and remit both shares on or before the month’s 10th (electronic) or end (manual).
- Filing correct R-3 & R-5 forms with proof of payment.
3.2 Employee remedies after resignation
Step | Purpose | Agency & tool |
---|---|---|
1. Verify records | Print “Actual Premiums” under My.SSS or request via SSS e-Center. | SSS Member Portal |
2. Demand in writing | Give HR 10 days to rectify & pay penalties. | Company or its Authorized Representative |
3. File SSS Form R-4 (Report of Discrepancy) | Triggers audit & billing. | SSS branch of employer’s principal office |
4. SSS issues BPN (Billing & Penalty Notice) | 3 % monthly penalty; leads to Warrant of Distraint/Levy & Garnishment (WDLG) if unpaid. | Accounts Management Section |
5. Criminal complaint (optional) | Art. 315 RPC estafa or Sec. 28(e) RA 11199 (fine + 6–12 yrs imprisonment) | SSS Legal / City or Provincial Prosecutor |
3.3 Effect on future benefits
Unposted contributions may:
- reduce retirement, sickness, maternity, disability, unemployment¹, or funeral benefits;
- cause denial for unemployment benefit (requires 36 posted contributions, 12 in last 18 months). ¹RA 11228 (2019) expanded unemployment insurance.
4. Quitclaims & waivers
- A quitclaim does not cover statutory benefits unless payment in full is proven and the waiver is voluntary, deliberate, and reasonable (GPF v. Gison, G.R. 196950, 31 Jan 2018).
- Over-reaching quitclaims may be set aside for being contrary to public policy.
5. Prescription & tolling
Claim | Clock starts | Interruptions | Absolute bar |
---|---|---|---|
Money claims (Labor Code) | Date each wage became due | Written demand, filing of complaint, employer’s written acknowledgment | 3 yrs |
SSS contribution collection by SSS | End of calendar year of delinquency | Filing of SSS action or issuance of WDLG | 20 yrs |
SSS benefit claims by employee | Date of contingency | Filing of SSS or court action | 10 yrs |
6. Strategy tips
- Compute first. Precise figures speed up conciliation.
- Bundle claims wisely. If you are also contesting constructive dismissal, file everything with NLRC to avoid splitting causes of action.
- Preserve e-evidence. Screenshots of biometric dashboards and Teams/Slack time-stamps are admissible (REMED Rule 5).
- Keep contact data updated. SSS notices are mailed to last known address; missed notices won’t suspend penalties.
- Consider amicable settlement if employer offers to post SSS in lump sum; criminal liability may be withdrawn upon full compliance (SSS Circular 2020-011).
7. Sample computation (illustrative)
Daily wage ₱800; worked 22:00–24:00 on ordinary weekday for 10 days; resigned 31 Mar 2024.
Regular hourly rate = 800 ÷ 8 = ₱100 OT premium = 100 × 125 % = ₱125 Total OT per night = ₱125 × 2 hrs = ₱250 Ten nights = ₱2 500 6 % interest 01 Apr 2024 – 10 May 2025 (1.11 yrs) ≈ ₱167 Claimable overtime ≈ ₱2 667
8. Penalties on the employer
Violation | Liability |
---|---|
Failure to pay OT/Night-shift | 1) Mandated pay + interest; 2) Optional criminal wage-fixing case under Art. 303 |
Non-remittance of SSS | 3 % monthly penalty + double contribution, personal criminal liability of responsible officers (Sec. 28[e]) |
9. Frequently-asked questions
- Q: Can I still claim if I signed my clearance? A: Yes—statutory claims are not barred by clearance or quitclaim unless paid.
- Q: Does it matter that I was a “team leader”? A: Only if you possessed hiring/firing authority and formulated management policies; mere supervisory titles do not exempt you.
- Q: Will claiming SSS arrears delay my future loan or benefit? A: No. SSS processes benefits based on posted contributions; your complaint merely updates the ledger.
- Q: Is WhatsApp chat admissible? A: Yes, if authenticated under Rule 11, Rules on Electronic Evidence (2019).
10. Take-away
The right to overtime pay and full SSS coverage survives resignation, clearance, and even a notarized quitclaim. Act within 3 years for wage claims and 20 years for SSS delinquencies. Start with a written demand, proceed to DOLE-SEnA or SSS Branch, and escalate to NLRC or criminal prosecution when needed.
Disclaimer: This article is for informational purposes only and does not substitute for individualized legal advice. Consult a Philippine labor-law practitioner for case-specific guidance.