Ambassador Hotel vs. SSS [G.R. No. 194137] Case Digest

 

Ambassador Hotel vs. SSS

G.R. No. 194137

G-one T. Paisones

 

 

Facts:

SSS filed a complaint with the City Prosecutor's Office of Quezon City against Ambassador Hotel and its officers for non-remittance of SSS contributions and penalty liabilities for the period from June 1999 to March 2001.  Yoland Chan (President of the Hotel) and other officers were charged for the violation of Section 22(a), in relation to Section 22(d) and Section 28(e) of Republic Act (R.A.) No. 1161, as amended by R.A. No. 8282. Only Yolanda was arrested. Upon arraignment, she pleaded not guilty.

RTC held that Yolanda could not be held criminally liable for the non-payment of SSS contributions because she was not performing the duties of the hotel's president from June 1999 to March 2001. The RTC, however, ruled that the acquittal of Yolanda did not absolve Ambassador Hotel from its civil liabilities.

 

Issue:

Whether or not Ambassador Hotel should pay its civil liabilities (including non-remittance of SSS contributions) even their president (Yolanda) acquitted from the said criminal case.

 

Held:

Yes.

 

Ratio:

The Social Security System is a government agency imbued with a salutary purpose to carry out the policy of the State to establish, develop, promote and perfect a sound and viable tax-exempt social security system suitable to the needs of the people throughout the Philippines which shall promote social justice and provide meaningful protection to members and their beneficiaries against the hazards of disability, sickness, maternity, old- age, death and other contingencies resulting in loss of income or financial burden.

Under Section 8(c) of R.A. No. 8282, an employer is defined as "any person, natural or juridical, domestic or foreign, who carries on in the Philippines any trade, business, industry, undertaking, or activity of any kind and uses the services of another person who is under his orders as regards the employment, except the Government and any of its political subdivisions, branches or instrumentalities, including corporations owned or controlled by the Government." Ambassador Hotel, as a juridical entity, is still bound by the provisions of R.A. No. 8282. Section 22 (a) thereof states:

Remittance of Contributions. (a) The contributions imposed in the preceding section shall be remitted to the SSS within the first ten (10) days of each calendar month following the month for which they are applicable or within such time as the Commission may prescribe. Every employer required to deduct and to remit such contributions shall be liable for their payment and if any contribution is not paid to the SSS as herein prescribed, he shall pay besides the contribution a penalty thereon of three percent (3%) per month from the date the contribution falls due until paid. If deemed expedient and advisable by the Commission, the collection and remittance of contributions shall be made quarterly or semiannually in advance, the contributions payable by the employees to be advanced by their respective employers: Provided, That upon separation of an employee, any contribution so paid in advance but not due shall be credited or refunded to his employer.