Labor and Employment Secretary Rosalinda Dimapilis-Baldoz yesterday said the Social Security System and the DOLE have entered into a Memorandum of Agreement on Information Sharing that will lead to improved compliance by employers’ with their obligation to enroll their workers for coverage and to remit their contributions.


Baldoz said the MOA provides that the DOLE shall endorse to SSS non-compliant employers for appropriate action.


“This just formalizes what the DOLE has been doing,” said Baldoz, saying that DOLE Regional Directors have been furnishing their SSS counterparts of the findings of Labor Laws Compliance Officers relative to non-compliant establishments.


Since the full implementation of the DOLE’s Labor Laws Compliance System in 2014, the Department has covered a total of 109,826 establishments.


“We found 98,355 establishments to be compliant with the SSS Law, posting a compliance rate of 89.6 percent. The DOLE and the SSS aims to achieve 100 percent compliance with this social legislation,” Secretary Baldoz said.


Later, according to Baldoz the DOLE hopes to link the Management Information System of LLCS with SSS database for easy checking of employer’s compliance.


“The DOLE is really mindful that our workers have decent jobs and decent working conditions and we are partnering with relevant agencies and improving linkages to deliver better service,” Secretary Baldoz said.


Developed in 2013, the LLCS signaled an institutional policy shift in the DOLE’s enforcement mechanism from purely regulatory to progressively developmental. The LLCS seeks to foster voluntary compliance with labor laws and regulations, including social welfare legislations. With tripartite support, it was issued as Department Order No. 131, Series of 2013.


Last year, the Philippines received a US$1 million (P44.6 million) technical assistance grant from the United States’ Department of Labor (USDOL), through the International Labor Organization’s (ILO) Labor Inspection Project, to be utilized for the support of LLCS activities. The ILO commended the Philippines for being the only country with a “transparent and unique technology-based system.”


ASEAN member country representatives who attended the 4th ASEAN Inspection Conference in 2014, have also hailed the new LLCS, saying: “The new LLCS is one of its kind and the Philippines is the first to adopt the innovative approach for improving compliance with labor laws.”


Under the LLCS, non-compliant employers are given 20 days to institute and implement actions to correct the noted deficiencies. “For social legislation, non-compliant employers may still enroll their workers and/or pay their contributions during the conferences subsequent to the assessment activity. Otherwise, they are endorsed to the SSS for its appropriate action,” Secretary Baldoz added.





[1] << In 2015, out of the 44525 establishments covered under the Labor Laws Compliance System (LLCS), 38885 were found compliant with the SSS law or 87.3% compliance rate.


In 2014, out of the 65301 establishments covered under the Labor Laws Compliance System (LLCS), 59470 were found compliant with the SSS law or 91% compliance rate. >>


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