Académique Documents
Professionnel Documents
Culture Documents
159
SECOND DIVISION
[ G.R. NO. 146572, January 14, 2005 ]
CIRINEO BOWLING PLAZA, INC., PETITIONER, VS. GERRY SENSING,
BELEN FERNANDEZ, MIRASOL DIAZ, MARGARITA ABRIL, DARIO
BENITEZ, MANUEL BENITEZ, RONILLO TANDOC, EDGAR DIZON,
JOVELYN QUINTO, KAREN REMORAN, JENIFFER RINGOR,
DEPARTMENT OF LABOR AND EMPLOYMENT AND COURT OF
APPEALS, RESPONDENTS.
DECISION
AUSTRIA-MARTINEZ, J.:
Before us is a special civil action for certiorari filed by petitioner assailing
the Resolution[1] dated August 31, 2000 of the Court of Appeals (CA) which
dismissed petitioners petition for certiorari; and the Resolution[2] dated
November 10, 2000 which denied petitioners motion for reconsideration.
The antecedent facts are as follows:
On November 27, 1995, Eligio Paolo, Jr., an employee of petitioner, filed a
letter complaint with the Department of Labor and Employment (DOLE for
short), Dagupan District Office, Dagupan City, requesting for the
inspection/investigation of petitioner for various labor law violations like
underpayment of wages, 13th month pay, non-payment of rest day pay,
overtime pay, holiday pay and service incentive leave pay.[3] Pursuant to the
visitorial and enforcement powers of the Secretary of Labor and
Employment, his duly authorized representative under Article 128 of the
Labor Code, as amended, conducted inspections on petitioners
establishment the following day. In his inspection report, [4] Labor and
Employment Officer III, Crisanto Rey Dingle, found that petitioner has
thirteen[5] employees and had committed the following violations:
underpayment of minimum wage, 13th month pay, holiday premiums,
overtime premiums, and non-payment of rest day. The findings in the
inspection report were explained to petitioners officer-in-charge, Ma. Fe
Boquiren, who signed the same.
The first hearing of the case was scheduled on December 27, 1995, but
petitioner failed to appear, thus, the hearing was reset to January 10,
1996. On the date set, Boquiren, as petitioners representative, appeared
with the information that petitioners President/General Manager Luisito
Cirineo was sick and confined in a hospital.
On the January 19, 1996 hearing, Cirineo appeared and asked for more
time to settle with his employees. The case was again set on January 26,
1996 but Cirineo failed to appear.
On April 22, 1996, an Order[6] was issued by the DOLE Regional Office, the
dispositive portion of which reads:
WHEREFORE, premises considered and considering further that the
amount computed constitutes part of the lawful remunerations of thirteen
affected employees, respondent is hereby ordered to pay them the total
amount of THREE HUNDRED SEVENTY SEVEN THOUSAND FIVE
HUNDRED PESOS AND 58/100. (P377,500.58), representing their
unpaid/underpaid wages, 13th month pay, holiday premiums, rest day pay
and overtime premiums distributed as follows:
NAME
1. Gerry Sensing
2. Belen Fernandez
3. Mirasol Diaz
4. Margarita Abril
5. Lamberto Solano
6. Dario Benitez
7. Manuel Benitez
8. Ronillo Tandoc
9. Edgar Dizon
10. Jovelyn Quinto
11. Karen Remoran
12. Jennifer Ringor
13. Eligio Paolo, Jr.
TOTAL --------------------
AMOUNT
P 9,505.68
14,258.52
12,458.52
31,557.12
53,151.12
53,151.12
53,151.12
36,951.12
14,637.78
22,769.88
21,387.78
37,304.82
12,810.00
373,094.58
and to submit the proof of payment to this Office within ten (10) days from
receipt hereof. Otherwise, a Writ of Execution will be issued to enforce this
order.
to the NLRC.
II.
III.
IV.
V.
dismissed the appeal and affirmed the order dated February 7, 1997 of the
DOLE Regional Director with the following disquisitions:
In support thereof, respondent alleges that it had only eight (8) employees
as the other claimants of labor benefits . . . are employees of Fe
Esperanza Octaviano doing business under the name and style
Esperanza Seafoods Kitchenette. Thus, it points out that:
...
Hence, under the Labor Code, Article 94 thereof the employees of the
appellant are not entitled to holiday pay and holiday premium pay.
Under Republic Act 6727 and its Implementing Rules, Chapter 1, Section 1
thereof, establishments employing less than ten (10) employees are
exempted from compliance with minimum wage rates. Hence, the wages
given to respondents do not constitute under payments. As to their claims
for overtime pay and rest day pay, there is no proof that respondents
rendered overtime or restday work, hence they are not entitled to the same.
(Cagampanan vs. NLRC, 195 SCRA 533)
We do not agree.
The records show that during the summary investigation respondent never
refuted the findings of the labor inspector particularly the identity of the
thirteen (13) concerned employees nor raised the issue of separate juridical
personalities of respondent Cirineo and Esperanza Seafoods Kitchenette.
Thus, in the Order dated 07 February 1997, the Regional Director ruled:
. . . Respondents actuation during and after the summary investigation
disclosed that it was bent on settling all the claims of the claimantawardees and never did it refute the identity of the concerned awardees.
Otherwise, respondent could have easily raised the issue by admitting
evidence such as payrolls, daily time records and any similar document
which could have pinpointed the real employer of the claimants.
...
The documents submitted to this Office by respondent could be interpreted
as a desperate attempt to mislead this Office and to evade liability.
On the issue of jurisdiction, we rule that the Regional Director has
jurisdiction over the instant case.
The old rule limiting the jurisdiction of the Secretary of Labor and
Employment or his duly authorized representatives to money claims not
exceeding P5,000.00 has been repealed by the passage of R.A. No. 7730,
Section 1 of which reads:
Section 1. Paragraph (b) of Article 128 of the Labor Code. As amended, is
hereby further amended to read as follows:
Art. 128. Visitorial and Enforcement Power.
...
(b) Notwithstanding the provisions of Articles 129 and 217 of this Code to
the contrary, and in cases where the relationship of employer-employee still
exists, the Secretary of Labor and Employment or his duly authorized
representative shall have the power to issue compliance orders to give
effect to the labor standards provisions of this Code and other labor
legislation based on the finding of the labor employment and enforcement
officer or industrial safety engineers made in the course of inspection. The
Secretary or his duly authorized representatives shall issue writs of
execution to the appropriate authority for the enforcement of their orders,
except in cases where the employer contests the findings of the labor
employment and enforcement officer and raises issues supported by
documentary proofs which were not considered in the course of inspection.
Pursuant to R.A. 7730, the jurisdictional limitations imposed by Article 129
on the visitorial and enforcement powers of this Office under Article 128 of
the Labor Code, have been repealed. The phrase notwithstanding the
provision of Articles 129 and 217 of the Labor Code to the contrary, erases
all doubts as to the amendatory nature of R.A. No. 7730. The amendment,
in effect, overturned the rulings in the Aboitiz and Servandos cases insofar
as the restrictive effect of Article 129 on the use of the power under Article
128 is concerned.
Indeed, the Supreme Court in Nazareno Furniture vs. Hon. Secretary of
Labor and Employment and Tomas Mendoza (G.R. No. 128546, April 30,
1997), already ruled that:
Petitioner is incorrect in stating that R.A. 7730 did not specifically amend
Art. 217 of the Labor Code. In fact, it is plainly stated that the amendment
refuted the findings of the labor inspector as to the identity of the thirteen
employees nor raised the issue of separate juridical personalities of
petitioner Cirineo and Esperanza Seafoods Kitchenette during the
investigation and on the hearings conducted.
Likewise, we sustain the jurisdiction of the DOLE Regional Director. The
visitorial and enforcement powers of the DOLE Regional Director to order
and enforce compliance with labor standard laws can be exercised even
where the individual claim exceeds P5,000.00. [21] In Allied Investigation
Bureau, Inc. vs. Secretary of Labor and Employment,[22] we elucidated:
Petitioner argues that the power to adjudicate money claims belongs to the
Labor Arbiter who has exclusive jurisdiction over employees claims where
the aggregate amount of the claims of each employee exceeds P5,000.00;
and, that the Labor Arbiter has jurisdiction over all other claims arising from
employer-employee relations, including those of persons in domestic or
household service, involving an amount exceeding five thousand pesos
(P5,000.00), whether or not accompanied with a claim for reinstatement.
Petitioners arguments are untenable.
While it is true that under Articles 129 and 217 of the Labor Code, the
Labor Arbiter has jurisdiction to hear and decide cases where the
aggregate money claims of each employee exceeds P5,000.00, said
provisions of law do not contemplate nor cover the visitorial and
enforcement powers of the Secretary of Labor or his duly authorized
representatives.
Rather, said powers are defined and set forth in Article 128 of the Labor
Code (as amended by R.A. No. 7730) thus:
Art. 128. Visitorial and enforcement power.
(a) The Secretary of Labor or his duly authorized representatives, including
labor regulation officers, shall have access to employers records and
premises at any time of the day or night whenever work is being
undertaken therein, and the right to copy therefrom, to question any
employee and investigate any fact, condition or matter which may be
necessary to determine violations or which may aid in the enforcement of
this Code and of any labor law, wage order or rules and regulations issued
pursuant thereto.
(b) Notwithstanding the provisions of Articles 129 and 217 of this Code to
the contrary, and in cases where the relationship of employer-employee
exists, the Secretary of Labor and Employment or his duly authorized
representatives shall have the power to issue compliance orders to give
effect to the labor standards provisions of this Code and other labor
legislation based on the findings of labor employment and enforcement
officers or industrial safety engineers made in the course of inspection.
The Secretary or his duly authorized representatives shall issue writs of
execution to the appropriate authority for the enforcement of their orders,
except in cases where the employer contests the finding of the labor
employment and enforcement officer and raises issues supported by
documentary proofs which were not considered in the course of inspection.
An order issued by the duly authorized representative of the Secretary of
Labor and Employment under this article may be appealed to the latter. In
case said order involved a monetary award, an appeal by the employer
may be perfected only upon the posting of a cash or surety bond issued by
a reputable bonding company duly accredited by the Secretary of Labor
and Employment in the amount equivalent to the monetary award in the
order appealed from.
...
The aforequoted provision explicitly excludes from its coverage Articles 129
and 217 of the Labor Code by the phrase (N)otwithstanding the provisions
of Articles 129 and 217 of this Code to the contrary . . . thereby retaining
and further strengthening the power of the Secretary of Labor or his duly
authorized representative to issue compliance orders to give effect to the
labor standards provisions of said Code and other labor legislation based
on the findings of labor employment and enforcement officers or industrial
safety engineers made in the course of inspection.
In the case at bar, the Office of respondent Regional Director conducted
inspection visits at petitioners establishment on February 9 and 14, 1995 in
accordance with the above-mentioned provision of law. In the course of
said inspection, several violations of the labor standard provisions of the
Labor Code were discovered and reported by Senior Labor Enforcement
Officer Eduvigis A. Acero in his Notice of Inspection Results. It was on the
bases of the aforesaid findings (which petitioner did not contest), that
respondent Regional Director issued the assailed Order for petitioner to
pay private respondents the respective wage differentials due them.
compliance with the provisions of the Code with respect to the payment of
proper wages. Hence, petitioners claim of lack of jurisdiction on the part of
public respondent is bereft of merit.[23]
WHEREFORE, the instant petition is DISMISSED for lack of merit.
SO ORDERED.
Puno, (Chairman), Callejo, Sr., Tinga, and Chico-Nazario, JJ., concur.
[1]
[3]
CA Records, p. 118.
[4]
Rollo, p. 54.
[5]
[6]
[7]
[8]
[9]
Id., p. 58.
[10]
[11]
[12]
Id., p. 101.
[13]
[14]
[15]
Id., p. 121.
[16]
[17]
Id., p. 127.
[18]
[19]
[20]
[21]
[22]
[23]