Case: Maternity Children’s Hospital v.

SOLE
Topic: Labor Law Defined, Classes of Labor Law

DOCTRINE: Labor Standards refer to the minimum requirements prescribed by

existing laws, rules and regulations relating to wages, hours of work, cost of living,
allowance and other monetary and welfare benefits, including occupational, safety,
and health standards

PLAINTIFFS DEFENDANTS

10 employees of Maternity Maternity’s Children Hospital

ACTION SEQUENCE: Complaint (underpayment) with Regional Director; RD

granted; MOLE reversed;

FACTS
 Petitioner Maternity Children’s Hospital is a semi-governmental hospital
which derives its finances from the club itself as well as from paying patients
averaging 130 per month. It is also partly subsidized by the PCSO and the
Cagayan De Oro government.
 10 employees of the petitioner employed in different positions filed a
complaint with the Office of the Regional Director (RD) of Labor and
Employment (Region X) for underpayment of their salaries and ECOLAs
(Emergency Cost of Living Allowance).
 Labor Standard and Welfare Officers submitted their report confirming that
there was underpayment of wages and ECOLAs of all the employees by the
petitioner. Based on the inspection report and recommendation, the Regional
Director issued an Order directing the payment of P723, 888.58 representing
underpayment of salaries and ECOLAs to all petitioner’s employees.
 Petitioner appealed from this Order to the Minister of Labor and Employment
who rendered a decision modifying the said Order in that deficiency wages
and ECOLAs should be computed only from May 23, 1983 to May 23, 1986

ISSUE: Whether the Regional Director had jurisdiction over the case and if some the
extent of coverage of any award that should be forthcoming, arising from his
visitorial and enforcement powers under Article 128 of the Labor Code.

RULING: Yes, RD had jurisdiction over the case albeit such contention.

DISPOSITIVE PORTION
 A Regional Director exercises both visitorial and enforcement power over labor standard
cases, and is therefore empowered to adjudicate money claims, provided that there still
 exists an employer-employee relationship.
 Labor Standards refer to the minimum requirements prescribed by existing laws, rules
and regulations relating to wages, hours of work, cost of living, allowance and other
monetary and welfare benefits, including occupational, safety, and health standards.
 As to the extent of the employees to be awarded, it must be noted that employees who
signed the complaint as well as those who did not sign the complaint, but were still
connected with the hospital at the time the complaint was filed, should be included in
the award. This is in accordance with Social Justice. Wherein it has been always been the
intention of labor authorities to provide workers immediate access to their rights and
benefits without being inconvenienced by arbitration and litigation – arbitration/ ligiation
process proved to be financially burdensome to workers

NOTES