RULES ON THE DISPOSITION OF LABOR STANDARDS CASES IN THE REGIONAL OFFICES.  
 

Section 1.Title of the Rules. – These rules shall be known as the "Rules on the Disposition of Labor Standards Cases in the Regional Offices."

Section 2.Enforcement authority. – The statutory basis of the authority of the Regional Offices to administer and enforce labor standards is found in Article 128 (b) of the Labor Code, as amended, which provides that:

“The provisions of Article 217 of this Code to the contrary notwithstanding and in cases where the relationship of employer-employee still exists, the Secretary of Labor and Employment or his duly authorized representatives shall have the power to order and administer, after due notice and hearing, compliance with the labor standards provisions of this Code and other labor legislations based on the findingsof labor regulations officers or industrial safety engineers made in the course of inspection, and to issue writs of execution to the appropriate authority for the enforcement of their orders, exceptin cases where the employer contests the findings of the labor regulations officer and raises issues which cannot be resolved without considering evidentiary matters that are not verifiable in the normalcourse of inspection”.

Section 3.Authorized representatives of the Secretary of Labor and Employment. – The Regional Directors shall be the duly authorized representatives of the Secretary of Laborand Employment in the administration and enforcement of labor standards within their respective territorial jurisdictions.

Section 4.Visitorial Power. – The Regional Director or their authorized representatives, 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 may aid in the enforcement of the Labor Code and of any labor law, wage order or rules and regulations issued pursuant thereto.

Section 5.Construction. – In order to carry out the objectives of the Constitution and the Labor Code and to aid the partiesin arriving at a fair, just, expeditious and economical settlement of labor disputes, these Rules shall liberally construed.

Section 6.Suppletory application of Rules of Court. – In the absence of any applicable provisions of the Rules of Court may be applied in a suppletory character.

Section 7.Labor Standards; definitions. – As used in these Rules “labor standards” shall refer to the Minimum requirements prescribed by existing laws, rules and regulations and other issuances relating to wages, hours of work, cost of living allowances and other monetary and welfarebenefits, including those set by occupational safety and health standards.

Section 1.Title and caption. – The title and caption of complaints involving money claims brought to the Regional Office arising from alleged violations of labor standards shall substantially comply with the form prescribed by the Regional Office.

Section 2. Complaint inspection. – All such complaints shall immediately be forwarded to the Regional Director who shall refer the case to the appropriate unit in the Regional Office for assignment to a Labor Standards and Welfare Officer(LSWO) for field inspection.When the field inspection does not produce the desired results, the Regional Director shall summon the parties for summary investigation to expedite the disposition of the case.The investigation shall be concluded within fifteen (15) calendar days from the date of the first hearing and a proposed Order disposing of the case shall be submitted to the Regional Director within three (3) calendar days from the conclusion of the investigation.

Section 3.Complaints where no employer-employee relationship actually exists. – Where employer-employee relationship no longer exists by reason of the fact that it has already been severed, claims for payment of monetary benefits fall within the exclusive and original jurisdiction of the labor arbiters.Accordingly, if on the face of the complaint, it can be ascertained that employer-employee relationship no longer exists, the case, whether or not accompanied by an allegations of illegal dismissal, shall immediately be endorsed by the Regional Director to the appropriateBranch of the National Labor Relations Commission (NLRC).

Section 4.Service of notices and orders. – Notices and copies of orders shall be served onthe parties or their duly authorized representatives at their last known address or, if they are represented by counsel, through the latter.

In the case of personal service, the process server shall submit his return within seventy-two (72) hours from the date of service stating legibly in the return his name, the mode of service, the names of the authorized persons served and the date of actual receipt of the document.If no service was effected, the serving officer shall state in the return the reason therefor.The return shall from part of the records of the case.

Section 5.Inspection report. – Where the case is assigned to a LSWO for inspection, thelatter shall conductthe necessary investigation and submit a reportthereof to the Regional Director, through the Chief of the Labor Standards Enforcement Division (LSED), within twenty-four (24) hours after the investigation or within a reasonable period as may determined by the Regional Director.The report shall specify the violations discovered, if any, together with his recommendation and computation of the amount due each worker.

Section 6.Coverage of complaint inspection. – A complaint inspection shall not be limited to the specific allegations or violations raised by the complainants/workers but shall be a thorough inquiry into and verification of the compliance by employer with existing labor standards and shall cover all workers similarly situated.

Section 7.Restitution. –

(a)Where the employer has agreedto make thenecessary restitutions of violations discovered in the course of inspection, such restitutions may be effected at the plant-level within five (5) calendar days from receipt of the inspection results by the employer or his authorized representative;

(b)Plant-level restitutions may be effected for money claims not exceeding Fifty Thousand Pesos (P50,000.00).A report of the restitutions shall be immediately submitted to the Regional Director for verification and confirmation.In case the Regional Director finds that the restitutions effected at the plant-level are not in order, he may direct the LSED Chief to check the correctness of the restitution report;

(c)Restitutions in excess of the aforementioned amount shall be effected at the Regional Office or at the worksite subject to the prior approval of the Regional Director.

Section 8.Compromise Agreement. – Should the parties arrive at an agreement as to the whole or part of the dispute, said agreement shall reduced in writing and signed by the parties in the presence of the Regional Director or his duly authorized representative.

Section 9.Unclaimed amount. – The Regional Director shall hold in trust under a special account in behalf of the workers.Any amount not claimed or collected by the workers a period of two (2) years from the time of restitution shall be held as s special fund of the Department of Labor and Employment to be used exclusively in the administration and enforcement of labor laws provided in Article 129 of the Labor Code.

Section 10.Follow-up inspection. – After the employer has submitted proof of compliance with reported violations, follow-up verification inspection shall forthwith be conducted if restitution is effected in the absence of the of the LSWO.

Section 11.Hearing. – Where no proof of compliance is submitted by the employer after seven (7) calendar days from receipt of the inspection results, the Regional Director shall summon the employer and the complainants to a summary investigation.In regular routine inspection cases however, such investigation shall be conducted where no complete field investigation shall be conducted where no completefield investigation can be made for reasons attributableto the fault of the employer or his representatives, such as those but not limited to instances when the field inspections are denied to instances when thefield inspectors are denied access to the premises, employment records, or workers, of the employer.

Section 12.Nature of proceedings. –The proceedings before the Regional Office shall be summary and non-litigious in nature.Subject to the requirements of due process, the technicalities of law and procedure and the rules governing admissibility and sufficiency of evidence obtaining in the courts of law shall not strictly apply thereto.The Regional Office may, however, avail itself of all reasonable means to ascertain the facts or the controversy speedily and objectively,including ocular inspection and examination of well informed persons.Substantial evidence, whenever necessary shall be sufficient to supporta decision or order.

Section 13.Prohibited acts. – It shall be unlawful for any person or entity to obstruct , impede, delay or otherwise render ineffectivethe Order of the Secretary of Labor and Employment or this duly authorized representatives issuedpursuant to the authority granted under these Rules,and no inferior court or entity shall issue temporary or permanent injunction or restraining order or otherwise assume jurisdiction over any case involvingthe enforcement orders issued in accordance with these Rules.

The foregoing notwithstanding, the responsible party, be it the worker, union, employer, or the authorized representative of any of the foregoing shall be subject to administrative sanctions as determined by the Secretary or the Regional Director.

Section 14.Failure to appear. -Where the employer or the complainant fails or refuses to appear during the investigation, despite proper notice, for two (2) consecutive hearings without justifiable reasons, the hearing officer may recommend to the Regional Director the issuance of a compliance order based on the evidence at hand or an order of dismissal of the complaint, as the case may be.

Section 15.Postponement of hearing. – The parties and their counsel or representative s appearing before the Regional Office shall be prepared for continuous hearings.Postponements shall be allowed only upon meritorious groundsand shall be limited to not more than two (2) postponements but in no case to exceed a total of ten (10) calendar days.In the event of such postponements, the Regional Office shall set two or more dates of hearing in advance.

Section 16.Records of proceedings. – The proceedings before the Regional Office need not be recorded by stenographers.The hearing officer shall, however, make a written summary of the proceedings including the substance of the positions of the parties and the evidence presented which shall for part of the records of the case.The written summary shall be signed by the parties.

Section 17.Motion to dismiss. – Any motion to dismiss a complaint on the grounds that the Regional Office has no jurisdiction over the complaint or thatthe cause of action is barred by prior judgment or prescription, shall be immediately acted upon by the Regional Director if the facts strongly indicate dismissal.Any motion to dismiss with no such indication shall disposed of only in the final determination of the case on the merits.

Section 18.Compliance order. – If the Regional Director finds after hearing that violations have been committed, he shall issue an Order directing the employer to restitute other corrective measures within ten (10) calendar days upon receipt of the Order and to submitproof of compliance.The Order shall specify the amount due each worker and shall include the computations on which the Order was based.

Section 19.Motion for reconsideration. – The aggrieved party may file a motion for reconsideration of the Order of the Regional Office within seven (7) calendar days from receipt by him of a copy of said Order.

The Regional Director shall resolve the motion for reconsideration within ten (10) calendar days from receipt thereof. A motion for reconsideration filed beyond the seven-day reglementary period shall be treated as an appeal if filed within the ten-day reglementary period shall be treated as an appeal if filed within the ten-day reglementary period for appeal, but subject to the requirements for the perfection of an appeal.

No second motion for reconsideration shall be entertained in any case.

Section 20.Disposition of routine inspection cases. –The disposition of regular inspection cases shall substantially conform with the provisions of this Rules.

Section 1.Contested cases. –

(a) In cases where the employercontests the findings of the Labor Standards and Welfare Officersand the issues cannotbe resolved without considering evidentiary matters that are not verifiablein the normal course of inspection, the Regional Director shall endorsesuch case to the appropriate Arbitration Branch of the National Labor Relations Commission;

(b) The employer shall raise such objections during the hearing of the case or at any time after receipt of the noticeof inspection results.The issue of whether or not the case shall be endorsed to the NLRC shall be resolved by the Regional Directorin the final disposition of the case.

Section 2.Labor Standards and Welfare Officers (LSWOs). – As witnesses in the cases that have been endorsed to the NLRC, the LSWOs who participatedin the investigation shall make themselves available as witnesses in the proceedings before theLabor Arbiters concerned.

Section 1.Appeal. – The order of the Regional Director shall be final and executory unless appealed to the Secretary of Labor and Employment within ten (10) calendar daysfrom receipt thereof.

Section 2.Grounds for appeal. – The aggrieved party may appeal to the Secretary the Order of the Regional Directoron any of the following grounds:

(a) there is a prima facie evidence of abuse of discretion on the part of the Regional Director;

(b) the Order was secured through fraud, coercion or graft and corruption;

(c) the appeal is made purely on questions of law; and

(d) serious errors in the findings of facts were committed which, if not corrected, would cause grave irreparable damageor injury to the appellant.

Section 3.Where to file. – The appeal shall be filed in five (5) legibly typewritten copies with the Regional Office which issued the Order.Subject to the immediately succeeding section, the appeal shall not be deemed perfected if it is filed with any other office or entity.

Section 4. Requisites of appeal. ­–

(a) The appeal shall be filed within the reglementary period as provide in Section 1 of this Rule.It shall be under accompanied by a Memorandum of Appeal which shall state the dateappellant received the Order and the grounds relied upon arguments in support thereof;

(b) The appellee may file with the Regional Office his reply or opposition to the appeal within ten (10) calendar daysfrom receipt thereof.Failure on the partof the appellee to file his reply or opposition within the said period shall be construed as a waiver on his part to file the same.

Section 5.Transmittal of records on appeal. – Within three (3) calendar days after the filing of the reply or opposition of the appellee or after the expiration of the period to file the same, the entire records of the case, together with the Memorandum of Appeal, shall be transmitted by the Regional Office concerned to the Office of the Secretary of Labor and Employment.

Section 6.Records of case. –The records of the case shall contain, among others, a complete narration of what transpired in the conference/hearing in the form of minutes including all original pleadings, notices, proof of service of the decision or order and other papers which shall all be consecutively numbered.Only records of cases on appeal, properly numbered with complete minutes, shall be accepted by the Office of the Secretary of Labor and Employment.

Section 7.Frivolous/dilatory appeals. – To discouragefrivolous or dilatory appeals, the Secretary of Labor and Employment may impose a reasonable penalty, including fine or censure, upon the erring parties.

Section 1. Issuance of writ. –

(a) If no appeal is perfected within the reglementary period as provided in Rule V of these Rules, as evidenced by proofof service, the Regional Director shall, motu proprio or upon proper motion by any interested party, issue the writ of execution which shall be served by the Regional Sheriff.In the enforcement of the writ of execution, the assistance of the law enforcement authorities may be sought;

(b) A writ of execution may be recalled subsequentto its issuance, if it is shown that an appeal has been perfected in accordance with these Rules.

Section 2.Execution before perfection of appeal or pending appeal. - During the period of appeal and before an appeal is perfected, or during the pendency of an appeal, execution may, upon proper motion, also issue where it is shown that compliance with the order of the Regional Director cannot be secured unless this is done.The writ may be stayed at the instance of a losing party by the filing of a supersedeas bond in an amount which is adequate to protect the interests of the prevailing party, subject to the approval of the Regional Director before the perfection of the appeal, or Secretary of Labor and Employment during the pendency of the appeal.

Section 3.Execution after motion for reconsideration. - Where a motion for Reconsideration of the compliance order is filed ion accordance with Rule II of these Rules, the compliance order shall be executory after ten (10) calendar days from receipt of the resolution of such Motion.

Section 4.Enforcement of writ. - In enforcing a writ of execution, the sheriff or other office acting as such shall be guidedby the provisions of Rule 39 of the Rules of Court or the Sheriff’s Manual and may avail of such other means as may be necessary in the execution thereof.

Section 5.Finality of decisions of the Secretary of Labor and Employment. - The decisions, orders or resolutions of the Secretary of Labor and Employment shall become final and executory after ten (10) calendar days from receipt thereof.Within three (3) calendar days from receipts of the records of the case, the Regional Director shall issue a writ of execution to enforce the order or decision of the Secretary.

The filing of petition for certiorari beforethe Supreme Court shall not stay the execution of the order or decision unless the aggrieved party secures a temporary restraining order from the court within fifteen (15) calendar days from the date of finality of the order or decision or posts a supersedeas bond in an amount which is adequate to protect the interests of the prevailing party subject to the approval of the Secretary.

Section 1.Inspection report. -In occupational safety and health inspection, the LSWOshall immediately or within twenty-four (24) hours after the inspection/investigation submit his report to the Regional Director thru the LSED Chief specifying the violations discovered and his recommendations, except when the submission of a report within the period cannot be made for reasons beyond the control of the LSWO.

Section 2.Correction in imminent danger cases. - Where the employer is willing to make the necessary rectification, the same may be effected at the plant-level within twenty-four (24) hours in cases where the conditions obtaining in the workplace pose grave and imminent dangerto the lives and health of the workers and/or property of the employer, e.g., boiler tube leakage; defective safety valves; pressure gauges and water column; weak machinery foundations; and other analogous circumstances.

Section 3.Non-imminent danger cases. - Where the conditions is not of the types falling under Section 2 of this Rule, e.g., poor ventilation, housekeeping, inadequate personnel protective equipment and other analogous circumstances. the LSWO shall determine reasonable periods of compliance depending on the gravity of the hazards needing corrections or the period neededto come into compliance safety and health standards.

Section 4.Work Stoppage. -

(a) The LSWO shall include in his report recommendation for the issuance of an Order of stoppage of work or suspension of operation of any unit or department or the establishment if there is exist in the workplace a condition that poses grave and imminent danger to the health and safety of the workers which cannot be corrected.Even before he submits his recommendation to the Regional Director, the LSWO shall notify and confer with the employer regarding the results of the inspection and recommend the institution of remedial measures;

(b) The Regional Director may, upon the recommendation of the LSWO and the LSED Chief, immediately issue the appropriate Order of stoppage or suspension of operation together with the notice of hearing.

Section 5.Hearing. -Immediately or within twenty-four (24) hoursfrom the issuance of the Order of stoppage of operation or suspension, a hearing shall be conducted with the assistance of the LSWOconcerned to determine whether the Order for the stoppage of work or suspension shall be lifted or not.The proceedings shall be terminated within seventy-two (72) hoursand copy of such Order or resolution shall be immediately furnished the Secretary of Labor and Employment.In case the violation is attributable to the fault of the employer, the latter shall pay his workers all the monetary benefits to which they are entitled during the period of such stoppage or suspension of work.

Section 6.Review by the Secretary. -

(a) The Secretary at his own initiative or upon therequest of the employer and/or employee, may review the order of the Regional Director which shall be immediately final and executory unless stayed by the Secretary upon posting by the employer of a reasonable cash or performance bond as fixed by the Regional Director;

(b) In aid of his review power, the Secretary may direct the Bureau of Working Conditions to evaluate the findings or order of the Regional Director.The Order of the Secretary shall be final and executory.

Section 7.Other measures to secure compliance. - The Regional Director, in addition to measures available to him to secure compliance with labor standards, particularly those involving technical safety and general occupational safety standards, may furnish a copy of the inspection findings to the insurance company of the employer, the power company, the municipal authorities which issue business licenses/permits, the labor union in the enterprise concerned, and to other government offices to further persuade voluntarily compliance with existing labor standards.

Section 1.Final compliance order. - Where a compliance order issued by a Regional Director on a case has become final, no entity or official of the Department shall entertain or re-open such case for the purposeof re-litigating the same case.

Section 2.Repeal of prior inconsistent issuances. - The provisions of existing rules, regulations, policy instructions, and other issuances which are inconsistent with these Rules are hereby repealed or amended accordingly.

16 September 1987.

(Sgd.) FRANKLIN M. DRILON
Secretary