Republic of the
Supreme Court
BAY HAVEN, INC., JOHNNY T. CO, G.R. No. 160859
and VIVIAN TE-FERNANDEZ,
Petitioners,
- versus - Present:
FLORENTINO ABUAN, JOSELITO YNARES-SANTIAGO, J.
RAZON, JERRY ASENSE, HERCULES Chairperson
RICAFUENTE, MARIO GURAY, AUSTRIA-MARTINEZ,
ROLANDO NAELGA, JUAN VILLARUZ, CHICO-NAZARIO,
MARIO
MOCORRO, CALPITO MENDOLES, REYES, JJ.
RENE CORALES, FRANCISCO
ABENTAJADO, BONNIE ESPAÑOLA,
ERNESTO DE JESUS and RODRIGO
RUZGAL, Promulgated:
Respondents. July
30, 2008
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D E C I S I O N
AUSTRIA-MARTINEZ,
J.:
Before
us is a Petition for Review on Certiorari under Rule 45 of the Rules of
Court, seeking a reversal of the Decision[1] of the
Court of Appeals (CA) dated July 15, 2003, which denied the petition for certiorari
filed by Bay Haven, Inc., Johnny T. Co and Vivian Te-Fernandez (Te) (petitioners)
seeking the annulment of the Resolutions dated April 18, 2000 and September 19,
2001, issued by Undersecretary Jose M. Español, Jr. (DOLE Undersecretary) and Secretary Patricia Sto. Tomas (DOLE Secretary), respectively, of the
Department of Labor and Employment (DOLE), as well as
the Resolution[2]
dated
The following are the
antecedent facts.
Upon complaint of Florentino Abuan, one of herein respondents,
the DOLE, in the exercise of its visitorial,
inspection and enforcement powers, through its Regional Director for the
National Capital Region (NCR), issued an Order dated November 7, 1997
commanding petitioners to pay respondents a total of P638,187.15
corresponding to the latter's claims for underpayment as petitioners' workers.[3]
The Regional Director
based his Order on the results of the inspection conducted on
Labor Standards Law:
1.
Underpayment of minimum wage.
2.
Underpayment of thirteenth month pay.
3.
Underpayment of regular holiday pay.
4.
Underpayment of special holiday pay.
5.
Non-payment of night shift differential pay.
Occupational
Safety and Health Standards.
1. Non-registration of the firm
under Rule 1020 of OSHS.[4]
On
On
During the hearing on
Respondents Florentino Abuan, Francisco Abentajado, Mario Guray, Juan Villaruz, Jerry Asense and Joselito Razon, however, outrightly denied the validity of the payroll sheets and
quitclaims. In their Joint Affidavit
dated
On P468,444.16.[13]
On
Treating the motion for
reconsideration as an appeal, the DOLE Undersecretary issued a Resolution dated
On
Aggrieved, petitioners
filed a Petition for Certiorari under Rule 65 of the Rules of Court with
the CA, seeking to annul and set aside the April 18, 2000 Resolution and the
September 19, 2001 Resolution,[20]
docketed as CA-G.R. No. 68397.
On
Petitioners filed a
Motion for Reconsideration of the Decision which the CA denied in its
Resolution[22]
dated
Hence, herein petition
assigning the following errors of the CA:
1.
THE HONORABLE COURT OF APPEALS COMMITTED SERIOUS AND REVERSIBLE ERROR
WHEN IT UPHELD THE JURISDICTION OF THE REGIONAL DIRECTOR FOR THE NATIONAL
CAPITAL REGION OF THE DEPARTMENT OF LABOR AND EMPLOYMENT IN CASE NO.
NCR-00-9703-RI-048-SPL ENTITLED FLORENTINO ABUAN, ET AL., COMPLAINANTS VERSUS
NEW BAY HAVEN RESTAURANT, ET AL., RESPONDENTS; AND THE APPELLATE JURISDICTION
OF THE OFFICE OF THE SECRETARY OF THE DEPARTMENT OF LABOR AND EMPLOYMENT IN
CASE NO. OS-LS-005-019-099.
2.
THE HONORABLE COURT OF APPEALS COMMITTED SERIOUS AND REVERSIBLE ERROR
WHEN IT SUSTAINED THE RULING OF THE REGIONAL DIRECTOR OF DOLE-NCR AND THE
OFFICE OF THE SECRETARY OF THE DOLE WHICH DECLARED THAT RESPONDENTS CALPITO
MENDOLES AND RENE CORALES ARE EMPLOYEES OF BAY HAVEN, INC., DESPITE LACK OF
EVIDENCE TO SUPPORT THE RULING ON THE EXISTENCE OF EMPLOYER-EMPLOYEE
RELATIONSHIP.
3.
THE HONORABLE COURT OF APPEALS COMMITTED SERIOUS AND REVERSIBLE ERROR
WHEN IT UPHELD THE MONETARY AWARD OF P25,952.83
TO RESPONDENT ROLANDO NAELGA WHO WAS NOT ONE OF THOSE WHOSE CLAIMS WAS [sic] MADE
THE SUBJECT OF THE FINDINGS OF THE LABOR AND [sic] EMPLOYMENT AND ENFORCEMENT
OFFICER OF THE DEPARTMENT OF LABOR AND EMPLOYMENT.
4.
THE HONORABLE COURT OF APPEALS COMMITTED SERIOUS AND REVERSIBLE ERROR
WHEN IT SUSTAINED THE AWARD OF OVERTIME PAY DESPITE ABSENCE OF EVIDENCE TO SHOW
THAT OVERTIME WORK HAD INDEED BEEN RENDERED.
Respondents did not
file a comment on the petition, but instead filed a Memorandum[23]
simultaneous with petitioners' filing of their Memorandum.[24]
In their Memorandum,
respondents aver that the decision of the DOLE-NCR, as upheld by the DOLE
Secretary, was rendered in the exercise of its jurisdiction, specifically its visitorial and enforcement powers as conferred by law.[25] They also allege that petitioners were given
the opportunity to present evidence to refute respondents' claims, but failed
to do so.[26]
We summarize the issues
as follows: 1) whether the DOLE Secretary and her authorized representatives
have jurisdiction to impose the monetary liability against petitioners; and 2)
whether the DOLE-NCR, as upheld by the DOLE Secretary and the CA committed an
error in awarding the claims of respondents.
We deny the petition.
The DOLE Secretary and
her authorized representatives such as the DOLE-NCR Regional Director, have
jurisdiction to enforce compliance with labor
standards laws under the broad visitorial and
enforcement powers conferred by Article 128 of the Labor
Code, and expanded by R.A. No. 7730, to wit:
Art. 128. Visitorial and
Enforcement Power. -
(a) The Secretary of Labor
and Employment or his duly authorized representatives, including labor regulation officers, shall have access to employer's
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 still 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 findings 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 involves 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 and Employment in
the amount equivalent to the monetary award in the order appealed from. (Emphasis supplied)
The Court has held that the visitorial and
enforcement powers of the Secretary, exercised through his representatives,
encompass compliance with all labor standards laws
and other labor legislation, regardless of the
amount of the claims filed by workers.[27] This has been the rule since R.A. No. 7730 was
enacted on P5,000.00.
Petitioners argue,
however, that DOLE-NCR should not have taken jurisdiction of the case, because
in respondent Abuan's complaint, one of the entries reads
as follows:
Is there anything that the
Department of Labor and Employment can do to be of
further assistance to you?
[Answer:] Illegal dismissal, no
overtime, no holiday pay.[28]
Petitioners contend that the complaint's own allegation of illegal
dismissal meant that no more employer-employee relationship existed between
petitioners and respondents, depriving DOLE-NCR and the Secretary of Labor and Employment of jurisdiction to entertain the
complaint.[29]
This allegedly is a requirement under
Art. 128(b) of the Labor Code,
hereinbefore quoted.
Petitioners'
contentions are untenable. While it may
be true that as far as respondent Abuan is concerned,
his allegation of illegal dismissal had deprived the DOLE of jurisdiction as
per Art. 217 of the Labor Code,[30] the
same does not hold for the rest of the respondents, who do not claim to have
been illegally dismissed. For one,
petitioners failed to raise this matter with the Regional Director or even the
DOLE Secretary, thus, preventing the issue from being clarified.
The records also
clearly indicate that the Regional Director and the DOLE Secretary resolved the
case based only on the following violations found by the labor
inspection officer, which do not include illegal dismissal, thus:
1.
Underpayment of minimum wage.
2.
Underpayment of thirteenth month pay.
3.
Underpayment of regular holiday pay.
4.
Underpayment of special holiday pay.
5.
Non-payment of night shift differential pay.
6.
Non-registration of the firm under Rule 1020 of OSHS.
The above-mentioned violations are within the jurisdiction of the DOLE
Secretary and his representatives to address. The questioned Orders dated December 29, 1998,
April 18, 2000 and September 19, 2001 did not mention illegal dismissal, and
properly so, because there was no such finding in the inspector's report.[31] Being in the nature of
compliance orders, said orders, under Art. 128(b) of the Labor Code, are strictly based on “the findings of labor employment and enforcement officers x x x made in the course of
inspection,” and not on any complaint filed. Though a complaint may initiate the case or an
inspection, its allegations may not necessarily be upheld by the labor inspector or the Regional Director.
Moreover, Abuan's allegation of illegal dismissal was his personal
accusation, and did not necessarily apply to all the other employees. The records also do not support a contrary
finding. But Abuan's
other allegations of underpayment and other potential violations of labor laws and regulations were within the obligation of
the Regional Director to investigate, especially insofar as they affect Abuan's remaining co-workers. Under Art. 128, the
Regional Director can conduct inspections and check all violations of labor laws, and enforce compliance measures for the benefit
of all employees, without being compelled to rely on a complaint that
has been filed or its allegations. In
fact, the article is silent on whether the filing of a complaint is even
required to initiate the exercise of the inspection and enforcement powers.
Petitioners also
insinuate that they were effectively denied due process at the earlier stages
of the controversy, as they claim that during the inspection, the inspector
“did not even bother to talk to any them.”[32] Again, petitioners are raising serious,
factual allegations in this late stage of their appeal. They never mentioned this alleged infraction
in the very first motion they filed or in their Motion for Reconsideration[33] of the
Regional Director's Order dated
Petitioners themselves
cannot deny that due process was afforded them after the inspection. For one thing, their motion for
reconsideration of the Order dated
Next, petitioners argue
that the regional director was divested of jurisdiction because petitioners
contested the findings of the labor inspection
officer. This, allegedly, is in accordance
with Art. 128(b) of the Labor Code, which states:
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 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 findings of the labor
employment and enforcement officer and raises issues supported by documentary
proofs which were not considered in the course of inspection.
x x x x (Emphasis supplied)
Again, petitioners fail
to persuade. The mere disagreement by
the employer with the findings of the labor officer,
or the simple act of presenting controverting
evidence, does not automatically divest the DOLE Secretary or any of his
authorized representatives such as the regional directors, of jurisdiction to
exercise their visitorial and enforcement powers
under the Labor Code.
Under prevailing jurisprudence, the so-called
exception clause in Art. 128(b) of the Labor Code has the following elements, which must all concur
to divest the regional director of jurisdiction over workers' claims:
(a) that the employer contests the findings of
the labor regulations officer and raises issues
thereon;
(b) that in order to resolve such issues, there
is a need to examine evidentiary matters; and
(c) that such matters are not verifiable in the
normal course of inspection.[37]
Thus, in SSK Parts Corporation v. Camas,[38] in
which the employer contested the Regional Director's finding of violations of labor standards, but such issue was resolved by an
examination of evidentiary matters which were verifiable in the ordinary course
of inspection, it was held that there was no more need to indorse the case to
the arbitration branch of the NLRC. In Ex-Bataan Veterans Security Agency, Inc. v. Secretary of Labor,[39]
the Court held:
The Court notes that EBVSAI did
not contest the findings of the labor regulations
officer during the hearing or after receipt of the notice of inspection
results. It was only in its supplemental motion for reconsideration
before the Regional Director that EBVSAI questioned the findings of the labor regulations officer and presented documentary
evidence to controvert the claims of private respondents. But even if
this was the case, the Regional Director and the Secretary of Labor still looked into and considered EBVSAI’s
documentary evidence and found that such did not warrant the reversal of the
Regional Director’s order. The Secretary of Labor
also doubted the veracity and authenticity of EBVSAI’s
documentary evidence. Moreover, the pieces of evidence presented by
EBVSAI were verifiable in the normal course of inspection because all
employment records of the employees should be kept and maintained in or about
the premises of the workplace, which in this case is in Ambuklao
Plant, the establishment where private respondents were regularly assigned.[40] (Emphasis supplied)
Thus, the key requirement for the Regional Director and the DOLE
Secretary to be divested of jurisdiction is that the evidentiary matters are not
verifiable in the course of inspection. Where the evidence presented was verifiable in
the normal course of inspection, even if presented belatedly by the employer,
the Regional Director, and later the DOLE Secretary,
may still examine them; and these officers are not divested of jurisdiction to
decide the case.
In the present case, petitioners' pieces of evidence of the alleged
contract of lease, payroll sheets, and quitclaims were all verifiable in the
normal course of inspection and, granting that they were not examined by the labor inspector, they have nevertheless been thoroughly
examined by the Regional Director and the DOLE Secretary. For these reasons, the
exclusion clause of Art. 128(b) does not apply.
In addition, the
findings of the said officers on the invalidity or low probative value of these
documents are findings of a factual nature which this Court will accord with
great respect.[41]
As to the quitclaims,
we need only to reiterate the policy laid down in AFP Mutual Benefit
Association, Inc. v. AFP-MBAI-EU,[42] which
states:
In labor
jurisprudence, it is well established that quitclaims and/or complete releases
executed by the employees do not estop them from
pursuing their claims arising from the unfair labor
practice of the employer. The basic
reason for this is that such quitclaims and/or complete releases are against
public policy and, therefore, null and void.
The acceptance of termination pay does not divest a laborer
of the right to prosecute his employer for unfair labor
practice acts. (Cariño
vs. ACCFA, L-19808, September 29, 1966, 18 SCRA 163; Philippine Sugar
Institute vs. CIR, L-13475, September 29, 1960, 109 Phil. 452; Mercury
Drug Co. vs. CIR, L-23357, April 30, 1974, 56 SCRA 694, 704)
In the Cariño
case, supra, the Supreme Court, speaking thru Justice Sanchez, said:
Acceptance
of those benefits would not amount to estoppel. The reason is plain. Employer and employee, obviously, do not
stand on the same footing. The employer
drove the employee to the wall. The
latter must have to get hold of money. Because, out of job, he had to face the harsh necessities of life. He thus found himself in no position to
resist money proffered. His, then, is a
case of adherence, not of choice. One
thing sure, however, is that petitioners did not relent their claim. They pressed it. They are deemed not to have waived any of
their rights. Renuntiatio non praesumitur.
The principle
enunciated above, however, should benefit only the respondents in the present
case who outrightly denied the quitclaims' validity,
because it may be supposed that those who did not protest petitioners'
presentation of the quitclaims in evidence have admitted the same by their
silence.[43]
In such instance, only respondents Francisco Abentajado,
Mario Guray, Juan Villaruz,
Jerry Asense and Joselito Razon are deemed to have blocked the quitclaims'
applicability against them.[44]
Anent the second issue,
petitioners contend that the Regional Director and the DOLE Secretary committed
error in their award of the various claims of respondents, specifically citing
the award to certain respondents whom they deny having worked as their
employees.
Here, there is merit in
petitioners' contentions. Although the
basic rule is that questions of facts like this may not be addressed in a
petition for review, there are certain exceptions, such as when the judgment is
based on a misapprehension of facts.[45] At the earliest possible opportunity, that is,
as early as the position paper filed on
However, we do not
sustain petitioners' allegation that the Regional Director and the DOLE
Secretary erroneously awarded overtime pay to the respondents, despite the lack
of proof that overtime work had been rendered. Suffice it to state that petitioners' own
evidence, which are the payroll sheets they submitted to the Regional Director,[48] show
that respondents indeed rendered overtime work. This amounts to an admission by petitioners,
which may be used in evidence against them.[49] Aptly, this then became one of the bases of
the Regional Director's award of overtime pay to respondents.
In summary, we hold
that only the awards granted to the following respondents be affirmed:
1.
Juan Villaruz
2.
Francisco Abentajado
3.
Jerry Asense
4.
Mario Guray
5.
Joselito Razon
The award in favor of Florentino Abuan is deleted, as his claim for illegal dismissal is
within the original and exclusive jurisdiction of the Labor
Arbiter, and outside of the jurisdiction of the DOLE Secretary and the Regional
Director. The awards granted to the rest
of the respondents are likewise deleted for lack of evidence to prove
petitioners' liability as to them.
WHEREFORE, the
decision appealed from is AFFIRMED, with the MODIFICATION that
only respondents Juan Villaruz, Francisco Abentajado, Jerry Asense, Mario Guray, and Joselito Razon be GRANTED their monetary awards while the
awards given to the rest of the respondents are DELETED.
No costs.
SO
ORDERED.
MA. ALICIA AUSTRIA-MARTINEZ
Associate Justice
WE
CONCUR:
CONSUELO YNARES-SANTIAGO
Associate
Justice
Chairperson
MINITA V. CHICO-NAZARIO Associate Justice |
ANTONIO EDUARDO B. NACHURA Associate Justice |
RUBEN T. REYES
Associate Justice
ATTESTATION
I attest that the conclusions in
the above Decision had been reached in consultation before the case was
assigned to the writer of the opinion of the Court’s Division.
CONSUELO YNARES-SANTIAGO
Associate Justice
Chairperson, Third Division
CERTIFICATION
Pursuant to Section 13,
Article VIII of the Constitution, and the Division Chairperson’s Attestation,
it is hereby certified that the conclusions in the above Decision had been
reached in consultation before the case was assigned to the writer of the
opinion of the Court’s Division.
REYNATO S. PUNO
Chief Justice
[1] Penned
by now Presiding Justice Conrado M. Vasquez, Jr.,
with the concurrence of Associate Justices Mercedes Gozo-Dadole
and Rosmari D. Carandang, rollo, pp. 57-65.
[2]
[3] Rollo, pp. 124-126.
[4]
[5]
[6] Rollo.
[7]
[8]
[9]
[10]
[11]
[12] Rollo, pp. 180-189.
[13]
[14]
[15]
[16]
[17]
[18]
[19]
[20]
[21] Supra
note 2.
[22] Rollo, pp.
66-67.
[23] Rollo, pp. 253-263.
[24]
[25]
[26]
[27] Cirineo Bowling Plaza, Inc. v. Sensing, G.R. No. 146572, January 14, 2005, 448 SCRA 175,
186; V.L. Enterprises v. Court of Appeals, G.R. No. 167512, March 12,
2007, 518 SCRA 174, 181-182; Ex-Bataan Veterans
Security Agency, Inc. v. Secretary of Labor, G.R. No. 152396, November 20,
2007, 537 SCRA 651, 663; Allied Investigation Bureau, Inc. v. Secretary of
Labor, G.R. No. 122006, November 24, 1999, 319 SCRA 77, 83; Guico, Jr. v. Secretary of Labor, G.R. No. 131750,
[28] Rollo, pp. 33-34, 122.
[29]
[30] Art.
217. Jurisdiction of Labor Arbiters and the Commission. (a) Except as
otherwise provided under this Code, the Labor Arbiters shall have original
and exclusive jurisdiction to hear and decide within thirty (30) calendar
days after the submission of the case by the parties for decision without
extension, even in the absence of stenographic notes, the following cases
involving all workers, whether agricultural or non-agricultural:
1.
Unfair labor practice cases;
2.
Termination disputes;
x
x x x (Emphasis supplied)
[31] Rollo, p. 123.
[32] Rollo, p. 34.
[33]
[34]
[35] Rollo, pp. 37-41.
[36] Gacutana-Fraile v. Domingo, G.R. No. 138518, December 15,
2000, 348 SCRA 414, 423, citing Alba v. Nitorreda, G.R. No. 120223, March 13, 1996, 254 SCRA
753, 763-764.
[37] SSK Parts
Corporation v. Camas, G.R. No. 85934, January 30, 1990, 181 SCRA 675; Batong Buhay Gold Mines, Inc. v. Sec. Dela Serna, 370
Phil. 872 (1999); Ex-Bataan Veterans Security Agency, Inc. v. Secretary of Labor,
supra note 27.
[38] SSK Parts Corporation v. Camas, id.
[39] Ex-Bataan Veterans Security Agency,
Inc. v. Secretary of Labor, id.
[40]
[41] Mehitabel Furniture Co., Inc. v. National Labor Relations
Commission, G.R. No. 101268,
March 30, 1993, 220 SCRA 602, 605; Aggabao
v. Gamboa, No. L-54760,
[42] No.
L-39140,
[43] RULES
OF COURT, Rule 130, Sec. 32.
[44] Respondent Mario Santiago is named in the
Affidavit but is not a signatory.
[45] BPI
Credit Corporation v. Court of Appeals, G..R. No. 96755,
[46] Rollo, pp. 207-226, 217.
[47] MacLeod v. National Labor Relations Commission, G.R. No. 146667,
[48] Rollo, pp.
144-172.
[49] RULES
OF COURT, Rule 130, Sec. 26.