RULES ON THE DISPOSITION OF LABOR STANDARDS CASES IN

THE REGIONAL OFFICES.

Pursuant to the provisions of Article 5 of the Presidential Decree No.

442, otherwise known as the Labor Code of the Philippines, as amended, the
following rules are hereby promulgated to govern the enforcement of labor
standards provisions in the Regional Offices.

RULE I
TITLE CONSTRUCTION AND DEFINITION

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 findings of 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,
except in 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 normal course 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 Labor and 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 parties in 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 welfare benefits, including those
set by occupational safety and health standards.

RULE II
MONEY CLAIMS ARISING FROM COMPLAINT/ROUTINE
INSPECTION

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 appropriate Branch of the National
Labor Relations Commission (NLRC).

Section 4. Service of notices and orders. – Notices and copies of orders

shall be served on the parties or their duly authorized representatives at their
last known address or, if they are represented by counsel, through the latter.

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 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, the latter shall conduct the necessary investigation and submit a
report thereof 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 agreed to make the
necessary 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

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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
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 complete field investigation can be made for reasons
attributable to 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
the field 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 support
a decision or order.

Section 13. Prohibited acts. – It shall be unlawful for any person or entity
to obstruct, impede, delay or otherwise render ineffective the Order of the
Secretary of Labor and Employment or this duly authorized representatives
issued pursuant 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 involving the 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

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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
grounds and 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
that the 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 submit proof 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.

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

RULE III
ENDORSEMENT OF CASES TO THE NATIONAL LABOR
RELATIONS COMMISSION (NLRC)

Section 1. Contested cases. – (a) In cases where the employer contests the
findings of the Labor Standards and Welfare Officers and the issues cannot
be resolved without considering evidentiary matters that are not verifiable in
the normal course of inspection, the Regional Director shall endorse such
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 notice of inspection results. The issue of
whether or not the case shall be endorsed to the NLRC shall be resolved by the
Regional Director in 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
participated in the investigation shall make themselves available as witnesses in
the proceedings before the Labor Arbiters concerned.

RULE IV
APPEALS

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 days from receipt thereof.

Section 2. Grounds for appeal. – The aggrieved party may appeal to the
Secretary the Order of the Regional Director on 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

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 (d) serious errors in the findings of facts were committed
which, if not corrected, would cause grave irreparable damage or
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 date appellant
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 days from receipt thereof.
Failure on the part of 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 discourage frivolous or

dilatory appeals, the Secretary of Labor and Employment may impose a
reasonable penalty, including fine or censure, upon the erring parties.

RULE V
EXECUTION

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
proof of 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;

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 (b) A writ of execution may be recalled subsequent to 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 in 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 guided by 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 before the 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.

RULE VI
HEALTH AND SAFETY CASES

Section 1. Inspection report. -In occupational safety and health

inspection, the LSWO shall 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.

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 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 danger to 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 needed to 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) hours from

the issuance of the Order of stoppage of operation or suspension, a hearing
shall be conducted with the assistance of the LSWO concerned 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) hours and 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 the request 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.

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 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.

RULES VII
GENERAL PROVISIONS

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 purpose of 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.

Section 3. Effectivity. - These Rules shall take effect fifteen (15) days after
announcement of their adoption in newspapers of general circulation.

16 September 1987.

(Sgd.) FRANKLIN M. DRILON

Secretary

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