ADMINISRATIVE LAW
broadcaster may operate or the labor
Generally, it means that part of the law which governs
the organization, procedures of administrative agencies
of the government to which (quasi) legislative power are
delegated and (quasi) judicial powers are granted, and
the extent and manner to which such agencies are
subject to the control of the courts.
 Originate: From legislation and from the
recognition of the legislature that it cannot, on its
own, cope with the various activities of men as
they become more progressive. Thus, having
realized that the legislature and the courts
cannot adequately answer the needs of its
citizens, the government created a mechanism,
an administrative agency or body, to cater the
needs of the individuals. For such reason,
administrative agencies are also called the 4th
branch of the government.
 Sources:
a. Constitution, statutes, judicial decisions,
executive orders of the President, and
administrative orders of administrative
superiors giving directions to
administrative subordinates.
b. Administrative law made by
administrative authorities includes both
general regulations and particular
determinations. It constitutes, under
delegations of power embodied in
statutory administrative law, an imposing
and constantly expanding body of law.
 Purpose:
a. Adjective or procedural administrative
law. — It establishes the procedure
which an agency must or may follow in
the pursuit of its legal purpose. It is
derived from the Constitution or a
statute, or from agency regulations
b. Substantive administrative law. — It is
derived from the same sources,
mentioned above, but its contents are
different in that, here, the law
establishes primary rights and duties,
ADMINISTRATIVE L
such as the conditions under which a
practices in which employers and unions
must not indulge.
 Types of Administrative Bodies:
1. Administrative agencies created to carry on
governmental functions (BIR, BoC, CSC, LRA)
2. Administrative agencies created to perform business
services for the public (Philippine Postal Authority,
PNR, NFA, NHA)
3. Administrative agencies created to regulate
businesses affected with public interest (NTC,
LTFRB, Insurance Commission, ERB, HLURB,
Bureau of Mines and Geosciences)
4. Administrative agencies created to regulate private
businesses and individuals under police power (SEC,
Dangerous Drug Board, CID, PRC)
5. Administrative agencies that adjudicate and decide
industrial controversies (NLRC, POEA)
6. Administrative agencies that grant privileges (GSIS,
SSS,PAO, Philippine Veterans Administration)
7. Administrative agencies making the government a
private party (COA)
8. Administrative agencies doing business activities
(PAGCOR, PCSO)
ADMINISTRATIVE CODE OF 1987
Government of the Republic of the Philippines refers to the corporate
governmental entity through which the functions of government are
exercised throughout the Philippines, including, save as the contrary
appears from the context, the various arms through which political authority
is made effective in the Philippines, whether pertaining to the autonomous
regions, the provincial, city, municipal or barangay subdivisions or other
forms of local government.
National Government refers to the entire machinery of the central
government, as distinguished from the different forms of local governments.
Local Government refers to the political subdivisions established by or in
accordance with the Constitution.
Agency of the Government refers to any of the various units of the
Government, including a department, bureau, office, instrumentality, or
government-owned or controlled corporations, or a local government or a
distinct unit therein.
National Agency refers to a unit of the National Government.
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Local Agency refers to a local government or a distinct unit therein.

Department refers to an executive department created by law. For

purposes of Book IV, this shall include any instrumentality, as herein POWERS AND FUNCTIONS OF
defined, having or assigned the rank of a department, regardless of its name
or designation.
ADMINISTRARTIVE AGENCIES

Bureau refers to any principal subdivision or unit of any department. For

purposes of Book IV, this shall include any principal subdivision or unit of
any instrumentality given or assigned the rank of a bureau, regardless of
ADMINISTRATIVE BODIES OR AGENCIES
actual name or designation, as in the case of department-wide regional
offices. Definition: A body, other than the courts and the
legislature, endowed with quasi-legislative and quasi-
Office refers, within the framework of governmental organization, to any judicial powers for the purpose of enabling it to carry out
major functional unit of a department or bureau including regional offices. It
may also refer to any position held or occupied by individual persons, whose
laws entrusted to it for enforcement or execution.
functions are defined by law or regulation.
"Function" is that which one is bound or which it is one's
Instrumentality refers to any agency of the National Government, not business to do.
integrated within the department framework vested within special functions
or jurisdiction by law, endowed with some if not all corporate powers, "Power" differs from this meaning, it would appear to
administering special funds, and enjoying operational autonomy, usually refer to the means by which a function is fulfilled.
through a charter. This term includes regulatory agencies, chartered
institutions and government-owned or controlled corporations.
Scope:
Regulatory agency refers to any agency expressly vested with jurisdiction
to regulate, administer or adjudicate matters affecting substantial rights and 1. Express and implied powers. — The
interests of private persons, the principal powers of which are exercised by a jurisdiction and powers of administrative
collective body, such as a commission, board or council. agencies are measured and limited by the
Constitution or law creating them or granting
Chartered institution refers to any agency organized or operating under a
special charter, and vested by law with functions relating to specific their powers
constitutional policies or objectives. This term includes the state universities
and colleges and the monetary authority of the State. a. Thus, since there is neither a statutory
nor constitutional provision expressly or
Government-owned or controlled corporation refers to any agency
organized as a stock or non-stock corporation, vested with functions relating even by implication conferring upon the
to public needs whether governmental or proprietary in nature, and owned Secretary of Interior and Local
by the Government directly or through its instrumentalities either wholly, or, Government the power to assume
where applicable as in the case of stock corporations, to the extent of at
least fifty-one (51) per cent of its capital stock: Provided, That government- jurisdiction over an election protest
owned or controlled corporations may be further categorized by the involving officers of the "Katipunan ng
Department of the Budget, the Civil Service Commission, and the mga Barangay" (composed of popularly
Commission on Audit for purposes of the exercise and discharge of their
respective powers, functions and responsibilities with respect to such elected "punong barangays" as
corporations. prescribed by law whose officers are
voted upon by their respective
"Officer" as distinguished from "clerk" or "employee", refers to a person members), the Secretary has no
whose duties, not being of a clerical or manual nature, involves the exercise
of discretion in the performance of the functions of the government. When
authority to pass upon the validity or
used with reference to a person having authority to do a particular act or regularity of the election of the officers
perform a particular function in the exercise of governmental power, "officer" b. The successor of an administrative
includes any government employee, agent or body having authority to do
the act or exercise that function.
agency which did not possess the power
to impose administrative fines on public
"Employee", when used with reference to a person in the public service, services rendering deficient services to
includes any person in the service of the government or any of its agencies, customers cannot arrogate unto itself
divisions, subdivisions or instrumentalities.
such power, in the absence of
legislation.
c. It is well-settled, however, that statutes
conferring powers on administrative

ADMINISTRATIVE L Page 2
 agencies must be liberally construed to
enable them to discharge their assigned
duties in accordance with the legislative
purpose. While it is the fundamental rule
that an administrative agency has only
such powers as are expressly granted to
it by law, it is likewise the rule that it has
also such powers as are necessarily
implied in the exercise of its express
powers. Accordingly, where a general
power is conferred or duty is enjoined by
law, every particular power necessary
for the exercise of one or the
performance of the other is also
conferred. Thus, it has been held that in
the exercise of its express powers under
its charter with respect to pollution
cases, a regulatory and quasi-judicial
body has the power to issue an ex parte
cease and desist order when there is
prima facie evidence of an
establishment exceeding the allowable
standards set by the anti-pollution laws.
Similarly, a statute granting powers to an
agency created by the Constitution
should be liberally construed for the
advancement of the purposes and
objectives for which it was created
2. Inherent powers. — An administrative agency
has no inherent powers, although implied powers
may sometimes be spoken of as "inherent.""
Thus, in the absence of any provision of law,
administrative agencies do not possess the
inherent power to punish for contempt which has
always been regarded as a necessary incident
and attribute of the courts.
3. Quasi - judicial powers. — Official powers
cannot be merely assumed by administrative
officers, nor can they be created by the courts in
the proper exercise of their judicial functions
 Unless expressly empowered,
administrative agencies are bereft of
quasi-judicial powers. The jurisdiction of
administrative authorities is dependent
entirely upon the provisions of the
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statute reposing power in them; they
cannot confer it upon themselves.
 That the exercise of power will most
effectively prevent or stop specific
violations of law is no excuse for a
deviation from this rule. Otherwise,
adherence to the rule of law would be
rendered meaningless.
 Administrative agencies are tribunals of
limited jurisdiction and as such can
exercise only those powers which are
specifically granted to them by their
enabling statutes. In other words, the
extent to which an administrative entity
may exercise given judicial powers
depends largely, if not wholly, on the
provisions of the statute creating or
empowering such agency.
NATURE OF POWERS
1. Jurisdiction limited-In general; the jurisdiction
of administrative officers and agencies is special
and limited. They possess a limited jurisdiction,
or purely constitutional or statutory powers, and
they possess only such powers and authority as
have been specifically conferred upon them by
the Constitution or specifically granted to them
by their enabling statutes and those as may be
necessarily implied in the exercise thereof or
incidental to the attainment of their purposes or
objectives.
2. Powers within their jurisdiction broad. —
However, the powers conferred on them must be
commensurate with the duties to be performed
and the purposes to be lawfully effected. In
various instances, the powers of particular
administrative bodies have been held broad and
plenary within their fields, and in such case, it is
only where such power and authority have been
manifestly abused that a court may interfere.
Persons dealing with administrative officers or
agencies must take notice of their authority to
act, and are charged with knowledge of any and
all limitations on their power.
3. Powers subject to the Constitution,
applicable law, or administrative regulation.
—A government agency must respect the
presumption of constitutionality and legality to
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 which statutes and administrative regulations are
entitled until such statute or regulation is
repealed or amended, or until set aside in an
appropriate case by a competent court, and
ultimately by the Supreme Court. It is not
authorized to substitute its own judgment for any
applicable law or administrative regulation with
the wisdom or propriety of which it does not
agree, at least not before such law or regulation
is set aside by the authorized agency of the
government.
POWERS OF ADMINISTRATIVE AGENCIES
INVESTIGATORY POWER
 The power of an administrative body to inspect
the records and premises, and investigate the
activities of persons or entities coming under its
jurisdiction,' or to secure, or to require the
disclosure of information by means of accounts,
records, reports, statements, testimony of
witnesses, production of documents, or
otherwise.
 They exist solely to secure and provide
information, and in some cases to make
recommendations.
 Other agencies possess their investigative or
inquisitorial powers to inform themselves of
particular situations to determine whether they
should take further action, in the execution of
particular powers or duties.
Importance of Administrative Investigation: The life
blood of the administrative process is the flow of fact, the
gathering, the organization and the analysis of evidence.
Investigations are useful for all administrative functions,
not only for rule-making, adjudication, and licensing, but
also for prosecuting, for supervising and directing, for
determining general policy, for recommending legislation,
and for purposes no more specific than illuminating
obscure areas to find out what if anything should be
done. An administrative agency may be authorized to
make investigations, not only in proceedings of a
legislative or judicial nature, but also in proceedings, the
sole purpose of which is to obtain information upon which
future action of a legislative or judicial nature may be
ADMINISTRATIVE L
taken and may require the attendance of witnesses in
proceedings of a purely investigatory nature. It may
conduct general inquiries into evils calling for correction,
and to report findings to appropriate bodies and make
recommendations for actions.
Scope and Extent of Power:
1. Initiation of investigation. — An administrative
agency or official may initiate an investigation on
a complaint or on its own motion. The
proceeding may be inaugurated by an order of
investigation, and it is proper for a commission to
recite in its order for investigation its duties and
powers specifically and to refer to the several
legislative acts and sections establishing them.
An administrative body may be required to make
certain investigations as a mandatory duty.
2. Conduct of investigation. — Investigations are
usually, and may properly be held in private.
Investigations must be so conducted that harmful
publicity will not be used in lieu of sanctions
provided by law.
3. Inspection and examination. — Among the
investigatory powers conferred upon
administrative agencies is the power, for specific
purposes, to enter premises and inspect or
examine such premises or things or operations
therein, particularly books and records. Some
statutes authorize administrative agencies to
enter and inspect such places and such records
as they may deem necessary or appropriate to
determine whether any person has violated any
provision of the act being administered or which
may aid in the enforcement of the act.
4. Requiring attendance of witnesses, giving of
testimony, and production of evidence. —
Although administrative officers do not have
inherent power to require the attendance of
witnesses before them, put witnesses under oath
and require them to testify, these powers, and
the power to require the production of books,
papers, and documents or other evidence, are
basic to the power of investigation.
a. It is common for statutes to confer such
powers upon administrative agencies.
Such powers may validly be vested in
administrative agencies even for
purposes not quasi-judicial.
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 b. An administrative agency may not itself
be empowered to compel the
attendance and testimony of witnesses,
but that the compulsion must be exerted
through judicial process. Accordingly, it
is common for the statutes to provide for
application to a court to enforce
obedience to a subpoena of an
administrative agency or the giving of
testimony before it.
c. The power to compel a witness to testify
will not be inferred from a grant of
authority to summon and examine
witnesses. It must be clearly given by
statute. And the power to investigate
anomalies cannot include the power to
take testimony or evidence of witnesses
whose appearance may be required by
the compulsory process of subpoena.
5. Hearing. — While hearings may be held, as a
general rule, a hearing is not a necessary part of
an investigation by an administrative agency or
official. A requirement that there be an
investigation carries with it no command that a
quasi-judicial hearing be conducted.
6. Contempt proceedings. — Persons failing to
attend, give testimony, and produce records at
an investigative proceeding may be punished for
contempt. Thus, a person failing to appear in
answer to a subpoena issued by an investigative
body or refusing to produce records pursuant to
a subpoena duces tecum and to explain his
inability to produce such records may be subject
to contempt proceedings. An administrative
body, however, cannot exercise its power to
punish a person for contempt17 in the absence
of any statutory grant, for such power is
inherently judicial in nature.
7. Application of technical rules of procedure and
evidence. — It is not totally uncommon that a
government agency is given a wide latitude in
the scope and exercise of its investigative
powers. After all, in administrative proceeding,
technical rules of procedure and evidence are
not strictly applied. By way of example, the
Supreme Court, through the Court Administrator,
investigates and takes cognizance of, not only
unverified, but also even anonymous complaints
against court employees or officials for violations
of R.A. No. 6713, the Code of Conduct and
ADMINISTRATIVE L
Ethical Standards. Under the Constitution, the
Office of the Ombudsman may investigate on its
own, or on complaint by any person, any act or
omission of any public official or employee when
such act or omission appears to be illegal,
unjust, improper, or inefficient
RULE MAKING POWER OR QUASI LEGISLATIVE
POWER
Nature. Administrative agencies are endowed with
powers legislative in nature or quasi-legislative (i.e., to
make rules and regulations), and, in practical effect, with
the power to make law. However, the essential legislative
functions may not be delegated to administrative
agencies and in this sense, it is said that administrative
agencies have no legislative power and are precluded
from legislating in the strict sense.' What may be granted
to an administrative agency is rule-making power to
implement the law it is entrusted to enforce. It
necessarily includes the power to amend, revise, alter, or
repeal its rules and regulations, (infra.) It is a standard
provision in administrative rules that prior issuances that
are inconsistent therewith are declared repeated or
modified.
Conditions. Administrative agencies are endowed with
powers legislative in nature or quasi-legislative (i.e., to
make rules and regulations), and, in practical effect, with
the power to make law. However, the essential legislative
functions may not be delegated to administrative
agencies and in this sense, it is said that administrative
agencies have no legislative power and are precluded
from legislating in the strict sense.' What may be granted
to an administrative agency is rule-making power to
implement the law it is entrusted to enforce. It
necessarily includes the power to amend, revise, alter, or
repeal its rules and regulations, (infra.) It is a standard
provision in administrative rules that prior issuances that
are inconsistent therewith are declared repeated or
modified.
Binding force and effect. A valid rule or regulation duly
promulgated by an administrative agency has the force
and effect of law and is binding on the agency and on all
those dealing with the agency. It is law. Conversely, a
regulation not adopted pursuant to law is no law and has
neither the force nor the effect of law.
Prospective/retroactive application. The well-
entrenched principle is that a statute operates
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prospectively only and not retroactively, unless the
legislative intent to the contrary is made manifest either
by express terms of the statute or by necessary
implication. The same principle is applicable to rules and
regulations issued by administrative agencies in their
duty to implement laws.
Limitations on the rule-making power:
The quasi-legislative or rule-making power of a public
administrative body is a delegated legislative power,
which it may not use either to abridge the authority given
it by the Congress or the Constitution or to enlarge its
power beyond the scope intended. Constitutional and
statutory provisions control with respect to what rules
and regulations may be promulgated by such a body, as
well as with respect to what fields are subject to
regulation by it. A public administrative body may make
only such rules and regulations as are within the limits of
the powers granted to it or what is found in the legislative
enactment itself; otherwise, they become void.
 It may not make rules and regulations which are
inconsistent with the provisions of the
Constitution or a statute, particularly the statute it
is administering or which created it, or which are
in derogation of, or defeat, the purpose of a
statute.
 It may not, by its rules and regulations, amend,
alter, modify, supplant, enlarge or expand,
restrict or limit the provisions or coverage of the
statute as this power belongs to the legislature. It
cannot engraft additional requirements or
embrace matters not covered by the statute or
contemplated by the legislature. The power of
administrative officials to promulgate rules in the
implementation of the statute is necessarily
defined by and limited to what is provided in the
legislative enactment conferring the power. It is
confined to putting the law into effect or carrying
out the legislative purpose. In case of
discrepancy between the basic law and a rule or
regulation issued to implement said law, the
basic law prevails because said rule or
regulation cannot go beyond the terms and
provisions of the basic law.15
 Furthermore, a rule or regulation should be
uniform in operation, reasonable, and not unfair
or discriminatory,
ADMINISTRATIVE L
Legislative Power Quasi-legislative Power
Power to make laws and Power of administrative agencies to issue
the power to fix a administrative rules and regulations in order to
legislative policy implement the law and the legislative policy fixed
by the legislature.
The administrative agency is acting in a
legislative capacity, supplementing the statute,
filling in the details, or "making the law," and
usually acting pursuant to a specific delegation
of legislative power to implement the broad
policies laid down in a statute
Cannot be delegated by Power of subordinate legislation
legislature to
administrative agencies The statute has delegated power to the agency
to adopt the rule; and It provides that the rule
shall, if within the delegated power, have
authoritative force
Kinds of rule-making powers/rules and regulations:
1. Rule - making powers. — Rules and
regulations of administrative agencies are of
different classes. Otherwise stated,
administrative agencies have various kinds of
rule-making powers which have been classified
as follows, to wit:
 Supplementary or detailed legislation or rule-
making by reason of particular delegation of
authority;
 Interpretative legislation or rule-making by the
construction and interpretation of a statute being
administered; and
 Contingent legislation or determination , under
delegated power, whether a statute shall go into
effect.
2. Administrative rules. — Based on the above
classifications, the administrative rules and
regulations may be discretionary or legislative,
interpretative, and contingent. Contingent rules
are legislative, so are procedural rules. 22 The
agency rules may also be internal or those
issued by an administrative superior to his
subordinates; and penal or those which
prescribe criminal sanctions,
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Legislative and interpretative rules distinguished:
bureaus, offices or agencies:
Legislative Interpretative
Power to create may be issued only may be issued as a
new law under express necessary incident of
delegation of law, the administration of a
regulatory statute.
Indeed, one charged
with such administration
must necessarily
interpret its provisions
before he can apply
them to the particular
situations, whether he
embodies such
interpretations in the
generalized form of
regulations or confines
them to the case-by-
case approach.
Presence of Legislative regulations Interpretative regulations
statutory sanction. are said to have the are but statutory
force and effect of law interpretations, which
unless they are ultra have behind them no
vires or were issued statutory sanction. Such
under an regulations, whether so
unconstitutional expressly authorized or
delegation. issued only as an
incident of statutory
administration, merely
embody, so far as their
legal effects go,
administrative
interpretations of an
existing law
Binding force and Valid legislative rules Merely interpret previous
effect. have the same force and law
effect as valid statutes.
When an administrative
agency renders an
opinion or issues a
statement of policy, it
merely interprets a pre-
existing law and the
administrative
interpretation is at best
advisory for it is the
courts that finally
determine what the law
means.
No vested right can be
acquired on a wrong
construction of the law
by administrative
officials and such wrong
interpretation does not
place the government in
estoppel to correct or
overrule the same.
ADMINISTRATIVE L
Administrative issuances of Secretaries and heads of
1. General classification of issuances. —The
administrative issuances of Secretaries and
heads of bureaus, offices or agencies shall be in
the form of circulars or orders.
a. Circulars shall refer to issuances prescribing
policies, rules and regulations, and procedures
promulgated pursuant to law, applicable to
individuals and organizations outside the
Government and designed to supplement
provisions of the law or to provide means for
carrying them out, including information relating
thereto; and
b. Orders shall refer to issuances directed to
particular offices, officials, or employees,
concerning specific matters including
assignments, detail and transfer of personnel, for
observance or compliance by all concerned.
2. Numbering system of issuances. — Every such
circular or order shall properly be identified as
such and chronologically numbered. Each class
of issuance shall begin with number 1 for each
calendar year.
3. Official logbook. — Each department, bureau,
office or agency shall keep and preserve a
logbook in which shall be recorded in
chronological order, all final official acts,
decisions, transactions or contracts, pertaining to
the department, bureau, office or agency.
Whenever the performance of an official act is in
issue, the date and the time record in the
logbook shall be controlling. The logbook shall
be in the custody of the chief Administrative
Officer concerned and shall be open to the public
for inspection.
4. Government - wide application of the
classification of issuances. — The Records
Management and Archives Office in the General
Services Administration shall provide such
assistance as may be necessary to effect
general adherence to the foregoing classification
of issuances, including the conduct of studies for
developing sub-classifications and guidelines to
meet peculiar needs.
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Requisites for validity of administrative rules and
regulations:
1. The rules and regulations must have been
issued on the authority of law;
2. They must not be contrary to law and the
Constitution;
3. They must be promulgated in accordance with
the prescribed procedure. In certain cases,
previous notice and hearing or publication may
be necessary to satisfy the requirement of due
process,
4. They must be published in full if their purpose is
to enforce or implement existing law pursuant to
a valid delegation.
Grant of rule-making powers:
1. By some legislative act. —The authority of an
administrative body or officer to make rules and
regulations must be based upon some legislative
act, that is, there must be a law authorizing it to
promulgate rules and regulations. Because of
the ever present danger that an agency may
adopt legislative rules which go beyond, and
possibly conflict with, the legislative intent, it is
desirable that an asserted power to adopt such
rules be predicated upon a specific and explicit
legislative authority. Without such authority, an
administrative rule and regulation is null and
void.
2. By implication from the powers expressly
granted. — The power, however, of
administrative agencies to make rules and
regulations does not depend for its existence
solely upon express grant. The authority of an
administrative agency to adopt reasonable rules
and regulations which are deemed necessary to
the due and efficient exercise of the powers
expressly granted, cannot be questioned. This
authority may be implied from the power granted.
Thus:
ADMINISTRATIVE L
a. The power to fix minimum wage does
not confine an agency to that single act.
It may adopt rules to make it effective.
b. The question as to the power of an
agency to adopt procedural rules is one
which rarely arises. It would seem that
the very delegation to an agency of
power to administer a statute would
carry with it the power to adopt such
reasonable procedures as are
necessary or useful in carrying out its
administrative tasks.
c. It is equally clear that an agency may,
without a specific statutory authority,
make known its interpretation of the
provisions of the statute it administers.
Conversely, it is clear on principle, that
an agency may not issue legislative
rules in the absence of legislative
authority to do so.
Determination of validity of rules:
1. Legislative rule. — In the case of a legislative
rule, the queries would be:
a. first, whether the rule relates to the
subject matter on which power to
legislate has been delegated;
b. second, whether the rule conforms to
the standards prescribed in the
delegatory statute; and
c. third, whether the rule is invalid on
constitutional grounds, such as due
process.
2. Interpretative rule. — When an interpretative rule
is involved, the inquiry relates fundamentally to
the question of whether the rule correctly
interprets the statute, and involved with this
issue, there might be a question of whether the
rule amounts to an attempt to exercise legislative
powers which have not been delegated. If this
were the case, the rule would be invalid as going
beyond the sphere of interpretation and into that
of legislation.
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Requirement of reasonableness:
unreasonable and arbitrary.
1. Bear reasonable relation to the purpose sought
to be accomplished. — Rules and regulations
must be reasonably adapted to secure the end
in view, and are invalid if shown to bear no
reasonable relation to the purposes for which
they are authorized to be made,63 i.e., there is
lack of reasonable relationship between the
purpose sought to be accomplished by the rule.
2. Supported by good reasons. — The requirement
of reasonableness of an administrative
regulation means no more and no less than that
the regulation must be based upon reasonable
ground, that is, must be supported by good
reasons.
a. Whether a regulation is reasonable
depends on the character or nature of
the conditions to be met or overcome,
and the nature of the subject matter of a
rule may affect its reasonableness.
Thus, the regulation of certain activities
involving mere privilege, such as the
sale of intoxicating liquors or the
conduct of horse racing, is accorded
liberal judicial support, and the court is
slow to find such regulations
unreasonable.
b. An administrator has a large range of
choice in determining what regulations
or standards should be adopted. It is
enough that the administrator has acted
within the statutory bounds of his
authority and that his choice, among
possible alternatives adapted to the
statutory ends, is one which a
reasonable person could have made.
3. Free from constitutional infirmities or charge of
arbitrariness. — A court may set aside rules on
the basis of their unreasonableness, relying on
constitutional grounds (e.g., due process) or
without specific reliance on constitutional
ADMINISTRATIVE L
doctrines but on the bare grounds that they are
a. A rule, for example, providing that
absence from work for three days or
longer on the part of the employee,
without consent of the employer, would
create a conclusive presumption that
the employee had resigned would be
unreasonable and hence, contrary to
law.
b. Failure of an agency to give due
consideration to all the factors that
should have been considered may form
a basis for striking down a rule as
unreasonable.
c. Even procedural defects may render a
rule unreasonable; e.g.,an agency
cannot alter the effect of its duly
published rules by a mere letter
expressing a new policy at variance
with the practice permitted under the
rules.
d. A rule although valid when made, may
become unreasonable with the passage
of time and change of conditions as to
become invalid.
e. In case of delegation of rate-fixing
power, the usual standard which the
legislature is required to prescribe for
the guidance of administrative authority
is that the rate be reasonable and just.
However, even in the absence of an
express requirement as to
reasonableness, this may be implied. A
liberal implementation of the rules and
regulations of an administrative agency
is justified in cases where their rigid
enforcement will result in a deprivation
of legal rights. Thus, a strict
implementation of the 60-day rule for
the filing of claim with PhilHealth,
without regard to the causes of the
delay beyond the accredited health
Page 9
 provider's (hospital's) control, was held
unreasonable considering that the law
itself does not provide for any specific
period, showing that the period for filing
was not per se the principal concern of
the legislature. The overly stringent
application of technical rules should not
be allowed to defeat the hospitals' right
to be reimbursed for services it had
already rendered, otherwise, no
accredited provider will gamble on
honoring claims with delayed supporting
papers — no matter how meritorious —
knowing that reimbursement will not be
forthcoming.
Penal rules and regulations:
Administrative bodies have the authority to issue
administrative regulations which are penal in nature
where the delegating statute itself makes the violation of
the administrative regulations punishable and provides
for its penalty.
Requisites for validity. — The requisites for the validity
of administrative rules and regulations with penal
sanctions are the following:
1. The law which authorizes the promulgation of
rules and regulations must itself provide for the
imposition of a penalty for their violation;
2. It must fix or define such penalty;
3. The violation for which the rules and regulations
impose a penalty must be punishable or made a
crime under the law itself; and
4. The rules and regulations must be published in
the Official Gazette. The Administrative Code of
1987 requires that "every rule establishing an
offense or defining an act which, pursuant to law
is punishable as a crime or subject to a penalty,
shall in all cases be published in full text.
5. In the absence of a law granting an
administrative agency the authority to fix or
impose administrative fines, such administrative
ADMINISTRATIVE L
agency cannot provide for such fines in its
implementing rules and regulations.
Nature of power to prescribe penalties. —The rule is
that, the lawmaking body cannot delegate to an
administrative agency or official, the power to declare
what acts shall constitute a criminal offense and how it
shall be punished. Prescribing of penalties is a legislative
function. However, Congress may validly provide in the
law itself for the imposition of the penalty for violation of
rules and regulations which it has empowered
administrative authorities to enact.
Legal force and effect of administrative rules and
regulations:
1. Legislative rules and regulations of an
administrative body or officer which are valid
have the force and effect of law, and are just as
binding upon all the parties, as if they had been
written in the original law itself.
a. They are valid if they have been duly
promulgated or adopted in pursuance of
properly delegated statutory or
constitutional authority of the agency.
b. They receive statutory force upon going
into effect.
2. On the other hand, interpretative rules and
regulations including administrative constructions
do not have the force of law.
a. Their validity is subject to challenges in court. In
this case, the statute itself which is being
interpreted remain the sole criterion of what it
means and not the interpretative rules and
regulations.
b. However, it is a principle widely accepted that
the contemporaneous construction placed upon
the statute by the executive officers whose duty
is to enforce, it is entitled to great weight and
consideration by the courts. This is especially
true if the administrative interpretation has been
observed for a long time without objection. For
instance, it has been said that a regulation of an
administrative agency construing a legislative
Page 10
 enactment may be deemed to have received
legislative approval and to have the effect of law
where it is long-continued without substantial
change and it applies to unamended or
substantially re-enacted statutes.
c. Nevertheless, such interpretation is not
conclusive and will be ignored if judicially found
to be clearly erroneous or in conflict with either
the letter or spirit of the governing statute or the
Constitution and other laws.78 Administrative
interpretation is at best advisory for it is the
courts that finally determine what the law
means.In general, interpretative rules are
considered important only where the statute itself
is ambiguous.
3. Rules prescribing the methods of procedure
within an agency have the effect of law, and are
binding on both the agency and on respondent
parties. However, agency rules do not prevent
courts from doing what justice requires. Thus,
where the discharge of a civil service employee
was found to be unlawful, reinstatement should
be ordered despite the fact that the aggrieved
employee had not applied for reinstatement
within the time required by agency rules. Courts
are competent to deter an agency's own
interpretation of its procedural rules, where it is
felt that the ends of justice so require. Like
legislative or interpretative rules, procedural
rules will be held void if they are found to be in
conflict with statutory requirements.
Retroactive operation of rules, regulations, and
rulings:
The power of an administrative agency to adopt rules
and regulations or make rulings ordinarily includes the
power to give them a retroactive effect, within the limits
specified or contemplated by the statute, provided doing
so does not conflict with restrictions on the legislative
power to make retroactive laws.
1. Under some statutes, while an agency may
prescribe that a ruling by it shall operate
ADMINISTRATIVE L
prospectively only, if it fails so to provide, its
ruling must operate retroactively as well as
prospectively.
2. However, an administrative rule or regulation
usually will not be construed to operate
retrospectively where the intention to that effect
does not unequivocally appear, although it will
be so construed where such intention does
appear.
3. In any case, the new rule or ruling is not to be
applied retroactively if to do so would be
unreasonable and inequitable. The principle
prohibiting retroactive application of
amendments to administrative rules has frequent
application to tax cases. It applies where the
retroactive application would prejudice the
taxpayer
Amendment or repeal of administrative rules and
regulations
An administrative agency ordinarily has the authority to
change, alter, amend, or correct the rules and
regulations duly promulgated by it, and the fact that an
administrative rule has been amended does not
necessarily mean that the earlier rule was unreasonable.
Since it is discretionary with such an agency whether it
will take such action, the exercise of such discretion in
the public interest is not subject to judicial control.
1. a regulation must be made in accordance with
statutory procedural requirements, such as
requirements with respect to notice and hearing
as well as with respect to the vote necessary to
make a change.
2. As a general practice, an administrative rule
should not be amended so as to effect a
retroactive change, and the rights of a person
acquired before the amendment of a rule have
been held determinable under the provisions of
such rule prior to such amendment. However,
where an administrative regulation which
purports to interpret a statute but is out of
harmony therewith is amended so as to correctly
Page 11
 apply such statute, such amendment has been
held not subject to the objection of being
retroactive, since it is, in fact, the first correct
application of the law.
3. Where administrative bodies exercise regulatory
or quasilegislative power, laying down rules and
regulations, even specific orders to be observed
by persons subject thereto, the doctrine of res
judicata is not applicable. Such rules and
regulations, or orders may be amended,
modified, or revoked to conform to the
requirements of the law or the demands of public
interest.90 But even though an administrative
agency is not bound by the rule of res judicata, it
is bound to recognize the validity of a rule of
conduct prescribed by it, and not to repeal its
own enactment with retroactive effect.
4. In the case of procedural rules, it is often
expeditious for an agency to ignore a certain rule
in a particular case and adopt therein a different
procedure than that contemplated by the
agency's rule.
a. Of course, the parties may
voluntarily waive compliance
with procedural rules, and such
waiver may be founded on acts
as well as upon verbal
declarations.
b. Similarly, disregard of minutiae
of procedural niceties will be
tolerated, where it clearly
appears no prejudice resulted.
c. So too, if it can be shown that a
particular rule was established
solely for the agency's sole
convenience, it may be waived
by the agency.
d. At the opposite extreme, it is
clear that an agency will not be
permitted to adopt a special rule
of procedure for the purpose of
affecting the outcome of a
particular case, or (with a
ADMINISTRATIVE L
conscious desire towards the
end) wilfully to ignore a rule in a
particular case. But in cases
where the record clearly
establishes that disregard of an
agency's procedural rules could
not have prejudiced any party to
the proceeding, the departure
from prescribed procedures is
not fatal.
Requirements of notice and hearing or publication:
As a general rule, prior notice and hearing are not
essential to the validity of rules and regulations
promulgated to govern future conduct
1. Where rules do not apply to named or specified
parties. — Where a function, legislative in nature,
rather than a judicial function, is delegated to an
administrative agency, the legislature need not
require a notice or hearing as a prerequisite to the
act of the administrative agency, since the
legislature could itself have performed that act
without notice or hearing particularly where the rules
are of a general application, or procedural in nature,
or are no more than administrative interpretations.
Thus, it has been held that when the rules, even
when they involve the fixing of rates, are meant to
apply to all enterprises of a given kind throughout
the Philippines.
2. Where rules apply to named or specified parties. —
Where such rules and/or rates apply exclusively to a
particular party and are predicated upon a finding of
fact
3. Where requirements prescribed by law. — Under
the Administrative Code of 1987, notices of
proposed rules must be given when required by law;
otherwise, such notices shall be circulated as far as
practicable to afford interested parties the
opportunity to submit their views prior to the
adoption of any rule. But any rule which fixes rates
shall not be valid unless the proposed rates shall
have been published and hearings conducted with
Page 12
 the rules on contested cases to be observed in case
of opposition.
4. Where rules have the force and effect of law. —
Issuances by an administrative agency to enforce or
implement an existing law have the force and effect
of law. Corollarily, when the issuances are of
"general applicability," publication in the Official
Gazette or in a newspaper of general circulation in
the Philippines is necessary as a requirement of due
process. C.A. No. 638 mandates that besides
legislations and resolutions of public nature of the
Congress of the Philippines, executive orders and
proclamations which have general applicability must
also be published. Publication is required as a
condition precedent to the effectivity of a law to
inform the public of the contents of the law or rules
and regulations before their rights and interests are
affected by the same; hence, subsequent
publication thereof would not cure the defect. Prior
publication cannot be dispensed with for the reason
that such omission would offend due process
insofar as it would deny the public knowledge of the
laws that are supposed to govern it.
5. Where regulations merely interpretative and those
internal in nature. — Interpretative regulations and
those merely internal in nature, that is, regulating
only the personnel of the administrative agency and
not the public, need not be published. Neither is
publication required of so-called letters of
instructions issued by administrative superiors
concerning the rules or guidelines to be followed by
their subordinates in the performance of their duties.
AJUDICATORY POWERS OR QUASI JUDICIAL
1. Involve specific parties. — These terms aim to
describe powers and functions which involve the
decision or determination by administrative
agencies of the rights, duties, and obligations of
specific individuals and persons, as contrasted
with powers (i.e., rule making) of administrative
agencies which, while they may involve
decisions or determinations in the broadest
sense, involve persons generally rather than
specially, and usually operate only prospectively.
2. Involve judicial function exercised by a person
other than a judge. — In speaking of the
functions of an administrative agency, the terms
"quasi judicial" and "adjudicatory" are
synonymous or correlative, but not all
ADMINISTRATIVE L
determinations by an administrative agency are
judicial in nature or quasi judicial. One or the
other is used to designate a power or function
that partakes of the judicial but is exercised by a
person other than a judge. It is the power of an
administrative agency to hear and determine, or
to ascertain facts and decide by the application
of rules to the ascertained facts. By this power,
administrative authorities are enabled to interpret
and apply not only implementing rules and
regulations promulgated by them but also the
laws entrusted to their administration.
3. Involve exercise of judicial power conveniently
styled "quasi - judicial." — The fact remains that
the function of any particular act must be either
administrative or judicial and there can in reality
be no middle or halfway ground between them.
The use of such terms is simply a convenient
way of approving the exercise of a judicial power
by an administrative agency (e.g., legality of
contract) or approving review by the courts of the
exercise of power by administrative agencies.
Aside from such approval, the terms "quasi-
judicial" or "judicial in nature" are used to
designate the character of particular proceedings
or powers, the exercise of which must be
accompanied with certain formalities and
safeguards characteristic of the judicial process.
4. Where an administrative tribunal's function
partakes of the judicial, its exercise is styled
"quasi-judicial," but it is the exercise of judicial
power nonetheless. Still, administrative,
agencies are not considered courts; they are
neither part of the judicial system nor are they
deemed judicial tribunals.
Extent of judicial or quasi-judicial powers of
administrative agencies:
1. Jurisdiction limited. — Limited delegation of
judicial or quasi-judicial authority to administrative
agencies is well- recognized in our jurisdiction,
basically because the need for special
competence and experience has been recognized
as essential in the resolution of questions of
complex or specialized character and because of
the companion recognition that the dockets of our
regular courts have remained crowded and
clogged.
Page 13
 2. Extent of powers depends largely on enabling act. 5. General policy to uphold exercise. — It is the
— In general, the quantum of judicial or quasi- general policy of the courts to sustain the decision
judicial powers which an administrative agency of administrative authorities not only on the basis
may exercise is defined in the enabling act of such of the doctrine of separation of powers but also for
agency. In other words, the extent to which an their presumed knowledgeability and even
administrative agency may exercise such powers expertise in the laws they are entrusted to
depend largely, if not wholly, on the provisions of enforce.11 A court cannot compel an agency to do
the statute creating or empowering such agency. a particular act or to enjoin such act which is within
The grant of original jurisdiction on a quasi-judicial the latter's prerogative, except when in the
agency is not implied. In the exercise of such exercise of its authority, it gravely abuses or
powers, the agency concerned must commonly exceeds its jurisdiction.
interpret and apply contracts, determine the rights
of private parties under such contracts, and award Nature of particular acts:
damages whenever appropriate. One thrust of the
1. Licensing, enabling, or approving. — The action
multiplication of administrative agencies is that the
of an administrative agency in granting or
interpretation of contracts and the determination of
denying, or in suspending or revoking, a license,
private rights under it is no longer a uniquely
permit, franchise, or certificate of public
judicial function, exercisable only by our regular
convenience and necessity, is not judicial but is
courts but may be conferred upon an
administrative or quasi-judicial.
administrative agency.
a. Discretionary refusal of a license, not made on
3. Split jurisdiction not favored. — The rule is that
conflicting evidence or after a hearing, is not a
when an administrative body or agency is
quasi-judicial act for procedural purposes,
conferred quasi-judicial functions, all controversies
although a hearing which is a method for
relating to the subject matter pertaining to its
obtaining knowledge of the facts upon which the
specialization are deemed to be included within its
determination to grant or deny a license must be
jurisdiction. Split jurisdiction is not favored. Thus,
based is a quasi-judicial function.
an agency with exclusive jurisdiction over
b. For procedural purposes, an administrative
controversies involving sale of subdivision lots has
action is not a purely administrative act if it is
also jurisdiction to hear and decide claims for
dependent upon the ascertainment of facts by
refund by a subdivision buyer. Similarly, a
the administrative agency. Where a statute
complaint for specific performance and annulment
empowers an agency to revoke a license for
of mortgage and damages filed by a buyer of
non- compliance with or violation of agency
subdivision lots against the mortgagee, though
regulations, the administrative act is of a judicial
involving title to, possession of, or interest in, real
nature, since it depends upon the ascertainment
estate was held well within the jurisdiction of the
of the existence of certain past or present facts
Housing and Land Use Regulatory Board
upon which a decision is to be made and rights
(HLURB) for it involved a claim against the
and liabilities determined.
subdivision developer as well as the mortgagee to
2. Fixing rates and charges. — As previously
which the former mortgaged the lots without the
pointed out, the function of prescribing rates by
written approval of the (HLURB) as required by
an administrative agency may be either a
law.
legislative or an adjudicative function.
4. Grant of particular power must be found in the law
a. Where the rules and/or rates laid down
itself. — Where there is nothing in the law that
are meant to apply to all enterprises of a
would suggest that a particular power has been
given kind throughout the country (e.g.,
granted, such as the power to decide contractual
maximum school fees prescribed by the
disputes, the same cannot be exercised. Except
Department of Education, Culture and
for constitutional officials who can trace their
Sports, that may be charged by all
competence to act to the fundamental law itself, a
private schools throughout the country
public official must locate in the statute relied
for a particular school year), they may
upon, a grant of power before he can exercise it.
ADMINISTRATIVE L Page 14
 partake of a legislative character. If the
fixing of rates were a legislative function,
the giving of prior notice and hearing to
the affected parties is not a requirement
of due process, except where the
legislature itself requires it.
b. Where the rules and the rates imposed
apply exclusively to a particular party,
based upon a finding of fact (e.g., rates
the PLDT or the Meralco are authorized
to charge its customers), then its
function is quasi-judicial in character. As
regards rates prescribed by an
administrative agency in the exercise of
its quasi-judicial function, prior notice
and hearing are essential to the validity
of such rates. But an administrative
agency may be empowered by law to
approve provisionally, when demanded
by urgent public need, rates of public
utilities without a hearing. The reason is
easily discerned from the fact that
provisional rates are by their nature
temporary and subject to adjustment in
conformity with the definitive rates
approved after final hearing.
Furthermore, rate fixing calls for a
technical examination and a specialized
review of specific details which the
courts are ill-equipped to enter; hence,
such matters are primarily entrusted to
the administrative or regulatory
authority.
c. In any case, the rates must both be non-
confiscatory and must have been
established in the manner prescribed by
the legislature. Even in the absence of
an express requirement as to
reasonableness, this standard may be
implied. A rate- fixing order, temporary
or provisional though it may be, is not
exempt from the procedural
requirements of notice and hearing
when prescribed by statute, as well as
the requirement of reasonableness. The
basic requirement of reasonableness
comprehends such rates which must not
be so low as to be confiscatory, or too
high as to be oppressive. It assumes
ADMINISTRATIVE L
that the rates are fair to both the public
utility and the consumer.
d. An order prescribing rates even for a
temporary period, could be unjust,
unreasonable or even confiscatory, as
where the rates are unreasonably low,
since the public utility permanently loses
its just revenue during the prescribed
period. In fact, such order is, in effect,
final insofar as the revenue during the
period covered by the order is
concerned. Upon a showing, therefore,
that the order requiring a reduced rate is
confiscatory and will unduly deprive a
public utility of a reasonable return upon
its property, a declaration of its nullity
becomes indubitable, on ground of being
violative of substantive due process.
3. Miscellaneous acts. — Adjudicatory powers have
also been classified as administrative on the one
hand, or as judicial in nature or quasi-judicial, on
the other hand. Among the acts held, for various
purposes, to be administrative or not judicial are:
a. auditing accounts of a receiver of public
moneys;
b. determinations of the Civil Service
Commission in respect of classification
and grading of positions in the civil
service;
c. passing upon a petition to call an
election; (d) the function of draft boards;
d. investigation for the purpose of
ascertaining the correctness of a tax
return;
e. the parole of prisoners, at least so long
as the duration of the sentence is not
affected, and the revocation of parole;
f. the transfer of prisoners from one place
of imprisonment to another;
g. making a preliminary finding of probable
cause for the arrest of an accused;
h. the initial determination of whether
certain things constitute public
nuisances;
i. closing and taking charge of banks
found to be insolvent or unsafe and
assessment of their stockholders;
j. determination whether or not there had
been a violation of the terms of collective
bargaining agreement; (I) the issuance
Page 15
 of a warrant of distraint or levy in tax statutory grant of power, administrative agencies
cases and certain other administrative generally may notthemselves enforce their
enforcement devices; and determinations, at least not by direct and positive
k. deportation of alien. action and such powers are not lightly to be
implied;
Classification of adjudicatory powers: 5. Equitable powers. — An administrative tribunal
having power to determine the law upon a
1. Enabling powers. —They are usually
particular state of facts has the right to, and
characterized by the grant or denial of permit or
must, consider and make proper application of
authorization. The chief application of this power
the rules of equity. Sometimes, statutes
is, of course, in the granting or denial of licenses
expressly confer upon administrative agencies
to engage in a particular business or occupation,
certain powers equitable in their nature, such as
but it is also exemplified by the powers of
power to appoint a receiver or power to issue
administrative agencies to permit the issuance of
"injunctions" — that is, orders to cease and
securities, to grant certificates of public
desist from conduct which is in violation of the
convenience or necessity, to grant broadcasting
law which they administer, or power to take such
licenses, and any other of similar nature. Of
affirmative action as will effectuate the policies of
course, rule-making authority is also exercised
a statute. In certain situations, particular
by licensing bodies;
administrative agencies are expressly given
2. Directing powers. —They are illustrated by the
power to determine what is "fair and equitable"
corrective powers of public utility commissions,
and equitable principles are necessarily applied
powers of assessment under the revenue laws,
in their decisions
reparations under public utility laws, and awards
under workmen's compensation laws, and
powers of abstract determination such as
definition-valuation, classification, and fact
finding;
3. Dispensing powers. —They are exemplified by
the authority to exempt from or relax a general
prohibition, or authority to relieve from an
affirmative duty. In form and as a matter of
legislative terminology, dispensing power may be
indistinguishable from a licensing power, but it
differs from it in purpose. The licensing power
sets or assumes a standard, while the
dispensing power sanctions a deviation from a
standard. In the absence of express grant of
authority, a commission may not relieve a
common carrier subject to its supervision from
an affirmative duty imposed by law;
4. Summary powers. — The term is used to
designate administrative power to apply
compulsion or force against person or property
to effectuate a legal purpose without a judicial
warrant to authorize such action. Often, such
powers are summary in both senses of the term,
that is, they involve direct administrative action
(e.g., abatement of nuisance, summary restraint
or levy of property of delinquent taxpayers) taken
without notice and hearing. In the absence of a

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