Republic of the Philippines

DEPARTMENT OF LABOR AND EMPLOYMENT

Regional Office No.2
Regional Government Center
Carig Sur, Tuguegarao City, Cagayan
Email: imsd_services@yahoo.com Tele Fax: (078) 304 5085
Hotline #: 09167879705 Certificate No: CIP/5226/15/12/958

IN RE: ROUTINE INSPECTION

CONDUCTED AT:
LS CN: R0200-1903-RI-0017-QRNO
Authority No: RO02-2019-03-QFO-RI-0003

HIGHLAND PETROLEUM
STATION,
Andres Bonifacio, Diffun, Quirino,

ENGR. FRANCIS CUYOP,

Owner,

Respondent/s.
x----------------------------------------------x

ORDER

This refers to the routine inspection conducted on March 13,

2019 at Highland Petroleum Station located at Andres Bonifacio,
Diifun, Quirino, to verify compliance with labor laws and social
legislations pursuant to Article 128 of the Labor Code, as amended
and Department Order No. 183-2017.

The result of the inspection showed the following observations:

On General Labor Standards (GLS):

1. Underpayment of wages;
2. Non-payment of premium pay;
3. Underpayment of 13th month pay;
4. Non-coverage with SSS, Pag-Ibig and PhilHealth; and
5. No records keeping;
a) Payrolls and Daily Time Records (DTRs) for the period of
March 2018 to February 2019; and
b) Proof of payment of 13th month pay.

On Occupational Safety and Health Standards (OSHS):

1. No DOLE Registration under Rule 1020;
2. No Safety Officer;
3. No First-Aider; and
4. No organized Safety Committee.
Highland Petroleum Station
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The Notice of Results (NR), containing the findings of the Labor

Inspector Laura B. Diciano, was issued, furnished and explained to
Mr. Rey Mangpay-at, the Manager and Mr. Ronald Hagcod, the
Employees’ Representative containing the following directive; “Any
questions on the above-findings shall be submitted to this Office
within five (5) days and correction thereof shall be done within ten
(10) days for GLS deficiencies and within the maximum period of
three (3) months for OSHS deficiencies from receipt of this Notice.”
However, the Respondent failed to comply.

Mandatory conferences were conducted on May 20 and 27,

2019. The Respondent failed to submit proof of compliance with the
noted deficiencies despite due notice. To date, no compliance has
been submitted or effected to correct the noted deficiencies. No
questions also have been raised on the said deficiencies. Hence, this
case shall be resolved based on the available documents and the
findings submitted by the Labor Inspector who is presumed to have
performed her duties in a regular manner in the absence of evidence
to the contrary.

First, non-presentation of employment records, when required by this

Office, is a violation of Art. 128 of the Labor Code of the Philippines, as
amended, to wit:

“Art. 128. Visitorial and enforcement power. – (a) The Secretary

of Labor or his duly 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.”

Xxx

Failure or refusal to present employment records to the duly

authorized representative of this Office is considered a denial of the
visitorial and enforcement powers of the Secretary of Labor and
Employment and shall result in the filing of criminal action against the
responsible persons pursuant to Rule IX of Department Order No.
183, s. 2017.

As regards the Respondent’s failure to present proof of

payment and remittance of its employees’ SSS, Pag-IBIG and
Philhealth contributions, the same shall be endorsed to the
concerned agencies for their appropriate action.
Highland Petroleum Station
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Second, this Office adopts the findings submitted by the

Labor Inspector who is presumed to have performed his
duties in a regular manner in the absence of evidence to the contrary.
Thus, the monetary award is computed accordingly based on the
inspection findings and available records representing underpayment
of wages, non – payment of premium pay on Special Holidays and
underpayment of 13th month pay, as follows:

Name of Workers Underpayment Non-payment Underpayment TOTAL

of Wages of premium pay of 13th month
on Special pay
Holidays
1. Ronald Hagcod ₱29,020.00 ₱900.00 ₱2,800.00 ₱32,720.00
2. Shyne Grace ₱6,600.00 ---- ---- ₱6,600.00
Dulnuan
TOTAL ₱35,620.00 ₱900.00 ₱2,800.00 ₱39,320.00

Third, the Respondent is required to (a) register its business

with the Regional Labor Office, (b) provide a safety officer in the
workplace, (c) provide a trained first-aider in the workplace, and (d)
organize a health and safety committee, pursuant to Rules 1020,
1030, 1040 and 1963 of the Occupational Health and Safety
Standards (OSH Standards), respectively, to wit:
“Rule 1020. Registration –

1021. General Provisions – Every employer shall register his

business with the regional labor office or authorized representative
having jurisdiction thereof to form part a date bank of all covered
establishments.”

Xxx

“Rule 1030. Training of Personnel in Occupational Safety and

Health –
Xxx

1033. Training and Personnel Complement –

Xxx

(2) At least the following number of supervisors or technical

personnel shall take the required training and shall be appointed
safety man, full time or part-time depending on the number of
workers employed, and the type of workplace whether hazardous
or non-hazardous under Rule 1013 of this Standards. X x x

“Rule 1040. Health and Safety Committee –

Xxx

“1041. General Requirements – In every place of employment, a

health and safety committee shall be organized within sixty (60)
Highland Petroleum Station
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days after this Standards takes effect and for new establishments
within one (1) month from the date the business starts operating. X
xx

“Rule 1963.02. Emergency Medical and Dental Services –

Xxx

(2)For non-hazardous workplaces:

“(a) in small scale industries where the number of workers is from 1

to 99, the employer shall provide the services of full-time first -
aider who maybe one of the workers in the workplace and who has
immediate access to the first – aid’ medicines prescribed under
Rule 1963.01. Where the number of workers is from 51 to 99, an
emergency treatment room shall be provided.”

Pursuant to Section 29, D. O. No. 198-18, any willful failure or

refusal to comply with any of the OSH Standards shall be subject to a
corresponding administrative penalty computed on a per day basis
until full compliance, without prejudice to the filing of a criminal or civil
action, to wit:

“Sec.29. Prohibited Acts and its Corresponding Penalties.-

Xxx

Provision of safety officer and/or OH personnel ₱40,000.00

Establishment of a safety and health committee ₱40,000.00
Registration of establishment to DOLE ₱20,000.00

“xxxxx”

Should there be two (2) or more be non-compliances, all penalties

shall be imposed; provided that the total daily penalty shall not
exceed one hundred thousand pesos (₱ 100,000.00).”

WHEREFORE, premises considered, HIGHLAND

PETROLEUM STATION and/or ENGR. FRANCIS CUYOP is hereby
ORDERED to pay, through this Office, the amount of THIRTY-NINE
THOUSAND THREE HUNDRED TWENTY PESOS (₱39,320.00)
representing the underpayment of wages, non – payment of premium
pay on Special Holidays and underpayment of 13th month pay of
three (3) affected workers within ten (10) days from receipt hereof. In
addition to the said amount, a double indemnity shall be applied
based on the provision of Section 12 of Republic Act No. 8188 which
imposes double indemnity for violation of the prescribed adjustments
in wage rates. Thus, an additional THIRTY-FIVE THOUSAND SIX
HUNDRED TWENTY PESOS (₱ 35,620.00) shall be paid. In sum,
Highland Petroleum Station
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Respondent is hereby ordered to pay the amount of SEVENTY-

FOUR THOUSAND NINE HUNDRED FORTY PESOS (₱74,940.00)

Furthermore, Respondent is hereby ORDERED to submit to

this Office the following documents for evaluation: a) photocopies of
payrolls and DTRs for the period of March 2018 to February 2019;
and b) proof of payment of 13th month pay for C.Y. 2018. Failure to
comply shall result in the filing of appropriate criminal action.

Finally, the Respondent is hereby ORDERED to submit to this

Office proof of compliance on the following: (a) trained First-Aider; (b)
trained Safety Officer; (c) company commitment to comply with OSH
requirements; and (d) Registration under DOLE Rule 1020 from
receipt hereof. Otherwise, an administrative fine amounting to ONE
HUNDRED THOUSAND PESOS (₱100,000.00) on a daily basis until
full compliance.

This Order shall be final and executory unless appealed to the

Secretary of Labor and Employment within then (10) days from
receipt hereof.

A Writ of Execution shall be issued upon finality of this Order.

SO ORDERED.

Tuguegarao City, Cagayan ____________________.

ATTY. EVELYN R. RAMOS

Regional Director

Social Security System (SSS)

Regional Office No. 02
Cedenio Bldg. Luna St,
Tuguegarao City, Cagayan

Pag-Ibig Fund
Del Rosario St. Tuguegarao City,
Cagayan

Phil. Health Insurance II

The Builder’s Place, Dek Rosario St,
Tuguegarao City, Cagayan