RULES ON THE DISPOSITION OF LABOR STANDARDS CASES IN
THE REGIONAL OFFICES. administration and enforcement of labor standards within their
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:chanroblesvirtuallawlibrary
The provisions of Article 217 of this Code to the contrary
notwithstanding and in cases where the relationship of employer-
employee still exists, the Secretary of Labor and Employment or his
duly authorized representatives shall have the power to order and
administer, after due notice and hearing, compliance with the labor
standards provisions of this Code and other labor legislations based
on the findingsof labor regulations officers or industrial safety
engineers made in the course of inspection, and to issue writs of
execution to the appropriate authority for the enforcement of their
orders, exceptin cases where the employer contests the findings of the
labor regulations officer and raises issues which cannot be resolved
without considering evidentiary matters that are not verifiable in the
normalcourse of inspection.
Section 3. Authorized representatives of the Secretary of Labor and
Employment. The Regional Directors shall be the duly authorized
representatives of the Secretary of Laborand Employment in the
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 Codeand of any labor law, wage order or rules and regulations
issued pursuant thereto.
Section 5. Construction. In order to carry out the objectives of
theConstitution and the Labor Code and to aid the partiesin arriving at
a fair, just, expeditious and economical settlement of labor disputes,
these Rules shall liberally construed.
Section 6. Suppletory application of Rules of Court. In the absence
of any applicable provisions of the Rules of Court may be applied in a
suppletory character.
Section 7. Labor Standards; definitions. As used in these Rules
labor standards shall refer to the Minimum requirements prescribed
by existing laws, rules and regulations and other issuances relating to
wages, hours of work, cost of living allowances and other monetary
and welfarebenefits, including those set by occupational safety and
health standards.
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.
1

Section 2. Complaint inspection. All such complaints shall
immediately be forwarded to the Regional Director who shall refer the
case to the appropriate unit in the Regional Office for assignment to a
Labor Standards and Welfare Officer(LSWO) for field inspection.When
the field inspection does not produce the desired results, the Regional
Director shall summon the parties for summary investigation to
expedite the disposition of the case.The investigation shall be
concluded within fifteen (15) calendar days from the date of the first
hearing and a proposed Order disposing of the case shall be
submitted to the Regional Director within three (3) calendar days from
the conclusion of the investigation.
Section 3. Complaints where no employer-employee relationship
actually exists. Where employer-employee relationship no longer
exists by reason of the fact that it has already been severed, claims for
payment of monetary benefits fall within the exclusive and original
jurisdiction of the labor arbiters.Accordingly, if on the face of the
complaint, it can be ascertained that employer-employee relationship
no longer exists, the case, whether or not accompanied by an
allegations of illegal dismissal, shall immediately be endorsed by the
Regional Director to the appropriateBranch of the National Labor
Relations Commission (NLRC).
Section 4. Service of notices and orders. Notices and copies of
orders shall be served onthe parties or their duly authorized
representatives at their last known address or, if they are represented
by counsel, through the latter.
In the case of personal service, the process server shall submit his
return within seventy-two (72) hours from the date of service stating
legibly in the return his name, the mode of service, the names of the
authorized persons served and the date of actual receipt of the
document.If no service was effected, the serving officer shall state in
the return the reason therefor.The return shall from part of the records
of the case.
Section 5. Inspection report. Where the case is assigned to a LSWO
for inspection, thelatter shall conductthe necessary investigation and
submit a reportthereof to the Regional Director, through the Chief of
the Labor Standards Enforcement Division (LSED), within twenty-four
(24) hours after the investigation or within a reasonable period as may
determined by the Regional Director.The report shall specify the
violations discovered, if any, together with his recommendation and
computation of the amount due each worker.
Section 6. Coverage of complaint inspection. A complaint inspection
shall not be limited to the specific allegations or violations raised by
the complainants/workers but shall be a thorough inquiry into and
verification of the compliance by employer with existing labor
standards and shall cover all workers similarly situated.
Section 7. Restitution.
(a) Where the employer has agreedto make thenecessary restitutions
of violations discovered in the course of inspection, such restitutions
may be effected at the plant-level within five (5) calendar days from
receipt of the inspection results by the employer or his authorized
representative;
(b) Plant-level restitutions may be effected for money claims not
exceeding Fifty Thousand Pesos (P50,000.00).A report of the
restitutions shall be immediately submitted to the Regional Director for
verification and confirmation.In case the Regional Director finds that
the restitutions effected at the plant-level are not in order, he may
direct the LSED Chief to check the correctness of the restitution report;
(c) Restitutions in excess of the aforementioned amount shall be
effected at the Regional Office or at the worksite subject to the prior
approval of the Regional Director.
Section 8. Compromise Agreement. Should the parties arrive at an
agreement as to the whole or part of the dispute, said agreement shall
reduced in writing and signed by the parties in the presence of the
Regional Director or his duly authorized representative.
Section 9. Unclaimed amount. The Regional Director shall hold in
2
trust under a special account in behalf of the workers.Any amount not
claimed or collected by the workers a period of two (2) years from the
time of restitution shall be held as s special fund of the Department of
Labor and Employment to be used exclusively in the administration
and enforcement of labor laws provided in Article 129 of the Labor
Code.
Section 10. Follow-up inspection. After the employer has submitted
proof of compliance with reported violations, follow-up verification
inspection shall forthwith be conducted if restitution is effected in the
absence of the of the LSWO.
Section 11. Hearing. Where no proof of compliance is submitted by
the employer after seven (7) calendar days from receipt of the
inspection results, the Regional Director shall summon the employer
and the complainants to a summary investigation.In regular routine
inspection cases however, such investigation shall be conducted
where no complete field investigation shall be conducted where no
completefield investigation can be made for reasons attributableto the
fault of the employer or his representatives, such as those but not
limited to instances when the field inspections are denied to instances
when thefield inspectors are denied access to the premises,
employment records, or workers, of the employer.
Section 12. Nature of proceedings. The proceedings before the
Regional Office shall be summary and non-litigious in nature.Subject
to the requirements of due process, the technicalities of law and
procedure and the rules governing admissibility and sufficiency of
evidence obtaining in the courts of law shall not strictly apply
thereto.The Regional Office may, however, avail itself of all reasonable
means to ascertain the facts or the controversy speedily and
objectively,including ocular inspection and examination of well
informed persons.Substantial evidence, whenever necessary shall be
sufficient to supporta decision or order.
Section 13. Prohibited acts. It shall be unlawful for any person or
entity to obstruct , impede, delay or otherwise render ineffectivethe
Order of the Secretary of Labor and Employment or this duly
authorized representatives issuedpursuant to the authority granted
under these Rules,and no inferior court or entity shall issue temporary
or permanent injunction or restraining order or otherwise assume
jurisdiction over any case involvingthe enforcement orders issued in
accordance with these Rules.
The foregoing notwithstanding, the responsible party, be it the worker,
union, employer, or the authorized representative of any of the
foregoing shall be subject to administrative sanctions as determined
by the Secretary or the Regional Director.
Section 14. Failure to appear. -Where the employer or the complainant
fails or refuses to appear during the investigation, despite proper
notice, for two (2) consecutive hearings without justifiable reasons, the
hearing officer may recommend to the Regional Director the issuance
of a compliance order based on the evidence at hand or an order of
dismissal of the complaint, as the case may be.
Section 15. Postponement of hearing. The parties and their counsel
or representative s appearing before the Regional Office shall be
prepared for continuous hearings.Postponements shall be allowed
only upon meritorious groundsand shall be limited to not more than
two (2) postponements but in no case to exceed a total of ten (10)
calendar days.In the event of such postponements, the Regional
Office shall set two or more dates of hearing in advance.
Section 16. Records of proceedings. The proceedings before the
Regional Office need not be recorded by stenographers.The hearing
officer shall, however, make a written summary of the proceedings
including the substance of the positions of the parties and the
evidence presented which shall for part of the records of the case.The
written summary shall be signed by the parties.
Section 17. Motion to dismiss. Any motion to dismiss a complaint on
the grounds that the Regional Office has no jurisdiction over the
complaint or thatthe cause of action is barred by prior judgment or
prescription, shall be immediately acted upon by the Regional Director
3
if the facts strongly indicate dismissal.Any motion to dismiss with no
such indication shall disposed of only in the final determination of the
case on the merits.
Section 18. Compliance order. If the Regional Director finds after
hearing that violations have been committed, he shall issue an Order
directing the employer to restitute other corrective measures within ten
(10) calendar days upon receipt of the Order and to submitproof of
compliance.The Order shall specify the amount due each worker and
shall include the computations on which the Order was based.
Section 19. Motion for reconsideration. The aggrieved party may file
a motion for reconsideration of the Order of the Regional Office within
seven (7) calendar days from receipt by him of a copy of said Order.
The Regional Director shall resolve the motion for reconsideration
within ten (10) calendar days from receipt thereof. A motion for
reconsideration filed beyond the seven-day reglementary period shall
be treated as an appeal if filed within the ten-day reglementary period
shall be treated as an appeal if filed within the ten-day reglementary
period for appeal, but subject to the requirements for the perfection of
an appeal.
No second motion for reconsideration shall be entertained in any case.
Section 20. Disposition of routine inspection cases. The disposition of
regular inspection cases shall substantially conform with the provisions
of this Rules.
RULE III
ENDORSEMENT OF CASES TO THE NATIONAL LABOR
RELATIONS COMMISSION (NLRC)
Section 1. Contested cases.
(a) In cases where the employercontests the findings of the Labor
Standards and Welfare Officersand the issues cannotbe resolved
without considering evidentiary matters that are not verifiablein the
normal course of inspection, the Regional Director shall endorsesuch
case to the appropriate Arbitration Branch of the National Labor
Relations Commission;
(b) The employer shall raise such objections during the hearing of the
case or at any time after receipt of the noticeof inspection results.The
issue of whether or not the case shall be endorsed to the NLRC shall
be resolved by the Regional Directorin the final disposition of the case.
Section 2. Labor Standards and Welfare Officers (LSWOs). As
witnesses in the cases that have been endorsed to the NLRC, the
LSWOs who participatedin the investigation shall make themselves
available as witnesses in the proceedings before theLabor Arbiters
concerned.
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 daysfrom receipt thereof.
Section 2. Grounds for appeal. The aggrieved party may appeal to
the Secretary the Order of the Regional Directoron any of the following
grounds:chanroblesvirtuallawlibrary
(a) there is a prima facie evidence of abuse of discretion on the part of
the Regional Director;
(b) the Order was secured through fraud, coercion or graft and
corruption;
(c) the appeal is made purely on questions of law; and
(d) serious errors in the findings of facts were committed which, if not
corrected, would cause grave irreparable damageor injury to the
appellant.
Section 3. Where to file. The appeal shall be filed in five (5) legibly
typewritten copies with the Regional Office which issued the
Order.Subject to the immediately succeeding section, the appeal shall
not be deemed perfected if it is filed with any other office or entity.
Section 4. Requisites of appeal.
(a) The appeal shall be filed within the reglementary period as provide
4
in Section 1 of this Rule.It shall be under accompanied by a
Memorandum of Appeal which shall state the dateappellant received
the Order and the grounds relied upon arguments in support thereof;
(b) The appellee may file with the Regional Office his reply or
opposition to the appeal within ten (10) calendar daysfrom receipt
thereof.Failure on the partof the appellee to file his reply or opposition
within the said period shall be construed as a waiver on his part to file
the same.
Section 5. Transmittal of records on appeal. Within three (3)
calendar days after the filing of the reply or opposition of the appellee
or after the expiration of the period to file the same, the entire records
of the case, together with the Memorandum of Appeal, shall be
transmitted by the Regional Office concerned to the Office of the
Secretary of Labor and Employment.
Section 6. Records of case. The records of the case shall contain,
among others, a complete narration of what transpired in the
conference/hearing in the form of minutes including all original
pleadings, notices, proof of service of the decision or order and other
papers which shall all be consecutively numbered.Only records of
cases on appeal, properly numbered with complete minutes, shall be
accepted by the Office of the Secretary of Labor and Employment.
Section 7. Frivolous/dilatory appeals. To discouragefrivolous or
dilatory appeals, the Secretary of Labor and Employment may impose
a reasonable penalty, including fine or censure, upon the erring
parties.
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 proofof service,
the Regional Director shall, motu proprio or upon proper motion by any
interested party, issue the writ of execution which shall be served by
the Regional Sheriff.In the enforcement of the writ of execution, the
assistance of the law enforcement authorities may be sought;
(b) A writ of execution may be recalled subsequentto its issuance, if it
is shown that an appeal has been perfected in accordance with these
Rules.
Section 2. Execution before perfection of appeal or pending appeal. -
During the period of appeal and before an appeal is perfected, or
during the pendency of an appeal, execution may, upon proper motion,
also issue where it is shown that compliance with the order of the
Regional Director cannot be secured unless this is done.The writ may
be stayed at the instance of a losing party by the filing of a
supersedeas bond in an amount which is adequate to protect the
interests of the prevailing party, subject to the approval of the Regional
Director before the perfection of the appeal, or Secretary of Labor and
Employment during the pendency of the appeal.
Section 3. Execution after motion for reconsideration. - Where a
motion for Reconsideration of the compliance order is filed ion
accordance with Rule II of these Rules, the compliance order shall be
executory after ten (10) calendar days from receipt of the resolution of
such Motion.
Section 4. Enforcement of writ. - In enforcing a writ of execution, the
sheriff or other office acting as such shall be guidedby the provisions
of Rule 39 of the Rules of Court or the Sheriffs Manual and may avail
of such other means as may be necessary in the execution thereof.
Section 5. Finality of decisions of the Secretary of Labor and
Employment. - The decisions, orders or resolutions of the Secretary of
Labor and Employment shall become final and executory after ten (10)
calendar days from receipt thereof.Within three (3) calendar days from
receipts of the records of the case, the Regional Director shall issue a
writ of execution to enforce the order or decision of the Secretary.
The filing of petition for certiorari beforethe Supreme Court shall not
stay the execution of the order or decision unless the aggrieved party
5
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 LSWOshall immediately or within twenty-four (24)
hours after the inspection/investigation submit his report to the
Regional Director thru the LSED Chief specifying the violations
discovered and his recommendations, except when the submission of
a report within the period cannot be made for reasons beyond the
control of the LSWO.
Section 2. Correction in imminent danger cases. - Where the employer
is willing to make the necessary rectification, the same may be
effected at the plant-level within twenty-four (24) hours in cases where
the conditions obtaining in the workplace pose grave and imminent
dangerto the lives and health of the workers and/or property of the
employer, e.g., boiler tube leakage; defective safety valves; pressure
gauges and water column; weak machinery foundations; and other
analogous circumstances.
Section 3. Non-imminent danger cases. - Where the conditions is not
of the types falling under Section 2 of this Rule, e.g., poor ventilation,
housekeeping, inadequate personnel protective equipment and other
analogous circumstances. the LSWO shall determine reasonable
periods of compliance depending on the gravity of the hazards
needing corrections or the period neededto come into compliance
safety and health standards.
Section 4. Work Stoppage. -
(a) The LSWO shall include in his report recommendation for the
issuance of an Order of stoppage of work or suspension of operation
of any unit or department or the establishment if there is exist in the
workplace a condition that poses grave and imminent danger to the
health and safety of the workers which cannot be corrected.Even
before he submits his recommendation to the Regional Director, the
LSWO shall notify and confer with the employer regarding the results
of the inspection and recommend the institution of remedial measures;
(b) The Regional Director may, upon the recommendation of the
LSWO and the LSED Chief, immediately issue the appropriate Order
of stoppage or suspension of operation together with the notice of
hearing.
Section 5. Hearing. -Immediately or within twenty-four (24) hoursfrom
the issuance of the Order of stoppage of operation or suspension, a
hearing shall be conducted with the assistance of the
LSWOconcerned to determine whether the Order for the stoppage of
work or suspension shall be lifted or not.The proceedings shall be
terminated within seventy-two (72) hoursand copy of such Order or
resolution shall be immediately furnished the Secretary of Labor and
Employment.In case the violation is attributable to the fault of the
employer, the latter shall pay his workers all the monetary benefits to
which they are entitled during the period of such stoppage or
suspension of work.
Section 6. Review by the Secretary. -
(a) The Secretary at his own initiative or upon therequest of the
employer and/or employee, may review the order of the Regional
Director which shall be immediately final and executory unless stayed
by the Secretary upon posting by the employer of a reasonable cash
or performance bond as fixed by the Regional Director;
(b) In aid of his review power, the Secretary may direct the Bureau of
Working Conditions to evaluate the findings or order of the Regional
Director.The Order of the Secretary shall be final and executory.
6
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
purposeof re-litigating the same case.

Section 2. Repeal of prior inconsistent issuances. - The provisions of

existing rules, regulations, policy instructions, and other issuances
which are inconsistent with these Rules are hereby repealed or
amended accordingly.

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