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Maternity Children's Hospital v. Sec of Labor

This case involves a petition by Maternity Children's Hospital challenging a Regional Director's order directing the hospital to pay underpaid wages and ECOLAs to employees. The Supreme Court ruled that under Article 128-b of the Labor Code, as amended, a Regional Director has both visitorial and enforcement powers, including the power to adjudicate money claims regarding labor standards, as long as an employer-employee relationship still exists at the time of the complaint. The Court dismissed the petition regarding current employees but granted it regarding former employees no longer working at the hospital when the complaint was filed.

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Rochelle Joy Solis
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65 views2 pages

Maternity Children's Hospital v. Sec of Labor

This case involves a petition by Maternity Children's Hospital challenging a Regional Director's order directing the hospital to pay underpaid wages and ECOLAs to employees. The Supreme Court ruled that under Article 128-b of the Labor Code, as amended, a Regional Director has both visitorial and enforcement powers, including the power to adjudicate money claims regarding labor standards, as long as an employer-employee relationship still exists at the time of the complaint. The Court dismissed the petition regarding current employees but granted it regarding former employees no longer working at the hospital when the complaint was filed.

Uploaded by

Rochelle Joy Solis
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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TITLE G.R. No.

78909

Maternity Children's Hospital v. Sec of


Labor

PONENTE:Medialdea, J. DATE: June 30, 1989

DOCTRINE:

With the promulgation of PD 850, Regional Directors were given enforcement powers, in addition to visitorial
powers. Article 127, as amended, provided in part:

"SEC. 10. Article 127 of the Code is hereby amended to read as follows:

'Art. 127. Visitorial and enforcement powers. —

'xxx xxx xxx;

'(b) The Secretary of Labor 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 based on the findings of labor regulation
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 order.'

FACTS:

Petitioner is a semi-government hospital, managed by the Board of Directors of the Cagayan de Oro Women's
Club and Puericulture Center, headed by Mrs. Antera Dorado, as holdover President. The hospital derives its
finances from the club itself as well as from paying patients, averaging 130 per month. It is also partly subsidized
by the Philippine Charity Sweepstakes Office and the Cagayan De Oro City government.
Petitioner has forty-one (41) employees. Aside from salary and living allowances, the employees are given food,
but the amount spent therefor is deducted from their respective salaries
On May 23, 1986, ten (10) employees of the petitioner employed in different capacities/positions filed a complaint
with the Office of the Regional Director of Labor and Employment, Region X, for underpayment of their salaries
and ECOLAS, which was docketed as ROX Case No. CW-71-86.
The Regional Director issued and order based on the reports of the Labor Standard and Welfare Officers, directing
payment of P723, 888.58 representing underpayment of wages and ECOLAs to all the petitioner’s employees.
Petitioner appealed to the Minister of Labor and Employment which modified the decision as to the period for the
payment ECOLAs only. A motion for reconsideration was filed by petitioner and was denied by the Secretary of
Labor.

ISSUE/S

whether or not the Regional Director had jurisdiction over the case and if so, the extent of coverage of any award
that should be forthcoming, arising from his visitorial and enforcement powers under Article
128 of the Labor Code.

RULING

Under the present rules, a Regional Director exercises both visitorial and enforcement power over labor standards
cases, and is therefore empowered to adjudicate money claims, provided there still exists an employer-employee
relationship, and the findings of the regional office is not contested by the employer concerned. (Art.
128-b of the Labor Code, as amended by E.O. No. 111)

Even in the absence of E.O. No. 111, Regional Directors already had enforcement powers over money claims,
effective under P.D. No. 850, issued on December 16, 1975, which transferred labor standards cases from the
arbitration system to the enforcement system.

DISPOSITIVE PORTION:

ACCORDINGLY, this petition should be dismissed, as it is hereby DISMISSED, as regards all persons still
employed in the Hospital at the time of the filing of the complaint, but GRANTED as regards those employees no
longer employed at that time.|||

ROCHELLE

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