RULES ON THE DISPOSITION OF LABOR STANDARDS CASES IN THE

REGIONAL OFFICES

Pursuant to the provisions of Article 5 of the Presidential Decree No. 442, otherwise
known as the Labor Code of the Philippines, as amended, the following rules are
hereby promulgated to govern the enforcement of labor standards provisions in the
Regional Offices.
RULE I
TITLE CONSTRUCTION AND DEFINITION
Section 1. Title of the Rules. These rules shall be known as the "Rules on the
Disposition of Labor Standards Cases in the Regional Offices."
Section 2. Enforcement authority. The statutory basis of the authority of the
Regional Offices to administer and enforce labor standards is found in Article 128 (b)
of the Labor Code, as amended, which provides that:
The provisions of Article 217 of this Code to the contrary notwithstanding and in
cases where the relationship of employer-employee still exists, the Secretary of
Labor and Employment or his duly authorized representatives shall have the power
to order and administer, after due notice and hearing, compliance with the labor
standards provisions of this Code and other labor legislations based on the findings
of labor regulations officers or industrial safety engineers made in the course of
inspection, and to issue writs of execution to the appropriate authority for the
enforcement of their orders, except in cases where the employer contests the
findings of the labor regulations officer and raises issues which cannot be resolved
without considering evidentiary matters that are not verifiable in the normal course
of inspection.
Section 3. Authorized representatives of the Secretary of Labor and
Employment. The Regional Directors shall be the duly authorized representatives
of the Secretary of Labor and Employment in the administration and enforcement of
labor standards within their respective territorial jurisdictions.
Section 4. Visitorial Power. The Regional Director or their authorized
representatives, shall have access to employers records and premises at any time
of the day or night whenever work is being undertaken therein, and the right to
copy there from, to question any employee and investigate any fact, condition or
matter which may be necessary to determine violations or may aid in the
enforcement of the Labor Code and of any labor law, wage order or rules and
regulations issued pursuant thereto.
Section 5. Construction. In order to carry out the objectives of the Constitution
and the Labor Code and to aid the parties in arriving at a fair, just, expeditious and
economical settlement of labor disputes, these Rules shall liberally construed.

Section 6. Suppletory application of Rules of Court. In the absence of any

applicable provisions of the Rules of Court may be applied in a suppletory character.
Section 7. Labor Standards; definitions. As used in these Rules labor
standards shall refer to the Minimum requirements prescribed by existing laws,
rules and regulations and other issuances relating to wages, hours of work, cost of
living allowances and other monetary and welfare benefits, including those set by
occupational safety and health standards.
RULE II
MONEY CLAIMS ARISING FROM COMPLAINT/ROUTINE INSPECTION
Section 1. Title and caption. The title and caption of complaints involving
money claims brought to the Regional Office arising from alleged violations of labor
standards shall substantially comply with the form prescribed by the Regional
Office.
Section 2. Complaint inspection. All such complaints shall immediately be
forwarded to the Regional Director who shall refer the case to the appropriate unit
in the Regional Office for assignment to a Labor Standards and Welfare Officer
(LSWO) for field inspection. When the field inspection does not produce the desired
results, the Regional Director shall summon the parties for summary investigation to
expedite the disposition of the case. The investigation shall be concluded within
fifteen (15) calendar days from the date of the first hearing and a proposed Order
disposing of the case shall be submitted to the Regional Director within three (3)
calendar days from the conclusion of the investigation.
Section 3. Complaints where no employer-employee relationship actually
exists. Where employer-employee relationship no longer exists by reason of the
fact that it has already been severed, claims for payment of monetary benefits fall
within the exclusive and original jurisdiction of the labor arbiters. Accordingly, if on
the face of the complaint, it can be ascertained that employer-employee
relationship no longer exists, the case, whether or not accompanied by an
allegations of illegal dismissal, shall immediately be endorsed by the Regional
Director to the appropriate Branch of the National Labor Relations Commission
(NLRC).
Section 4. Service of notices and orders. Notices and copies of orders shall be
served on the parties or their duly authorized representatives at their last known
address or, if they are represented by counsel, through the latter.
In the case of personal service, the process server shall submit his return within
seventy-two (72) hours from the date of service stating legibly in the return his
name, the mode of service, the names of the authorized persons served and the
date of actual receipt of the document. If no service was effected, the serving officer
shall state in the return the reason therefor. The return shall from part of the records
of the case.

Section 5. Inspection report. Where the case is assigned to a LSWO for

inspection, the latter shall conduct the necessary investigation and submit a report
thereof to the Regional Director, through the Chief of the Labor Standards
Enforcement Division (LSED), within twenty-four (24) hours after the investigation or
within a reasonable period as may determined by the Regional Director. The report
shall specify the violations discovered, if any, together with his recommendation
and computation of the amount due each worker.
Section 6. Coverage of complaint inspection. A complaint inspection shall not
be limited to the specific allegations or violations raised by the
complainants/workers but shall be a thorough inquiry into and verification of the
compliance by employer with existing labor standards and shall cover all workers
similarly situated.
Section 7. Restitution.
(a) Where the employer has agreed to make the necessary restitutions of violations
discovered in the course of inspection, such restitutions may be effected at the
plant-level within five (5) calendar days from receipt of the inspection results by
the employer or his authorized representative;
(b) Plant-level restitutions may be effected for money claims not exceeding Fifty
Thousand Pesos (P50,000.00).A report of the restitutions shall be immediately
submitted to the Regional Director for verification and confirmation. In case the
Regional Director finds that the restitutions effected at the plant-level are not in
order, he may direct the LSED Chief to check the correctness of the restitution
report;
(c) Restitutions in excess of the aforementioned amount shall be effected at the
Regional Office or at the worksite subject to the prior approval of the Regional
Director.
Section 8. Compromise Agreement. Should the parties arrive at an agreement
as to the whole or part of the dispute, said agreement shall reduced in writing and
signed by the parties in the presence of the Regional Director or his duly authorized
representative.
Section 9. Unclaimed amount. The Regional Director shall hold in trust under a
special account in behalf of the workers. Any amount not claimed or collected by
the workers a period of two (2) years from the time of restitution shall be held as s
special fund of the Department of Labor and Employment to be used exclusively in
the administration and enforcement of labor laws provided in Article 129 of the
Labor Code.
Section 10. Follow-up inspection. After the employer has submitted proof of
compliance with reported violations, follow-up verification inspection shall forthwith
be conducted if restitution is effected in the absence of the LSWO.

Section 11. Hearing. Where no proof of compliance is submitted by the

employer after seven (7) calendar days from receipt of the inspection results, the
Regional Director shall summon the employer and the complainants to a summary
investigation. In regular routine inspection cases however, such investigation shall
be conducted where no complete field investigation shall be conducted where no
complete field investigation can be made for reasons attributable to the fault of the
employer or his representatives, such as those but not limited to instances when
the field inspections are denied to instances when the field inspectors are denied
access to the premises, employment records, or workers, of the employer.
Section 12. Nature of proceedings. The proceedings before the Regional Office
shall be summary and non-litigious in nature. Subject to the requirements of due
process, the technicalities of law and procedure and the rules governing
admissibility and sufficiency of evidence obtaining in the courts of law shall not
strictly apply thereto. The Regional Office may, however, avail itself of all
reasonable means to ascertain the facts or the controversy speedily and objectively,
including ocular inspection and examination of well informed persons. Substantial
evidence, whenever necessary shall be sufficient to support a decision or order.
Section 13. Prohibited acts. It shall be unlawful for any person or entity to
obstruct, impede, delay or otherwise render ineffective the Order of the Secretary of
Labor and Employment or this duly authorized representatives issued pursuant to
the authority granted under these Rules, and no inferior court or entity shall issue
temporary or permanent injunction or restraining order or otherwise assume
jurisdiction over any case involving the enforcement orders issued in accordance
with these Rules.
The foregoing notwithstanding, the responsible party, be it the worker, union,
employer, or the authorized representative of any of the foregoing shall be subject
to administrative sanctions as determined by the Secretary or the Regional Director.
Section 14. Failure to appear. -Where the employer or the complainant fails or
refuses to appear during the investigation, despite proper notice, for two (2)
consecutive hearings without justifiable reasons, the hearing officer may
recommend to the Regional Director the issuance of a compliance order based on
the evidence at hand or an order of dismissal of the complaint, as the case may be.
Section 15. Postponement of hearing. The parties and their counsel or
representative s appearing before the Regional Office shall be prepared for
continuous hearings. Postponements shall be allowed only upon meritorious
grounds and shall be limited to not more than two (2) postponements but in no case
to exceed a total of ten (10) calendar days. In the event of such postponements, the
Regional Office shall set two or more dates of hearing in advance.
Section 16. Records of proceedings. The proceedings before the Regional
Office need not be recorded by stenographers. The hearing officer shall, however,
make a written summary of the proceedings including the substance of the
positions of the parties and the evidence presented which shall for part of the
records of the case. The written summary shall be signed by the parties.

Section 17. Motion to dismiss. Any motion to dismiss a complaint on the

grounds that the Regional Office has no jurisdiction over the complaint or that the
cause of action is barred by prior judgment or prescription, shall be immediately
acted upon by the Regional Director if the facts strongly indicate dismissal. Any
motion to dismiss with no such indication shall disposed of only in the final
determination of the case on the merits.
Section 18. Compliance order. If the Regional Director finds after hearing that
violations have been committed, he shall issue an Order directing the employer to
restitute other corrective measures within ten (10) calendar days upon receipt of
the Order and to submit proof of compliance. The Order shall specify the amount
due each worker and shall include the computations on which the Order was based.
Section 19. Motion for reconsideration. The aggrieved party may file a
motion for reconsideration of the Order of the Regional Office within seven (7)
calendar days from receipt by him of a copy of said Order.
The Regional Director shall resolve the motion for reconsideration within ten (10)
calendar days from receipt thereof. A motion for reconsideration filed beyond the
seven-day reglementary period shall be treated as an appeal if filed within the tenday 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 employer contests the findings of the Labor Standards and
Welfare Officers and the issues cannot be resolved without considering
evidentiary matters that are not verifiable in the normal course of inspection,

the Regional Director shall endorse such case to the appropriate Arbitration
Branch of the National Labor Relations Commission;
(b) The employer shall raise such objections during the hearing of the case or at
any time after receipt of the notice of inspection results. The issue of whether
or not the case shall be endorsed to the NLRC shall be resolved by the Regional
Director in the final disposition of the case.
Section 2. Labor Standards and Welfare Officers (LSWOs). As witnesses in
the cases that have been endorsed to the NLRC, the LSWOs who participated in the
investigation shall make themselves available as witnesses in the proceedings
before the Labor Arbiters concerned.
RULE IV
APPEALS
Section 1. Appeal. The order of the Regional Director shall be final and
executory unless appealed to the Secretary of Labor and Employment within ten
(10) calendar days from receipt thereof.
Section 2. Grounds for appeal. The aggrieved party may appeal to the
Secretary the Order of the Regional Director on any of the following grounds:
(a) there is a prima facie evidence of abuse of discretion on the part of the Regional
Director;
(b) the Order was secured through fraud, coercion or graft and corruption;
(c) the appeal is made purely on questions of law; and
(d) serious errors in the findings of facts were committed which, if not corrected,
would cause grave irreparable damage or injury to the appellant.
Section 3.
copies with
succeeding
other office

Where to file. The appeal shall be filed in five (5) legibly typewritten
the Regional Office which issued the Order. Subject to the immediately
section, the appeal shall not be deemed perfected if it is filed with any
or entity.

Section 4. Requisites of appeal.

(a) The appeal shall be filed within the reglementary period as provide in Section 1
of this Rule. It shall be under accompanied by a Memorandum of Appeal which
shall state the date appellant received the Order and the grounds relied upon
arguments in support thereof;
(b) The appellee may file with the Regional Office his reply or opposition to the
appeal within ten (10) calendar days from receipt thereof. Failure on the part of
the appellee to file his reply or opposition within the said period shall be
construed as a waiver on his part to file the same.

Section 5. Transmittal of records on appeal. Within three (3) calendar days

after the filing of the reply or opposition of the appellee or after the expiration of the
period to file the same, the entire records of the case, together with the
Memorandum of Appeal, shall be transmitted by the Regional Office concerned to
the Office of the Secretary of Labor and Employment.
Section 6. Records of case. The records of the case shall contain, among others,
a complete narration of what transpired in the conference/hearing in the form of
minutes including all original pleadings, notices, proof of service of the decision or
order and other papers which shall all be consecutively numbered. Only records of
cases on appeal, properly numbered with complete minutes, shall be accepted by
the Office of the Secretary of Labor and Employment.
Section 7. Frivolous/dilatory appeals. To discourage frivolous or dilatory
appeals, the Secretary of Labor and Employment may impose a reasonable penalty,
including fine or censure, upon the erring parties.
RULE V
EXECUTION
Section 1. Issuance of writ.
(a) If no appeal is perfected within the reglementary period as provided in Rule V of
these Rules, as evidenced by proof of service, the Regional Director shall, motu
proprio or upon proper motion by any interested party, issue the writ of
execution which shall be served by the Regional Sheriff. In the enforcement of
the writ of execution, the assistance of the law enforcement authorities may be
sought;
(b) A writ of execution may be recalled subsequent to its issuance, if it is shown
that an appeal has been perfected in accordance with these Rules.
Section 2. Execution before perfection of appeal or pending appeal. During the period of appeal and before an appeal is perfected, or during the
pendency of an appeal, execution may, upon proper motion, also issue where it is
shown that compliance with the order of the Regional Director cannot be secured
unless this is done. The writ may be stayed at the instance of a losing party by the
filing of a supersede as bond in an amount which is adequate to protect the
interests of the prevailing party, subject to the approval of the Regional Director
before the perfection of the appeal, or Secretary of Labor and Employment during
the pendency of the appeal.
Section 3. Execution after motion for reconsideration. - Where a motion for
Reconsideration of the compliance order is filed in accordance with Rule II of these
Rules, the compliance order shall be executory after ten (10) calendar days from
receipt of the resolution of such Motion.
Section 4. Enforcement of writ. - In enforcing a writ of execution, the sheriff or
other office acting as such shall be guided by the provisions of Rule 39 of the Rules

of Court or the 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 before the Supreme Court shall not stay the
execution of the order or decision unless the aggrieved party secures a temporary
restraining order from the court within fifteen (15) calendar days from the date of
finality of the order or decision or posts a supersede as bond in an amount which is
adequate to protect the interests of the prevailing party subject to the approval of
the Secretary.
RULE VI
HEALTH AND SAFETY CASES
Section 1. Inspection report. -In occupational safety and health inspection, the
LSWO shall immediately or within twenty-four (24) hours after the
inspection/investigation submit his report to the Regional Director thru the LSED
Chief specifying the violations discovered and his recommendations, except when
the submission of a report within the period cannot be made for reasons beyond the
control of the LSWO.
Section 2. Correction in imminent danger cases. - Where the employer is
willing to make the necessary rectification, the same may be effected at the plantlevel within twenty-four (24) hours in cases where the conditions obtaining in the
workplace pose grave and imminent danger to the lives and health of the workers
and/or property of the employer, e.g., boiler tube leakage; defective safety valves;
pressure gauges and water column; weak machinery foundations; and other
analogous circumstances.
Section 3. Non-imminent danger cases. - Where the conditions is not of the
types falling under Section 2 of this Rule, e.g., poor ventilation, housekeeping,
inadequate personnel protective equipment and other analogous circumstances. the
LSWO shall determine reasonable periods of compliance depending on the gravity
of the hazards needing corrections or the period needed to come into compliance
safety and health standards.
Section 4. Work Stoppage. (a) The LSWO shall include in his report recommendation for the issuance of an
Order of stoppage of work or suspension of operation of any unit or department or
the establishment if there is exist in the workplace a condition that poses grave and
imminent danger to the health and safety of the workers which cannot be corrected.
Even before he submits his recommendation to the Regional Director, the LSWO

shall notify and confer with the employer regarding the results of the inspection and
recommend the institution of remedial measures;
(b) The Regional Director may, upon the recommendation of the LSWO and the
LSED Chief, immediately issue the appropriate Order of stoppage or suspension of
operation together with the notice of hearing.
Section 5. Hearing. -Immediately or within twenty-four (24) hours from the
issuance of the Order of stoppage of operation or suspension, a hearing shall be
conducted with the assistance of the LSWO concerned to determine whether the
Order for the stoppage of work or suspension shall be lifted or not. The proceedings
shall be terminated within seventy-two (72) hours and copy of such Order or
resolution shall be immediately furnished the Secretary of Labor and Employment.
In case the violation is attributable to the fault of the employer, the latter shall pay
his workers all the monetary benefits to which they are entitled during the period of
such stoppage or suspension of work.
Section 6. Review by the Secretary. (a) The Secretary at his own initiative or upon the request of the employer and/or
employee, may review the order of the Regional Director which shall be immediately
final and executory unless stayed by the Secretary upon posting by the employer of
a reasonable cash or performance bond as fixed by the Regional Director;
(b) In aid of his review power, the Secretary may direct the Bureau of Working
Conditions to evaluate the findings or order of the Regional Director. The Order of
the Secretary shall be final and executory.
Section 7. Other measures to secure compliance. - The Regional Director, in
addition to measures available to him to secure compliance with labor standards,
particularly those involving technical safety and general occupational safety
standards, may furnish a copy of the inspection findings to the insurance company
of the employer, the power company, the municipal authorities which issue
business licenses/permits, the labor union in the enterprise concerned, and to other
government offices to further persuade voluntarily compliance with existing labor
standards.
RULES VII
GENERAL PROVISIONS
Section 1. Final compliance order. - Where a compliance order issued by a
Regional Director on a case has become final, no entity or official of the Department
shall entertain or re-open such case for the purpose of re-litigating the same case.
Section 2. Repeal of prior inconsistent issuances. - The provisions of existing
rules, regulations, policy instructions, and other issuances which are inconsistent
with these Rules are hereby repealed or amended accordingly.

Section 3. Effectivity. - These Rules shall take effect fifteen (15) days after
announcement of their adoption in newspapers of general circulation.
16 September 1987.
(Sgd.) FRANKLIN M. DRILON
Secretary