The DOLE Decision Should Contain Findings of Employer-Employee Relationship

The DOLE Decision Should Contain Findings of Employer-Employee Relationship

The DOLE conducted a Complaint Inspection at the premises of DXCP Radio Station, which is owned by South Cotabato Communications Corporation. The inspection yielded a finding of violation of labor standards provisions of the Labor Code involving the nine (9) private respondents.

Consequently, the DOLE issued a Notice of Inspection Result directing South Cotabato Communications Corporation, to effect restitution and/or correction of the alleged violations within five (5) days from notice. Due to South Cotabato Communications Corporation failure to comply with its directive, the DOLE scheduled a Summary Investigation at its Regional Office.

However, South Cotabato Communications Corporation failed to appear despite due notice. Another hearing was scheduled wherein South Cotabato Communications Corporation‘s counsel failed to attend due to an alleged conflict in schedule. Instead, his secretary appeared on his behalf to request a resetting, which the DOLE Hearing Officer denied.

Thus, in an Order the DOLE Regional Director directed South Cotabato Communications Corporation to pay complainants the total amount of P759,752.00 representing their claim for wage differentials, 13th month pay differentials, service incentive leave pay, holiday premium pay, and rest day premium pay.

The South Cotabato Communications Corporation however assailed the Decision of the DOLE for lack of finding on employer-employee relationship.

Like the NLRC, the DOLE has the authority to rule on the existence of an employer-employee relationship between the parties, considering that the existence of an employer-employee relationship is a condition sine qua non for the exercise of its visitorial power. Nevertheless, it must be emphasized that without an employer-employee relationship, or if one has already been terminated, the Secretary of Labor is without jurisdiction to determine if violations of labor standards provision had in fact been committed, and to direct employers to comply with their alleged violations of labor standards. As can be gleaned from the above-quoted Order, the Regional Director merely noted the discovery of violations of labor standards provisions in the course of inspection of the DXCP premises. No such categorical determination was made on the existence of an employer-employee relationship utilizing any of the guidelines set forth.

It cannot be stressed enough that the existence of an employer-employee relationship between the parties is essential to confer jurisdiction of the case to the DOLE. Without such express finding, the DOLE cannot assume to have jurisdiction to resolve the complaints of private respondents as jurisdiction in that instance lies with the NLRC.

The said Orders contravene Article VIII, Section 14 of the Constitution, which requires courts to express clearly and distinctly the facts and law on which decisions are based.

A decision that does not clearly and distinctly state the facts and the law on which it is based leaves the parties in the dark as to how it was reached and is especially prejudicial to the losing party, who is unable to pinpoint the possible errors of the court (or quasi-judicial body) for review by a higher tribunal. Accordingly, this Court will not hesitate to strike down decisions rendered not hewing to the Constitutional directive.

(South Cotabato Communications Corporation vs. Hon. Patricia Sto. Tomas, et al., G.R. No. 217575, June 15, 2016)

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