Updated Format for Compliance Order re Labor Standards Cases

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Case Republic of the Philippines

Heading/Title DEPARTMENT OF LABOR AND EMPLOYMENT
Regional Office XI
Davao City

IN RE: JOINT ASSESSMENT CONDUCTED AT

ABC CONTRACTING AGENCY CASE NO. ROXI-00-JA-2015-01-111-G

Mr. Juan Dela Cruz, Proprietor
123 Maligaya Street, Maharlika
Davao City

For service Client: XYZ Corporation

contracting 456 Maganda Street, Maharlika
agencies Davao City
x------------------------------x

ORDER

Background

For GLS only:

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 This pertains to the findings of General Labor Standards (GLS) deficiencies as a result of the Joint Assessment
conducted by Labor Laws Compliance Officer (LLCO) Mr. Pogi N. Amin on January 3, 2015 at the above-named
or establishment, pursuant to Article 128 of the Labor Code of the Philippines, as amended.

This pertains to the findings of General Labor Standards (GLS) deficiencies as a result of the Joint Assessment
conducted by Labor Laws Compliance Officer (LLCO) Mr. Pogi N. Amin on January 3, 2015 at the premises of ABC
Contracting Agency’s client, XYZ Corporation, located at 456 Maganda Street, Maharlika, Davao City, pursuant to Article
For OSHS 128 of the Labor Code of the Philippines, as amended.
only:
This pertains to the findings of Occupational Safety and Health Standards (OSHS) deficiencies as a result of the
Joint Assessment conducted by Labor Laws Compliance Officer (LLCO) Mr. Pogi N. Amin on January 3, 2015 at the
For GLS and above-named establishment, pursuant to Article 128 of the Labor Code of the Philippines, as amended.
OSHS:
This pertains to the findings of General Labor Standards (GLS) and Occupational Safety and Health Standards
(OSHS) deficiencies as a result of the Joint Assessment conducted by Labor Laws Compliance Officer (LLCO) Mr. Pogi
N. Amin on January 3, 2015 at the above-named establishment, pursuant to Article 128 of the Labor Code of the
Philippines, as amended.
Findings

For GLS only: Result of the Joint Assessment showed that management has the following deficiencies: 1) underpayment of
wages; 2) non-payment/underpayment of 13th month pay; 3) non-payment/underpayment of overtime pay; 4) non-
payment/underpayment of night shift differential pay; 5) non-payment/underpayment of holiday pay; 6) non-
payment/underpayment of service incentive leave; 7) non-registration under Department Order No. 18-A of the
Department of Labor and Employment; and 8) non-coverage under Social Security System (SSS), Home Development
Mutual Fund (HDMF) and Philippine Health Insurance Corporation (PHIC).

For OSH Result of the Joint Assessment showed that management has the following deficiencies: 1) non-registration
only: under Rule 1020/Registry of Establishment; 2) non-submission of Monthly Work Accident Illness Exposure Data; 3) no
Basic Occupational Safety and Health/Construction Occupational Safety and Health-trained Safety Officer; 4) no
Philippine Red Cross-trained first aider; 5) no emergency medicines; 6) no Safety Committee; 7) non-provision of
Personal Protective Equipment; and 8) no policies/guidelines for the implementation of drug-free workplace and
prevention and control of HIV and AIDS, Hepatitis B and Tuberculosis in the workplace.

For GLS and Result of the assessment showed that the management had the following deficiencies:
OSH:

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 - On General Labor Standards: 1) underpayment of wages; 2) non-payment/underpayment of 13th month
pay; 3) non-payment/underpayment of overtime pay; 4) non-payment/underpayment of night shift
differential pay; 5) non-payment/underpayment of holiday pay; 6) non-payment/underpayment of service
incentive leave; 7) non-registration under Department Order No. 18-A of the Department of Labor and
Employment; and 8) non-coverage under Social Security System (SSS), Home Development Mutual Fund
(HDMF) and Philippine Health Insurance Corporation (PHIC)

- On Occupational Safety and Health Standards: 1) non-registration under Rule 1020/Registry of

Establishment; 2) non-submission of Monthly Work Accident Illness Exposure Data; 2) no Basic Occupational
Safety and Health/Construction Occupational Safety and Health-trained Safety Officer; 3) no Philippine Red
Cross-trained first aider; 4) no emergency medicines; 5) no Safety Committee; 6) non-provision of Personal
Protective Equipment; and 7) no policies/guidelines for the implementation of drug-free workplace and
prevention and control of HIV and AIDS, Hepatitis B and Tuberculosis in the workplace.

Computation Based on the computation of the LLCO, two (2) employees were found entitled to receive the total amount of
EIGHTY-THREE THOUSAND THREE HUNDRED THIRTY-THREE PESOS AND 37/100 (P83,333.37), to wit:

Name Salary 13th Month Overtime SIL Night Shift Holiday TOTAL
Differential pay pay Differential Pay
1.Ella Mahiyain P2,431.00 P7,851.08 P18,837.00 P1,560.00 P7,243.60 P3,744.00 P41,666.68
2. Maria Ganda 2,431.00 7,851.08 18,837.00 1,560.00 7,243.60 3,744.00 41,666.68
TOTAL P4,862.00 P15,702.16 P37,674.00 P3,120.00 P14,487.20 P7,488.00 P83,333.37

Issuance of The Notice of Result (NR) containing the findings of the LLCO was furnished to the above-named establishment
NR on January 13, 2015, containing the following directive: Any questions on the above findings shall be submitted to this
Office within five (5) days from receipt of this Notice and correction thereof shall be done within ten (10) days. This
notice shall be posted conspicuously in the premises of the workplace. Unauthorized removal of this Notice by any
person shall be dealt with law.

Mandatory A mandatory conference was conducted on January 20, 2015. Ms. Imelda Mayaman, management
Conference representative, appeared and was apprised on the findings of the LLCO. Ms. Mayaman requested for resetting of the

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 conference on January 25, 2015 in order to submit the required documents/effect payment/for possible settlement
with the workers involved.
If with
payment: On January 25, 2015, Ms. Mayaman and Ms. Ella Mahiyain, workers’ representative, appeared to effect payment
on the above-listed deficiencies/to enter into compromise agreement/submit the required documents.
Compromise
settlement Ms. Mahiyain was fully apprised of her entitlements based on the computation of the LLCO. She manifested to
voluntarily agree and receive the settlement amount offered by the management.

The amount of EIGHTY-THREE THOUSAND THREE HUNDRED THIRTY-THREE PESOS AND 37/100
(P83,333.37)as full payment/compromise settlement(if lesser amount)was paid to the affected workers.
For OSHS:
During the conduct of Joint Assessment, management was apprised of the noted deficiencies and requested to
submit Action Plan for Occupational Safety and Health Standard deficiencies which provides three (3) months
remediation period and requires a status report within ten (10) days from the date of its submission.
or
During the conduct of Joint Assessment, management was apprised of the noted deficiencies. Management
also submitted an Action Plan stating therein that it will correct the noted deficiencies on September 22, 2015.

Result of the Joint Assessment showed that management deducted cash bond from its employee’s salary in
violation of Articles 112 to 115 of the Labor Code.
ILLEGAL
DEDUCTIO DOLE Labor Advisory No. 11, series of 2014, clarifies that the practice of deductions or cash deposits/cash
N bonds for loss or damage is recognized or allowed only in private security agencies.

Reason for To date, no records will show that management submitted the required documents/paid the required
the issuance restitution/ complied with herein noted OSHS deficiencies/register under Department Order No. 18-A of the Department
of the Order of Labor and Employment. Hence, this Order.
Dispositive
portion

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 If settled WHEREFORE, premises considered and finding the documents submitted to be in order, this case is hereby
considered SETTLED and CLOSED.

OR

The said payment/amicable settlement was verified true and correct by

WHEREFORE, premises considered, as to the affected workers who verified the veracity of the payment/amicable
settlement, this case is considered settled and closed. As to the other affected workers who were not able to participate
in the verification process, this case is also considered SETTLED and CLOSED but without prejudice for any
appropriate action that the said workers may file should the said payment/amicable settlement be found with
irregularities.

Other WHEREFORE, premises considered, RONALD RAMONAL LABOR CONTRACTOR is hereby ordered to submit
directives for within ten (10) days from receipt of this Order its employment records, approved registration under Rule 1020, Monthly
compliance Work Accident/Illness Reports, organized safety committee, proof of compliance on the provision of emergency
medicines and Personal Protective Equipment, certificates of training for Safety Officer and First Aider, and
policies/guidelines for the implementation of drug-free workplace, HIV and AIDS, Hepatitis B and Tuberculosis
prevention and control.

If with order WHEREFORE, premises considered, the management of ABC CONTRACTING AGENCY/MR. JUAN DELA CRUZ
to pay is hereby ordered to pay within ten (10) days from receipt of this Order, the affected workers the total amount of
EIGHTY-THREE THOUSAND THREE HUNDRED THIRTY-THREE PESOS AND 37/100
(P83,333.37)representing their total entitlement.

How The payment of the above-stated amount or any compromise settlement thereof shall be done in the presence
payment is of an authorized officer of the Department of Labor and Employment pursuant to Article 227 of the Labor Code of the
effected Philippines which provides that:

“Article 227. Compromise Settlement. Any compromise settlement including those involving
labor standard laws, voluntarily agreed upon by the parties with the assistance of the Bureau or
the regional office of the Department of Labor, shall be final and binding upon the parties.”

In the alternative, the amount of entitlement may be deposited with the Cashier of this Office for proper
disposition to the affected workers.

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 Double
Indemnity, if Further, Republic Act 8188 provides the imposition of double indemnity for violation of the prescribed increases
applicable or adjustment in wage rates including Cost of Living Allowance (COLA) as fixed by the Regional Tripartite Wages and
Productivity Board.

Should respondent fail to pay within the prescribed period, the liability for the wage and COLA differential is
hereby doubled in accordance with the provision of Republic Act 8188, and would increase respondent’s total liability
to EIGHTY-EIGHT THOUSAND ONE HUNDRED NINETY-FIVE AND 37/100 PESOS (Php 88,195.37).
Directive re WHEREFORE, premises considered, MSQV MANPOWER & COLLECTION SERVICE/MR. SAMSON Q.
D.O. 18-A, if VILLASIS is hereby ordered to submit within ten (10) days from receipt of this Order its proof of unexpired registration
applicable under Department Order No. 18-A.

Pursuant to DOLE Department Order No. 162, series of 2016, suspending registration of new applicants as
contractors or subcontractors under DOLE Department Order 18-A and DOLE Regional Office No. XI Advisory No. 1,
series of 2016, on the non-renewal of expired Department Order 18-A registration, all contractors or subcontractors
who are unregistered or with expired Department Order 18-A registration shall CEASE from engaging in
contracting/sub-contracting activities until such time that the suspension for registration is lifted and they have
subsequently registered under the said Department Order.

Non- WHEREFORE, premises considered, this STERN WARNING is hereby ordered to be imposed on RUSTAN
presentatio MARKETING/MS. MONA LIZA YAP that refusal/denial of access to premises and/or employment records during
n of the conduct of joint assessment/inspection may result in the filing of appropriate criminal action pursuant to Article
employmen 128 of the Philippine Labor Code, as amended.
t records
Article 128 declared as unlawful for any person or entity to obstruct, impede, delay or otherwise render
ineffective the Orders of the Secretary of Labor and Employment or his duly authorized representatives pursuant to
his visitorial and enforcement power. Article 288, on the other hand, provides that any violation of the provisions of
the Labor Code declared to be unlawful or penal in nature shall be punished with a fine of not less than One Thousand
Pesos (P1,000.00) nor more than Ten Thousand Pesos (P10,000.00) or imprisonment of not less than three (3) months
nor more than three (3) years, or both such fine and imprisonment at the discretion of the court.

Let a copy of this Order be furnished to the Technical Support and Services Division (TSSD) of this Office for
the conduct of immediate re-assessment/inspection in the premises of RUSTAN MARKETING.

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 Referral to With regard to the findings of non-coverage of its employees with SSS, PHIC and HDMF, let a copy of this Order
social welfare be furnished the said agencies for their appropriate action.
agencies
SO ORDERED.

Davao City, Philippines, __________________.

JOFFREY M. SUYAO
Regional Director

cc: - ABC CONTRACTING AGENCY

Mr. Juan Dela Cruz, Proprietor
123 Maligaya Street, Maharlika
Davao City

- XYZ Corporation
456 Maganda Street, Maharlika
Davao City

- Ella Mahiyain and Maria Ganda

c/o ABC Contracting Agency
123 Maligaya Street, Maharlika
Davao City

-Department of Labor and Employment

Davao City Field Office

- Social Security System (SSS)

SSS Building, JP Laurel Avenue
Davao City

- Home Development Mutual Fund (HDMF)

Pryce Tower Condominium
Pryce Business Park, JP Laurel Avenue

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 Davao City

- Philippine Health Insurance Corporation (PHIC)

Valgosons Bldg., Bolton Extension
Davao City

TECHNICAL SUPPORT AND SERVICES DIVISION (TSSD)

Department of Labor and Employment - Regional Office No. XI
4/F AMQ Bldg., Dacudao Avenue cor. Lakandula Street
Agdao, Davao City