Published — January 11, 2019
The following post does not create a lawyer-client relationship between Alburo Alburo and Associates Law Offices (or any of its lawyers) and the reader. It is still best for you to engage the services of your own lawyer to address your legal concerns, if any.
Also, the matters contained in the following were written in accordance with the law, rules, and jurisprudence prevailing at the time of writing and posting, and do not include any future developments on the subject matter under discussion.
Related Topic: Knowing more about labor law compliance inspections
The Secretary of DOLE and his duly authorized representative are instruments of the State for the fulfillment of the obligation mandated under Section 3, Article 13 of the 1987 Constitution, which states that the State shall afford full protection to labor, local and overseas, organized and unorganized, and promote full employment and equality of employment. In relation thereto, the State shall also ensure that employees are entitled to security of tenure, humane conditions of work, and a living wage. The constitutional provision also elucidates that employees shall also participate in policy and decision-making processes affecting their rights and benefits as may be provided by law.
Also, under Article 128 of the Labor Code, the Secretary of DOLE or his duly authorized representatives, including labor regulation officers, exercise visitorial powers, and shall have access to employer’s records and premises at any time of the day or night whenever work is being undertaken therein. This is necessary to determine compliance of business establishments with minimum labor standards requirements. Labor standards refer to the minimum requirements prescribed by existing laws, rules, and regulations relating to wages, hours of work, cost of living allowance and other monetary and welfare benefits, including occupational, safety, and health standards. (Maternity Children’s Hospital vs The Honorable Secretary of Labor, G.R No. 78909, June 30, 1989).
Who are Authorized Representatives of the Secretary of DOLE?
The authorized representatives of the Secretary of DOLE are the Labor Law Compliance officers, and labor inspectors, they are generally granted with authority to conduct routine inspection, complaint inspection, occupational safety and health standards investigation as modes of labor law implementation and perform such other related functions which may be necessary in the enforcement of the Labor Code and other related labor laws. (Par. (n), Section 1, Rule 2 of DOLE Department Order 183-17).
Under the implementing rules and regulations, at the start of every year, a list of authorized representatives of the Secretary of Labor, granted with general authority to inspect are published on the official website of the DOLE (Section 2, Rule 3 of DOLE Department Order 183-17). By virtue of the authority given to the Labor Officers as duly authorized representatives, they are given a wide latitude of discretion in inspecting the business establishments.
As a result of the Labor law officer’s inspection, in case of erring employers, they are given a chance to correct their errors, and mandatory conference shall be conducted within ten (10) days after the lapse of the 10-day correction period for violation of labor standards and contracting and sub-contracting rules (Section 1, Rule 10 of DOLE Department Order No. 183-17). Within ten (10) days after the termination of the mandatory conference, the hearing officer shall submit recommendation of disposition and the DOLE regional director shall issue corresponding compliance order within twenty (20) days (Section 1, Rule 11 of DOLE Department Order No. 183-17). On the other hand, in case of substantial compliance of the minimum Labor Standards of an employer, and upon receipt of the compliance of an erring employer, the regional director shall conduct verification or validation within five (5) days (Par. [h], Sec. 3, Rule 5 of DOLE Department Order No. 183-17).
Documents to Be Prepared Upon Inspection by the Compliance Officers
Under the Rules and Regulations on Labor Law Compliance Standards and as summarily indicated on the official website of Bureau of Working Conditions of the Department of Labor, the following are the required documents and forms to be prepared and presented to by the employer to the Labor Officers. This is mandatory in order to evaluate the conformity of the establishment with Labor Standards and policies:
- Roster of the workers (regular, probationary, temporary, casual, piece rate, contractual, etc.), their designation, date hired, and wage rate;
- Payrolls and/or vouchers;
- Daily Time Records and/or Time Sheets;
- Payslips;
- Last Notice of Results, if any;
- Proof of payment of 13th month pay/ five (5) days service incentive leave pay;
- Proof of payment/remittance of SSS/PHILHEALTH/HDMF contributions;
- Registration under Rule 1020 of the Occupational Safety and Health Standards;
- Certificate of Accredited Safety Officer/First Aider;
- Organization of Safety & Health Committee under Rule 1040 of the Occupational Safety and Health Standards;
- Annual Work Accident/Illness Exposure Data Report/Annual Medical Report;
- Drug-Free Workplace Policy and Program (D.O. 53-03)/HIV/AIDS Program/Anti-Sexual Harassment Law;
- Apprenticeship Agreements/Learnership Agreements, if any;
- List of Resident and Non-resident alien workers, their citizenship, nature of employment and status of stay;
- Employment permit for Non-resident alien(s);
- Registration of resident alien(s);
- Collective Bargaining Agreement, if unionized establishment;
- Registration under Department Order 174 (or 18-A) for Job Contractors;
- Service Agreement under D.O. 174 (or 18-A);
- Contractor’s Bond to answer for wages due to the workers;
- Employment Contracts with physicians, dentists, nurses and/or first aiders, if applicable;
- Contract with infirmary and emergency hospitals, if applicable;
- Proof of service charge distribution, if applicable;
- Records of leave benefits on sickness, maternity, paternity and solo parent;
- Company policy and/or practice on voluntary benefits; and
- Securities and Exchange Commission Certificate or Department of Trade and Industry Certificate and Mayor’s Permit.
Conveniently, most of the forms required as indicated above are easily downloadable on the Official Website of DOLE. Aside from the documents to be presented, the employer and the employees may also be questioned by the Labor officer as part of his investigation.
It is a
well-established rule that employees are regarded with tenderness and even
favor in the eyes of the law as they are often at the mercy of their employers.
They deserve our abiding respect. (Cebu Royal Plant vs. The Honorable Deputy
Minister of Labor, G.R. No. L-58639, August 12, 1987). Thus, the compliance
of a business establishment may be seen as a moral obligation on the part of
the employer in the growth of his employees, and as such, visits from the
Secretary of DOLE’s duly authorized representatives should not be considered as
a burden to an employer, after all, the advantages of compliance of labor
standards law is better than the sanctions, fines and penalties to be imposed
on a non-compliant business establishment.
Alburo Alburo and Associates Law Offices specializes in business law and labor law consulting. For inquiries, you may reach us at info@alburolaw.com, or dial us at (02)7745-4391/0917-5772207.
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