South Motorists Enterprises V Tosoc

South Motorists Enterprises v.
Tosoc
Facts
Forty-six workers, Tosoc et al., (Respondents) filed complaints for non-

payment of emergency cost of living allowances against South Motorists
before the Naga City District Office of Regional Office No. 5 of the then
Ministry of Labor.
The District Labor Officer issued a Special Order directing its Labor Regulation
Officers to conduct an inspection and verification of South Motorists
employment records.
On the date of the inspection and verification, South Motorists was unable to
present its employment records on the allegation that they had been sent to
the main office in Manila.
The case was reset and deferred many times. South Motorists requested
extension.
The assigned Labor Regulation Officers submitted an Inspection Report on the
basis of which an Order was issued by Labor Officer Domingo Reyes directing
South Motorists to pay Tosoc, et al. P184,689.12 representing the emergency
cost of living allowances.
South Motorists moved for reconsideration but was denied. The Secretary of
Labor and Employment affirmed the appealed Order.
Hence, this certiorari petition questioning the monetary award by the
Regional Director and, in general, his jurisdiction to validly award money
claims.
South Motorists Position:
o Only the Labor Arbiter, who is a trier of facts, may determine after
hearing such questions as whether or not an employer-employee
relationship exists; whether or not the workers were project workers;
whether or not the employees worked continuously or whether or not
they should receive emergency cost of living allowances and if entitled,
how much each should receive. Thus, SOUTH the case should be
referred to the Labor Arbiter for proper proceedings.
Issues
1. WoN the Labor Arbiter should have jurisdiction
YES, as to those awards in excess of P5,000. NO, as to those not in excess
of P5,000.
Article 129 and Article 217 of the Labor Code, as recently amended by
Republic Act No. 6715, are applicable in this case. Said amendments, being
curative in nature, have retroactive effect.
Based on these provisions, Regional Directors are empowered to hear and
decide, in a summary proceeding, claims for recovery of wages and other
monetary claims and benefits, including legal interest, subject to the
concurrence of the following requisites:
1) the claim is presented by an employee or person employed in domestic or
household service, or househelper under the Code;
2) the claim arises from employer-employee relations;
3) the claimant no longer being employed, does not seek reinstatement; and
4) the aggregate money claim of each employee or househelper does not
exceed P5,000.00 (Art. 129, Labor Code, as amended by R.A. 6715).
Where these requisites do not concur, the Labor Arbiters shall have exclusive
original jurisdiction over claims arising from employer-employee relationship
except claims for employees' compensation, social security, medicare and
maternity benefits.
2. WoN the Secretary of Labor and Employment erred in affirming the award
based on a mere Inspection Report
NO
South Motorists was afforded ample opportunity to present its side.
It failed to present employment records giving as an excuse that they were
sent to the main office in Manila, in violation of Section 11 of Rule X, Book II
of the Omnibus Rules Implementing the Labor Code providing that:
All employment records of the employees of the employer shall be kept and
maintained in or about the premises of the workplace. The premises of a
workplace shall be understood to mean the main or branch office or
establishment, if any, depending, upon where the employees are regularly
assigned. The keeping of the employee's records in another place is
prohibited.
South Motorists caused the resettings of all subsequent hearings.

Its repeated failure to attend the hearings, and to submit any motion as
manifested may be construed as a waiver of its right to adduce evidence to
controvert the worker's claims.
Notes:
Art. 129. Recovery of wages, simple money claims and other benefits. Upon
complaint of any interested party, the Regional Director of the Department of Labor
and Employment or any of the duly authorized hearing officers of the Department is
empowered, through summary proceeding and after due notice, to hear and decide
cases involving the recovery of wages and other monetary claims and benefits,
including legal interest, owing to an employee or person employed in domestic or
household service and househelper under this Code, arising from employer-employee
relations: Provided, That such complaint does not include a claim for
reinstatement: Provided, further, That the aggregate claim of each employee or
househelper does not exceed five thousand pesos (P5,000.00). . . .
Art. 217. Jurisdiction of Labor Arbiters and the Commission. (a) Except as otherwise
provided under this Code, the Labor Arbiters shall have original and exclusive
jurisdiction to hear and decide, within thirty (30) calendar days after the submission
of the case by the parties for decision without extension, even in the absence of
stenographic notes, the following cases involving all workers, whether agricultural or
non-agricultural:

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South Motorists Enterprises v.

Forty-six workers, Tosoc et al., (Respondents) filed complaints for non-

South Motorists caused the resettings of all subsequent hearings.

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