Held while it is true that under articles 129 and 217

Held: While it is true that under Articles 129 and 217 of the Labor Code, the Labor Arbiter has
jurisdiction to hear and decide cases where the aggregate money claims of each employee exceeds
P5,000.00, said provisions do not contemplate nor cover the visitorial and enforcement powers of the
Secretary of Labor or his duly authorized representatives. Rather, said powers are defined and set
forth in Article 128 of the Labor Code (as amended by R.A. No. 7730).
Art. 128 explicitly excludes from its coverage Articles 129 and 217 of the Labor Code by the phrase
“(N)otwithstanding the provisions of Articles 129 and 217 of this Code to the contrary xxx” thereby
retaining and further strengthening the power of the Secretary of Labor or his duly authorized
representative to issue compliance orders to give effect to the labor standards provisions of said Code
and other labor legislation based on the findings of labor employment and enforcement officers or
industrial safety engineers made in the course of inspection
In the case at bar, the Secretary of Labor correctly assumed jurisdiction over the case as it does not
come under the exception clause in Art. 128(b) of the Labor Code. While petitioner Jethro appealed
the inspection results and there is a need to examine evidentiary matters to resolve the issues raised,
the payrolls presented by it were considered in the ordinary course of inspection. While the
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University of San Carlos – College of Law Labor Standards Finals Case Digests
employment records of the employees could not be expected to be found in Yakult’s premises in
Calamba, as Jethro’s offices are in Quezon City, the records show that Jethro was given ample
opportunity to present its payrolls and other pertinent documents during the hearings and to rectify
the violations noted during the ocular inspection. It, however, failed to do so, more particularly to
submit competent proof that it was giving its security guards the wages and benefits mandated by
law.
Jethro’s failure to keep payrolls and daily time records in Yakult’s premises was not the only labor
standard violation found to have been committed by it; it likewise failed to register as a service
contractor with the DOLE, pursuant to Department Order No. 18-02 and, as earlier stated, to pay the
wages and benefits in accordance with the rates prescribed by law.
It bears emphasis that the SOLE, under Article 106 of the Labor Code, as amended, exercises quasi-
judicial power, at least to the extent necessary to determine violations of labor standards provisions
of the Code and other labor legislation. He/she or the Regional Directors can issue compliance
orders and writs of execution for the enforcement thereof. The significance of and binding effect of
the compliance orders of the DOLE Secretary is enunciated in Article 128 of the Labor Code.