G.R. Nos. 73184-88 November 26, 1986
ZAMBALES BASE METALS, INC., petitioner, vs. THE MINISTER OF LABOR, DEPUTY MINISTER OF LABOR, REGIONAL DIRECTOR DAVID KONG and ROSALIO BANGAYAN, ET AL., respondents.

FACTS

Thirty employees of Zambales Base Metals, Inc. filed complaints with the Regional Director of the Ministry of Labor for unpaid wages, 13th month pay, and service incentive leave pay. During the proceedings, the company’s representative admitted to the non-payments. Despite this admission, the petitioner moved to dismiss the case on jurisdictional grounds, arguing that the Regional Director lacked authority and that the complaints should be referred to a Labor Arbiter. The Regional Director did not act on this motion.
Instead, after an investigation, the Regional Director issued an order directing the petitioner to pay the thirty complainants and “other affected workers,” totaling 570 individuals, the aggregate sum of P3,672,883.00. The petitioner appealed this order to the Ministry of Labor, which sustained the Regional Director’s decision. The petitioner’s subsequent motion for reconsideration was also denied, prompting this petition for certiorari before the Supreme Court.

ISSUE

Whether or not the Regional Director of the Ministry of Labor had jurisdiction to hear and decide the employees’ money claims for unpaid wages and other benefits.

RULING

No. The Supreme Court ruled that the Regional Director had no jurisdiction over the money claims. The Court anchored its decision on a clear statutory interpretation of the Labor Code. Article 217 explicitly grants Labor Arbiters “original and exclusive jurisdiction” over specific cases, including all money claims of workers, such as those for non-payment of wages and other benefits provided by law. The employees’ complaints for unpaid wages, 13th month pay, and service incentive leave pay fall squarely under this category.
In contrast, the authority invoked by the Regional Director is based on Article 128, which confers only visitorial and enforcement powers. This allows for the inspection of records and the enforcement of labor standards but does not grant adjudicatory power to decide money claims. The Court emphasized that Article 217’s grant of exclusive jurisdiction to Labor Arbiters is unambiguous and leaves no room for shared jurisdiction with Regional Directors in such matters. Consequently, all proceedings before the Regional Director were declared null and void for lack of jurisdiction.
The Supreme Court set aside the orders of the Ministry of Labor and remanded the employees’ complaints to the proper Labor Arbiter for appropriate hearing and decision. The Court noted the petitioner’s prior admission of non-payment and expressed hope for an expeditious resolution of the cases. Costs were imposed on the petitioner.