G.R. No. 106813 November 25, 1993
UBAY ARRASTRE AND STEVEDORING SERVICES, INC., JESS ALIGADO and ALEXANDER GAVIOLA, petitioners, vs. HON. CRESENCIANO B. TRAJANO, Undersecretary of Labor and Employment; HON. BARTOLOME C. AMOGUIS, Regional Director, Regional Office VII, Department of Labor and Employment; ROBERTO A. PALERMO, ET AL., respondents.

FACTS

In 1980, private respondents filed separate complaints for illegal dismissal and various money claims (overtime pay, holiday pay, etc.) against petitioners Ubay Arrastre and Stevedoring Services, Inc. (UBASCOR), Jess Aligado, and Alexander Gaviola with the Bohol Provincial Office. The cases were referred to the Regional Director, Region VII of the then Ministry of Labor and Employment. On November 22, 1982, the Regional Director issued an Order directing petitioners to pay each complainant amounts ranging from P20,707.00 to P21,006.00 and to reinstate them. Petitioners appealed to the Minister of Labor. The records were lost, and on January 14, 1986, the Deputy Minister issued an order noting the loss and directing the reconstitution of the records. After reconstitution, the appeal was deemed submitted for resolution. On May 18, 1990, DOLE Undersecretary Dionisio de la Serna dismissed the appeal for lack of merit. Petitioners filed a motion for reconsideration, arguing that under Republic Act No. 6715 (effective March 21, 1989), the Regional Director had no jurisdiction over the claims as each exceeded P5,000.00. Undersecretary Cresenciano B. Trajano denied the motion, ruling that R.A. No. 6715 , being a procedural law, has prospective application and thus did not divest the Regional Director of jurisdiction over cases filed prior to its effectivity. Petitioners elevated the case to the Supreme Court via certiorari.

ISSUE

Whether Republic Act No. 6715 applies to cases for illegal dismissal and money claims which were brought before the Office of the Regional Director in 1980.

RULING

Yes. Republic Act No. 6715 applies retroactively to the cases at bar. R.A. No. 6715 is a curative statute and therefore applies retroactively. Settled jurisprudence, beginning with Briad Agro Development Corp. vs. De la Cerna, upholds the retroactive application of R.A. No. 6715 . The law amended Articles 129 and 217 of the Labor Code. As amended, Article 129 empowers the Regional Director to hear and decide money claims arising from employer-employee relations provided the aggregate claims per employee do not exceed P5,000.00 and the complaint does not include a claim for reinstatement. Article 217 vests in the Labor Arbiter original and exclusive jurisdiction over, among others, termination disputes and claims exceeding P5,000.00 for each employee. Since the individual claims of the private respondents far exceed P5,000.00, the Regional Director had no jurisdiction over them. The exceptions to the retroactive application of curative statutes (e.g., violation of the Constitution, impairment of vested rights or contracts) do not apply in this case. Consequently, the orders of the Regional Director and the DOLE Undersecretaries are reversed and set aside. The cases are referred to the appropriate Labor Arbiter for proper disposition. The pendency of these cases before the DOLE and the Supreme Court is deemed to have tolled the running of the prescriptive period. The temporary restraining order issued by the Supreme Court is made permanent.