G.R. No. 122006 November 24, 1999
ALLIED INVESTIGATION BUREAU, INC., petitioner, vs. HON. SECRETARY OF LABOR & EMPLOYMENT, acting through Undersecretary CRESENCIANO B. TRAJANO, respondents.

FACTS

Petitioner Allied Investigation Bureau, Inc., a security agency, was contracted by Novelty Philippines, Inc. (NPI) to provide security services. On January 17, 1995, two security guards, Melvin T. Pelayo and Samuel Sucanel, filed a complaint with the Regional Office of the Department of Labor and Employment (DOLE) against petitioner. They alleged non-compliance with Wage Order No. NCR-03, which mandated wage increases, and sought recovery of wage differentials. A DOLE inspection confirmed the violations, including non-implementation of the wage order for guards assigned to NPI, non-remittance of SSS premiums, and excessive deductions. After petitioner failed to appear at scheduled hearings despite notice, Regional Director Romeo A. Young issued an Order on May 9, 1995, directing petitioner to pay wage differentials totaling P807,570.36 to ninety-two employees.
Petitioner appealed this Order to the Secretary of Labor but failed to post the required cash or surety bond equivalent to the monetary award. Consequently, on September 19, 1995, the Secretary of Labor, through Undersecretary Cresenciano B. Trajano, dismissed the appeal for not being perfected. Petitioner then filed this petition for certiorari, arguing that the Regional Director acted without jurisdiction since the individual money claims exceeded P5,000.00, which allegedly falls under the exclusive jurisdiction of the Labor Arbiter under Articles 129 and 217 of the Labor Code.

ISSUE

Whether the Regional Director had jurisdiction to adjudicate the money claims despite the aggregate claims of each employee exceeding P5,000.00.

RULING

The Supreme Court denied the petition, upholding the jurisdiction of the Regional Director. The Court clarified that the jurisdictional limits under Articles 129 and 217 of the Labor Code, which grant the Labor Arbiter exclusive jurisdiction over claims exceeding P5,000.00 per employee, pertain to the complaint or adjudicatory powers of the Regional Director. The case at bar, however, was exercised under the visitorial and enforcement powers of the Secretary of Labor or his duly authorized representatives, as provided under Article 128(b) of the Labor Code, as amended by R.A. No. 7730 .
The legal logic is distinct: Article 128(b) empowers the Regional Director to issue compliance orders to rectify violations of labor standards laws discovered during routine inspections, such as the wage order non-compliance here. This power is summary and enforcement-oriented, aimed at ensuring immediate correction of violations for the benefit of workers, and is not constrained by the P5,000.00 jurisdictional threshold applicable to voluntary claims filed by employees. Since the action originated from the DOLE’s own inspection authority and not solely from a employee complaint, the Regional Director properly acted within his visitorial powers. Furthermore, the Court found no grave abuse of discretion in the Secretary’s dismissal of the appeal for failure to post the mandatory appeal bond, a procedural requirement that petitioner disregarded. The Order had thus become final and executory.