Guico v. Quisumbing

PUNO, J.:

This is a petition for certiorari seeking a review of two (2) Orders1 issued by the respondent Secretary of Labor and Employment dismissing petitioner's appeal. The case started when the Office of the Regional Director, Department of Labor and Employment (DOLE), Region I, San Fernando, La Union, received a letter-complaint dated April 25, 1995, requesting for an investigation of petitioner's establishment, Copylandia Services & Trading, for violation of labor standards laws. Pursuant to the visitorial and enforcement powers of the Secretary of Labor and Employment or his duly authorized representative under Article 128 of the Labor Code, as amended, inspections were conducted at Copylandia's outlets on April 27 and May 2, 1995.

The inspections yielded the following violations involving twenty-one (21) employees who are copier operators: (1) underpayment of wages; (2) underpayment of 13th month pay; and (3) no service incentive leave with pay.2 The first hearing of the case was held on June 14, 1995, where petitioner was represented by Joseph Botea, Officer-in-Charge of the Dagupan City outlets, while the 21 employees were represented by Leilani Barrozo, Gemma Gales, Majestina Raymundo and Laureta Clauna. It was established that a copier operator was receiving a daily salary ranging from P35.00 to P60.00 plus commission of P20.00 per P500.00 worth of photocopying. There was also incentive pay of P20.00 per P250.00 worth of photocopying in excess of the first P500.00.3 On July 13, 1995, petitioner's representative submitted a Joint Affidavit signed and executed by the 21 employees expressing their disinterest in prosecuting the case and their waiver and release of petitioner from his liabilities arising from non-payment and underpayment of their salaries and other benefits.

Individually signed documents dated December 21, 1994, purporting to be the employees' Receipt, Waiver and Quitclaim were also submitted.4 In the investigation conducted by Hearing Officer Adonis Peralta on July 21, 1995, the 21 employees claimed that they signed the Joint Affidavit for fear of losing their jobs. They added that their daily salary was increased to P92.00 effective July 1, 1995, but the incentive and commission schemes were discontinued. They alleged that they did not waive the unpaid benefits due to them.5 On October 30, 1995, Regional Director Guerrero N. Cirilo issued an Order6 favorable to the 21 employees.

First, he ruled that the purported Receipt, Waiver and Quitclaim dated December 21 and 22, 1994, could not cause the dismissal of the labor standards case against the petitioner since the same were executed before the filing of the said case. Moreover, the employees repudiated said waiver and quitclaim. Second, he held that despite the salary increase granted by the petitioner, the daily salary of the employees was still below the minimum daily wage rate of P119.00 under Wage Order No. RB-I-03.

Thirdly, he held that the removal of the commission and incentive schemes during the pendency of the case violated the prohibition against elimination or diminution of benefits under Article 100 of the Labor Code, as amended. The dispositive portion of the Order states:

WHEREFORE, premises considered and pursuant to the Rules on the Disposition of Labor Standards Cases in the Regional Offices issued by the Secretary of Labor and Employment on 16 September 1987, respondent Copylandia Services and Trading thru its owner/manager Mr. Francisco Guico, is hereby ORDERED to pay the employees the amount of ONE MILLION EIGHTY ONE THOUSAND SEVEN HUNDRED FIFTY SIX PESOS AND SEVENTY CENTAVOS (P1,081,756.70) representing their backwages, distributed as follows: 1. Rosalina Carrera - P 68,010.91 2. Joanna Ventura - 28,568.10 3. Mercelita Paredes - 68,010.91 4. Aida Licuanan - 68,010.91 5. Gemma Gales - 68,010.91 6. Clotilda Zarata - 27,808.33 7. Consolacion Miguel - 65,708.28 8. Gemma Macalalay - 68,010.91 9. Wandy Aquino - 19,559.58 10. Laureta Clauna - 68,010.91 11. Josephine Valdez - 27,808.33 12. Leilani Berrozo - 27,808.33 13. Majestina Raymundo - 68,010.91 14. Theresa Rosario - 68,010.91 15. Edelyn Maramba - 68,010.91 16. Yolly Dimabayao - 40,380.60 17. Vilma Calaguin - 68,010.91 18. Maila Balolong - 40,380.60 19. Clarissa Villena - 27,808.33 20. Maryann Galinato - 68,010.91 21. Desiree Cabansag - 27,808.33 Total