SC abandons Servando doctrine on Article 128 powers of the Labor Secretary
It should be noted that petitioners’ complaint involved underpayment of wages and other benefits. In order to verify the allegations in the complaint, DOLE conducted an inspection, which yielded proof of violations of labor standards. By the nature of the complaint and from the result of the inspection, the authority of the DOLE, under Article 128, came into play regardless of the monetary value of the claims involved.
This Court has held in a plethora of cases that reliance on the Servando ruling is no longer tenable in view of the enactment of R.A. No. 7730, amending Article 128 (b) of the Labor Code. The Secretary of Labor or his duly authorized representatives is now empowered to hear and decide, in a summary proceeding, any matter involving the recovery of any amount of wages and other monetary claims arising out of employer – employee relations at the time of the inspection, even if the amount of the monetary claim exceeds P5, 000.00. (Balladares vs. Peak Ventures Corporation; G.R. No. 161794. June 16, 2009)
This Court has held in a plethora of cases that reliance on the Servando ruling is no longer tenable in view of the enactment of R.A. No. 7730, amending Article 128 (b) of the Labor Code. The Secretary of Labor or his duly authorized representatives is now empowered to hear and decide, in a summary proceeding, any matter involving the recovery of any amount of wages and other monetary claims arising out of employer – employee relations at the time of the inspection, even if the amount of the monetary claim exceeds P5, 000.00. (Balladares vs. Peak Ventures Corporation; G.R. No. 161794. June 16, 2009)