TABLE OF CONTENTS
I.
POLICY - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
II.
DISPOSITION OF LABOR STANDARDS CASES UNDER ADMINISTRATIVE -
PROCEEDINGS
A.
FLOWCHARTS - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
Figure 1. Self-Assessment (SA)
Figure 2. Technical Advisory Visits (TAVs)
Figure 3. Inspection Procedures/Disposition and Settlement of LS Cases
B.
PROCEDURES -- - - - - - - - - - - - - - - - -- - - - - - - - - - - - - - - - - - - - - - - - - - -
1.
How inspection/spot check is commenced
2.
Coverage of inspection/spot check
3.
Inspection authority
4.
Who may join the inspection
5.
Inspection Results
6.
Restitution/Correction
7.
Compromise Agreement/Quitclaims/Waivers
8.
Summary Hearings
- Hearing
- Failure to Appear
- Hearing Officers
9.
Compliance Order
10.
Service of Notices and Orders
11.
Motion for Reconsideration
12.
Appeals
- When to Appeal
- Grounds for Appeal
Where to File
Requisites of Appeal
Cash or Surety Bond when reguired
13.
Writ of Execution
14.
Unclaimed Amount
15.
Enforcement of Health and Safety Cases
Imminent Danger Cases
Non-Imminent Danger Cases
16.
Other Measures to Secure Compliance
17.
Disposition of Simple Money Claims and other Benefits

III.
FILING OF CRIMINAL ACTION - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
IV.
ANNEXES - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
13

I. Policy
Pursuant to Department order No. 57-04 the conduct of inspection shall be undertaken by the
DOLE labor inspectors in establishments, workplaces and worksites with 10 to 199 workers and effect restitutions/corrections if there are violations. Spot-checks in relations to self-assessment
(SA) shall likewise partake the nature of a labor inspection, as well as those covered by Technical
Advisory Visits (TAVs) in defined circumstances.
Any violation of Labor Standards unearthed during the conduct of Inspection, Self-
Assessment or any case arising therefrom shall be disposed of in accordance with Articles
128,129,162, and 165 of the Labor Code of the Philippines, as amended and its implementing rules and regulations.
II. Disposition of Labor Standards Cases under Administrative Proceedings
A.
Flowcharts on the Modes of Labor Standards Enforcement.
The following flowcharts will show the process of each mode. Details of procedures for each mode are provided under specific manuals on SA/TAV and Inspection.
Figure 1 - Self-Assessment (SA)
Figure 2 - Technical Advisory Visits (TAVs)
Figure 3 - Inspection Procedures/Disposition of LS Cases

Figure 1.
SELF-ASSESSMENT (SA) FLOWCHART
START
Identify Establishment covered by SA
Conduct SA
(within 1 mo. from
Receipt of Checklist)
1
Need
Assistance
Submit
Checklist
(5 days after SA)
Yes
No
Issue Authority
to Assist
Validation
(RET)
Conduct SA
With
Violation
No
1
Yes
Spot Check
(RET)
Figure
3
No
END
After one
(1) Year
• Details of procedures are provided under the Manual on Labor
Standards

Figure 2.
•
TRAINING AND ADVISORY VISIT (TAV) FLOWCHART
START
Conduct TAV
Orientation
(owners/managers)
Action Plan
(with commitments)
Submitted
Conduct Follow-up Visit
(TAV)
Monitor Commitments
Complied
No
2 nd Follow-up
Visit
Yes
After one (1) year
Complied
No
Figure
3
Yes
Figure
3
* Details of procedures are provided under Manual of Instructions on the Conduct of Technical
Assistance/Advisory Services for Regional Offices

Figure 3.
START
Issue Inspection
Authority
Establishment *
Inspected/spot check
With
Violation
Yes
No Violation
Issue NIR
Issue Notice of
Inspection
Result
(NIR)
Inspection Procedures/Disposition and
Settlement of Labor Standards Cases
Flowchart
END
A
Complied after 7 days
No
Yes
END
Complaints/
Contested
Issue Compliance Order
Endorsed to
NLRC
Complied after 10 days END
Conduct Hearing
Decision
Amicably settled/dismissed
END
A
No
Issue of Writ of Execution
File Motion for
Reconsideration (within 7 days from receipt of CO)
/appeal (within 10 days from receipt of CO)
Resolution of MR
/ within 10days /
Forward to OSEC
Satisfaction of judgement
* Inspection Procedures
Opening Conference
Records Review
Walk-Around/Plant
Closing Conference
Details of Procedures on Workplace/Worksite Inspection are discussed under the Revised Inspection Manual.

B.
1.
How inspection/spot check is commenced.
Inspection/spot check will be conducted as a result of the implementation of the
Labor Standards Enforcement Framework (D.O. No. 57-04) through the three (3) modes as aforementioned and as shown under the Flowcharts (Figure 1 to 3) hereto.
2.
Coverage of inspection/ spot check.
An inspection/ spot check shall be a thorough inquiry and verification of whether or not the employer is complying with the labor Standards Laws. However, the Regional
Director can specify that the inspection/ spot check shall be limited only to wages, occupational health and safety standards or imminent danger.
All inspection/ spot check conducted shall apply to all employees similarly situated.
3.
Inspection Authority
The Regional Director in the first instance shall have the authority to conduct inspections/ spot checks in workplaces/worksites within his/her territorial jurisdiction pursuant to Department Order No. 57-04.
He/she shall issue an inspection authority directing the duly authorized labor inspector to conduct an inspection/ spot check at the workplace/worksite specified therein.
The inspection authority shall be in the prescribed form (IF No.1), specifying the names or names of the assigned labor inspectors, workplaces/worksites to be inspected, including their locations.
Within a reasonable time fixed by the Regional Director from the issuance of the inspection authority, the labor inspector shall proceed to the workplace/worksite listed in the inspection authority.
Inspection authority for a complaint inspection shall be issued within the day and inspection authority for accident/imminent danger investigation shall be issued within twenty four (24) hours from knowledge of the accident/imminent danger situation or upon receipt of a request of such accident/imminent danger situation.

In the conduct of inspection/spot check, the labor inspector shall: a) be joined by representatives of the workers b) examine documents, which are required to be kept by the employer c) interview the workers d) Document thereafter, his/her findings in the Notice of Inspection Results, a copy of which he/she shall furnish and explain to the employer and to the worker’s representative. e) If no contest is raised and no restitution/correction is effected after seven (7) days from receipt of the Notice of Inspection results, the Regional Director shall issue a compliance order.
4.
Who may join the inspection (Sec.9 of RA 6727 Implementing Rules and Regulations)
The labor inspector assigned to conduct the inspection shall always be accompanied by the President or of other responsible officer of the recognized unit or of any interested union. In non-unionized establishments, a worker representing the worker in said company shall accompany the inspector.
The workers’ representative shall have the right to submit his own findings to the
Department of Labor and Employment and to testify on the same if he does not concur with the findings of the labor inspector.
5.
Inspection results
Upon completion of the inspection, the labor inspector shall record the inspection findings together with the amount to be restituted in the prescribed inspection results form (Annexed as IF No. 2)
The labor inspector shall furnish copy thereof and explain the same to the owner of the establishment or to his representatives and the workers or their representatives.
6.
Restitutions/ corrections ( Sec. 7 a,b and c, Rule II, Rules on the Disposition of Labor
Standards Cases in the ROs a) Whether the employer has agreed to make the necessary restitution of violations discovered in the course of inspection, such restitution may be effected at the plant level within five (5) calendar days from receipt of the inspection results by the employer or his authorized representative.

b) Plant-level restitution may be effected for money claims not exceeding Fifty
Thousand (P50,000.00). A report of the restitutions shall be immediately submitted to the Regional Director for verification and confirmation. In case the Regional Director finds that the restitutions effected at the plant-level are not in order, he may direct the
LSED Chief to check on the correctness of the restitution report. c) Restitution in excess of the aforementioned amount shall be effected at the
Regional Office or at the worksite subject to prior approval of the Regional Director
7.
Compromise Agreements/Quitclaims/Waivers (Sec. 8, Rule II on the Disposition of
Labor Standards Cases and Administrative Order No. 105, series of 1995)
Should the parties arrived at an agreement as to the whole or part of the dispute, such compromise agreement may be considered binding provided:
1.
It is reduced in writing; and
2.
signed by the parties in the presence of the Regional Director or his duly authorized representative.
As a general rule, quitclaim/waiver executed by an employee in favor of the employer may bind the parties provided:
1.
the person making the waiver did so voluntarily;
2.
with full understanding of what he is doing;
3.
for a consideration which is adequate and reasonable; and
4.
signed in the presence of the Regional Director or his duly authorized representative.
8.
Summary Hearings (Sec. 11 Rule II, Rules on the Disposition of Labor Standards Cases in the ROs) a) Hearing. - Where no proof of compliance is submitted by the employer after seven
(7) calendar days from receipt of the inspection results, the Regional Director shall summon the employer and the complainants to a summary investigation. In regular routine inspection cases however, such investigation shall be conducted where no complete field investigation can be made for reason attributable to the fault of the employer or his representatives, such as those but not limited to instances when the field inspectors are denied access to the premises, employment records, or workers of the employer.

b) Failure to appear (Sec. 14 , Rule II, rules on the Disposition of Labor Standards Cases in the Ros)
Where the employer or the complainant fails or refuses to appear during investigation, despite proper notice, for two (2) consecutive hearings without justifiable reasons, the hearing officer may recommend to the Regional Director the issuance of a compliance order based on the evidence at hand or an order of dismissal of the complaint, as the case may be. c) Hearing Officers (Memorandum Circular No. 074-89)
In order to bring the contest process into conformity with the requirement of due process, any contested inspection case be assigned to designated hearing officer, preferably a senior officer who did not conduct the establishment inspection/investigation.
9.
Compliance Order (Sec. 18, Rules on the Disposition of Labor
Standards Cases in ROs)
If the Regional Director finds after hearing that violations have been committed, he shall issue an Order directing the employer to restitute the amount due the workers or institute other corrective measures within ten (10) calendar days upon receipt of the
Order and to submit proof of compliance. The Order shall specify the amount due each worker and shall include the computation on which the Order was based.
10.
Service of notices and orders (Sec. 4, Rule II, Rules on the Disposition of Labor
Standards Cases)
Notices and copies or orders shall be served on the parties or their duly authorized representatives at their last known office or home addresses or, if they are represented by a counsel, through the latter.
In case of personal service, the process server shall submit this return within seventytwo (72) hours from date of service stating legibly in the return his name, the mode of service, the names of the authorized persons served and the date of actual receipt of the document , if no service was affected, the serving officer shall state in the return the reason therefore. The return shall form part of the records of the case.

11.
Motion for Reconsideration (Sec. 19, Rule II, Rules on the Disposition of Labor
Standards Cases)
The aggrieved party may file a motion for reconsideration of the Order of the
Regional Office within seven (7) calendar days from receipt by him of a copy of said
Order.
The Regional Director shall resolve the motion for reconsideration of the Order of the Regional Office within ten (10) calendar days from receipt thereof. A motion for reconsideration filed beyond the seven-day reglementary period shall be treated as an appeal if filed within the ten-day reglementary period for appeal but subject to the requirements for the perfection of an appeal.
No second motion for reconsideration shall be entertained in any case.
12.
Appeals (Rule IV, Rules on the Disposition of Labor Standards Cases in the ROs) a. Appeal - (Section 1, Rule IV)
The Order of the Regional Director shall be final and executory unless appealed to the Secretary of the Labor and Employment within ten (10) calendar days from receipt thereof. b. Grounds for appeal – (Section 2, Rule IV)
The aggrieved party may appeal to the Secretary the Order of the Regional
Director on any of the following grounds;
1. There is a prima facie evidence of abuse of discretion on the part of the
2.
Regional Director. the Order was secured through fraud, coercion or graft and corruption;
3.
4. the appeal is made purely on questions of law, or serious errors in the findings of facts were committed which, if not corrected, would cause grave and irreparable damage or injury to the appellant. c. Where to file – (Section 3, Rule IV)
The appeal shall be filed in five (5) legibly typewritten copies with the
Regional Office which issued the Order. Subject to the immediately succeeding section, the appeal shall not be deemed perfected if it is filed with any other Office or entity.

d. Requisites of appeal – (Section 4, Rule IV)
1. The appeal shall be filed within the reglementary period as provided in
Section 1 of this Rule. It shall be under oath with proof of service of a copy thereof to the other party and shall be accompanied by a Memorandum of
Appeal which shall state the date appellant received the Order and the grounds relied upon the arguments in support thereof.
2. The appellee may file with the Regional Office his reply or opposition to the appeal within ten (10) calendar days from receipt thereof. Failure on the part of the appellee to file his reply or opposition within the said period shall be construed as a waiver on his part to file the same. e. Cash or surety bond, when required RA 7730
In case the order involve a monetary award, an appeal by the employer may be perfected only upon the posting of a cash or surety bond should in the amount equivalent to the monetary award indicated in the order
13.
Writ of Execution ( Rule V, Rules on the Disposition of Labor Standards Cases in the
ROs)
(a) If no appeal is perfected within the reglementary period, the Regional Director shall, motu propio or upon motion by any interested party, issue a writ of execution to enforce the order. In the enforcement of the writ, the assistance of the law enforcement authorities may be sought.
(b) A writ of execution may be recalled subsequent to its issuance, if it is shown that an appeal has been perfected in accordance with this Rule.
14.
Unclaimed amount (Sec., Rule II, Rules on the Disposition of Labor standards Cases)
The Regional Director shall hold in trust under a special account any unclaimed amount for and in behalf of the workers. Any amount not claimed or collected by the worker within a period of two (2) years from the time of the restitution shall be held as a special fund of the Department of Labor and employment to be used exclusively in the administration and enforcement of labor laws provided in article 129 of the Labor Code.

15.
Enforcement of Health and Safety Cases
A. Imminent Danger Cases – (Rule 10.12.02, Occupational Health and Safety
Standards, as amended )
1.
An imminent danger is a condition or practice that could reasonable be expected to cause death or serious physical harm before abatement under the enforcement procedures can be accomplished.
2.
When an enforcement officer finds that an imminent danger exists in a workplace, he shall inform the affected employer and workers of the danger and shall recommend to the Regional Director the issuance of an Order for stoppage of operation or other appropriate action for the abatement of the danger. Pending the issuance of the Order the employer shall take appropriate measures to protect the workers.
3. Upon receipt of such recommendation, the Regional Director shall immediately determine whether the danger exists and is of such a nature as to warrant the issuance of a Stoppage Order or other appropriate action to minimize the danger.
4. The Order shall require specific measures that are necessary to avoid, correct or remove such imminent danger and to prohibit the presence of any worker in such location where such danger exits, except those whose presence are necessary to avoid, correct or remove such danger or to maintain an continuous process or operation. Where stoppage of operation is orders, the Order shall allow such correction, removal or avoidance of danger only where the same can be accomplished in a safe and orderly manner.
5.
Immediately after the issuance of a Stoppage Order, the Regional Director shall furnish the Secretary, through the Director, within forty-eight (48) hours a copy of the Order and all pertinent papers relating thereto, together with a detailed description of the work conditions sought to be corrected, the safety and health rule violated by the employer, and the corrective measures imposed. The
Secretary shall review the Order issued by the Regional Director and within a period of not more than five (5) working days, issue a final Order either lifting or sustaining the Order of the Regional Director.
6. The Order shall remain in effect until danger is removed or corrected.

B. Non-imminent danger cases ( Sec.3, Rule VII, Rules on the Disposition of Labor
Standards Cases)
Where the condition is not the type falling under imminent danger cases, the labor inspector shall determine reasonable periods of compliance depending on the gravity of the hazards needing corrections or the period needed to come into compliance with occupational safety and health standards.
16.
Other measures to secure compliance (Sec.7, Rule VII, Rules on the Disposition of
Labor Standards Cases).
The Regional Director , in addition to measure available to him to secure compliance with labor standards, particularly those involving technical safety and general occupational safety standards, may furnish a copy of the inspection findings to the insurance company of the employer, the power company the municipal authorities which issue business Licenses/permits, the labor union in the enterprise concerned, and to other government offices to further persuade voluntary compliance with existing standards.
17.
Disposition of simple money claims and other benefits (Art.129 of the labor Code, as amended by RA No. 6715 and under Rule X of the Rules Implementing Book III of the
Code, as incorporated by Section 2 of Rules and Regulations implementing RA 6715)
Summary Proceedings
1. A Regional Director or any duly authorized Hearing Officer of the Department shall have the power through summary proceedings and after due notice and hearing over cases involving recovery of wages and other monetary claims if all the following requirements are present; a.
The claim is presented by an employee or person employed in domestic/household service, or househelper. b.
The claim arises from employer-employee relationship. c.
The complaint does not include a claim for reinstatement. d.
The aggregate money claim, including legal interest, of each employee or househelper does not exceed Five Thousand Pesos (P5,000.00)
2.
Endorsement to the National Labor Relations Commission (NLRC)
If the claim does not meet any of the abovesaid requirements the Regional
Director shall advise complainant to file the same with appropriate regional branch of the NLRC.

3.
Appeal
Unless appealed to the NLRC within five (5) calendar days from receipt of the decision of the Regional Director, the same shall become final and executory.
The procedure for perfecting an appeal shall follow these procedures under
Article 223 of the Labor Code, as amended.
The NLRC shall resolve the appeal within (10) calendar days from submission of the last pleading required or allowed under its rules.
4.
Supervised Payment
The Regional Director or his/her duly authorized representative shall supervise the payment of unpaid wages and other monetary claims and benefits, including
(legal) interest, found owing to any employee or househelper under the Labor Code.
III. Filing of criminal action
Under Memorandum dated 18 January 1994 of the Secretary of Labor and Employment the
Regional Offices was directed to institute criminal action for violation of Labor Standards cases pursuant to Article 128 (d) of the Labor Code as supported by the Department of Justice under
Opinion 180, s. 1993.
Article 128 provides that “ It shall be unlawful for any person or entity to obstruct, impede, delay or otherwise render ineffective the orders of the Secretary of Labor or his duly authorized representatives issued pursuant to the authority granted under this Article, and no inferior court or entity shall issue temporary or permanent injunction or restraining order or otherwise assume jurisdiction over any case involving the enforcement orders issued in accordance with this Article.”
III. Annexes
A.
B.
C.
D.
E.
Department Order No. 57-04
Republic Act No. 7730
Administrative Order 105 s. 1995
Memorandum on DOJ Ruling on Enforcement of Regional Office Compliance Order
Rules on the Disposition of the Labor Cases in the Regional Offices