G.R. No. 132926 - Agullo vs. Sandiganbayan

Ex-Bataan Veterans Security Agency, Inc. (EBVSAI) is engaged in the business of providing security services and has employees (private respondents) assigned to the National Power Corporation at the Ambuklao Hydro Electric Plant in Bokod, Benguet.
The private respondents, led by Alexander Pocding, initiated a complaint on 20 February 1996 alleging underpayment of wages against EBVSAI before the Regional Office of the Department of Labor and Employment (DOLE).

On 7 March 1996, the Regional Office conducted an inspection at the Ambuklao Plant where numerous labor standard violations were observed, including:

Non-presentation of employment records.
Non-payment of holiday pay and rest day premium.
Underpayment of night shift differential and 13th month pay.
Non-payment of service incentive leave.
Lack of registration, annual medical reports, annual work accidental reports, safety committee, and trained first aider.

A notice of hearing was issued on the same day, designating several dates (22 March, 8 May, 27 May, and 10 June 1996) for hearing the case.
On 19 August 1996, the Regional Director issued an Order requiring EBVSAI to pay computed wage deficiencies amounting to a total of P763,997.85, listing specific amounts for each of the 21 private respondents.

EBVSAI filed a motion for reconsideration contesting the jurisdiction of the Regional Director, arguing that each individual money claim of the private respondents exceeded P5,000 and should have been referred to a Labor Arbiter.
A supplemental motion for reconsideration questioned the basis for the computed deficiencies.
On 16 January 1997, the Regional Director denied both the motion and the supplemental motion, basing his decision on Republic Act No. 7730 which, according to him, removed the limitations of Articles 129 and 217(6) of the Labor Code with regard to the visitorial and enforcement powers of the Secretary of Labor.

EBVSAI appealed the Regional Director’s Order to the Secretary of Labor.
In an Order dated 4 October 1999, the Secretary of Labor, with modifications (such as deducting P1,000 from some claims), affirmed the Regional Director’s ruling, emphasizing that RA 7730 had effectively repealed the jurisdictional limitations.
A subsequent motion for reconsideration by EBVSAI was denied by the Secretary of Labor in his 3 January 2000 Order.
EBVSAI then filed a petition for certiorari before the Court of Appeals, which dismissed the petition in its 29 May 2001 Decision and later denied a motion for reconsideration in its 26 February 2002 Resolution.

Whether the Secretary of Labor or his duly authorized representative acquired jurisdiction over EBVSAI by issuing and serving the notices and orders despite objections on the proper service location and timing.

Whether the Secretary of Labor or his duly authorized representative may exercise jurisdiction over the money claims of private respondents even when each individual claim exceeds P5,000, given that Articles 129 and 217(6) of the Labor Code suggest that such cases fall under the exclusive jurisdiction of the Labor Arbiter.

Whether there was any denial of due process to EBVSAI, particularly on the issue of whether the service of notices (addressed to a designated representative and from the Ambuklao Plant) was sufficient and proper.