G.R. No. 179652 - People's Broadcasting Service vs. Secretary of the Department of Labor and Employment

Petitioner: People’s Broadcasting Service, Inc. (Bombo Radyo Phils., Inc.)
Respondents: Secretary of the Department of Labor and Employment (DOLE), Regional Director of DOLE Region VII, and private respondent Jandeleon Juezan
Complaint: Juezan filed a complaint with DOLE Region VII against petitioner alleging illegal deduction, nonpayment of service incentive leave, 13th month pay, premium pay for holiday and rest day, illegal diminution of benefits, delayed payment of wages, and noncoverage of SSS, PAG-IBIG and Philhealth.

DOLE Regional Director conducted summary investigations; parties submitted position papers.
Director found existence of employer-employee relationship between petitioner and Juezan, and ruled that Juezan was entitled to his money claims.
Petitioner sought reconsideration which was denied.
Acting DOLE Secretary dismissed petitioner’s appeal because petitioner posted a Deed of Assignment of Bank Deposit instead of a cash or surety bond as required under Labor Code.

Petitioner filed a petition for certiorari under Rule 65 before the CA, claiming denial of due process and questioning DOLE Secretary’s jurisdiction.
CA held that petitioner was accorded due process and that DOLE Secretary had jurisdiction under Article 128(b) of the Labor Code as amended by RA 7730, which repealed the P5,000 jurisdictional limit under Article 129.

The SC reversed the CA decision, nullified the DOLE orders, and dismissed the complaint against petitioner.
The SC held there was no employer-employee relationship between petitioner and Juezan.
The SC clarified that DOLE’s visitorial and enforcement power under Art. 128(b) requires an existing employer-employee relationship to exercise jurisdiction.
The SC ruled that determination of employer-employee relationship is within DOLE’s power, but only in cases where this relationship still exists, while primary adjudicative function lies with the NLRC.
The SC held that DOLE’s findings are preliminary and that jurisdiction lies with NLRC if no relationship exists or relationship has been terminated.
The SC also explained that RA 7730 removed the P5,000 limit for DOLE jurisdiction over monetary claims but jurisdiction under Art. 128(b) still requires existing employer-employee relationship.
The SC allowed judicial remedies such as certiorari to question DOLE’s findings.

Public Attorney’s Office (PAO) moved for clarification regarding extent of DOLE’s visitorial and enforcement power vis-à-vis determination of employer-employee relationship.
DOLE also sought clarification on the extent of its powers under Labor Code as amended.
The SC treated these as a second motion for reconsideration, granted them, and reinstated the petition.

The SC declared that DOLE has plenary power to determine existence of employer-employee relationship under Art. 128(b), to the exclusion of the NLRC.
The SC ruled that DOLE’s determination must be given respect and judicial review is the proper remedy against it.
The SC reaffirmed absence of employer-employee relationship between petitioner and Juezan on the evidence.
The SC also held that a Deed of Assignment of Bank Deposit can substitute for cash or surety bond in perfecting DOLE appeals, though some reservations remain in dissenting opinions.

Whether the DOLE, under Article 128(b) of the Labor Code, as amended by RA 7730, has jurisdiction and power to determine the existence of an employer-employee relationship.
To what extent is DOLE’s visitorial and enforcement power co-extensive with the power to determine the employer-employee relationship vis-à-vis the National Labor Relations Commission (NLRC).
Whether a Deed of Assignment of Bank Deposit can validly substitute for the cash or surety bond required by law to perfect an appeal before the DOLE Secretary.
Whether petitioner has an employer-employee relationship with private respondent Jandeleon Juezan based on the evidence presented.