G.R. No. 126383 - San Juan de Dios Hospital Employees Association - AFW vs. National Labor Relations Commission

Petitioners are rank-and-file employee-union officers and members of the San Juan De Dios Hospital Employees Association.
On July 8, 1991, they sent a four-page letter with attached signatures requesting the expeditious implementation and payment of the 40 hours/5-day workweek with compensable two (2) days off, as provided by Republic Act No. 5901 and clarified by Secretary of Labor’s Policy Instruction No. 54 dated April 12, 1988.
The respondent hospital failed to respond favorably, prompting petitioners to file a complaint for statutory benefits under the cited law and policy issuance, docketed as NLRC NCR Case No. 00-08-04815-91.

On February 26, 1992, the Labor Arbiter dismissed petitioners’ complaint.
Petitioners filed an appeal with the National Labor Relations Commission (NLRC), docketed as NLRC NCR CA 003028-92, which affirmed the dismissal.
Petitioners’ motion for reconsideration was denied.

The petition asserts grave abuse of discretion by the NLRC in validating the interpretation that Policy Instruction No. 54 was based on a wrong interpretation of RA 5901 and Article 83 of the Labor Code.
The core issue raised is the validity of Policy Instruction No. 54 issued by then Secretary of Labor Franklin M. Drilon.

It clarifies the enforcement of the 40-hour/5-day workweek for hospital/clinic personnel in hospitals with at least 100 beds or located in cities/municipalities with 1 million+ population.
The instruction states RA 5901 requires hospitals to reduce personnel working days from seven to five while guaranteeing full weekly wage payment equivalent to seven days.
It emphasizes that hospital personnel are entitled to rest equal to other workers and should not suffer wage diminution despite the shorter workweek.
It declares all labor department agencies are to be guided by the instruction in adjudicating cases involving covered personnel.

RA 5901 (enacted June 21, 1969) originally prescribed a 40-hour/5-day workweek for government and private hospital/clinic personnel.
The Labor Code (enacted May 1, 1974) repealed all labor laws not adopted as part of the Code, including RA 5901, except as incorporated or referenced therein (Article 302).
Article 83 of the Labor Code provides:

Normal work hours shall not exceed 8 hours/day.
Health personnel in cities with 1 million+ population or hospitals with 100+ bed capacity must work 8 hours/day, 5 days per week (exclusive of meals).
If exigencies require 6 days/48 hours of work, additional compensation (at least 30%) is due for the sixth day.

Petitioners argue entitlement to full weekly salary with two compensable days off after completing 40 hours/5-day workweek.
The Labor Code’s Article 83 does not guarantee paid two days off; it only provides regular office hours and additional pay for a sixth working day.
Policy Instruction No. 54’s imposition of paid two days off is without basis in Article 83 or RA 5901. It is an overextension and exceeds the Secretary’s authority.
Administrative interpretation is advisory and cannot contradict clear statutory mandates.

RA 5901’s Explanatory Note and text do not provide for two days off with pay; rather, it aims only to reduce working hours and prevent wage reduction.
Bureau of Labor Standards’ implementing rules for RA 5901 specify:

Coverage includes hospitals/clinics with 100+ beds or in cities with 1 million+ population.
Regular working days are up to five per week; employer may designate workweek start but not to evade payment requirements.
Additional pay (at least 25% premium) required for work on Sundays, holidays, or overtime beyond 40 hours per week.

If two days off with pay were due, the rules’ grant of extra compensation for Sunday or overtime work would be incongruous.

The Secretary of Labor’s Policy Instruction No. 54 goes beyond statutory authority by introducing two paid days off.
RA 5901 was repealed by the Labor Code except as adopted by it. The controlling law is Article 83 of the Labor Code, which does not provide paid two days off.
The NLRC properly ruled that Policy Instruction No. 54 was invalid as it contradicts the law.
The petition is denied and the NLRC decision is affirmed.

Whether the Secretary of Labor’s Policy Instruction No. 54 is valid and binding, specifically regarding the grant of two compensable days off to hospital personnel after completing a 40-hour/5-day workweek.
Whether Republic Act No. 5901 remains operative after the enactment of the Labor Code and can be the legal basis for Policy Instruction No. 54.
Whether Article 83 of the Labor Code supports the imposition of paid two days off for covered hospital personnel.