Title
Servando's Inc. vs. Secretary of Labor and Employment
Case
G.R. No. 85840
Decision Date
Jun 5, 1991
A conflict arose when a company's internal data breach exposed employee information, leading to legal disputes over negligence and liability.

Case Summary (G.R. No. L-11847)

Procedural Background

The case involves a motion for reconsideration filed by the respondents following a decision by the Supreme Court, which ordered the referral of a labor dispute regarding monetary claims of fifty-four employees to a Labor Arbiter. This referral was grounded in the determination that the total claims exceeded P5,000.00, thereby falling under the exclusive jurisdiction of Labor Arbiters as provided by the Labor Code.

Jurisdictional Provisions

The respondents argued that the Secretary of Labor possesses visitorial and enforcement powers under Article 128(b) of the Labor Code, which they claimed were distinct from the powers of the Regional Director to adjudicate simple money claims under Article 129. They contended that Article 217(a)(6) defines the exclusive jurisdiction of Labor Arbiters over all money claims exceeding P5,000.00 and should not abrogate the authority of the Secretary under Article 128(b).

Statutory Interpretation

The Court emphasized the critical examination of three relevant provisions of the Labor Code. Article 217(a)(6) entrusts Labor Arbiters with original and exclusive jurisdiction over claims exceeding P5,000.00, while Article 129 allows Regional Directors to resolve wage recovery claims where the monetary amount does not exceed this threshold, provided there is no claim for reinstatement.

Denial of Reconsideration

After informed deliberation, the Court affirmed its original ruling that exclusive jurisdiction over claims exceeding P5,000.00 lies with the Labor Arbiter. The Court reasoned that interpreting the Secretary of Labor's visitorial power to also include adjudicating employee claims would undermine the distinct roles assigned to the Labor Arbiter and dilute the provisions of Article 217 and Article 129. The Court reiterated that any failure to respect these jurisdictional boundaries could lead to unnecessary litigation and potential procedural confusion.

Reasoning on Jurisdictional Limitations

The Court reasoned that the powers of the Secretary of Labor, particularly the visitorial power, are intended to ensure compliance with labor laws but do not extend to the adjudication of monetary claims exceeding the specified thresholds where disputes exist. It noted that the Regional Director's proceedings are summary in nature, which may not satisfy the requirements of due process in cases involving substantial claims.

Conclusory Remarks

The opinion concluded with the denial of the motion for reconsideration, reinforcing that the matter should proceed to the Labor Arbiter given

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