Title
Zambales Base Metals, Inc. vs. Minister of Labor
Case
G.R. No. 73184-88
Decision Date
Nov 26, 1986
Employees filed complaints for unpaid wages; regional director ordered payment, but Supreme Court ruled jurisdiction lies with labor arbiter, nullifying prior orders.

Case Summary (G.R. No. 73184-88)

Complaints and Initial Proceedings

The regional director mandated the petitioner to provide employment records and payrolls for verification. During this process, a representative of the petitioner acknowledged the validity of the non-payment claims made by the employees. In response, the petitioner contended that the regional director lacked jurisdiction over the case and requested that the complaints be forwarded to a labor arbiter. However, this motion went unaddressed.

Regional Director's Order

Subsequent to the investigation, the regional director issued an order directing Zambales Base Metals, Inc. to compensate the complainants and additional affected workers, totaling approximately P3,672,883.00. This order was later upheld upon appeal to the Ministry of Labor on September 27, 1984, and a subsequent motion for reconsideration filed by the petitioner was denied on October 21, 1985.

Legal Issue

The primary issue under review before the court is the jurisdictional question raised by the petitioner. The legal principle guiding this case is rooted in Article 217 of the Labor Code, which delineates the original and exclusive jurisdiction of labor arbiters over various employment-related disputes, including money claims arising from wage issues.

Jurisdictional Authority

According to Article 217, labor arbiters hold exclusive jurisdiction to adjudicate complaints involving money claims of workers, such as unpaid wages and benefits. In contrast, the role of regional directors is limited to visitorial powers and does not include jurisdiction over money claims. The ruling clarifies that the regional director’s authority, as per Article 128 of the Labor Code, does not extend to the adjudicative powers possessed exclusively by labor arbiters.

Conclusion and Directive

Given that the proceedings overseen by the regional director lacked jurisdic

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