Case Digest: South Cotabato Communications Corp. v. Hon. P. Sto. Tomas et al., G.R. No. 217575, June 15, 2016

  • The Department of Labor and Employment (DOLE) conducted an inspection at DXCP Radio Station, owned by South Cotabato Communications Corporation, and found violations of labor standards provisions, including underpayment of wages and non-remittance of SSS contributions.
  • The DOLE issued a Notice of Inspection Result, directing the corporation to correct the violations but petitioners failed to comply. A Summary Investigation was scheduled, but petitioners did not appear. Another hearing was set, but their counsel's secretary requested a reset, which was denied.
  • The DOLE Regional Director ordered petitioners to pay the total amount of P759,752 to the affected employees.
  • Petitioners appealed to the Secretary of Labor, claiming denial of due process and lack of evidence of an employer-employee relationship.
  • Secretary of Labor: Affirmed the DOLE Regional Director's findings and dismissed the appeal.
  • CA: Upheld the Secretary of Labor's decision, stating that petitioners' failure to present evidence was due to negligence.

WoN the CA erred in affirming the Secretary of Labor's decision despite the absence of evidence proving the employer-employee relationship. YES

The Regional Director merely noted the discovery of violations of labor standards provisions in the course of inspection of the DXCP premises. No such categorical determination was made on the existence of an employer-employee relationship utilizing any of the guidelines set forth. In a word, the Regional Director had presumed, not demonstrated, the existence of the relationship. Of particular note is the DOLE'S failure to show that petitioners, thus, exercised control over private respondents' conduct in the workplace.

The existence of employer-employee relationship must be proved by adequate evidence and determined through examination of facts. The relationship must be demonstrated, not presumed, and its existence should be declared categorically before the powers under Article 128 may be exercised.


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