INTRODUCTION

The Labor Law Compliance System is primarily governed by

Department of Labor and Employment Department Order No. 131,
series of 2013, the Manual of Labor Laws Compliance System and
Procedure for Uniform Implementation.

In a study conducted by the Department of Labor and

Employment in 2014-2015, it was revealed that there was a relatively
low turn-out rate of compliance (70.77%) from 2004-2013 and after
the approval of above-mentioned rule, there was 77.6% compliance
rate of the general labor standards in 2014-2015.

On 18 May 2016, the Secretary of the Department of Labor and

Employment has signed and approved the Revised Labor Law
Compliance System (LLCS), DOLE Department Order No. 131-B,
series of 2016. Said Revised Rule takes effect fifteen (15) days after
publication in a newspaper of general circulation.

HOW EFFECTIVE ARE THE NEW RULES ON LABOR

COMPLIANCE SYTEM, DEPARTMENT OF LABOR AND
EMPLOYMENT, DEPARTMENT ORDER NO. 131-B, S. 2016

To address this issue we have to revisit, the Objectives of said

revised rules on labor Law Compliance System, which states and we
quote Rule I, Section 2 of said rules to wit:

SEC 2. Objective – The visitorial and enforcement power

of the Secretary of Labor and Employment is the primary
framework in ensuring compliance with labor laws.
Consistent therewith, the Revised Rules of Labor Laws
Compliance System incorporates compliance enabling
approach in the regulatory framework to secure a higher
level of compliance with general labor standards and
Occupational Safety and Health standard and ensure
continuity and sustainability of compliance, by
inculcating a culture of voluntary compliance x x x
 According to the Department of Labor-Bureau of
Working Condition said revised rules is a mixture of
regulatory and developmental approach in response to
existing rigidities labor laws compliance, ensuring decent
and productive work. Further, it states that developmental
approach focuses on voluntary compliance and incentives
instead of pure regulation. Establishments are urged to
comply with labor laws and standard. It urges tripartism thru
involvement of representatives from both the employer’s and
employee’s side including representatives from the
Department of Labor and Employment.

There are laudable concept and policies enunciated in

said revised rules, such as:
 DOLE # Enagage+Motivate+Achive or #EMA
Toolkit;
 System Development Online LLCS-MIC
 Centralized Record Keeping;
 Provisions on Issuances of Certificate of
Compliance to contractors and Principal;
 Review of Compliance after issuance of Certificate
of Compliance
 Establishment executes an undertaking that it shall
maintain and comply with the labor laws and social
legislation during the effectivity of the Certificate of
Compliance.

One of the loopholes of said revised rules is the

limitation of the visitorial rights of the Department of Labor
and Employment.
 Under the new rule, the Compliance Visit, shall only be
enforced under the following:
1. When there is an anonymous complaint;
2. Employer fails to submit compliance report;
3. Complaint against an establishment with Tripartite
Certificate of Compliance with Labor Standards
(TCCLS) or Certificate of Compliance (COC) on
General Labor Standard and Occupational Safety
and Health Standards;
4. Request in NCMB proceedings to verify labor
standard violation and DO 18-A, regardless of
whether Certificate of Compliance has been
issued;
5. Findings by the NLRC of labor standard and DO
18-A violations, regardless of whether Certificate
of Compliance has been issued;
6. Single Entry Approach (SEnA) referral pursuant to
Sec 7 of the Department Order No, 107, s. 2010 of
the DOLE;
7. Special Assessment or Visit of Establishment
(SAVE) has been issued by the DOLE; and
8. Report on Expanded Anti-Trafficking in Persons,
Migrant Workers Act, Anti-Child Labor Law

Based of the foregoing, the Department of Labor and

Employment could not motu propio conducts a compliance
visit, unless there is a complainant or a complaint has been
filed against the employer or business establishment. It can
only motu propio conducts a compliance visit in cases of
Single Entry Approach (SEnA) procedure and Special
Assessment or Visit of Establishment (SAVE), which is
process of evaluating compliance with labor laws for policy
formulation. The guidelines in the conduct of Special
Assessment or Visit of Establishment (SAVE) is governed by
Department Order No. 131-A of the Department of Labor and
Employment.

In order to address this limitation, the Labor Laws

Compliance Officer of the Department of Labor and
Employment must exercise due diligence to effectively and
efficiently monitor and evaluate the compliance report
submitted by the employer and business establishment.
From these data, they could evaluate and monitor
compliance with the labor standard laws and benefits,
including verifications of occupational safety and health
standards.

Both the old rule (DOLE DO 131, s. 2013) and new rule
(DOLE DO 131-B, s. 2016) implements the Joint
Assessment, Compliance Visit, Occupational Safety and
Health Standard Verification. The verification assessment
under the old rule is no longer implemented. Under the new
rule, what is implemented is the compliance visit.

The procedure on compliance visit (coverage) has been

simplified. (Rule XII to XVI of the Department Order 131-B,
s.2016 of the DOLE).

After the compliance visit, the Labor Laws Compliance

officer should submit a Notice Report, indicating whether or
not the employer or business establishment has complied
with the labor laws. If there is a compliance on the part of the
employer or business establishment a Certificate of
Compliance would be Issued.

If there are noted deficiencies, after the conduct of

compliance visit, the employer or business establishment is
given a period to correct such deficiencies. If the employer or
business establishment fails to comply, the Hearing Officer
will conduct a mandatory conference, which is summary in
nature. During the hearing the case, parties can enter into a
compromise agreement. In the absence of a Compromise
Agreement, the Hearing Officer shall submit his/her
recommendation for the disposition of the labor standard
case, within ten (10) days from termination of the mandatory
conference. Accordingly, the Regional Director shall issue a
Compliance Order within ten (10) days from receipt of the
recommendation. The parties are given the right to appeal
said compliance order.

Under the new rule, the employer or responsible person

shall be criminally liable for refusal to access to records
and/or premises in any of the following cases:
1. When the refusal was committed twice, during the
first and second attempt to conduct Joint
Assessment, or Compliance Visit or SAVE; or
2. When the refusal was committed even on the first
attempt to conduct occupational safety and health
standard Investigation

DOES THE POLICY OF VOLUNTARY STANDARD

INSPECTION WORK

The study conducted by the Department of Labor and

Employment in 2014-2015 would be the basis of our answer,
we can conclude that the Voluntary Standard Inspection has
relatively low turn-out compliance rate. This is one of the
possible reasons that the former labor laws compliance
system Department Order No. 131, s. 2013 has been
amended by Department Order No 131-B s. 2016, both
issued by the Department of Labor and Employment.

From 2014-2015 study conducted by the Department of

Labor, (power presentation prepared by Nicanor-Bon, DOLE-
BWC) the compliance rate is 77.6% on general labor
standard; 27% correction rate for employers with noted
deficiencies and 88.54% on minimum wage.

The revised rules on labor laws compliance system has

incorporated developmental tracks such as: enhancement of
plant-level partnership mechanism; plant-level joint
assessment; recognition of voluntary compliance; awareness
raising/capability building on labor laws and social legislation
and free technical assistance on compliance.

The scope of modalities of assessment has also been

broaden to include Zonal Assessment, In-House OSH
Assessment; Assessment by Industry and Eco-Zone Wide
Assessment of Voluntary Compliance.

The Department of Labor and Employment has also

increased the number of its personnel, specifically on Labor
Laws Compliance Officer. It also provided electronic gadgets
in the conduct of assessment and has a centralized
database LLCS-MIS Information in order to ensure
compliance with labor laws.

Honesty is the best policy. If all the stakeholders in the

implementation of the labor laws compliance system would
inculcate the virtue of honesty, said system would be
effective and efficient.

RECOMMENDATIONS FOR AMENDMENT

To date, we would not recommend for any amendment

of the labor laws compliance system. We would rather
recommend to the Department of Labor and Employment to
revisit, analyze, evaluate and monitor the DOLE Audit
Checklist for Joint Assessment and the pertinent documents
submitted by the employer or business establishment to
secure Certificate of Compliance.

Are these checklist/data responsive to the goal of the

Department of Labor and Employment to secure a higher
level of compliance with general labor standards and
Occupational Safety and Health standard and ensure
continuity and sustainability of compliance, by inculcating a
culture of voluntary compliance?

“Garbage in garbage out” Thus, if the data gathered by

the Department of Labor and Employment would not be
relevant and material to its goal, it has no probative value
and will be treated as a mere garbage,