TAADA No.

L-63915.

VS. April

24,

TUVERA 1985

FACTS: Petitioners seek a writ of mandamus to compel respondent public officials to publish, and/or cause the publication in the Official Gazette of various presidential decrees, letters of instructions, general orders, proclamations, executive orders, letters of implementation and administrative orders. Respondents, through the Solicitor General would have this case dismissed outright on the ground that petitioners have no legal personality or standing to bring the instant petition. The view is submitted that in the absence of any showing that the petitioner are personally and directly affected or prejudiced by the alleged non-publication of the presidential issuances in question. Respondent further contend that publication in the Official Gazette is not a sine qua non requirement for the effectivity of the law where the law themselves provides for their own effectivity dates. ISSUES: Whether the presidential decrees in question which contain special provisions as to the date they are to take effect, publication in the Official Gazette is not indispensable for their effectivity? RULING: Publication in the Official Gazette is necessary in those cases where the legislation itself does not provide for its effectivity date, for then the date of publication is material for determining its date of effectivity, which is the 15th day following its publication, but not when the law itself provides for the date when it goes into effect. Article 2 does not preclude the requirement of publication in the Official Gazette, even if the law itself provides for the date of its effectivity. The publication of all presidential issuances of a public nature or of general applicability is mandated by law. Obviously, presidential decrees that provide for fines, forfeitures or penalties for their violation or otherwise impose

burdens on the people, such as tax revenue measures, fall within this category. Other presidential issuances which apply only to particular persons or class of persons such as administrative and executive orders need not be published on the assumption that they have been circularized to all concern. The Court therefore declares that presidential issuances of general application, which have not been published, shall have no force and effect. People vs Que Po Lay TITLE: People of the Phils v Que Po Lay CITATION: 94 Phil 640 | GR No. 6791, March 29, 1954 FACTS: The appellant was in possession of foreign exchange consisting of US dollars, US checks and US money orders amounting to about $7000 but failed to sell the same to the Central Bank as required under Circular No. 20. Circular No. 20 was issued in the year 1949 but was published in the Official Gazette only on Nov. 1951 after the act or omission imputed to Que Po Lay. Que Po Lay appealed from the decision of the lower court finding him guilty of violating Central Bank Circular No. 20 in connection with Sec 34 of RA 265 sentencing him to suffer 6 months imprisonment, pay fine of P1,000 with subsidiary imprisonment in case of insolvency, and to pay the costs.

ISSUE: Whether or not publication of Circular 20 in the Official Gazette is needed for it to become effective and subject violators to corresponding penalties.

HELD: It was held by the Supreme Court, in an en banc decision, that as a rule, circular and regulations of the Central Bank in question prescribing a penalty for its violation should be published before becoming effective. This is based on the theory that before the public is bound by its contents especially its penal

provisions, a law, regulation or circular must first be published for the people to be officially and specifically informed of such contents including its penalties.

Adm. Matter No. 2268-MJ November 7, 1980 RICARDO ESCARDA,com p l ai nant, vs. Judge JACINTO MANALO of Coron, Palawan,r es p ondent. FERNANDO,C .J.: This administrative complaint for improper conduct by complainant Ricardo Escarda against respondent Municipal Judge Jacinto Manalo of Coron, Palawan affords this Court an opportunity to set forth the guiding principle as to when the Lupon Tagapayapa under the Katarungan Pambarangay Decree1 should take cognizance of a case. Respondent Judge refused the referral of a complaint for slight physical injuries to the Lupon Tagapayapa.That was the basis of this charge against him. As the Decree was intended to remedy the clogged state of the dockets through the amicable settlement of minor disputes relying on what was aptly referred to by President Marcos as "the good sense and civic spirit of our citizenry and our community leaders," respondent Judge should be held accountable, if, as alleged, he did not comply with its provisions. His refusal, however, finds support in Circular No. 122 of the late Chief Justice Castro, as amended by Circular No. 22.3 It reads as follows,. "Effective upon your receipt of the certification by the Minister of Local Government and Community Development that an the barangays within your respective jurisdictions have organized

theirLup ons provided for in Presidential Decree No. 1508, otherwise known as the Katarungang Pambarangay Law, in implementation of the barangay system of settlement of disputes, you are hereby directed to desist from receiving complaints, petitions, actions or proceedings in cases falling within the authority of saidLup ons . Circular No. 12 dated October 30, 1978, issued by the late Chief Justice Fred Ruiz Castro is to that extent modified."4

Circular No. 22 was noted in a Letter of Implementation5 of President Ferdinand E. Marcos, dated November 12, 1979, the first paragraph of which reads as follows: "with a view to easing up the log-jam of cases and solving the problem of backlogs in the case of dockets of an government offices involved in the investigation, trial and adjudication of cases, it is hereby ordered that immediate implementation be made by all government officials and offices concerned of the system of amicably settling disputes at the barangay level as provided for in the Katarungang Pambarangay Law (Presidential Decree No. 1508)."6 It then ordered "effective compliance" with certain directives one of which is the aforesaid Circular No. 22.7

Then came this paragraph: "For this purpose, all City and Municipal Development

Officers of the Ministry of Local Government and Community Development are hereby ordered to certify the fact of organization of the Lupong Tagapayapa in their respective barangays within five (5) days from the publication of this order, and to send such certification to the Ministry of Justice and the Supreme Court, as well as to the fiscals and judges concerned."8 Prior to such certification of the organization of theLup o

Tagapayapa then, a municipal judge must comply with the Rules of Court applicable to any complaint or judicial proceeding properly cognizable by him.That is his bounden duty. Since there is no question as to the particular case of physical injuries falling within the jurisdiction of respondent Judge, he acted in accordance with law. As noted in the memorandum of Court Administrator Relova: "In the case at bar, Criminal Case No. 2041 was filed before any such certification.Therefore, respondent need not refer the case to the barangay captain or the Lupon."9

The complaint for improper judicial conduct is therefore without merit. Accordingly, it should be dismissed. As mentioned at the outset of this opinion, this resolution is intended to

provide guidance for the actuation of the judges concerned, more specifically as to the date when in accordance with Presidential Decree No. 1508 the system of conciliation provide ed for therein should be followed before the judiciary could act on the matter.

WHEREFORE, this administrative complaint is dismissed for lack of merit. Let a copy of this resolution be spread on the record of respondent Judge Jacinto Manalo.

G.R. No. 101279 August 6, 1992 PHILIPPINE ASSOCIATION OF SERVICE EXPORTERS, INC., petitioner, vs. HON. RUBEN D. TORRES, as Secretary of the Department of Labor & Employment, and JOSE N. SARMIENTO, as Administrator of the PHILIPPINE OVERSEAS EMPLOYMENT ADMINISTRATION, respondents. De Guzman, Meneses & Associates for petitioner. GRIO-AQUINO, J.: This petition for prohibition with temporary restraining order was filed by the Philippine Association of Service Exporters (PASEI, for short), to prohibit and enjoin the Secretary of the Department of Labor and Employment (DOLE) and the Administrator of the Philippine Overseas Employment Administration (or POEA) from enforcing and implementing DOLE Department Order No. 16, Series of 1991 and POEA Memorandum Circulars Nos. 30 and 37, Series of 1991, temporarily suspending the recruitment by private employment agencies of Filipino domestic helpers for Hong Kong and vesting in

the DOLE, through the facilities of the POEA, the task of processing and deploying such workers. PASEI is the largest national organization of private employment and recruitment agencies duly licensed and authorized by the POEA, to engaged in the business of obtaining overseas employment for Filipino landbased workers, including domestic helpers. On June 1, 1991, as a result of published stories regarding the abuses suffered by Filipino housemaids employed in Hong Kong, DOLE Secretary Ruben D. Torres issued Department Order No. 16, Series of 1991, temporarily suspending the recruitment by private employment agencies of "Filipino domestic helpers going to Hong Kong" (p. 30, Rollo). The DOLE itself, through the POEA took over the business of deploying such Hong Kong-bound workers. In view of the need to establish mechanisms that will enhance the protection for Filipino domestic helpers going to Hong Kong, the recruitment of the same by private employment agencies is hereby temporarily suspended effective 1 July 1991. As such, the DOLE through the facilities of the Philippine Overseas Employment Administration shall take over the processing and deployment of household workers bound for Hong Kong, subject to guidelines to be issued for said purpose. In support of this policy, all DOLE Regional Directors and the Bureau of Local Employment's regional offices are likewise directed to coordinate with the POEA in maintaining a manpower pool of prospective domestic helpers to Hong Kong on a regional basis. For compliance. (Emphasis ours; p. 30, Rollo.) Pursuant to the above DOLE circular, the POEA issued Memorandum Circular No. 30, Series of 1991, dated July 10, 1991, providing GUIDELINES on the Government processing and deployment of

Filipino domestic helpers to Hong Kong and the accreditation of Hong Kong recruitment agencies intending to hire Filipino domestic helpers. Subject: Guidelines on the Temporary Government Processing and Deployment of Domestic Helpers to Hong Kong. Pursuant to Department Order No. 16, series of 1991 and in order to operationalize the temporary government processing and deployment of domestic helpers (DHs) to Hong Kong resulting from the temporary suspension of recruitment by private employment agencies for said skill and host market, the following guidelines and mechanisms shall govern the implementation of said policy. I. Creation of a joint POEA-OWWA Household Workers Placement Unit (HWPU) An ad hoc, one stop Household Workers Placement Unit [or HWPU] under the supervision of the POEA shall take charge of the various operations involved in the Hong Kong-DH industry segment: The HWPU shall have the following functions in coordination with appropriate units and other entities concerned: 1. Negotiations with and Accreditation of Hong Kong Recruitment Agencies 2. Manpower Pooling 3. Worker Training and Briefing 4. Processing and Deployment 5. Welfare Programs

II. Documentary Requirements and Other Conditions for Accreditation of Hong Kong Recruitment Agencies or Principals Recruitment agencies in Hong Kong intending to hire Filipino DHs for their employers may negotiate with the HWPU in Manila directly or through the Philippine Labor Attache's Office in Hong Kong. xxx xxx xxx X. Interim Arrangement All contracts stamped in Hong Kong as of June 30 shall continue to be processed by POEA until 31 July 1991 under the name of the Philippine agencies concerned. Thereafter, all contracts shall be processed with the HWPU. Recruitment agencies in Hong Kong shall submit to the Philippine Consulate General in Hong kong a list of their accepted applicants in their pool within the last week of July. The last day of acceptance shall be July 31 which shall then be the basis of HWPU in accepting contracts for processing. After the exhaustion of their respective pools the only source of applicants will be the POEA manpower pool. For strict compliance of all concerned. (pp. 31-35, Rollo.) On August 1, 1991, the POEA Administrator also issued Memorandum Circular No. 37, Series of 1991, on the processing of employment contracts of domestic workers for Hong Kong. TO: All Philippine and Hong Kong Agencies engaged in the recruitment of Domestic helpers for Hong Kong Further to Memorandum Circular No. 30, series of 1991 pertaining to the government processing and deployment of

domestic helpers (DHs) to Hong Kong, processing of employment contracts which have been attested by the Hong Kong Commissioner of Labor up to 30 June 1991 shall be processed by the POEA Employment Contracts Processing Branch up to 15 August 1991 only. Effective 16 August 1991, all Hong Kong recruitment agent/s hiring DHs from the Philippines shall recruit under the new scheme which requires prior accreditation which the POEA. Recruitment agencies in Hong Kong may apply for accreditation at the Office of the Labor Attache, Philippine Consulate General where a POEA team is posted until 31 August 1991. Thereafter, those who failed to have themselves accredited in Hong Kong may proceed to the POEA-OWWA Household Workers Placement Unit in Manila for accreditation before their recruitment and processing of DHs shall be allowed. Recruitment agencies in Hong Kong who have some accepted applicants in their pool after the cut-off period shall submit this list of workers upon accreditation. Only those DHs in said list will be allowed processing outside of the HWPU manpower pool. For strict compliance of all concerned. (Emphasis supplied, p. 36, Rollo.) On September 2, 1991, the petitioner, PASEI, filed this petition for prohibition to annul the aforementioned DOLE and POEA circulars and to prohibit their implementation for the following reasons: 1. that the respondents acted with grave abuse of discretion and/or in excess of their rule-making authority in issuing said circulars;

2. that the assailed DOLE and POEA circulars are contrary to the Constitution, are unreasonable, unfair and oppressive; and 3. that the requirements of publication and filing with the Office of the National Administrative Register were not complied with. There is no merit in the first and second grounds of the petition. Article 36 of the Labor Code grants the Labor Secretary the power to restrict and regulate recruitment and placement activities. Art. 36. Regulatory Power. The Secretary of Labor shall have the power to restrict and regulate the recruitment and placement activities of all agencies within the coverage of this title [Regulation of Recruitment and Placement Activities] and is hereby authorized to issue orders and promulgate rules and regulations to carry out the objectives and implement the provisions of this title. (Emphasis ours.) On the other hand, the scope of the regulatory authority of the POEA, which was created by Executive Order No. 797 on May 1, 1982 to take over the functions of the Overseas Employment Development Board, the National Seamen Board, and the overseas employment functions of the Bureau of Employment Services, is broad and farranging for: 1. Among the functions inherited by the POEA from the defunct Bureau of Employment Services was the power and duty: "2. To establish and maintain a registration and/or licensing system to regulate private sector participation in the recruitment and placement of workers, locally and overseas, . . ." (Art. 15, Labor Code, Emphasis supplied). (p. 13, Rollo.)

2. It assumed from the defunct Overseas Employment Development Board the power and duty: 3. To recruit and place workers for overseas employment of Filipino contract workers on a government to government arrangement and in such other sectors as policy may dictate . . . (Art. 17, Labor Code.) (p. 13, Rollo.) 3. From the National Seamen Board, the POEA took over: 2. To regulate and supervise the activities of agents or representatives of shipping companies in the hiring of seamen for overseas employment; and secure the best possible terms of employment for contract seamen workers and secure compliance therewith. (Art. 20, Labor Code.) The vesture of quasi-legislative and quasi-judicial powers in administrative bodies is not unconstitutional, unreasonable and oppressive. It has been necessitated by "the growing complexity of the modern society" (Solid Homes, Inc. vs. Payawal, 177 SCRA 72, 79). More and more administrative bodies are necessary to help in the regulation of society's ramified activities. "Specialized in the particular field assigned to them, they can deal with the problems thereof with more expertise and dispatch than can be expected from the legislature or the courts of justice" (Ibid.). It is noteworthy that the assailed circulars do not prohibit the petitioner from engaging in the recruitment and deployment of Filipino landbased workers for overseas employment. A careful reading of the challenged administrative issuances discloses that the same fall within the "administrative and policing powers expressly or by necessary implication conferred" upon the respondents (People vs. Maceren, 79 SCRA 450). The power to "restrict and regulate conferred by Article 36 of the Labor Code involves a grant of police power (City of Naga vs. Court of Appeals, 24 SCRA 898). To "restrict" means "to confine,

limit or stop" (p. 62, Rollo) and whereas the power to "regulate" means "the power to protect, foster, promote, preserve, and control with due regard for the interests, first and foremost, of the public, then of the utility and of its patrons" (Philippine Communications Satellite Corporation vs. Alcuaz, 180 SCRA 218). The Solicitor General, in his Comment, aptly observed: . . . Said Administrative Order [i.e., DOLE Administrative Order No. 16] merely restricted the scope or area of petitioner's business operations by excluding therefrom recruitment and deployment of domestic helpers for Hong Kong till after the establishment of the "mechanisms" that will enhance the protection of Filipino domestic helpers going to Hong Kong. In fine, other than the recruitment and deployment of Filipino domestic helpers for Hongkong, petitioner may still deploy other class of Filipino workers either for Hongkong and other countries and all other classes of Filipino workers for other countries. Said administrative issuances, intended to curtail, if not to end, rampant violations of the rule against excessive collections of placement and documentation fees, travel fees and other charges committed by private employment agencies recruiting and deploying domestic helpers to Hongkong. [They are reasonable, valid and justified under the general welfare clause of the Constitution, since the recruitment and deployment business, as it is conducted today, is affected with public interest. xxx xxx xxx The alleged takeover [of the business of recruiting and placing Filipino domestic helpers in Hongkong] is merely a remedial measure, and expires after its purpose shall have been attained. This is evident from the tenor of Administrative Order No. 16 that recruitment of Filipino domestic helpers going to Hongkong by private

employment agencies are hereby "temporarily suspended effective July 1, 1991." The alleged takeover is limited in scope, being confined to recruitment of domestic helpers going to Hongkong only. xxx xxx xxx . . . the justification for the takeover of the processing and deploying of domestic helpers for Hongkong resulting from the restriction of the scope of petitioner's business is confined solely to the unscrupulous practice of private employment agencies victimizing applicants for employment as domestic helpers for Hongkong and not the whole recruitment business in the Philippines. (pp. 62-65, Rollo.) The questioned circulars are therefore a valid exercise of the police power as delegated to the executive branch of Government. Nevertheless, they are legally invalid, defective and unenforceable for lack of power publication and filing in the Office of the National Administrative Register as required in Article 2 of the Civil Code, Article 5 of the Labor Code and Sections 3(1) and 4, Chapter 2, Book VII of the Administrative Code of 1987 which provide: Art. 2. Laws shall take effect after fifteen (15) days following the completion of their publication in the Official Gazatte, unless it is otherwise provided. . . . (Civil Code.) Art. 5. Rules and Regulations. The Department of Labor and other government agencies charged with the administration and enforcement of this Code or any of its parts shall promulgate the necessary implementing rules and regulations. Such rules and regulations shall become effective fifteen (15) days after announcement of their adoption in newspapers of general circulation. (Emphasis supplied, Labor Code, as amended.)

Sec. 3. Filing. (1) Every agency shall file with the University of the Philippines Law Center, three (3) certified copies of every rule adopted by it. Rules in force on the date of effectivity of this Code which are not filed within three (3) months shall not thereafter be the basis of any sanction against any party or persons. (Emphasis supplied, Chapter 2, Book VII of the Administrative Code of 1987.) Sec. 4. Effectivity. In addition to other rule-making requirements provided by law not inconsistent with this Book, each rule shall become effective fifteen (15) days from the date of filing as above provided unless a different date is fixed by law, or specified in the rule in cases of imminent danger to public health, safety and welfare, the existence of which must be expressed in a statement accompanying the rule. The agency shall take appropriate measures to make emergency rules known to persons who may be affected by them. (Emphasis supplied, Chapter 2, Book VII of the Administrative Code of 1987). Once, more we advert to our ruling in Taada vs. Tuvera, 146 SCRA 446 that: . . . Administrative rules and regulations must also be published if their purpose is to enforce or implement existing law pursuant also to a valid delegation. (p. 447.) Interpretative regulations and those merely internal in nature, that is, regulating only the personnel of the administrative agency and not the public, need not be published. Neither is publication required of the so-called letters of instructions issued by administrative superiors concerning the rules or guidelines to be followed by their subordinates in the performance of their duties. (p. 448.) We agree that publication must be in full or it is no publication at all since its purpose is to inform the public of the content of the laws. (p. 448.)

For lack of proper publication, the administrative circulars in question may not be enforced and implemented. WHEREFORE, the writ of prohibition is GRANTED. The implementation of DOLE Department Order No. 16, Series of 1991, and POEA Memorandum Circulars Nos. 30 and 37, Series of 1991, by the public respondents is hereby SUSPENDED pending compliance with the statutory requirements of publication and filing under the aforementioned laws of the land.
Tayug Rural Bank vs. Central Bank of the Phils. (G.R. No. L-46158, Nov. 28, 1986) Facts:During the period from December 28, 1962 to July 30, 1963, Tayug Rural Bank, Inc. obtained 13 loans from the Central Bank of the Philippines. The loans were all covered by corresponding promissory notes prescribing the terms and conditions of the aforesaid loans. No penal clause was included in the promissory notes. On December 23, 1964, the Central Bank issued Memorandum Circular No. DLC-8, informing all rural banks that an additional penalty interest rate of ten per cent (10%) per annum would be assessed on all past due loans beginning January 4, 1965. Said Memorandum Circular was actually enforced on all rural banks effective July 4, 1965.

The Central Bank justified the imposition of the penalty by stating that it was legally imposed under the provisions of Section 147 and 148 of the Rules and Regulations Governing Rural Banks promulgated by the Monetary Board on September 5, 1958, under authority of Section 3 of Republic Act No. 720, as amended. Issue:Whether or not the Central Bank can validly impose the 10% penalty? Held:No. Sec. 3 of R.A. No. 720 reads: SEC. 3. In furtherance of this policy, the Monetary Board of the Central Bank of the Philippines shall formulate the necessary rules and regulations governing the establishment and operatives of Rural Banks for the purpose of providing adequate credit facilities to small farmers and merchants, or to cooperatives of such farmers or merchants and to supervise the operation of such banks. Nowhere in any of the above-quoted pertinent provisions of R.A. 720 nor in any other provision of R.A. 720 for that matter, is the monetary Board authorized to mete out on rural banks an additional

penalty rate on their past due accounts with Central Bank. While the Monetary Board possesses broad

G.R. No. L-6339: Lara vs del rosario Howard ChanSite Owner Posts: 414 Effectivity of the Civil Code

Lara et al were former taxi drivers of del Rosario. When the latter sold some of his vehicles, the plaintiffs who were no longer needed were dismissed. Del Rosario did not give them their one month salary in lieu of the notice required in Art. 302 of the Code of Commerce. Lara sued Del Rosario.

ISSUE: When did the new Civil Code take effect?

HELD: The SC in an obiter dictum held that the new civil code took effect on August 30, 1950. this date is exactly one year fter the same was released for circulation in the Official Gazette. It was released on August 30, 1949. Since Lara et al instituted the action after the new Civil Code took effect, which repealed the Code of Commerce, they are not entitled to any compensation as may be provided by the repealed law.

supervisory powers, nonetheless, the retroactive imposition of administrative penalties cannot be taken as a measure supervisory in character. An administrative agency cannot impose a penalty not so provided in the law authorizing the promulgation of the rules and regulations, much less one that is applied retroactively.