IN THE MATTER OF COMPLIANCE

VISIT CONDUCTED AT:

CASE NO. NCROO-MFO-CV-2017-12-0001-GO-SOT
REF. NO. NCROO-MFO-1710-CV-115-SOT
SFLA INC.
489 Pureza st., Sta. Mesa
Manila,

MR. ERNESTO S. LIM,

President.
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ORDER

This refers to the compliance visit conducted at the above-named

establishment on November 3, 2017 for alleged underpayment of wages,
non-payment of overtime work, non-coverage with SSS, Philhealth and
Pag-IBIG Fund and illegal dismissal based from the Request for
Assistance (RFA) filed by Elecboy D. Cervantes and six (6) other
employees on August 14, 2017. Respondent SFLA Inc. is a contractor
engaged in providing services for a principal.

The parties failed to reach an amicable settlement after

undergoing a 30-day mandatory conciliation-mediation proceedings
under the Single Entry Approach (SEnA), hence, a complaint inspection
was conducted. Department Order No. 183, Series of 2017 on complaint
inspection refers to the act of validating compliance with labor laws and
social legislation by the Secretary of Labor and Employment or his duly
authorized representative in any of the instances mentioned in Sec. I.
Rule VI of this Revised Rules.

During the visit, the Checklist and Notice of Results were issued,
furnished and explained by Labor Laws Compliance Officer (LLCO)
MICHAEL NICOLO B. JANAYON to the respondent, through its
representative JAYCEL ANN BERNARDO, where the following findings
were noted:
On General Labor Standards (GLS):
1. Underpayment of minimum wage affecting 7 employees
(Wage Order Nos. 19 and 20);
2. Underpayment of 13th month pay for year 2015 and 2016
affecting 7 employees ;
3. Non-payment of service incentive leave for year 2015 and
2016 affecting 7 employees;
4. Non-coverage/remittance of SSS (61 employees, Pag-
IBIG (116 employees), Philhealth (82 employees);
SFLA INC.
NCROO-MFO-CV-2017-12-0001-GO-SOT
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5. Non-submission of semi-annual report with cost

breakdown of 10% admin fee.

On Occupational Safety and Health Standards (OSHS):

1. No Safety and Health Committee;
2. No certified First Aider;
3. No minutes of meeting of Safety and Health Committee;
4. No Annual Medical Report;
5. No Annual Work Accident/Illness Exposure Data Report;
and
6. No Fire Safety Inspection Certificate (FSIC).

After the lapse of the ten-day correction period for violations of

general labor-standards and occupational safety and health standards, a
mandatory conference was conducted.

On March 21, 2018, respondent appeared together with three (3)

of the affected employees namely: Larry Hermosilla, Joel Flores and
Erwin Mulingtapang and received partial payment of their wage
differential from January 2015 to August 2015 and 13 th month pay for the
year 2015 in the aggregate amount of Thirty Seven Thousand Five
Hundred Pesos (P37,500.00). Respondent also submitted the minutes of
meeting of its Safety and Health Committee.

On April 10, 2018, the six (6) affected workers executed a

Quitclaim and Release in full satisfaction of their monetary claims before
hearing officer Amelita B. Jimenez in the aggregate amount of Two
Hundred Ninety Three Thousand Four Hundred Twenty Eight Pesos and
12/100 (P293,428.12).

For its failure however, to submit proof of compliance on the other

findings which is considered as a waiver on part of the respondent, this
office has no other recourse but to adopt the findings of the Labor
Inspector who is presumed to have performed his duties in a regular
manner in the absence of evidence to the contrary.

Let it be stressed that the laws on Social Security System (SSS)

Philippine Health Insurance Corporation (Philhealth) and Home
Development Mutual fund (Pag-IBIG), including their implementing Rules
and Regulations, impose upon employer to enroll all their employees
under the system. The failure of the employer to cover its employees or
to remit the contributions could give rise not only to monetary liability but
also to possible criminal actions. However, considering that violations of
the said social legislations are beyond the jurisdiction of this Office and
are exclusively exercised by the implementing agencies, such findings is
hereby endorsed to the concerned agencies for their appropriate action.
SFLA INC.
NCROO-MFO-CV-2017-12-0001-GO-SOT
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Moreover, it is worthy to note that the Fire Safety Inspection

Certificate (FSIC) is the central reference in determining compliance with
fire safety and protection under the OSHS component of the LLCS
Checklist, thus in the absence of such the fire safety and protection are
not satisfied.1

WHEREFORE, premises considered, SFLA INC. and/or MR.

ERNESTO S. LIM of 489 Pureza st., Sta. Mesa Manila is directed to
submit its semi-annual reports as per Department Order No. 18-A or
Department Order 174, S. 2017, cost breakdown and admin fee as
reflected in the service agreement, proof of existence of its Safety and
Health Committee, Annual Medical Report, Annual Work Accident/Illness
Exposure Data Report, Certificate of Proficiency on First Aid Training of
its designated First Aider and Fire Safety Inspection Certificate issued by
the Bureau of Fire Protection within ten (10) days from receipt hereof,
otherwise, the respondent’s company shall be included in the roster of
non-compliant establishments to be posted in the website of DOLE, copy
furnish all Regional Offices and shall be denied of whatever certification
issued by this Office.

SO ORDERED.

Manila, Philippines, ___________________.

Atty. ANA C. DIONE, CPA

Regional Director
Copy furnished:

MR. JOSE BAUTISTA

Senior Vice-President
NCR Operations Group
Social Security System
East Avenue, Diliman,
Quezon City

Home Development Mutual Fund

JELP Bldg., 409 Addition Hills,
Shaw Blvd., Mandaluyong City

Philippine Insurance Corporation

10th Flr., Sunny Mede Center IT Bldg.,
1614 Quezon Ave., Quezon City

Senior Supt. Jonas R. Silvano

Manila Fire District, Rizal Ave.
cor Quiricada St. Sta. Cruz, Manila

1
DOLE Memorandum No. 0615-26 issued by the Secretary of Labor and Employment on 22
June 2015.