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SAN MIGUEL CORPORATION v. CA-FORMER THIRTEENTH DIVISION

FACTS:

The Department of Labor and Employment (DOLE) conducted an inspection in San Miguel Corporation (SMC) and found that SMC was underpaying its employees for regular Muslim holiday pay. After the inspection, DOLE issued a compliance order directing SMC to consider Muslim holidays as regular holidays and to pay both Muslim and non-Muslim employees holiday pay. SMC contested the findings and appealed to the DOLE main office, but their appeal was dismissed for being filed late. SMC filed a petition for certiorari before the Court of Appeals, which modified the compliance order by reducing the Muslim holiday pay. The case was remanded to the Regional Director for the computation of the holiday pay. SMC filed a motion for reconsideration, which was denied. They then filed a petition for certiorari before the Supreme Court, but the Court noted that SMC should have filed an appeal instead.

ISSUES:

  1. Whether non-Muslim employees of SMC are entitled to Muslim holiday pay.

  2. Whether the issuance of the compliance order by the DOLE was tainted with grave abuse of discretion and whether SMC was not accorded due process.

  3. Whether the Regional Director, Undersecretary Trajano, and Undersecretary Español, Jr. had jurisdiction in issuing the compliance order.

RULING:

  1. Non-Muslim employees within the designated Muslim areas are likewise entitled to holiday pay on recognized Muslim holidays. The Court upholds the principle of no discrimination between Muslim and non-Muslim employees concerning holiday benefits.

  2. The Court found no grave abuse of discretion in the issuance of the compliance order by the DOLE and confirmed that SMC was accorded due process through regular notifications and summary hearings.

  3. The Court affirmed that the Regional Director Allan M. Macaraya had the authority to issue the compliance order as the duly authorized representative of the Secretary of Labor and Employment.

PRINCIPLES:

  • Article 169 and 170, Title I, Book V of Presidential Decree No. 1083 Recognizes legal Muslim holidays and their official observance in specified areas.

  • Article 94 of the Labor Code Entitles every worker to be paid their regular daily wage during regular holidays, which includes Muslim holidays as regular holidays within designated Muslim provinces.

  • No Distinction Principle There should be no distinction between Muslims and non-Muslims in paying benefits for Muslim holidays.

  • Visitorial and Enforcement Power Under Article 128 of the Labor Code, duly authorized representatives of the DOLE have the authority to issue compliance orders to enforce labor standards.

  • Certiorari and Appeal Distinction A petition for certiorari under Rule 65 cannot substitute for a lost appeal under Rule 45.

  • DOLE Handbook on Workers' Statutory Benefits Both Muslims and Christians are allowed not to work on officially recognized Muslim holidays in designated areas.