Labor warns manpower services firm

A first-time employer received a warning from the Department of Labor for failing to report the closure of her manpower business.

Labor hearing officer Jerry Cody issued the warning to employer Joan U. Cruz, the sole proprietor of JC Security Co. The company failed to inform the Division of Labor of its closure last February, despite the employer’s pending work permit applications for two employees.

“Joan A. Cruz is warned that any future failure on her part to notify the Director of Labor of the closure of [her] business may result in the imposition of substantial sanctions against her,” Cody said.

Records showed that JC Security Co. was established to provide security guards to businesses under “manpower” arrangements. In June and July 2003, Cruz employed Roland B. Leo and Manolito B. Lajara as security guards.

The Department of Labor, however, found that the applications submitted for both alien workers lacked some of the requirements. The department then issued notices regarding the applications in December 2003 and January 2004.

The employer’s business license expired on Jan. 10, 2004. A month after, Cruz ceased all business operations after she lost the contract with Joeten Market in Susupe to provide manpower security services.

In April 2004, the Labor Department denied both applications for failure to comply with deficiencies. Cruz and the employees appealed the denial as a means to request transfer relief.

At the hearing, Cruz admitted that she had received the deficiency notices, but did not correct them. “Her only ‘excuse’ was that her core manpower business with Joeten had ended; therefore, she had no ability to remain in the manpower business,” the hearing officer said.

According to Cody, Cruz should have notified the department as soon as she realized that she intended to cease operations due to her lack of clients. Instead, she allowed the deficiencies to remain uncorrected and waited for the department to issue denials.

Still, Cody declined the Division of Labor’s recommendation to permanently bar the employer from hiring alien workers, noting that Cruz was a first-time employer.

“Rather, Ms. Cruz should be warned that any future failure on her part to notify the Director of Labor of the closure of a business shall cause her to be sanctioned and barred from future nonresident employment,” Cody said. (Agnes Donato)