On April 25, 2025, HR professionals and business leaders from various industries gathered online for an insightful IR Kapihan session titled “DOLE Audits and Compliance: Best Practices for Ensuring Legal Adherence.” The event featured Atty. Noel Balsicas, CPA, FPM, Labor Relations Manager at San Miguel Corporation, as the keynote speaker.
Atty. Balsicas shared valuable insights from his extensive experience in labor relations, focusing on how organizations can proactively comply with labor laws and prepare for audits conducted by the Department of Labor and Employment (DOLE). His presentation served as a practical guide for HR professionals, centered on key compliance areas.
Understanding the Legal Basis of Compliance
The session began by grounding participants in the legal foundations of labor compliance, particularly DOLE’s visitorial and enforcement powers. It also covered essential compliance areas such as:
🔹 General Labor Standards
🔹 Occupational Safety and Health (OSH) Standards
🔹 Security of Tenure
🔹 Contracting/Subcontracting Regulations
These are critical domains every employer must understand to ensure legal adherence.
Scope and Process of DOLE Inspections
Participants were guided through the typical components of a DOLE inspection or compliance audit, which include:
🔸 Documentary review of employment records and company policies
🔸 Ocular inspection of the work environment
🔸 Interviews with workers
🔸 Observations based on the Plain View Doctrine, where visible violations may lead to findings even without documentation
Approaches to Ensuring Compliance
Two main strategies were discussed:
🔹 Regulatory Approach – Emphasizes strict adherence to labor laws through structured processes
🔹 Developmental Approach – Focuses on education, capacity building, and continuous improvement to foster a culture of voluntary compliance
Securing Management Commitment
To gain leadership support, Atty. Balsicas encouraged answering the question, “What’s in it for me?” He emphasized that understanding the cost of non-compliance—ranging from penalties and legal issues to reputational damage—can help build a strong case for top-level investment in compliance efforts.
Collaborating with Regulators
The session concluded with a call to view regulatory bodies as partners rather than adversaries. This includes:
🔸 Seeking guidance on unclear areas
🔸 Welcoming audits and inspections openly
🔸 Promoting voluntary compliance
🔸 Practicing internal self-regulation to detect and address potential issues early
Key Takeaways for the John Clements HR Department
As part of the HR team at John Clements, here are several actionable points we can implement based on the session:
✅ Conduct a Compliance Self-Check
Regularly audit our policies, employment records, and practices to ensure alignment with DOLE’s general labor standards and OSH requirements.
✅ Develop a DOLE-Readiness Checklist
Create a standardized checklist for inspections, covering key documents, safety protocols, and employee interview readiness.
✅ Promote Management Engagement
Present the business case for compliance to leadership by outlining potential risks and the benefits of proactive adherence.
✅ Foster a Culture of Voluntary Compliance
Integrate labor law education into employee orientation and ongoing training for HR staff, team leads, and managers.
✅ Strengthen Collaboration with DOLE
Engage more openly with DOLE for consultations, clarifications, and guidance on labor-related matters.
✅ Establish an Internal Policing System
Designate compliance champions within HR or cross-functional teams to monitor, report, and recommend improvements in our labor compliance efforts.
These steps not only reduce legal and reputational risks but also strengthen our commitment to ethical HR practices, employee welfare, and organizational integrity.
Strengthen Your Compliance with Expert HR Support
Ensure your organization is audit-ready with best practices from industry leaders. John Clements Consultants offers tailored HR solutions to help you navigate DOLE compliance with confidence.
Contact us today to learn more.
