CHAPTER 11

Labor Relations

National Labor Relations:

6715: took effect 3-21-89
 ART - 211 as amended
State Policy;

1.To promote and emphasize the primary of free collective bargaining and negotiation including
Voluntary Arbitration
Meditation and
Conciliation as a mode of settling labor or industrial dispute
2. Promote free trade unionism as the instrument for enhancement of democracy and for the
promotion of Social Justice and Development.
3. To foster the free and voluntary organization of a strong and united labor movement
4. To promote the enlightenment of the employees concerning their right and obligations as union
members and as an employee.
5. To provide an adequate administrative machinery for the expenditures settlement of labor or
industrial dispute.
6. To ensure a stable but dynamic and just industrial peace.
7. To ensure the participation of workers in decision and policy making processes affecting their
rights duties and welfare.
POLICY IN FIXING WAGES AND
BENEFITS
To encourage a truly democratic method of
regulating the relations between the employers and
employee by means of agreement freely entered into
through Collective Bargaining No Court or
Administrative agency or official shall have the
power to set or fix wages
salaries
Hours of work
or terms and conditions of employment, except
otherwise provided under (ART 211 Labor Code)
 NATIONAL LABOR RELATION
COMMISSION (NLRC)

There shall be a National Labor Relation (5) Members each shall be chosen
Commission (NLRC) which shall be from among the nominees of the
attached to the department of labor and workers and employer’s organization
employment (DOLE) for Program/Policy respectively. The Chairman and other
and Coordination only, composed of (4) Member shall come from the
Chairman and 14 Members public sector to be recommended by
the Secretary of Labor and
Employment
 ADMINISTRATION AND
PERFORMANCE OF FUNCTIONS;

The Commission shall set EN BANC only for

purposes of promulgating rules ang
regulations governing the Hearing and
Disposition of Cases.
 PERFORMANCE OF IT’S
ADJUDICATORY POWERS
The Commission may set in (5) Five Divisions of (3) Members Each.

of the 5 divisions the 1st, 2nd and 3rd Divisions shall handle cases
coming from National Capital Region (NCR) and other parts of Luzon,
and the 4th and 5th from Visayas and Mindanao.

Commission setting EN BANC may allow cases from other division to

be heard by other division on temporary and emergency basis.

ART 213 Labor Code as amended R.A 6715

ADJUDICATION OF CASES BY THE
COMMISSION
The Concurrence of the (2) Commissioners of a division shall be
necessary for the pronouncement of Judgement or Resolution.

If the required membership in a division CANNOT BE OBTAINED, the

Chairman shall designate such commissioners from other division as
may be necessary.

The Conclusion of a division on any case submitted to it for Decision

shall be reached in consultation before the case is assigned to a
member for writing of the opinion. (MANDATORY)
PRESIDING OFFICER OF THE
COMMISSION/DIVISION

The Chairman shall be the presiding officer of

the 1st division and the other 4 Members from
the public sector shall be the presiding
commissioners of the 2nd, 3rd, 4th and 5th
division.
 HEADQUARTERS, BRANCHES AND
PROVINCIAL EXTENTION UNITS
The Commission and it’s 1st, 2nd and 3rd division shall have their main offices in Metro
Manila, and the 4th and 5th division in Cebu and Cagayan de Oro.

The Commission shall establish as many regional branches as there are Regional offices of
the Department of Labor and Employment, Sub-Regional branches or Provinsional extension
offices.

There shall be as many LABOR ARBITERS as may be necessary for the effective and
efficient operation of the commission.

Each Regional branch shall be headed by “Executive Labor Arbiter”

 QUALIFICATION OF THE
COMMISSIONERS AND MID-ARBITER
The Chairman and other commissioners shall be members of the PHILIPPINES BAR and
must have been engaged in the practice of law in the Philippines with at least (5) years
experience or exposures in labor management relations and preferrably must be a
resident in the region where they are to hold office.

The Executive Labor Arbiter and the other labor arbiter shall likewise be members of the
PHIL. BAR with at least (3) years of experience or exposure in labor management relation.
 APPOINTMENT

The Chairman of the commission and the other commissioners shall be

appointed by the PRESIDENT without confirmation by the commission on
appointment.

The Executive Labor Relation and other Labor Arbiter shall be appointed by the
President in accordance with the Civil Service Rules and Regulations
 SECURITY OF TENURE

The Chairman and the other commissioners including the Executive Labor
Arbiter as well as other Labor Arbiter, shall hold office during the good
behavior until they reach the age of (65 YRS) unless sooner removed for
cause or incapacitated to discharge the duties of their office.
 VACANCY

Appointment to any vacancy shall come from the

Nominees of the sector which nominated the predecessor.
 APPOINTMENT OF STAFF AND
PERSONNEL

The Secretary of Labor and Employment in consultation

with the chairman and other commissioners shall appoint
staffs and personnel of the commission including it’s
Regional Offices as the needs of the service may require
subject to the civil service rules and regulations
 SALARIES/BENEFITS AND
EMOLUMENTS

The chairman and other commissioners shall receive an annual salary at

least equivalent to and be entitled to the same allowances and benefits as
those presiding justice and associate justices of The Court of Appeal.

The executive labor and the labor arbiters shall receive also an annual salary
at least equivalent to and be entitled to the same allowance and benefits as
those of the Assistant Regional Director of the D.O.L.E
 JURISDICTION/POWERS OF THE LABOR ARBITERS
Except as otherwise provided under this code, The Labor Arbiter shall have Original and Exclusive
Jurisdiction to hear and decide within (30) Calendar Days, after the submission of the case by the
parties for decision without extension, on the following cases involving all workers whether
agricultural or non-agricultural
1.Unfair Labor Practice
2.Termination Dispute
3.If Accompanies with a claim for a reinstatement, those cases that workers may file involving
A)Wages
B)Rates of Pay
C)Hours of work
D)Condition of work
4.Claims for Actual, Moral, Exemplary and other forms of damages arising from employer-employee relationships.
5.Cases arising from any violation of ART. 264 of the Labor Code including the legality of strikes and lockouts.
6.Except Claims for employees Compensation, Social Security, Medicare and Maternity Benefits; All other claims
arising from employer-employee relationship including those persons in domestic or household services involving
an amount exceeding five thousand pesos (P 5,000) regardless of whether accompanied with a claim of
Reinstatement
 POWERS/JURISDICTION OF THE COMMISSION
(NLRC)
The Commission shall have powers and authority as follows:
1. The Commission shall have exclusive appellate jurisdiction over all cases decided by the Labor
Arbiters
2. Promulgate rules and regulations governing the hearing and disposition of cases before it and its
regional branches, as well as those pertaining to its internal functions and such rules and regulations as
may be necessary to carry out the purpose of the Code
3. To administer oaths, issue subpoena, summon the parties to a controversy requiring their attendance
and testimonies of witnesses pertaining any matter under investigation or hearing conducted pursuant to
this Code
4. To conduct investigation for the determination of a question, matter or controversy within its
jurisdiction and dispose of the same as may be necessary under the law
5. To hold any person in contempt directly or indirectly and impose appropriate penalties therefor in
accordance with law
6. To enjoin or restrain any actual or threatened commission of any or all prohibited or unlawful acts or to
require the performance of a particular act in any labor disputes which if not restrained or performed,
may cause grave or irreparable damage to any party or render ineffectual any decision in favor of such
party.
 POWERS/JURISDICTION OF THE COMMISSION
(NLRC)
Provided that no temporary or permanent injunction in any case involving or growing out of a labor
dispute as defined in this Code shall be issued except after hearing the testimony of witnesses, with
opportunity for cross examination in support of an allegation in the complaint made under oath, and
testimony in opposition thereto, if offered, and only after a finding of fact by the commission to that
effect:

1. That prohibited or unlawful acts have been threatened and will be committed and will be continued
unless restrained
2. That substantial and irreparable injury to complainant's property will follow
3. That as to each item relied to be granted, greater injury will be inf licted upon complainant if relief is
denied compared to that injury inflicted upon defendant
4. That complainant has no remedy at law
5. That the public of ficers charged with the duty to protect complainants property are unable and or
unwilling to furnish adequate protection (Art. 218 Labor Code as amended).
 OCULAR INSPECTION

The Chairman, any Commissioner, Labor Arbiter or their duly authorized

representatives, may, at any time during working hours, conduct an ocular
inspection on any establishment, building, ship or vessel, place, or
premises including any work, material, implement, machinery, appliance,
or any object therein, and ask any employee or laborer data (datus)
concerning any matter in question relative to the object of the
investigation (Art. 219 Labor Code as amended).
 TECHNICAL RULES NOT BINDING

In any proceeding before the Commission or any of the Labor Arbiter, the
rules of evidence prevailing in Courts of law or equity shall not be
controlling and it is the spirit and intention of this Code that the
Commission and its members and the Labor Arbiter shall use every and
all reasonable means to ascertain the facts in each case speedily and
objectively and without regard the technicalities of the law or procedures,
all in the interest of due process (Art. 221 Labor Code as amended).
 SERVICES OF COUNSEL IS REQUIRED

In any proceeding before the Commission or any Labor

Arbiter, the parties may be represented by legal counsel but it
shall be the duty of the chairman, any presiding
Commissioner or Commissioner or any Labor Arbiter to
exercise complete control of the proceedings in all stages
(ibid).
 PREFERENCE FOR AMICABLE
SETTLEMENT
Notwithstanding of any provision of law to the contrary, the
Labor Arbiter shall exert all efforts towards the amicable
settlement of a labor dispute within his jurisdiction on or
before the first hearing.

The same rule shall apply to the Commission in the exercise

of its original jurisdiction (ibid).
 APPEARANCE AND FEES
Non-lawyers may appear before the Commission or any Labor Arbiter only

1. If they represent themselves

2. If they represent their organization or members thereof
No attorneys fees, negotiation fees or similar charges of any kind arising from any
collective bargaining negotiation, or conclusion of the collective agreement shall be
imposed on any of the individual member of the contracting union. Provided, however
that attorney's fees may be charged against union funds in an amount to be agreed by the
parties.

Any contract, agreement or arrangement of any sort to the contrary shall be null and void
(Art. 222 Labor Code as amended).
 APPEAL
Decisions, awards or orders of the Labor Arbiter are final and executory unless
appealed to the Commission by any or both parties within ten (10) calendar days
from receipt of such decisions, awards, or orders.

Such appeal, may be entertained only upon any or all of the following grounds:
1. If the decision, order or award was secured through fraud, or coercion including graft
and corruption
2. If there is prima facie evidence of abuse of discretion on the part of the Labor Arbiter
3. If made purely on question of law
4. If serious errors in the finding of facts are raised which would cause grave or
irreparable damage or injury to the appellant (Art. 223 Labor Code as amended).
 APPEAL BY THE EMPLOYER ON THE
MONETARY AWARDS
In any event, the decision of the Labor Arbiter reinstating a
dismissed employee in so far as the reinstatement aspect is
concerned, shall immediately be executory even pending appeal.

The employee shall either be admitted back to work under the

same terms and conditions prevailing prior to his dismissal or
separation or, at the option of the employer, merely reinstated in
the payroll (ibid).
 THE NLRC DECISIONS IS APPEALABLE
TO CA
The period or manner of "appeal" from the NLRC to the Court of Appeals is
by Petition for Review under Rule 65 of the Rules of Court pursuant to the
Ruling of St. Martin Funeral Homes vs. NLRC 295 SCRA 494.

It states that the petition may be filed not later than sixty (60) days from
notice of the judgment, or resolution sought to be assailed.
 MOTION FOR RECONSIDERATION OF THE NLRC
DECISION IS MANDATORY REQUIREMENT

The filing of a Petition for Certiorari under Rule 65, without first moving for
reconsideration of the assailed Resolution, warrants the outright
dismissal of the case. As consistently held in numerous cases, a motion
for reconsideration is indispensable, for it affords the NLRC an
opportunity to rectify errors or mistakes it might have committed before
resort to the court can be had. (Veloso vs. China Air Lines Ltd., 310 SCRA
274).
 WHERE THE ORDER OF REINSTATEMENT WAS
REVERSED ON APPEAL

Even if the order of reinstatement of the Labor Arbiter is reversed on appeal, it is

obligatory upon the employer to reinstate and pay the wages of the dismissed
employee during the period of appeal until reversed by the higher court.

On the other hand, if the employee has been reinstated during the appeal period,
and such reinstatement order was reversed with finality, the employee is not
entitled to reimburse, the salary he received for he is entitled to such more so, if he
actually rendered services during the period (Roquero vs. PAL, 401 SCRA 424).
 CERTIORARI UNDER RULE 65 ALLOWED EVEN NLRC
DECISION HAS BECOME FINAL AND EXECUTORY

The fact that the assailed decision has become final and executory after a ten
(10) day period does not preclude the adverse party from challenging it by way
of an original action for Certiorari under Rule 65 of the Rules of Court.

He may even further pray for the issuance of a restraining order or temporary
injunction to prevent the immediate execution of the assailed decision (Rogelio
Caramol vs. NLRC 225 SCRA 582).
 EFFECT OF FORUM SHOPPING

If the acts of the party or his counsel clearly constitute willful and
deliberate forum shopping, the same shall be a ground for summary
dismissal with prejudice and shall constitute direct contempt, as well
as a cause for administrative sanction (Canuto Jr. vs. NLRC 360
SCRA 52).
 VERIFICATION

A petition for review on Certiorari under Rule 65 of the Rules of Court must be
verified by an affidavit that the affiant has read the pleading and the
allegations therein are true and correct of his personal knowledge or based
on authentic records (LDP Mktg. and Lourdes Pena vs. Erlinda Monter GR No.
159653, 25 January 2006).

There is substantial compliance if verification is executed by an attorney

(Santos VS. CA 360 SCRA 521).