+

I. JURISDICTION

+ LABOR ARBITER

Who is a Labor Arbiter?

The

Labor Arbiter is an official in the

Arbitration Branch of the National
Labor Relations Commission (NLRC)

who hears and decides cases falling

under his original and exclusive
jurisdiction as provided by law

What are the qualifications required to

become a Labor Arbiter?
Article 215, Labor Code:

Must be member of the Philippine Bar

Must have been engaged in the practice of law in the

Philippines for at least ten (10) years

Must have experience or exposure in handling labor

management relations for at least five (5) years

What are the powers of Labor

Arbiters?
Adjudicatory

Contempt

Power

power

power

to conduct ocular inspection

(Art 219)

+ What are the cases over which the Labor

Arbiter has original and exclusive
jurisdiction?
Unfair

Labor Practices;

Termination

Disputes;

If

accompanied with a claim for reinstatement,

those cases that workers may file involving wages,
rates of pay, hours of work and other terms and
conditions of employment;

Claims

for actual, moral and exemplary and other

forms of damages arising out of EREE relations;

Cases

arising from any violation Art. 264 of the

Labor Code, including questions involving the
legality of strikes and lockouts;

Other

claims arising from EEER relations,

including those of persons in the domestic or
household service, involving an amount
exceeding P5,000 regardless of whether
accompanied with a claim for reinstatement.

Execution of awards of voluntary arbitrator (Art

262-A)

Enforcement

of Compromise agreements
when there is non-compliance by any party
(Art 227)

Overseas
Wage

employment disputes (RA 8042)

distortion where no CBA (RA 6727)

+ ARE THERE EXCEPTIONS TO THE ORIGINAL

AND EXCLUSIVE JURISDICTION OF LABOR
ARBITERS?
Article 263(g) :

When the DOLE Secretary or the President exercises

his power to assume jurisdiction over national interest
cases and decide them himself.

When the NLRC exercises its power of compulsory

arbitration over similar national interest cases that are
certified to it by the DOLE Secretary pursuant to the
exercise by the latter of his certification power

10

Articles 261 and 262:

When the parties agree to submit the case to voluntary
arbitration before a Voluntary Arbitrator or panel of Voluntary
Arbitrators.

+ What are some principles on jurisdiction

over strikes and lockouts?
Jurisdiction over the legality of strikes and lockouts NOT
affecting national interest:

Strikeable reason

Strike procedures followed

Prohibited acts during strikes

RTC:

3rd Parties being affected by strike

Crimes committed whether in relation to strike or not

11

12

What are some principles on

jurisdiction over OFWs?

R.A. No. 8042 Migrant Workers and

Overseas Filipino Act of 1995

Claims for actual, moral, exemplary and

other forms of damages that may be
lodged by overseas Filipino workers are
cognizable by the Labor Arbiters

13

Whether employed locally or

overseas, all Filipino workers enjoy
the protective mantle of the
Philippine labor and social
legislation, contract promulgated, or
by determination or conventions
agreed upon in a foreign country.
PNB vs Cabansag

+ Are there OFW-related cases over

which the POEA, and not the Labor
Arbiters
has
jurisdiction?
All

cases which are administrative in

character
recruitment violations
violations of conditions of license

Disciplinary

action cases and other special

cases which are administrative in character
against foreign principals or employers
against land-based OFWs and seafarers.

14

+ What are some principles on

jurisdiction over wage distortion?
Labor Arbiters have jurisdiction to
hear and decide wage distortion
cases after the parties and the
National
Conciliation
and
Mediation Board (NCMB) failed to
correct
the
distortion.

15

16

What are some principles on jurisdiction

over enforcement or annulment of
compromise agreement?

Art 227
Non-compliance
Prima

(to enforce)

facie evidence that the

settlement was obtained through
fraud, misrepresentation or coercion
(to nullify)

17

What are some principles on Jurisdiction

over execution and enforcement of
decisions of Voluntary Arbitrators?
Where the Voluntary Arbitrator or the panel of Voluntary
Arbitrators who rendered the decision is absent or
incapacitated for any reason, the Labor Arbiter may:

take cognizance of a motion for the issuance of the writ of

execution filed by such party and accordingly issue such writ
addressed to and

requiring the public officers mentioned above to execute the

final decision, order or award of the Voluntary Arbitrator or
panel of Voluntary Arbitrators. (Article 262-A)

+ What about the contested cases under the

exception clause in Art 128 (b)?
The Labor Arbiters have jurisdiction over contested cases
under the exception clause in Article 128(b) . which states:

The Secretary or his duly authorized

representatives shall issue writs of execution to the
appropriate authority for the enforcement of their
orders, except in cases where the employer
contests the findings of the labor employment
and enforcement officer and raises issues
supported by documentary proofs which were
not considered in the course of inspection.

18

19

The jurisdiction of the Labor Arbiter is found in

the exception clause of Art 128 (b) where:
the

EMPLOYER contests the findings of the

labor employment and enforcement officer
and

raises

issues supported by documentary

proofs
which

were not considered in the course of

inspection

20

Where is the venue to file

complaint?

All cases which Labor Arbiters have authority to hear and

decide may be filed in the Regional Arbitration Branch having
jurisdiction over the workplace of the complainant or petitioner.

Where two (2) or more Regional Arbitration Branches have

jurisdiction over the workplace of the complainant or petitioner,
the Branch that first acquired jurisdiction over the case shall
exclude the others.

When venue is not objected to before the filling of position

papers such issue shall be deemed waived.

21

The venue of an action may be changed or transferred

to a different Regional Arbitration Branch other than
where the complaint was filed by written agreement of
the parties or when the Commission or Labor Arbiter
before whom the case is pending so orders, upon
motion by the proper party in meritorious cases.

Cases involving overseas Filipino workers may be filed

before the Regional Arbitration Branch having
jurisdiction over:
the place where the complainant resides
where the principal office of any of the respondents is
situated, at the option of the complainant.

+ What is Mandatory Conciliation

Mediation Conference?
Nature of proceedings: nonlitigious
PURPOSE:
Amicably settling the case upon a fair
compromiseDetermining the real parties in the
interest
Determining the necessity of amending the
complaint and including all causes of
actionDefining and simplifying the issues in the case
Entering into admissions or stipulation of facts
Threshing out all the other preliminary matters

22

23

What is the effect of a compromise

agreement?

final and binding upon the parties

and shall have the force and effect of

judgment rendered by the Labor Arbiter

MCMC shall, except for justifiable grounds, be

TERMINATED within 30 calendar days from the
date of the first conference

+ What are the effects of failure of

conciliation and mediation?

If parties fail to agree upon an amicable settlement

Labor Arbiter

stage and

terminate the conciliation and mediation

proceed to pursue the other purposes

mentioned above.

LA direct the parties

simultaneously file their respective

POSITION PAPERS on the issues agreed upon by the
parties on the ISSUES AGREED upon by the parties

24

25

What are the effects of Nonappearance of parties?

COMPLAINT/PETITIONER (2 meetings-MCMC)

ground for dismissal without prejudice

RESPONDENT
second conference shall proceed as scheduled in the
summons
fails to appear LA immediately terminate MCMC
allow the complainant or petitioner to file his
VERIFIED POSITION PAPER and submit evidence
render DECISION

+ Peoples Broadcasting Service

vs Sec of Labor
G.R. No. 179652, March 6, 2012
If

a complaint is brought before the DOLE to give

effect to the labor standards provisions of the Labor
Code or other labor legislation, and there is a
finding by the DOLE that there is an existing
employer-employee
relationship, the
DOLE
exercises jurisdiction to the exclusion of the NLRC

If

the DOLE finds that there is no employeremployee relationship, the jurisdiction is properly
with the NLRC.

26

27

complaint filed with the DOLE, and it is

accompanied by a claim for reinstatement,
the jurisdiction is properly with the Labor
Arbiter.

A complaint filed with the NLRC, and there

is still an existing employer-employee
relationship, the jurisdiction is properly
with the DOLE.

National Labor Relations

Commission

29

What is the NLRC?

The

Commission an agency attached to the Department

of Labor and Employment solely for the purpose of
program and policy coordination. (sec. 219, Labor
Code)

Tripartite

composition

What is the composition of the NLRC?

One (1) Chairman and Twenty-three (23) Members.

Eight (8) members each shall be chosen ONLY from among the
nominees of the WORKERS and EMPLOYERS organization.

The Chairman and seven (7) remaining members shall come from
the PUBLIC SECTOR. (sec. 219, Labor Code)

30

31

What are the qualifications of the

Chairman/Commissioners?

Member of the Philippine Bar;

Must have been engaged in the practice of law for at least fifteen
(15) years;

With at least five (5) years experience or exposure in the field of

labor-management relations;

And preferably be residents of the region where they shall hold

office. (sec 221, Labor Code)

32

The Chairman and Commissioners shall be appointed by the

President.

The Chairman and the Commissioners shall hold office during good
behavior until they reached the age of sixty-five (65) UNLESS
1.
2.

Removed for cause

Incapacitated to discharge their duties

The President may extend their services up to the maximum age of

seventy (70) years upon recommendation of the Commission en banc.
(sec. 221, Labor Code)

33

What are the Powers of the

Commission?

Rule-making power

Power to issue Compulsory Processes

Power to Investigate

Contempt Powers

Power to issue Injunctions and Restraining Order (sec. 224, Labor Code)

Ocular Inspection (sec. 225, Labor Code)

What does the Rule-making Power

involve?
The Commission has the power to promulgate rules and
regulations:

1.

Governing the disposition of cases;

2.

Internal functions;

3.

Rules necessary to carry out the purposes of

the Code. (sec. 224, par. a, Labor Code)

34

What are included in the Compulsory

Processes?

1.

Administer oaths

2.

Summon parties

3.

Issue subpoenas to
a)

b)

Require the attendance and testimony of witnesses;

Production of documents. (sec. 24, par. b, Labor Code)

35

What does the Power to Investigate

include?
1.

To conduct investigations for the

determination of a question, matter or
controversy within its jurisdiction (original
and appellate);

2.

Proceed to hear and determine the disputes

in the manner provided under paragraph (c)
of Art. 225. (sec. 224, par. c, Labor Code)

36

37

What is Contempt?
It

is defined as a disobedience to the Court by setting

up an opposition to its authority, justice and dignity. It
signifies not only a willful disregard or disobedience to
the Courts orders but such conduct as tends to bring
the authority of the court and the administration of law
into disrepute or in some manner to impede the
administration of justice. (Industrial and Transport
Equipment vs. NLRC, G.R. No. 113592, January 15, 1998)

Direct and Indirect Contempt

38

What is included in the Power to

Issue Injunctions?

Injunction
Temporary Restraining Order

39

What is included in the Power to

Conduct Ocular Inspection?

Conduct an ocular inspection at anytime

during work hours on any establishment,
building, ship or vessel, place or premises,
including any work, material, implement,
machinery, appliance or any object therein;

Ask any employee, laborer, or any person for

any information or data concerning any
matter or question relative to the object of
the investigation. (sec. 225, Labor Code)

+ JURISDICTION
Exclusive and Original

40

41

What are within the exclusive and

original jurisdiction of the NLRC?

Certified Cases; (sec. 269, par. 9 and sec. 270, 2nd par., Labor Code)

Contempt Powers; (sec. 244, Labor Code)

Injunction; (sec. 224, Labor Code)

Extraordinary Remedies. (Rule XII, 2011 NLRC Rules)

+ What does CERTIFIED CASES mean?

This

refers to labor disputes certified to the

Commission for compulsory arbitration under Art. 263
(g) of the Labor Code. (sec. 2, Rule VIII, 2011 NLRC Rules)

42

43

What are its Effects?

The impending strike or lockout is AUTOMATICALLY

enjoined.

If there is already WORK STOPPAGE:

1.
2.

All striking or locked out employees shall immediately

return to work;
The employer shall resume operations and readmit all
workers under the same terms and conditions. (sec. 3, par. a,
Rule VIII, NLRC Rules)

44

In case of DEFIANCE, the non-compliance with the certification

order shall be considered an ILLEGAL ACT committed in the
course of the strike or lockout. (sec. 4, Rule VIII, 2011 NLRC Rules)

Disciplinary actions
1.

2.
3.
4.

Dismissal or loss of employment status;

Payment of backwages, damages;
Other affirmative relief;
Criminal prosecution. (sec. 269, par. g, Labor Code)

45

What is the Procedure in

Certified Cases?

The case shall be resolved within thirty (30) calendar days from
the receipt of the complete records by the Commissioner.

In case of Clarificatory Hearing

1.
2.

Notice shall be issued within five (5) days from receipt of the
records and served to the parties.
Resolved within sixty (60) days from receipt of complete records

No Motion for Reconsideration shall be entertained. (sec. 5, Rule

VIII, 2011 NLRC Rules)

+ What is DIRECT CONTEMPT?

1.

Misbehavior in the presence of or so near the

Chairman or Commissioner or Labor Arbiter as
to obstruct or interrupt the proceedings
including:
a)

Disrespect towards said officials

b)

Offensive acts towards others

2.

Refusal to be sworn to or answer as a witness;

3.

Refusal to subscribe to an affidavit or deposition

when lawfully required to do so. (sec. 224, par. d,
Labor Code)

46

47

What is the procedure?

Summary

Judgment made by the Labor Arbiter may be appealed to

the NLRC within five (5) days from notice of the same.
1.

Its execution shall be suspended upon filing of the bond

Judgment of the Commission shall be immediately

executory and unappealable. (sec. 1, 2nd par., Rule IX, 2011
NLRC Rules)

+ What is INDIRECT CONTEMPT?

1.

Misbehavior of any officer or employee in the

performance of his official duty or transaction;

2.

Disobedience or resistance to a lawful writ, order or

decision;

3.

Any abuse of, or any unlawful interference with the

processes or proceedings NOT constituting direct
contempt;

4.

Improper conduct tending, directly or indirectly, to

impede, obstruct or degrade the administration of justice;

5.

Assuming to be an attorney or representative of a party

without authority;

6.

Failure to obey a subpoena;

7.

Analogous grounds. (sec. 2, Rule IX, 2011 Rules)

48

49

What is the procedure?

It follows the procedure under Rule 71 of the

Rules of Court. (sec. 224, par. d, Labor Code)

May be initiated motu proprio or formal charge.

Filed before the Commission or Regional

Arbitration Branch, as the case may be.
1.

Verified petition with supporting particulars and documents.

2.

Complied with the requirements of filing initiatory pleadings.

50

Failure to attend the hearing will result in the WAIVER of

respondent to be present thereat.

A Writ of Execution may be issued to enforce the decision. (sec. 2,

pars. A & B, Rule IX, 2011 NLRC Rules)

51

What are the PENALTIES?

DIRECT

Against the Commission

1.
2.

CONTEMPT

Fine not exceeding P500.00;

Imprisonment not exceeding five (5) days, or both.

Against the Labor Arbiter

1.
2.

Fine not exceeding P100.00;

Imprisonment not exceeding one (1) day, or both. (sec. 224, par. d,
Labor Code)

52

INDIRECT
1.

CONTEMPT

Fine of P1,000.00/P500.00 per day for every act of indirect

contempt, as the case may be.

Each day of defiance or non-enforcement of a final

order, resolution, decision, shall constitute an indirect
contempt of the Commission.

If the contempt consist of violation of injunction or

omission to do an act, the latter may be made liable to
damages. (sec. 2, par. D, Rule IX, 2011 NLRC Rules)

A writ of execution may be issued. (sec. 2, par. E, Rule

IX, 2011 NLRC Rules)

53

What is INJUNCTION?

The power to enjoin or restrain any actual at threatened commission of

any or all prohibited or unlawful acts or to require performance of a
particular act in any labor dispute. (sec. 224, par. e, Labor Code)

+ When shall the Injunction be granted?

May be granted only after hearing and after the finding

of fact by the Commission:
1.
2.
3.

4.
5.

Prohibited or lawful acts;

Substantial or irreparable damage to property;
Greater injury will be inflicted upon petition by
the denial of the relief than will be inflicted upon
respondent by the granting of the relief;
No adequate remedy at law;
Public officers charged with the duty to protect
petitioners property are unable or unwilling to
provide protection. (sec. 224, par. e, Labor Code)

54

55

What is the procedure?

The injunction shall issue only after hearing the testimony of

witnesses, in support of the allegations of a complaint.

Hearing shall be held after due and personal notice to all

known persons against whom the relief is sought, the Chief
Executive and other public local officials. (sec. 224, par. e,
Labor Code)

The reason for the injunction must be specified but it is not

necessary to allege in verbatim the requisites. (HSBC
Employees Union vs NLRC, G.R. No. 113541, Nov. 22, 2001)

+ When shall Temporary Restraining Order

56

issue?

It may be issued if petitioner shall also allege that

unless the TRO is issued without notice, a substantial
and irreparable injury to petitioners property will be
unavoidable, upon testimony and affidavits sufficient to
justify its issuance. (sec. 6, Rule X, 2011 NLRC Rules)

+ What are the important things to

57

remember?

Injunction or TRO shall be effective only upon

posting of cash bond of P50,000.00 or higher. (sec.
1, 3rd par. and sec. 7, Rule X, 2011 NLRC Rules)

TRO effective only for twenty (20) days. (sec.8, Rule X,

The order enjoining the performance of illegal

acts shall be IMMEDIATELY EXECUTORY. (sec. 9,

2011 NLRC Rules)

Rule X, 2011 NLRC Rules)

Parties are not precluded from pursuing

ordinary remedies by suit. (sec. 10, Rule X, 2011 NLRC Rules)

58

CASES
PAL

vs. NLRC, G.R. No. 120567, March 20, 1998

Injunction

is not a cause of action in itself but

merely a provisional remedy, an adjunct to the
main suit.
The power of the NLRC to issue a writ of
injunction originates from any labor dispute upon
application by a party thereof.

+ What is EXTRAORDINARY REMEDIES?

59

It is a remedy allowing an aggrieved party to annul or

modify an order or resolution of Labor Arbiters
including those issued during execution proceedings
upon filing of a VERIFIED PETITION. (sec. 1, Rule XII,
2011 NLRC Rules)

60

When shall the verified petition be

entertained?

May be entertained only if there is NO appeal or any other plain,

speedy and adequate remedy and only on the ff. grounds:
1.

2.
3.
4.
5.

Prima facie evidence of grave abuse of

discretion;
Errors in the findings of facts;
A party is prevented from taking an appeal
through FAME;
Purely questions of law;
Injustice. (sec 2, Rule XII, 2011 NLRC Rules)

+ What is the EFFECT of the filing of the

61

petition?

The filing of the petition shall NOT suspend the proceedings

before the LA.

In case of execution, the money or credits shall NOT be released

within fifteen (15) calendar days. (sec. 9, Rule XII, 2011 NLRC Rules)

62

What is the procedure?

Filed within ten (10) days from receipt of the order or

resolution before the Commission. (sec. 3, Rule XII, 2011
NLRC Rules)

Other party shall be served with a copy of the petition.

Within ten (10) days, respondent shall file his answer,
otherwise, waiver. (sec. 7, Rule XII, 2011 NLRC Rules)

If accompanied by an injunctive relief, Commission may

issue a writ of preliminary injunction based on the grounds
under Sec. 3, Rule 58 of the ROC. (sec. 10, Rule XII, 2011
NLRC Rules)

63

In resolving the petition, the Commission may

1.
2.

Render judgment, and/or

Grant a final injunction perpetually enjoining
the LA from the commission of the act/s or
confirming the preliminary injunction

Petition may be denied if

1.
2.
3.
4.

Patently without merit;

Prosecuted manifestly for Delay;
Questions raised are Unsubstantial;
When there is appeal or other remedy. (sec. 13,
Rule XII, 2011 NLRC Rules)

+ National LABOR RELATIONS

COMMISSION

Appellate Jurisdiction
Appeal

64

+ What cases fall under the Exclusive

Appellate jurisdiction of NLRC?

1. Cases decided by the Labor Arbiters (Art 223 [b] of the

Labor Code and Sec. 10 RA 8042 (Migrant Workers Act);

2. Contempt cases decided by the Labor Arbiters (Section 1,

Rule XXIII, Book V, Rules to Implement the Labor Code, as
amended by Department Order No. 40-03, Series of 2003;
Section 1, Rule X);

3. Cases decided by the DOLE Regional Directors or the duly

authorized hearing officers of the Department of Labor and
Employment in the exercise of its adjudicatory function
under Art 129 of the Labor Code over monetary claims of
workers amounting to not more than P5,000

65

66

What are the grounds for appeal?

1.

If the decision, order or award was secured through Fraud

or coercion, including graft and corruption;

2.

If made purely on questions of Law;

3.

If serious Errors in the findings of facts are raised which

would cause grave or irreparable damage or injury to the
appellant; and

4.

If there is Prima facie evidence of abuse of discretion on

the part of the Labor Arbiter
(Art. 223, Labor Code)

67

Where do you file an appeal?

The

appeal shall be filed with the Regional

Arbitration Branch or Regional Office where the
case was heard and decided (Section 3, Rule VI,
2011 NLRC Rules of Procedure)

68

WheN must the appeal be filed?

I. Decisions of the Regional Director within 5 calendar days from

receipt of the order

II. Decisions of the Labor Arbiter within 10 calendar days from the
receipt of the decision, award or order by the council or
representative of record and not from the date of receipt thereof by
the party

(Section

1, Rule VI, 2011 NLRC Rules of Procedure)

69

Is the period to appeal extendible?

No. Period to appeal is mandatory and jurisdictional. Failure to do so

renders the questioned decision final and executory as to deprive the
appellate court of jurisdiction to alter the final judgment of the
Regional Directors and Labor Arbiters. (Delgado v. CA, G.R. No.
137881, Dec. 21, 2004; Corporate Inn Hotel v. Lizo, G.R. No. 148279,
May 27, 2004; Sapitan v. JB Line Bicol Express, Inc., G.R. No. 163775,
Oct. 19, 2007)

The right to perfect an appeal is lost.

NO MOTION OR REQUEST FOR EXTENSION OF THE PERIOD WITHIN

WHICH TO PERFECT AN APPEAL SHALL BE ALLOWED.

70

What are the REQUISITES FOR

PERFECTION of an appeal?

The appeal should be filed within the

reglementary period;

Filing of a verified memorandum of appeal

Grounds
Issues raised
Arguments propounded
Relief(s) sought
Statement of the date appellant received the appealed decision, order or
resolution;
Three legibly typewritten or printed copies;

Proof of payment of the required appeal fee

(Section 4[a], Rule VI of the 2005 Revised Rules of Procedure of the NLRC)

71

What are the REQUISITES FOR

PERFECTION of an appeal?

In case of monetary award, posting of a bond

equivalent in amount to the monetary award
exclusive of damages and attorneys fees;
Proof of service upon the other parties; and
Certification of non-forum shopping and
verification

(Section 4, Rule VI of the 2011 Rules of Procedure of the NLRC)

72

How much is the appeal fee?

One Hundred Fifty Pesos (P150.00) to the Regional

Arbitration Branch or Regional Office of origin (Section 5,

Rule VI, 2005 NLRC Rules of Procedure)

Failure to pay confers directory power to dismiss an

appeal-

73

Is the appeal fee MANDATORY?

YES. Payment of appeal docket fee is both mandatory and

jurisdictional. (Saint Louis University, Inc. v. Cobarrubias, G.R.
No. 187104, August 3, 2010]

Are there exceptions?

Yes.

74

What are the exceptions to the

strict observance on the rule on
docket fees?

1) most persuasive and weighty reasons; (2) to relieve a litigant from an

injustice not commensurate with his failure to comply with the
prescribed procedure; (3) good faith of the defaulting party by
immediately paying within a reasonable time from the time of the
default; (4) the existence of special or compelling circumstances; (5) the
merits of the case; (6) a cause not entirely attributable to the fault or
negligence of the party favored by the suspension of the rules; (7) a lack
of any showing that the review sought is merely frivolous and dilatory;
(8) the other party will not be unjustly prejudiced thereby; (9) fraud,
accident, mistake or excusable negligence without the appellant's fault;
(10) peculiar, legal and equitable circumstances attendant to each case;
(11) in the name of substantial justice and fair play; (12) importance of
the issues involved; and (13) exercise of sound discretion by the judge,
guided by all the attendant circumstances.
(Saint Louis University, Inc. v. Cobarrubias, G.R. No. 187104, Aug. 3, 2010, citing Lim v. Delos Santos,
G.R. No. 172574, July 31, 2009)

75

IS appeal bond REQUIRED IN ALL

CASES OF APPEAL?

NO. Required only in case there is a MONETARY AWARD in

the Labor Arbiters order or judgment.

PURPOSE: To insure, during the period of appeal, against any

occurrence that would defeat or diminish recovery under the
judgment if it is subsequently affirmed. It also validates and
justifies, at least on a prima facie basis, an interpretation that
would limit the amount of the bond to the aggregate of the
sums awarded other than in the concept of moral and
exemplary damages. This is consistent with the State s
constitutional mandate to afford full protection to labor in
order to forcefully and meaningfully underscore labor as a
primary social and economic force. (Forever Security &
General Services v. Flores, G.R. No. 147961, Sept. 7, 2007)

76

What are the kinds of appeal

bond?

Cash Deposit or Surety Bond [equivalent in amount to the

monetary award, exclusive of damage and attorneys fees
(Sec 6, Rule VI, 2011 NLRC Rules of Procedure)]

Real property bond in lieu of cash or surety bond is allowed

(UERM-Memorial Medical Center v. NLRC, G.R. No. 110419,
March 3, 1997)

The bond posted should be in effect until the final

disposition of the case

77

WHEN SHOULD THE BOND BE

POSTED?

Within the 10-calendar day reglementary period. (Gaudia v.

NLRC, G.R. No. 109371, Nov. 18, 1999; Lamzon v. NLRC, G.R. No.
113600, May 28, 1999)

The bond posted should be in effect until the final

disposition of the case

78

What are other rules in appeal

bond?
1.

Award of damages and attorneys fees excluded from the

computation of bond. (Navarro v. NLRC, G.R. No. 116464, March
1, 2000)

2.

No monetary award, no appeal bond required. (Aba v. NLRC,

G.R. No. 122627, July 28, 1999)

3.

Labor Arbiters decisions or orders should state the amount

awarded. (Section 18, Rule V, 2011 Revised Rules of Procedure of
the NLRC.)

4.

If the amount of the monetary award is not included in the

judgment, the appeal bond is not required to be posted.

Long Christmas holiday, not an excuse for late filing of bond.

(Mary Abigails Food Services, Inc. v. CA, [G.R. No. 140294, May
9, 2005]

79

what is required of the Surety

BOND?

It must be issued by a reputable bonding company duly

accredited by the Commission or the Supreme Court
Accompanied by the following:

joint declaration under oath by the employer, his counsel, and the bonding company,
attesting that the bond posted is genuine, and shall be in effect until final disposition of the
case.

an indemnity agreement between the employer-appellant and bonding company;

proof of security deposit or collateral securing the bond: provided, that a check shall not be
considered as an acceptable security;

a certificate of authority from the Insurance Commission;

certificate of registration from the Securities and Exchange Commission;

certificate of authority to transact surety business from the Office of the President;

certificate of accreditation and authority from the Supreme Court; and

notarized board resolution or secretary's certificate from the bonding company showing its
authorized signatories and their specimen signatures.
(Section 6, Rule VI of the 2011 Rules of Procedure of the NLRC)

80

Can there be a Motion to reduce

bond?

General Rule: No motion to reduce bond shall be entertained

Exception: Meritorious grounds AND upon posting of a bond

in a reasonable amount in relation to the monetary award
(Sec 6, Rule 6, 2011 NLRC Rules of Procedure)

N.B. Mcburnie vs. Ganzon Case

81

What happens if an appeal is

perfected?

Labor Arbiter loses jurisdiction over the case (Sec 9, Rule VI,
2011 NLRC Rules of Procedure)

Prevailing party entitled as a matter of right, to a writ of

execution; issuance becomes ministerial duty (Henry Clyde
Abbott v. NLRC, G.R. No. L-65173, Oct. 27, 1986)

Commission shall limit itself to reviewing and deciding only

the specific issues that were elevated on appeal (Sec 4(d),
Rule VI, 2011 NLRC Rules of Procedure)

+ IS THERE A CASE WHERE THE LABOR ARBITERS

DECISION IS EXECUTORY DESPITE PERFECTION
OF AN APPEAL?
Yes.

In cases where the decision of the

labor arbiter orders the reinstatement of a
dismissed or separated employee
IMMEDIATELY EXECUTORY insofar as the
reinstatement aspect is concerned and the
posting of an appeal bond by the employer
shall not stay such execution. (Article 223,
Labor Code)

82

83

What are the Options of the Employer

in Complying with an Order of
Reinstatement?
1.
ACTUAL reinstatement (back to work under the same
terms and conditions prevailing prior to his dismissal or
separation or to a substantially equivalent
position if the
former position is already filled up); OR

2.
PAYROLL reinstatement (reinstate the employee merely in
the payroll with
payment of the accrued salaries).

(Article 223, Labor Code)

NOTE: The exercise of one of the foregoing options may be

compelled under pain of contempt and the employer may be
made to pay the salary of the employee instead.

+ DOES NLRCS DECISION BECOME FINAL

AND EXECUTORY?

Yes. After ten (10) calendar days from receipt

thereof by the counsel or authorized representative
or the parties if not assisted by counsel or
representative. (Sec 14, Rule VII, 2011 NLRC Rules of
Procedure)

84

85

What is the mode of review for

NLRC decisions?
By a motion for reconsideration only when based on palpable or patent errors;
only one is allowed. (Section 15, Rule VII, 2011 NLRC Rules of Procedure)

1.

2.

within ten (10) calendar days from receipt of decision, resolution or order, with proof of
service that a copy of the same has been furnished, within the reglementary period, the
adverse party; and provided further, that only one such motion from the same party
shall be entertained.

By special civil action of certiorari, prohibition or mandamus under Rule 65 of

the Rules of Court before the Court of Appeals (St. Martins Funeral Homes v.
NLRC, GR 130866, September 16. 1998)

Petition shall not stay or suspend the execution of the assailed decision of the NLRC
UNLESS a TRO is issued by CA or SC (Sec. 10, Rule XI, NLRC Rules)
Certiorari may be filed even if the NLRC decision has become final and executory.
Period within which to file certiorari petitions 60 days (inextendible, reckoned from
receipt of the decision by counsel, not by party)

86

CASES
Sadol v Pilipinas Kao, Inc., G.R. No. 87530, June 13, 1990

1.Despite

having lost the right to appeal, respondent PKI can still

file a motion for reconsideration of the NLRC decision. The rules of
technicality must yield to the broader interest of justice. It is only
by giving due course to the motion for reconsideration that was
timely filed that the NLRC may be able, to equitably evaluate the
conflicting versions of facts presented by the parties.
2.Issues

not raised in the labor arbiter cannot be raised for the first
time on appeal.

87

CASES

Ong v. CA, G.R. No. 152494, September 22, 2004

1.

While, Section 6, Rule VI of the NLRCs New Rules of Procedure allows

the Commission to reduce the amount of the bond, the exercise of the
authority is not a matter of right on the part of the movant but lies within
the sound discretion of the NLRC upon showing of meritorious grounds.

2.

The intention of the lawmakers to make the bond an indispensable

requisite for the perfection of an appeal by the employer is underscored
by the provision that an appeal by the employer may be perfected only
upon the posting of a cash or surety bond. The word "only" makes it
perfectly clear that the lawmakers intended the posting of a cash or
surety bond by the employer to be the exclusive means by which an
employers appeal may be perfected.

3.

While the bond requirement on appeals involving monetary awards has

been relaxed in certain cases, this can only be done where there was
substantial compliance of the Rules or where the appellants, at the very
least, exhibited willingness to pay by posting a partial bond.

88

CASES

McBurnie vs Ganzon, EGI-Managers, G.R. Nos. 178034 &

178117 G R. Nos. 186984-85, October 17, 2013

On the matter of the filing and acceptance of motions to reduce

appeal bond, as provided in Section 6, Rule VI of the 2011 NLRC
Rules of Procedure, the Court hereby RESOLVES that henceforth,
the following guidelines shall be observed:
(a) The filing of a motion to reduce appeal bond shall be
entertained by the NLRC subject to the following conditions: (1)
there is meritorious ground; and (2) a bond in a reasonable
amount is posted;
(b) For purposes of compliance with condition no. (2), a motion
shall be accompanied by the posting of a provisional cash or
surety bond equivalent to ten percent (10%) of the monetary
award subject of the appeal, exclusive of damages and attorney's
fees;
(c) Compliance with the foregoing conditions shall suffice to
suspend the running of the 1 0-day reglementary period to
perfect an appeal from the labor arbiter's decision to the NLRC;

89

CASES

McBurnie vs Ganzon, EGI-Managers, G.R. Nos. 178034 &

178117 G R. Nos. 186984-85, October 17, 2013

(d) The NLRC retains its authority and duty to resolve the motion to
reduce bond and determine the final amount of bond that shall be
posted by the appellant, still in accordance with the standards of
meritorious grounds and reasonable amount; and
(e) In the event that the NLRC denies the motion to reduce bond,
or requires a bond that exceeds the amount of the provisional
bond, the appellant shall be given a fresh period of ten 10 days
from notice of the NLRC order within which to perfect the appeal
by posting the required appeal bond.

90

CASES
Lepanto Consolidated Mining Corp vs Icao, G.R. No. 196047,
January 15, 2014
A

as

bond is encumbered and bound to a case only for as long

1)

the case has not been finally decided, resolved or

terminated; or
2)

the award has not been satisfied.

Therefore,

once the appeal is finally decided and no award

needs to be satisfied, the bond is automatically released. Since
the money is now unencumbered, the employer who posted it
should now have unrestricted access to the cash which he may
now use as he pleases as appeal bond in another case, for
instance. This is what petitioner did.

BUREAU OF LABOR
RELATIONS

92

What is the mandate of the BLR?

It has the mandate to:

Act as the national registry of unions and CBAs;
Formulate regulatory and developmental policies, standards,
guidelines and programs promoting the right to organize,
including collective bargaining and improvement of the
income of workers and their organizations;
Act as lead agency in workers and employers education;
Adjudicate inter- and intra-union disputes;
Promote tripartism; and
Formulate and implement programs that strengthen trade
unionism to achieve industrial peace.

+ What cases fall under the original and exclusive

jurisdiction of the BLR Director, as head of the
said agency?

Complaints and petitions involving the registration or

cancellation or registration of:
Federations;
National unions;
Industry unions;
Trade union centers; and
Their respective local chapters, affiliates, and
member organizations;

Request for examination of books of accounts of

abovementioned labor organizations (Art. 274);

Intra-union and Inter-union disputes); and

Contempt cases.

93

+ What are the differences between an

inter- and intra-union dispute?
Inter-union
Dispute/Representation
Dispute

Intra-union Dispute/Internal
Union Dispute

Any conflict between and

Any conflict within or inside a
among legitimate labor unions.
labor union, or between and
among union members.
Involves
a
petition
for Cases involve the control,
certification election filed by a
supervision, and management
duly
registered
labor
fo the internal affairs of a duly
organization seeking to be
registered labor union (i.e.
recognized as the sole and
violations
of
the unions
exclusive bargaining agent of
constitution and by-laws)
the rank-and-file employees or
supervisory employees, as the
case may be.

94

+ APPELLATE

JURISDICTION

OF THE BLR

95

+ What

96

cases fall under the exclusive appellate

jurisdiction of the BLR Director?
All decisions of the Med-Arbiters in:
Intra-union

disputes
Decisions in inter-union disputes are NOT
appealable to the BLR Director but
directly to the DOLE Secretary. (Art. 259)

Other

related labor relations disputes

(NCMB Manual of Procedures of Conciliation and
Preventive Mediation Cases)

+ What falls under other related labor

97

relations disputes?
Any

conflict between:
Labor union Employer; or
Labor union a group that is not a labor
organization; or
Labor union an individual who is not a member of
such union;

Cancellation

of registration of unions and workers

associations filed by:
Individuals other than its members; or
Group that is not a labor organization; and

A petition for interpleader involving

(Book V, Rules Implementing the Labor Code)

labor relations

+ What

98

cases fall under the exclusive appellate

jurisdiction of the BLR Director?

All decisions originating from the DOLE Regional Directors

in the cases falling under their original jurisdiction.
Petitions for cancellation of registration of independent
unions, local chapters and workers associations (Sec. 4,
Rule XI, Book V of the Rules to Implement the Labor Code, as
amended);

Petitions for deregistration of CBAs (Sec. 4, Rule XI, Book V

of the Rules to Implement the Labor Code, as amended); and
Request for examination of books of accounts of the
abovementioned labor organizations under Art. 274 of
the Labor Code (Visitorial Power of the DOLE Secretary or
his duly authorized representatives).

+ What are the rules with regard to appeals from the

decisions of the BLR, and appeals to the BLR?

1.

BLR Director in the exercise of his original and exclusive

jurisdiction DOLE Secretary Court of Appeals (Rule 65
petition for certiorari)

2.

Med-Arbiters in their original and exclusive jurisdiction BLR

Director (except decisions in inter-union disputes/certification
election disputes) Court of Appeals

3.

DOLE Regional Directors in their original and exclusive

jurisdiction BLR Director Court of Appeals

In nos. 2 and 3, decisions rendered by the BLR cannot be appealed

to the DOLE Secretary because these decisions are rendered in the
BLR Directors exercise of his appellate jurisdiction, and that said
decisions are final and executory. (Abbott Laboratories vs. Abbott
Laboratories Union, G.R. 131374, January 26, 2000 )

99

+ What are the rules with regard to appeals from the

100

decisions of the BLR, and appeals to the BLR?

4.

The person adjudged in direct contempt cases by the

BLR Director may appeal to the DOLE Secretary. (Sec.
1, Rule XXIII, Book V, Rules to Implement the Labor Code)

5.

In the absence of the BLR Director, there is no person more

competent to resolve the appeal (from the decision of the DOLE
Regional Director) than the DOLE Secretary. (The Heritage Hotel
Manila vs. NUWHRAIN-HHMSC, G.R. No. 178296, January 12, 2011)

101

Diokno vs. Cacdac

(G.R. No. 168475, July 4, 2007)
The

Bureau of Labor Relations has the

original and exclusive jurisdiction on all
inter-union and intra-union conflicts.

NATIONAL
CONCILIATION AND
MEDIATION BOARD
.

103

WHAT is NCMB?

agency attached to DOLE principally in-charge of the

settlement of labor disputes through conciliation, mediation
and of the promotion of voluntary approaches to labor dispute
prevention and settlement.

Sec 1(15) Rule III, NCMB Manual of Procedures of Conciliation and

Preventive Mediation Cases
.

104

WHO is a
Conciliator-Mediator?

-refers to an officer of the NCMB whose principal function is to

assist in the settlement and disposition of labor-management
disputes through conciliation and preventive mediation, including
the promotion and encouragement of voluntary approaches to
labor disputes prevention and settlement.

Sec 1(k), Rule I, Book V, Rules to Implement the Labor Code, as

amended by DO No. 40-03, Series of 2003

105

What is the nature of proceedings?

not a QUASI-JUDICIAL AGENCY.

Quasi-judicial function- is a term which applies to the action,

discretion, etc of public administrative officers or bodies,
who are required to investigate facts or ascertain the
existence of facts, hold hearings and draw conclusions from
them as a basis for their official action and to exercise
discretion of a judicial nature. (Metropolitan Bank and Trust Company,
Inc. vs National Wages and Productivity Commission, G.R. No. 144322, February 6,
2007)

106

Tabigue vs. International Copra Export

Corporation
G.R. No. 183335 Dec. 23, 2009

FACTS: Petitioner Juanito Tabigue and his 19 co-petitioners, all

employees of respondent International Copra Export Corporation (INTERCO), filed a Notice of Preventive Mediation with
NCMB against respondent, for violation of Collective
Bargaining Agreement (CBA) and failure to sit on the
grievance conference/meeting

NCMB Director: Demand to submit issues to Voluntary

Arbitration cannot be granted because the Union is an
indispensable party.

Petitioners questioned the NCMB Directors action through

Rule 43, Rules of Court with the Court of Appeals.

107

HELD: Rule 43 applies only to awards, judgments, final orders

or resolutions of or authorized by any quasi-judicial agency in
the exercise of its quasi-judicial functions.

NCMBS RULINGS NOT HAVING BEEN RENDERED BY A

QUASI-JUDICIAL BODY, CANNOT BE ELEVATED TO THE
COURT OF APPEALS.

+ WHO has jurisdiction over Conciliation,

Mediation and Voluntary Arbitration cases?

Originally, it is the Bureau of Relations but by virtue of

Executive Order No. 126, these functions are now absorbed
by the NCMB.

108

+ What are the

similarities/differences between
Conciliation and Mediation?

In both, a neutral party (Conciliator/Mediator) is tasked to

assist two or more opposing parties in finding appropriate
resolution in dispute

In MEDIATION, the Mediator normally facilitates a

deliberation or discussion of the issues between the parties.

FACILITATIVE MEDIATION- does not make/offer any opinion

EVALUATIVE MEDIATION-offers an opinion which is not

binding on the parties
(Prof. Joselito Guianan Chan, Labor Law Review, pp. 833834)

109

110

In CONCILIATION, the Conciliator is given more power and

authority in that he may not only offer an opinion on the
issues at hand but may actually make a binding opinion
thereon provided the parties stipulate in advance to this
effect.

CONCILATION is more formal than MEDIATION in the sense

that Conciliators opinion, unlike the Mediators may be
binding on the parties, although it may be merely temporary
in character.

(Prof. Joselito Guianan Chan, Labor Law Review, 833-834)

111

Are information and statements made at conciliation

proceedings be used as an evidence in any proceedings?

NO. Any information and statements made at conciliation

proceedings should be treated as PRIVILEGED
COMMUNICATION. Hence, inadmissible in evidence.

Conciliators and similar officials are not allowed to testify in

any court or body regarding any matters taken up at
conciliation proceedings conducted by them.

NISSAN MOTORS PHILIPPINES, Inc. vs SEC OF LABOR AND EMPLOYMENT,

GR Nos. 158190-91, June 21, 2006

112

What is Preventive Mediation?

As a remedy, its functions is to provide preventive mediation to

disputing parties.

It covers potential or brewing labor disputes that are the subject of

a formal or informal request for conciliation and mediation
assistance sought by either or both parties or upon initiative of
the NCMB.

to avoid concurrence of actual labor disputes and in order to

remedy, contain or prevent its degeneration into a full-blown
dispute through amicable settlement.

Sec 1 (20), Rules III, NCMB Manual Procedures for Conciliation and
Mediation Cases.

113

HOW to initiate Preventive

Mediation?
1st step:

By filing a NOTICE or REQUEST of Preventive Mediation, as

distinguished from a NOTICE OF STRIKE/LOCKOUT

By conversion of the notice of strike or lockout into a

preventive mediation case

Sec 3, Rule IV of the NCMB Manual of Procedure

+ Does the NCMB have the authority to convert

a notice of strike or lockout into a Preventive
Mediation Case?

YES. Under the following circumstances:

When the issues raised in the notice of strike or lockout are not
strikeable in character.

When the party which filed the notice of strike or lockout

voluntarily asks for conversion.

When both parties to a labor dispute mutually agree to have it

subjected to preventive mediation proceeding.

No. 19, NCMB Primer on Strike, Picketing and Lockout, 2nd

edition, December 1995.

114

DOLE
REGIONAL
DIRECTORS

116

Who are the DOLE Regional

Directors?

They are the heads of the DOLE Regional Offices

nationwide.

They are the duly authorized representatives of the

DOLE Secretary, referred to in Article 128 of the Labor
Code.

They are in charge of the administration and

enforcement of labor standards within their respective
territorial jurisdictions. (Sec. 3, Rule I, Rules on the Disposition
of Labor Standards Cases in the Regional Offices Sept. 16, 1987)

Original and Exclusive

Jurisdiction of the RD

117

What cases fall under the original and exclusive

jurisdiction
of
regional
directors?
(L-S-O-R-C0-VA)

Labor standards enforcement under Article 128;

Small money claims cases arising from labor

standards violations in the amount not exceeding
P5,000.00 and not accompanied with a claim for
reinstatement under Article 129;

Occupational safety and health violations

118

What cases fall under the original and exclusive

jurisdiction
of
regional
directors?
(L-S-O-R-C0-VA)

Registration of unions and cancellation of such

registration, cases filed against unions, and other labor
relations related cases;

Complaints against private recruitment and placement

agencies (PRPAs) for local employment (Sec. 36, Rule
VII, Rules and Regulations Governing Private
Recruitment and Placement Agency for Local
Employment June 5, 1997); and

Cases submitted to them for voluntary arbitration in

their capacity as Ex-officio Voluntary Arbitrators
(EVAs) under Department Order No. 83-07.

119

LABOR STANDARDS
ENFORCEMENT CASES
(Article 128)
What are Labor Standards?

These are the minimum requirements

prescribed by existing laws, rules, and regulations
and other issuances relating to wages, hours of
work, cost of living allowances, and other
monetary and welfare benefits, including those set
by occupational safety and health standards.

120

What cases fall under the original jurisdiction of the

regional directors?

VISITORIAL POWER

Inspection of establishments to determine compliance

with labor standards.

ENFORCEMENT POWER

Issuance of compliance orders and writs of execution.

121

+ What is the subject of the visitorial and

enforcement powers
Regional Directors?

of

the

DOLE

The subject is the establishment, which is under

inspection, and not the employees therein.

122

What is the PREVAILING DOCTRINe in the case of Maternity

Childrens Hospital vs. Secretary of Labor in Relation to this
power of the Regional directors?

The visitorial and enforcement powers are relevant to, and

may be exercised over, establishments, not over individual
employees thereof, to determine compliance by such
establishments with labor standards laws. Necessarily, in case
of an award from such violation by the establishment, all its
existing employees should be benefited thereby.

Such award shall be applicable to all those employed at the

time the complaint was filed, even if they were not
signatories thereto.

Such award shall not be applicable to those who resigned,

retired, or ceased to be employees at the time the complaint
was filed.

123

What may regional directors do pursuant to their

visitorial powers under article 128 (a)?

Gain access to employers records and premises at any

time of the day or night, whenever work is being
undertaken therein;

Copy from said records; and

Question any employee and investigate any fact,

condition or matter which may be necessary to
determine violations or which may aid in the
enforcement of the Labor Code and of any labor law,
wage order, or rules and regulations issued pursuant
thereto.

124

+ What

may regional directors do pursuant to their

ENFORCEMENT powers under article 128 (B), AS
AMENDED BY R.A. 7730?

Issue compliance orders to give effect to labor

standards provisions of the Labor Code and other labor
legislations based on the findings of labor employment
and enforcement officers or industrial safety engineers
made in the course of inspection.

(R.A. 7730 An Act Further Strengthening the Visitorial and

Enforcement Powers of the Secretary of Labor and Employment,
Amending for the Purpose Art. 128 (b) of the Labor Code of the
Philippines June 2, 1994)

125

+ What

may regional directors do pursuant to their

ENFORCEMENT powers under article 128 (B), AS
AMENDED BY R.A. 7730?

Issue writs of execution to the appropriate authority for

the enforcement of their order, except where the
employer contests the findings of the labor
employment and enforcement officer and raises issues
supported by documentary proofs not considered in
the course of inspection.

In accordance with the exception, the Labor

Arbiter shall have jurisdiction after proper
endorsement by the Regional Director. (Sec. 1, Rule III,
Rules on Disposition of Labor Standards Cases in the Regional
Offices Sept. 16, 1987)

126

What may regional directors do pursuant to their

ENFORCEMENT powers under article 128, AS AMENDED
BY R.A. 7730?

Order stoppage of work or suspension of operations of

any department or unit of an establishment when noncompliance with the law or any implementing rules or
regulations poses grave and imminent danger to the
health and safety of the workers in the workplace. (Sec.
3 (a & b), Rule X, Book III, Rules to Implement the Labor Code)

To require employers, by appropriate regulations, to

keep and maintain such employment records as may
be necessary in aid of his visitorial and enforcement
powers.

127

What are the requisites for the valid exercise by the

regional directors of their visitorial and enforcement
powers? (E-F-I)
1.

The employer-employee relationship still exists at the

time of the initiation of the action. (Rizal Security &
Protective Services, Inc. vs. Hon. Maraan, G.R. No. 124915)

2.

The findings in question were made in the course of

inspection, regardless of whether it was initiated by
complaint or routine inspection. (Peoples Broadcasting
vs. Secretary of DOLE, G.R. No. 179652, March 6, 2012).

3.

The employees have not yet initiated any claim or

complaint with the Regional Director under Art. 129
for small money claims, or the Labor Arbiter, under
Art. 217 for monetary claims exceeding P5,000.00.

128

What are matters to remember as to these

requisites?

1.) As to the existence of an employer-employee

relationship

If at the time of the initiation of the action, the

relationship has ceased to exist, the Labor Arbiter
will have jurisdiction over the same.

The Regional Director has the power to make a

determination on whether this relationship exists.

Such finding is to the exclusion of the NLRC. It is

subject to judicial review, but not review by the
NLRC. (Peoples Broadcasting vs. Secretary of Labor, G.R. No.
179652 March 6, 2012)

129

What are matters to remember as to these

requisites?

2.) As to findings made in the course of inspection

The jurisdiction of the Regional Director is not

affected whether the case is a result of regular
inspection (Article 128(b)) or if it originates
from a complaint (Articles 129 & 217)

130

What are matters to remember as to these

requisites?

3.) As to the initiation of any claim or complaint

The restrictive effect of Articles 129 and
217 no longer applies after the
amendment by R.A. 7730. Therefore,
the visitorial and enforcement powers
of the Regional Director to order and
enforce
compliance
with
labor
standards laws can be exercised even
where the individual claim exceeds
P5000.00. (Cirineo Bowling vs. Sensing, G.R. 146572,
January 14, 2005)

131

What are the requisites for valid exercise of jurisdiction

over small money claims cases by the regional director?
(E-R-A)

1.

2.
3.

132

The claim is presented by an employee or a person

employed in domestic or household service or
househelper;
The claimant, no longer being employed, does not
seek reinstatement; and
The aggregate money claim does not exceed
P5,000.00.

When the claim does not exceed P5,000.00 but the employee
prays for reinstatement, the case shall fall within the original
and exclusive jurisdiction of the Labor Arbiter. (M. Ramirez
Industries vs. Sec. of Labor, G.R. 89894, January 3, 1997)

What is the prevailing doctring in the case of BROKENSHIRE

VS. THE MINISTER OF LABOR AND EMPLOYMENT in Relation
to these requisites?

If

133

the amount involved does not exceed P5,000.00, the

Regional Director undeniably has jurisdiction. But even
if the amount of the claim exceeds P5,000.00, the claim
is not on that account necessarily removed from the
Regional Directors competence. In respect thereof, he
may still exercise the visitorial and enforcement
powers vested in him by Article 128 of the Labor Code,
as amended.

What is the prevailing doctring in the case of BROKENSHIRE

VS. THE MINISTER OF LABOR AND EMPLOYMENT in Relation
to these requisites?

However,

this power may not, to repeat, be

exercised by him where the employer contests the
labor regulation officers findings and raises
issues which cannot be resolved without
considering evidentiary matters not verifiable in
the normal course of inspection. In such an event,
the case will have to be referred to the
corresponding Labor Arbiter for adjudication, since
it falls within the latters exclusive original
jurisdiction."

134

+ What are the differences between Articles 128 and

135

129?

Article 128

Article 129

Visitorial and enforcement powers of

the DOLE Secretary or his duly
authorized representatives.

Adjudicatory power of the Regional

Director or any duly authorized
hearing officers of DOLE.

Speaks of:
Inspection of establishments
Issuance of orders to compel
compliance with wage orders and
other labor laws and regulations

Speaks of the power to hear and

decide any claim for:
Recovery of wages
Simple/small money claims
Other benefits

The existence of the employeremployee relationship is a condition

sine qua non.

There exists a severed employeremployee relationship.

Appeal is made to the DOLE

Secretary.

Appeal is made to the NLRC.

136

WHAT CASES FALL UNDER THE JURISDICTION OF THE REGIONAL

DIRECTOR AS REGARDS OCCUPATIONAL SAFETY AND HEALTH
VIOLATIONS
The

DOLE Regional Director has original jurisdiction to:

Order stoppage of work; or
Suspend operations of any unit or department or the
establishment if there exists in the workplace a
condition that poses grave and imminent danger
to the health and safety of the workers which
cannot be voluntarily corrected by the employer
within a reasonable time. (Sec. 4b, Rule VI, Rules on
the Disposition of Labor Standards Cases in the
Regional Offices September 16, 1987)

137

What is imminent danger?

A condition or practice
Could reasonably be expected to cause death or serious
physical harm before abatement under the enforcement
procedures can be accomplished. (Rule 10.12.02, Occupational and

Health Standards)

Examples: boiler tube leakages, defective safety valves, and weak

machinery foundations

Where the conditions does not pose imminent danger, a

reasonable period shall be given to the employer to comply,
which period shall be dependent on the gravity of the hazards
needing corrections or the period needed to comply with
safety and health standards.

WHAT CASES FALL UNDER THE JURISDICTION OF

THE REGIONAL DIRECTORS AS EVAs?

1.

All grievances arising from the interpretation or

implementation of the CBA;

2.

All grievances arising from the interpretation or

enforcement of company personnel policies which
remain unresolved after exhaustion of the grievance
procedure;

3.

Cases referred to them by the DOLE Secretary under

DOLEs Administrative Intervention for Dispute
Avoidance; and

4.

Upon agreement of the parties, any other labor

dispute.

138

139

What are the powers of the EVA?

1.

Hold hearings

2.

Receive evidence

3.

Take necessary actions to resolve the dispute

4.

Conciliate or mediate to obtain a voluntary settlement

of the dispute.

The decision or award of the EVA shall be final and executory after
ten (10) calendar days from the parties receipt of the copy of the
decision or award. A Motion for Reconsideration shall stop the
running of the 10-day period for finality, but no second Motion for
Reconsideration shall be allowed.

GRIEVANCE MACHINERY

141

WHAT IS THE NATIONAL POLICY ON

LABOR DISPUTE?

The State shall promote the principle of shared

responsibility between workers and employers and the
preferential use of voluntary modes in settling disputes,
including conciliation

(Sec. 3, Art. XIII, 1987 Constitution)

142

It is the policy of the Stateto promote and emphasize the

primacy of free collective bargaining and negotiations, including
voluntary arbitration, mediation and conciliation, as modes of
settling labor or industrial disputes

To provide an adequate administrative machinery for the

expeditious settlement of labor or industrial disputes.

( Art. 211, Labor Code)

143

What is GRIEVANCE?

It refers to any question by either employer or the union

regarding the interpretation or application of the CBA and/or
interpretation or enforcement of company policies

(NCMB, Primer on Grievance Settlement and Voluntary

Arbitration)

144

Could there be a grievance without

union or CBA?

YES!

It refers to any question by either employer or the union

regarding the interpretation or application of the CBA and/or
interpretation or enforcement of company policies

Generic or loose sense: Any dispute or controversy arising

from terms and conditions of employment
(NCMB, Primer on Grievance Settlement and Voluntary
Arbitration)

145

Is grievance machinery mandatory?

YES!

The parties to a Collective Bargaining Agreementshall

establish a machinery for the adjustment ad resolution
of grievances

( Art. 260, Labor Code)

146

Who can file a grievance?

Employees

Union as the exclusive bargaining representative

Employer in case there is a question or vague provision of

CBA

(NCMB, Primer on Grievance Settlement and Voluntary

Arbitration)

147

What is the effect of failure or

refusal to attend grievance
UNFAIR LABOR PRACTICE!
hearing?
To violate the duty to bargain collectively

Art. 248 (ULP of employees) an Art 249 (ULP of labor organizations)

of Labor Code

Duty to bargain collectively (Art. 252, Labor Code)

The duty to bargain collectively means the performance of a mutual
obligation to meet and convene promptly and expeditiously in good
faith for the purposeadjusting any grievances or questions arising
under such agreement

148

What is the procedure of creating

grievance machinery?

CBA provisions

In the absence thereof, a grievance committee shall be

created within 10 days from signing of CBA

Composition: 2 representatives from both the bargaining unit

and employer unless otherwise agreed upon by parties

Representatives from the bargaining unit shall be designated by

the union
(Sec. 1, Rule XIX, D.O. No. 40-03)

149

What is the procedure in handling

grievances?

CBA provisions

In the absence thereof, the following shall apply:

The employee shall present his grievance(orally or in writing) to the

shop steward

Shop steward shall determine the validity of grievance

If valid, grievance shall be brought to employees immediate supervisor

Shop steward, employer and employee shall exert effort to settle the
grievance

If not settled, grievance shall be referred to grievance committee

(Sec. 2, Rule XIX, D.O. No. 40-03)

150

Jurisprudence
Octavio vs. PLDT, G.R. No. 175492,February 27, 2013

Facts: Octavio was hired as System Analyst 1 by PLDT. He claimed for

salary increase but was not granted. Hence, he filed a case for the
payment thereof without availing the remedy mentioned in the
grievance machinery.
Issue: Whether or not the action of Octavio is proper.
Held: No. Under Art. 269 of Labor Code, grievances arising from the
interpretation or implementation of the parties CBA should be resolved
in accordance with the grievance procedure embodied therein
When the parties have validly agreed on a procedure for resolving
grievances then that procedure should be strictly observed. Before a
party is allowed to seek intervention of the court, it is a precondition that
he should have availed of all means of administrative processes afforded
him.

VOLUNTARY
ARBITRATION

152

Definition

Contractual proceeding whereby the parties to any dispute

or controversy, in order to obtain a speedy and inexpensive
final disposition of the matter involved, select a judge of
their own choice and by consent submit their controversy
to him for determination

(Gates v. Arizona Brewing Co.)

+Nature

It is a private judicial system because

Arbitrators have no tenure of office

Arbitrators are not elected or appointed

Parties select their own judges and adopt own rules and procedure

It is a master procedure because.

Any and all kinds of labor disputes may be submitted or resolved

through voluntary arbitration

It takes precedence over other dispute settlement devices

Basis: Sec. 3, Art. XIII, 1987 Constitution; Art. 11, Labor Code

153

154

Nature

Voluntary arbitrator is a quasi-judicial instrumentality hence,

its decisions are appealable to CA by petition for certiorari
under Rule 43 of ROC

(B.P. 129, as amended by RA 7902)

155

Comparison
Compulsory Arbitration

Voluntary Arbitration

Compelled by government to
settle labor dispute

Contractual agreement by
parties

Mediator

Arbitrator

Mediator is normally selected

by the government

Arbitrator is selected by
parties

Ex. Cases involving national

interest

Ex. Money claims, deadlocks

156

Comparison
Court of Law

Voluntary Arbitration

Proceedings are formal

Informal

Observes stare decisis

Not bound to follow

precedents

Admissible evidence depends

upon the discretion of
arbitrator

Non-technical and simple

Applies rules of evidence

Involves complex and technical

issues

157

How are voluntary arbitrators selected?

Designated by parties of the CBA or

Include in the CBA the procedure for selection(preferably

among those accredited by the NCMB)

(Sec. 1, Rule XIX, D.O. No. 40-03)

+
Qualifications

Filipino citizen and resident of the Philippines

Bachelors Degree holder( any field of behavioral or applied

sciences)

At least 5 years experience in labor-management relations

Completed voluntary training course given by NCMB

Good moral character

Noted for impartiality and probity
Not civilly, criminally or administratively guilty of crimes
involving moral turpitude

158

+Jurisdiction
Exclusive and original jurisdiction

Grievances arising from implementation or interpretation of CBA

Those arising from interpretation and enforcement of company

personnel policies

Wage distortion cases in organized establishments

Grievances arising from implementation and interpretation of

productivity incentive programs under RA 6971

All other labor disputes including ULP and bargaining

deadlock, if agreed upon by the parties

(Art. 261 and 262 of Labor Code)

159

160

In ULP cases for violation of CBA

LA has jurisdiction (Art. 217, Labor Code) provided:

Gross violation-flagrant and/or malicious refusal to comply with the

CBA

The violations pertain to economic provisions (Art. 262, Labor Code)

Even

if gross violation- it may be brought to VAs jurisdiction upon

agreement by the parties

Hence, violations of CBA which are not gross shall be resolved as grievance
under CBA

161

How is Voluntary Arbitration

initiated?

Submission Agreement; or

Demand or Notice to Arbitrate invoking the arbitration

clause in the CBA;

No. 54, NCMB Primer on Grievance Machinery and Voluntary

Arbitration161

162

How do we distinguish Stipulation

from Demand?

STIPULATION/ AGREEMENT TO ARBITRATE- is used when NO

previous agreement to arbitrate and it is more appropriate in
interest disputes.

containing:

a statement of the issues

the name/s of their chosen Voluntary Arbitrator or
panel of Voluntary Arbitrators
stipulation and an undertaking to abide by and comply
with the resolution that may be rendered therein
the cost of arbitration.

+ What is the extent of authority

of Voluntary Arbitrator?

General authority to investigate and hear the case upon

notice to the parties and to render an award based on
contract and record of the case;

Incidental authority to perform all acts necessary for an

adequate discharge of his duties and responsibilities like
setting and conduct of hearing, attendance of witnesses and
proof of documents and other evidence, fact-finding and other
modes of discovery, reopening of hearing, etc.

163

164

Special power in aid of his general contractual authority like

the authority to determine arbitrarily of any particular dispute
and to modify any provision of existing agreement upon which
a proposed change is submitted for arbitration.

VA has the widest discretion to decide relevant issues raised

in the submission agreement.

No. 44, NCMB Primer on Grievance Machinery and

Voluntary Arbitration

+ ARBITRATION PROCEDURES

165

166

WHAT is the nature of

proceedings?
Non-litigious
They

in nature.

are not governed by technical rules

applicable to court or judicial proceedings but
they must, at all times, comply with the
requirements of due process.
Sec 1, R.A. No. 6715, March 21, 1989.

+ In general, what are the procedural

steps in the conduct of arbitration
hearing?
Taking of oath by Arbitrator and his opening
statement
Brief statement of the issues in controversy
Presentation of evidence by the grievant
Presentation of evidence by the other party
Supplementary fact-finding procedures- ocular
inspection

167

168

Hearings and judgment of

default
Formal offer of evidence
Filing of briefs and reply briefs

Closing of hearings
No. 58, NCMB Primer on Grievance Machinery and Voluntary
Arbitration

169

Submission of dispute to Voluntary

Arbitration
20 days
award or decision

10 days from receipt of parties

Final and executory
Art. 275, PD. 442 otherwise known as the Labor Code of
the Philippines

170

Is Motion for Reconsideration

allowed?

YES. In case of Teng vs. Pahagac G.R. No. 169704 November 17, 2010

FACTS: Albert Teng Fish Trading customarily enters into joint venture
agreement with master fishermen (respondents) who serve as checkers to
determine the volume of fish caught. Respondents filed for Illegal
Dismissal before NCMB.

Voluntary Arbitrator: ruled in favor of Teng and declared no employeremployee relationship existed. Respondents filed a motion for
reconsideration. However it was denied.
The VA reasoned out that Section 6, Rule VII of the 1989
Procedural Guidelines in the Conduct of Voluntary Arbitration
Proceedings (1989 Procedural Guidelines) does not provide the remedy
of a motion for reconsideration to the party adversely affected by the
VAs order or decision.

171

Held: SC noted of the amendment introduced by R.A. No. 6715.

Art 263: Voluntary arbitration awards or decisions shall be

final, unappeable and executory.

Art. 275: xxx Voluntary arbitration awards or decisions shall be

final and executory after ten(10) calendar days from the
receipt of copy of award or decision by the parties

172

But in Sec 7, Rule XIX of D.O. No. 40, series of 2003, appears to
depart from previous rules and rulings:
The decision, order, resolution or award of the voluntary
arbitrator or panel of voluntary arbitrators shall be final
and executory after ten (10) calendar days from receipt of
the copy of the award or decision by the parties and it shall
not be subject of a motion for reconsideration.

173

By disallowing reconsideration of the VAs decision, Section 7,

Rule XIX of DO 40-03 and Section 7 of the 2005 Procedural
Guidelines went directly against the legislative intent behind
Article 262-A (now Art. 275) of the Labor Code. These rules
deny the VA the chance to correct himself and compel the
courts of justice to prematurely intervene with the action of
an administrative agency

174

When may Labor Arbiter issue

Writ of Execution?

In case the Voluntary Arbitrator or panel of Voluntary

Arbitrators who rendered and issued the decision, order or
award is, for any reason, absent, incapacitated.

But in case VA/pVA who issued the decision, order or award,

LA cannot issue such writ motu proprio ONLY UPON
MOTION OF ANY INTERESTED PARTY.

Art. 275 of P.D. No. 442 otherwise known as the Labor Code of the
Philippines

+ WHAT are the reliefs and

remedies that may be granted?

1. In ILLEGAL DISMISSAL CASES:

Actual reinstatement;

Separation pay in lieu of reinstatement, in case reinstatement

becomes impossible, non-feasible or impractical;

Full backwages;

Moral and exemplary damages;

Attorneys fees.

175

176

2. Monetary awards in monetary claims may be granted under

the following cases:

Unresolved grievances arising from interpretation or

implementation of CBA;
Unresolved grievances arising from interpretation or enforcement
of company personnel policies;
Unresolved grievances arising from the interpretation and
implementation of Productivity Incentive Programs under R.A. No.
6971
Violations of the CBA which are not gross in character
Wage distortion issues arising from the application of any wage
orders in organized establishments.
Collective Bargaining deadlocks.

177

3. In ULP cases:

If illegal dismissal is involved, the remedies available to an

illegally dismissed employee as described above may be
awarded.

If strike or lockout is involved, the Voluntary Arbitrator may

declare the strike or lockout illegal, in which case, he may
award the reliefs and remedies provided under the law and
jurisprudence.

178

4. In NATIONAL INTEREST cases submitted for Voluntary

Arbitration:

Since a strike or lockout is involved in these kinds of cases, the

same reliefs and remedies provided by law and jurisprudence
thereon may be awarded.

(Prof. Joselito Guianan Chan, Labor Law Review, pp. 914-915)

+ Should settlement by the parties on some or all of

the issues be encouraged or allowed after
arbitration has been initiated or hearing has
already commenced?

Arbitrators are encouraged under the law to conciliate or

mediate to aid the parties in reaching voluntary settlement
even after arbitration has been initiated and an arbitration
hearing already commenced.

The terms of settlement should be reduced in writing and

should be adopted as the decision of the arbitrator.

Sec. 4, Rule VII,NCMB Revised Procedural Guidelines in the

Conduct of Voluntary Arbitration Proceedings, Oct. 15, 2004

179

+ What are the factors to be

considered in determining
the fee of voluntary
arbitrators?

The parties to CBA shall provide a proportionate sharing

scheme.

Nature of the case

Time consumed in hearing the case

Professional standing of the Voluntary Arbitrator

Capacity to pay of the parties

Fess provided in the Rules of Court

Art. 276, P.D. No. 442 otherwise known as the Labor Code of
the Philippines

180

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