VIII.
JURISDICTION AND RELIEFS
A. LABOR ARBITER
Nature
Labor Arbiters only have original and exclusive
jurisdiction and have no appellate jurisdiction.
The cases that an LA can hear and decide are
employment related. When no Er-Ee relationship
exists between the parties and no issue is
involved which may be resolved by reference to
the LC, other labor statutes, or any CBA, it is the
RTC that has jurisdiction (Lapanday Agricultural
Dev’t Corp v. CA, G.R. No. 112139, January 31,
2000)
The LA has jurisdiction over controversies
involving Ers and Ees only if there is a
“reasonable causal connection” between the
claim asserted and the Er-EE relations. Absent
such link, the complaint is cognizable by the
regular court (Eviota v. CA, G.R. No. 152121, July
29, 2003.)
Cases within the jurisdiction of the Labor
Arbiter:
1. Unfair labor practices case
2. Termination disputes
3. 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
4. Claims for actual, moral, exemplary and
other forms of damaging arising from
employer-employee relations
5. Cases arising from any violation of Art.
279 of the Code, including questions
involving 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
relations, including those of persons in
domestic or household service, involving
an amount exceeding five thousand
pesos (P5,000) regardless of whether
accompanied with a claim for
reinstatement [Art. 224]
7. Money claims arising out of employer-
employee relationship by virtue of any
law or contract, involving claims for
actual, moral, exemplary an other forms
of damages, as well as employment
termination of OFWs;
8. Wage distortion disputes in unorganized
establishments not voluntarily settled by
the parties [Art. 124]
9. Enforcement of compromise
agreements when there is non-
compliance by any of the parties. [Art.
223].
10. Other cases as may be provided by law
Labor arbiters exercise concurrent jurisdiction
with the NLRC.
Requisites of LA’s jurisdiction over
Money Claims
(1) Money claims arose from ER-EE relations,
and
(2) Money claims arose from law or contracts
other than a CBA
• Employer-employee relationship is a
jurisdictional requisite, absent of
which, the NLRC has no jurisdiction
to hear and decide the case.
[Hawaiian-Philippine Company v.
Gulmatico]
If money claims do not arise from ER-EE
Relations
Regular courts has jurisdiction
If money claims arise from ER-EE relations but
by virtue of implementation of CBA
Voluntary Arbitrator has jurisdiction
“Exclusive and Original” Jurisdiction
subject to Articles 274 and 275
A case under Art 224 may be lodged instead with
a voluntary arbitrator. The policy of the law is to
give primacy to voluntary modes of settling
dispute.
Extent of the jurisdiction of the labor arbiter if
there are unresolved matters arising from the
interpretation of the CBA
GR: Las have no jurisdiction over unresolved or
unsettled grievances arising from the
interpretation or enforcement of company
personnel policies
XPN: Actual termination disputes
Note: Where the dispute is just in the
interpretation, implementation or enforcement
stage of the termination, it may be referred to
the grievance machinery set up by the CBA or
voluntary arbitration. Where there was already
actual termination i.e. violation of rights, it is
already cognizable by the LA (Maneja v. NLRC,
G.R. No. 124013, June 5, 1998).
Usage of the word “may” in the provisions of
the Grievance Procedure allow the alternative
submission of the case before the labor arbiter
The use of the word “may” shows the intention
of the parties to reserve the right to submit the
illegal termination dispute to the jurisdiction of
the LA, rather than to a voluntary arbitrator.
Petitioner validly exercise his option to submit
his case to a LA when he filed his complaint
before the proper government agency.
Voluntary arbitration is mandatory in character
only if there is a specific agreement between the
aprties to that effect. In the case at bar, however,
the use of the word “may” shows the intention
of the parties to reserve the right of recourse to
Las (vivero v. CA, G.R. No. 138938, October 24,
2000)
Cases which do not fall under the jursidcition of
the Labor Arbiters
1. Foreign governments (JSUMAG-Phils v.
NRLC, G.R. no. 108813, December 15,
1994)
2. International agencies (Lasco v. NLRC,
G.R. Nos. 109095-109107, February 23,
1995).
3. Intra-corporate disputes which fall
under P.D. 902-A and now falls under the
jurisdiction of the regular courts
pursuant to the new Securities
Regulation Code (Nacpil v. IBC, G.R. No.
144767, March 21, 2002)
4. Executing money claims against
government (Dept of Agriculture v.
NLRC, G.R> no. 104269, November 11,
1993)
5. Cases involving GOCCs with original
charters which are governed by civil
service law, rules or regulations (1987
Constitution, Art. IX-B, Sec. 2(1))
6. Local water district (Tanjay Water
District v. Gabaton, G.R. No. L-63472,
April 17, 1989) Except where NLRC
jurisdiction is involved (Zamboanga City
Water Dsictict v. Buat, G.R. No. 104389,
May 27, 1994)
7. The aggregate money claim does not
exceed 5000 Php and without claim for
reinstatement (Rajah Humabon Hotel,
Inc v. Trajano, G.R. Nos. 100222-23
September 14, 1993)
8. Claim of Ee for cash prize under the
Innovation Program of the company,
although arising from Er-Ee relationship,
is one requiring application of general
 civil law on contract which is within the legality of
jurisdiction of the regular courts (SMC v. strikes and
NLRC, G.R. no. 80774, May 31, 1988) lockouts and
9. Cause of action based on quasi delict or
tort which has no reasonable connection g. all other
with any claims enumerated in Art. 217, claims
arising from
LC (Ocheda v. CA, G.R. no. 85517,
Er-Ee
October 16, 1992)
relationship
10. Complaint arising from violation of involving an
training agreement (Singapore Airlines v. amount
Pano, G.R. No. L-47739, June 22, 1983) exceeding
Php 5,000
Labor Aribiter v. Regional Director Enforcement Limited to All other
Visitation and Regional Labor Arbiter of labor monetary claims
Enforcement Director legislation in claims arising from
Power of general Er-Ee
Secretary of relations
Labor and Proceeding is Initiated by LA decides
Employment an offshoot of sworn case within
a) Inspection Adjudication LA exercises routing complaints 30 calendar
of of Ee’s claims original and inspections filed by ay days after
establishment for wages exclusive interested submission
s; and and benefits jurisdiction party of the case
on cases by the
b) Issuance of involving: parties for
orders to decision
compel a. ULP Jurisdictional Jurisdictional 1) All other
compliance b. Requirements requirement claims
with labor termination arising from
standards, disputes; 1) Complaint Er-Ee
wage orders arises from relations
and other c. wages Er-Ee
labor laws relationship 2) Including
d. rates of those of
pay; 2) Claimant persons in
is an Ee or domestic or
e. hour of person household
work; employed in service
domestic or
f. other household 3) Involving
maters if service or a an amount
employment HH exceeding
claims for P5,000
damages 3) Complaint
arise from does NOT 4) Whether
Er-Ee include a or not
relationship, claim for accompanie
 reinstateme d with a 1. The NLRC has exclusive appeallate
nt claim for jurisdiction on all cases decided by the
reinstateme LA
4) Aggregate nt 2. The NRLC does not ave original
money claim jurisdiction on the caes over which the
of EACH LA have original and exclusive
claimant
jurisdiction
does not
3. The NLRC cannot have appellate
exceed
P5,000 jurisdiction if a claim does not fall within
the exclusive original jurisdiction of the
Appealable to Appealable Appealable LA.
SLE (In case to NLRC to NLRC Requirements to Perfect appeal from LA to
compliance NLRC
order is issued
by Regional a. Filed within the reglementary period of 10
Office) calendar days from receipt if it involves a
decision, award, or order of the LA, or 5 calendar
Reinstatement Pending Appeal days from receipt if it involves a decision or
Effect of perfection of an appeal on execution resolution of the RD.

The perfection of an appeal shall stay the
execution of the decision of the LA on appeal,
except execution for reinstatement pending
appeal.
Note: Art. 223 of the LC is clear that an award by
the LA for reinstatement shall be immediately
executory even pending appeal and the posting
of a bond by the employer shall not stay the
execution for reinstatement (Pioneer Texturizing
Corp. V. NRLC, G.R. No. 118651, October 16,
1997)
Ministerial duty of labor arbiter to implement
reinstatement orders
Unless there is a restraining order, it is
ministerial upon the LA to implement the order
of reinstatement and it is mandatory on the Er to
comply therewith (Garcia v. PAL, G.R. No.
164856, January 20, 2009)
Jurisdiction of LA v. Jurisdiction of NLRC
b. Verified by the appellant himself in
accordance with Sec. 4, Rule 7 of the Rules of
Court, as amended
c. In the form of a memorandum of appeal which
shall state the grounds relied upon and
arguments in support thereof, the relief prayed
for, and with a statement of the date the
appellant received the appealed decision, the
resolution or order
d. In three (3) legibly typewritten or printed
copies
e. Accompanied by (i) proof of payment of the
required appeal fee; (ii) posting of a cash or
surety bond as provided in Sec. 6 of this Rule; (iii)
a certificate of non-forum shopping; and (iv)
proof of service upon the other parties (NLRC
2011 Rules of Procedure, Rule VI, Sec 4)
Note: Mere notice of appeal without complying
with the aforementioned requisites shall not
stop the running of the period for perfecting an
appeal.
Grounds for filing an appeal
The appeal may be entertained only on any of
the following grounds:
1. If there is prima facie evidence of abuse
of discretion on the part of the LA or RD;
2. If the decision, award or order was
secured through fraud or coercion,
including graft and corruption;
3. If made purely on questions of law;
and/or
4. If serious errors in findings of facts are
raised which, if not corrected, would
cause grave or irreparable damage or
injury to the appellant. (NLRC 2011 Rules
of Procedure, Rule VI, Sec. 2).
Posting of an appeal bond required to perfect
an appeal from a LA’s decision involving
monetary award
In case the decision of the LA or the RD involves
a monetary award, an appeal by the Er may be
perfected only upon the positing of a bond (NLRC
2011 Rules of Procedure, Rule VI, Sec. 6)
B. NATIONAL LABOR RELATIONS COMMISSION
Adjudication of cases by the NLRC
It is an administrative body with quasi-
judicial functions and the principal government
agency that hears and decides labor-
management disputes; it is attached to the DOLE
solely for program and policy coordination only.
Kinds of jurisdiction of the NLRC
1. Exclusive Original Jurisdiction
a. Certified labor disputes causing or
likely to cause a strike or lockout in
an industry indispensable to
national interest, certified to it by
the SLE or the President for
compulsory arbitration.
b. Injunction in ordinary labor disputes
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 dispute
which, if not restrained or
performed forthwith, may cause
grave or irreparable damage to any
party
c. Injunction in strikes or lockouts
under Art. 264 of the LC
d. Contempt cases.
2. Exclusive Appellate Jurisdiction
a. All cases decided by the LA under
Art. 217(b) of the LC and Sec. 10 of
R.A. 8042 (Migrant Worker’s Act);
and
b. Cases decided by the Regional
Offices of DOLE in the exercise of its
adjudicatory function under Art. 219
of the LC over monetary claims of
workers amounting to not more
than P5,000 and not accompanied
by claim for reinstatement
1. The NLRC adjudicates cases by division.
A concurrence of 2 votes is needed for a
valid judgement. Whenever the required
membership in a division is not complete
and the concurrence of the
Commissioners to arrive at judgement or
resolution cannot be obtained, the
Chairman shall designate such number
of additional Commissioners from the
other divisions as may be necessary.
 2. It shall be mandatory for the division to
meet for purposes of consultation
3. A certification that a consultation has
been conducted, signed by the presiding
commissioner of the division, shall be
issued (copy attached to the record of
case and served upon the parties)
secure an assurance that the allegations in the
pleading are true and
correct and have been filed in good faith.
[Antonio B. Salenga, et al. v. CA, 2012]
Effect of NLRC reversal of Labor Arbiter’s order
of reinstatement

Even if the order of reinstatement of the

Period of Appeal
Labor Arbiter is reversed on appeal, it is
obligatory on the part of the employer to
(1) Labor Arbiter to NLRC: Decisions and
reinstate and pay the wages of the dismissed
Resolutions of the LA shall be final and executory
employee during the period of appeal until
unless appealed to the NLRC by any or both
reversal by the higher court. On the other hand,
parties within 10 calendar days from receipt
if the employee has been reinstated during the
thereof.
appeal period and such reinstatement order is
[2005 NLRC Rules of Procedure]
reversed with finality, the employee is not
required to reimburse whatever salary he
(2) Regional director to NLRC:
received for he is entitled to such, more so if he
Decisions of the Regional director shall be final
actually rendered services during the period.
and executory unless appealed within 5 days
[Garcia v. Philippine Airlines, Inc., G.R.
from receipt thereof. [Art.129]
No.164856, 2009]
Note: If the last day of the reglementary period
Certified Cases
falls on a Sunday or a holiday, the last day shall
be the next working day.
Definition
Grounds of Appeal
Certified labor disputes are cases certified to the
Commission for compulsory arbitration under
1) If there is prima facie evidence of abuse of
Art. 278 (g) of the Labor Code. [§2, The 2011
discretion on the part of the Labor Arbiter or
NLRC Rules and Procedures]
Regional Director;
Function of the NLRC
2) If the decision, resolution or order was
secured through fraud or coercion, including
When sitting in a compulsory arbitration
graft and corruption;
certified to by the Secretary of Labor, the NLRC
is no sitting as a judicial court but as an
3) If made purely on questions of law;
administrative body charged with the duty to
and/or
implement the order of the Secretary. Its
function only is to formulate the terms and
4) If serious errors in the findings of fact are
conditions of the CBA and cannot go beyond the
raised which, if not corrected, would cause grave
scope of the order. Moreover, the Commission is
or irreparable injury to the appellant
further tasked to act within the earliest time
possible and with the end in view that its action
It is clear from the NLRC Rules of Procedure that
would not only serve the interests of the parties
appeals must be verified and certified against
alone, but would also have favorable
forum-shopping by the parties-in interest
implications to the community and to the
themselves. The purpose of verification is to
economy as a whole. This is the clear intention of
the legislative body in enacting Art. 278
paragraph (g) of the Labor
Code, as amended by Section 27 of R.A. 6175
[Union of Filipino Employees v. NLRC, 1990]
Effects of Certification
1. Upon certification, the intended or
impending strike or lockout is automatically
enjoined, notwithstanding the filing of any
motion for reconsideration of the certification
order nor the non-resolution of any such motion
which may have been duly submitted to the
Office of the Secretary of Labor and
Employment.
2. If a work stoppage has already taken
place at the time of the certification, all striking
or locked out employees shall immediately
return to work and the employer shall
immediately resume operations and readmit all
workers under the same terms and conditions
prevailing before the strike or lockout.
3. All cases between the same parties,
except where the certification order specifies
otherwise the issues submitted for arbitration
which are already filed or may be filed, and are
relevant to or are proper incidents of the
certified case, shall be considered subsumed or
absorbed by the certified case, and shall be
decided by the appropriate Division of the
Commission.
4. The parties to a certified case, under
pain of contempt, shall inform their counsels and
the Division concerned of all cases pending with
the Regional Arbitration Branches and the
Voluntary Arbitrators relative or incident to the
certified case before it.
5. When a certified labor dispute involves a
business entity with several workplaces located
in different regions, the Division having
territorial jurisdiction over the principal office of
the company shall acquire jurisdiction to decide
such labor dispute; unless the certification order
provides otherwise. [Section 3, 2011 NLRC Rules
and Procedures]
Effects of Defiance
Non-compliance with the certification
order of the SOLE shall be considered as an illegal
act committed in the course of the strike or
lockout and shall authorize the Commission to
enforce the same under pain of immediate
disciplinary action, including dismissal or loss of
employment status or payment by the locking-
out employer of backwages, damages and/or
other affirmative relief, even criminal
prosecution against the liable parties.
The Commission may also seek the assistance of
law enforcement agencies to ensure compliance
and enforcement of its orders and resolutions.
[Sec. 4, 2011 NLRC
Rules and Procedures]
Strict Compliance of Assumption and
Certification Orders
The Secretary's assumption and
certification orders being executory in character
are to be strictly complied with by the parties
even during the pendency of a petition
questioning their validity for this extraordinary
authority given by law to the Secretary of Labor
is "aimed at arriving at a peaceful and speedy
solution to labor disputes, without jeopardizing
national interests." [Union of Filipro Employees
v. NLRC, 1990]
C. Judicial Review of Labor Rulings
Court of Appeals, Rule 65
RULES OF COURT, RULE 65
Remedy of a party aggrieved by a decision of
the NLRC
File a petition for certiorari (Rule 65) which
should be initially filed with the CA in strict
observance of the doctrine on the hierarchy of
courts as the appropriate forum for the relief
desired. The CA is procedurally equipped to
resolve unclear or ambiguous factual finding,
aside from the increased number of its
component divisions (St. Martin Funeral Home v.
NLRC, G.R. No. 130866 September 16, 1998).
NOTE: Rule 65, Section 1, Rules of Court:
Petition for Certiorari - When any
tribunal, board or officer exercising judicial or
quasi-judicial functions has acted without or in
excess of its or his jurisdiction, or with grave
abuse of discretion amounting to lack or excess
of jurisdiction, and there is no appeal, or any
plain, speedy, and adequate remedy in the
ordinary course of law, a person aggrieved
thereby may file a verified petition in the proper
court, alleging the facts with certainty and
praying that judgment be rendered annulling or
modifying the proceedings of such tribunal,
board or officer, and granting such incidental
reliefs as law and justice may require.
The petition shall be accompanied by a certified
true copy of the judgment, order or resolution
subject thereof, copies of all pleadings and
documents relevant and pertinent thereto, and
a sworn certification of non-forum shopping as
provided in the third paragraph of section 3, Rule
46.
Period when the petition for certiorari should
be filed with the Court of Appeals
Under Sec. 4, Rule 65 (as amended by
A.M. No. 00-2-03-SC) of the Rules of Civil
Procedure, the petition must be filed within 60
days from notice of the judgment or from notice
of the resolution denying the petitioner’s motion
for reconsideration. This amendment is effective
September 1, 2000, but being curative may be
given retroactive application (Narzoles v. NLRC,
G.R. No. 141959, September 29, 2000).
Art. 224 of the LC, which requires that copies of
final decisions, orders or awards be furnished
not only the party’s counsel of record but also
the party himself applies to the execution
thereof and not to the filing of an appeal or
petition for certiorari. The period within which a
petition for certiorari against a decision of the
NLRC may be filed should be computed from the
date counsel of record of the party receives a
copy of the decision or resolution, and not from
the date the party himself receives a copy
thereof (Ginete v. Sunrise Manning Agency, G.R.
No. 142023, June 21, 2001).
Supreme Court
RULES OF COURT, RULE 45
How to appeal from a judgment, or final order
or resolution, of the Court of Appeals
A party desiring to appeal may file with
the Supreme Court a verified petition for review
on certiorari under Rule 45 within fifteen (15)
days from notice of the judgment, final order or
resolution appealed from (Sea Power Shipping
Enterprises, Inc. v. CA, G.R. No. 138270, June 28,
2001).
NOTE: Rule 45, Sec. 1, Rules of Court: Filing of
petition with Supreme Court.—A party desiring
to appeal by certiorari from a judgment, final
order or resolution of the Court of Appeals, the
Sandiganbayan, the Court of Tax Appeals, the
Regional Trial Court or other courts, whenever
authorized by law, may file with the Supreme
Court a verified petition for review on certiorari.
The petition may include an application for a writ
of preliminary injunction or other provisional
remedies and shall raise only questions of law,
which must be distinctly set forth. The petitioner
may seek the same provisional remedies by
verified motion filed in the same action or
proceeding at any time during its pendency.
Policy of the Supreme Court regarding appeals
in labor cases
The Supreme Court is very strict
regarding appeals filed outside the reglementary
period for filing the same. To extend the period
of the appeal is to delay the case, a circumstance
which could give the employer the chance to
wear out the efforts and meager resources of the
worker that the latter is constrained to give up
for less than what is due him (Firestone Tire and
Rubber Co. of the Philippines v. Firestone Tire and
Rubber Co. Employees Union, G.R. No. 75363,
August 4, 1992).
D. BUREAU OF LABOR RELATIONS
JURISDICTION (ORIGINAL AND
APPELLATE)
The Bureau of Labor Relations and the
Labor Relations Divisions in the regional offices
of the Department of Labor and Employment
shall have original and exclusive authority to act,
at their own initiative or upon request of either
or both parties, on all inter-union and intra-
union conflicts, and all disputes, grievances or
problems arising from or affecting labor-
management relations in all workplaces whether
agricultural or nonagricultural, except those
arising from the implementation or
interpretation of collective bargaining
agreements which shall be the subject of
grievance procedure and/or voluntary
arbitration.
The Bureau shall have fifteen (15) calendar days
to act on labor cases before it, subject to
extension by agreement of the parties.
[Art. 232]
Original Jurisdiction
Decisions of the BLR through its original
jurisdiction are appealable to the Secretary of
Labor and Employment.
Appellate Jurisdiction
BLR has the power to review the
decisions of the Regional Director Decisions
rendered through its appellate power are final
and executory. Hence, the remedy of the
aggrieved party is to seasonably avail of the
special civil action of certiorari under Rule 65 of
the Rules of Court.
E. NATIONAL CONCILIATION AND
MEDIATION BOARD
NATURE OF PROCEEDINGS
Conciliation and mediation is nonlitigious/ non-
adversarial, less expensive, and expeditious.
Under this informal set-up, the parties find it
more expedient to fully ventilate their respective
positions without running around with legal
technicalities and, in the course thereof, afford
them wider latitude of possible approaches to
the problem.
CONCILIATION VS. MEDIATION
Conciliation
A mild form of intervention by a neutral third
party, the Conciliator-Mediator, relying on his
persuasive expertise, takes an active role in
assisting parties by trying to keep disputants
talking, facilitating other procedural niceties,
carrying messages back and forth between the
parties, and generally being a good fellow who
tries to keep things calm and forward looking in
a tense situation.
Disputants to keep things calm, delivers
messages back and forth between the parties.
Mediation
A mild intervention by a neutral third party, the
Conciliator-Mediator, wherein the CM advises
the parties or offers solutions or alternatives to
the problems with the end in view of assisting
them towards voluntarily reaching their own
mutually acceptable settlement of the dispute.
Assists parties to voluntarily reach mutually
acceptable settlement.
Conciliation Mediation
PREVENTIVE MEDIATION
Preventive mediation case — refers to the
potential or brewing labor dispute which is the
subject of a formal or informal request for
conciliation and mediation assistance sought by
either or both parties in order to remedy,
contain or prevent its degeneration into a full
blown dispute through amicable settlement.
F. DOLE Regional Directors
Money claims falling under the jurisdiction of
the DOLE Regional Directors
Under Art. 129 of the LC, the RDs or any of the
duly authorized hearing officers of DOLE have
jurisdiction over claims for recovery of wages,
simple money claims and other benefits,
provided that:
1. The claim must arise from Er-Ee relationship;
2. The claimant does not seek reinstatement;
and
3. The aggregate money claim of each employee
does not exceed Php 5,000.00.
NOTE: In the absence of any of the above
requisites, it is the LA who shall have the
jurisdiction over the claims arising from Er-Ee
relations, except claims for Ee’s compensation,
SSS, Philhealth, and maternity benefits, pursuant
to Art.217 of the LC.
The proceedings before the Regional Office shall
be summary and non-litigious in nature.
Adjudicatory power of the Regional Director
The RD or any of his duly authorized hearing
officers is empowered through summary
proceeding and after due notice, to hear and
decide cases involving recovery of wages and
other monetary claims and benefits, including
legal interests.
G. DOLE Secretary
VISITORIAL AND ENFORCEMENT POWERS
Powers of the SLE
1. Visitorial powers
2. Enforcement powers
3. Appellate or power to review
Visitorial power
It constitutes:
1. Access to Er’s records and premises at
any time of the day or night, whenever
work is being undertaken
2. To copy from said records
3. Question any Ee and investigate any fact,
condition or matter which may be necessary to
determine violations or which may aid in the
enforcement of the LC and of any wage order, or
rules and regulation issued pursuant thereto.
Instances where the visitorial power of the SLE
may be exercised under the LC
Power to:
1. Inspect books of accounts and records of
any person or entity engaged in recruitment and
placement, require it to submit reports regularly
on prescribed forms and act in violations of any
provisions of the LC on recruitment and
placement (Art. 37).
2. Have access to Er’s records and premises
to determine violations of any provisions of the
LC on recruitment and placement (Art. 128).
3. Conduct industrial safety inspections of
establishments (Art. 165).
4. Inquire into the financial activities of LLO
and examine their books of accounts upon the
filing of the complaint under oath and duly
supported by the written consent of at least 20%
of the total membership of the LO concerned.
Power to Suspend/Effects of Termination
The Secretary of the Department of
Labor and Employment may suspend the effects
of the termination pending resolution of the
dispute in the event of a prima facie finding by
the appropriate official of the Department of
Labor and Employment before whom such
dispute is pending that the termination may
cause a serious labor dispute or is in the
implementation of a mass lay-off. [Art. 283 (b)]
Assumption of Jurisdiction
When in his opinion, there exist a labor
dispute causing or likely to cause a strike or
lockout in an industry indispensable to the
national interest, the SOLE may assume
jurisdiction over the dispute and decide it or
certify the same to the Commission for
compulsory arbitration.[Art. 269 (g)]
SLE can assume jurisdiction over a labor
dispute
When there is a labor dispute causing or likely to
cause a strike affecting national interest, the SLE,
on his own initiative or upon petition by any of
the parties, may either assume jurisdiction or
certify the dispute to the NLRC for compulsory
arbitration.
NOTE: Art. 263(g) of the LC is both an
extraordinary and a preemptive power to
address an extraordinary situation (a strike or
lockout in an industry indispensable to the
national interest). As the term “assume
jurisdiction” connotes the intent of the law is to
give the SLE full authority to resolve all matters
within the dispute that gave rise to or which
arose out of the strike or lockout—it includes
and extends to all questions and controversies
arising from or related to the dispute, including
cases over which the Labor Arbiter has exclusive
jurisdiction (Bagong Pagkakaisa ng
Manggagawa ng Triumph International v.
Secretary of the Department of Labor and
Employment, G.R. No. 167401, July 5, 2010).
Effect of the assumption or certification
It automatically enjoins the intended or
impending strike or lockout as specified in the
assumption or certification order. If one has
already taken place at the time of the
assumption or certification, all striking or locked
out Ees shall immediately return to work and the
Er shall immediately resume operations and
readmit all workers under the same terms and
conditions prevailing before the strike or
lockout.
Assumption of jurisdiction can be exercised
without the necessity of prior notice or hearing
given to any of the party disputants
The rationale for the SLE’s assumption of
jurisdiction can justifiably rest on his own
consideration of the exigency of the situation in
relation to the national interests (Capitol
Medical Center v. Trajano, G.R. No. 155690, June
30, 2005).
Enforcement power
It is the power of the SLE to:
1. Issue compliance orders
2. Issue writs of execution for the enforcement
of their orders, except in cases where the Er
contests the findings of the labor officer and
raise issues supported by documentary proof
which were not considered in the course of
inspection
3. Order stoppage of work or suspension of
operation when non-compliance with the law or
implementing rules and regulations poses grave
and imminent danger to health and safety of
workers in the workplace
4. Require Ers to keep and maintain such
employment records as may be necessary in aid
to the visitorial and enforcement powers
5. Conduct hearings within 24 hours to
determine whether:
a. An order for stoppage of work or
suspension of operations shall be lifted
or not; and
b. Er shall pay the concerned Ees their
salaries in case the violation is
attributable to his fault (As amended by
RA 7730; (Guico v. Secretary, G.R. No.
131750, November 16, 1998).
APPELLATE JURISDICTION
a. Orders issued by the duly authorized
representative of the SOLE under Art. 128 may
be appealed to the latter.
b. Denial of application for union registration or
cancellation of union registration originally
rendered by the BLR may be appealed to the
SOLE (if originally rendered by the Regional
Office, appeal should be made to the BLR)
Decisions of the Med-Arbiter in certification
election cases are appealable to the SOLE
(decisions of med-arbiters in intra-union
disputes are appealable to the BLR) [Art. 272]
GRIEVANCE MACHINERY AND VOLUNTARY
ARBITRATION
H. Grievance Machinery
Any question by either the Er or the union
regarding the interpretation or application of the
CBA or company personnel policies or any claim
by either party that the other party is violating
any provision of the CBA or company personnel
policies.
Grievance machinery
It refers to the mechanism for the
adjustment and resolution of grievances arising
from the interpretation or implementation of a
CBA and those arising from the interpretation or
enforcement of company personnel policies. It is
part of the continuing process of CB.
Grievance procedure
It is the internal rules of procedure
established by the parties in their CBA with
voluntary arbitration as the terminal step, which
are intended to resolve all issues arising from the
implementation and interpretation of their CBA.
It refers to the system of grievance settlement at
the plant level as provided in the CBA. It usually
consists of successive steps starting at the level
of the complainant and his immediate supervisor
and ending, when necessary, at the level of the
top union and company officials.
SUBJECT MATTER OF GRIEVANCE
Cases falling under the jurisdiction of the
Grievance Machinery
Any grievance arising from:
1. The interpretation or implementation of the
CBA; and
2. The interpretation or enforcement of
company personnel policies
NOTE: Art. 217(c) of the LC requires LAs to refer
cases involving the implementation of CBAs to
the grievance machinery provided therein and to
voluntary arbitration. Likewise, Art. 260 of the LC
clarifies that such disputes must be referred first
to the grievance machinery and, if unresolved
within seven days, they shall automatically be
referred to voluntary arbitration (Miguela
Santuyo v. Remerco Garments Manufacturing,
Inc., G.R. No. 174420, March 22, 2010).
I. Voluntary Arbitration
Jurisdiction of the Voluntary Arbitrators
Generally, the arbitrator is expected to
decide only those questions expressly delineated
by the submission agreement. Nevertheless, the
arbitrator can assume that he has the necessary
power to make a final settlement since
arbitration is the final resort for the adjudication
of the disputes (Ludo and Luym Corp. v. Saornido,
G.R. No. 140960, January 20, 2003).
Cases within the jurisdiction of VA
Original and exclusive jurisdiction over
1. All unresolved grievances arising from the:
a. Implementation or interpretation of the
CBA
b. Interpretation or enforcement of company
personnel policies
NOTE: Under Art. 217, it is clear that a LA has
original and exclusive jurisdiction over
termination disputes. However, under Art. 261,
a VA has original and exclusive jurisdiction over
grievances arising from the interpretation or
enforcement of company policies. As a general
rule then, termination disputes should be
brought before a LA, except when the parties
unmistakably express that they agree to submit
the same to voluntary arbitration
(Negros Metal Corporation v. Armelo Lamayo,
G.R. No. 186557, August 25, 2010).
2. Wage distortion issues arising from the
application of any wage orders in organized
establishments
3. Those arising from interpretation and
implementation of productivity incentive
programs under R.A. 6971
4. Violations of CBA provisions which are not
gross in character are no longer treated as ULP
and shall be resolved as grievances under the
CBA
NOTE: Gross violation of CBA provisions shall
mean flagrant and/or malicious refusal to
comply with the economic provisions of such
agreement.
5. Any other labor disputes upon agreement by
the parties including ULP and bargaining
deadlock (LC, Art. 262).
NLRC and DOLE cannot entertain
disputes/grievances/matters under the
exclusive and original jurisdiction of the
voluntary arbitrator
They must immediately dispose and refer the
same to the grievance machinery or voluntary
arbitration provided in the CBA.
The parties may choose to submit the dispute to
voluntary arbitration proceedings before or at
the stage of compulsory arbitration proceedings.
Jurisdiction over actual termination disputes
and complaints for illegal dismissal
The Labor Arbiter has jurisdiction over actual
termination disputes and complaints for illegal
dismissal filed by workers pursuant to the union
security clause and not the grievance machinery.
PROCEDURE
How to initiate arbitration
1. Submission Agreement – Where the parties
define the disputes to be resolved
2. Demand notice – Invoking collective
agreement arbitration clause
Voluntary arbitrator (VA)
1. Any person accredited by the NCMB as such
2. Any person named or designated in the CBA by
the parties to act as their VA
3. One chosen with or without the assistance of
the NCMB, pursuant to a selection procedure
agreed upon in the CBA
4. Any official that may be authorized by the
SLE to act as VA upon the written request and
agreement of the parties to a labor dispute (LC,
Art. 262).
Powers of a voluntary arbitrator
1. Hold hearings
2. Receive evidence
3. Take whatever action necessary to resolve the
dispute including efforts to effect a voluntary
settlement between parties (LC, Art. 262-A).
Procedure for choosing voluntary
arbitrator/panel
1. The parties in a CBA shall designate in advance
a VA/panel, preferably from the listing of
qualified VAs duly accredited by the NCMB, or
2. Include in the agreement a procedure for the
selection of such VA or panel of VAs, preferably
from the listing of qualified Vas duly accredited
by the NCMB [LC, Art.260 (3)].
Who will designate the voluntary arbitrator
/panel in case the parties fail to select one
It is the NCMB that shall designate the VA panel
based on the selection procedure provided by
the CBA (Manila Central Line Free Workers Union
v. Manila Central Line Corp., G.R. No. 109383,
June 15, 1998).
Labor Arbiters can be designated as voluntary
arbitrators
There is nothing in the law that prohibits LAs
from also acting as voluntary arbitrators as long
as the parties agree to have him hear and decide
their dispute (Manila Central Line Free Workers
Union v. Manila Central Line Corp., G.R. No.
109383, June 15, 1998).
Effect of the award of voluntary arbitrator
The decision or award of the voluntary arbitrator
acting within the scope of its authority shall
determine the rights of the parties and their
decisions shall have the same legal effects as Workmen’s Dec. 31, 1974 shal be
judgment of the courts. Such matters on fact and compensation claims filed not later than
law are conclusive. accruing prior to the Mar. 31, 1975 before
effectivity of the LC the appropriate
Both the employer and the bargaining and between Nov. 1, regional offices of
representative of the employees are required 1974 – Dec. 31 1974 the DOLE (LC, Art.
to go through the grievance machinery 291)
Union funds After 3 years from
It is but logical, just and equitable that whoever the
is aggrieved should initiate settlement of date of submission of
grievance through the grievance machinery. To the
impose compulsory procedure on Ers alone annual financial
would be oppressive of capital. report to
the DOLE or from the
Nature of power of the voluntary arbitrator date
the same should
Arbitrators by the nature of their functions act in have
a quasi-judicial capacity (BP 129, as amended by been submitted as
R.A. 9702); where a question of law is involved required by law,
or there is abuse of discretion, courts will not whichever comes
hesitate to pass upon review of their acts. earlier
(Omnibus Rules
Decisions of voluntary arbitrators appealable Implementing the LC,
GR: Decisions of VA are final and executory after Book
10 calendar days from receipt of the copy of the VII, Rule II, Sec. 5).
award or decision by the parties (LC, Art. 262-A). Illegal Dismissal 4 years. It
Cases commences to
J. Prescription of Actions run from the date of
formal dismissal
Subject Prescriptive Period [Mendoza
ULP 1 year from accrual v. NLRC, G.R. No.
of such ULP; 122481,
otherwise forever (1998)].
barred (LC, Art. 290)
Money Claims GR: 3 years from the Promissory estoppel
time the cause of It may arise from the making of a promise,
action accrued; even though without consideration, if it was
intended that the promise should be relied upon. If
otherwise forever
in fact it was relied on, a refusal to enforce it would
barred (LC, Art. 291) virtually sanction the perpetration of fraud or
would result in other injustice. It presupposes the
XPN: Promissory existence of a promise on the part of one against
Estoppel whom estoppel is claimed. The promise must be
All money claims Within one year from plain and unambiguous and sufficiently specific so
accruing prior to the the date of that the court can understand the obligation
assumed and enforce the promise according to its
effectively of the LC effectivity, in terms.
accordance with IRR;
otherwise; they shall
forever be barred