Art.
233 – Compromise Agreement – a contract whereby the parties make  Waiver of reinstatement – must be regarded as a personal right &
reciprocal concessions in order to resolve their differences and thus avoid
or put an end to a lawsuit.
COLLECTIVE BARGAINING – refers to the negotiated contract between an
LLO and the employer concerning wages, hours of work, and all other terms
& conditions of employment in a bargaining unit.
 Any compromise agreement, including those that Involves labor
standard laws, voluntarily agreed upon by the parties, w/ assistance
of BLR & regional office of DOLE, shall be final & binding.
 The NLRC or any court shall not assume jurisdiction EXCEPT in case
of non-compliance, or if there is prima facie evidence that
settlement was obtained through fraud, misrepresentations or
coercion.
 Without assistance of NLRC and DOLE regional office, there can be
no valid compromise agreement.
 NOT all quitclaims are invalid EXCEPT:
1. When there is a clear proof that the waiver was
manipulated from an unsuspecting person.
2. The terms of settlement are unconscionable.
 Formal Requirements of compromise agreement:
1. Must be reduced in writing and signed in the presence of the
DOLE regional director or his duly authorized representative.
2. SPA is required before an agent can be authorized to enter into a
compromise agreement.
 Compromise should be duly authorized.
o The will of the majority should prevail over the minority.
o Authority to bind party - Attorneys and other representatives
of parties shall have authority to bind their clients in all
matters of procedure, but they CANNOT enter into a
compromise agreement without SPA or express consent.
must be exercised personally by the workers themselves.
o Neither the officers nor the majority have any authority to
waive the accrued rights pertaining to the dissenting
minority members.
o When it comes to individual benefits accruing to members of
a union from a favorable final judgment of any court, the
members themselves become the real parties in interest and
it is for them, rather than the union, to accept individually
the fruits of litigation.
 SPA is necessary:
1. To effect novation
2. To compromise
3. To waive any obligation gratuitously
 If employees did not enter into compromise agreement, such would
be valid and binding only if the agreement was voluntarily entered
into and represents a reasonable settlement of the claims.
 Requisites of Quitclaims:
1. Employee executes the deed of quitclaim voluntarily.
2. There is no fraud or deceit on both parties.
3. The consideration of quitclaim is credible & reasonable.
4. The contract is not contrary to law.
 A compromise agreement covering a case which is either pending
trial, on appeal, or with final judgment, is allowed & valid assuming
that the elements of a valid contract are present.
 To be binding, the compromise must be shown to have been
voluntarily, freely and intelligently executed by the parties.
 There is no justification to disallow a compromise agreement, only
because it was entered into after final judgment.
 The validity of the agreement is determined by compliance w/ the
requisites of contracts, not when it was entered into.
 A valid compromise must have the following elements:
1. Consent of parties to the compromise.
 2. Object certain or subject matter of the compromise.
3. Cause of the obligation.
 There is no limitation as to when this should be entered into.
 Options when compromise agreement is violated:
1. Enforce the compromise by writ of execution.
2. Regard it as rescinded. Insist upon the original demand.
Article 234 – Mandatory Conciliation & Endorsement of Cases
 All issues arising from labor and employment shall be subject to
mandatory conciliation-mediation, unless excepted by the Secretary
of DOLE.
 Labor arbiter or appropriate DOLE agency that has jurisdiction over
the dispute shall only entertain endorsed or referred cases by the
duly authorized officer.
 If both parties agree, may refer the unresolved issues to voluntary
arbitration.
SEnA – Single Entry Approach – introduced by DOLE
 Aim is to give speedy & inexpensive assistance in any kind of labor
issue or conflict.
 A simple request for assistance authorizes a SEnA Desk Officer
(SEADO) to conduct and end within 30 days a conciliation-mediation
conference aiming to prevent or solve the conflict before it becomes
a full-blown dispute.
 If successful, the conference preserves the peace.
 If it fails, the conflict may be referred to the DOLE Office or Agency
that has jurisdiction over the dispute.
 SEnA is a Mandatory method to resolve a labor issue through
conciliation.
Article 235 – Issuance of Subpoenas
 The BLR has the power to:
o Require the appearance of any person, production of any
document relevant to labor dispute under its jurisdiction, either
at the request of any interested party or its own initiative.
Article 236 – Appointment of Bureau Personnel
 The SOLE may appoint such number of examiners or other assistants
as may be necessary.
Article 237 – Registry of Unions & File of Collective Agreements
 The BLR shall:
1. Keep a registry of the of LLO.
2. Maintain a file of all CBAs, records of settlement of labor
disputes, and copies of decisions of voluntary arbitrators.
3. The file shall be open and accessible to interested parties.
4. Provided that, no specific information submitted in confidence
shall be disclosed unless authorized by SOLE, or when public
interest or national security requires.
 Within 30 days from execution of CBA, the parties shall submit the
same to BLR or DOLE Regional Office for registration, w/ verified
proofs of its posting.
 The BLR or DOLE regional office shall act upon the application for
registration of CBA within 5 calendar days from receipt.
 The regional office shall furnish the BLR w/ a copy of the CBA w/in 5
days from its submission.
 The BLR or Regional office shall assess the employer for every CBA a
registration fee of not less than 1,000 pesos, or any amount as may
be deemed necessary by the SOLE for the effective administration of
the Voluntary Arbitration Program.
 Any collected shall be added to the Special Voluntary Arbitration
Fund.
 The certification of the CBA is not requisite for its validity.
 Once CBA has been entered into & signed by the parties, a CBA
becomes effective as between the parties regardless of whether or
not the same has been certified by the BLR.
 The registration of the CBA is needed so that the contract-bar rule
may come into play.
  Contract-Bar Rule – while a valid & registered CBA is subsisting, the
BLR is not allowed to hold an election contesting the majority status
of the incumbent union.
 The existence of the CBA bars the holding of the inter-union
electoral contest.
 The election is only allowed during the freedom period, or the last
60 days of the 5th year of CBA.
Article 238 – Prohibition on Certification Election
 The BLR shall not entertain any petition for certification election, or
any action w/c may disturb the administration of duly registered
existing CBA affecting the parties except Article 253 & 256.
 CONTRACT-BAR RULE – while a valid and registered CBA is
subsisting, the BLR is not allowed to hold an election contesting the
majority status of the incumbent union.
 The existence of the CBA does not allow the holding of an inter-
union electoral contest.
 The election is allowed only during the FREEDOM PERIOD, w/c
refers to the last 60 days of the 5th year of CBA.
CERTIFICATION ELECTION – determines who will be the sole & exclusive
bargaining agent in an organized establishment, particularly if there is more
than one LLO.
Article 239 – Privileged Communication
 Information and statements made in conciliation proceedings are
treated as privilege communication & shall not be used as evidence
in the Commission. Conciliators shall not testify regarding any
matters taken up at conciliation proceedings.
TITLE 4 – Labor Organization
CHAPTER 1 – Registration and Cancellation
Article 240 – Requirements of Registration
 A federation, national or trade union w/ juridical personality shall be
entitled to the rights & privileges granted by law to LLO upon
issuance of certificate of registration based on the following
requirements:
1. 50.00 registration fee
2. Name & address of officers, principal address of labor org., the
minutes of org. meeting & workers who participated in the
meeting.
3. In case of independent union, names of members comprising
20% of all the employees in the bargaining unit.
4. Copies of financial report if union is existing for one or more
years.
5. 4 copies of the constitution & by-laws of the union, minutes of
its adoption or ratification, & members who participated.
Article 241 – Chartering and Creation of a Local Chapter
 A local chapter is created once a federation or a national union
issues a charter certificate.
 Once issued, the local chapter acquires a legal personality to file a
petition for certificate election.
 All other union rights will be acquired by submitting the following in
addition to the charter certificate (CE).
1. Names & address of union officers & members.
2. Chapter’s constitution & by-laws which can be the same as that
of the federation.
 These documents must be certified under oath by the Secretary or
Treasurer and attested by the president.
 Grounds to cancel a union’s registration are:
1. Any falsehood about the constitution & by-laws (CBL)
2. Falsehood about the election of officers
 3. Voluntary dissolution
 At least 2/3 of the members may vote to dissolve their organization.
Application to cancel to be submitted by the board of the
organization, attested by the president.
 A petition to cancel union registration does not affect filing of
petition for certificate election (PCE).
 Every LLO has to submit the ff. to BLR:
1. Adoption or amendments to CBL.
2. Election of officers.
3. Annual financial report
4. Annual list of members.
 Supervisor’s and rank-and-file union in same company may affiliate
w/ same federation.
 Federation of organized enterprise who files a Petition for
Certification Election (PCE) cannot be required to identify the
chapter’s officers & members. This also applies in enterprise w/o a
union.
 An employer has no right to oppose the PCE.
Article 242 – Action on Application
 The BLR shall act on all applications for registration w/in 30 days
from filing.
 All requisite documents – to be certified under oath by the secretary
or treasurer of the organization & attested by the president.
Article 243 – Denial of Registration; Appeal
 The decision of BLR to deny registration may be appealed by the
applicant union w/in 10 days from receipt of the notice.
Article 244 – Additional Requirements for Federations or National Union
1. Proof of affiliation of at least 10 locals or chapters.
2. Names & address of companies where the locals or chapters
operate, & the list of members in each company.
LABOR ORGANIZATION – refers to any union or association of employees in
the private sector which exists in whole or in part for the purpose of
collective bargaining, or of dealing with employers concerning terms and
conditions of employment.
UNION - refers to any labor organization in the private sector organized for
collective bargaining & for other legitimate purposes.
o Every union is legitimate.
o Properly registered are LLO.
o Non-registration does not mean it is illegitimate.
o Unregistered has no legal personality.
o It exists legally but does not possess the rights of an LLO.
Legitimate Labor Organization (LLO) – refers to any labor organization in
the private sector registered or reported with the DOLE.
 Not every LLO is exclusive bargaining representative (EBR).
 An EBR must be an LLO, but not every LLO is an EBR.
 To be an EBR, the union must be duly registered and must go
through certification by DOLE, or through election among
employees.
 Without recognition or selection process, the union may be an LLO
but not EBR.
EXCLUSIVE BARGAINING REPRESENTATIVE – refers to a legitimate labor
union duly certified as the Sole and Exclusive Bargaining Agent (SEBA), or
representative of all the employees in a bargaining unit that will negotiate a
collective contract w/ the employer.
WORKER’S ASSOCIATION – refers to an association of workers organized for
the mutual aid and protection of its members or for any legitimate purpose
other than collective bargaining.
LEGITIMATE WORKER’S ASSOCOATION – same with worker’s association
but registered with DOLE.
 Collective bargaining is a right that may be acquired by a labor
organization after registration w/ DOLE and after being recognized
or certified by DOLE as the EBR of the employees.
 Dealing w/ the employer is an interaction between employer &
employees concerning terms & conditions of employment, even if
the employee’s group is not registered w/ DOLE.
 Dealing w/ employer explains why a labor organization does not
always have to be a labor union and why employer-employee
collective interactions are not always collective bargaining.
Employer’s opposition to union:
o Unions increase the power of employees to demand higher wages,
shorter working hours, & other benefits increasing labor costs.
o They threaten company profits.
o They lessen the power of corporate management to make unilateral
decisions.
Classification of Labor Organizations:
1. National Union/Federation – any labor organization w/ at least 10
locals/chapters or affiliates each of which must be duly certified or
recognized collective bargaining agent.
2. Industry union – any group of LLO operating within an identified
industry, organized for CB or for dealing w/ employers concerning
terms or conditions of employment, duly registered w/ DOLE.
3. Trade Union Center – group of national unions or federations
organized for mutual aid of its members or assisting in CB.
4. Alliance – aggregation of unions existing in one line of industry or in
a conglomerate, group of franchises, or industrial area. It cannot
represent its member unions in CBA.
 A union at enterprise level may be created through,
1. Independent registration – obtained by union organizers by their
own actions instead of through issuance of a charter by a federation
or national union.
o It has a legal personality of its own not derived from a
federation.
o Independent Union – labor org. at the enterprise level
that acquired legal personality through independent
registration.
2. Chartering – when a duly registered federation or national union
issues a charter to a union in an enterprise and registers the
creation of the chapter w/ DOLE regional office where the applicant
operates.
o The union recipient of the charter is called chapter or local
or chartered local.
 Company-Union – a labor organization w/c is employer-controlled
or dominated.
 If labor organization is registered w/ DOLE, it is considered LLO.
 If not registered, it is not “illegitimate”. It is still lawful org. but has
NO legal personality to demand CB w/ the employer. It cannot
petition for certification election, or request for mediation, or hold a
legal strike.
 Registration w/ DOLE makes a labor org. legitimate. It is clothed w/
legal personality to claim representational & bargaining rights. Such
requirement is a valid exercise of police power.
DOLE Regional Office - where applications for registration of independent
labor unions, chartered locals, and workers’ associations shall be filed &
acted upon.
BLR or DOLE Regional Office – where applications for registration of
federations, national unions, or workers’ associations operating in more
than 1 region shall be filed but acted upon by the BLR w/c has national
jurisdiction unlike the regional office.

 When does a Chapter become an LLO?
o On the date of issuance of its certificate of registration or
certificate of creation of chartered local.
PETITION FOR CERTIFICATION ELECTION – determines who will be the sole
and exclusive bargaining agent in an organized establishment, particularly if
there are more than one LLO.
o An LLO may file a petition for certification election to be
certified as the exclusive bargaining agent.
o An employer may also file a petition for certification
election.
 A labor union’s legal personality may be questioned only through an
independent petition for cancellation of union registration.
Bargaining Unit or CBU – is a group of employees sharing mutual interest
within a given employer unit, comprised of all or less than all the entire
body of employees in the employer unit.
 A company can have several bargaining units of supervisors or the
rank-and-file. (1) the employees are too numerous. (2) physical
difficulty of assembling them as one group.
DOLE Regional Office or BLR – shall act on all applications for registration
or notice of change of name, affiliation, merger, and consolidation w/in one
day from receipt either by:
1. Approving the application and issuing the certificate of registration
2. Denying the application for failure of the applicant to comply w/ the
requirements for registration.
Denial of Application – when documents supporting the application are
incomplete, the DOLE Regional Office or the BLR shall, w/in one (1) day
from receipt f the application, notify the applicant in writing of the
necessary requirements and complete the same w/in 30 days from receipt
of notice.
 Failure to complete the requirements w/in the prescribed period
shall deny the application for registration.
 Denial by the Regional Office is appealable to the BLR, then to CA.
 If the denial is from BLR, the appeal is to the SOLE, and then to CA.
 Appeal should be file w/in 10 days from receipt of the notice of
denial, on the ground of grave abuse of discretion.
 The BLR or the SOLE shall decide the appeal w/in 20 days from
receipt of the records of the case.
AFFILIATE – an independently registered union that enters into an
agreement of affiliation w/ a federation or a national union.
 The sole essence of affiliation is to increase, by collective action, the
bargaining power of local unions for the effective enhancement and
protection of their interests.
PARTNER-AGENT RELATIONSHIP
 Local union or chapter is the principal, and Federation is the agent.
 A registered local union does lose its own legal personality despite
affiliation w/ a federation.
 Affiliation only gives rise to a contract of agency where the local
union acts in representation of the mother federation.
 A local union is free to renounce the affiliation upon the terms laid
down in the agreement.
 It is free to declare its autonomy from the federation.
Grounds for Disaffiliation:
1. Non-payment of union dues
2. Resignation
3. Violation of the union’s CBL.
When to Disaffiliate?
 A labor union may disaffiliate from the mother union only during
the 60-day freedom period immediately preceding the expiration of
the CBA.
FREEDOM PERIOD – last 60 days of the 5th & last year of a CBA.

REVOCATION OF CHARTER Article 248 – Voluntary Cancellation of Registration

 A federation, national union, or worker’s association may revoke the
charter issued to a local union by:
1. Serving the latter a VERIFIED NOTICE OF REVOCATION.
2. Copy furnished to BLR, on the ground of disloyalty, or such other
ground as may be stated in the CBL of the federation.
CANCELLATION OF REGISTRATION ON LOCAL/CHAPTER
 Local union/chapter will lose their status as LLO, unless they are
covered by a duly registered CBA.
 In this case, they are allowed to register as independent unions.
 Otherwise, they will lose their legitimate status upon the expiration
of the CBA.
Article 245 – Cancellation of Registration
 The BLR shall cancel the certificate of registration of any LLO, local
or national, after due hearing, on the grounds of:
1. Misrepresentation, false statement or fraud in connection w/
the adoption or ratification of the CBLSs.
2. Misrepresentation, false statements or fraud in connection w/
election of officers.
3. Voluntary dissolution by the members.
 Registration of an LLO may be cancelled by the organization itself
provided:
1. At least 2/3 of its general membership votes in a meeting duly
called for that purpose.
2. An application to cancel registration is submitted by the board of
the organization, attested by the president.
EFFECTS to the LLO:
1. It reverts to its character prior to the registration.
2. Its juridical personality is suspended, as well as its statutory rights &
privileges.
3. It loses its rights enumerated in Article 251.
4. It cannot demand recognition.
5. It cannot bargain w/ the employer.
6. It cannot file a petition for certification election.
7. It cannot strike.

Article 246 – Effect of Petition for Cancellation of Registration

 It shall not suspend the proceedings on certification election nor

prevent the filing of petition for certification election.

Article 247 – Grounds for Cancellation of Union Registration