Labor Relations Azucena Vol

BOOK FIVE LABOR RELATIONS RELATIONS Title I POLICY AND DEFINITIONS Chapter I POLICY Art. 211. Declaratio o! Polic". A. It is the policy of the State: a. To promote and emphasize the primacy of free collective ar!ainin! and ne!otiations" incl#di incl#din! n! vol#ntar vol#ntary y aritra aritration tion"" mediati mediation on and conciliation" as modes of settlin! laor or ind#strial disp#tes$

. To promote promote free free trade trade #nionis #nionism m as an instr nstr# #men ment for for the the enhance ncemen ment of demo democra cracy cy and and the the promo promotio tion n of socia sociall %#stice and and developmen development$ t$ c. To fost oster the the fre free and vol# ol#nta ntary or!aniz or!anizatio ation n of a stron! stron! and #nited laor movement$ d. To promote the enli!htenment of &or'ers concern concernin! in! their their ri!hts ri!hts and oli!at oli!ation ions s as #nion memers and as employees$ e. To provide provide an ade(#a ade(#ate te administ administrati rative ve machinery for the e)peditio#s settlement of laor or ind#strial disp#tes$ f. To ens#re a stale #t dynamic and %#st ind#strial peace$ and !. To ens#re the participation of &or'ers in deci decisi sion on and and poli policy cy*m *ma' a'in in! ! proc proces esse ses s affectin! their ri!hts" d#ties and &elfare. B. To enco enco#ra #ra!e !e a tr#ly tr#ly demo democra cratic tic meth method od of re!#latin! the relations et&een the employers and employees y means of a!reements freely entered into into thro thro#! #!h h colle collecti ctive ve ar! ar!ai ainin nin!" !" no co#r co#rtt or administrative a!ency or official shall have the po&er to set or fi) &a!es" rates of pay" ho#rs of &or' or other terms and conditions of employment" e)cept as othe other& r&is ise e prov provid ided ed #nde #nderr this this +ode +ode.. ,As ,As amen amende ded d y Secti Section on -" Rep#l Rep#lic ic Act No. No. /01 /01"" 2arch 30" 04546 77777777 1. OVERVIE# AND VIE#POINT

8Laor Standards9 refers to the minim#m terms and condi conditio tions ns of emplo employme yment nt &hich &hich empl employe oyees es are le!ally entitled to and employers m#st comply &ith.

LABOR RELATIONS 8Laor Relations9 refers to the interactions et&een employe employerr and employe employees es or their their represen representati tatives ves and the mechani mechanism sm y &hich &hich the standards standards and othe otherr terms terms and and condi conditio tions ns of empl employm oymen entt are ne!otiated" ad%#sted and enforced. The !overnment laor relations policy is declared in Art. 300 &hich is a foc#sed elaoration of the asic lao laorr polic policy y anno anno#n #nce ced d in Art.Art.- &hich" &hich" in t#rn" t#rn" echo echoes es the the consti constit#t t#tio iona nall mand mandat ates. es. The The poli policy cy intend intends s to attain attain social social %#stice %#stice thro#!h thro#!h ind#str ind#strial ial peac peace e and and pro! pro!re ress ss.. The The latt latter er is fo#n fo#nde ded d on employe employee e partici participati pation on and collecti collective ve interac interactio tions ns et&een employer and employees. In 2ana!ement parlance" the inp#t is the parties ri!hts and d#ties" the process is &or'ers or!anization and collective ar!ainin!" and the o#tp#t is ind#strial peace and pro!ress to&ards social %#stice as the end !oal. ;or' stoppa!e<'no&n as 8stri'e9 y employees or 8loc'o#t9 y the employerovernment" shy a&ay from meddlin!" as m#ch as it can e helped. This is &hy an in*h in*ho# o#se se pro prole lem m solv solvin in! ! str# str#ct ct#r #re" e" call called ed !rievance machinery" is a re(#irement in +BAs. If this machinery fails" the parties themselves are free to select any third party" called vol#ntary aritrator" to resolve their differences. The la&s" as a force that alances the parties ri!hts and oli!a oli!ation tions" s" are admitte admittedly dly necessar necessary y in the ind#strial settin!. 0 2. #ORKERS$ OR%ANI&ATION 0 Art. 0/??. The relations relations et&een et&een capital capital and laor are not merely contract#al. They are so impressed &ith p#lic interest that laor contracts m#st yield to the common !ood. Art. 04. Every person m#st" in the e)ercise of his ri!hts and in the performance of his d#ties" act &ith %#stice" !ive everyone his d#e" and oserve honesty and !ood faith.

Az#cena" +esario Alvero @r. ,3??/6. THE LABOR CODE WITH COMMENTS AND CASES ,ol. II6 . #ezon +ity: Re) Crintin! +ompany" Inc.

0 D C L A T O N

A laor or trade #nion is a comination of &or'men or!a or!ani nized zed for the the #lti #ltimat mate e p#rp p#rpos ose e of sec#r sec#rin! in! thro#!h #nited action the most favo#rale conditions as re!ard re!ards s &a!e &a!es" s" ho#r ho#rs s of laor laor"" condi conditio tions ns of employment" etc." for its memers. In the pop#lar sense a laor #nion is #nderstood to e a complet completely ely or!aniz or!anized ed ody ody of d#es*pa d#es*payin! yin! memers" memers" operat operatin! in! thro#! thro#!h h elected elected officer officers s and constit#tin! a militant" vital and f#nctionin! or!an. It may e said that &hile every laor #nion is a laor or!anization" not every laor or!anization is a laor #nio #nion. n. The The diff differ eren ence ce is one one of or!a or!ani niza zati tion on"" composition and operation. '. #(Y #ORKERS OR%ANI&E

Self* Self*he help lp thro thro#!h #!h econo economic mic actio action n nece necessa ssaril rily y re(# re(#ir ires es incr increa easi sin! n! the the ar! ar!ai aini nin! n! po&e po&err of employees$ hence one of the asic p#rposes of a lao laorr #nio #nion n is to elimin eliminat ate e compe competit titio ion n amon amon! ! employees in the laor mar'et. Three other h#man desires sho#ld e noted amon! the forces that led &or'ers to or!anize: ,06 One is the desire for %o sec#rity. ,36 Employees &ished to s#stit#te &hat &e sho#ld term term 8the 8the r#le r#le of la&9 la&9 for for the the arit aritrar rary y and and ofte often n capricio#s e)ercise of po&er y the oss. ,-6 inally" #nions helped to !ive employees a sense of participation in the #siness enterprises of &hich they they are part< part
. FB#rea#F means the B#rea# of Laor Relations andGor the Laor Relations =ivisions in the re!ional offices offices estalished estalished #nder Cresidential =ecree No. 0" in the =epartment of Laor.

LABOR RELATIONS c. FBoa FBoard rdFF mean means s the the Natio Nationa nall +onci +oncilia liatio tion n and and 2ediation Board estalished #nder E)ec#tive Order No. 03. d. F+o# F+o#nc ncil ilFF mean means s the Trip riparti artite te ol# ol#ntar ntary y Arit Aritrat ratio ion n Adviso Advisory ry +o#n +o#ncil cil esta estali lishe shed d #nder #nder E)ec#tive Order No. 03" as amended. e. FEmpl FEmploye oyerF rF incl# incl#de des s any any perso person n actin actin! ! in the the interes interestt of an employer employer"" directl directly y or indirec indirectly tly.. The term shall not incl#de any laor or!anization or any of its its offic officer ers s or a!en a!ents ts e)cep e)ceptt &hen &hen actin actin! ! as employer. f. FEmployeeF incl#des any person in the employ of an employer. The term shall not e limited to the employees of a partic#lar employer" #nless the +ode so e)plicit e)plicitly ly states. states. It shall shall incl#de incl#de any individ individ#al #al &hose &or' has ceased as a res#lt of or in connection &ith any c#rrent laor disp#te or eca#se of any #nfair laor practice if he has not otained any any othe otherr s#sta s#stanti ntial ally ly e(#iv e(#ivale alent nt and and re!#la re!#larr employment. !. FLa FLaor or or!a or!ani niza zati tion onFF mean means s any any #nio #nion n or association association of employees &hich e)ists in &hole or in part for the p#rpose of collective ar!ainin! or of deal dealin in! ! &ith &ith empl employ oyer ers s conc concer erni nin! n! term terms s and and conditions of employment. h. FLe!itimate laor or!anizationF means any laor or!anization d#ly re!istered &ith the =epartment of Laor and Employment" and incl#des any ranch or local thereof. i. F+ompa F+ompany ny #nionF #nionF means means any laor laor or!ani or!anizati zation on &hose formation" formation" f#nction or administration administration has een een assisted assisted y any act defined defined as #nfair #nfair laor practice y this +ode. %. FBar!ainin! FBar!ainin! representative representativeFF means a le!itimate le!itimate laor or!anization &hether or not employed y the employer. '. FHnfair FHnfair laor practic practiceF eF means means any #nfair laor practice as e)pressly defined y the +ode. l. FLaor disp#teF incl#des any controversy or matter concernin! terms and conditions of employment or the the associ associati ation on or repr represe esent ntati ation on of perso persons ns in ne!o ne!oti tiat atin in!" !" fi)i fi)in! n!"" main mainta tain inin in!" !" chan chan!i !in! n! or arran!in! the terms and conditions of employment" re!ardless of &hether the disp#tants stand in the pro)imate relation of employer and employee. m. F2ana!erial F2ana!erial employeeF is one &ho is vested &ith the po&ers or prero!atives to lay do&n and e)ec#te mana mana!e !eme ment nt poli polici cies es andG andGor or to hire hire"" tran transf sfer er"" s#sp s#spen end" d" lay* lay*of off" f" reca recall ll"" disc discha har! r!e" e" assi assi!n !n or


3 D C L A T O N

A laor or trade #nion is a comination of &or'men or!a or!ani nized zed for the the #lti #ltimat mate e p#rp p#rpos ose e of sec#r sec#rin! in! thro#!h #nited action the most favo#rale conditions as re!ard re!ards s &a!e &a!es" s" ho#r ho#rs s of laor laor"" condi conditio tions ns of employment" etc." for its memers. In the pop#lar sense a laor #nion is #nderstood to e a complet completely ely or!aniz or!anized ed ody ody of d#es*pa d#es*payin! yin! memers" memers" operat operatin! in! thro#! thro#!h h elected elected officer officers s and constit#tin! a militant" vital and f#nctionin! or!an. It may e said that &hile every laor #nion is a laor or!anization" not every laor or!anization is a laor #nio #nion. n. The The diff differ eren ence ce is one one of or!a or!ani niza zati tion on"" composition and operation. '. #(Y #ORKERS OR%ANI&E

Self* Self*he help lp thro thro#!h #!h econo economic mic actio action n nece necessa ssaril rily y re(# re(#ir ires es incr increa easi sin! n! the the ar! ar!ai aini nin! n! po&e po&err of employees$ hence one of the asic p#rposes of a lao laorr #nio #nion n is to elimin eliminat ate e compe competit titio ion n amon amon! ! employees in the laor mar'et. Three other h#man desires sho#ld e noted amon! the forces that led &or'ers to or!anize: ,06 One is the desire for %o sec#rity. ,36 Employees &ished to s#stit#te &hat &e sho#ld term term 8the 8the r#le r#le of la&9 la&9 for for the the arit aritrar rary y and and ofte often n capricio#s e)ercise of po&er y the oss. ,-6 inally" #nions helped to !ive employees a sense of participation in the #siness enterprises of &hich they they are part< part
. FB#rea#F means the B#rea# of Laor Relations andGor the Laor Relations =ivisions in the re!ional offices offices estalished estalished #nder Cresidential =ecree No. 0" in the =epartment of Laor.

LABOR RELATIONS c. FBoa FBoard rdFF mean means s the the Natio Nationa nall +onci +oncilia liatio tion n and and 2ediation Board estalished #nder E)ec#tive Order No. 03. d. F+o# F+o#nc ncil ilFF mean means s the Trip riparti artite te ol# ol#ntar ntary y Arit Aritrat ratio ion n Adviso Advisory ry +o#n +o#ncil cil esta estali lishe shed d #nder #nder E)ec#tive Order No. 03" as amended. e. FEmpl FEmploye oyerF rF incl# incl#de des s any any perso person n actin actin! ! in the the interes interestt of an employer employer"" directl directly y or indirec indirectly tly.. The term shall not incl#de any laor or!anization or any of its its offic officer ers s or a!en a!ents ts e)cep e)ceptt &hen &hen actin actin! ! as employer. f. FEmployeeF incl#des any person in the employ of an employer. The term shall not e limited to the employees of a partic#lar employer" #nless the +ode so e)plicit e)plicitly ly states. states. It shall shall incl#de incl#de any individ individ#al #al &hose &or' has ceased as a res#lt of or in connection &ith any c#rrent laor disp#te or eca#se of any #nfair laor practice if he has not otained any any othe otherr s#sta s#stanti ntial ally ly e(#iv e(#ivale alent nt and and re!#la re!#larr employment. !. FLa FLaor or or!a or!ani niza zati tion onFF mean means s any any #nio #nion n or association association of employees &hich e)ists in &hole or in part for the p#rpose of collective ar!ainin! or of deal dealin in! ! &ith &ith empl employ oyer ers s conc concer erni nin! n! term terms s and and conditions of employment. h. FLe!itimate laor or!anizationF means any laor or!anization d#ly re!istered &ith the =epartment of Laor and Employment" and incl#des any ranch or local thereof. i. F+ompa F+ompany ny #nionF #nionF means means any laor laor or!ani or!anizati zation on &hose formation" formation" f#nction or administration administration has een een assisted assisted y any act defined defined as #nfair #nfair laor practice y this +ode. %. FBar!ainin! FBar!ainin! representative representativeFF means a le!itimate le!itimate laor or!anization &hether or not employed y the employer. '. FHnfair FHnfair laor practic practiceF eF means means any #nfair laor practice as e)pressly defined y the +ode. l. FLaor disp#teF incl#des any controversy or matter concernin! terms and conditions of employment or the the associ associati ation on or repr represe esent ntati ation on of perso persons ns in ne!o ne!oti tiat atin in!" !" fi)i fi)in! n!"" main mainta tain inin in!" !" chan chan!i !in! n! or arran!in! the terms and conditions of employment" re!ardless of &hether the disp#tants stand in the pro)imate relation of employer and employee. m. F2ana!erial F2ana!erial employeeF is one &ho is vested &ith the po&ers or prero!atives to lay do&n and e)ec#te mana mana!e !eme ment nt poli polici cies es andG andGor or to hire hire"" tran transf sfer er"" s#sp s#spen end" d" lay* lay*of off" f" reca recall ll"" disc discha har! r!e" e" assi assi!n !n or


3 D C L A T O N

discipli discipline ne employee employees. s. S#pervi S#pervisory sory employe employees es are those &ho" in the interest of the employer" effectively recommend s#ch mana!erial actions if the e)ercise of s#ch a#thority is not merely ro#tinary or clerical in nat# nat#re re #t #t re(# re(#ir ires es the the #se of inde indepe pend nden entt %#d!ment. %#d!ment. All employees employees not fallin! &ithin any of the aove aove defi definit nition ions s are are consi conside dered red ran'*a ran'*and nd*fi *file le employees for p#rposes of this Boo'.

LABOR RELATIONS The e)istence of employer*employee relationship" as e)plained e)plained in Boo' III" is determined y the presence presence of the follo&in! elements" namely: ,a6 selection and en!a!ement of the employee$ ,6 payment of &a!es$ ,c6 po&er to dismiss$ and

n. Fol Fol#n #nta tary ry Ari Aritr trat ator orFF mea means any any perso erson n accre accredi dited ted y the the Board Board as s#ch s#ch or any any perso person n named named or desi!na desi!nated ted in the +ollecti +ollective ve Bar!ai Bar!ainin! nin! A!reement y the parties to act as their ol#ntary Ari Aritr trat ator or"" or one one chos chosen en &ith &ith or &ith &itho# o#tt the the assi assist stan ance ce of the the Nati Natio onal nal +onc +oncil ilia iati tion on and and 2ediation Board" p#rs#ant to a selection proced#re a!reed #pon in the +ollective Bar!ainin! A!reement" or any any offi offici cial al that that may may e a#th a#thor oriz ized ed y the the Secr Secret etar ary y of Lao Laorr and and Empl Employ oyme ment nt to act act as ol#ntar ol#ntary y Aritra Aritrator tor #pon #pon the &ritten &ritten re(#es re(#estt and a!reement of the parties to a laor disp#te. o. FStri'eF means any temporary stoppa!e of &or' y the concerted action of employees as a res#lt of an ind#strial or laor disp#te. p. FLoc'o# FLoc'o#tF tF means means any temporary temporary ref#sal of an employer to f#rnish &or' as a res#lt of an ind#strial or laor disp#te. (. FInternal #nion disp#teF incl#des all disp#tes or !rie !rieva vanc nces es aris arisin in! ! from from any any viol violat atio ion n of or disa!reement over any provision of the constit#tion and y*la&s of a #nion" incl#din! any violation of the ri!hts and conditions of #nion memership provided for in this +ode. r. FStri'e*rea'erF FStri'e*rea'erF means any person &ho ostr#cts" imped impedes" es" or inter interfer feres es &ith &ith y force" force" viole violenc nce" e" coerc coercio ion" n" threa threats" ts" or intimi intimida datio tion n any peace peacef#l f#l pic'eti pic'etin! n! affecti affectin! n! &a!es" &a!es" ho#rs ho#rs or conditi conditions ons of &or' or in the e)ercise of the ri!ht of self* or!anization or collective ar!ainin!. s. FStri tri'e areaF eaF mea means the estalishm ishme ent" &areho#ses" &areho#ses" depots" depots" plants or offices" offices" incl#din! incl#din! the sites sites or premises premises #sed #sed as r#na&a r#na&ay y shops" shops" of the employer str#c' a!ainst" as &ell as the immediate vicinity act#ally #sed y pic'etin! stri'ers in movin! to and fro efore all points of entrance to and e)it from said estalishment. ,As amended y Section " Rep#lic Act No. /01" 2arch 30" 04546 77777777 77777777 1. E-PL E-PLOY OYER ERE E-PLOY PLOYEE EE ESSENTIAL

RELA RELATI TION ONS( S(IP IP

,d6 po&er to control the employees cond#ct. The fo#rth is the most important element. 2. #(O ARE E-PLOYEES

The term 8employee9: ,06 shall incl#de any employee ,36 and shall not e limited to the employee of any parti partic# c#lar lar emplo employe yerr" #nle #nless ss the the Act so e)pli e)plicit citly ly states other&ise ,-6 and shall incl#de any individ#al ,a6 &hose &or' has ceased as a res#lt of" or in connection &ith any c#rrent laor disp#te ,6 ,6 and and &ho &ho has has not not ota otain ined ed any any othe otherr s#s s#sta tant ntia iall lly y e(#i e(#iva vale len nt and and re!# re!#la larr employment. 8Empl 8Employe oyee9 e9 refer refers s to any perso person n &or'i &or'in! n! for an employer. employer. It incl#des one &hose &or' has ceased in connection &ith any c#rrent laor disp#te or eca#se of any #nfair laor practice and one &ho has een dismissed from &or' #t the le!ality of the dismissal is ein ein! ! cont contes este ted d in a for# for#m m of appr approp opri riat ate e %#risdiction. %#risdiction. 8Emp 8Emplo loye yer9 r9 refe refers rs to any any pers person on or enti entity ty &ho &ho empl employ oys s the the serv servic ices es of othe others rs"" one one for for &hom &hom empl employ oyee ees s &or' &or' and and &ho &ho pays pays thei theirr &a!e &a!es s or salaries. An employer incl#des any person directly or indirec indirectly tly actin! in the interest interest of an employe employerr. It shal shalll also also refer refer to the the ente enterp rpris rise e &here &here a lao laorr or!anization operates or see's to operate. An employer may e ro#!ht into ar!ainin! and economic relationship &ith persons not in his act#al employ$ s#ch persons are !iven the stat#s and ti!hts of 8employees9 in relation to him" in order to accord to them the protection of the Act. Th#s" The nat#re of a 8laor disp#te9 does not re(#ire that the disp#tants sho#ld stand in the pro)imate relation of employer and and empl employ oyee ee"" &ith &ith cons conse( e(#e #ent nt prot protec ecti tion on of concert concerted ed activiti activities es carried carried o#t y many persons persons elon!in! to several employers.


- D C L A T O N

LABOR RELATIONS ,06 +ompensa +ompensatio tion n K ,#nder ,#nderpay payment ment of minim#m minim#m &a!e6

3.0 8One &hose &or' has ceased...9 +essation of &or' d#e to stri'e or loc'o#t" or to dismissa dismissall or s#spens s#spensions ions constit constit#tin #tin! ! #nfair #nfair laor laor practice practices" s" does does not in itself itself affect affect the 8employee9 8employee9 stat#s" in the sense that the ri!hts and enefits of the employee employee are protected protected as tho#!h tho#!h there had een no interr#ption of service" effective #pon act#al ret#rn to &or'.

,36 Benefits K ,nonpayment of holiday pay6

'. LABOR OR%ANI&ATION OR%ANI&ATION AS E-PLOYER

,36 Represe Representa ntation tion =isp#tes =isp#tes K ,determ ,determina ination tion of appropriate collective ar!ainin! #nit6

E)ceptionally" a laor or!anization may e deemed an 8employer9 &hen &hen it is actin! as s#ch in relation to persons renderin! services #nder hire" partic#larly in connection &ith its activities for profit or !ain.

,-6 ;or'in! conditions K ,#nrectified &or' hazards6 B. Laor Relations =isp#tes: ,06 Or!anizational Ri!ht =isp#teG HLC K ,coercion6

,-6 Bar!ainin! =isp#tes K ,ref#sal to ar!ain6 ,6 ,6 +ontr +ontract act Admin Administ istra rati tion on or Cerson Cersonne nell Coli Colicy cy =isp#tes K ,noncompliance &ith +BA provision6

). LABOR DISP/TE

The test of &hether a laor controversy comes &ithin the definition of a laor disp#te depends on &hether it invo involv lves es or conc concer erns ns ter terms" ms" cond condit itio ions ns of employment or representation. The e)istence of a laor disp#te is not ne!ative y the fact that that the plaintif plaintiffs fs and defendan defendants ts do not stand stand in the the pro)i pro)imat mate e rela relatio tion n of emplo employe yerr and and employee. 0. LAB LABOR S/--ARY

DISP/ SP/TES

AND

RE-EDIES

8Laor =isp#te9 incl#des any controversy or matter concernin! terms and conditions of employment or the the associ associati ation on or repre represe sent ntati ation on of perso persons ns in ne!o ne!oti tiat atin in!" !" fi)i fi)in! n!"" main mainta tain inin in!" !" chan chan!i !in! n! or arran!in! the terms and conditions of employment" re!ardl re!ardless ess of &hethe &hetherr the disp#tants disp#tants stand in the pro)imate relation of employer and employee. 1.3 Tests or +riteria of 8Laor =isp#te9 A. Nat#re: =isp#te arises from employer*employee relat relatio ionsh nship ip"" alth altho#! o#!h h disp# disp#ta tants nts need need not not e pro)imately 8employee9 or 8employer9 of the other. B. S#%ec S#%ectt matter: matter: =isp#te =isp#te concern concerns s ,06 terms terms or condi conditio tions ns of emplo employme yment$ nt$ or ,36 assoc associa iati tion on or represe representat ntation ion of persons persons in ne!oti ne!otiatin atin!" !" fi)in!" fi)in!" maint maintain ainin in!" !" or chan chan!i !in! n! terms terms or condi conditio tions ns of employment.

A. Laor Standards =isp#tes:

=isp#tes

K

1. Remedies in Laor =isp#tes , SEE TABLE 16 77777777 77777777 Title II NATIONAL NATIONAL LABOR L ABOR RELATIONS CO--ISSION Chapter I CREATION CREATION AND CO-POSITION

A

1.0 =efinition

1.- Jinds of Laor =isp#tes

,16 Employment Ten#re ,nonre!#larization of employees6

Art. 30-. 30-. Nation National al Laor Laor Relatio Relations ns +ommissi +ommission. on. Ther here shal shalll e a Nati Nation onal al Laor aor Rela Relati tion ons s +omm +ommis issi sio on &hic &hich h shal shalll e atta attach ched ed to the the =epartment of Laor and Employment for pro!ram and and poli policy cy coor coordi dina nati tion on only only"" comp compos osed ed of a +hairman and fo#rteen ,06 2emers. ive ,16 memers each shall e chosen from amon! the the nomi nomine nees es of the the &or' &or'er ers s and and empl employ oyer ers s or!anizations" or!anizations" respectively. respectively. The +hairman and the fo#r fo#r ,6 remainin! remainin! memers memers shall shall come come from the p#li p#lic c sector sector"" &ith &ith the the latte latterr to e chose chosen n from from amon! the recommendees of the Secretary of Laor and Employment. Hpo Hpon ass# ass#mp mpti tio on into into office fice"" the mem memer ers s nomin minated ted y the &or'ers 'ers and emplo mploy yers or!a or!ani niza zati tion ons s shal shalll dive divest st them themse selv lves es of any any affi affili liat atio ion n &ith &ith or inte intere rest st in the the fede federa rati tion on or association to &hich they elon!. The The +ommi +ommissi ssion on may sit en anc anc or in five five ,16 division divisions" s" each composed composed of three three ,-6 memers. memers. S#% S#%ec ectt to the pen# pen#lt ltiimate mate sent senten ence ce of this this para!raph" the +ommission shall sit en anc only for p#rp p#rpose oses s of prom#l prom#l!a !atin tin! ! r#les r#les and and re!#la re!#lati tion ons s !ove !overni rnin! n! the the heari hearin! n! and and dispo disposit sitio ion n of cases cases efore any of its divisions and re!ional ranches"


 D C L A T O N

and form#latin! policies affectin! its administration and operations. The +ommission shall e)ercise its ad%#di ad%#dicato catory ry and all other other po&ers" po&ers" f#nctio f#nctions" ns" and d#ties thro#!h its divisions. Of the five ,16 divisions" the first" second second and third division divisions s shall shall handle handle cases comin! from the National +apital Re!ion and the parts of L#zon$ and the fo#rth and fifth divisions" divisions" cases from the isayas and 2indanao" 2indanao" respectively$ Crovided that the +ommission sittin! en anc may" on temp tempor orary ary or emer! emer!en ency cy asis asis"" allo& allo& cases cases &ithin the %#risdictio %#risdiction n of any division to e heard heard and decided y any other division &hose doc'et allo&s the additio additional nal &or'loa &or'load d and s#ch transfe transferr &ill &ill not e)pose liti!ants to #nnecessary additional e)pense. The The divi divisi sio ons of the the +omm +ommis issi sion on shal shalll have ave e)cl#siv e)cl#sive e appella appellate te %#risdic %#risdiction tion over over cases cases &ithin &ithin their respective territorial %#risdictions. As amended y Rep#lic Act No. //??M. The The conc# conc#rr rren ence ce of t&o t&o ,36 +ommi +ommissi ssion oners ers of a division shall e necessary for the prono#ncement of %#d!ment %#d!ment or resol#tion. resol#tion. ;henever ;henever the re(#ired re(#ired memership in a division is not complete and the conc#rrence of t&o ,36 commissioners to arrive at a %#d!ment %#d!ment or resol#tion resol#tion cannot e otained" otained" the +hairman +hairman shall desi!nate desi!nate s#ch n#mer of additional +ommissioners from the other divisions as may e necessary. The concl#sions concl#sions of a division on any case s#mitted to it for decision decision shall shall e reached reached in cons#lt cons#ltatio ation n efore the case is assi!ned to a memer for the &ritin! of the opinion. opinion. It shall e mandatory mandatory for the division division to meet meet for p#rposes p#rposes of the cons#ltati cons#ltation on ordained herein. A certification to this effect si!ned y the Cresidin! +ommissioner of the division shall e iss#ed and a copy thereof attached to the record of the case and served #pon the parties. The +hairman shall e the Cresidin! +ommissioner of the first division and the fo#r ,6 other memers from from the the p#l p#lic ic sect sector or shal shalll e the the Cres Cresid idin in! ! +ommissioners of the second" third" fo#rth and fifth divisi divisions ons"" respe respecti ctive vely ly.. In case case of the the effec effectiv tive e ase asenc nce e or inca incap pacit acity y of the the +hai +hairm rma an" the the Cresidin! Cresidin! +ommissioner of the second division shall e the Actin! +hairman.

LABOR RELATIONS e(#ivalent f#nctions and d#ties as are dischar!ed y the +ler' of +o#rt and =ep#ty +ler's of +o#rt of the +o#r +o#rtt of Appe Appeal als. s. ,As ,As amen amende ded d y Sect Sectio ion n 1" Rep#lic Act No. /01" 2arch 30" 04546 77777777 77777777 Art. 30. 30. ead(# ead(#arte arters" rs" Branche Branches s and Crovinci Crovincial al E)ten E)tensio sion n Hnits. Hnits. The The +ommi +ommissi ssion on and and its irst" irst" Second Second and Third Third division divisions s shall shall have their main main offices in 2etropolitan 2anila" and the o#rth and ifth divisions divisions in the +ities of +e# and +a!ayan de Oro" respectively. The +ommission shall estalish as many re!ional ranches as there are re!ional offices of the =epartment of Laor and Employment" s#* re!ion re!ional al ranch ranches es or provinci provincial al e)tensi e)tension on #nits. #nits. There shall e as many Laor Ariters as may e necessary for the effective effective and efficient efficient operation of the the +ommi +ommissi ssion on.. Each Each re!ion re!ional al ran ranch ch shall shall e headed y an E)ec#tive Laor Ariter. ,As amended y Secti Section on " Rep#l Rep#lic ic Act No. No. /01 /01"" 2arch 2arch 30" 30" 04546 77777777 77777777 1. NLRC NAT/RE NAT/RE AND OR%ANI&ATION OR%ANI&ATION

0.0 +reation and A#tonomy Before the advent of the Laor +ode the laor co#rt &as the +o#rt of Ind#strial Ind#strial Relations. Relations. ;hen martial la& &as declared in Septemer 04/3" C= No. 30 ,Octoer 0" 04/36 aolished the +IR and replaced it &ith an ad hoc Nati Nation onal al Lao Laorr Relat Relatio ions ns +ommission. This NLR+ &as short*lived as it !ave &ay to the NLR+ &hich the Laor +ode created in 04/. 0.3 Administrat Administrative ive S#pervi S#pervision sion =ele!a =ele!ated ted to the =OLE Secretary E)ec#tive E)ec#tive Order No. 3? dele!ated to the Secretary of Laor 8administrative s#pervision s#pervision over the NLR+" its re!ion re!ional al ranche ranches s and all its person personnel nel.9 .9 The Order cited t&o o%ectives: ,06 to f#rther improve the rate rate of dispo disposit sitio ion n of cases cases and and ,36 to enha enhance nce e)istin! e)istin! meas#res meas#res for the prevent prevention ion of !raft !raft and corr#ption in the NLR+. 0.- Essential +haracter

The +hairman" aided y the E)ec#tive +ler' of the +ommission" +ommission" shall have administrative administrative s#pervision over the +ommission and its re!ional ranches and all all its its perso personn nnel" el" incl# incl#din din! ! the E)ec# E)ec#tiv tive e Lao Laorr Ariters and Laor Ariters. The The +ommi +ommissi ssion" on" &hen &hen sittin sittin! ! en anc anc shall shall e assisted assisted y the same E)ec#ti E)ec#tive ve +ler' +ler' and" and" &hen &hen actin! thr# its =ivisions" y said E)ec#tive +ler's for the the seco second nd"" thir third" d" fo#r fo#rth th and and fift fifth h =ivi =ivisi sion ons" s" respectively" in the performance of s#ch similar or

Hnder Rep#lic Act No. /01 in 0454" as #nder the former mer la&" a&" the Nation ional Laor Rela elatio tions +ommission contin#es to act colle!ially" &hether it performs administrative or r#le*ma'in! f#nctions or e)ercises appellate %#risdiction to revie& decisions and final orders of the Laor Ariters. 0. Tripartite +omposition


1 D C L A T O N

The same Article 30-" as amended" provides that the +hairman and t&enty*three memers composin! the National Laor Relations +ommission shall e chosen from the &or'ers" employers and the p#lic sectors. 0.1 Allocation of Co&ers Bet&een NLR+ En Banc and Its =ivision The 8division: is a le!al entity" not the persons &ho sit in it. ence" an individ#al commissioner has no ad%#dicatory po&er" altho#!h" of co#rse" he can conc#r or dissent in decidin! a case. The la& lod!es the ad%#dicatory po&er on each of the ei!ht divisions" not on the individ#al commissioners not on the &hole commission. 0. The NLR+ R#les of Croced#re 8The 3??1 Revised R#les of Croced#re of the National Laor Relations +ommission9 &as p#lished in ne&spapers on =ecemer 3-" 3??1 and too' effect on @an#ary /" 3??. 77777777 Art. 301. Appointment and #alifications. The +hairman and other +ommissioners shall e memers of the Chilippine Bar and m#st have en!a!ed in the practice of la& in the Chilippines for at least fifteen ,016 years" &ith at least five ,16 years e)perience or e)pos#re in the field of laor* mana!ement relations" and shall preferaly e residents of the re!ion &here they are to hold office. The E)ec#tive Laor Ariters and Laor Ariters shall li'e&ise e memers of the Chilippine Bar and m#st have een en!a!ed in the practice of la& in the Chilippines for at least seven ,/6 years" &ith at least three ,-6 years e)perience or e)pos#re in the field of laor*mana!ement relations: Crovided" o&ever" that inc#ment E)ec#tive Laor Ariters and Laor Ariters &ho have een en!a!ed in the practice of la& for at least five ,16 years may e considered as already (#alified for p#rposes of reappointment as s#ch #nder this Act. The +hairman and the other +ommissioners" the E)ec#tive Laor Ariters and Laor Ariters shall hold office d#rin! !ood ehavior #ntil they reach the a!e of si)ty*five years" #nless sooner removed for ca#se as provided y la& or ecome incapacitated to dischar!e the d#ties of their office. The +hairman" the division Cresidin! +ommissioners and other +ommissioners shall e appointed y the Cresident" s#%ect to confirmation y the +ommission on Appointments. Appointment to any vacancy shall come from the nominees of the sector &hich nominated the predecessor. The E)ec#tive Laor Ariters and Laor Ariters shall also e appointed y the Cresident" #pon

LABOR RELATIONS recommendation of the Secretary of Laor and Employment and shall e s#%ect to the +ivil Service La&" r#les and re!#lations. The Secretary of Laor and Employment shall" in cons#ltation &ith the +hairman of the +ommission" appoint the staff and employees of the +ommission and its re!ional ranches as the needs of the service may re(#ire" s#%ect to the +ivil Service La&" r#les and re!#lations" and #p!rade their c#rrent salaries" enefits and other emol#ments in accordance &ith la&. ,As amended y Section /" Rep#lic Act No. /01" 2arch 30" 04546 77777777 RE/IRIN% CONFIR-ATION BY CO--ISSION ON APPOINT-ENTS3 /NCONSTIT/TIONAL 77777777

Art. 30. Salaries" enefits and other emol#ments. The +hairman and memers of the +ommission shall receive an ann#al salary at least e(#ivalent to" and e entitled to the same allo&ances and enefits as those of the Cresidin! @#stice and Associate @#stices of the +o#rt of Appeals" respectively. The E)ec#tive Laor Ariters shall receive an ann#al salary at least e(#ivalent to that of an Assistant Re!ional =irector of the =epartment of Laor and Employment and shall e entitled to the same allo&ances and enefits as that of a Re!ional =irector of said =epartment. The Laor Ariters shall receive an ann#al salary at least e(#ivalent to" and e entitled to the same allo&ances and enefits as that of an Assistant Re!ional =irector of the =epartment of Laor and Employment. In no case" ho&ever" shall the provision of this Article res#lt in the dimin#tion of e)istin! salaries" allo&ances and enefits of the aforementioned officials.,As amended y Section 5" Rep#lic Act No. /01" 2arch 30" 04546 77777777 Chapter II PO#ERS AND D/TIES

Art. 30/. @#risdiction of the Laor Ariters and the +ommission. a. E)cept as other&ise provided #nder this +ode" the Laor Ariters shall have ori!inal and e)cl#sive %#risdiction to hear and decide" &ithin thirty ,-?6 calendar days after the s#mission of the case y the parties for decision &itho#t e)tension" even in the asence of steno!raphic notes" the follo&in! cases involvin! all &or'ers" &hether a!ric#lt#ral or non*a!ric#lt#ral: 0. Hnfair laor practice cases$ 3. Termination disp#tes$


 D C L A T O N

-. If accompanied &ith a claim for reinstatement" those cases that &or'ers may file involvin! &a!es" rates of pay" ho#rs of &or' and other terms and conditions of employment$ . +laims for act#al" moral" e)emplary and other forms of dama!es arisin! from the employer*employee relations$ 1. +ases arisin! from any violation of Article 3 of this +ode" incl#din! (#estions involvin! the le!ality of stri'es and loc'o#ts$ and . E)cept claims for Employees +ompensation" Social Sec#rity" 2edicare and maternity enefits" all other claims arisin! from employer*employee relations" incl#din! those of persons in domestic or ho#sehold service" involvin! an amo#nt e)ceedin! five tho#sand pesos ,C1"???.??6 re!ardless of &hether accompanied &ith a claim for reinstatement. . The +ommission shall have e)cl#sive appellate %#risdiction over all cases decided y Laor Ariters. c. +ases arisin! from the interpretation or implementation of collective ar!ainin! a!reements and those arisin! from the interpretation or enforcement of company personnel policies shall e disposed of y the Laor Ariter y referrin! the same to the !rievance machinery and vol#ntary aritration as may e provided in said a!reements. ,As amended y Section 4" Rep#lic Act No. /01" 2arch 30" 04546 77777777 1. ADDITIONAL CASES

To the si) ,6 'inds of cases mentioned in Article 30/" the follo&in! sho#ld e added: 0. 2oney claims arisin! o#t of employer*employee relationship or y virt#e of any la& or contract" involvin! ilipino &or'ers for overseas deployment" incl#din! claims for act#al" moral" e)emplary and other forms of dama!es" as &ell as employment termination of O;s$ 3. ;a!e distortion disp#tes in #nor!anized estalishments not vol#ntarily settled y the parties p#rs#ant to Rep#lic Act No. /3/" as reflected in Article 03$ -. Enforcement of compromise a!reements &hen there is non*compliance y any of the parties

LABOR RELATIONS p#rs#ant to Article 33/ of the Laor +ode" as amended$ and . Other cases as may e provided y la&. 2. CO-P/LSORY ARBITRATION BY LABOR ARBITERS

In its road sense" aritration is the reference of a disp#te to an impartial third person" chosen y the parties or appointed y stat#tory a#thority to hear and decide the case in controversy. ;hen the consent of one of the parties is enforced y stat#tory provisions" the proceedin! is referred to as comp#lsory aritration. In laor cases" comp#lsory aritration is the process of settlement of laor disp#tes y a !overnment a!ency &hich has the a#thority to investi!ate and to ma'e an a&ard &hich is indin! on all the parties. 3.0 NLR+ Appellate Croceedin!s Not Cart of Aritration Hnder the Laor +ode" it is the Laor Ariter &ho is clothed &ith the a#thority to cond#ct comp#lsory aritration on cases involvin! termination disp#tes and other cases #nder Art. 30/. ;hen the Laor Ariter renders his decision" comp#lsory aritration is deemed terminated eca#se y then the hearin! and determination of the controversy has ended. 3.3 Nat#re of Croceedin!s The NLR+ R#les descrie the proceedin!s efore the Laor Ariter as non*liti!io#s. S#%ect to the re(#irements of d#e process" the technicalities of la& and proced#re in the re!#lar co#rts do not apply in NLR+Glaor ariter proceedin!s ,Art. 3306. The ariter may avail himself of all reasonale means" incl#din! oc#lar inspection" to ascertain the facts speedily$ he shall personally cond#ct the conference or hearin!s and ta'e f#ll control of the proceedin!s. ,R#le " Sec. 3" NLR+ 3??1 R#les of Croced#re6 3.- Article 30/ ields to Arts. 30 3 and 33 '. LABOR %ENERAL

ARBITER$S

4/RISDICTION3

IN

3 A vol#ntary aritrator" #nder Art. 30" has 8ori!inal and e)cl#sive9 %#risdiction over disp#tes concernin! +BA implementation or personnel policy enforcement. - In addition" #nder Art. 33" the parties may s#mit to a vol#ntary aritrator ,or panel6 8all other disp#tes incl#din! #nfair laor practices and ar!ainin! deadloc's.


/ D C L A T O N

The cases laor ariter can hear and decide are employment*related.

LABOR RELATIONS !overnmental machinery to settle the disp#te m#st e placed at his immediate disposal.

-.0 S#pervisory +ontrol" +r#cial

.3 ;aiver

+ontrol over the performance of the &or' is the cr#cial indicator of employment relationship" &itho#t &hich the laor ariter has no %#risdiction over the disp#te. It is &ell*settled in la& and %#rispr#dence that &here no employer*employee relationship e)ists et&een the parties and no iss#e is involved &hich may e resolved y reference to the Laor +ode" other laor stat#tes" or any collective ar!ainin! a!reement" it is the Re!ional Trial +o#rt that has %#risdiction. ). VEN/E

The 3??1 NLR+ R#les" in Sec. 0,c6" R#le I states: 8;hen ven#e is not o%ected to efore the fillin! of position papers s#ch iss#e shall e deemed &aived.9 0. LABOR ARBITER$S 4/RISDICTION /.L.P. CASES

B#t its essence" capt#red in Art. 3" is any act intended or directed to &ea'en or defeat the &or'ers ri!hts to self*or!anize or to en!a!e in la&f#l concerted activities. In short" #nfair laor practice" &hen committed y an employer" carries the effect of anti*#nionism.

The NLR+ R#les of Croced#re provides:

5. CBA VIOLATION A-O/NTIN% TO /LP

Section 0. en#e. * a6 All cases &hich Laor Ariters have a#thority to hear and decide may e filed in the Re!ional Aritration Branch havin! %#risdiction over the &or'place of the complainant or petitioner.

+ertainly" violations of the collective ar!ainin! a!reement &o#ld e #nfair laor practice &hich falls #nder the %#risdiction of the Laor Ariters and the National Laor Relations +ommission.

or p#rposes of ven#e" the &or'place shall e #nderstood as the place or locality &here the employee is re!#larly assi!ned at the time the ca#se of action arose. It shall incl#de the place &here the employee is s#pposed to report ac' after a temporary detail" assi!nment" or travel. In case of field employees" as &ell as am#lant or itinerant &or'ers" their &or'place is &here they are re!#larly assi!ned" or &here they are s#pposed to re!#larly receive their salaries and &a!es or &or' instr#ctions from" and report the res#lts of their assi!nment to" their employers. 6 ;here t&o ,36 or more Re!ional Aritration Branches have %#risdiction over the &or'place of the complainant or petitioner" the Branch that first ac(#ired %#risdiction over the case shall e)cl#de the others. c6 ;hen ven#e is not o%ected to efore the fillin! of position papers s#ch iss#e shall e deemed &aived. d6 The ven#e of an action may e chan!ed or transferred to a different Re!ional Aritration Branch other than &here the complaint &as filed y &ritten a!reement of the parties or &hen the +ommission or Laor Ariter efore &hom the case is pendin! so orders" #pon motion y the proper party in meritorio#s cases. e6 +ases involvin! overseas ilipino &or'ers may e filed efore the Re!ional Aritration Branch havin! %#risdiction over the place &here the complainant resides or &here the principal office of any of the respondents is sit#ated" at the option of the complainant.

.0 ;or'ers Option The &or'er" ein! the economically*disadvanta!ed party<&hether as complainantGpetitioner or as respondent" as the case may e
+. L ABOR ARBITER$S TER-INATION DISP/TES

4/RISDICTION

Termination disp#tes or ille!al dismissal complaints fall &ithin the %#risdiction of a laor ariter" as stated in Art. 30/,36. /.0 Termination of +orporate Officer$ @#risdiction over Intra*+orporate =isp#tes Transferred from SE+ to RT+ The dismissal of a corporate officer y a corporate oard is a corporate disp#te that sho#ld e ro#!ht to the re!#lar co#rts. A corporate officers dismissal is al&ays a corporate act" or an e)tra*corporate controversy and the nat#re is not altered y the reason or &isdom &ith &hich the Board of =irectors may have in ta'in! s#ch action. /.3 Effect of +laim for Bac'&a!es" Benefits" or =ama!es In intra*corporate matters" s#ch as those affectin! the corporation" its directors" tr#stees" officers and shareholders" the iss#e of conse(#ential dama!es may %#st as &ell e resolved and ad%#dicated y the SE+. Hndo#tedly" it is still &ithin the competence and e)pertise of the SE+ to resolve all matters arisin! from or closely connected &ith all intra* corporate disp#tes.


5 D C L A T O N

LABOR RELATIONS /.- 2ainland v. 2ovilla: The 8Better Colicy9 in =eterminin! SE+ @#risdiction The etter policy to e follo&ed in determinin! %#risdiction over a case sho#ld e to consider conc#rrent factors s#ch as the stat#s or relationship of the parties or the nat#re of the (#estion that is the s#%ect of their controversy. /. Taan! v. NLR+: SE+ @#risdiction Reaffirmed$ +orporate Officer and Intra*corporate +ontroversy =efined An 8intra*corporate controversy9 is one &hich arises et&een a stoc'holder and the corporation. There is no distinction" (#alification" nor any e)emption &hatsoever. The provision is road and covers all 'inds of controversies et&een stoc'holders and corporations. *. LABOR ARBITER$S 4/RISDICTION -ONEY CLAI-S

A money claim arisin! from employer*employee relations" e)ceptin! SSSGE++G2edicare claims" is &ithin the %#risdiction of a laor ariter< 0. if the claim" re!ardless of amo#nt" is accompanied &ith a claim for reinstatement$ or 3. if the claim" &hether or not accompanied &ith a claim for reinstatement" e)ceeds five tho#sand pesos ,C1"???.??6 per claimant. 5.0 Only 2oney +laims Not Arisin! from +BA The ol#ntary Aritrator or Canel of ol#ntary Aritrators &ill have ori!inal and e)cl#sive %#risdiction over money claims Farisin! from the interpretation or implementation of the +ollective Bar!ainin! A!reement and" those arisin! from the interpretation or enforcement of company personnel policiesF" #nder Article 30. 5.3 2oney Employment

+laims

2#st

ave

Arisen

from

2oney claims of &or'ers &hich do not arise o#t of or in connection &ith their employer*employee relationship fall &ithin the !eneral %#risdiction of re!#lar co#rts of %#stice. ;here the claim to the principal relief so#!ht is to e resolved not y reference to the Laor +ode or other laor relations stat#te or a collective ar!ainin! a!reement #t y the !eneral civil la&" the %#risdiction over the disp#te elon!s to the re!#lar co#rts of %#stice and not to the Laor Ariter and the National Laor Relations +ommission.

5.- 2oney +laims of +oop Employees 5. @#risdiction over +laims for =ama!es 2oney claims of &or'ers &hich the laor ariter has ori!inal and e)cl#sive %#risdiction are comprehensive eno#!h to incl#de claims for moral dama!es of a dismissed employee a!ainst his employer. 5.1 Splittin! of Actions Not Allo&ed An employee &ho has een ille!ally dismissed so as to ca#se him moral dama!es has a ca#se of action for reinstatement" ac' &a!es and dama!es. ;hen he instit#tes proceedin!s efore the Laor Ariter" he sho#ld ma'e a claim for all said reliefs. 5. Employers +omplaint for =ama!es An employers claim for dama!es a!ainst an employee may e filed as co#nterclaim in the ille!al dismissal case filed y the employee. S#ch claim for dama!es" arisin! from employment relationship" is o#tside the %#risdiction of the re!#lar co#rt. 6. LABOR ARBITER$S 4/RISDICTION STRIKE AND LOCKO/TS

#estions relatin! to stri'es or loc'o#ts or any form of &or' stoppa!e incl#din! incidents thereof #nder Art. 3 fall &ithin the laor ariters %#risdiction. B#t the po&er to iss#e in%#nction is lod!ed &ith an NLR+ division" not a laor ariter. 2oreover" 8national interest cases are handled differently. Art. 3- ,!6 empo&ers the =OLE Secretary or the Cresident of the Rep#lic to ass#me %#risdiction or refer the case to the NLR+ if the laor disp#te or impendin! stri'e or loc'o#t involves an ind#stry indispensile to national interest. Still another limit to the ariters %#risdiction is the %#risdiction of the re!#lar co#rts to hear and decide actions filed y third parties ein! affected y a stri'e of people &ho are not their employees. inally" if a crime is committed" &hether in relation to a stri'e or not" the prosec#tion of the crime has to e done not efore a laor ariter #t a re!#lar co#rt" eca#se in s#ch a case the la&s to e administered are primarily the penal la&s of the land. 17. LABOR ARBITER$S 4/RISDICTION OF#$S -ONEY CLAI-S OR DIS-ISSAL

Section 0? of RA 5?3" approved on @#ne /" 0441" 'no&n as the 2i!rant ;or'ers and Overseas ilipinos Act of 0441" transfers from the COEA to Laor Ariters the ori!inal and e)cl#sive %#risdiction


4 D C L A T O N

to hear and decide claims arisin! o#t of an employer*employee relationship or y virt#e of any la& or contract involvin! ilipino &or'ers for overseas deployment" incl#din! claims for act#al" moral" e)emplary and other forms of dama!es. Based on Article 30/" Laor +ode and Section 0?" R.A. No. 5?3M" laor ariters" clearly have original and exclui!e %#risdiction over claims arisin! from employer*employee relations" incl#din! "er#ina"ion di$u"e involvin! all &or'ers" amon! them &hom are Overseas ilipino ;or'ers ,O;6. 11. LABOR ARBITER$S 4/RISDICTION #%AE DISTORTION

A salary distortion case" referred to in the Article 03" is resolved either thro#!h the +BA mechanism or" in #nor!anized estalishments" thro#!h the N+2B. I the N+2B fails to resolve the disp#te in ten days of conciliation conferences" it shall e final to the appropriate ranch of the NLR+. 12. LABOR ARBITER$S 4/RISDICTION DISP/TES OVER CO-PRO-ISE SETTLE-ENTS

Beca#se laor la& policy enco#ra!es vol#ntary resol#tion of disp#tes" compromise settlements are ordinarily final and indin! #pon the parties. B#t a compromise settlement may itself ecome the s#%ect of disp#te. If there is noncompliance &ith the compromise a!reement or if there is $ri#a %acie evidence that the settlement &as otained thro#!h fra#d" misrepresentation" or coercion" then" accordin! to Article 33/" the NLR+ thro#!h the laor ariter may ass#me %#risdiction over s#ch disp#te. 1'. S/B-ISSION TO 4/RISDICTION

The active participation of the party a!ainst &hom the action &as ro#!ht co#pled &ith his fail#re to o%ect to the %#risdiction of the +o#rt or (#asi*%#dicial ody &here the action is pendin!" is tantamo#nt to an invocation of that %#risdiction" and a &illin!ness to aide y the resol#tion of the case &ill ar said party from later on imp#!nin! the co#rt or odys %#risdiction.

LABOR RELATIONS e(#ality of states #nder &hich one state cannot assert %#risdiction over another in violation of the ma)im $ar in $are# non ha&e" i#$eriu# ,an e(#al has no po&er over an e(#al6. As it stands no&" the application of the doctrine of imm#nity from s#it has een restricted to soverei!n or !overnmental activities , 'ure i#$erii 6. The mantle of state imm#nity cannot e e)tended to commercial" private and proprietary acts , 'ure ge"ioni6. 0.0 Imm#nity of the HN and Its Specialized A!encies 10. E8EC/TIN% -ONEY CLAI-S A%AINST T(E %OVERN-ENT

Even &hen a !overnment a!ency enters into a #siness contract &ith a private entity" it is not the Laor +ode #t +.A. No. -3/ that applies in p#rs#in! a money claim ,a!ainst the >overnment6 arisin! from s#ch contract. 15. LOCAL #ATER DISTRICT

They are (#asi p#lic corporations &hose employees elon! to the civil service" hence" the dismissal of those employees shall e !overned y the civil service la&" r#les and re!#lations. 0.0 E)ception: ;here NLR+ @#risdiction is Invo'ed 1+. REP/BLIC ACT NO. 5+109RETROACTIVE: 77777777

Art. 305. Co&ers of the +ommission. The +ommission shall have the po&er and a#thority: a. To prom#l!ate r#les and re!#lations !overnin! the hearin! and disposition of cases efore it and its re!ional ranches" as &ell as those pertainin! to its internal f#nctions and s#ch r#les and re!#lations as may e necessary to carry o#t the p#rposes of this +ode$ ,As amended y Section 0?" Rep#lic Act No. /01" 2arch 30" 04546

1). I--/NITY OF FOREI%N %OVERN-ENTS

. To administer oaths" s#mmon the parties to a controversy" iss#e s#poenas re(#irin! the attendance and testimony of &itnesses or the prod#ction of s#ch oo's" papers" contracts" records" statement of acco#nts" a!reements" and others as may e material to a %#st determination of the matter #nder investi!ation" and to testify in any investi!ation or hearin! cond#cted in p#rs#ance of this +ode$

In international la&" Fimm#nityF is commonly #nderstood as an e)emption of the state and its or!ans from the %#dicial %#risdiction of another state. This is anchored on the principle of the soverei!n

c. To cond#ct investi!ation for the determination of a (#estion" matter or controversy &ithin its %#risdiction" proceed to hear and determine the disp#tes in the asence of any party thereto &ho has een

The S#preme +o#rt fro&ns #pon the #ndesirale practice of a party s#mittin! his case for decision and then acceptin! the %#d!ment only if favo#rale" and attac'in! it for lac' of %#risdiction &hen adverse.


0? D C L A T O N

s#mmoned or served &ith notice to appear" cond#ct its proceedin!s or any part thereof in p#lic or in private" ad%o#rn its hearin!s to any time and place" refer technical matters or acco#nts to an e)pert and to accept his report as evidence after hearin! of the parties #pon d#e notice" direct parties to e %oined in or e)cl#ded from the proceedin!s" correct" amend" or &aive any error" defect or irre!#larity &hether in s#stance or in form" !ive all s#ch directions as it may deem necessary or e)pedient in the determination of the disp#te efore it" and dismiss any matter or refrain from f#rther hearin! or from determinin! the disp#te or part thereof" &here it is trivial or &here f#rther proceedin!s y the +ommission are not necessary or desirale$ and d. To hold any person in contempt directly or indirectly and impose appropriate penalties therefor in accordance &ith la&. A person !#ilty of misehavior in the presence of or so near the +hairman or any memer of the +ommission or any Laor Ariter as to ostr#ct or interr#pt the proceedin!s efore the same" incl#din! disrespect to&ard said officials" offensive personalities to&ard others" or ref#sal to e s&orn" or to ans&er as a &itness or to s#scrie an affidavit or deposition &hen la&f#lly re(#ired to do so" may e s#mmarily ad%#d!ed in direct contempt y said officials and p#nished y fine not e)ceedin! five h#ndred pesos ,C1??6 or imprisonment not e)ceedin! five ,16 days" or oth" if it e the +ommission" or a memer thereof" or y a fine not e)ceedin! one h#ndred pesos ,C0??6 or imprisonment not e)ceedin! one ,06 day" or oth" if it e a Laor Ariter. The person ad%#d!ed in direct contempt y a Laor Ariter may appeal to the +ommission and the e)ec#tion of the %#d!ment shall e s#spended pendin! the resol#tion of the appeal #pon the filin! y s#ch person of a ond on condition that he &ill aide y and perform the %#d!ment of the +ommission sho#ld the appeal e decided a!ainst him. @#d!ment of the +ommission on direct contempt is immediately e)ec#tory and #nappealale. Indirect contempt shall e dealt &ith y the +ommission or Laor Ariter in the manner prescried #nder R#le /0 of the Revised R#les of +o#rt$ and ,As amended y Section 0?" Rep#lic Act No. /01" 2arch 30" 04546 e. To en%oin or restrain any act#al or threatened commission of any or all prohiited or #nla&f#l acts or to re(#ire the performance of a partic#lar act in any laor disp#te &hich" if not restrained or performed forth&ith" may ca#se !rave or irreparale dama!e to any party or render ineffect#al any decision in favor of s#ch party: Crovided" That no

LABOR RELATIONS temporary or permanent in%#nction in any case involvin! or !ro&in! o#t of a laor disp#te as defined in this +ode shall e iss#ed e)cept after hearin! the testimony of &itnesses" &ith opport#nity for cross* e)amination" in s#pport of the alle!ations of a complaint made #nder oath" and testimony in opposition thereto" if offered" and only after a findin! of fact y the +ommission" to the effect: 0. That prohiited or #nla&f#l acts have een threatened and &ill e committed and &ill e contin#ed #nless restrained" #t no in%#nction or temporary restrainin! order shall e iss#ed on acco#nt of any threat" prohiited or #nla&f#l act" e)cept a!ainst the person or persons" association or or!anization ma'in! the threat or committin! the prohiited or #nla&f#l act or act#ally a#thorizin! or ratifyin! the same after act#al 'no&led!e thereof$ 3. That s#stantial and irreparale in%#ry to complainants property &ill follo&$ -. That as to each item of relief to e !ranted" !reater in%#ry &ill e inflicted #pon complainant y the denial of relief than &ill e inflicted #pon defendants y the !rantin! of relief$ . That complainant has no ade(#ate remedy at la&$ and 1. That the p#lic officers char!ed &ith the d#ty to protect complainants property are #nale or #n&illin! to f#rnish ade(#ate protection. S#ch hearin! shall e held after d#e and personal notice thereof has een served" in s#ch manner as the +ommission shall direct" to all 'no&n persons a!ainst &hom relief is so#!ht" and also to the +hief E)ec#tive and other p#lic officials of the province or city &ithin &hich the #nla&f#l acts have een threatened or committed" char!ed &ith the d#ty to protect complainants property: Crovided" ho&ever" that if a complainant shall also alle!e that" #nless a temporary restrainin! order shall e iss#ed &itho#t notice" a s#stantial and irreparale in%#ry to complainants property &ill e #navoidale" s#ch a temporary restrainin! order may e iss#ed #pon testimony #nder oath" s#fficient" if s#stained" to %#stify the +ommission in iss#in! a temporary in%#nction #pon hearin! after notice. S#ch a temporary restrainin! order shall e effective for no lon!er than t&enty ,3?6 days and shall ecome void at the e)piration of said t&enty ,3?6 days. No s#ch temporary restrainin! order or temporary in%#nction shall e iss#ed e)cept on condition that complainant


00 D C L A T O N

LABOR RELATIONS shall first file an #nderta'in! &ith ade(#ate sec#rity in an amo#nt to e fi)ed y the +ommission s#fficient to recompense those en%oined for any loss" e)pense or dama!e ca#sed y the improvident or erroneo#s iss#ance of s#ch order or in%#nction" incl#din! all reasonale costs" to!ether &ith a reasonale attorneys fee" and e)pense of defense a!ainst the order or a!ainst the !rantin! of any in%#nctive relief so#!ht in the same proceedin! and s#se(#ently denied y the +ommission. The #nderta'in! herein mentioned shall e #nderstood to constit#te an a!reement entered into y the complainant and the s#rety #pon &hich an order may e rendered in the same s#it or proceedin! a!ainst said complainant and s#rety" #pon a hearin! to assess dama!es" of &hich hearin!" complainant and s#rety shall have reasonale notice" the said complainant and s#rety s#mittin! themselves to the %#risdiction of the +ommission for that p#rpose. B#t nothin! herein contained shall deprive any party havin! a claim or ca#se of action #nder or #pon s#ch #nderta'in! from electin! to p#rs#e his ordinary remedy y s#it at la& or in e(#ity: Crovided" f#rther" That the reception of evidence for the application of a &rit of in%#nction may e dele!ated y the +ommission to any of its Laor Ariters &ho shall cond#ct s#ch hearin!s in s#ch places as he may determine to e accessile to the parties and their &itnesses and shall s#mit thereafter his recommendation to the +ommission. ,As amended y Section 0?" Rep#lic Act No. /01" 2arch 30" 04546 77777777

c6 those that may e necessary to carry o#t the p#rposes of this +ode. It is an elementary r#le in administrative la& that administrative re!#lations and policies enacted y administrative odies" s#ch as the Revised R#les of the NLR+" to interpret the la& &hich they are entr#sted to enforce" have the force of la&" and are entitled to !reat respect. 0.3 Co&er to Iss#e +omp#lsory Crocesses The +ommission has the po&er to: a6 administer oaths$ 6 s#mmon parties$ and c6 iss#e s#poenas ad "e"i%icandu# and duce "ecu#. 0.- Co&er to Investi!ate and ear =isp#tes &ithin Its @#risdiction The +ommission has the po&er to: a6 cond#ct investi!ation for the determination of a (#estion" matter or controversy &ithin its %#risdiction$ and 6 proceed to hear and determine the disp#tes in the manner laid do&n #nder para!raph ,c6 of Art. 305. 0. +ontempt Co&er

Art. 304. Oc#lar inspection. The +hairman" any +ommissioner" Laor Ariter or their d#ly a#thorized representatives" may" at any time d#rin! &or'in! ho#rs" cond#ct an oc#lar inspection on any estalishment" #ildin!" ship or vessel" place or premises" incl#din! any &or'" material" implement" machinery" appliance or any o%ect therein" and as' any employee" laorer" or any person" as the case may e" for any information or data concernin! any matter or (#estion relative to the o%ect of the investi!ation. 77777777 1. PO#ERS OF T(E CO--ISSION

+ontempt is defined as a disoedience to the +o#rt y settin! #p an opposition to its a#thority" %#stice and di!nity. It si!nifies not only a &illf#l disre!ard or disoedience of the co#rtPs orders #t s#ch cond#ct as tends to rin! the a#thority of the co#rt and the administration of la& into disrep#te or in some manner to impede the d#e administration of %#stice. 0.1 Co&er to +ond#ct Oc#lar Inspection Hnder Article 304" the +hairman" any +ommissioner" Laor Ariter or their d#ly a#thorized representatives" may" at any time d#rin! &or'in! ho#rs:

0.0 R#le*2a'in! Co&er The +ommission has the po&er to prom#l!ate r#les and re!#lations: a6 !overnin! the hearin! and disposition of cases efore it and its re!ional ranches$

a6 cond#ct an oc#lar inspection on any estalishment" #ildin!" ship or vessel" place or premises" incl#din! any &or'" material" implement" machinery" appliance or any o%ect therein$ and 6 as' any employee" laorer" or any person" as the case may e" for any information or data concernin!

6 pertainin! to its internal f#nctions$ and Az#cena" +esario Alvero @r. ,3??/6. THE LABOR CODE WITH COMMENTS AND CASES ,ol. II6 . #ezon +ity: Re) Crintin! +ompany" Inc.

03 D C L A T O N

any matter or (#estion relative to the o%ect of the investi!ation.

LABOR RELATIONS As a r#le" restrainin! orders or in%#nctions do not iss#e ex $ar"e and only after compliance &ith the follo&in! re(#isites" to &it:

0. Ad%#dicatory Co&er: Ori!inal The NLR+ has ori!inal %#risdiction over petitions for in%#nction or temporary restrainin! order #nder Art. 305,e6. Also" it has ori!inal %#risdiction to hear and decide 8National Interest9 cases certified to it y the Secretary of Laor #nder Art. 3-,!6. 0./ Ad%#dicatory Co&er: Appellate The NLR+ has e)cl#sive appellate %#risdiction over all cases decided y laor ariters ,Art. 30/M6 and the =OLE re!ional director or hearin! officers #nder Art. 034. The NLR+ has no appellate %#risdiction over decisions rendered y ,06 a vol#ntary aritrator" or ,36 the secretary of laor" or ,-6 the #rea# of laor relations director on cases appealed from the =OLE re!ional offices. The decisions of these three offices are appealale rather to the +o#rt of Apeals. ;here the laor ariter has no %#risdiction or has not ac(#ired %#risdiction" neither has the NLR+. Its %#risdiction over cases #nder Art. 30/,a6 is appellate" not ori!inal. 2. PO#ER TO ISS/E IN4/NCTION TE-PORARY RESTRAININ% ORDER

OR

The NLR+ has in%#nction po&er or" simply" the po&er to command that an act e done or not done. The action for in%#nction is distinct from the ancillary remedy of preliminary in%#nction  &hich cannot e)ist e)cept only as part or an incident of an independent action or proceedin!. A &rit of preliminary in%#nction is !enerally ased solely on initial and incomplete evidence.

a6 a hearin! held Fafter d#e and personal notice thereof has een served" in s#ch manner as the +ommission shall direct" to all 'no&n persons a!ainst &hom relief is so#!ht" and also to the +hief E)ec#tive and other p#lic officials of the province or city &ithin &hich the #nla&f#l acts have een threatened or committed char!ed &ith the d#ty to protect complainantPs property$F 6 reception at the hearin! of Ftestimony of &itnesses" &ith opport#nity for cross*e)amination" in s#pport of the alle!ations of a complaint made #nder oath"F as &ell as Ftestimony in opposition thereto" if offered ) )$ c6 8a findin! of fact y the +ommission" to the effect: ,06 That prohiited or #nla&f#l acts have een threatened and &ill e committed and &ill e contin#ed #nless restrained" #t no in%#nction or temporary restrainin! order shall e iss#ed on acco#nt of any threat" prohiited or #nla&f#l act" e)cept a!ainst the person or persons" association or or!anization ma'in! the threat or committin! the prohiited or #nla&f#l act or act#ally a#thorizin! or ratifyin! the same after act#al 'no&led!e thereof$ ,36 That s#stantial and irreparale in%#ry to complainantPs property &ill follo&$ ,-6 That as to each item of relief to e !ranted" !reater in%#ry &ill e inflicted #pon complainant y the denial of relief than &ill e inflicted #pon defendants y the !rantin! of relief$ ,6 That complainant has no ade(#ate remedy at la&$ and ,16 That the p#lic officers char!ed &ith the d#ty to protect complainantPs property are #nale or #n&illin! to f#rnish ade(#ate protection.9 3.- +onditions for Iss#ance Ex (ar"e of a Temporary Restrainin! Order ,TRO6 A temporary restrainin! order ,valid only for 3? days6 may e iss#ed ex $ar"e #nder the follo&in! conditions:

3.0 In%#nction y Laor Ariter Article 305 limits the !rant of in%#nctive po&er to the 8+ommission9 meanin! the +ommission en &anc or any of its divisions. 3.3 Re(#isites for Iss#ance of Restrainin! Order or In%#nction

 The sole o%ect of &hich is to preserve the stat#s (#o #ntil the merits can e heard.

a6 the complainant Fshall also alle!e that" #nless a temporary restrainin! order shall e iss#ed &itho#t notice" a s#stantial and irreparale in%#ry to complainantPs property &ill e #navoidale$ 6 there is Ftestimony #nder oath" s#fficient" if s#stained" to %#stify the +ommission in iss#in! a temporary in%#nction #pon hearin! after notice$F c6 the Fcomplainant shall first file an #nderta'in! &ith ade(#ate sec#rity in an amo#nt to e fi)ed y the +ommission s#fficient to recompense those en%oined


0- D C L A T O N

for any loss" e)pense or dama!e ca#sed y the improvident or erroneo#s iss#ance of s#ch order or in%#nction" incl#din! all reasonale costs" to!ether &ith a reasonale attorneyPs fee" and e)pense of defense a!ainst the order or a!ainst the !rantin! of any in%#nctive relief so#!ht in the same proceedin! and s#se(#ently denied y the +ommission$F and d6 the Ftemporary restrainin! order shall e effective for no lon!er than t&enty ,3?6 days and shall ecome void at the e)piration of said t&enty ,3?6 days. An in%#ry is considered irreparale if it is of s#ch constant and fre(#ent rec#rrence that no fair and reasonale redress can e had therefor in a co#rt of la&" or &here there is no standard y &hich their amo#nt can e meas#red &ith reasonale acc#racy" that is" it is not s#sceptile of mathematical comp#tation. It is considered irreparale in%#ry &hen it cannot e ade(#ately compensated in dama!es d#e to the nat#re of the in%#ry itself or the nat#re of the ri!ht or property in%#red or &hen there e)ists no certain pec#niary standard for the meas#rement of dama!es. 8Croperty9 incl#des not only tan!ile property #t also the ri!ht to #se s#ch property. 8C#lic officers9 means local la& enforcin! officers. The 8protection9 contemplated is that &hich &o#ld enale the employer to proceed &ith the &or'. The intent of this re(#irement is to ta'e the e)ec#tive f#nction of la& enforcement o#t of the co#rt and leave it to the appropriate e)ec#tive officers" #nless they fail to f#nction. 3. No Ade(#ate Remedy In addition to the other re(#irements &hich the complainant m#st satisfy in order to otain in%#nctive relief #nder the Act" the complainant m#st sho& that 8he has no ade(#ate remedy at la&.9 An ade(#ate remedy at la& has een defined as one 8that affords relief &ith reference to the matter in controversy" and &hich is appropriate to the partic#lar circ#mstances of the case. 3.1 +ash Bond Hnder the NLR+ R#les of 3??1" no temporary restrainin! order or &rit of preliminary in%#nction shall e iss#ed e)cept on the condition that petitioner shall first file an #nderta'in! to ans&er for the dama!es and post a cash ond in the amo#nt of ifty Tho#sand Cesos ,C1?"???.??6" or s#ch hi!her

LABOR RELATIONS amo#nt as may e determined y the +ommission. The p#rpose of the ond is to recompense those en%oined for any loss" e)pense or dama!e ca#sed y the improvident or erroneo#s iss#ance of s#ch order or in%#nction" incl#din! all reasonale costs" to!ether &ith a reasonale attorneys fee" and e)pense of defense a!ainst the order or a!ainst the !rantin! of any in%#nctive relief so#!ht in the same proceedin! and s#se(#ently denied y the +ommission. 3. Scope As to the scope of an in%#nction iss#ed #nder the Act" oth the Act itself and the cases restrict the operation of s#ch in%#nction not only to the specific acts complained of in the pleadin!s and proven at trial as &ron!f#l" #t f#rther" limits the in%#nction to only those alle!ed and proven !#ilty of act#al participation" a#thorization or ratification of s#ch acts. The po&er of the NLR+ to en%oin or restrain the commission of any or all prohiited or #nla&f#l acts as provided in Art. 305 of the Laor +ode" can only e e)ercised in a laor disp#te. 3./ Reception of Evidence The reception of evidence 8for the application of a &rit of in%#nction may e dele!ated y the +ommission to any of its Laor Ariters &ho shall cond#ct s#ch hearin!s in s#ch places as he may determine to e accessile to the parties and their &itnesses and shall s#mit thereafter his recommendation to the +ommission.9 8Laor Ariter9 in the precedin! sentence may no& refer to 8+ommission Attorney"9 a position created y R.A. No. 4-/ ,@#ly 3/" 3??6 to assist the +ommission and its divisions in their appellate and ad%#dicatory f#nctions. 3.5 T&enty*day Life of TRO A temporary restrainin! order ,TRO6" if iss#ed at all in a petition for in%#nction" is valid only for t&enty ,3?6 days and ecomes void i$o %ac"o at the end of that period. The TRO ta'es effect #pon its iss#ance and not #pon receipt of the parties. The ma)im#m period of 3? days incl#des Sat#rdays" S#ndays" and holidays. 3.4 Ill#strative +ase: Iss#ance of TRO 3.0? In%#nction from NLR+: Not the Croper Remedy a!ainst Employees =ismissal 77777777


0 D C L A T O N

Art. 33?. +omp#lsory aritration. The +ommission or any Laor Ariter shall have the po&er to as' the assistance of other !overnment officials and (#alified private citizens to act as comp#lsory aritrators on cases referred to them and to fi) and assess the fees of s#ch comp#lsory aritrators" ta'in! into acco#nt the nat#re of the case" the time cons#med in hearin! the case" the professional standin! of the aritrators" the financial capacity of the parties" and the fees provided in the R#les of +o#rt.M ,Repealed y Section 0" Batas Camansa Bilan! 0-?" A#!#st 30" 04506 77777777 Art. 330. Technical r#les not indin! and prior resort to amicale settlement. In any proceedin! efore the +ommission or any of the Laor Ariters" the r#les of evidence prevailin! in co#rts of la& or e(#ity shall not e controllin! and it is the spirit and intention of this +ode that the +ommission and its memers and the Laor Ariters shall #se every and all reasonale means to ascertain the facts in each case speedily and o%ectively and &itho#t re!ard to technicalities of la& or proced#re" all in the interest of d#e process. In any proceedin! efore the +ommission or any Laor Ariter" the parties may e represented y le!al co#nsel #t it shall e the d#ty of the +hairman" any Cresidin! +ommissioner or +ommissioner or any Laor Ariter to e)ercise complete control of the proceedin!s at all sta!es.

LABOR RELATIONS &itho#t resortin! to technical r#les of evidence as oserved in re!#lar co#rts of %#stice. 0.0 2odic#m of Admissiility$ S#stantial Evidence It is tr#e that administrative and (#asi*%#dicial odies li'e the NLR+ are not o#nd y the technical r#les of proced#re in the ad%#dication of cases. o&ever" this proced#ral r#le sho#ld not e constr#ed as a license to disre!ard certain f#ndamental evidentiary r#les. ;hile the r#les of evidence prevailin! in the co#rts of la& or e(#ity are not controllin! in proceedin!s efore the NLR+" the evidence presented efore it m#st at least have a modic#m of admissiility for it to e !iven some proative val#e. Not only m#st there e some evidence to s#pport a findin! or concl#sion" #t evidence m#st e Fs#stantial.F FS#stantial evidence is more than a mere scintilla. It means s#ch relevant evidence as a reasonale mind mi!ht accept as ade(#ate to s#pport a concl#sion. 0.3 +ardinal Ri!hts in #asi*@#dicial Croceedin!s There are cardinal primary ri!hts &hich m#st e respected even in proceedin!s of this character: 06 ri!ht to a hearin!$ 36 tri#nal m#st consider the evidence presented$

Any provision of la& to the contrary not&ithstandin!" the Laor Ariter shall e)ert all efforts to&ards the amicale settlement of a laor disp#te &ithin his %#risdiction on or efore the first hearin!. The same r#le shall apply to the +ommission in the e)ercise of its ori!inal %#risdiction. ,As amended y Section 00" Rep#lic Act No. /01" 2arch 30" 04546 77777777

-6 decision m#st e s#pported y somethin! ,evidence6$

1. PROCEEDIN%S BEFORE LABOR ARBITER OR T(E CO--ISSION; TEC(NICAL R/LES NOT APPLICABLE

6 the ody or +IR or any of its %#d!es m#st act on his o&n independent considerations of the la& and facts" and not simply accept the vie&s of the s#ordinate in arrivin! at a decision$ and

Administrative and (#asi*%#dicial odies" li'e the National Laor Relations +ommission" are not o#nd y the technical r#les of proced#re in the ad%#dication of cases. Simplification of proced#re" &itho#t re!ard to technicalities of la& or proced#re and &itho#t sacrificin! the f#ndamental re(#isites of d#e process" is mandated to ins#re a speedy administration of social %#stice. This +o#rt constr#ed Article 330 of the Laor +ode as to allo& the NLR+ or a laor ariter to decide a case on the asis of position papers and other doc#ments s#mitted

6 s#pportin! evidence m#st e s#stantial$ 16 =ecision m#st e rendered on the evidence presented or at least contained in the record and disclosed to the parties affected$

/6 decide in s#ch manner that parties can 'no& the vario#s iss#es involved and the reason for the decision. 0.- erification erification is intended to ass#re that the alle!ations in the pleadin! have een prepared in !ood faith or are tr#e and correct" not mere spec#lations. >enerally" lac' of verification is merely a format defect that is neither %#risdictional nor fatal. 0. Carty Respondent


01 D C L A T O N

LABOR RELATIONS In a complaint for #nderpayment of &a!es and other money claims filed y employees of a sin!le proprietorship #siness" the respondent sho#ld e the #siness o&ner. This is not necessarily the person in &hose name the #siness is re!istered. 0.1 Crohiited Cleadin!s and 2otions Emphasizin! the avoidance of le!al technicalities" the NLR+ 3??1 R#les ,in R#le III" Section6 does not allo& the follo&in! motions or pleadin!s: a6 2otion to dismiss the complaint e)cept on the !ro#nd of lac' of %#risdiction over the s#%ect matter" improper ven#e" re 'udica"a" prescription and for#m shoppin!$

and si!ned y the parties and their respective co#nsel or a#thorized representative" if an y" efore the Laor Ariter. c6 In any case" the compromise a!reement shall e approved y the Laor Ariter" if after e)plainin! to the parties" partic#larly to the complainants" the terms" conditions and conse(#ences thereof" he is satisfied that they #nderstand the a!reement" that the same &as entered into freely and vol#ntarily y them" and that it is not contrary to la&" morals" and p#lic policy. d6 A compromise a!reement d#ly entered into in accordance &ith this Section shall e final and indin! #pon the parties and shall have the force and effect of a %#d!ment rendered y the Laor Ariter. e6 The mandatory conciliation and mediation conference shall" e)cept for %#stifiale !ro#nds" e terminated &ithin thirty ,-?6 calendar days from the date of the first conference.

6 2otion for a ill of partic#lars$ c6 2otion for ne& trial$ d6 Cetition for relief from %#d!ment &hen filed &ith the Laor Ariter$ e6 Cetition for Cer"iorari " Manda#u or prohiition$ f6 2otion to declare respondent in defa#lt$ !6 2otion for reconsideration or appeal from any interloc#tory order of the Laor Ariter. 2. -ANDATORY CONCILIATION AND -EDIATION CONFERENCE; CO-PRO-ISE ENCO/RA%ED Section 3. Nat#re of Croceedin!s. * The proceedin!s efore the Laor Ariter shall e non*Iiti!io#s in nat#re. S#%ect to the re(#irements of d#e process" the technicalities of la& and proced#re and the r#les otainin! in the co#rts of la& shall not strictly apply thereto. The Laor Ariter may avail himself of all reasonale means to ascertain the facts of the controversy speedily" incl#din! oc#lar inspection and e)amination of &ell*informed persons. Section -. 2andatory +onciliation and 2ediation +onference. K a6 The mandatory conciliation and mediation conference shall e called for the p#rpose of ,06 amicaly settlin! the case #pon a fair compromise$ ,36 determinin! the real parties in interest$ ,-6 determinin! the necessity of amendin! the complaint and incl#din! all ca#ses of action$ ,6 definin! and simplifyin! the iss#es in the case$ ,16 enterin! into admissions or stip#lations of facts$ and ,6 threshin! o#t all other preliminary matters. The Laor Ariter shall preside and ta'e f#ll control of the proceedin!s. 6 +onciliation and mediation efforts shall e e)erted y the Laor Ariters all thro#!ho#t the proceedin!s. Sho#ld the parties arrive at any a!reement as to the &hole or any part of the disp#te" the same shall e red#ced to &ritin!

f6 No motion for postponement shall e entertained e)cept on meritorio#s !ro#nds. Section . Effect of ail#re of +onciliation and 2ediation. * Sho#ld the parties fail to a!ree #pon an amicale settlement" either in &hole or in part" d#rin! the mandatory conciliation and mediation conference" the Laor Ariter shall terminate the conciliation and mediation sta!e and proceed to p#rs#e the other p#rposes of the said conference as en#merated in the immediately precedin! Section. Thereafter" the Laor Ariter shall direct the parties to sim#ltaneo#sly file their respective position papers on the iss#es a!reed #pon y the parties and as reflected in the min#tes of the proceedin!s. Section 1. Non*Appearance of Carties. * The non* appearance of the complainant or petitioner d#rin! the t&o ,36 settin!s for mandatory conciliation and mediation conference sched#led in the s#mmons" despite d#e notice thereof" shall e a !ro#nd for the dismissal of the case &itho#t pre%#dice. In case of non*appearance y the respondent d#rin! the first sched#led conference" the second conference shall proceed as sched#led in the s#mmons. If the respondent still fails to appear at the second conference despite ein! d#ly served &ith s#mmons" the Laor Ariter shall immediately terminate the mandatory conciliation and mediation conference. The Laor Ariter shall thereafter allo& the complainant or petitioner to file his verified position paper and s#mit evidence in s#pport of his ca#ses of action" and there#pon render his decision on the asis of the evidence on r ecord.

It is tr#e that a compromise a!reement once approved y the co#rt has the effect of re 'udica"a et&een the parties and sho#ld not e dist#red e)cept for vices of consent and for!ery. o&ever" settled is the r#le that the NLR+ may disre!ard technical r#les of proced#re in order to !ive life to the constit#tional mandate affordin! protection to laor and to conform to the need of protectin! the


0 D C L A T O N

&or'in! class &hose inferiority a!ainst the employer has al&ays een earmar'ed y disadvanta!e.

LABOR RELATIONS there m#st e et&een the t&o cases Identity of parties" s#%ect matter" and ca#ses of action.

3.0 Bindin! Effect of +ompromise A!reement

-.- No =ismissal of +omplaint despite =eath

The a#thority to compromise cannot li!htly e pres#med and sho#ld e estalished y evidence.

-. Revival or Refilin! of =ismissed +ase A dismissed case is not necessarily dead.

Section 4. A#thority to Bind Carty. * Attorneys and other representatives of parties shall have a#thority to ind their clients in all matters of proced#re$ #t they cannot" &itho#t a special po&er of attorney or e)press consent" enter into a compromise a!reement &ith the opposin! party in f#ll or partial dischar!e of a clientPs claim.

Also not to e overloo'ed is Section - ,c and d6 of the NLR+ 3??1 R#les of Croced#re (#oted aove. It re(#ires the Laor Ariters approval of a compromise a!reement over a case pendin! efore the Laor Ariter. 3.3 #itclaim and ;aivers A deed of release or (#itclaim cannot ar an employee from demandin! enefits to &hich he is le!ally entitled. 3.3a inal and E)ec#tory @#d!ment +annot e Ne!otiated The %#d!ment may no lon!er e modified in any respect" even if the modification is meant to correct &hat is perceived to e an erroneo#s concl#sion of fact or la&" and re!ardless of &hether the modification is attempted to e made y the co#rt renderin! it or y the hi!hest co#rt of the land.

Section 0. Revival And Re*Openin! Or Re*ilin! Of =ismissed +ase. * A party may file a motion to revive or re*open a case dismissed &itho#t pre%#dice" &ithin ten ,0?6 calendar days from receipt of notice of the order dismissin! the same$ other&ise" his only remedy shall e to re*file the case in the aritration ranch of ori!in.

A complaint dismissed 8&itho#t pre%#dice9 simply means a tentative or temporary dismissal
.0 =etermination of necessity of earin! or +larificatory +onference Section 5. =etermination of Necessity of earin! or +larificatory +onference. * Immediately after the s#mission y the parties of their position paper or reply" as the case may e" the Laor Ariter shall" #o"u $ro$rio" determine &hether there is a need for a hearin! or clarificatory conference. At this sta!e" he may" at his discretion and for the p#rpose of ma'in! s#ch determination" as' clarificatory (#estions to f#rther elicit facts or information" incl#din! #t not limited to the s#poena of relevant doc#mentary evidence" if any" from any party or &itness.

'. -OTION TO DIS-ISS Section . 2otion to =ismiss. * On or efore the date set for the mandatory conciliation and mediation conference" the respondent may file a motion to dismiss. Any motion to dismiss on the !ro#nd of lac' of %#risdiction" improper ven#e" or that the ca#se of action is arred y prior %#d!ment" prescription" or for#m shoppin!" shall e immediately resolved y the Laor Ariter thro#!h a &ritten order. An order denyin! the motion to dismiss" or s#spendin! its resol#tion #ntil the final determination of the case" is not appealale.

-.0 Mo"u $ro$rio =ismissal of +omplaint ased on Crescription -.3 Re )udica"a as Reason to =ismiss +omplaint or a prior %#d!ment to constit#te a ar to a s#se(#ent case" the follo&in! re(#isites m#st conc#r: ,a6 it m#st e a final %#d!ment or order$ ,6 the co#rt renderin! the same m#st have %#risdiction over the s#%ect matter and over the parties$ ,c6 it m#st e a %#d!ment or order on the merits" and ,d6

.3 Role of the Laor Ariter in hearin! and clarificatory conference** Section 4. Role of the Laor Ariter in earin! and +larificatory +onference. * a6 The Laor Ariter shall ta'e f#ll control and personally cond#ct the hearin! or clarificatory conference. Hnless other&ise provided y la&" the Laor Ariter shall determine the order of presentation of evidence y the parties" s#%ect to the re(#irements of d#e process. e shall e)amine the parties and their &itnesses &ith respect to the matters at iss#e$ and as' (#estions only for the p#rpose of clarifyin! points of la& or fact involved in the case. e shall limit the presentation of evidence to matters relevant to the iss#e efore him and necessary for a %#st and speedy disposition of the case. 6 In the cross*e)amination of &itnesses" only relevant" pertinent and material (#estions necessary to enli!hten the Laor Ariter shall e allo&ed. c6 The Laor Ariter shall ma'e a &ritten s#mmary of the proceedin!s" incl#din! the s#stance of the evidence presented" in cons#ltation &ith the parties. The &ritten


0/ D C L A T O N

s#mmary shall e si!ned y the parties and shall form part of the records.

.- Non*appearance of Carties$ Costponement of earin! and +larificatory +onferences. Section 0?. Non*Appearance of Carties" and Costponement of earin!s and +larificatory +onferences. * a6 Non*appearance at a hearin! or clarificatory conference y the complainant or petitioner" &ho &as d#ly notified thereof" may e s#fficient ca#se to dismiss the case &itho#t pre%#dice. S#%ect to Section 0 of this R#le" &here proper %#stification is sho&n y proper motion to &arrant the re*openin! of the case" the Laor Ariter shall call another hearin! or clarificatory conference and contin#e the proceedin!s #ntil the case is finally decided. The dismissal of the case for the second time d#e to the #n%#stified non*appearance of the complainant or petitioner" &ho &as d#ly notified of the clarificatory hearin!" shall e &ith pre%#dice. 6 In case the respondent fails to appear d#rin! the hearin! or clarificatory conference despite d#e notice thereof" the complainant shall e allo&ed to present evidence e)*parte" &itho#t pre%#dice to cross*e)amination at the ne)t hearin! or conference. T&o ,36 s#ccessive non*appearances y the respondent d#rin! his sched#led presentation of evidence or opport#nity to cross*e)amine &itnesses" despite d#e notice thereof" shall e constr#ed as a &aiver on his part to present evidence or cond#ct cross*e)amination. c6 The parties and their co#nsels appearin! efore the Laor Ariter shall e prepared for contin#o#s hearin! or clarificatory conference. No postponement or contin#ance shall e allo&ed y the Laor Ariter" e)cept #pon meritorio#s !ro#nds and s#%ect al&ays to the re(#irement of e)peditio#s disposition of cases. In any case" the hearin! or clarificatory conference shall e terminated &ithin ninety ,4?6 calendar days from the date of the initial hearin! or conference. d6 Cara!raph ,c6 of this Section not&ithstandin!" in cases involvin! overseas ilipino &or'ers" the a!!re!ate period for cond#ctin! the mandatory conciliation and mediation conference" incl#din! hearin! on the merits or clarificatory conference" shall not e)ceed si)ty ,?6 days" &hich shall e rec'oned from the date of ac(#isition of %#risdiction y the Laor Ariter over the person of the respondents.

0. S/B-ISSION OF T(E CASE FOR D ECISION

1.0 Cosition Capers as Basis of =ecision The affidavits in s#ch case may ta'e the place of their direct testimony. The laor ariter may choose" if he deems it necessary" to set the case for hearin! on the merits &here &itnesses may e presented and e)amined y the parties. In oth instances" the #rden of provin! that the termination &as for valid or a#thorized ca#se rests on the employer. 1.3 Lac' of erification" Not atal

LABOR RELATIONS The lac' of verification of the position paper*affidavit is a formal" rather than a s#stantial" defect. It is not fatal. It co#ld e easily corrected y re(#irin! an oath. 1.- =#e Crocess: Opport#nity to Be eard The simple meanin! of proced#ral d#e process is that a party to a case m#st e !iven s#fficient opport#nity to e heard. Its very essence is to allo& all parties opport#nity to present evidence. A formal or trial*type hearin! is not at all times and in all instances essential to d#e process" the re(#irements of &hich are satisfied &here parties are afforded fair and reasonale opport#nity to e)plain their side of the controversy at hand. 1. Inhiition Section 03. Inhiition. * A Laor Ariter may vol#ntarily inhiit himself from the resol#tion of a case and shall so state in &ritin! the le!al %#stifications therefor. Hpon motion of a party" either on the !ro#nd of relationship &ithin the fo#rth civil de!ree of consan!#inity or affinity &ith the adverse party or co#nsel" or on (#estion of impartiality" the Laor Ariter may inhiit himself from f#rther hearin! and decidin! the case. S#ch motion shall e resolved &ithin five ,16 days from the filin! thereof. An order denyin! or !rantin! a motion for inhiition is inappealale.

1.1 =#e Crocess Incl#des Impartiality of the Appeal Body In addition" administrative d#e process incl#des ,a6 the ri!ht to notice" e it act#al or constr#ctive" of the instit#tion of the proceedin!s that may affect a personPs le!al ri!ht$ ,6 reasonale opport#nity to appear and defend his ri!hts and to introd#ce &itnesses and relevant evidence in his favor$ ,c6 a tri#nal so constit#ted as to !ive him reasonale ass#rance of honesty and impartiality" and one of competent %#risdiction$ and ,d6 a findin! or decision y that tri#nal s#pported y s#stantial evidence presented at the hearin! or at least ascertained in the records or disclosed to the parties. It is self*evident from the r#lin! case la& that the officer &ho revie&s a case on appeal sho#ld not e the same person &hose decision is the s#%ect of revie&. Th#s" &e have r#led that Fthe revie&in! officer m#st perforce e other than the officer &hose decision is #nder revie&. 5. S/SPENSION OF PROCEEDIN%S

To allo& laor cases to proceed &o#ld clearly defeat the p#rpose of the a#tomatic stay and severely


05 D C L A T O N

enc#mer the mana!ement committees time and reso#rces. +. FILIN% AND SERVICE OF PLEADIN%S AND DECISIONS Section 1. ilin! and Service of Cleadin!s. * All pleadin!s in connection &ith the case shall e filed &ith the appropriate doc'etin! #nit of the Re!ional Aritration Branch or the +ommission" as the case maye. The party filin! the pleadin!s shall serve the opposin! parties &ith a copy thereof and its s#pportin! doc#ments in the manner provided for in these R#les &ith proof of service thereof.

LABOR RELATIONS Section " R#le 0- of the R#les of +o#rt &hich is s#ppletory to the r#les of the NLR+" provides as follo&s: Section . Cersonal S ervice. < S ervice o f the papers may e made y deliverin! personally a copy to the party or his attorney" or y leavin! it in his office &ith his cler' or &ith a person havin! char!e thereof. If no person is fo#nd in his office" or his office is not 'no&n" then y leavin! the copy" et&een the ho#rs of ei!ht in the mornin! and si) in the evenin!" at the partyPs or attorneyPs residence" if 'no&n" &ith a person of s#fficient discretion to receive the same.

*. RESOL/TION EVIDENCE

OF

DO/BT

IN

LA#

OR

/.0 Service of Notice and Resol#tions Section . Service of Notices and Resol#tions. * a6 Notices or s#mmons and copies of orders" shall e served on the parties to the case personally y the Bailiff or d#ly a#thorized p#lic officer &ithin three ,-6 days from receipt thereof or y re!istered mail$ Crovided that in special circ#mstances" service of s#mmons may e effected in accordance &ith the pertinent provisions of the R#les of +o#rt$ Crovided f#rther" that in cases of decisions and final a&ards" copies thereof shall e served on oth parties and their co#nsel or representative y re!istered mail$ Crovided f#rther that in cases &here a party to a case or his co#nsel on record personally see's service of the decision #pon in(#iry thereon" service to said party shall e deemed effected #pon act#al receipt thereof$ Crovided finally" that &here parties are so n#mero#s" service shall e made on co#nsel and #pon s#ch n#mer of complainants" as may e practicale" &hich shall e considered s#stantial compliance &ith Article 33 ,a6 of the Laor +ode" as amended. or p#rposes of appeal" the period shall e co#nted from receipt of s#ch decisions" resol#tions" or orders y the co#nsel or representative of record. 6 The Bailiff or officer servin! the notice" order" resol#tion or decision shall s#mit his ret#rn &ithin t&o ,36 days from date of service thereof" statin! le!ily in his ret#rn his name" the names of the persons served and the date of receipt" &hich ret#rn shall e immediately attached and shall form part of the records of the case. In case of service y re!istered mail" the Bailiff or officer shall &rite in the ret#rn" the names of persons served and the date of mailin! of the resol#tion or decision. If no service &as effected" the service officer shall state the reason therefor in the ret#rn.

/.3 Croof and +ompleteness of Service Section /. Croof and +ompleteness of Service. * The ret#rn is prima facie proof of the facts indicated therein. Service y re!istered mail is complete #pon receipt y the addressee or his a!ent$ #t if the addressee fails to claim his mail from the post office &ithin five ,16 days from the date of first notice of the postmaster" service shall ta'e effect after s#ch time.

It is no& a familiar r#le that do#t as to the interpretation of laor la&s and re!#lations has to e resolved in favor of laor. This precept is etched in the Laor +ode ,Art. 6 and" in similar tenor" the +ivil +ode ,Art. 0/?36. B#t this precept is not limited to interpretation of le!al provisions. It e)tends li'e&ise to do#ts ao#t the evidence of the disp#tants. 6. DECISION OF LABOR ARBITER Section 0-. Ceriod to =ecide +ase. * The Laor Ariter shall render his decision &ithin thirty ,-?6 calendar days" &itho#t e)tension" after the s#mission of the case y the parties for decision" even in the asence of steno!raphic notes$ Crovided ho&ever" that cases involvin! overseas ilipino &or'ers shall e decided &ithin ninety ,4?6 calendar days after the filin! of the complaint &hich shall commence to r#n #pon ac(#isition y the Laor Ariter of %#risdiction over the respondents.

4.0 +ontents of =ecisions Section 0. +ontents of =ecisions. * The decisions and orders of the Laor Ariter shall e clear and concise and shall incl#de a rief statement of the: a6 facts of the case$ 6 iss#es involved$ c6 applicale la&s or r#les$ d6 concl#sions and the reasons therefor$ and e6 specific remedy or relief !ranted. In cases involvin! monetary a&ards" the decisions or orders of the Laor Ariter shall contain the amo#nt a&arded. In case the decision of the Laor Ariter incl#des an order of reinstatement" it shall li'e&ise contain: a6 a statement that the reinstatement aspect is immediately e)ec#tory$ and 6 a directive for the employer to s#mit a report of compliance &ithin ten ,0?6 calendar days from receipt of the said decision.

4.3 No 2otions for Reconsideration and Cetition for Relief from @#d!ment Section 01. 2otions for Reconsideration and Cetitions for Relief from @#d!ment. * No motions for reconsideration or petitions for relief from %#d!ment of any decision"


04 D C L A T O N

LABOR RELATIONS resol#tion or order of a Laor Ariter shall e allo&ed.o&ever" &hen one s#ch motion for reconsideration is filed" it shall e treated as an appeal provided that it complies &ith the re(#irements for perfectin! an appeal.In the case of a petition for relief from %#d!ment" the Laor Ariter shall elevate the case to the +ommission for disposition.

77777777 Art. 333. Appearances and ees. a. Non*la&yers may appear efore the +ommission or any Laor Ariter only: 0. If they represent themselves$ or 3. If they represent their or!anization or memers thereof. . No attorneys fees" ne!otiation fees or similar char!es of any 'ind arisin! from any collective ar!ainin! a!reement shall e imposed on any individ#al memer of the contractin! #nion: Crovided" o&ever" that attorneys fees may e char!ed a!ainst #nion f#nds in an amo#nt to e a!reed #pon y the parties. Any contract" a!reement or arran!ement of any sort to the contrary shall e n#ll and void. ,As amended y Cresidential =ecree No. 040" 2ay 0" 045?6 77777777 1. APPEARANCE OF NONLA#YERS Section 5. Appearances. * 6 A non*la&yer may appear as co#nsel in any of the proceedin!s efore the Laor Ariter or +ommission only #nder the follo&in! conditions: ,06 he represents himself as party to the case$ ,36 he represents a le!itimate laor or!anization" as defined #nder Article 303 and 33 of the Laor +ode" as amended" &hich is a party to the case: Crovided" that he presents: ,i6 a certification from the B#rea# of Laor Relations ,BLR6 or Re!ional Office of the =epartment of Laor and Employment attestin! that the or!anization he represents is d#ly re!istered and listed in the roster of le!itimate laor or!anizations$ ,ii6 a verified certification iss#ed y the secretary and attested to y the president of the said or!anization statin! that he is a#thorized to represent the said or!anization in the said case$ and ,iii6 a copy of the resol#tion of the oard of directors of the said or!anization !rantin! him s#ch a#thority$ ,-6 he represents a memer or memers of a le!itimate laor or!anization that is e)istin! &ithin the employerPs estalishment" &ho are parties to the case: Crovided" that he presents: ,i6 a verified certification attestin! that he is a#thorized y s#ch memer or memers to represent them in the case$ and ,ii6 a verified certification iss#ed y the secretary and attested to y the president of the said or!anization statin! that the person or persons he is representin! are memers of their or!anization &hich is e)istin! in the employerPs estalishment$

,6 he is a d#ly*accredited memer of any le!al aid office reco!nized y the =epartment of @#stice or Inte!rated Bar of the Chilippines: Crovided" that he ,i6 presents proof of his accreditation$ and ,ii6 represents a party to the case$ ,16 he is the o&ner or president of a corporation or estalishment &hich is a party to the case: Crovided" that he presents: ,i6 a verified certification attestin! that he is a#thorized to represent said corporation or estalishment$ and ,ii6 a copy of the resol#tion of the oard of directors of said corporation" or other similar resol#tion or instr#ment iss#ed y said estalishment" !rantin! him s#ch a#thority.

2. C(AN%E OF LA#YER

No s#stit#tion of attorneys &ill e allo&ed #nless the follo&in! re(#isites conc#r: 06 there m#st e filed a &ritten application for s#stit#tion$ 36 there m#st e filed the &ritten consent of the client to the s#stit#tion$ -6 there m#st e filed the &ritten consent of the attorney to e s#stit#ted" if s#ch consent can e otained$ 6 in case s#ch &ritten consent cannot e proc#red" there m#st e filed &ith the application for s#stit#tion" proof of the service of notice of s#ch motion in the manner re(#ired y the r#les" on the attorney to e s#stit#ted. '. A/T(ORITY TO BIND PARTY Section 4. A#thority to Bind Carty. * Attorneys and other representatives of parties shall have a#thority to ind their clients in all matters of proced#re$ #t they cannot" &itho#t a special po&er of attorney or e)press consent" enter into a compromise a!reement &ith the opposin! party in f#ll or partial dischar!e of a clientPs claim.

). ATTORNEY$S FEE

The p#rpose of the provision is to prevent imposition on the &or'ers of the d#ty to individ#ally contri#te their respective shares in the fee to e paid the attorney for his services on ehalf of the #nion in its ne!otiations &ith the mana!ement. The oli!ation to pay the attorneyPs fees elon!s to the #nion and cannot e sh#nted to the &or'ers as their direct responsiility. .0 Ne!otiation ee The 0?1 ne!otiation fee &hich covers attorneys fees" a!ency fee" and the li'e is ased on the amo#nt of ac'&a!es receivale #nder the +BA &hich is eyond &hat the la& !rants.


3? D C L A T O N

.3 or Services Rendered y Hnion Officers Article 333 ,6 prohiits attorneyPs fees" ne!otiations fees and similar char!es arisin! o#t of the concl#sion of a collective ar!ainin! a!reement from ein! imposed on any individ#al #nion memer. The collection of the special assessment partly for the payment for services rendered y #nion officers" cons#ltants and others may not e in the cate!ory of FattorneyPs fees or ne!otiations fees.F B#t there is no (#estion that it is an e)action &hich falls &ithin the cate!ory of a Fsimilar char!e"F and" therefore" &ithin the covera!e of the prohiition in the aforementioned article. 77777777 Chapter III APPEAL

Art. 33-. Appeal. =ecisions" a&ards" or orders of the Laor Ariter are final and e)ec#tory #nless appealed to the +ommission y any or oth parties &ithin ten ,0?6 calendar days from receipt of s#ch decisions" a&ards" or orders. S#ch appeal may e entertained only on any of the follo&in! !ro#nds: a. If there is prima facie evidence of a#se of discretion on the part of the Laor Ariter$ . If the decision" order or a&ard &as sec#red thro#!h fra#d or coercion" incl#din! !raft and corr#ption$ c. If made p#rely on (#estions of la&$ and d. If serio#s errors in the findin!s of facts are raised &hich &o#ld ca#se !rave or irreparale dama!e or in%#ry to the appellant. In case of a %#d!ment involvin! a monetary a&ard" an appeal y the employer may e perfected only #pon the postin! of a cash or s#rety ond iss#ed y a rep#tale ondin! company d#ly accredited y the +ommission in the amo#nt e(#ivalent to the monetary a&ard in the %#d!ment appealed from. In any event" the decision of the Laor Ariter reinstatin! a dismissed or separated employee" insofar as the reinstatement aspect is concerned" shall immediately e e)ec#tory" even pendin! appeal. The employee shall either e admitted ac' to &or' #nder the same terms and conditions prevailin! prior to his dismissal or separation or" at the option of the employer" merely reinstated in the payroll. The postin! of a ond y the employer shall not stay the e)ec#tion for reinstatement provided herein.

LABOR RELATIONS reasonale penalty" incl#din! fines or cens#res" #pon the errin! parties. In all cases" the appellant shall f#rnish a copy of the memorand#m of appeal to the other party &ho shall file an ans&er not later than ten ,0?6 calendar days from receipt thereof. The +ommission shall decide all cases &ithin t&enty ,3?6 calendar days from receipt of the ans&er of the appellee. The decision of the +ommission shall e final and e)ec#tory after ten ,0?6 calendar days from receipt thereof y the parties. Any la& enforcement a!ency may e dep#tized y the Secretary of Laor and Employment or the +ommission in the enforcement of decisions" a&ards or orders. ,As amended y Section 03" Rep#lic Act No. /01" 2arch 30" 04546 77777777 1. NO -OTION FOR RECONSIDERATION OF LABOR ARBITER$S DECISION

If any !ro#nds mentioned in this Article e)ists" the losin! party may appeal the Laor Ariters decision to the NLR+ &ithin ten ,0?6 days from receipt of the decision. 0.0 inal =ecision +annot Be Amended If not appealed on time" the Laor Ariters decision ecomes final and cannot e amended. The perfection of an appeal &ithin the stat#tory or re!lementary period is not only mandatory #t also %#risdictional and fail#re to do so renders the (#estioned decision final and e)ec#tor" th#s deprivin! the appellate co#rt of %#risdiction to alter the final %#d!ment" m#ch less entertain the appeal. 2. PERIOD TO APPEAL FRO- LABOR ARBITER

3.0 Ten +alendar =ays A period of ten ,0?6 days from receipt of any order is !ranted to either or to oth parties involved to appeal to the National Laor Relations +ommission. After mat#re and caref#l delieration" ;e have arrived at the concl#sion that the shortened period of ten ,0?6 days fi)ed y Article 33- contemplates calendar days and not &or'in! days. ;e are pers#aded to this concl#sion" if only eca#se ;e elieve that it is precisely in the interest of laor that the la& has commanded that laor cases e promptly" if not peremptorily" dispose of.

To disco#ra!e frivolo#s or dilatory appeals" the +ommission or the Laor Ariter shall impose Az#cena" +esario Alvero @r. ,3??/6. THE LABOR CODE WITH COMMENTS AND CASES ,ol. II6 . #ezon +ity: Re) Crintin! +ompany" Inc.

30 D C L A T O N

LABOR RELATIONS This +o#rt reiterates the doctrine en#nciated in said case that the 0?*day period provided in Art. 33- of the Laor +ode refers to 0? calendar days and not 0? &or'in! days. This means that Sat#rdays" S#ndays and Le!al olidays are not to e e)cl#ded" #t incl#ded" in co#ntin! the 0?*day period. This is in line &ith the o%ective of the la& for speedy disposition of laor cases &ith the end in vie& of protectin! the interests of the &or'in! man.

'. %RO/NDS OF APPEAL

3.3 Ten*+alendar*=ay R#le Not Applicale Crior to ir*@en +ase

c6 If made p#rely on (#estions of la&$ andGor

3.- Hnder the 3??1 NLR+ R#les of Croced#re Section 0. Ceriods of Appeal. * =ecisions" resol#tions or orders of the Laor Ariter shall e final and e)ec#tory #nless appealed to the +ommission y any or oth parties &ithin ten ,0?6 calendar days from receipt thereof$ and in case of decisions" resol#tions or orders of the Re!ional =irector of the =epartment of Laor and Employment p#rs#ant to Article 034 of the Laor +ode" &ithin five ,16 calendar days from receipt thereof. If the 0?th or 1th day" as the case may e" falls on a Sat#rday" S#nday or holiday" the last day to perfect the appeal shall e the first &or'in! day follo&in! s#ch Sat#rday" S#nday or holiday.

3. =ate of Receipt y 2ail The r#le is that service y re!istered mail is complete either #pon act#al receipt y the addressee or at the end of five ,16 days" if he does not claim it &ithin five ,16 days from the first notice of the postmaster. ,R#le 0-" Q56 The p#rpose is to place the date of receipt of pleadin!s" %#d!ments and processes eyond the po&er of the party ein! served to determine at his pleas#re. 3.1 ail#re to >ive +opy of Appeal to Adverse Carty ;ithin Ten =ays The fail#re to !ive copy of appeal to the appellee &ithin ten ,0?6 days is not fatal if the appellee &as not pre%#diced y the delay in the service of said copy of appeal. 3. No E)tension of Ceriod Section 0. Ceriods of Appeal. * No motion or re(#est for e)tension of the period &ithin &hich to perfect an appeal shall e allo&ed.

3./ Ceriods >enerally 2andatory S#ch periods are imposed &ith a vie& to prevent needless delays and to ens#re the orderly and speedy dischar!e of %#dicial #siness. Strict compliance &ith s#ch r#le is oth mandatory and imperative.

Section 3. >ro#nds. * The appeal may e entertained only on any of the follo&in! !ro#nds: a6 If there is prima facie evidence of a#se of discretion on the part of the Laor Ariter or Re!ional =irector$ 6 If the decision" resol#tion or order &as sec#red thro#!h fra#d or coercion" incl#din! !raft and corr#ption$

d6 If serio#s errors in the findin!s of facts are raised &hich" if not corrected" &o#ld ca#se !rave or irreparale dama!e or in%#ry to the appellant.

). #(ERE TO FILE APPEAL Section -. ;here iled. * The appeal shall e filed &ith the Re!ional Aritration Branch or Re!ional Office &here the case &as heard and decided.

0. RE/ISITES FOR PERFECTION OF APPEAL Section . re(#isites or Cerfection Of Appeal. * a6 The appeal shall e: 06 filed &ithin the re!lementary period provided in Section 0 of this R#le$ 36 verified y the appellant himself in accordance &ith Section " R#le / of the R#les of +o#rt" as amended$ -6 in the form of a memorand#m of appeal &hich shall state the !ro#nds relied #pon and the ar!#ments in s#pport thereof" the relief prayed for" and &ith a statement of the date the appellant received the appealed decision" resol#tion or order$ 6 in three ,-6 le!ily type&ritten or printed copies$ and 16 accompanied y i6 proof of payment of the re(#ired appeal fee$ ii6 postin! of a cash or s#rety ond as provided in Section  of this R#le$ iii6 a certificate of non*for#m shoppin!$ and iv6 proof of service #pon the other parties. 6 A mere notice of appeal &itho#t complyin! &ith the other re(#isites aforestated shall not stop the r#nnin! of the period for perfectin! an appeal. c6 The appellee may file &ith the Re!ional Aritration Branch or Re!ional Office &here the appeal &as filed" his ans&er or reply to appellantPs memorand#m of appeal" not later than ten ,0?6 calendar days from receipt thereof. ail#re on the part of the appellee &ho &as properly f#rnished &ith a copy of the appeal to file his ans&er or reply &ithin the said period may e constr#ed as a &aiver on his part to file the same. d6 S#%ect to the provisions of Article 305 of the Laor +ode" once the appeal is perfected in accordance &ith these R#les" the +ommission shall limit itself to revie&in! and decidin! only the specific iss#es that &ere elevated on appeal.

5. FRIVOLO/S APPEAL

Section 00" R#le I of the NLR+ R#les of Croced#re empo&ers not only the +ommission #t also the Laor Ariter to impose reasonale penalties"


33 D C L A T O N

LABOR RELATIONS incl#din! fines and cens#res" #pon a party for filin! a frivolo#s appeal. This implies that even &hen the appeal is still &ith the Laor*Ariter" and not yet transmitted to the +ommission" the former may already find it frivolo#s and" there and then" terminate that appeal. .0 Hnverified Letter Not Croper Appeal +. PAY-ENT OF APPEAT FEES Section 1. Appeal ee. * The appellant shall pay an appeal fee of One #ndred ifty Cesos ,C01?.??6 to the Re!ional Aritration Branch or Re!ional Office of ori!in" and the official receipt of s#ch payment shall form part of the records of the case.

The fail#re to pay the appeal doc'etin! fee confers a directory and not a mandatory po&er to dismiss an appeal" and s#ch po&er m#st e e)ercised &ith a so#nd discretion and &ith a !reat deal of circ#mspection considerin! all attendant circ#mstances. *. APPEAL E8CEPTIONS

BOND;

FILIN%

ON

TI-E;

Section . Bond. * In case the decision of the Laor Ariter or the Re!ional =irector involves a monetary a&ard" an appeal y the employer may e perfected only #pon the postin! of a ond" &hich shall either e in the form of cash deposit or s#rety ond e(#ivalent in amo#nt to the monetary a&ard" e)cl#sive of dama!es and attorneyPs fees. In case of s#rety ond" the same shall e iss#ed y a rep#tale ondin! company d#ly accredited y the +ommission or the S#preme +o#rt" and shall e accompanied y ori!inal or certified tr#e copies of the follo&in!: a6 a %oint declaration #nder oath y the employer" his co#nsel" and the ondin! company" attestin! that the ond posted is !en#ine" and shall e in effect #ntil final disposition of the case. 6 an indemnity a!reement et&een the employer* appellant and ondin! company$ c6 proof of sec#rity deposit or collateral sec#rin! the ond: provided" that a chec' shall not e considered as an acceptale sec#rity$ d6 a certificate +ommission$

of

a#thority

from

the

Ins#rance

e6 certificate of re!istration from the Sec#rities and E)chan!e +ommission$ f6 certificate of a#thority to transact s#rety #siness from the Office of the Cresident$

!6 certificate of accreditation and a#thority from the S#preme +o#rt$ and h6 notarized oard resol#tion or secretaryPs certificate from the ondin! company sho&in! its a#thorized si!natories and their specimen si!nat#res. A cash or s#rety ond shall e valid and effective from the date of deposit or postin!" #ntil the case is finally decided" resolved or terminated" or the a&ard satisfied.This condition shall e deemed incorporated in the terms and conditions of the s#rety ond" and shall e indin! on the appellants and the ondin! company. The appellant shall f#rnish the appellee &ith a certified tr#e copy of the said s#rety ond &ith all the aove* mentioned s#pportin! doc#ments.The appellee shall verify the re!#larity and !en#ineness thereof and immediately report any irre!#larity to the +ommission. Hpon verification y the +ommission that the ond is irre!#lar or not !en#ine" the +ommission shall ca#se the immediate dismissal of the appeal" and cens#re or cite in contempt the responsile parties and their co#nsels" or s#%ect them to reasonale fine or penalty. No motion to red#ce ond shall e entertained e)cept on meritorio#s !ro#nds" and only #pon the postin! of a ond in a reasonale amo#nt in relation to the monetary a&ard. The mere filin! of a motion to red#ce ond &itho#t complyin! &ith the re(#isites in the precedin! para!raphs shall not stop the r#nnin! of the period to perfect an appeal.

The ond is ine *ua non to the perfection of appeal from the laor ariters monetary a&ard. 5.0 2otion to Red#ce Bond #nder NLR+ R#les A motion to red#ce the amo#nt of the ond may e entertained" #t" meantime" a ond in reasonale amo#nt m#st e filed any&ay. 5.3 No Bond" No Appeal Cerfected The la&ma'ers intended the postin! of a cash or s#rety ond y the employer to e the e)cl#sive means y &hich an employers appeal may e considered completed. 5.3a Rela)in! the Ten*day Ceriod 5.- No =istinction Bet&een 8ilin!9 and 8Cerfection9 of Appeal$ Star An!el =ecision" Not 8enerale9 5. Amo#nt of Appeal Bond E)cl#des =ama!es An appeal is deemed perfected #pon the postin! of the ond e(#ivalent to the monetary a&ard exclui!e o% #oral and exe#$lar+ da#age a ,ell a a""orne+- %ee .


3- D C L A T O N

LABOR RELATIONS 5.1 Is Croperty Bond Acceptale ES.

0?.3 Effect of Cerfection of Appeal on E)ec#tion

5. S#persedeas Bond

Section 4. Effect of Cerfection of Appeal on E)ec#tion. * The perfection of an appeal shall stay the e)ec#tion of the decision of the Laor Ariter on appeal" e)cept e)ec#tion for reinstatement pendin! appeal.

S#stantial %#stice demands that it f#lfill its commitment to post the ond in order to stay e)ec#tion of the %#d!ment a!ainst it pendin! resol#tion of the appeal therefrom. This consideration cannot e o#t&ei!hed y the claim that proced#ral errors &ere committed y the Laor Ariter. 6. RECORDS AND TRANS-ITTAL Section /. Records of +ase on Appeal. * The records of a case shall have a correspondin! inde) of its contents &hich shall incl#de the follo&in!: a6 the ori!inal copy of the complaint$ 6 other pleadin!s and motions$ c6 min#tes of the proceedin!s" notices" transcripts of steno!raphic notes" if any$ d6 decisions" orders" and resol#tions as &ell as proof of service thereof" if availale$ e6 the comp#tation of the a&ard$ f6 memorand#m of appeal and the reply or ans&er thereto" if any" and proof of service" if availale$ !6 official receipt of the appeal fee$ and h6 the appeal ond" if any. The records shall e chronolo!ically arran!ed and pa!ed prominently. Section 5. Transmittal Of Records Of +ase On Appeal. * ;ithin forty*ei!ht ,56 ho#rs after the filin! of the appeal" the records of the case shall e transmitted y the Re!ional Aritration Branch or office of ori!in to the +ommission.

17. EFFECT DECISION

OF

APPEAL

OF

ARBITER$S

Section 4. Cerfection Of Appeal$ Effect. * ;itho#t pre%#dice to immediate reinstatement pendin! appeal #nder Section  of R#le I" once an appeal is filed" the Laor Ariter loses %#risdiction over the case. All pleadin!s and motions pertainin! to the appealed case shall thereafter e addressed to and filed &ith the +ommission.

0?.0 E)ec#tion or Reinstatement Cendin! Appeal Section . E)ec#tion of Reinstatement Cendin! Appeal. * In case the decision incl#des an order of reinstatement" and the employer disoeys the directive #nder the second para!raph of Section 0 of R#le  or ref#ses to reinstate the dismissed employee" the Laor Ariter shall immediately iss#e &rit of e)ec#tion" even pendin! appeal" directin! the employer to immediately reinstate the dismissed employee either physically or in the payroll" and to pay the accr#ed salaries as a conse(#ence of s#ch reinstatement at the rate specified in the decision. The Sheriff shall serve the &rit of e)ec#tion #pon the employer or any other person re(#ired y la& to oey the same. If he disoeys the &rit" s#ch employer or person may e cited for contempt in accordance &ith R#le I.

11. FRIVOLO/S OR DILATORY APPEALS Section 0?. rivolo#s or =ilatory Appeals. * No appeal from an interloc#tory order shall e entertained.To disco#ra!e frivolo#s or dilatory appeals" incl#din! those ta'en from interloc#tory orders" the +ommission may cens#re or cite in contempt the errin! parties and their co#nsels" or s#%ect them to reasonale fine or penalty.

12. APPEALS FRO- DECISION OF OT(ER A%ENCIES Section 00. Appeals from =ecision of Other A!encies. * The R#les provided herein !overnin! appeals from the decisions or orders of Laor Ariters shall apply to appeals to the +ommission from decisions or orders of the other offices or a!encies appealale to the +ommission accordin! to la&.

1'. PROCEEDIN% BEFORE T(E CO--ISSION Section 3. +omposition and Internal #nctions of the +ommission En Banc and Its =ivisions. K 6 +ommission En Banc. * The +ommission shall sit en anc only for p#rposes of prom#l!atin! r#les and re!#lations !overnin! the hearin! and disposition of cases efore its =ivisions and Re!ional Aritration Branches" and for the form#lation of policies affectin! its administration and operations. It may" on temporary or emer!ency asis" allo& cases &ithin the %#risdiction of any =ivision to e heard y any other =ivision &hose doc'et allo&s the additional &or'load and s#ch transfer &ill not e)pose liti!ants to #nnecessary additional e)pense. c6 =ivisions. * Hnless other&ise provided y la&" the +ommission shall e)ercise its ad%#dicatory and all other po&ers" f#nctions and d#ties thro#!h its five ,16 =ivisions. Each =ivision shall consist of one memer from the p#lic sector &ho shall act as the Cresidin! +ommissioner and one memer each from the &or'ers and employers sectors" respectively. Section . +ommission En Banc Session" #or#m and ote. * c6 =ivision. * The presence of at least t&o ,36 +ommissioners of a =ivision shall constit#te a (#or#m. The conc#rrence of t&o ,36 +ommissioners of a =ivision shall e necessary for the prono#ncement of a %#d!ment or resol#tion. ;henever the re(#ired memership in a =ivision is not complete and the conc#rrence of t&o ,36 +ommissioners to arrive at a %#d!ment or resol#tion cannot e otained" the +hairman shall desi!nate s#ch n#mer of additional +ommissioners from the other =ivisions as may e necessary from the same sector.


3 D C L A T O N

LABOR RELATIONS d6 Role of +hairman in the =ivision. * The +hairman of the +ommission may convene and preside over the session of any =ivision to consider any case pendin! efore it and participate in its delierations" if in his %#d!ment" his presence therein &ill est serve the interests of laor %#stice. e shall not ho&ever" participate in the votin! y the =ivision" e)cept &hen he is actin! as Cresidin! +ommissioner of the =ivision in the asence of the re!#lar Cresidin! +ommissioner

0-.0 Iss#es on Appeal Section ,d6 R#le I of the NLR+ R#les of Croced#re" the +ommission shall" in cases of perfected appeals" limit itself to revie&in! those iss#es &hich &ere raised on appeal. 0-.3 Technical R#les Not Bindin! Section 0?. Technical R#les Not Bindin!. * The r#les of proced#re and evidence prevailin! in co#rts of la& and e(#ity shall not e controllin! and the +ommission shall #se every and all reasonale means to ascertain the facts in each case speedily and o%ectively" &itho#t re!ard to technicalities of la& or proced#re" all in the interest of d#e process. In any proceedin! efore the +ommission" the parties may e represented y le!al co#nsel #t it shall e the d#ty of the +hairman" any Cresidin! +ommissioner or +ommissioner to e)ercise complete control of the proceedin!s at all sta!es.

0-.3a Evidence S#mitted on Appeal to NLR+ The settled r#le is that the NLR+ is not precl#ded from receivin! evidence on appeal as technical r#les of evidence are not indin! in laor cases. In fact" laor officials are mandated y the Laor +ode to #se every and all reasonale means to ascertain the facts in each case speedily and o%ectively" &itho#t re!ard to technicalities of la& or proced#re" all in the interest of d#e process.

A certification to this effect si!ned y the Cresidin! +ommissioner of the =ivision shall e iss#ed and a copy thereof attached to the record of the case and served #pon the parties.

0-.1 =issentin! Opinion Section . =issentin! Opinion. * Sho#ld any memer of a =ivision indicate his intention to &rite a dissentin! opinion" he may file the same &ithin the period prescried for decidin! or resolvin! the appeal$ other&ise" s#ch &ritten dissentin! opinion shall not e considered part of the records of the case.

0-.1 Inhiition Section /. Inhiition. * No motion to inhiit the entire =ivision of the +ommission shall e entertained. o&ever" any +ommissioner may inhiit himself from the consideration and resol#tion of any case or matter efore the =ivision and shall so state in &ritin! the le!al or %#stifiale !ro#nds therefor. In the event that a memer inhiits himself" the case shall e raffled y the E)ec#tive +ler' or =ep#ty E)ec#tive +ler' to either of the t&o ,36 remainin! +ommissioners. In case t&o ,36 +ommissioners in a =ivision inhiit themselves in a case or matter efore it" the +hairman shall" as far as practicale" appoint t&o ,36 +ommissioners from other =ivisions representin! the sector of the +ommissioners &ho inhiited themselves.

1). FOR- OF DECISION3 RESOL/TION AND ORDER Section 0-. orm of =ecision" Resol#tion and Order. * The decision" resol#tion and order of the +ommission shall state clearly and distinctly the findin!s of f acts" iss#es" and concl#sions of la& on &hich it is ased" and the relief !ranted" if any. If the decision" resol#tion or order involves monetary a&ards" the same shall contain the specific amo#nt a&arded as of the date the decision is rendered.

Hnder Art. 33-" the +ommission shall decide ll cases &ithin t&enty calendar days from receipt of the ans&er of the appellee.

0-.- +onciliationG2ediation Section 00. +onciliation and 2ediation. * In the e)ercise of its e)cl#sive" ori!inal and appellate %#risdiction" the +ommission may e)ert all efforts to&ards the amicale settlement of a laor disp#te. The settlement of cases on appeal" to e valid and indin! et&een the parties" shall e made efore the +ommissioner or his a#thorized representative.

0-. +ons#ltation Section 1. +ons#ltation. * The concl#sions of a =ivision on any case or matter s#mitted to it for decision shall e reached in cons#ltation efore the case is assi!ned to a memer for the &ritin! of the opinion. It shall e mandatory for the =ivision to meet for the p#rpose of the cons#ltation ordained herein.

The decision of the +ommission shall e final and e)ec#tory after ten calendar days from receipt thereof y the parties. 0.0 Reasoned Reversal ;hile it is &ithin respondent +ommissionPs competence" as an appellate a!ency revie&in! decisions of Laor Ariters" to disa!ree &ith and set aside the latterPs findin!s" it stands to reason that it sho#ld state an acceptale ca#se therefor. It &o#ld other&ise e a &himsical" capricio#s" oppressive" illo!ical" #nreasonale e)ercise of (#asi*%#dicial prero!ative" s#%ect to invalidation y the e)traordinary &rit of cer"iorari .


31 D C L A T O N

0.3 E)tended 2eanin! of 8Appeal9 #nder Article 33-$ NLR+ 2ay Iss#e ;rit of Cer"iorari

LABOR RELATIONS 1*. APPEAL FRO- T(E NATIONAL LABOR RELATIONS CO--ISSION

10. FINALITY OF DECISION OF CO--ISSION AND ENTRY OF 4/D%-ENT

05.0 Revie& y Cer"iorari y the +o#rt of Appeals$ St. 2artin case

T(E

Section 0. inality Of =ecision Of The +ommission And Entry Of @#d!ment. * a6 inality of the =ecisions" Resol#tions or Orders of the +ommission. * E)cept as provided in Section 4 of R#le " the decisions" resol#tions or orders of the +ommission shall ecome final and e)ec#tory after ten ,0?6 calendar days from receipt thereof y the parties. 6 Entry of @#d!ment. * Hpon the e)piration of the ten ,0?6 calendar day period provided in para!raph ,a6 of this Section" the decision" resol#tion" or order shall e entered in a oo' of entries of %#d!ment. The E)ec#tive +ler' or =ep#ty E)ec#tive +ler' shall consider the decision" resol#tion or order as final and e)ec#tory after si)ty ,?6 calendar days from date of mailin! in the asence of ret#rn cards" certifications from the post office" or other proof of service to parties.

15. -OTION FOR RECONSIDERATION Section 01.2OTIONS OR RE+ONSI=ERATION. * 2otion for reconsideration of any decision" resol#tion or order of the +ommission shall not e entertained e)cept &hen ased on palpale or patent errors$ provided that the motion is #nder oath and filed &ithin ten ,0?6 calendar days from receipt of decision" resol#tion or order" &ith proof of service that a copy of the same has een f#rnished" &ithin the re!lementary period" the adverse party$ and provided f#rther" that only one s#ch motion from the same party shall e entertained. Sho#ld a motion for reconsideration e entertained p#rs#ant to this section" the resol#tion shall e e)ec#tory after ten ,0?6 calendar days from receipt thereof.

The NLR+ R#les does not allo& a second motion for reconsideration. The NLR+ a#ses its discretion &hen it violates its o&n r#les y entertainin! s#ch a motion. A s#pplemental motion for reconsideration filed o#tside the 0?*day appeal period cannot e entertained. 0.0 Carty ;ho ailed to Appeal on Time rom =ecision of Laor Ariter 2ay Still ile 2otion for Reconsideration of NLR+ =ecision It is also an accepted post#late that iss#es not raised in the lo&er co#rt or the laor ariter may not e raised for the first time on appeal. 1+. CERTIFIED CASES

In a n#tshell" the St. 2artin precedent states: ,06 the &ay to revie& NLR+ decisions is thro#!h the special civil action of cer"iorari #nder R#le 1$ ,36 the %#risdiction over s#ch action elon!s to oth the S#preme +o#rt and the +o#rt of Appeals$ #t ,-6 in line &ith the doctrine n hierarchy of co#rts" the petition sho#ld e initially presented to the lo&er of the t&o co#rts" that is" the +o#rt of Appeals. 05.3 ;hen and ;here to ile Cetition Section . ;hen and &here p etition f iled. < T he petition shall e filed not later than si)ty ,?6 days from notice of the %#d!ment" order or resol#tion. In case a motion for reconsideration or ne& trial is timely filed" &hether s#ch motion is re(#ired or not" the si)ty ,?6 da y period shall e co#nted from notice of the denial of said motion. The petition shall e filed in the S#preme +o#rt or" if it relates to the acts or omissions of a lo&er co#rt or of a corporation" oard" officer or person" in the Re!ional Trial +o#rt e)ercisin! %#risdiction over the territorial area as defined y the S#preme +o#rt. It may also e filed in the +o#rt of Appeals &hether or not the same is in aid of its appellate %#risdiction" or in the Sandi!anayan if it is in aid of its appellate %#risdiction. If it involves the acts or omissions of a (#asi*%#dicial a!ency" #nless other&ise provided y la& or these R#les" the petition shall e filed in and co!nizale only y the +o#rt of Appeals. No e)tension of time to file the petition shall e !ranted e)cept for compellin! reason and in no case e)ceedin! fifteen ,016 days. ,a6 ,Bar 2atter No. 5?-" 30 @#ly 0445$ A.2. No. ??*3*?-*S+6

05.3a One =ay Late The ?*day period m#st caref#lly e oserved. Re!lementary periods are indispensale interdictions a!ainst needless delays. 05.3 +ertified Tr#e +opy of NLR+ =ecision N#mero#s decisions iss#ed y this +o#rt emphasize that in appeals #nder R#le 1 and in ori!inal civil actions for cer"iorari #nder R#le 1 in relation to R#les  and 1" &hat is re(#ired to e certified is the copy of the (#estioned %#d!ment" final order or resol#tion. Since the LAPs =ecision &as not the


3 D C L A T O N

(#estioned r#lin!" it did not have to e certified. ;hat had to e certified &as the NLR+ =ecision. 05.- Effect on NLR+s =ecision Section 0?. Effect of Cetition for Cer"iorari on E)ec#tion. * A petition for cer"iorari &ith the +o#rt of Appeals or the S#preme +o#rt shall not stay the e)ec#tion of the assailed decision #nless a restrainin! order is iss#ed y said co#rts.

05. Appeal to Laor Secretary Aolished Cresidential =ecree No. 0-40 amended Article 33and aolished appeals to the Secretary of Laor. 05.1 >ro#nds for Cer"iorari A party may seasonaly avail of the special civil action for cer"iorari " &here the tri#nal" oard or officer e)ercisin! %#dicial f#nctions has acted &itho#t or in e)cess of its %#risdiction" or &ith !rave a#se of discretion" and prayin! that %#d!ment e rendered ann#llin! or modifyin! the proceedin!s" as the la& re(#ires" of s#ch tri#nal" oard or officer. In spite of stat#tory provisions ma'in! final the decisions of certain administrative a!encies" the S#preme +o#rt or +o#rt of AppealsM #sin! the po&er of %#dicial revie&" has ta'en co!nizance of petitions (#estionin! the decisions &here &ant of %#risdiction" !rave a#se of discretion" violation of d#e process" denial of s#stantial %#stice" or erroneo#s interpretation of the la& &ere ro#!ht to its attention. The &rit of cer"iorari &ill iss#e to #ndo those acts" and do %#stice to the a!!rieved party. 05. 8>rave A#se of =iscretion9 By !rave a#se of discretion is meant capricio#s and &himsical e)ercise of %#d!ment as is e(#ivalent to lac' of %#risdiction. 2ere a#se of discretion is not eno#!h. It m#st e !rave a#se of discretion as &hen the po&er is e)ercised in an aritrary or despotic manner y reason of passion or personal hostility" and m#st e so patent and so !ross as to amo#nt to an evasion of a positive d#ty or to a virt#al ref#sal to perform the d#ty en%oined or to act at all in contemplation of la&. 05./ Sole Office of Cer"iorari The appellate co#rts %#risdiction to revie& a decision of the NLR+ in a petition for certiorari is confined to iss#es of %#risdiction or !rave a#se of discretion. An e)traordinary remedy" a petition for certiorari is availale only and restrictively in tr#ly e)ceptional cases. The sole office of the &rit of certiorari is the

LABOR RELATIONS correction of errors of %#risdiction incl#din! the commission of !rave a#se of discretion amo#ntin! to lac' or e)cess of %#risdiction. It does not incl#de correction of the NLR+s eval#ation of the evidence or of its fact#al findin!s. S#ch findin!s are !enerally accorded not only respect #t also finality. A party assailin! s#ch findin!s ears the #rden of sho&in! that the tri#nal acted capricio#sly and &himsically or in total disre!ard of evidence material to the controversy" in order that the e)traordinary &rit of certiorari &ill lie. 05.5 Appeal from OSE+ to +A$ St. 2artin R#lin! Applies Tho#!h appeals from the NLR+ to the Secretary of Laor &ere eliminated" presently there are several instances in the Laor +ode and its implementin! and related r#les &here an appeal can e filed &ith the Office of the Secretary of Laor or the Secretary of Laor iss#es a r#lin!" to &it: ,06 Hnder the R#les and Re!#lations >overnin! Recr#itment and Clacement A!encies for Local Employment 0 dated @#ne 1" 044/ s#persedin! certain provisions of Boo' I ,Cre*Employment6 of the implementin! r#les" the decision of the Re!ional =irector on complaints a!ainst a!encies is appealale to the Secretary of Laor &ithin ten ,0?6 &or'in! days from receipt of a copy of the order" on specified !ro#nds" &hose decision shall e final and inappealale. ,36 Art. 035 of the Laor +ode provides that an order iss#ed y the d#ly a#thorized representative of the Secretary of Laor in laor standards cases p#rs#ant to his visitorial and enforcement po&er #nder said article may e appealed to the Secretary of Laor. Sec. 3 in relation to Section - ,a6" R#le " Boo' III ,+onditions of Employment6 of the implementin! r#les !ives the Re!ional =irector the po&er to order and administer compliance &ith the laor standards provisions of the +ode and other laor le!islation. Section  !ives the Secretary the po&er to revie& the order of the Re!ional =irector" and the SecretaryPs decision shall e final and e)ec#tory. Sec. 0" R#le I ,Appeals6 of the R#les on the =isposition of Laor Standards +ases in the Re!ional Offices dated Septemer 0" 045/ 01 provides that the order of the Re!ional =irector in laor standards cases shall e final and e)ec#tory #nless appealed to the Secretary of Laor. Sec. 1" R#le  ,E)ec#tion6 provides that the decisions" orders or resol#tions of the Secretary of Laor and Employment shall ecome final and e)ec#tory after ten ,0?6 calendar days from receipt of the case records. The filin! of a petition for certiorari efore the S#preme +o#rt shall not stay the e)ec#tion of the order or decision #nless


3/ D C L A T O N

LABOR RELATIONS the a!!rieved party sec#res a temporary restrainin! order from the +o#rt &ithin fifteen ,016 calendar days from the date of finality of the order or decision or posts a s#persedeas ond. Sec.  of R#le I ,ealth and Safety +ases6 provides that the Secretary of Laor at his o&n initiative or #pon the re(#est of the employer andGor employee may revie& the order of the Re!ional =irector in occ#pational health and safety cases. The SecretaryPs order shall e final and e)ec#tory.

,36 Art. 3- provides that the decision of the Laor Relations =ivision in the re!ional office denyin! an applicant laor or!anization" association or !ro#p of #nions or &or'ersP application for re!istration may e appealed y the applicant #nion to the B#rea# of Laor Relations &ithin ten ,0?6 days from receipt of notice thereof. Sec. " R#le " Boo'  ,Laor Relations6" as amended y =epartment Order No. 4 dated 2ay 0" 044/ 0 provides that the decision of the Re!ional Office denyin! the application for re!istration of a &or'ers association &hose place of operation is confined to one re!ional %#risdiction" or the B#rea# of Laor Relations denyin! the re!istration of a federation" national or ind#stry #nion or trade #nion center may e appealed to the B#rea# or the Secretary as the case may e &ho shall decide the appeal &ithin t&enty ,3?6 calendar days from receipt of the records of the case.

,-6 Art. 3-5 provides that the certificate of re!istration of any le!itimate or!anization shall e canceled y the B#rea# of Laor Relations if it has reason to elieve" after d#e hearin!" that the said laor or!anization no lon!er meets one or more of the re(#irements prescried y la&. Sec. " R#le III" Boo'  provides that the decision of the Re!ional Office or the =irector of the B#rea# of Laor Relations may e appealed &ithin ten ,0?6 days from receipt thereof y the a!!rieved party to the =irector of the B#rea# or the Secretary of Laor" as the case may e" &hose decision shall e final and e)ec#tory.

,6 Art. 314 provides that any party to a certification election may appeal the order or res#lts of the election as determined y the 2ed*Ariter directly to the Secretary of Laor &ho shall decide the same &ithin fifteen ,016 calendar days.

Sec. 01" R#le II" Boo'  provides that the decision of the 2ed*Ariter on the res#lts of the certification election may e appealed to the Secretary &ithin ten ,0?6 days from receipt y the parties of a copy thereof" &hose decision shall e final and e)ec#tory. Sec. /" R#le III ,Administration of Trade Hnion #nds and Actions Arisin! Therefrom6" Boo'  provides that the decision of the B#rea# in complaints filed directly &ith said office pertainin! to administration of trade #nion f#nds may e appealed to the Secretary of Laor &ithin ten ,0?6 days from receipt of the parties of a copy thereof. Sec. 0" R#le I ,E)ec#tion of =ecisions" A&ards" or Orders6" Boo'  provides that the decision of the Secretary of Laor shall e final and e)ec#tory after ten ,0?6 calendar days from receipt thereof y the parties #nless other&ise specifically provided for in Boo' .

,16 Art. 3- provides that the Secretary of Laor shall decide or resolve the laor disp#te over &hich he ass#med %#risdiction &ithin thirty ,-?6 days from the date of the ass#mption of %#risdiction. is decision shall e final and e)ec#tory ten ,0?6 calendar days after receipt thereof y the parties. 05.4 E)ha#stion of Administrative Remedies$ 2otion for Reconsideration Re(#ired The remedy of an a!!rieved party in a decision or resol#tion of the Secretary of the =OLE is to timely file a motion for reconsideration as a precondition of or any f#rther or s#se(#ent remedy" and then seasonaly file a special civil action for cer"iorari #nder R#le 1 of the 044/ R#les of +ivil Croced#re. Cetitioners fail#re to file its motion for reconsideration seasonaly is fatal to its ca#se and in effect" renders final and e)ec#tor the Resol#tion of the Secretary of the =OLE. A petition for cer"iorari sho#ld e preceded y e)ha#stion of administrative remedies. ;hen an administrative remedy is provided y la&" relief m#st e so#!ht y first e)ha#stin! that remedy efore see'in! %#dicial intervention. ail#re to do so is fatal. 05.0? E)ceptions

Sec. 03" R#le I" Boo'  provides that the decision of the 2ed*Ariter on the petition for certification election may e appealed to the Secretary. Sec. 01" R#le I" Boo'  provides that the decision of the Secretary of Laor on an appeal from the 2ed*AriterPs decision on a petition for certification election shall e final and e)ec#tory. The implementation of the decision of the Secretary affirmin! the decision to cond#ct a certification election shall not e stayed #nless restrained y the appropriate co#rt.

It has een held that the re(#irement of a motion for reconsideration may e dispensed &ith in the follo&in! instances: ,06 &hen the iss#e raised is one p#rely of la&$ ,36 &here p#lic interest is involved$ ,-6 in cases of #r!ency$ and ,6 &here special circ#mstances &arrant immediate or more direct action. On the other hand" amon! the accepted e)ceptions to the r#le on e)ha#stion of administrative remedies are: ,06 &here the (#estion in disp#te is p#rely a le!al one$ and ,36 &here the


35 D C L A T O N

LABOR RELATIONS controverted act is patently ille!al or &as performed &itho#t %#risdiction or in e)cess of %#risdiction.

3?.3 =ismissal of Appeal

16. CERTIFICATION OF NONFOR/- S(OPPIN%

3?.- indin!s of acts >enerally inal

or#m shoppin! is the act or attempt to present the same disp#te to different ad%#dicators in the hope of sec#rin! a favo#rale r#lin!.

As a !eneral r#le" the findin!s of administrative a!encies are accorded not only respect #t even finality.

In relation thereto" R#le /" Section 1 of the R#les of +o#rt provides:

The doctrine that the findin!s of facts of the NLR+ are indin! on this +o#rt if s#pported y s#stantial evidence is &ell estalished. o&ever" in the same &ay that the findin!s of facts #ns#pported y s#stantial and credile evidence do not ind the S#preme +o#rt or +o#rt of AppealsM" neither &ill &e #phold erroneo#s concl#sions of the NLR+ &hen &e find that the latter committed !rave a#se of discretion in reversin! the decision of the laor ariter" especially if the findin!s of NLR+ ased on practically the same facts estalished in the hearin!s efore the ariter are spec#lative and con%ect#ral

+ertification a!ainst for#m shoppin!.
3?. E)ceptions: ,06 &hen the findin!s are !ro#nded entirely on spec#lation" s#rmises" or con%ect#res$ ,36 &hen the inference made is manifestly mista'en" as#rd" or impossile$ ,-6 &hen there is !rave a#se of discretion$

ail#re to comply &ith the fore!oin! re(#irements shall not e c#rale y mere amendment of the complaint or other initiatory pleadin! #t shall e ca#se for the dismissal of the case &itho#t pre%#dice" #nless other&ise provided" #pon motion and after hearin!. The s#mission of a false certification or non*compliance &ith any of the #nderta'in!s therein shall constit#te indirect contempt of co#rt" &itho#t pre%#dice to the correspondin! administrative and criminal actions. If the acts of the party or his co#nsel clearly constit#te &illf#l and delierate for#m shoppin!" the same shall e !ro#nd for s#mmary dismissal &ith pre%#dice and shall constit#te direct contempt" as &ell as a ca#se for administrative sanctions. 04.0 +ertification of Nonfor#m Shoppin! 2#st e 2ade y Cetitioner The certification m#st e made y petitioner himself and not y co#nsel since it is petitioner &ho is in the est position to 'no& &hether he has previo#sly commenced any similar action involvin! the same iss#es in any other tri#nal or a!ency. 27. DISPOSITION BY T(E CO/RT OF APPEALS

3?.0 Remand

,6 &hen the %#d!ment misapprehension of facts$

is

ased

on

a

,16 &hen the findin!s of facts are conflictin!$ ,6 &hen in ma'in! its findin!s" the +o#rt of Appeals &ent eyond the iss#es of the case" or its findin!s are contrary to the admissions of oth the appellant and the appellee$ ,/6 &hen the findin!s are contrary to the trial co#rt$ ,56 &hen the findin!s are concl#sions &itho#t citation of specific evidence on &hich they are ased$ ,46 &hen the facts set forth in the petition as &ell as in the petitionerPs main and reply riefs are not disp#ted y the respondent$ ,0?6 &hen the findin!s of fact are premised on the s#pposed asence of evidence and contradicted y the evidence on record$ and ,006 &hen the +o#rt of Appeals manifestly overloo'ed certain relevant facts not disp#ted y the parties" &hich" if properly considered" &o#ld %#stify a different concl#sion.


34 D C L A T O N

LABOR RELATIONS 6 any Re!ional =irector$ 3?.1 E)amples: Some indin!s of acts Reversed c6 the +ommission$ 21. FRO- CA TO SC ONLY /ESTION OF LA#3 R/LE )0

It m#st e filed &ithin fifteen ,016 days from notice of the %#d!ment or final order or resol#tion appealed from" or of the denial of the petitioners motion for ne& trial or reconsideration.

d6 the Laor Ariter$ e6the 2ed*Ariter$ f6 the ol#ntary Aritrator$ or !6 the Canel of Aritrators.

The special civil action of cer"iorari #nder R#le 1 cannot e #sed as a s#stit#te for an appeal #nder R#le 1 that the petitioner already lost. 77777777 Art. 33. E)ec#tion of decisions" orders or a&ards. a. The Secretary of Laor and Employment or any Re!ional =irector" the +ommission or any Laor Ariter" or 2ed*Ariter or ol#ntary Aritrator may" #o"u $ro$rio or on motion of any interested party" iss#e a &rit of e)ec#tion on a %#d!ment &ithin five ,16 years from the date it ecomes final and e)ec#tory" re(#irin! a sheriff or a d#ly dep#tized officer to e)ec#te or enforce final decisions" orders or a&ards of the Secretary of Laor and Employment or re!ional director" the +ommission" the Laor Ariter or med*ariter" or vol#ntary aritrators. In any case" it shall e the d#ty of the responsile officer to separately f#rnish immediately the co#nsels of record and the parties &ith copies of said decisions" orders or a&ards. ail#re to comply &ith the d#ty prescried herein shall s#%ect s#ch responsile officer to appropriate administrative sanctions. . The Secretary of Laor and Employment" and the +hairman of the +ommission may desi!nate special sheriffs and ta'e any meas#re #nder e)istin! la&s to ens#re compliance &ith their decisions" orders or a&ards and those of the Laor Ariters and vol#ntary aritrators" incl#din! the imposition of administrative fines &hich shall not e less than C1??.?? nor more than C0?"???.??. ,As amended y Section 0-" Rep#lic Act No. /01" 2arch 30" 04546 77777777 1. E8EC/TION

A &rit of 8E)ec#tion9 is an order to carry o#t" to implement" a final %#d!ment. Hnder Art. 33" a &rit of e)ec#tion may e iss#ed y the follo&in! officials for the final decisions" order or a&ards prom#l!ated y them: a6 Secretary of Laor and Employment$

The &rit of e)ec#tion on a %#d!ment may e iss#ed #o"u $ro$rio or on motion of any interested party &ithin five ,16 years from the date it ecomes final and e)ec#tory E)ec#tion is done thro#!h the re!#lar or special sheriff. B#t alternatively" the Secretary" the +ommission" any Laor Ariter" the Re!ional =irector or the =irector of the B#rea# of Laor Relations in appropriate cases may dep#tize the Chilippine National Colice or any la& enforcement a!encies in the enforcement of final a&ards" orders or decisions. 0.0 Article 33 is E)ec#tion" Not Appeal" Croced#re 0.3 Both Carty and +o#nsel Sho#ld Be Notified 2. E8EC/TION /PON FINALITY OF DECISION OR ORDER Section 0. E)ec#tion Hpon inality of =ecision or Order. * a6 A &rit of e)ec#tion may e iss#ed #o"u $ro$rio or on motion" #pon a decision or order that finally disposes of the action or proceedin!s after the parties and their co#nsels or a#thorized representatives are f#rnished &ith copies of the decision or order in accordance &ith these R#les" #t only after the e)piration of the period to appeal if no appeal has een filed" as sho&n y the certificate of finality. If an appeal has een filed" a &rit of e)ec#tion may e iss#ed &hen there is an entry of %#d!ment as provided for in Section 0 of R#le II. 6 No motion for e)ec#tion shall e entertained nor a &rit of e)ec#tion e iss#ed #nless the Laor Ariter or the +ommission is in possession of the records of the case &hich shall incl#de an entry of %#d!ment if the case &as appealed$ e)cept that" as provided for in Section 0 of R#le  and Section  of this R#le" and in those cases &here partial e)ec#tion is allo&ed y la&" the Laor Ariter shall retain d#plicate ori!inal copies of the decision to e implemented and proof of service thereof for the p#rpose of immediate enforcement. Section 3. Cre*E)ec#tion +onference. * ;ithin t&o ,36 &or'in! days from receipt of a motion for the iss#ance of a &rit of e)ec#tion" and s#%ect to Section 0" para!raph ,6 of this R#le" the Laor Ariter shall sched#le a pre* e)ec#tion conference or hearin! to thresh o#t matters


-? D C L A T O N

LABOR RELATIONS relevant to e)ec#tion" incl#din! the comp#tation of the a&ard. Section -. orm and +ontents of a ;rit of E)ec#tion. * The &rit of e)ec#tion m#st e iss#ed in the name of the Rep#lic of the Chilippines si!ned y the +ommission or Laor Ariter re(#irin! the Sheriff to e)ec#te the decision" order" or a&ard of the +ommission or Laor Ariter" and m#st contain the dispositive portion thereof" the amo#nt" if any" to e demanded" and all la&f#l fees to e collected from the losin! party or any other person re(#ired y la& to oey the same. Section . +omp#tation =#rin! E)ec#tion. * ;here f#rther comp#tation of the a&ard in the decision" resol#tion or order is necessary d#rin! the co#rse of the e)ec#tion proceedin!s" no &rit of e)ec#tion shall e iss#ed #ntil after the comp#tation has een approved y the Laor Ariter in an order iss#ed after the parties have een d#ly notified and heard on the matter. Section 1. E)ec#tion of 2onetary @#d!ment. * a6 Immediate payment on demand. * The Sheriff shall enforce a monetary %#d!ment y demandin! the immediate payment of the f#ll amo#nt stated in the &rit of e)ec#tion and all la&f#l fees from the losin! party or any other person re(#ired y la& to oey the same. 6 In the event of fail#re or ref#sal of the losin! party to pay the %#d!ment a&ard" the Sheriff shall immediately proceed a!ainst the cash deposit or s#rety ond posted y the losin! party" if any$ c6 If the ondin! company ref#ses to comply &ith the &rit of e)ec#tion" then its president and officers or a#thorized representatives shall e cited for contempt" and the ondin! company shall e arred from transactin! #siness &ith the +ommission$ d6 Sho#ld the cash deposit or s#rety ond e ins#fficient" or in case the s#rety ond cannot e proceeded a!ainst for any reason" the Sheriff shall" &ithin five ,16 days from demand" e)ec#te the monetary %#d!ment y levyin! on the property" personal and real" of the losin! party not e)empt from e)ec#tion" s#fficient to cover the %#d!ment a&ard" &hich may e disposed of for val#e at a p#lic a#ction to the hi!hest idder. e6 Croceeds of e)ec#tion shall e deposited &ith the +ashier of the concerned =ivision or Re!ional Aritration Branch" or &ith an a#thorized depositary an'. ;here payment is made in the form of a chec'" the same shall e payale to the +ommission. Section /. Enforcement of ;rit of E)ec#tion. * In e)ec#tin! a decision" resol#tion or order" the Sheriff" or other a#thorized officer actin! as Sheriff of the +ommission" shall e !#ided strictly y these R#les" and y the 2an#al on E)ec#tion of @#d!ment" &hich shall form part of these R#les. In the asence of applicale r#les" the R#les of +o#rt" as amended" shall e applied in a s#ppletory manner. Section 5. E)ec#tion By 2otion or By Independent Action. * A decision or order may e e)ec#ted on motion &ithin five ,16 years from the date it ecomes final and e)ec#tory.

After the lapse of s#ch period" the %#d!ment shall ecome dormant" and may only e enforced y an independent action &ithin a period of ten ,0?6 years from date of its finality. Section 0?. Effect of Cetition for +ertiorari on E)ec#tion. * A petition for certiorari &ith the +o#rt of Appeals or the S#preme +o#rt shall not stay the e)ec#tion of the assailed decision #nless a restrainin! order is iss#ed y said co#rts. Section 00. Resol#tion of 2otion to #ash. * The mere filin! of a motion to (#ash shall not stay e)ec#tion proceedin!s. A motion to (#ash shall e resolved y the Laor Ariter &ithin ten ,0?6 &or'in! days from s#mission of said motion for resol#tion.

'. APPEAL ON T(E E8EC/TION OF DECISION; S/PERVENIN% EVENTS

A %#d!ment ecomes final and e)ec#tory y operation of la&" not y %#dicial declaration. Accordin!ly" finality of %#d!ment ecomes a fact #pon the lapse of the re!lementary period of appeal if no appeal is perfected. In s#ch a sit#ation" the prevailin! party is entitled as a matter of ri!ht to a &rit of e)ec#tion$ and iss#ance thereof is a ministerial d#ty" compellale y mandam#s. ). %ENERAL R/LE RE%IONAL TRIAL CO/RT CANNOT ISS/E IN4/NCTION A%AINST NLRC

Crecedents ao#nd confirmin! the r#le that said co#rts have no laor %#risdiction to act on laor cases or vario#s incidents arisin! therefrom" incl#din! the e)ec#tion of decisions" a&ards or orders. @#risdiction to try and ad%#dicate s#ch cases pertains e)cl#sively to the proper laor official concerned #nder the =epartment of Laor and Employment. To hold other&ise is to sanction split %#risdiction &hich is ono)io#s to the orderly administration of %#stice. .0 E)ec#tion Over Croperty O&ned Only y @#d!ment =etor$ Remedies of Third Carty +laimant$ The #pan!co +ase A third party &hose property has een levied #pon y a sheriff to enforce a decision a!ainst a %#d!ment detor is afforded &ith several alternative remedies to protect its interests. The third party may avail himself of alternative remedies c#m#latively" and one &ill not precl#de the third party from availin! himself of the other alternative remedies in the event he failed in the remedy first availed of. Th#s" a third party may avail himself of the follo&in! alternative remedies: a6 ile a third party claim &ith the sheriff of the Laor Ariter" and


-0 D C L A T O N

LABOR RELATIONS 6 If the third party claim is denied" the third party may appeal the denial to the NLR+. Even if a third party claim &as denied" a third party may still file a proper action &ith a competent co#rt to recover o&nership of the property ille!ally seized y the sheriff. The ri!ht of a third*party claimant to file an independent action to vindicate his claim of o&nership over the properties seized is reserved y Section 0/ ,no& 06" R#le -4 of the R#les of +o#rt. The aforesaid remedies are nevertheless &itho#t pre%#dice to Pany proper actionP that a third*party claimant may deem s#itale to vindicate Phis claim to the property. #ite ovio#sly" too" this Pproper actionP &o#ld have for its o%ect the recovery of o&nership or possession of the property seized y the sheriff" as &ell as dama!es res#ltin! from the alle!edly &ron!f#l seiz#re and detention thereof despite the third*party claim. The remedies aove mentioned are c#m#lative and may e resorted to y a third*party claimant independent of or separately from and &itho#t need of availin! of the others. .3 RT+ In%#nction a!ainst Laor Ariter or NLR+" ;hen Allo&ed The re!ional trial co#rt &here the reinvindicatory action is filed can iss#e an in%#nction or temporary restrainin! order a!ainst the e)ec#tion ordered y a laor ariter or the NLR+. The !eneral r#le that no co#rt has the po&er to interfere y in%#nction &ith the %#d!ments or decrees of another co#rt &ith conc#rrent or coordinate %#risdiction possessin! e(#al po&er to !rant in%#nctive relief" applies only &hen no third*party claimant is involved. @#rispr#dence is li'e&ise replete &ith r#lin!s that since the third*party claimant is not one of the parties to the action" he co#ld not" strictly spea'in!" appeal from the order denyin! his claim" #t sho#ld file a separate reinvindicatory action a!ainst the e)ec#tion creditor or the p#rchaser of the property after the sale at p#lic a#ction" or a complaint for dama!es a!ainst the ond filed y the %#d!ment creditor in favor of the sheriff. .- Third Carty +laim

Section 03. Third Carty +laim. * A third party claim shall e filed &ithin five ,16 days from the last day of postin! or p#lication of the notice of e)ec#tion sale$ other&ise the claim shall e forever arred.The third party claimant shall e)ec#te an affidavit statin! his title to the property or ri!ht to possession thereof &ith s#pportin! evidence" and shall file the same &ith the Sheriff and the +ommission or Laor Ariter &ho iss#ed the &rit of e)ec#tion.Hpon receipt of the third party claim" all proceedin!s" &ith respect to the e)ec#tion of the property s#%ect of s#ch claim" shall a#tomatically e s#spended.The Laor Ariter &ho iss#ed the &rit may re(#ire the third party claimant to add#ce additional evidence in s#pport of his third party claim and to post a cash or s#rety ond e(#ivalent to the amo#nt of his claim" as provided for in Section  of R#le I" &itho#t pre%#dice to the postin! y the prevailin! party of a s#persedeas ond in an amo#nt e(#ivalent to that posted y the third party claimant.The Laor Ariter shall resolve the propriety of s#ch third party claim &ithin ten ,0?6 &or'in! days from s#mission of said claim for resol#tion.

. Sim#lated Sale" oid A& Ini"io A third*party claim on a levied property does not a#tomatically prevent e)ec#tion. ;hen a third*party claim is filed" the sheriff is not o#nd to proceed &ith the levy of the property #nless the %#d!ment creditor or the latterPs a!ent posts an indemnity ond a!ainst the claim. ;here the ond is filed" the remedy of the third*party claimant is to file an independent reivindicatory action a!ainst the %#d!ment creditor or the p#rchaser of the property at p#lic a#ction. 77777777 Art. 331. +ontempt po&ers of the Secretary of Laor. In the e)ercise of his po&ers #nder this +ode" the Secretary of Laor may hold any person in direct or indirect contempt and impose the appropriate penalties therefor. 77777777 Title III B/REA/ OF LABOR RELATIONS

Art. 33. B#rea# of Laor Relations. The B#rea# of Laor Relations and the Laor Relations =ivisions in the re!ional offices of the =epartment of Laor" shall have ori!inal and e)cl#sive a#thority to act" at their o&n initiative or #pon re(#est of either or oth parties" on all inter*#nion and intra*#nion conflicts" and all disp#tes" !rievances or prolems arisin! from or affectin! laor*mana!ement relations in all &or'places" &hether a!ric#lt#ral or non*a!ric#lt#ral" e)cept those arisin! from the implementation or interpretation of collective ar!ainin! a!reements &hich shall e the s#%ect of !rievance proced#re andGor vol#ntary aritration. The B#rea# shall have fifteen ,016 &or'in! days to act on laor cases efore it" s#%ect to e)tension y


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a!reement of the parties. ,As amended y Section 0" Rep#lic Act No. /01" 2arch 30" 04546. 77777777 1. BLR 4/RISDICTION

LABOR RELATIONS 0. to simplify the formation and re!istration of #nions" especially chartered locals 3. to simplify and e)pedite the holdin! of certification elections

The B#rea# of Laor Relations ,BLR6 no lon!er handles 8all9 laor*mana!ement disp#tes$ rather" its f#nctions and %#risdiction are lar!ely confined to #nion matters" collective ar!ainin! re!istry" and laor ed#cation.

-. to promote responsile #nionism" partic#larly in administration of #nion f#nds

Section 0. B#rea# of Laor Relations. * The B#rea# of Laor Relations shall set policies" standards" and proced#res on the re!istration and s#pervision of le!itimate laor #nion activities incl#din! denial" cancellation and revocation of laor #nion permits. It shall also set policies" standards" and proced#re relatin! to collective ar!ainin! a!reements" and the e)amination of financial records of acco#nts of laor or!anizations to determine compliance &ith relevant la&s.

1. to a#thorize dere!istration of collective ar!ainin! a!reements

2. INTER/NION AND INTRA/NION DISP/TES; D.O. NO. )77'

FInter*Hnion =isp#teF refers to any conflict et&een and amon! le!itimate laor #nions involvin! representation (#estions for p#rposes of collective ar!ainin! or to any other conflict or disp#te et&een le!itimate laor #nions. FIntra*Hnion =isp#teF refers to any conflict et&een and amon! #nion memers" incl#din! !rievances arisin! from any violation of the ri!hts and conditions of memership" violation of or disa!reement over any provision of the #nionPs constit#tion and y*la&s" or disp#tes arisin! from charterin! or affiliation of #nion. In interGintra*#nion disp#te the complaint may e filed y a #nion or #nion memers$ in a 8related laor relations disp#te9 the complaint may e filed y a party*in*interest &ho is not necessarily a #nion or #nion memer. ;hether the disp#te e of the first or the second cate!ory" the complainant or petition" if it involves an independent #nion" a chartered local" or a &or'ers association" shall e filed &ith the =OLE Re!ional Office &here the laor or!anization is re!istered. B#t if the complaint involves a federation or an ind#stryGnational #nion" it shall e filed &ith the BLR itself. 3.0 =.O. No. ?*?The Order appears to aim the follo&in! specific o%ectives:

. to a#thorize #nion mer!er" consolidation" and chan!e of name

3.3 Effect of Cendency Section -. Effects of the filin!Gpendency of interGintra*#nion and other related laor relations disp#tes. * The ri!hts" relationships and oli!ations of the parties liti!ants a!ainst each other and other parties*in*interest prior to the instit#tion of the petition shall contin#e to remain d#rin! the pendency of the petition and #ntil the date of finality of the decision rendered therein.

3.- Appeal Section 0. Appeal. * The decision of the 2ed*Ariter and Re!ional =irector may e appealed to the B#rea# y any of the parties &ithin ten ,0?6 days from receipt thereof" copy f#rnished the opposin! party. The decision of the B#rea# =irector in the e)ercise of hisGher ori!inal %#risdiction may e appealed to the Office of the Secretary y any party &ithin the same period" copy f#rnished the opposin! party. The appeal shall e verified #nder oath and shall consist of a memorand#m of appeal specifically statin! the !ro#nds relied #pon y the appellant" &ith s#pportin! ar!#ments and evidence. Section 0/. ;here to file appeal. * The memorand#m of appeal shall e filed in the Re!ional Office or B#rea# &here the complaint or petition ori!inated. ;ithin t&enty* fo#r ,36 ho#rs from receipt of the memorand#m of appeal" the B#rea# or Re!ional =irector shall ca#se the transmittal thereof to!ether &ith the entire records of the case to the Office of the Secretary or the B#rea#" as the case may e. Section 05. inality of =ecision. * ;here no appeal is filed &ithin the ten*day period" the B#rea# and Re!ional =irector or 2ed*Ariter" as the case may e" shall enter the finality of the decision in the records of the case and ca#se the immediate implementation thereof. Section 04. Ceriod to reply. * A reply to the appeal may e filed y any party to the complaint or petition &ithin ten ,0?6 days from receipt of the memorand#m of appeal. The reply shall e filed directly &ith the B#rea# or the Office of the Secretary" as the case may e.


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LABOR RELATIONS Section 3?. =ecision of the B#rea#GOffice of the Secretary. * The B#rea# =irector or the Secretary" as the case may e" shall have t&enty ,3?6 days from receipt of the entire records of the case &ithin &hich to decide the appeal. The filin! of the memorand#m of appeal from the decision of the 2edAriter or Re!ional =irector and B#rea# =irector stays the implementation of the assailed decision. The B#rea# or Office of the Secretary may call the parties to a clarificatory hearin! in aid of its appellate %#risdiction. Section 30. inality of =ecision of B#rea#GOffice of the Secretary. * The decision of the B#rea# or the Office of the Secretary shall ecome final and e)ec#tory after ten ,0?6 days from receipt thereof y the parties" #nless a motion for its reconsideration is filed y any party therein &ithin the same period. Only one ,06 motion for reconsideration of the decision of the B#rea# or the Office of the Secretary in the e)ercise of their appellate %#risdiction shall e allo&ed. Section 33. E)ec#tion of decision. * The decision of the 2ed*Ariter and Re!ional =irector shall a#tomatically e stayed pendin! appeal &ith the B#rea#. The decision of the B#rea# in the e)ercise of its appellate %#risdiction shall e immediately e)ec#tory #pon iss#ance of entry of final %#d!ment. The decision of the B#rea# in the e)ercise of its ori!inal %#risdiction shall a#tomatically e stayed pendin! appeal &ith the Office of the Secretary. The decision of the Office of the Secretary shall e immediately e)ec#tory #pon iss#ance of entry of final %#d!ment.

1. CO-PRO-ISE A%REE-ENTS

The assistance of the BLR or the re!ional office of the =OLE in the e)ec#tion of a compromise settlement is a asic re(#irement$ &itho#t it" there can e no valid compromise settlement. The NLR+ or any co#rt shall not ass#me %#risdiction over iss#es involved therein" e)cept: a6 in case of noncompliance &ith the compromise a!reement" or 6 if there is $ri#a %acie evidence that the settlement &as otained thro#!h fra#d" misrepresentation" or coercion. Alon! the same line" the +o#rt reiterated in 3??1:

'. E8TENT OF BLR A/T(ORITY

In the interest of ind#strial peace and for the promotion of the sal#tary constit#tional o%ectives of social %#stice and protection to laor" the competence of the !overnmental entr#sted &ith s#pervision over disp#tes involvin! employers and employees as &ell as Finter*#nion and intra*#nion conflicts"F is road and e)pensive. ). KATAR/N%AN% PA-BARAN%AY3 APPLICABLE TO LABOR DISP/TES

Art. 33/. +ompromise a!reements. Any compromise settlement" incl#din! those involvin! laor standard la&s" vol#ntarily a!reed #pon y the parties &ith the assistance of the B#rea# or the re!ional office of the =epartment of Laor" shall e final and indin! #pon the parties. The National Laor Relations +ommission or any co#rt" shall not ass#me %#risdiction over iss#es involved therein e)cept in case of non*compliance thereof or if there is prima facie evidence that the settlement &as otained thro#!h fra#d" misrepresentation" or coercion. 77777777

NOT

Cresidential =ecree No. 01?5 applies only to co#rts of %#stice and not to laor relations commissions or laor aritrators offices. No"e: +onciliation*mediation is no& done y N+2 not BLR.

Instead of simplifyin! laor proceedin!s desi!ned at e)peditio#s settlement or referral to the proper co#rt or office to decide it finally" the position ta'en y the petitioner &o#ld only d#plicate the conciliation proceedin!s and #nd#ly delay the disposition of the laor case. 77777777

There are le!itimate &aivers that represent a vol#ntary and reasonale settlement of a &or'ers claim &hich sho#ld e respected y the co#rts as the la& et&een the parties. Indeed" not all (#itclaims are per se invalid or a!ainst p#lic policy" e)cept ,06 &here there is clear proof that the &aiver &as &an!led from an #ns#spectin! or !#llile person" or ,36 &here the terms of settlement are #nconscionale on their faces$ in these cases" the la& &ill step in to ann#l the (#estionale transactions. S#ch (#itclaims are re!arded as ineffective to ar the &or'ers from claimin! the f#ll meas#re of their le!al ri!hts.

2. FOR-AL RE/IRE-ENTS OF CO-PRO-ISE A%REE-ENT

+ompromise a!reements involvin! laor standards cases m#st e red#ced to &ritin! and si!ned in the presence of the Re!ional =irector or his d#ly a#thorized representative. '. VALID CO-PRO-ISE AND /ITCLAI-

The la& loo's &ith disfavor #pon (#itclaims and releases y employees &ho are invei!led or press#red into si!nin! them y #nscr#p#lo#s employers see'in! to evade their le!al responsiilities. On the other hand" there are


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le!itimate &aivers that represent a vol#ntary settlement of laorerPs claims that sho#ld e respected y the co#rts as the la& et&een the parties. Not all &aivers and (#itclaims are invalid as a!ainst p#lic policy. If the a!reement &as vol#ntarily entered into and represents a reasonale settlement" it is indin! on the parties and may not later e diso&ned simply eca#se of a chan!e of mind. It is only &here there is clear proof that the &aiver &as &an!led from an #ns#spectin! or !#llile person" or the terms of settlement are #nconscionale on its face" that the la& &ill step in to ann#l the (#estionale transaction. B#t &here it is sho&n that the person ma'in! the &aiver did so vol#ntarily" &ith f#ll #nderstandin! of &hat he &as doin!" and the consideration for the (#itclaim is credile and reasonale" the transaction m#st e reco!nized as a valid and indin! #nderta'in!. ). CO-PRO-ISE A/T(ORI&ED

S(O/LD

BE

. The parties may" at any time" y m#t#al a!reement" &ithdra& a case from the +onciliation Section and %ointly s#mit it to a Laor Ariter" e)cept deadloc's in collective ar!ainin!.M,Repealed y Section 0" Batas Camansa Bilan! 0-?" A#!#st 30" 04506 77777777 Art. 334. Iss#ance of s#poenas. The B#rea# shall have the po&er to re(#ire the appearance of any person or the prod#ction of any paper" doc#ment or matter relevant to a laor disp#te #nder its %#risdiction" either at the re(#est of any interested party or at its o&n initiative. 77777777

D/LY

Section 4. A#thority to Bind Carty. * Attorneys and other representatives of parties shall have a#thority to ind their clients in all matters of proced#re$ #t they cannot" &itho#t a special po&er of attorney or e)press consent" enter into a compromise a!reement &ith the opposin! party in f#ll or partial dischar!e of a clientPs claim.

The a#thority to compromise cannot li!htly e pres#med and sho#ld e d#ly estalished y evidence. 0. R/LIN%S ON CO-PRO-ISE SETTLE-ENTS S/--ARI&ED 5. #(EN TO EFFECT CO-PRO-ISE FINAL DECISION3 NE%OTIABLE:

A compromise a!reement may e effected at any sta!e of the proceedin!s and even &hen there is already a final and e)ec#tor %#d!ment. +. OPTIONS #(EN A%REE-ENTS IS VIOLATED

LABOR RELATIONS the Re!ional =irector &ith a &ritten notice of s#ch indorsement or non*indorsement. The indorsement or non*indorsement of the Re!ional =irector may e appealed to the B#rea# &ithin ten ,0?6 &or'in! days from receipt of the notice.

CO-PRO-ISE

Hnder Article 3?0 of the +ivil +ode" sho#ld a party fail or ref#se to comply &ith the terms of a compromise or amicale settlement" the other party co#ld either: ,06 enforce the compromise y a &rit of e)ec#tion" or ,36 re!ard it as rescinded and so insist #pon his ori!inal demand. 77777777 Art. 335. Indorsement of cases to Laor Ariters. a. E)cept as provided in para!raph ,6 of this Article" the Laor Ariter shall entertain only cases endorsed to him for comp#lsory aritration y the B#rea# or y

Art. 3-?. Appointment of #rea# personnel. The Secretary of Laor and Employment may appoint" in addition to the present personnel of the B#rea# and the Ind#strial Relations =ivisions" s#ch n#mer of e)aminers and other assistants as may e necessary to carry o#t the p#rpose of the +ode. ,As amended y Section 01" Rep#lic Act No. /01" 2arch 30" 04546 77777777 Art. 3-0. Re!istry of #nions and file of collective ar!ainin! a!reements. The B#rea# shall 'eep a re!istry of le!itimate laor or!anizations. The B#rea# shall also maintain a file of all collective ar!ainin! a!reements and other related a!reements and records of settlement of laor disp#tes and copies of orders and decisions of vol#ntary aritrators. The file shall e open and accessile to interested parties #nder conditions prescried y the Secretary of Laor and Employment" provided that no specific information s#mitted in confidence shall e disclosed #nless a#thorized y the Secretary" or &hen it is at iss#e in any %#dicial liti!ation" or &hen p#lic interest or national sec#rity so re(#ires. ;ithin thirty ,-?6 days from the e)ec#tion of a +ollective Bar!ainin! A!reement" the parties shall s#mit copies of the same directly to the B#rea# or the Re!ional Offices of the =epartment of Laor and Employment for re!istration" accompanied &ith verified proofs of its postin! in t&o conspic#o#s places in the place of &or' and ratification y the ma%ority of all the &or'ers in the ar!ainin! #nit. The B#rea# or Re!ional Offices shall act #pon the application for re!istration of s#ch +ollective Bar!ainin! A!reement &ithin five ,16 calendar days


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LABOR RELATIONS from receipt thereof. The Re!ional Offices shall f#rnish the B#rea# &ith a copy of the +ollective Bar!ainin! A!reement &ithin five ,16 days from its s#mission. The B#rea# or Re!ional Office shall assess the employer for every +ollective Bar!ainin! A!reement a re!istration fee of not less than one tho#sand pesos ,C0"???.??6 or in any other amo#nt as may e deemed appropriate and necessary y the Secretary of Laor and Employment for the effective and efficient administration of the ol#ntary Aritration Cro!ram. Any amo#nt collected #nder this provision shall accr#e to the Special ol#ntary Aritration #nd.

Art. 3--. Crivile!ed comm#nication. Information and statements made at conciliation proceedin!s shall e treated as privile!ed comm#nication and shall not e #sed as evidence in the +ommission. +onciliators and similar officials shall not testify in any co#rt or ody re!ardin! any matters ta'en #p at conciliation proceedin!s cond#cted y them. 77777777 Title IV LABOR OR%ANI&ATIONS Chapter I RE%ISTRATION AND CANCELLATION

The B#rea# shall also maintain a file and shall #nderta'e or assist in the p#lication of all final decisions" orders and a&ards of the Secretary of Laor and Employment" Re!ional =irectors and the +ommission. ,As amended y Section 01" Rep#lic Act No. /01" 2arch 30" 04546 77777777

Art. 3-. Re(#irements of Re!istration. * A federation" national #nion or ind#stry or trade #nion center or an independent #nion shall ac(#ire le!al personality and shall e entitled to the ri!hts and privile!es !ranted y la& to le!itimate laor or!anizations #pon iss#ance of the certificate of re!istration ased on the follo&in! re(#irements:

RE%ISTRY OF /NIONS AND CBA,

,a6 ifty pesos ,C1?.??6 re!istration fee$

The B#rea# shall 'eep a re!istry of le!itimate laor or!anizations.

,6 The names of its officers" their addresses" the principal address of the laor or!anization" the min#tes of the or!anizational meetin!s and the list of the &or'ers &ho participated in s#ch meetin!s$

The B#rea# shall also maintain a file of all +ollective Bar!ainin! A!reements ,+BAs6 and other related a!reements. 77777777 Art. 3-3. Crohiition on certification election. The B#rea# shall not entertain any petition for certification election or any other action &hich may dist#r the administration of d#ly re!istered e)istin! collective ar!ainin! a!reements affectin! the parties e)cept #nder Articles 31-" 31-*A and 31 of this +ode. ,As amended y Section 01" Rep#lic Act No. /01" 2arch 30" 04546 77777777 T(E CONTRACTBAR R/LE

Article 3-3 spea's of the contract*ar r#le &hich means that &hile a valid and re!istered +BA is s#sistin!" the B#rea# is not allo&ed to hold an election contestin! the ma%ority stat#s of the inc#ment #nion. The e)istence of the +BA does not allo&" that is" it ars" the holdin! of the inter*#nion electoral contest. The election is le!ally allo&ed" says Art. 31" only d#rin! the 8freedom period9 &hich refers to the last ? days of the fifth year of a +BA. The o%ective of the r#le" ovio#sly" is to minimize #nion 8politic'in!9 #ntil the proper time comes. 77777777

,c6 In case the applicant is an independent #nion" the names of all its memers comprisin! at least t&enty percent ,3?U6 of all the employees in the ar!ainin! #nit &here it see's to operate$ ,d6 If the applicant #nion has een in e)istence for one or more years" copies of its ann#al financial reports$ and ,e6 o#r copies of the constit#tion and y*la&s of the applicant #nion" min#tes of its adoption or ratification" and the list of the memers &ho participated in it. ,As amended y Rep#lic Act No. 450" 2ay 31" 3??/6 77777777 Art. 3-*A. +harterin! and +reation of a Local +hapter. * A d#ly re!istered federation or national #nion may directly create a local chapter y iss#in! a charter certificate indicatin! the estalishment of the local chapter. The chapter shall ac(#ire le!al personality only for p#rposes of filin! a petition for certification election from the date it &as iss#ed a charter certificate. The chapter shall e entitled to all other ri!hts and privile!es of a le!itimate laor or!anization only


- D C L A T O N

LABOR RELATIONS #pon the s#mission of the follo&in! doc#ments in addition to its charter certificate: ,a6 The names of the chapterPs officers" their addresses" and the principal office of the chapter$ and ,6 The chapterPs constit#tion and y*la&s: Crovided" That &here the chapterPs constit#tion and y*la&s are the same as that of the federation or the national #nion" this fact shall e indicated accordin!ly. The additional s#pportin! re(#irements shall e certified #nder oath y the secretary or treas#rer of the chapter and attested y its president. 77777777 Art. 3-1. Action on application. The B#rea# shall act on all applications for re!istration &ithin thirty ,-?6 days from filin!. All re(#isite doc#ments and papers shall e certified #nder oath y the secretary or the treas#rer of the or!anization" as the case may e" and attested to y its president. 77777777 Art. 3-. =enial of re!istration$ appeal. The decision of the Laor Relations =ivision in the re!ional office denyin! re!istration may e appealed y the applicant #nion to the B#rea# &ithin ten ,0?6 days from receipt of notice thereof. 77777777 Art. 3-/. Additional re(#irements for federations or national #nions. S#%ect to Article 3-5" if the applicant for re!istration is a federation or a national #nion" it shall" in addition to the re(#irements of the precedin! Articles" s#mit the follo&in!: a. Croof of the affiliation of at least ten ,0?6 locals or chapters" each of &hich m#st e a d#ly reco!nized collective ar!ainin! a!ent in the estalishment or ind#stry in &hich it operates" s#pportin! the re!istration of s#ch applicant federation or national #nion$ and . The names and addresses of the companies &here the locals or chapters operate and the list of all the memers in each company involved. 77777777 Art. 3-5. +onditions for re!istration of federations or national #nions. No federation or national #nion shall e re!istered to en!a!e in any or!anization activity in more than one ind#stry in any area or re!ion" and no federation or national #nion shall e re!istered to en!a!e in any or!anizational activity in more than one ind#stry all over the co#ntry.

The federation or national #nion &hich meets the re(#irements and conditions herein prescried may or!anize and affiliate locals and chapters &itho#t re!isterin! s#ch locals or chapters &ith the B#rea#. Locals or chapters shall have the same ri!hts and privile!es as if they &ere re!istered in the B#rea#" provided that s#ch federation or national #nion or!anizes s#ch locals or chapters &ithin its assi!ned or!anizational field of activity as may e prescried y the Secretary of Laor. The B#rea# shall see to it that federations and national #nions shall only or!anize locals and chapters &ithin a specific ind#stry or #nion.M ,Repealed y E)ec#tive Order No. 000" =ecemer 3" 0456 77777777 1. LABOR P/RPOSES

OR%ANI&ATION

T#O

BROAD

A 8laor or!anization9 is not al&ays a #nion$ it may e an 8association of employees.9 And" the p#rpose is not only or necessarily 8collective ar!ainin!9 #t also dealin! &ith employers concernin! terms and conditions of employment. FLaor Or!anizationF refers to any #nion or association of employees in the private sector &hich e)ists in &hole or in part for the p#rpose of collective ar!ainin!" m#t#al aid" interest" cooperation" protection" or other la&f#l p#rposes. FLe!itimate Laor Or!anizationF refers to any laor or!anization in the private sector re!istered or reported &ith the =epartment in accordance &ith R#les III and I of these R#les. FHnionF refers to any laor or!anization in the private sector or!anized for collective ar!ainin! and for other le!itimate p#rposes. ;e sho#ld note that not every #nion is 8le!itimate$9 only those properly re!istered are considered LLO. B#t non*re!istration does not mean it is 8ille!itimate$9 it simply is #nre!istered and has no le!al personality. It e)ists le!ally #t does not possess the ri!hts of an LLO. FE)cl#sive Bar!ainin! RepresentativeF refers to a le!itimate laor #nion d#ly reco!nized or certified as the sole and e)cl#sive ar!ainin! representative or a!ent of all the employees in a ar!ainin! #nit. F;or'ersP AssociationF refers to an association of &or'ers or!anized for the m#t#al aid and protection


-/ D C L A T O N

LABOR RELATIONS of its memers or for any le!itimate p#rpose other than collective ar!ainin!. FLe!itimate ;or'ersP AssociationF refers to an association of &or'ers or!anized for m#t#al aid and protection of its memers or for any le!itimate p#rpose other than collective ar!ainin! re!istered &ith the =epartment in accordance &ith R#le III" Sections 3*+ and 3*= of these R#les. 0.0 =istinction Bet&een 8+ollective Bar!ainin!9 and 8=ealin! &ith Employer9 To ar!ain collectively is a ri!ht that may e ac(#ired y a laor or!anization after re!isterin! itself &ith the =epartment of Laor and Employment and after ein! reco!nized or certified y =OLE as the e)cl#sive ar!ainin! representative ,EBR6 of the employees. =ealin! &ith employer" on the other hand" is a !eneric description of interaction et&een employer and employees concernin! !rievances" &a!es" &or' ho#rs and other terms and conditions of employment" even if the employees !ro#p is not re!istered &ith the =epartment of Laor and Employment. 2. CLASSIFICATION OR%ANI&ATIONS

OF

LABOR

FNational HnionGederationF means any laor or!anization &ith at least ten ,0?6 locals or chapters each of &hich m#st e a d#ly reco!nized collective ar!ainin! a!ent. 8Ind#stry Hnion9 means any !ro#p of le!itimate laor or!anizations operatin! &ithin an identified ind#stry" or!anized for collective ar!ainin! or for dealin! &ith employers concernin! terms and conditions of employment &ithin an ind#stry" or for participatin! in the form#lation of social and employment policies" standards and pro!rams in s#ch ind#stry" &hich is d#ly re!istered &ith the =epartment. =.O. No. ?*?-" ho&ever" does not carry this term and this definition" altho#!h #nder R#le III" Section 3*B" 8laor or!anizations operatin! &ithin an identified ind#stry may also apply for re!istration as a federation or national #nion &ithin the specified ind#stry y s#mittin! to the B#rea# the same set of doc#ments ,as re(#ired of federations and national #nions.69 8Trade Hnion +enter9 means any !ro#p of re!istered national #nions or federations or!anized for the m#t#al aid and protection of its memers" for assistin! s#ch memers in collective ar!ainin!" or for participatin! in the form#lation of social and employment policies" standards and pro!rams" &hich is d#ly re!istered &ith the =epartment.

An 8alliance9 is an a!!re!ation of #nions e)istin! in one line of ind#stry" or in a con!lomerate" a !ro#p of franchises" a !eo!raphical area" or an ind#strial center. A 8company*#nion9 is a laor or!anization &hich" in &hole or in part" is employer*controlled or employer* denominated. Article 35,d6 prohiits ein! a company #nion. 3.0 Hnions at Enterprise Level A laor #nion at the enterprise level may e created either y ,a6 independent re!istration or ,6 charterin!. Independent re!istration is otained y the #nion or!anizers in an enterprise thro#!h their o&n action instead of thro#!h iss#ance of a charter y a federation or national #nion. An independent #nion has a le!al personality of its o&n not derived from that of a federation. FIndependent HnionF refers to a laor or!anization operatin! at the enterprise level that ac(#ired le!al personality thro#!h independent re!istration #nder Article 3- of the Laor +ode and R#le III" Section 3*A of these R#les.

+harterin!" on the other hand" ta'es place &hen a d#ly re!istered federation or national #nion iss#e a charter to a #nion in an enterprise and re!isters the creation of the chapter &ith the Re!ional Office &here the applicants operates. The #nion recipient of the charter s called a chapter or local or chartered local. Its le!al personality is derived from the federationG national #nion #t it may s#se(#ently re!ister itself independently. '. RE%ISTRATION RATIONALE

A laor or!anization may e re!istered or not. If re!istered &ith =OLE" it is considered 8le!itimate laor or!anization9 ,LLO6. B#t the reverse #s not tr#e" that is" a laor or!anization is not 8ille!itimate9 %#st eca#se it is #nre!istered. It is still la&f#l or!anization and can deal &ith the employer" #t it has no le!al personality to demand collective ar!ainin! &ith the employer. It cannot petition for a certification election and cannot hold a le!al stri'e. Re!istration is merely a condition ine *ua non for the ac(#isition of le!al personality y laor or!anizations" associations or #nions and the possession of the ri!hts and privile!es !ranted y la& to le!itimate laor or!anizations. S#ch re(#irement is a valid e)ercise of the police po&er" eca#se the activities in &hich laor or!anizations" associations and #nion of &or'ers are


-5 D C L A T O N

LABOR RELATIONS en!a!ed affect p#lic interest" &hich sho#ld e protected. -.0 Effect of Re!istration Hnder the +orporation La& A laor or!anization may e or!anized #nder the +orporation La& as a non*stoc' corporation and iss#ed a certificate of incorporation y the Sec#rities and E)chan!e +ommission. B#t s#ch incorporation has only the effect of !ivin! to it %#ridical personality efore re!#lar co#rts of %#stice. S#ch incorporation does not !rant the ri!hts and privile!es of a le!itimate laor or!anization. ). #(ERE TO RE%ISTER

Applications for re!istration of independent laor #nions" chartered locals" and &or'ers association shall e filed &ith the Re!ional Office &here the applicant principally operates. If the Re!ional Office denies the application" the denial is appealale to the B#rea# and from there to the +o#rt of Appeals ,not to the Secretary of Laor6 if proper !ro#nds e)ist. 0. RE%ISTRATION RE/IRE-ENTS

B. The application for re!istration of federations and national #nions shall e accompanied y the follo&in! doc#ments: ,a6 a statement indicatin! the name of the applicant laor #nion" its principal address" the name of its officers and their respective addresses$ ,6 the min#tes of the or!anizational meetin!,s6 and the list of employees &ho participated in the said meetin!,s6$ ,c6 the ann#al financial reports if the applicant #nion has een in e)istence for one or more years" #nless it has not collected any amo#nt from the memers" in &hich case a statement to this effect shall e incl#ded in the application$ ,d6 the applicant #nionPs constit#tion and y*la&s" min#tes of its adoption or ratification" and the list of the memers &ho participated in it. The list of ratifyin! memers shall e dispensed &ith &here the constit#tion and y*la&s &as ratified or adopted d#rin! the or!anizational meetin!,s6. In s#ch a case" the fact#al circ#mstances of the ratification shall e recorded in the min#tes of the or!anizational meetin!,s6$ ,e6 the resol#tion of affiliation of at least ten ,0?6 le!itimate laor or!anizations" &hether independent #nions or chartered locals" each of &hich m#st e a d#ly certified or reco!nized ar!ainin! a!ent in the estalishment &here it see's to operate$ and

1.0 Independent Laor Hnion Section 3. Re(#irements for application. * A. The application for re!istration of an independent laor #nion shall e accompanied y the follo&in! doc#ments: ,a6 the name of the applicant laor #nion" its principal address" the name of its officers and their respective addresses" appro)imate n#mer of employees in the ar!ainin! #nit &here it see's to operate" &ith a statement that it is not reported as a chartered local of any federation or national #nion$ ,6 the min#tes of the or!anizational meetin!,s6 and the list of employees &ho participated in the said meetin!,s6$ ,c6 the name of all its memers comprisin! at least 3?U of the employees in the ar!ainin! #nit$ ,d6 the ann#al financial reports if the applicant has een in e)istence for one or more years" #nless it has not collected any amo#nt from the memers" in &hich case a statement to this effect shall e incl#ded in the application$ ,e6 the applicantPs constit#tion and y*la&s" min#tes of its adoption or ratification" and the list of the memers &ho participated in it. The list of ratifyin! memers shall e dispensed &ith &here the constit#tion and y*la&s &as ratified or adopted d#rin! the or!anizational meetin!. In s#ch a case" the fact#al circ#mstances of the ratification shall e recorded in the min#tes of the or!anizational meetin!,s6.

1.3 ederation or National Hnion

,f6 the name and addresses of the companies &here the affiliates operate and the list of all the memers in each company involved. Laor or!anizations operatin! &ithin an identified ind#stry may also apply for re!istration as a federation or national #nion &ithin the specified ind#stry y s#mittin! to the B#rea# the same set of doc#ments.

1.- ;or'ers Association +. The application for re!istration of a &or'ersP association shall e accompanied y the follo&in! doc#ments: ,a6 the name of the applicant association" its principal address" the name of its officers and their respective addresses$ ,6 the min#tes of the or!anizational meetin!,s6 and the list of memers &ho participated therein$ ,c6 the financial reports of the applicant association if it has een in e)istence for one or more years" #nless it has not collected any amo#nt from the memers" in &hich case a statement to this effect shall e incl#ded in the application$ ,d6 the applicantPs constit#tion and y*la&s to &hich m#st e attached the names of ratifyin! memers" the min#tes of adoption or ratification of the constit#tion and y*la&s and the date &hen ratification &as made" #nless ratification &as done in the or!anizational meetin!,s6" in &hich case s#ch fact shall e reflected in the min#tes of the or!anizational meetin!,s6.


-4 D C L A T O N

1. +hartered Local 1.a ;hen =oes a +hartered Local Become an LLO The ac(#isition of le!al personality cannot e the da"e o% %iling of the doc#ments. Section ,=epartment Order No. 4" 044/6 &as defeatin! the very p#rpose of re!istration of #nions &hich &as to loc' off fly*y*ni!ht #nions. 1. ;hen =oes a +hartered Local Ac(#ire Le!al Cersonality #nder =.O. No. ?" Series of 3??Section 5. Effect of re!istration. * The laor #nion or &or'ersP association shall e deemed re!istered and vested &ith le!al personality on the date of iss#ance of its certificate of re!istration or certificate of creation of chartered local

The determinative date no& is not the date the re(#ired doc#ments &ere filed #t the date the certificate &as iss#ed. And the date of iss#ance is li'ely to e the date the doc#ments &ere filed eca#se =.O. No. ?*=*?1" s#pplementin! =.O. No. ?*?-" re(#ires the Re!ional Office or the B#rea# to either approve or deny the application for re!istration 8&ithin one ,06 day from receipt thereof.9 1.c Reco!nition y BLR not a 2inisterial =#ty 1.d +hartered Local as to e Re!istered$ Re(#irements 1.e Re!istration Re(#irements for a +hartered Local E. A d#ly*re!istered federation or national #nion may directly create a chartered local y s#mittin! to the Re!ional Office t&o ,36 copies of the follo&in!: ,a6 A charter certificate iss#ed y the federation or national #nion indicatin! the creation or estalishment of the localGchapter$ ,6 The names of the localGchapters officers" their addresses" and the principal office of the localGchapter$ and ,c6 The localGchapters constit#tion and y*la&s" provided that &here the localGchapters constit#tion and y*la&s is the same as that of the federation or national #nion" this fact shall e indicated accordin!ly.

LABOR RELATIONS The creation of a local does not need s#scription y a minim#m n#mer of memers. The 3? percent initial memership mentioned in Article 3-,c6 is re(#ired of an independent #nion #t not of a chartered local. 1.1 Hnions Le!itimacy not S#%ect to +ollateral Attac' S#ch le!al personality may e (#estioned only thro#!h an independent petition for cancellation of #nion re!istration in accordance &ith R#le I of these R#les" and not y &ay of collateral attac' in petition for certification election proceedin!s #nder R#le III.

5. COLLECTIVE BAR%AININ% /NIT
FBar!ainin! HnitF refers to a !ro#p of employees sharin! m#t#al interests &ithin a !iven employer #nit" comprised of all or less than all of the entire ody of employees in the employer #nit or any specific occ#pational or !eo!raphical !ro#pin! &ithin s#ch employer #nit. ;hile officers lead and represent a #nion" a #nion represents a +BH. The representative is the #nion$ the !ro#p represented is the +BH. The representative #nion" once determined" &ill represent even the memers of other #nions as lon! as they are part of the +BH. This is &hy the representative #nion ,also called ar!ainin! a!ent or ma%ority #nion6 is called 8e)cl#sive ar!ainin! representative9 ,EBR6. +. CONSTIT/ION3 BYLA#S3 AND RE%/LATIONS

Li'e other vol#ntary associations" laor #nions have the ri!ht to adopt constit#tions" r#les" and y*la&s &ithin the scope of the la&f#l p#rposes of the #nion and ind their memers therey" provided they are reasonale" #niform" and not discriminatory" and provided they are not contrary to p#lic policy or the la& of the land. The articles of a!reement of a laor #nion" &hether called a constit#tion" charter" y*la&s" or any other name" constit#tes a contract et&een the memers &hich the co#rts &ill enforce" if not immoral or contrary to p#lic policy or the la& of the land.

All of the fore!oin! s#pportin! re(#irements shall e certified #nder oath y the Secretary or the Treas#rer of the localGchapter and attested y its Cresident. ,As amended y =O ?*B*?-.6

A #nions constit#tion and y*la&s !overn the relationship et&een and amon! its memers. As in the interpretation of contracts" if the terms are clear and leave no do#t as to the intentions of the parties" the literal meanin! of the stip#lation shall control.

1.f Re(#irements Rela)ed

/.0 Limitation to By*la&s


? D C L A T O N

LABOR RELATIONS Hnder Art. 3-,e6 it is implied that the memers are the ones to adopt or ratify the #nions constit#tion and y*la&s. It ein! a !overnin! la& of the #nion" the +BL sho#ld e democratically ratified. /.3 Amendments A #nions constit#tion and y*la&s may e amended" modified and e)tended y the d#ly constit#ted #nion a#thorities #nder the la&s of the state" In the asence of other re(#irements" and s#%ect to vested ri!hts" a #nion constit#tion may e made" chan!ed" #nmade" or s#perseded y a ma%ority vote of the memers or its constit#ent ody. Hnder Art. 30,d6" ma%or policy (#estions are to e delierated #pon and decided y secret allot y the memers. *. PROVISIONS CO--ON TO T(E RE%ISTRATION OF LABOR OR%ANI&ATIONS AND #ORKER$S ASSOCIATION

5.0 Attestation" ee" +opies of =oc#ments Section 0. Attestation re(#irements. * The application for re!istration of laor #nions and &or'ersP associations" notice for chan!e of name" mer!er" consolidation and affiliation incl#din! all the accompanyin! doc#ments" shall e certified #nder oath y its Secretary or Treas#rer" as the case may e" and attested to y its Cresident. Section -. Accompanyin! doc#ments. * One ,06 ori!inal copy and t&o ,36 d#plicate copies of all doc#ments accompanyin! the application or notice shall e s#mitted to the Re!ional Office or the B#rea#.

5.3 Action on the ApplicationGNotices Section . Action on the applicationGnotice. * The Re!ional Office or the B#rea#" as the case may e" shall act on all applications for re!istration or notice of chan!e of name" affiliation" mer!er and consolidation &ithin ten ,0?6 days from receipt either y: ,a6 approvin! the application and iss#in! the certificate of re!istrationGac'no&led!in! the noticeGreport$ or ,6 denyin! the applicationGnotice for fail#re of the applicant to comply &ith the re(#irements for re!istrationGnotice.

5.- =enial of ApplicationGRet#rn of Notice Section 1. =enial of ApplicationGRet#rn of Notice. * ;here the doc#ments s#pportin! the application for re!istrationGnotice of chan!e of name" affiliation" mer!er and consolidation are incomplete or do not contain the re(#ired certification and attestation" the Re!ional Office or the B#rea# shall" &ithin five ,16 days from receipt of the applicationGnotice" notify the applicantGlaor or!anization concerned in &ritin! of the necessary re(#irements and complete the same &ithin thirty ,-?6 days from receipt of notice. ;here the applicantGlaor or!anization concerned fails to complete the re(#irements &ithin the time

prescried" the application for re!istration shall e denied" or the notice of chan!e of name" affiliation" mer!er and consolidation ret#rned" &itho#t pre%#dice to filin! a ne& application or notice. Section . orm of =enial of ApplicationGRet#rn of Notice$ Appeal. * The notice of the Re!ional Office or the B#rea# denyin! the application for re!istrationGret#rnin! the notice of chan!e of name" affiliation" mer!er or consolidation shall e in &ritin! statin! in clear terms the reasons for the denial or ret#rn.

5. Appeal Section . orm of =enial of ApplicationGRet#rn of Notice$ Appeal. * The denial may e appealed to the B#rea# if denial is made y the Re!ional Office or to the Secretary if denial is made y the B#rea#" &ithin ten ,0?6 days from receipt of s#ch notice" on the !ro#nd of !rave a#se of discretion or violation of these R#les. Section /. Croced#re on appeal. * The memorand#m of appeal shall e filed &ith the Re!ional Office or the B#rea# that iss#ed the denialGret#rn of notice. The memorand#m of appeal to!ether &ith the complete records of the application for re!istrationGnotice of chan!e of name" affiliation" mer!er or consolidation" shall e transmitted y the Re!ional Office to the B#rea# or y the B#rea# to the Office of the Secretary" &ithin t&enty*fo#r ,36 ho#rs from receipt of the memorand#m of appeal. The B#rea# or the Office of the Secretary shall decide the appeal &ithin t&enty ,3?6 days from receipt of the records of the case.

6. AFFILIATION

An affiliate is an independently re!istered #nion that enters into an a!reement of affiliation &ith a federation or a national #nion. It also refers to a chartered local &hich applies for and is !ranted an independent re!istration #t does not disaffiliate from its mother federation or national #nion. A #nion" either an independent or a local" affiliates &ith a federation or national #nion for a n#mer of reasons. The most common ones are to sec#re s#pport or assistance partic#larly d#rin! the formative sta!e of #nionization$ or to #tilize e)pertise in preparin! and p#rs#in! ar!ainin! proposals$ or to marshal mind and manpo&er in the co#rse of a !ro#p action s#ch as stri'e. The relationship et&een a local or chapter and the laor federation or national #nion is !enerally #nderstood to e that of a!ency" &here the local is the principal and the federation the a!ent. 4.0 Report of Affiliation$ Re(#irements Section . Report of Affiliation &ith federations or national #nions$ ;here to file. * The report of affiliation of an


0 D C L A T O N

independently re!istered laor #nion &ith a federation or national #nion shall e filed &ith the Re!ional Office that iss#ed its certificate of re!istration. Section /. Re(#irements of affiliation. * The report of affiliation of independently re!istered laor #nions &ith a federation or national #nion shall e accompanied y the follo&in! doc#ments: ,a6 resol#tion of the laor #nionPs oard of directors approvin! the affiliation$

LABOR RELATIONS and is th#s considered a protected laor activity only &hen &arranted y circ#mstances. >enerally" a laor #nion may disaffiliate from the mother #nion to form a local or independent #nion only d#rin! the ?* day freedom period immediately precedin! the e)piration of the +BA. The 8freedom period9 refers to the last ?*days of the fifth and last year of a +BA.

,c6 the total n#mer of memers comprisin! the laor #nion and the names of memers &ho approved the affiliation$

B#t even efore the onset of the freedom period ,and despite the closed*shop provision in the +BA et&een the mother #nion and mana!ement6 disaffiliation may still e carried o#t" #t s#ch disaffiliation m#st e effected y a ma%ority of the memers in the ar!ainin! #nit.

,d6 the certificate of affiliation iss#ed y the federation in favor of the independently re!istered laor #nion$ and

This r#lin! is tr#e ONL if the contract of affiliation does not specify the period for possile disaffiliation.

,e6 &ritten notice to the employer concerned if the affiliatin! #nion is the inc#ment ar!ainin! a!ent.

0?.- =isaffiliation m#st e y 2a%ority =ecision

,6 min#tes of the !eneral memership meetin! approvin! the affiliation$

17. DISAFFILIATION

The sole essence of affiliation is to increase" y collective action" the common ar!ainin! po&er of local #nions for the effective enhancement and protection of their interests. Admittedly" there are times &hen &itho#t s#ccor and s#pport local #nions may find it hard" #naided y other s#pport !ro#ps" to sec#re %#stice for themselves. et the local #nions remain the asic #nits of association" free to serve their o&n interests s#%ect to the restraints imposed y the constit#tion and y* la&s of the national federation" and free also to reno#nce the affiliation #pon the terms laid do&n in the a!reement &hich ro#!ht s#ch affiliation into e)istence.

Article 30,d6 applies to disaffiliation" th#s" it has to e decided y the entire memership thro#!h secret allotin!. 0?. =isaffiliation: Effect on Le!al Stat#s ;hen a #nion &hich is not independently re!istered disaffiliates from the federation" it is not entitled to the ri!hts and privile!es !ranted to a le!itimate laor or!anization. It cannot file a petition for certification election. 0?.1 =isaffiliation: Effect on Hnion =#es The oli!ation of an employee to pay #nion d#es is cotermino#s &ith his affiliation or memership.

To disaffiliate is a ri!ht" #t to oserve the terms of affiliation is an oli!ation

A contract et&een an employer and the parent or!anization as ar!ainin! a!ent for the employees is terminated y the disaffiliation of the local of &hich the employees are memers.

0?.0 Local Hnion is the Crincipal" ederation the A!ent

0?. =isaffiliation: Effect on E)istin! +BA$ the 8S#stit#tionary9 =octrine

=isaffiliation of employees from their mother #nion and their formation into a ne& #nion do not terminate their stat#s as employees of the corporation" as the employees and memers of the local #nion did not form a ne& #nion #t merely e)ercised their ri!ht to re!ister their local #nion.

The 8s#stit#tionary doctrine9 provides that the employees cannot revo'e the validly e)ec#ted collective ar!ainin! contract &ith their employer y the simple e)pedient of chan!in! their ar!ainin! a!ent. The ne& a!ent m#st respect the contract.

0?.3 ;hen to =isaffiliate ;hile it is tr#e that a local #nion is free to serve the interest of all its memers and en%oys the freedom to disaffiliate" s#ch ri!ht to disaffiliate may e e)ercised

11. REVOCATION OF C(ARTER

A federation" national #nion or &or'ers association may revo'e the charter iss#ed to a localGchapter or ranch y servin! on the latter a verified notice of revocation" copy f#rnished the B#rea#" on the


3 D C L A T O N

LABOR RELATIONS !ro#nd of disloyalty or s#ch other !ro#nds as may e specified in the constit#tion and yla&s of the federation" national #nion or &or'ers association. The revocation shall divest the localGchapter of its le!al personality #pon receipt of the notice y the B#rea#" #nless in the meantime the localGchapter has ac(#ired independent re!istration in accordance &ith these R#les. 00.0 Effect of +ancellation of Re!istration of ederation or National Hnion on LocalsG+hapter The cancellation of re!istration of a federation or national #nion shall operate to divest its localGchapter of their stat#s as le!itimate laor or!anizations" #nless the localsGchapters are covered y a d#ly re!istered collective ar!ainin! a!reement. 12 -ER%ER AND CONSOLIDATION Section 0?. Effect of mer!er or consolidation. * ;here there is a mer!er of laor or!anizations" the le!al e)istence of the asored laor or!anization,s6 ceases" &hile the le!al e)istence of the asorin! laor or!anization s#sists. All the ri!hts" interests and oli!ations of the asored laor or!anizations are transferred to the asorin! or!anization. ;here there is consolidation" the le!al e)istence of the consolidatin! laor or!anizations shall cease and a ne& laor or!anization is created. The ne&ly created laor or!anization shall ac(#ire all the ri!hts" interests and oli!ations of the consolidatin! laor or!anizations.

+onsolidation #s#ally occ#rs et&een t&o #nions that are appro)imately the same size" &hereas mer!er often involves a lar!er #nion mer!in! &ith a smaller #nion. ;hy do #nions mer!e They mer!e for reasons similar to those ehind corporate mer!ers. irst" a small #nion may mer!e &ith a lar!er #nion in order to !ain access to !reater reso#rces and e)pertise. Second" #nions that have traditionally competed &ith each other for memers may mer!e in order to eliminate inter*or!anizational conflicts. Third" #nions &hose memers s'ills have een o#tmoded y technolo!ical and economic chan!es may mer!e &ith a stron!er #nion in order to maintain %o sec#rity and instit#tional s#rvival. 03.0 Notice of 2er!erG+onsolidation of Laor Or!anizations$ ;here to ile

consolidation of independent laor #nions" chartered locals and &or'ersP associations shall e filed &ith and recorded y the Re!ional Office that iss#ed the certificate of re!istrationGcertificate of creation of chartered local of either the mer!in! or consolidatin! laor or!anization. Notice of mer!er or consolidation of federations or national #nions shall e filed &ith and recorded y the B#rea#.

03.3 Re(#irements 2er!erG+onsolidation

of

Notice

of

The notice of mer!er of laor or!anizations shall e accompanied y the follo&in! doc#ments: ,a6 the min#tes of mer!er convention or !eneral memership meetin!,s6 of all the mer!in! laor or!anizations" &ith the list of their respective memers &ho approved the same$ and ,6 the amended constit#tion and y*la&s and min#tes of its ratification" #nless ratification transpired in the mer!er convention" &hich fact shall e indicated accordin!ly.

03.- +ertificate of Re!istration Section 0?. +ertificate of Re!istration. * The certificate of re!istration iss#ed to mer!ed laor or!anizations shall ear the re!istration n#mer of one of the mer!in! laor or!anizations as a!reed #pon y the parties to the mer!er. The certificate of re!istration shall indicate the follo&in!: ,a6 the ne& name of the mer!ed laor or!anization$ ,6 the fact that it is a mer!er of t&o or more laor or!anizations$ ,c6 the name of the laor or!anizations that &ere mer!ed$ ,d6 its office or #siness address$ and ,e6 the date &hen each of the mer!in! laor or!anization.

1'. C(AN%E OF NA-E Section -. Notice of chan!e of name of laor or!anizations$ ;here to file. * The notice for chan!e of name of a re!istered laor or!anization shall e filed &ith the B#rea# or the Re!ional Office &here the concerned laor or!anizationPs certificate of re!istration or certificate of creation of a chartered local &as iss#ed. Section . Re(#irements for notice of chan!e of name. * The notice for chan!e of name of a laor or!anization shall e accompanied y the follo&in! doc#ments: ,a6 proof of approval or ratification of chan!e of name$ and ,6 the amended constit#tion and  y*la&s.

0-.0 Effect of +han!e of Name The chan!e of name of a laor or!anization shall not affect its le!al personality. All ri!hts and oli!ations of a laor or!anization #nder its old name shall contin#e to e e)ercised y the laor or!anization #nder its ne& name. 77777777

Section 5. Notice of 2er!erG+onsolidation of laor or!anizations$ ;here to file. * Notice of mer!er or Az#cena" +esario Alvero @r. ,3??/6. THE LABOR CODE WITH COMMENTS AND CASES ,ol. II6 . #ezon +ity: Re) Crintin! +ompany" Inc.

- D C L A T O N

Art. 3-5. +ancellation of Re!istration. * The certificate of re!istration of any le!itimate laor or!anization" &hether national or local" may e cancelled y the B#rea#" after d#e hearin!" only on the !ro#nds specified in Article 3-4 hereof. ,As amended y Rep#lic Act No. 450" 2ay 31" 3??/6 77777777 Art. 3-5*A. Effect of a Cetition for +ancellation of Re!istration. * A petition for cancellation of #nion re!istration shall not s#spend the proceedin!s for certification election nor shall it prevent the filin! of a petition for certification election. In case of cancellation" nothin! herein shall restrict the ri!ht of the #nion to see' %#st and e(#itale remedies in the appropriate co#rts. ,As amended y Rep#lic Act No. 450" 2ay 31" 3??/6 77777777 Art. 3-4. >ro#nds for +ancellation of Hnion Re!istration. * The follo&in! may constit#te !ro#nds for cancellation of #nion re!istration: ,a6 2isrepresentation" false statement or fra#d in connection &ith the adoption or ratification of the constit#tion and y*la&s or amendments thereto" the min#tes of ratification" and the list of memers &ho too' part in the ratification$ ,6 2isrepresentation" false statements or fra#d in connection &ith the election of officers" min#tes of the election of officers" and the list of voters$ ,c6 ol#ntary dissol#tion y the memers. ,As amended y Rep#lic Act No. 450" 2ay 31" 3??/6 77777777 Art. 3-4*A. ol#ntary +ancellation of Re!istration. * The re!istration of a le!itimate laor or!anization may e cancelled y the or!anization itself. Crovided" That at least t&o*thirds of its !eneral memership votes" in a meetin! d#ly called for that p#rpose to dissolve the or!anization: Crovided" f#rther" That an application to cancel re!istration is thereafter s#mitted y the oard of the or!anization" attested to y the president thereof. ,As amended y Rep#lic Act No. 450" 2ay 31" 3??/6 77777777

LABOR RELATIONS or ecome an #nla&f#l or!anization" its %#ridical personality as &ell as its stat#tory ri!hts and privile!es areM s#spended. It loses entitlement to the ri!hts en#merated in Article 33 of the Laor +ode. It cannot demand reco!nition y or ar!ainin! &ith the employer" cannot file a petition for certification election" and cannot stri'e. 0.0 8+ao9 F+aoF refers to a person or !ro#p or persons or to a laor !ro#p &hich" in the !#ise of a laor or!anization" s#pplies &or'ers to an employer" &ith or &itho#t any monetary or other consideration &hether in the capacity of an a!ent of the employer or as an ostensile independent contractor. 0.3 Administrative +ancellation$ the 8reportorial re(#irements9 Section 0. Reportin! re(#irements. * It shall e the d#ty of every le!itimate laor #nions and &or'ers associations to s#mit to the Re!ional Office or the B#rea# &hich iss#ed its certificate of re!istration or certificate of creation of chartered local" as the case may e" t&o ,36 copies of each of the follo&in! doc#ments: ,a6 any amendment to its constit#tion and y*la&s and the min#tes of adoption or ratification of s#ch amendments" &ithin thirty ,-?6 days from its adoption or ratification$ ,6 ann#al financial reports &ithin thirty ,-?6 days after the close of each fiscal year or calendar year$ ,c6 #pdated list of ne&ly*elected officers" to!ether &ith the appointive officers or a!ents &ho are entr#sted &ith the handlin! of f#nds" &ithin thirty ,-?6 days after each re!#lar or special election of officers" or from the occ#rrence of any chan!e in the officers of a!ents of the laor or!anization or &or'ers association$ ,d6 #pdated list of individ#al memers of chartered locals" independent #nions and &or'ersP associations &ithin thirty ,-?6 days after the close of each fiscal year$ and ,e6 #pdated list of its chartered locals and affiliates or memer or!anizations" collective ar!ainin! a!reements e)ec#ted and their effectivity period" in the case of federations or national #nions" &ithin thirty ,-?6 days after the close of each fiscal year" as &ell as the #pdated list of their a#thorized representatives" a!ents or si!natories in the different re!ions of the co#ntry.

RE%ISTRATION;

As #nderstood in these R#les" the fiscal year of a laor or!anization shall coincide &ith the calendar year" #nless a different period is prescried in the constit#tion and y* la&s.

;hile re!istration is the act that converts a laor or!anization to a le!itimate laor or!anization" cancellation is the !overnment act that divestsM it of that stat#s. It therey reverts to its character prior to the re!istration. Altho#!h it does not cease to e)ist

ail#re of the laor or!anization to s#mit the reports mentioned aove for five ,16 consec#tive years a#thorizes the B#rea# to instit#te cancellation proceedin!s #pon its o&n initiative or #pon complaint y any party*in*interest.

1. CANCELLATION %RO/NDS

OF


 D C L A T O N

LABOR RELATIONS 2. #(O FILES PETITION FOR CANCELLATION Section 3. ;ho may file. * Any party*in*interest may commence a petition for cancellation of re!istration" e)cept in actions involvin! violations of Article 30" &hich can only e commenced y memers of the laor or!anization concerned. Section -. >ro#nds for cancellation. * The follo&in! shall constit#te !ro#nds for cancellation of re!istration of laor or!anizations: ,!6 commission of any of the acts en#merated #nder Article 30 of the Laor +ode$ provided that no petition for cancellation ased on this !ro#nd may e !ranted #nless s#pported y at least thirty ,-?U6 percent of all the memers of the respondent laor or!anization$

The petition shall e #nder oath and shall state clearly and concisely the facts and !ro#nds relied #pon" accompanied y proof of service to the respondent. B#t s#ch petition cannot e entertained in the petition for certification election filed y the #nion. '. #(ERE TO FILE PETITION

&arnin! that fail#re on its part to comply &ith the reportorial re(#irements &ithin the time specified shall ca#se the contin#ation of the proceedin!s for the administrative cancellation of its re!istration. Section -. C#lication of notice of cancellation of re!istration . * ;here no response is a!ain received y the B#rea# &ithin thirty ,-?6 days from release of the second notice" the B#rea# shall ca#se the p#lication of the notice of cancellation of re!istration of the laor or!anization in t&o ,36 ne&spapers of !eneral circ#lation. The B#rea# may cond#ct an investi!ation &ithin the employerPs premises and at the laor or!anizationPs last 'no&n address to verify the latterPs e)istence.

77777777 Art. 3?. E(#ity of the inc#ment. All e)istin! federations and national #nions &hich meet the (#alifications of a le!itimate laor or!anization and none of the !ro#nds for cancellation shall contin#e to maintain their e)istin! affiliates re!ardless of the nat#re of the ind#stry and the location of the affiliates. 77777777 Chapter II RI%(TS AND CONDITIONS OF -E-BERS(IP

Section 0. ;here to file. * S#%ect to the re(#irements of notice and d#e process" the re!istration of any le!itimate independent laor #nion" chartered local and &or'ersP association may e cancelled y the Re!ional =irector" or in the case of federations" national or ind#stry #nions and trade #nion centers" y the B#rea# =irector" #pon the filin! of an independent complaint or petition for cancellation.

Art. 30. Ri!hts and conditions of memership in a laor or!anization. The follo&in! are the ri!hts and conditions of memership in a laor or!anization: a. No aritrary or e)cessive initiation fees shall e re(#ired of the memers of a le!itimate laor or!anization nor shall aritrary" e)cessive or oppressive fine and forfeit#re e imposed$

+ancellation orders iss#ed y the Re!ional =irector are appealale to the BLR. The latters decision is final and e)ec#tor" hence" not appealale to the =OLE Secretary #t it may e elevated to the +o#rt of Appeals y cer"iorari .

. The memers shall e entitled to f#ll and detailed reports from their officers and representatives of all financial transactions as provided for in the constit#tion and y*la&s of the or!anization$

BLR decisions on cancellation cases that ori!inated at the BLR itself may e appealed to the Secretary and" a!ain" y cer"iorari to the +A. ). PROCED/RE Section 3. Croced#re. * The Laor Relations =ivision of the Re!ional Office shall ma'e a report of the laor or!anizationPs non*compliance and s#mit the same to the B#rea# for verification &ith its records. The B#rea# shall send y re!istered mail &ith ret#rn card to the laor or!anization concerned" a notice for compliance indicatin! the doc#ments it failed to s#mit and the correspondin! period in &hich they &ere re(#ired" &ith notice to comply &ith the said reportorial re(#irements and to s#mit proof thereof to the B#rea# &ithin ten ,0?6 days from receipt thereof. ;here no response is received y the B#rea# &ithin thirty ,-?6 days from the release of the first notice" another notice for compliance shall e made y the B#rea#" &ith

c. The memers shall directly elect their officers" incl#din! those of the national #nion or federation" to &hich they or their #nion is affiliated" y secret allot at intervals of five ,16 years. No (#alification re(#irements for candidacy to any position shall e imposed other than memership in !ood standin! in s#%ect laor or!anization. The secretary or any other responsile #nion officer shall f#rnish the Secretary of Laor and Employment &ith a list of the ne&ly*elected officers" to!ether &ith the appointive officers or a!ents &ho are entr#sted &ith the handlin! of f#nds" &ithin thirty ,-?6 calendar days after the election of officers or from the occ#rrence of any chan!e in the list of officers of the laor or!anization$ ,As amended y Section 0" Rep#lic Act No. /01" 2arch 30" 04546 d. The memers shall determine y secret allot" after d#e delieration" any (#estion of ma%or policy


1 D C L A T O N

affectin! the entire memership of the or!anization" #nless the nat#re of the or!anization or force ma%e#re renders s#ch secret allot impractical" in &hich case" the oard of directors of the or!anization may ma'e the decision in ehalf of the !eneral memership$ e. No laor or!anization shall 'no&in!ly admit as memers or contin#e in memership any individ#al &ho elon!s to a s#versive or!anization or &ho is en!a!ed directly or indirectly in any s#versive activity$ f. No person &ho has een convicted of a crime involvin! moral t#rpit#de shall e eli!ile for election as a #nion officer or for appointment to any position in the #nion$ !. No officer" a!ent or memer of a laor or!anization shall collect any fees" d#es" or other contri#tions in its ehalf or ma'e any dis#rsement of its money or f#nds #nless he is d#ly a#thorized p#rs#ant to its constit#tion and y*la&s$ h. Every payment of fees" d#es or other contri#tions y a memer shall e evidenced y a receipt si!ned y the officer or a!ent ma'in! the collection and entered into the record of the or!anization to e 'ept and maintained for the p#rpose$ i. The f#nds of the or!anization shall not e applied for any p#rpose or o%ect other than those e)pressly provided y its constit#tion and y*la&s or those e)pressly a#thorized y &ritten resol#tion adopted y the ma%ority of the memers at a !eneral meetin! d#ly called for the p#rpose$ %. Every income or reven#e of the or!anization shall e evidenced y a record sho&in! its so#rce" and every e)pendit#re of its f#nds shall e evidenced y a receipt from the person to &hom the payment is made" &hich shall state the date" place and p#rpose of s#ch payment. S#ch record or receipt shall form part of the financial records of the or!anization. Any action involvin! the f#nds of the or!anization shall prescrie after three ,-6 years from the date of s#mission of the ann#al financial report to the =epartment of Laor and Employment or from the date the same sho#ld have een s#mitted as re(#ired y la&" &hichever comes earlier: Crovided" That this provision shall apply only to a le!itimate laor or!anization &hich has s#mitted the financial report re(#irements #nder this +ode: Crovided" f#rther" that fail#re of any laor or!anization to comply &ith the periodic financial reports re(#ired y la& and s#ch r#les and re!#lations prom#l!ated there#nder si) ,6 months after the effectivity of this

LABOR RELATIONS Act shall a#tomatically res#lt in the cancellation of #nion re!istration of s#ch laor or!anization$ ,As amended y Section 0" Rep#lic Act No. /01" 2arch 30" 04546 '. The officers of any laor or!anization shall not e paid any compensation other than the salaries and e)penses d#e to their positions as specifically provided for in its constit#tion and y*la&s" or in a &ritten resol#tion d#ly a#thorized y a ma%ority of all the memers at a !eneral memership meetin! d#ly called for the p#rpose. The min#tes of the meetin! and the list of participants and allots cast shall e s#%ect to inspection y the Secretary of Laor or his d#ly a#thorized representatives. Any irre!#larities in the approval of the resol#tions shall e a !ro#nd for impeachment or e)p#lsion from the or!anization$ l. The treas#rer of any laor or!anization and every officer thereof &ho is responsile for the acco#nt of s#ch or!anization or for the collection" mana!ement" dis#rsement" c#stody or control of the f#nds" moneys and other properties of the or!anization" shall render to the or!anization and to its memers a tr#e and correct acco#nt of all moneys received and paid y him since he ass#med office or since the last day on &hich he rendered s#ch acco#nt" and of all onds" sec#rities and other properties of the or!anization entr#sted to his c#stody or #nder his control. The renderin! of s#ch acco#nt shall e made: 0. At least once a year &ithin thirty ,-?6 days after the close of its fiscal year$ 3. At s#ch other times as may e re(#ired y a resol#tion of the ma%ority of the memers of the or!anization$ and -. Hpon vacatin! his office. The acco#nt shall e d#ly a#dited and verified y affidavit and a copy thereof shall e f#rnished the Secretary of Laor. m. The oo's of acco#nts and other records of the financial activities of any laor or!anization shall e open to inspection y any officer or memer thereof d#rin! office ho#rs$ n. No special assessment or other e)traordinary fees may e levied #pon the memers of a laor or!anization #nless a#thorized y a &ritten resol#tion of a ma%ority of all the memers in a !eneral memership meetin! d#ly called for the p#rpose. The secretary of the or!anization shall record the min#tes of the meetin! incl#din! the list of all memers present" the votes cast" the p#rpose of the special assessment or fees and the recipient of


 D C L A T O N

s#ch assessment or fees. The record shall e attested to y the president. o. Other than for mandatory activities #nder the +ode" no special assessments" attorneys fees" ne!otiation fees or any other e)traordinary fees may e chec'ed off from any amo#nt d#e to an employee &itho#t an individ#al &ritten a#thorization d#ly si!ned y the employee. The a#thorization sho#ld specifically state the amo#nt" p#rpose and eneficiary of the ded#ction$ and p. It shall e the d#ty of any laor or!anization and its officers to inform its memers on the provisions of its constit#tion and y*la&s" collective ar!ainin! a!reement" the prevailin! laor relations system and all their ri!hts and oli!ations #nder e)istin! laor la&s. or this p#rpose" re!istered laor or!anizations may assess reasonale d#es to finance laor relations seminars and other laor ed#cation activities. Any violation of the aove ri!hts and conditions of memership shall e a !ro#nd for cancellation of #nion re!istration or e)p#lsion of officers from office" &hichever is appropriate. At least thirty percent ,-?U6 of the memers of a #nion or any memer or memers specially concerned may report s#ch violation to the B#rea#. The B#rea# shall have the po&er to hear and decide any reported violation to mete the appropriate penalty.

LABOR RELATIONS The #nion has een evolved as an or!anization of collective stren!th for the protection of laor a!ainst the #n%#st e)actions of capital" #t e(#ally important is the re(#irement of fair dealin! et&een the #nion and its memers" &hich is fid#ciary in nat#re" and arises o#t of t&o factors: Fone is the de!ree of dependence of the individ#al employee on the #nion or!anization$ the other" a corollary of the first" is the comprehensive po&er vested in the #nion &ith respect to the individ#al.F The #nion may e considered #t the a!ent of its memers for the p#rpose of sec#rin! for them fair and %#st &a!es and !ood &or'in! conditions and is s#%ect to the oli!ation of !ivin! the memers as its principals all information relevant to #nion and laor matters entr#sted to it. 3.0 =#ty of +o#rt to Crotect Laorers from Hn%#st E)ploitation y Oppressive Employers and Hnion Leaders @#st as this +o#rt has stric'en do&n #n%#st e)ploitation of laorers y oppressive employers" so &ill it stri'e do&n their #nfair treatment y their o&n #n&orthy leaders. The +onstit#tion en%oins the State to afford protection to laor. air dealin! is e(#ally demanded of #nions as &ell as of employers in their dealin!s &ith employees. The #nion constit#tion is a covenant et&een the #nion and its memers and amon! the memers. '. RI%(TS OF /NION -E-BERS

+riminal and civil liailities arisin! from violations of aove ri!hts and conditions of memership shall contin#e to e #nder the %#risdiction of ordinary co#rts. 77777777 1. DE-OCRATI&ATION OF /NIONS

As #nionisms aim is to install ind#strial democracy" the #nions themselves m#st e democratic. This is a rationale ehind Article 30. To democratize the #nions" Article 30 re(#ires that the #nion officers e elected directly y the memers thro#!h secret allot and that the ma%or policy decisions" as a r#le" e made y the #nion memers" a!ain" y secret allot. As in a rep#lic &here soverei!nty resides in the people" the memers of the #nion are the 'eepers and dispensers of a#thority. The !overnin! po&er is the memers" not the officers. 2. NAT/RE OF RELATIONS(IP BET#EEN /NION AND ITS -E-EBERS

The ri!hts and conditions of memership laid do&n in Art. 30 may e s#mmarized as follo&s: ,06 Colitical ri!ht K the memers ri!ht to vote and e voted for" s#%ect to la&f#l provisions on (#alifications and dis(#alifications. ,36 =elierative and decision*ma'in! ri!ht K the memers ri!ht to participate in delierations on ma%or policy (#estions and decide them y secret allot. ,-6 Ri!hts over money matters K the memers ri!ht a!ainst e)cessive fees$ the ri!ht a!ainst #na#thorized collection of contri#tions or #na#thorized dis#rsements$ the ri!ht to re(#ire ade(#ate records of income and e)penses and the ri!ht of access to financial records$ the ri!ht to vote on officers compensation$ the ri!ht to vote on proposed special assessments and e ded#cted a special assessment only &ith the memers &ritten a#thorization. ,6 Ri!ht to Information K the memers ri!ht to e informed ao#t the or!anizations constit#tion and


/ D C L A T O N

LABOR RELATIONS y*la&s and the collective ar!ainin! a!reement and ao#t laor la&s. Altho#!h not so denominated" Article 30 of the Laor +ode carries the character of a ill of ri!hts of #nion memers. -.0 Eli!iility for 2emership ;hen" ho&" and #nder &hat conditions does an employee ecome a #nion memer The ans&er depends on the #nions constit#tion and y*la&s inasm#ch as Article 34 !ives a laor or!anization the ri!ht to prescrie its o&n r#les for ac(#isition or retention of memership. Nonetheless" #nder Art. 3// an employee is already (#alified for #nion memership startin! on his first day of service. #alifyin! for #nion memership does not necessarily mean incl#sion in the covera!e of the +BA. The reverse is e(#ally tr#e: memership in the +BH does not a#tomatically mean memership in the #nion. To s#m #p: Incl#sion in the +BH depends on the determination of its appropriateness #nder Art. 3- and Art. 311. Incl#sion or memership in a #nion depends on the #nions constit#tion and y*la&s" &itho#t pre%#dice to Art. 3//,c6.

.0 Eli!iility of oters Only memers of the #nion can ta'e part in the election of #nion officers. Emer in !ood standin! is any person &ho has f#lfilled the re(#irements for memership in the #nion and &ho has neither vol#ntarily &ithdra&n from memership nor een e)pelled or s#spended from memership after appropriate proceedin!s consistent &ith the la&f#l provisions of the #nions constit#tion and y*la&s. A laor or!anization may prescrie reasonale r#les and re!#lations &ith respect to votin! eli!iility. A laor or!anization may condition the e)ercise of the ri!ht to vote on the payment of d#es" since payin! d#es is a asic oli!ation of memership. o&ever" this r#le is s#%ect to t&o (#alifications in that ,a6 any r#le denyin! d#es*delin(#ent memers the ri!ht to vote m#st e applied #niformly$ and ,6 memers m#st e afforded a reasonale opport#nity to pay d#es" incl#din! a !race period d#rin! &hich d#es may e paid &itho#t any loss of ri!hts. S#mission of the employees names &ith the BLR as (#alified memers of the #nion is not a condition sine (#a non to enale said memers to vote in the election of #nionPs officers. .3 Hnion Officers 2#st Be an Employee

Incl#sion or covera!e in the +BA depends on the stip#lations in the +BA itself. ). ELECTION OF /NION OFFICERS

The officers of the #nion are elected y the memers in secret allot votin!. The election ta'es place at intervals of five years &hich is the term of office of the #nion officers incl#din! those of a national #nion" federation" or trade #nion center. The Implementin! R#les ,R#le II" Section 06 re(#ire the inc#ment president to create an election committee &ithin ? days efore e)piration of the inc#ment officers term. If the officers &ith e)pired term do not call an election" the remedy" accordin! to R#le II" is for at least -?U of the memers to file a petition &ith the =OLE Re!ional Office. The memers fr#stration over the performance of the #nion officers" as &ell as their fear of a 8fra#d#lent9 election to e held #nder the latters s#pervision" does not %#stify disre!ard of the #nions constit#tion and y*la&s.

,f6 No person &ho is not an employee or &or'er of the company or estalishment &here an independently re!istered #nion" affiliate" local or chapter of a laor federation or national #nion operates shall henceforth e elected or appointed as an officer of s#ch #nion" affiliate" local or chapter.

In short" one sho#ld e employed in the company to (#alify as officer of a #nion in that company. .- =is(#alification of Hnion Officers F2oral t#rpit#deF has een defines as an act of aseness" vileness" or depravity in the private and social d#ties &hich a man o&es his fello& men" or to society in !eneral" contrary to the accepted and c#stomary r#le of ri!ht and d#ty et&een man and man or cond#ct contrary to %#stice" honesty" modesty" or !ood morals. . Hnion Election Crotest: Croclamation of ;inners Section 0-. Crotest$ &hen perfected. * Any party*in*interest may file a protest ased on the cond#ct or mechanics of the election. S#ch protests shall e recorded in the


5 D C L A T O N

min#tes of the election proceedin!s. Crotests not so raised are deemed &aived. The protestin! party m#st formalize its protest &ith the 2ed*Ariter" &ith specific !ro#nds" ar!#ments and evidence" &ithin five ,16 days after the close of the election proceedin!s. If not recorded in the min#tes and formalized &ithin the prescried period" the protest shall e deemed dropped.

0. ACTION A%AINST /NION OFFICERS

A #nion officer" after his election" may not e e)pelled from the #nion for past malfeasance or misfeasance. To do so &o#ld n#llify the choice made y the #nion memers. The remedy a!ainst errin! #nion officers is not referend#m #t #nion e)p#lsion" i.e. to e)pel them from the Hnion. It is the etter part of conventional or pra!matic sol#tions in cases of this nat#re" asent overridin! considerations to the contrary" to respect the &ill of the ma%ority of the &or'ers &ho voted in the elections. Altho#!h decreed #nder a different settin!" it is apropos to recall the r#lin! that &here the people have elected a man to office" it m#st e ass#med that they did this &ith 'no&led!e of his life and character" and that they disre!arded or for!ave his fa#lts or miscond#ct" if he had een !#ilty of any. 5. D/E PROCESS IN I-PEAC(-ENT +. E8P/LSION OF -E-BER

@#st as an officer is entitled to d#e process" so does a memer. In a case" the +o#rt e)plicitly r#led that a memer of a laor #nion may e e)pelled only for a valid ca#se and y follo&in! the proced#re o#tlined in the constit#tion and y*la&s of the #nion. E)p#lsion of a memer for aritrary or impet#o#s reason may amo#nt to #nfair laor practice y the #nion. *. RELIEF #IT(IN T(E /NION

>enerally" redress m#st first e so#!ht &ithin the #nion itself in accordance &ith its constit#tion and y*la&s. If intra*#nion remedies have failed to correct any violations of the internal laor or!anization proced#res" a case can e filed &ith the B#rea# of Laor Relations" &hich is a#thorized to hear and decide cases of this nat#re. 5.0 E)ceptions

LABOR RELATIONS ;here e)ha#stion of remedies &ithin the #nion itself &o#ld practically amo#nt to a denial of %#stice" or &o#ld e ill#sory or vain" it &ill not e insisted #pon" partic#larly &here property ri!hts of the memers are involved" as a condition to the ri!ht to invo'e the aid of a co#rt. 6. CONSE/ENCES OF VIOLATION OF RI%(TS

If the conditions of memership" or the ri!ht of the memers" are violated" the violation may res#lt in the cancellation of the #nion re!istration or the e)p#lsion of the c#lpale officers. Section . Actions arisin! from Article 30. * Any complaint or petition &ith alle!ations of mishandlin!" misappropriation or non*acco#ntin! of f#nds in violation of Article 30 shall e treated as an intra*#nion disp#te. It shall e heard and resolved y the 2ed*Ariter p#rs#ant to the provisions of R#le I.

4.0 E)ception: ;hen -?U Not Re(#ired ;hen s#ch violation directly affects only one or t&o memers" then only one or t&o memers &o#ld e eno#!h to report s#ch violation. It states that a report of a violation of ri!hts and conditions of memership in a laor or!anization may e made y F,a6t least thirty percent ,-?U6 of all the memers of a #nion or any memer or memers specially concerned. 17. VISITORIAL PO#ER

Article 3/ a#thorizes the Secretary of Laor and Employment or his d#ly a#thorized representative to in(#ire into the financial activities of any laor or!anization on the asis of a complaint #nder oath" s#pported y 3? percent of the memership in order to determine compliance or noncompliance &ith the la&s and to aid in the prosec#tion of any violation thereof. 11. C(ECKOFF AND ASSESS-ENTS

A chec'*off is a method of ded#ctin! from an employees pay at prescried period" the amo#nts d#e the #nion for fees" fines" or assessments. The ri!ht of a #nion to collect #nion d#es is reco!nized #nder Article 3//,a6. 00.0 Assessments" li'e d#es" may also e chec'ed off =#es are defined as payments to meet the #nions !eneral and c#rrent oli!ations. The payment m#st e re!#lar" periodic" and #niform. Cayments #sed for a special p#rpose" especially if re(#ired only for a limited time" are re!arded as assessment.


4 D C L A T O N

LABOR RELATIONS ART. 30. Ri!hts and conditions of memership in a laor or!anization. < The follo&in! are the ri!hts and conditions of memership in a laor or!anization. ,o6 Other than for mandatory activities #nder the +ode" no special assessment" attorneyPs fees" ne!otiation fees or any other e)traordinary fees may e chec'ed off from any amo#nt d#e an employee &itho#t an individ#al &ritten a#thorization d#ly si!ned y an employee. The a#thorization sho#ld specifically state the amo#nt" p#rpose and eneficiary of the ded#ction.

AttorneyPs fees may not e ded#cted or chec'ed off from any amo#nt d#e to an employee &itho#t his &ritten consent e)cept for mandatory activities #nder the +ode. A mandatory activity has een defined as a %#dicial process of settlin! disp#te laid do&n y the la&. An amicale settlement entered into y the mana!ement and the #nion is not a mandatory activity #nder the +ode. 2oreover" the la& e)plicitly re(#ires the individ#al &ritten a#thorization of each employee concerned" to ma'e the ded#ction of attorneys fees valid. =ed#ctions for #nion service fee are a#thorized y la& and do not re(#ire individ#al chec'*off a#thorizations. Not&ithstandin! its Fcomp#lsoryF nat#re" 8comp#lsory aritration9 is not the Fmandatory activityF #nder the +ode &hich dispenses &ith individ#al &ritten a#thorizations for chec'*offs. ,06 Re(#irements K The fail#re of the Hnion to comply strictly &ith the re(#irements set o#t y the la& invalidates the (#estioned special assessment. S#stantial compliance is not eno#!h in vie& of the fact that the special assessment &ill diminish the compensation of the #nion memers. Their e)press consent is re(#ired" and this consent m#st e otained in accordance &ith the steps o#tlined y la&" &hich m#st e follo&ed to the letter. No shortc#ts are allo&ed. It s#mitted only min#tes of the local memership meetin!s &hen &hat is re(#ired is a &ritten resol#tion adopted at the !eneral meetin!. ;orse still" the min#tes of three of those local meetin!s held &ere recorded y a #nion director and not y the #nion secretary. The min#tes s#mitted to the +ompany contained no list of the memers present and no record of the votes cast. Since it is (#ite evident that the Hnion did not comply &ith the la& at every t#rn" the only concl#sion that may e made therefrom is that there &as no valid levy of the special assessment p#rs#ant to para!raph ,n6 of Article 30 of the Laor +ode. ,36 Effects of &ithdra&al of a#thorizations K Cara!raph ,o6 on the other hand re(#ires an individ#al &ritten a#thorization d#ly si!ned y every employee in order that a special assessment may e validly chec'ed*off. Even

ass#min! that the special assessment &as validly levied p#rs#ant to para!raph ,n6" and !rantin! that individ#al &ritten a#thorizations &ere otained y the Hnion" nevertheless there can e no valid chec'*off considerin! that the ma%ority of the #nion memers had already &ithdra&n their individ#al a#thorizations. A &ithdra&al of individ#al a#thorizations is e(#ivalent to no a#thorization at all. ,-6 orms of disa#thorization K The Hnion points o#t" ho&ever" that said disa#thorizations are not valid for ein! collective in form" as they are Fmere #nches of randomly proc#red si!nat#res" #nder loose sheets of paper.F The contention deserves no merit for the simple reason that the doc#ments containin! the disa#thorizations have the si!nat#res of the #nion memers. The +o#rt finds these retractions to e valid. There is nothin! in the la& &hich re(#ires that the disa#thorization m#st e in individ#al form. ,6 C#rpose of the special assessment K Of the stated p#rposes of the special assessment" as emodied in the oard resol#tion of the Hnion" only the collection of a special f#nd for laor and ed#cation research is mandated" as correctly pointed o#t y the Hnion. The t&o other p#rposes" namely" the p#rchase of vehicles and other items for the enefit of the #nion officers and the !eneral memership" and the payment of services rendered y #nion officers" cons#ltants and others" sho#ld e s#pported y the re!#lar #nion d#es" there ein! no sho&in! that the latter are not s#fficient to cover the same. ,16 Article 333,6 of the Laor +ode" 8similar char!e9 K The last stated p#rpose is contended y petitioners to fall #nder the covera!e of Article 333 ,6 of the Laor +ode. The contention is impressed &ith merit. Article 333 ,6 prohiits attorneyPs fees" ne!otiations fees and similar char!es arisin! o#t of the concl#sion of a collective ar!ainin! a!reement from ein! imposed on any individ#al #nion memer. The collection of the special assessment partly for the payment for services rendered y #nion officers" cons#ltants and others may not e in the cate!ory of FattorneyPs fees or ne!otiations fees.F B#t there is no (#estion that it is an e)action &hich falls &ithin the cate!ory of a Fsimilar char!e"F and" therefore" &ithin the covera!e of the prohiition in the aforementioned article. ,6 Hnlimited discretion of #nion president" disallo&ed K There is an additional proviso !ivin! the Hnion Cresident #nlimited discretion to allocate the proceeds of the special assessment. S#ch a proviso may open the door to a#se y the officers of the Hnion considerin! that the total amo#nt of the special assessment is (#ite considerale < C0"?3/"4.-- collected from those #nion memers &ho ori!inally a#thorized the ded#ction" and C0"3/"5-.-4 from those &ho did not a#thorize the same" or s#se(#ently retracted their a#thorizations. The +o#rt" therefore" sta'es do&n the (#estioned special assessment for ein! a violation of Article 30" para!raphs ,n6 and ,o6" and Article 333 ,6 of the Laor +ode.

00.3 Three Re(#isites to +ollect Special Assessment


1? D C L A T O N

Article 30 spea's of three ,-6 re(#isites that m#st e complied &ith in order that the special assessment for HnionPs incidental e)penses" attorneyPs fees and representation e)penses" as stip#lated in Article II of the +BA" e valid and #pheld namely: 06 a#thorization y a &ritten resol#tion of the ma%ority of all the memers at the !eneral memership meetin! d#ly called for the p#rpose$ ,36 secretaryPs record of the min#tes of the meetin!$ and ,-6 individ#al &ritten a#thorization for chec'*off d#ly si!ned y the employee concerned. 00.- +hec'*off of A!ency ee This is the amo#nt" e(#ivalent to #nion d#es" &hich a non*#nion memer pays to the #nion eca#se he enefits from the +BA ne!otiated y the #nion. In ne!otiatin! the +BA the #nion served as the employees a!ent. +hec'*off of a!ency fee is allo&ed #nder Art. 35,e6.

LABOR RELATIONS c. To e f#rnished y the employer" #pon &ritten re(#est" &ith its ann#al a#dited financial statements" incl#din! the alance sheet and the profit and loss statement" &ithin thirty ,-?6 calendar days from the date of receipt of the re(#est" after the #nion has een d#ly reco!nized y the employer or certified as the sole and e)cl#sive ar!ainin! representative of the employees in the ar!ainin! #nit" or &ithin si)ty ,?6 calendar days efore the e)piration of the e)istin! collective ar!ainin! a!reement" or d#rin! the collective ar!ainin! ne!otiation$ d. To o&n property" real or personal" for the #se and enefit of the laor or!anization and its memers$ e. To s#e and e s#ed in its re!istered name$ and f. To #nderta'e all other activities desi!ned to enefit the or!anization and its memers" incl#din! cooperative" ho#sin!" &elfare and other pro%ects not contrary to la&.

00. Ille!al +hec'*off >ro#nd for cancellation 00.1 Employers Liaility in +hec'*off Arran!ement +hec'*offs in tr#th impose an e)tra #rden on the employer in the form of additional administrative and oo''eepin! costs. It is a #rden ass#med y mana!ement at the instance of the #nion and for its enefit" in order to facilitate the collection of d#es necessary for the latterPs life and s#stenance. B#t the oli!ation to pay #nion d#es and a!ency fees ovio#sly devolves not #pon the employer" #t the individ#al employee. It is a personal oli!ation not demandale from the employer #pon defa#lt or ref#sal of the employee to consent to a chec'*off. The only oli!ation of the employer #nder a chec'* off is to effect the ded#ctions and remit the collections to the #nion.

Not&ithstandin! any provision of a !eneral or special la& to the contrary" the income and the properties of le!itimate laor or!anizations" incl#din! !rants" endo&ments" !ifts" donations and contri#tions they may receive from fraternal and similar or!anizations" local or forei!n" &hich are act#ally" directly and e)cl#sively #sed for their la&f#l p#rposes" shall e free from ta)es" d#ties and other assessments. The e)emptions provided herein may e &ithdra&n only y a special la& e)pressly repealin! this provision. ,As amended y Section 0/" Rep#lic Act No. /01" 2arch 30" 04546 77777777 Art. 33*A. Reportorial Re(#irements. * The follo&in! are doc#ments re(#ired to e s#mitted to the B#rea# y the le!itimate laor or!anization concerned:

00. @#risdiction Over +hec'*off =isp#tes The Re!ional =irector of =OLE" not the laor ariter" has %#risdiction over chec'*off disp#tes. 77777777 Chapter III RI%(TS OF LE%ITI-ATE LABOR OR%ANI&ATIONS

Art. 33. Ri!hts of le!itimate laor or!anizations. A le!itimate laor or!anization shall have the ri!ht: a. To act as the representative of its memers for the p#rpose of collective ar!ainin!$ . To e certified as the e)cl#sive representative of all the employees in an appropriate ar!ainin! #nit for p#rposes of collective ar!ainin!$

,a6 Its constit#tion and y*la&s" or amendments thereto" the min#tes of ratification" and the list of memers &ho too' part in the ratification of the constit#tion and y*la&s &ithin thirty ,-?6 days from adoption or ratification of the constit#tion and y*lam or amendments thereto$ ,6 Its list of officers" min#tes of the election of officers" and list of voters &ithin thirty ,-?6 days from election$ ,c6 Its ann#al financial report &ithin thirty ,-?6 days after the close of every fiscal year$ and ,d6 Its list of memers at least once a year or &henever re(#ired y the B#rea#.


10 D C L A T O N

LABOR RELATIONS ail#re to comply &ith the aove re(#irements shall not e a !ro#nd for cancellation of #nion re!istration #t shall s#%ect the errin! officers or memers to s#spension" e)p#lsion from memership" or any appropriate penalty. ,As amended y Rep#lic Act No. 450" 2ay 31" 3??/6 77777777 1. NOT ANY L.L.O.

The first three ri!hts mentioned in this article do not pertain to %#st ao#t any #nion #t only to the #nion that has een selected as the ar!ainin! representative of the employees in the ar!ainin! #nit. This article m#st e read in relation to Article 311. 2. RI%(TS OF /NION TO REPRESENT ITS -E-BERS

It is the f#nction of a laor #nion to represent its memers a!ainst the employers #nfair laor practices. It can file in their ehalf &itho#t the c#mersome proced#re of %oinin! each and every memer as a separate party. A laor #nion has the re(#isite personality to s#e on ehalf of its memers for their individ#al money claims. It &o#ld e an #n&arranted impairment of the ri!ht to self*or!anization if s#ch collective entities &o#ld e arred from instit#tin! an action in their representative capacity. 3.0 2emers =o#tin! Their Hnion A laor #nion is one s#ch party a#thorized to represent its memers #nder Article 33,a6 of the Laor +ode &hich provides that a #nion may act as the representative of its memers for the p#rpose of collective ar!ainin!. This a#thority incl#des the po&er to represent its memers for the p#rpose of enforcin! the provisions of the +BA. The intervention may e allo&ed &hen there is a s#!!estion of fra#d or coll#sion or that the representative &ill not act in !ood faith for the protection of all interests represented y the #nion. '. CO-PRO-ISE BINDIN% /PON -INORITY -E-BERS OF /NION; E8CEPTION It is an accepted r#le #nder o#r la&s that the &ill of the ma%ority sho#ld prevail over the minority and that the action ta'en y petitioners as minority memers of the Hnion is contrary to the policy of the 2a!na +arta of Laor" &hich promotes the settlement of differences et&een mana!ement and laor y m#t#al a!reement" and that if said action &ere tolerated" no employer &o#ld ever enter into any compromise a!reement for the minority

memers of the Hnion &ill al&ays dishonor the terms of the a!reement and demand for etter terms.

). CO-PRO-ISE OF -ONEY CLAI-S

2oney claims d#e to laorers cannot e the o%ect of settlement or compromise effected y a #nion or co#nsel &itho#t the specific individ#al consent of each laorer concerned. The eneficiaries are the individ#al complainants themselves. The #nion to &hich they elon! can only assist them #t cannot decide for them. A&ards in favor of laorers after lon! years of liti!ation m#st e attended to &ith m#t#al openness and in the est of faith. Only th#s can &e really !ive meanin! to the constit#tional mandate of !ivin! laorers ma)im#m protection and sec#rity. Hnder the philosophy of collective responsiility" an employer &ho ar!ains in !ood faith sho#ld e entitled to rely #pon the promises and a!reements of the #nion representatives &ith &hom he m#st deal #nder the comp#lsion of la& and contract. The collective ar!ainin! process sho#ld e carried on et&een parties &ho can m#t#ally respect and rely #pon the a#thority of each other.F ;here" ho&ever" collective ar!ainin! process is not involved" and &hat is at sta'e are ac' &a!es already earned y the individ#al &or'ers y &ay of overtime" premi#m and differential pay" and final %#d!ment has een rendered in their favor" the present case" the real parties in interest &ith direct material interest" as a!ainst the #nion &hich has only served as a vehicle for collective action to enforce their %#st claims" are the individ#al &or'ers themselves. A#thority of the #nion to &aive or (#itclaim all or part of the %#d!ment a&ard in favor of the individ#al &or'ers cannot e li!htly pres#med #t m#st e e)pressly !ranted" and the employer" as %#d!ment detor" m#st deal in all !ood faith &ith the #nion as the a!ent of the individ#al &or'ers. The +o#rt in t#rn sho#ld certainly verify and ass#re itself of the fact and e)tent of the a#thority of the #nion leadership to e)ec#te any compromise or settlement of the %#d!ment on ehalf of the individ#al &or'ers &ho are the real %#d!ment creditors.

0. RI%(T TO BE F/RNIS(ED #IT( FINANCIAL STATE-ENT

To etter e(#ip the #nion in preparin! for or in ne!otiatin! &ith the employer" the la& !ives it the ri!ht to e f#rnished &ith the employers a#dited financial statements. There are fo#r points in time &hen the #nion may as' in &ritin! for these statements: ,06 after the #nion has een reco!nized y the employer as sole ar!ainin! representative of the employees in the ar!ainin! #nit$ or ,36 after the #nion is certified y =OLE as s#ch sole ar!ainin! representative$ or ,-6 &ithin the last ? days of the life of a +BA$ or


13 D C L A T O N

Labor Relations Azucena Vol

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