Labor Relations Azucena Vol

LABOR RELATIONS
BOOK FIVE
LABOR 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#din! vol#ntary aritration" mediation
and conciliation" as modes of settlin! laor
or ind#strial disp#tes$
. To promote free trade #nionism as an
instr#ment for the enhancement of
democracy and the promotion of social
%#stice and development$

c. To foster the free and vol#ntary
or!anization of a stron! and #nited laor
movement$

d. To promote the enli!htenment of &or'ers
concernin! their ri!hts and oli!ations as
#nion memers and as employees$

e. To provide an ade(#ate administrative
machinery for the e)peditio#s settlement of
laor or ind#strial disp#tes$

f. To ens#re a stale #t dynamic and %#st
ind#strial peace$ and

!. To ens#re the participation of &or'ers in
decision and policy*ma'in! processes
affectin! their ri!hts" d#ties and &elfare.

B. To enco#ra!e a tr#ly democratic method of
re!#latin! the relations et&een the employers and
employees y means of a!reements freely entered
into thro#!h collective ar!ainin!" no co#rt 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 other&ise provided #nder this +ode. ,As
amended y Section -" Rep#lic Act No. ./01"
2arch 30" 04546
77777777
1. OVERVIE# AND VIE#POINT
8Laor Standards9 refers to the minim#m terms and
conditions of employment &hich employees are
le!ally entitled to and employers m#st comply &ith.
8Laor Relations9 refers to the interactions et&een
employer and employees or their representatives
and the mechanism y &hich the standards and
other terms and conditions of employment are
ne!otiated" ad%#sted and enforced.
The !overnment laor relations policy is declared in
Art. 300 &hich is a foc#sed elaoration of the asic
laor policy anno#nced in Art.- &hich" in t#rn"
echoes the constit#tional mandates. The policy
intends to attain social %#stice thro#!h ind#strial
peace and pro!ress. The latter is fo#nded on
employee participation and collective interactions
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 employer<is not favo#red in la&. It
is reco!nized as a le!al ri!ht #t re!#lated as to the
p#rpose and manner of doin! it. =eviation from the
mandatory re(#irements has adverse conse(#ences
to the violators. ;or' stoppa!e" eca#se it is
co#nter*prod#ctive" is and has to e considered a
meas#re of last resort.
The principle ehind laor #nionism in private
ind#stry is that ind#strial peace cannot e sec#red
thro#!h comp#lsion y la&. Relations et&een
private employers and their employees rest on an
essentially vol#ntary asis. S#%ect to the minim#m
re(#irements of &a!e la&s and other laor and
&elfare le!islation" the terms and conditions of
employment in the #nionized private sector are
settled thro#!h the process of collective ar!ainin!.
Beca#se laor relations are primarily 8domestic"9
third parties" even the >overnment" shy a&ay from
meddlin!" as m#ch as it can e helped. This is &hy
an in*ho#se prolem solvin! str#ct#re" called
!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 aritrator" to
resolve their differences.
The la&s" as a force that alances the parties: ri!hts
and oli!ations" are admittedly necessary in the
ind#strial settin!.
0
2. #ORKERS$ OR%ANI&ATION
0 Art. 0/??. The relations et&een capital and laor are not
merely contract#al. They are so impressed &ith p#lic interest
that laor 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 oserve honesty and !ood faith.
Az#cena" +esario Alvero @r. ,3??/6. THE LABOR CODE WITH COMMENTS AND CASES ,Aol. II6. B#ezon +ity: Re) Crintin! +ompany" Inc.
0 D C L A T O N
LABOR RELATIONS
A laor or trade #nion is a comination of &or'men
or!anized for the #ltimate p#rpose of sec#rin!
thro#!h #nited action the most favo#rale conditions
as re!ards &a!es" ho#rs of laor" conditions of
employment" etc." for its memers.
In the pop#lar sense a laor #nion is #nderstood to
e a completely or!anized ody of d#es*payin!
memers" operatin! thro#!h elected officers and
constit#tin! a militant" vital and f#nctionin! or!an. It
may e said that &hile every laor #nion is a laor
or!anization" not every laor or!anization is a laor
#nion. The difference is one of or!anization"
composition and operation.
'. #(Y #ORKERS OR%ANI&E
Self*help thro#!h economic action necessarily
re(#ires increasin! the ar!ainin! po&er of
employees$ hence one of the asic p#rposes of a
laor #nion is to eliminate competition amon!
employees in the laor 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 8the r#le of la&9 for the aritrary and often
capricio#s e)ercise of po&er y the oss.
,-6 Einally" #nions helped to !ive employees a sense
of participation in the #siness enterprises of &hich
they are part<a f#nction of laor #nions &hich
ecame important as or!anizations spread into
mass prod#ction ind#stries.
The #nion is the reco!nized instr#mentality and
mo#thpiece of the laorers.
). ILO CONVENTION NO. *+
77777777
Chapter II
DEFINITIONS
Art. 212. De!iitio,.
a. F+ommissionF means the National Laor
Relations +ommission or any of its divisions" as the
case may e" as provided #nder this +ode.

. FB#rea#F means the B#rea# of Laor Relations
andGor the Laor Relations =ivisions in the re!ional
offices estalished #nder Cresidential =ecree No. 0"
in the =epartment of Laor.

c. FBoardF means the National +onciliation and
2ediation Board estalished #nder E)ec#tive Order
No. 03..

d. F+o#ncilF means the Tripartite Aol#ntary
Aritration Advisory +o#ncil estalished #nder
E)ec#tive Order No. 03." as amended.

e. FEmployerF incl#des any person actin! in the
interest of an employer" directly or indirectly. The
term shall not incl#de any laor or!anization or any
of its officers or a!ents e)cept &hen 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)plicitly states. It shall incl#de any individ#al
&hose &or' has ceased as a res#lt of or in
connection &ith any c#rrent laor disp#te or eca#se
of any #nfair laor practice if he has not otained
any other s#stantially e(#ivalent and re!#lar
employment.

!. FLaor or!anizationF means any #nion or
association of employees &hich e)ists in &hole or in
part for the p#rpose of collective ar!ainin! or of
dealin! &ith employers concernin! terms and
conditions of employment.

h. FLe!itimate laor or!anizationF means any laor
or!anization d#ly re!istered &ith the =epartment of
Laor and Employment" and incl#des any ranch or
local thereof.

i. F+ompany #nionF means any laor or!anization
&hose formation" f#nction or administration has
een assisted y any act defined as #nfair laor
practice y this +ode.

%. FBar!ainin! representativeF means a le!itimate
laor or!anization &hether or not employed y the
employer.

'. FHnfair laor practiceF means any #nfair laor
practice as e)pressly defined y the +ode.

l. FLaor disp#teF incl#des any controversy or matter
concernin! terms and conditions of employment or
the association or representation of persons in
ne!otiatin!" fi)in!" maintainin!" chan!in! 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 employeeF is one &ho is vested &ith
the po&ers or prero!atives to lay do&n and e)ec#te
mana!ement policies andGor to hire" transfer"
s#spend" lay*off" recall" dischar!e" assi!n or
3 D C L A T O N
LABOR RELATIONS
discipline employees. S#pervisory employees 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#re #t re(#ires the #se of independent
%#d!ment. All employees not fallin! &ithin any of the
aove definitions are considered ran'*and*file
employees for p#rposes of this Boo'.

n. FAol#ntary AritratorF means any person
accredited y the Board as s#ch or any person
named or desi!nated in the +ollective Bar!ainin!
A!reement y the parties to act as their Aol#ntary
Aritrator" or one chosen &ith or &itho#t the
assistance of the National +onciliation and
2ediation Board" p#rs#ant to a selection proced#re
a!reed #pon in the +ollective Bar!ainin! A!reement"
or any official that may e a#thorized y the
Secretary of Laor and Employment to act as
Aol#ntary Aritrator #pon the &ritten re(#est and
a!reement of the parties to a laor 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 laor disp#te.

p. FLoc'o#tF means any temporary ref#sal of an
employer to f#rnish &or' as a res#lt of an ind#strial
or laor disp#te.

(. FInternal #nion disp#teF incl#des all disp#tes or
!rievances arisin! from any violation 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 memership provided
for in this +ode.

r. FStri'e*rea'erF means any person &ho ostr#cts"
impedes" or interferes &ith y force" violence"
coercion" threats" or intimidation any peacef#l
pic'etin! affectin! &a!es" ho#rs or conditions of
&or' or in the e)ercise of the ri!ht of self*
or!anization or collective ar!ainin!.

s. FStri'e areaF means the estalishment"
&areho#ses" depots" plants or offices" incl#din! the
sites or premises #sed as r#na&ay 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 estalishment. ,As amended y Section I"
Rep#lic Act No. ./01" 2arch 30" 04546
77777777
1. E-PLOYER.E-PLOYEE RELATIONS(IP
ESSENTIAL
The e)istence of employer*employee relationship" as
e)plained in Boo' III" is determined y the 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
,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
partic#lar employer" #nless the Act so e)plicitly
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 laor disp#te
,6 and &ho has not otained any other
s#stantially e(#ivalent and re!#lar
employment.
8Employee9 refers to any person &or'in! for an
employer. It incl#des one &hose &or' has ceased in
connection &ith any c#rrent laor disp#te or eca#se
of any #nfair laor practice and one &ho has een
dismissed from &or' #t the le!ality of the dismissal
is ein! contested in a for#m of appropriate
%#risdiction.
8Employer9 refers to any person or entity &ho
employs the services of others" one for &hom
employees &or' and &ho pays their &a!es or
salaries. An employer incl#des any person directly or
indirectly actin! in the interest of an employer. It
shall also refer to the enterprise &here a laor
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 8laor disp#te9 does not re(#ire that the disp#tants
sho#ld stand in the pro)imate relation of employer
and employee" &ith conse(#ent protection of
concerted activities carried o#t y many persons
elon!in! to several employers.
- D C L A T O N
LABOR RELATIONS
3.0 8One &hose &or' has ceased...9
+essation of &or' d#e to stri'e or loc'o#t" or to
dismissal or s#spensions constit#tin! #nfair laor
practices" does not in itself affect the 8employee9
stat#s" in the sense that the ri!hts and enefits of
the employee are protected as tho#!h there had
een no interr#ption of service" effective #pon act#al
ret#rn to &or'.
'. LABOR OR%ANI&ATION AS E-PLOYER
E)ceptionally" a laor or!anization may e deemed
an 8employer9 &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.
). LABOR DISP/TE
The test of &hether a laor controversy comes &ithin
the definition of a laor disp#te depends on &hether
it involves or concerns terms" conditions of
employment or representation.
The e)istence of a laor disp#te is not ne!ative y
the fact that the plaintiffs and defendants do not
stand in the pro)imate relation of employer and
employee.
0. LABOR DISP/TES AND RE-EDIES1 A
S/--ARY
1.0 =efinition
8Laor =isp#te9 incl#des any controversy or matter
concernin! terms and conditions of employment or
the association or representation of persons in
ne!otiatin!" fi)in!" maintainin!" chan!in! 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.
1.3 Tests or +riteria of 8Laor =isp#te9
A. Nat#re: =isp#te arises from employer*employee
relationship" altho#!h disp#tants need not e
pro)imately 8employee9 or 8employer9 of the other.
B. S#%ect matter: =isp#te concerns ,06 terms or
conditions of employment$ or ,36 association or
representation of persons in ne!otiatin!" fi)in!"
maintainin!" or chan!in! terms or conditions of
employment.
1.- Jinds of Laor =isp#tes
A. Laor Standards =isp#tes:
,06 +ompensation K ,#nderpayment of minim#m
&a!e6
,36 Benefits K ,nonpayment of holiday pay6
,-6 ;or'in! conditions K ,#nrectified &or' hazards6
B. Laor Relations =isp#tes:
,06 Or!anizational Ri!ht =isp#teG HLC K ,coercion6
,36 Representation =isp#tes K ,determination of
appropriate collective ar!ainin! #nit6
,-6 Bar!ainin! =isp#tes K ,ref#sal to ar!ain6
,I6 +ontract Administration or Cersonnel Colicy
=isp#tes K ,noncompliance &ith +BA provision6
,16 Employment Ten#re =isp#tes K
,nonre!#larization of employees6
1.I Remedies in Laor =isp#tes ,SEE TABLE 16
77777777
Title II
NATIONAL LABOR RELATIONS CO--ISSION
Chapter I
CREATION AND CO-POSITION
Art. 30-. National Laor Relations +ommission.
There shall e a National Laor Relations
+ommission &hich shall e attached to the
=epartment of Laor and Employment for pro!ram
and policy coordination only" composed of a
+hairman and fo#rteen ,0I6 2emers.
Eive ,16 memers each shall e chosen from amon!
the nominees of the &or'ers and employers
or!anizations" respectively. The +hairman and the
fo#r ,I6 remainin! memers shall come from the
p#lic sector" &ith the latter to e chosen from
amon! the recommendees of the Secretary of Laor
and Employment.
Hpon ass#mption into office" the memers
nominated y the &or'ers and employers
or!anizations shall divest themselves of any
affiliation &ith or interest in the federation or
association to &hich they elon!.
The +ommission may sit en anc or in five ,16
divisions" each composed of three ,-6 memers.
S#%ect to the pen#ltimate sentence of this
para!raph" 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 any of its divisions and re!ional ranches"
I D C L A T O N
LABOR RELATIONS
and form#latin! policies affectin! its administration
and operations. The +ommission shall e)ercise its
ad%#dicatory and all other po&ers" f#nctions" and
d#ties thro#!h its divisions. Of the five ,16 divisions"
the first" second and third divisions shall handle
cases comin! from the National +apital Re!ion and
the parts of L#zon$ and the fo#rth and fifth divisions"
cases from the Aisayas and 2indanao" respectively$
Crovided that the +ommission sittin! en anc may"
on temporary or emer!ency asis" allo& cases
&ithin the %#risdiction of any division to e heard and
decided y any other division &hose doc'et allo&s
the additional &or'load and s#ch transfer &ill not
e)pose liti!ants to #nnecessary additional e)pense.
The divisions of the +ommission shall have
e)cl#sive appellate %#risdiction over cases &ithin
their respective territorial %#risdictions. LAs amended
y Rep#lic Act No. //??M.
The conc#rrence of t&o ,36 +ommissioners of a
division shall e necessary for the prono#ncement of
%#d!ment or resol#tion. ;henever the re(#ired
memership in a division is not complete and the
conc#rrence of t&o ,36 commissioners to arrive at a
%#d!ment or resol#tion cannot e otained" the
+hairman shall desi!nate s#ch n#mer of additional
+ommissioners from the other divisions as may e
necessary.
The concl#sions of a division on any case s#mitted
to it for decision shall e reached in cons#ltation
efore the case is assi!ned to a memer for the
&ritin! of the opinion. It shall e mandatory for the
division to meet for p#rposes of the cons#ltation
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 ,I6 other memers
from the p#lic sector shall e the Cresidin!
+ommissioners of the second" third" fo#rth and fifth
divisions" respectively. In case of the effective
asence or incapacity of the +hairman" the
Cresidin! +ommissioner of the second division shall
e the Actin! +hairman.
The +hairman" aided y the E)ec#tive +ler' of the
+ommission" shall have administrative s#pervision
over the +ommission and its re!ional ranches and
all its personnel" incl#din! the E)ec#tive Laor
Ariters and Laor Ariters.
The +ommission" &hen sittin! en anc shall e
assisted y the same E)ec#tive +ler' and" &hen
actin! thr# its =ivisions" y said E)ec#tive +ler's for
the second" third" fo#rth and fifth =ivisions"
respectively" in the performance of s#ch similar or
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#rt of Appeals. ,As amended y Section 1"
77777777
Art. 30I. Nead(#arters" Branches and Crovincial
E)tension Hnits. The +ommission and its Eirst"
Second and Third divisions shall have their main
offices in 2etropolitan 2anila" and the Eo#rth and
Eifth divisions in the +ities of +e# and +a!ayan de
Oro" respectively. The +ommission shall estalish as
many re!ional ranches as there are re!ional offices
of the =epartment of Laor and Employment" s#*
re!ional ranches or provincial e)tension #nits.
There shall e as many Laor Ariters as may e
necessary for the effective and efficient operation of
the +ommission. Each re!ional ranch shall e
headed y an E)ec#tive Laor Ariter. ,As amended
y Section ." Rep#lic Act No. ./01" 2arch 30"
04546
77777777
1. NLRC1 NAT/RE AND OR%ANI&ATION
0.0 +reation and A#tonomy
Before the advent of the Laor +ode the laor co#rt
&as the +o#rt of Ind#strial Relations. ;hen martial
la& &as declared in Septemer 04/3" C= No. 30
,Octoer 0I" 04/36 aolished the +IR and replaced
it &ith an ad hoc National Laor Relations
+ommission. This NLR+ &as short*lived as it !ave
&ay to the NLR+ &hich the Laor +ode created in
04/I.
0.3 Administrative S#pervision =ele!ated to the
=OLE Secretary
E)ec#tive Order No. 3?I dele!ated to the Secretary
of Laor 8administrative s#pervision over the NLR+"
its re!ional ranches and all its personnel.9 The
Order cited t&o o%ectives: ,06 to f#rther improve the
rate of disposition of cases and ,36 to enhance
e)istin! meas#res for the prevention of !raft and
corr#ption in the NLR+.
0.- Essential +haracter
Hnder Rep#lic Act No. ./01 in 0454" as #nder the
former la&" the National Laor Relations
+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 Laor Ariters.
0.I Tripartite +omposition
1 D C L A T O N
LABOR RELATIONS
The same Article 30-" as amended" provides that the
+hairman and t&enty*three memers composin! the
National Laor 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. Nence" 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 Laor Relations +ommission9 &as
p#lished in ne&spapers on =ecemer 3-" 3??1 and
too' effect on @an#ary /" 3??..
77777777
Art. 301. Appointment and B#alifications. The
+hairman and other +ommissioners shall e
memers 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 laor*
mana!ement relations" and shall preferaly e
residents of the re!ion &here they are to hold office.
The E)ec#tive Laor Ariters and Laor Ariters
shall li'e&ise e memers 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
laor*mana!ement relations: Crovided" No&ever"
that inc#ment E)ec#tive Laor Ariters and Laor
Ariters &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 Laor Ariters and
Laor Ariters 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 Laor Ariters and Laor Ariters shall
also e appointed y the Cresident" #pon
recommendation of the Secretary of Laor and
Employment and shall e s#%ect to the +ivil Service
La&" r#les and re!#lations.
The Secretary of Laor 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
RE2/IRIN% CONFIR-ATION BY CO--ISSION
ON APPOINT-ENTS3 /NCONSTIT/TIONAL
77777777
Art. 30.. Salaries" enefits and other emol#ments.
The +hairman and memers 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 Laor Ariters shall receive an ann#al
salary at least e(#ivalent to that of an Assistant
Re!ional =irector of the =epartment of Laor and
Employment and shall e entitled to the same
allo&ances and enefits as that of a Re!ional
=irector of said =epartment. The Laor Ariters 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 Laor 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 Laor Ariters and the
+ommission.
a. E)cept as other&ise provided #nder this +ode"
the Laor Ariters 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 asence 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 laor practice cases$

3. Termination disp#tes$
. D C L A T O N
LABOR RELATIONS

-. 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$

I. +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.I 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 Laor Ariters.

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 Laor Ariter y referrin! the
same to the !rievance machinery and vol#ntary
aritration 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! Eilipino &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 OE;s$
3. ;a!e distortion disp#tes in #nor!anized
estalishments not vol#ntarily settled y the parties
p#rs#ant to Rep#lic Act No. ./3/" as reflected in
Article 03I$
-. Enforcement of compromise a!reements &hen
there is non*compliance y any of the parties
p#rs#ant to Article 33/ of the Laor +ode" as
amended$ and
I. Other cases as may e provided y la&.
2. CO-P/LSORY ARBITRATION BY LABOR
ARBITERS
In its road sense" aritration 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 aritration. In laor cases" comp#lsory
aritration is the process of settlement of laor
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
Aritration
Hnder the Laor +ode" it is the Laor Ariter &ho is
clothed &ith the a#thority to cond#ct comp#lsory
aritration on cases involvin! termination disp#tes
and other cases #nder Art. 30/.
;hen the Laor Ariter renders his decision"
comp#lsory aritration 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 descrie the proceedin!s efore
the Laor Ariter 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+Glaor ariter proceedin!s ,Art. 3306. The
ariter may avail himself of all reasonale 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 A" Sec. 3" NLR+ 3??1 R#les of Croced#re6
3.- Article 30/ Oields to Arts. 3.0
3
and 3.3
-
'. LABOR ARBITER$S 4/RISDICTION3 IN
%ENERAL
3 A vol#ntary aritrator" #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
aritrator ,or panel6 8all other disp#tes incl#din! #nfair laor
practices and ar!ainin! deadloc's.
/ D C L A T O N
LABOR RELATIONS
The cases laor ariter can hear and decide are
employment*related.
-.0 S#pervisory +ontrol" +r#cial
+ontrol over the performance of the &or' is the
cr#cial indicator of employment relationship" &itho#t
&hich the laor ariter 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 Laor +ode" other laor
stat#tes" or any collective ar!ainin! a!reement" it is
the Re!ional Trial +o#rt that has %#risdiction.
). VEN/E
The NLR+ R#les of Croced#re provides:
Section 0. Aen#e. * a6 All cases &hich Laor Ariters have
a#thority to hear and decide may e filed in the Re!ional
Aritration Branch havin! %#risdiction over the &or'place
of the complainant or petitioner.
Eor 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 Aritration 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 Aritration Branch other than &here
the complaint &as filed y &ritten a!reement of the parties
or &hen the +ommission or Laor Ariter efore &hom the
case is pendin! so orders" #pon motion y the proper
party in meritorio#s cases.
e6 +ases involvin! overseas Eilipino &or'ers may e filed
efore the Re!ional Aritration 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.
I.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<the nearest
!overnmental machinery to settle the disp#te m#st
e placed at his immediate disposal.
I.3 ;aiver
The 3??1 NLR+ R#les" in Sec. 0,c6" R#le IA 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/RISDICTION1 /.L.P.
CASES
B#t its essence" capt#red in Art. 3I." 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 laor practice"
&hen committed y an employer" carries the effect of
anti*#nionism.
5. CBA VIOLATION A-O/NTIN% TO /LP
+ertainly" violations of the collective ar!ainin!
a!reement &o#ld e #nfair laor practice &hich falls
#nder the %#risdiction of the Laor Ariters and the
National Laor Relations +ommission.
+. LABOR ARBITER$S 4/RISDICTION1
TER-INATION DISP/TES
Termination disp#tes or ille!al dismissal complaints
fall &ithin the %#risdiction of a laor ariter" as stated
in Art. 30/,36.
/.0 Termination of +orporate Officer$ @#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.
/.I Taan! 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$S 4/RISDICTION1 -ONEY
CLAI-S
A money claim arisin! from employer*employee
relations" e)ceptin! SSSGE++G2edicare claims" is
&ithin the %#risdiction of a laor ariter<
0. if the claim" re!ardless of amo#nt" is accompanied
&ith a claim for reinstatement$ 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 Aol#ntary Aritrator or Canel of Aol#ntary
Aritrators &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 +laims 2#st Nave Arisen from
Employment
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 Laor +ode or other
laor 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 Laor Ariter and the
National Laor Relations +ommission.
5.- 2oney +laims of +oop Employees
5.I @#risdiction over +laims for =ama!es
2oney claims of &or'ers &hich the laor ariter 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 Laor Ariter"
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$S 4/RISDICTION1 STRIKE
AND LOCKO/TS
B#estions relatin! to stri'es or loc'o#ts or any form
of &or' stoppa!e incl#din! incidents thereof #nder
Art. 3.I fall &ithin the laor ariter:s %#risdiction.
B#t the po&er to iss#e in%#nction is lod!ed &ith an
NLR+ division" not a laor ariter. 2oreover"
8national interest: cases are handled differently. Art.
3.- ,!6 empo&ers the =OLE Secretary or the
Cresident of the Rep#lic to ass#me %#risdiction or
refer the case to the NLR+ if the laor disp#te or
impendin! stri'e or loc'o#t involves an ind#stry
indispensile to national interest.
Still another limit to the ariter:s %#risdiction is the
%#risdiction of the re!#lar co#rts to hear and decide
actions filed y third parties ein! affected y a
stri'e of people &ho are not their employees. Einally"
if a crime is committed" &hether in relation to a stri'e
or not" the prosec#tion of the crime has to e done
not efore a laor ariter #t a re!#lar co#rt"
eca#se in s#ch a case the la&s to e administered
are primarily the penal la&s of the land.
17. LABOR ARBITER$S 4/RISDICTION1 OF#$S
-ONEY CLAI-S OR DIS-ISSAL
Section 0? of RA 5?I3" approved on @#ne /" 0441"
'no&n as the 2i!rant ;or'ers and Overseas
Eilipinos Act of 0441" transfers from the COEA to
Laor Ariters the ori!inal and e)cl#sive %#risdiction
4 D C L A T O N
LABOR RELATIONS
to hear and decide claims arisin! o#t of an
employer*employee relationship or y virt#e of any
la& or contract involvin! Eilipino &or'ers for
overseas deployment" incl#din! claims for act#al"
moral" e)emplary and other forms of dama!es.
Based on LArticle 30/" Laor +ode and Section 0?"
R.A. No. 5?I3M" laor ariters" clearly have original
and exclui!e %#risdiction over claims arisin! from
employer*employee relations" incl#din! "er#ina"ion
di$u"e involvin! all &or'ers" amon! them &hom
are Overseas Eilipino ;or'ers ,OE;6.
11. LABOR ARBITER$S 4/RISDICTION1 #%AE
DISTORTION
A salary distortion case" referred to in the Article 03I"
is resolved either thro#!h the +BA mechanism or" in
#nor!anized estalishments" thro#!h the N+2B. IE
the N+2B fails to resolve the disp#te in ten days of
conciliation conferences" it shall e final to the
appropriate ranch of the NLR+.
12. LABOR ARBITER$S 4/RISDICTION1
DISP/TES OVER CO-PRO-ISE SETTLE-ENTS
Beca#se laor 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 otained thro#!h
fra#d" misrepresentation" or coercion" then"
accordin! to Article 33/" the NLR+ thro#!h the laor
ariter 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
aide y the resol#tion of the case &ill ar said party
from later on imp#!nin! the co#rt or ody:s
%#risdiction.
The S#preme +o#rt fro&ns #pon the #ndesirale
practice of a party s#mittin! his case for decision
and then acceptin! the %#d!ment only if favo#rale"
and attac'in! it for lac' of %#risdiction &hen adverse.
1). I--/NITY OF FOREI%N %OVERN-ENTS
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
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#$erii6. The mantle
of state imm#nity cannot e e)tended to commercial"
private and proprietary acts ,'ure ge"ioni6.
0I.0 Imm#nity of the HN and Its Specialized
A!encies
10. E8EC/TIN% -ONEY CLAI-S A%AINST T(E
%OVERN-ENT
Even &hen a !overnment a!ency enters into a
#siness contract &ith a private entity" it is not the
Laor +ode #t +.A. No. -3/ that applies in
p#rs#in! a money claim ,a!ainst the >overnment6
arisin! from s#ch contract.
15. LOCAL #ATER DISTRICT
They are (#asi p#lic corporations &hose
employees elon! to the civil service" hence" the
dismissal of those employees shall e !overned y
the civil service la&" r#les and re!#lations.
0..0 E)ception: ;here NLR+ @#risdiction is Invo'ed
1+. REP/BLIC ACT NO. 5+109RETROACTIVE:
77777777
Art. 305. Co&ers of the +ommission. The
+ommission shall have the po&er and a#thority:
a. To prom#l!ate r#les and re!#lations !overnin! the
hearin! and disposition of cases efore it and its
re!ional ranches" as &ell as those pertainin! to its
internal f#nctions and s#ch r#les and re!#lations as
may e necessary to carry o#t the p#rposes of this
+ode$ ,As amended y Section 0?" Rep#lic Act No.
./01" 2arch 30" 04546

. 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$

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
asence of any party thereto &ho has een
0? D C L A T O N
LABOR RELATIONS
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 desirale$ and

d. To hold any person in contempt directly or
indirectly and impose appropriate penalties therefor
in accordance &ith la&.
A person !#ilty of misehavior in the presence of or
so near the +hairman or any memer of the
+ommission or any Laor Ariter as to ostr#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#scrie 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 memer 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 Laor Ariter.

The person ad%#d!ed in direct contempt y a Laor
Ariter 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
aide 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
#nappealale. Indirect contempt shall e dealt &ith
y the +ommission or Laor Ariter in the manner
prescried #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 prohiited or #nla&f#l acts
or to re(#ire the performance of a partic#lar act in
any laor disp#te &hich" if not restrained or
performed forth&ith" may ca#se !rave or irreparale
dama!e to any party or render ineffect#al any
decision in favor of s#ch party: Crovided" That no
temporary or permanent in%#nction in any case
involvin! or !ro&in! o#t of a laor 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 prohiited 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"
prohiited or #nla&f#l act" e)cept a!ainst the
person or persons" association or
or!anization ma'in! the threat or committin!
the prohiited 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 irreparale 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$

I. 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
#nale 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 irreparale in%#ry to
complainant:s property &ill e #navoidale" 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 reasonale costs" to!ether &ith a
reasonale 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
reasonale 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
Laor Ariters &ho shall cond#ct s#ch hearin!s in
s#ch places as he may determine to e accessile
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
Art. 304. Oc#lar inspection. The +hairman" any
+ommissioner" Laor Ariter 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
estalishment" #ildin!" ship or vessel" place or
premises" incl#din! any &or'" material" implement"
machinery" appliance or any o%ect therein" and as'
any employee" laorer" 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
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$
6 pertainin! to its internal f#nctions$ and
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 Near =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.I +ontempt Co&er
+ontempt is defined as a disoedience 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
disoedience 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"
Laor Ariter or their d#ly a#thorized
representatives" may" at any time d#rin! &or'in!
ho#rs:
a6 cond#ct an oc#lar inspection on any
estalishment" #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" laorer" or any person" as the
case may e" for any information or data concernin!
03 D C L A T O N
LABOR RELATIONS
any matter or (#estion relative to the o%ect of the
investi!ation.
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 Laor #nder Art. 3.-,!6.
0./ Ad%#dicatory Co&er: Appellate
The NLR+ has e)cl#sive appellate %#risdiction over
all cases decided y laor ariters ,Art. 30/LM6 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 aritrator" or
,36 the secretary of laor" or ,-6 the #rea# of laor
relations director on cases appealed from the =OLE
re!ional offices. The decisions of these three offices
are appealale rather to the +o#rt of Apeals.
;here the laor ariter 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 OR
TE-PORARY RESTRAININ% ORDER
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
I
&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.
3.0 In%#nction y Laor Ariter
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
I The sole o%ect of &hich is to preserve the stat#s (#o #ntil the
merits can e heard.
As a r#le" restrainin! orders or in%#nctions do not
iss#e ex $ar"e and only after compliance &ith the
follo&in! re(#isites" to &it:
a6 a hearin! held Fafter d#e and personal notice
thereof has een served" in s#ch manner as the
+ommission shall direct" to all 'no&n persons
a!ainst &hom relief is so#!ht" and also to the +hief
E)ec#tive and other p#lic officials of the province or
city &ithin &hich the #nla&f#l acts have een
threatened or committed char!ed &ith the d#ty to
protect complainantPs property$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 prohiited 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" prohiited or #nla&f#l act"
e)cept a!ainst the person or persons" association or
or!anization ma'in! the threat or committin! the
prohiited 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 irreparale 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$ ,I6 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 #nale 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 $ar"e #nder the follo&in!
conditions:
a6 the complainant Fshall also alle!e that" #nless a
temporary restrainin! order shall e iss#ed &itho#t
notice" a s#stantial and irreparale in%#ry to
complainantPs property &ill e #navoidale$
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$F
c6 the Fcomplainant shall first file an #nderta'in! &ith
ade(#ate sec#rity in an amo#nt to e fi)ed y the
+ommission s#fficient to recompense those en%oined
0- D C L A T O N
LABOR RELATIONS
for any loss" e)pense or dama!e ca#sed y the
improvident or erroneo#s iss#ance of s#ch order or
in%#nction" incl#din! all reasonale costs" to!ether
&ith a reasonale attorneyPs fee" and e)pense of
defense a!ainst the order or a!ainst the !rantin! of
any in%#nctive relief so#!ht in the same proceedin!
and s#se(#ently denied y the +ommission$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 irreparale if it is of s#ch
constant and fre(#ent rec#rrence that no fair and
reasonale 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 reasonale acc#racy"
that is" it is not s#sceptile of mathematical
comp#tation. It is considered irreparale 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!ile 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
enale 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.I No Ade(#ate Remedy
In addition to the other re(#irements &hich the
complainant m#st satisfy in order to otain 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
Eifty Tho#sand Cesos ,C1?"???.??6" or s#ch hi!her
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 reasonale costs" to!ether
&ith a reasonale 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 prohiited or #nla&f#l acts
as provided in Art. 305 of the Laor +ode" can only
e e)ercised in a laor 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 Laor Ariters &ho shall
cond#ct s#ch hearin!s in s#ch places as he may
determine to e accessile to the parties and their
&itnesses and shall s#mit thereafter his
recommendation to the +ommission.9
8Laor Ariter9 in the precedin! sentence may no&
refer to 8+ommission Attorney"9 a position created y
R.A. No. 4-I/ ,@#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
0I D C L A T O N
LABOR RELATIONS
LArt. 33?. +omp#lsory aritration. The +ommission
or any Laor Ariter shall have the po&er to as' the
assistance of other !overnment officials and
(#alified private citizens to act as comp#lsory
aritrators on cases referred to them and to fi) and
assess the fees of s#ch comp#lsory aritrators"
ta'in! into acco#nt the nat#re of the case" the time
cons#med in hearin! the case" the professional
standin! of the aritrators" the financial capacity of
the parties" and the fees provided in the R#les of
+o#rt.M ,Repealed y Section 0." Batas Camansa
Bilan! 0-?" A#!#st 30" 04506
77777777
Art. 330. Technical r#les not indin! and prior resort
to amicale settlement. In any proceedin! efore the
+ommission or any of the Laor Ariters" 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 memers and
the Laor Ariters shall #se every and all reasonale
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
Laor Ariter" 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 Laor Ariter to e)ercise
complete control of the proceedin!s at all sta!es.
Any provision of la& to the contrary not&ithstandin!"
the Laor Ariter shall e)ert all efforts to&ards the
amicale settlement of a laor 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"
77777777
1. PROCEEDIN%S BEFORE LABOR ARBITER OR
T(E CO--ISSION; TEC(NICAL R/LES NOT
APPLICABLE
Administrative and (#asi*%#dicial odies" li'e the
National Laor 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 Laor +ode as to allo& the NLR+
or a laor ariter to decide a case on the asis of
position papers and other doc#ments s#mitted
&itho#t resortin! to technical r#les of evidence as
oserved in re!#lar co#rts of %#stice.
0.0 2odic#m of Admissiility$ 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. No&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 admissiility for it to
e !iven some proative 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
reasonale mind mi!ht accept as ade(#ate to
s#pport a concl#sion.
0.3 +ardinal Ri!hts in B#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$
-6 decision m#st e s#pported y somethin!
,evidence6$
I6 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 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
/6 decide in s#ch manner that parties can 'no& the
vario#s iss#es involved and the reason for the
decision.
0.- Aerification
Aerification 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.I 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 Crohiited Cleadin!s and 2otions
Emphasizin! the avoidance of le!al technicalities"
the NLR+ 3??1 R#les ,in R#le III" SectionI6 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!$
6 2otion for a ill of partic#lars$
c6 2otion for ne& trial$
d6 Cetition for relief from %#d!ment &hen filed &ith
the Laor Ariter$
e6 Cetition for Cer"iorari" Manda#u or prohiition$
f6 2otion to declare respondent in defa#lt$
!6 2otion for reconsideration or appeal from any
interloc#tory order of the Laor Ariter.
2. -ANDATORY CONCILIATION AND -EDIATION
CONFERENCE; CO-PRO-ISE ENCO/RA%ED
Section 3. Nat#re of Croceedin!s. * The proceedin!s
efore the Laor Ariter 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 otainin!
in the co#rts of la& shall not strictly apply thereto. The
Laor Ariter may avail himself of all reasonale 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
amicaly 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$ ,I6 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 Laor Ariter shall preside and ta'e f#ll control of the
proceedin!s.
6 +onciliation and mediation efforts shall e e)erted y
the Laor Ariters 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!
and si!ned y the parties and their respective co#nsel or
a#thorized representative" if any" efore the Laor Ariter.
c6 In any case" the compromise a!reement shall e
approved y the Laor Ariter" 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 Laor Ariter.
e6 The mandatory conciliation and mediation conference
shall" e)cept for %#stifiale !ro#nds" e terminated &ithin
thirty ,-?6 calendar days from the date of the first
conference.
f6 No motion for postponement shall e entertained e)cept
on meritorio#s !ro#nds.
Section I. Effect of Eail#re of +onciliation and 2ediation. *
Sho#ld the parties fail to a!ree #pon an amicale
settlement" either in &hole or in part" d#rin! the mandatory
conciliation and mediation conference" the Laor Ariter
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 Laor Ariter 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 Laor Ariter shall
immediately terminate the mandatory conciliation and
mediation conference. The Laor Ariter 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 record.
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#red
e)cept for vices of consent and for!ery. No&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
laor and to conform to the need of protectin! the
0. D C L A T O N
LABOR RELATIONS
&or'in! class &hose inferiority a!ainst the employer
has al&ays een earmar'ed y disadvanta!e.
3.0 Bindin! Effect of +ompromise A!reement
The a#thority to compromise cannot li!htly e
pres#med and sho#ld e estalished y evidence.
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 aove. It
re(#ires the Laor Ariter:s approval of a
compromise a!reement over a case pendin! efore
the Laor Ariter.
3.3 B#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 Einal 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.
'. -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 Laor Ariter 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 appealale.
-.0 Mo"u $ro$rio =ismissal of +omplaint ased on
Crescription
-.3 Re )udica"a as Reason to =ismiss +omplaint
Eor 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
there m#st e et&een the t&o cases Identity of
parties" s#%ect matter" and ca#ses of action.
-.- No =ismissal of +omplaint despite =eath
-.I Revival or Refilin! of =ismissed +ase
A dismissed case is not necessarily dead.
Section 0.. Revival And Re*Openin! Or Re*Eilin! 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 aritration ranch of ori!in.
A complaint dismissed 8&itho#t pre%#dice9 simply
means a tentative or temporary dismissal<the
complaint may e revived thro#!h an appropriate
motion.
). S/B-ISSION OF POSITION PAPERS AND
REPLY
I.0 =etermination of necessity of Nearin! or
+larificatory +onference
Section 5. =etermination of Necessity of Nearin! or
+larificatory +onference. * Immediately after the
s#mission y the parties of their position paper or reply"
as the case may e" the Laor Ariter 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.
I.3 Role of the Laor Ariter in hearin! and
clarificatory conference**
Section 4. Role of the Laor Ariter in Nearin! and
+larificatory +onference. * a6 The Laor Ariter shall ta'e
f#ll control and personally cond#ct the hearin! or
clarificatory conference. Hnless other&ise provided y la&"
the Laor Ariter shall determine the order of presentation
of evidence y the parties" s#%ect to the re(#irements of
d#e process. Ne 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. Ne 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 Laor Ariter shall e allo&ed.
c6 The Laor Ariter 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
LABOR RELATIONS
s#mmary shall e si!ned y the parties and shall form part
of the records.
I.- Non*appearance of Carties$ Costponement of
Nearin! and +larificatory +onferences.
Section 0?. Non*Appearance of Carties" and
Costponement of Nearin!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 Laor Ariter 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
Laor Ariter shall e prepared for contin#o#s hearin! or
clarificatory conference. No postponement or contin#ance
shall e allo&ed y the Laor Ariter" 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 Eilipino &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 Laor Ariter over the person of the respondents.
0. S/B-ISSION OF T(E CASE FOR DECISION
1.0 Cosition Capers as Basis of =ecision
The affidavits in s#ch case may ta'e the place of
their direct testimony. The laor ariter 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 Aerification" Not Eatal
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 Neard
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 reasonale opport#nity to
e)plain their side of the controversy at hand.
1.I Inhiition
Section 03. Inhiition. * A Laor Ariter may vol#ntarily
inhiit 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 Laor Ariter may inhiit 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 inhiition is
inappealale.
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 reasonale 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 reasonale
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& laor 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
LABOR RELATIONS
enc#mer the mana!ement committee:s time and
reso#rces.
+. FILIN% AND SERVICE OF PLEADIN%S AND
DECISIONS
Section 1. Eilin! 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 Aritration
Branch or the +ommission" as the case maye.
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.
/.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#mer of
complainants" as may e practicale" &hich shall e
considered s#stantial compliance &ith Article 33I ,a6 of
the Laor +ode" as amended.
Eor 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!ily 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.
Section I" 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 I. Cersonal Service. < Service of 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 OF DO/BT IN LA# OR
EVIDENCE
It is no& a familiar r#le that do#t as to the
interpretation of laor la&s and re!#lations has to e
resolved in favor of laor. This precept is etched in
the Laor +ode ,Art. I6 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 ao#t
the evidence of the disp#tants.
6. DECISION OF LABOR ARBITER
Section 0-. Ceriod to =ecide +ase. * The Laor Ariter
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 asence of steno!raphic
notes$ Crovided ho&ever" that cases involvin! overseas
Eilipino &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 Laor Ariter of
%#risdiction over the respondents.
4.0 +ontents of =ecisions
Section 0I. +ontents of =ecisions. * The decisions and
orders of the Laor Ariter shall e clear and concise and
shall incl#de a rief statement of the: a6 facts of the case$
6 iss#es involved$ c6 applicale 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 Laor Ariter shall
contain the amo#nt a&arded.
In case the decision of the Laor Ariter 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 Laor Ariter shall e
allo&ed.No&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 Laor Ariter shall elevate the case to the
+ommission for disposition.
77777777
Art. 333. Appearances and Eees.
a. Non*la&yers may appear efore the +ommission
or any Laor Ariter only:

0. If they represent themselves$ or

3. If they represent their or!anization or
memers 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 memer of the contractin! #nion:
Crovided" No&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 Laor Ariter
or +ommission only #nder the follo&in! conditions:
,06 he represents himself as party to the case$
,36 he represents a le!itimate laor or!anization" as
defined #nder Article 303 and 3I3 of the Laor +ode" as
amended" &hich is a party to the case: Crovided" that he
presents: ,i6 a certification from the B#rea# of Laor
Relations ,BLR6 or Re!ional Office of the =epartment of
Laor and Employment attestin! that the or!anization he
represents is d#ly re!istered and listed in the roster of
le!itimate laor 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 memer or memers of a le!itimate
laor or!anization that is e)istin! &ithin the employerPs
estalishment" &ho are parties to the case: Crovided" that
he presents: ,i6 a verified certification attestin! that he is
a#thorized y s#ch memer or memers 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 memers of their or!anization &hich is
e)istin! in the employerPs estalishment$
,I6 he is a d#ly*accredited memer 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
estalishment &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 estalishment$
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 estalishment" !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
otained$
I6 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
). ATTORNEY$S FEE
The p#rpose of the provision is to prevent imposition
on the &or'ers of the d#ty to individ#ally contri#te
their respective shares in the fee to e paid the
attorney for his services on ehalf of the #nion in its
ne!otiations &ith the mana!ement. The oli!ation to
pay the attorneyPs fees elon!s to the #nion and
cannot e sh#nted to the &or'ers as their direct
responsiility.
I.0 Ne!otiation Eee
The 0?1 ne!otiation fee &hich covers attorney:s
fees" a!ency fee" and the li'e is ased on the
amo#nt of ac'&a!es receivale #nder the +BA
&hich is eyond &hat the la& !rants.
3? D C L A T O N
LABOR RELATIONS
I.3 Eor Services Rendered y Hnion Officers
Article 333 ,6 prohiits attorneyPs fees" ne!otiations
fees and similar char!es arisin! o#t of the
concl#sion of a collective ar!ainin! a!reement from
ein! imposed on any individ#al #nion memer. The
collection of the special assessment partly for the
payment for services rendered y #nion officers"
cons#ltants and others may not e in the cate!ory of
FattorneyPs fees or ne!otiations fees.F B#t there is no
(#estion that it is an e)action &hich falls &ithin the
cate!ory of a Fsimilar char!e"F and" therefore" &ithin
the covera!e of the prohiition in the aforementioned
article.
77777777
Chapter III
APPEAL
Art. 33-. Appeal. =ecisions" a&ards" or orders of the
Laor Ariter are final and e)ec#tory #nless
appealed to the +ommission y any or oth parties
&ithin ten ,0?6 calendar days from receipt of s#ch
decisions" a&ards" or orders. S#ch appeal may e
entertained only on any of the follo&in! !ro#nds:
a. If there is prima facie evidence of a#se of
discretion on the part of the Laor Ariter$

. 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 irreparale 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#tale 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 Laor Ariter
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.
To disco#ra!e frivolo#s or dilatory appeals" the
+ommission or the Laor Ariter shall impose
reasonale 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 Laor 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$S DECISION
If any !ro#nds mentioned in this Article e)ists" the
losin! party may appeal the Laor Ariter:s decision
to the NLR+ &ithin ten ,0?6 days from receipt of the
decision.
0.0 Einal =ecision +annot Be Amended
If not appealed on time" the Laor Ariter:s decision
ecomes final and cannot e amended.
The perfection of an appeal &ithin the stat#tory or
re!lementary period is not only mandatory #t also
%#risdictional and fail#re to do so renders the
(#estioned decision final and e)ec#tor" th#s
deprivin! the appellate co#rt of %#risdiction to alter
the final %#d!ment" m#ch less entertain the appeal.
2. PERIOD TO APPEAL FRO- LABOR ARBITER
3.0 Ten +alendar =ays
A period of ten ,0?6 days from receipt of any order is
!ranted to either or to oth parties involved to appeal
to the National Laor Relations +ommission.
After mat#re and caref#l delieration" ;e have
arrived at the concl#sion that the shortened period of
ten ,0?6 days fi)ed y Article 33- contemplates
calendar days and not &or'in! days. ;e are
pers#aded to this concl#sion" if only eca#se ;e
elieve that it is precisely in the interest of laor that
the la& has commanded that laor cases e
promptly" if not peremptorily" dispose of.
30 D C L A T O N
LABOR RELATIONS
This +o#rt reiterates the doctrine en#nciated in said
case that the 0?*day period provided in Art. 33- of
the Laor +ode refers to 0? calendar days and not
0? &or'in! days. This means that Sat#rdays"
S#ndays and Le!al Nolidays are not to e e)cl#ded"
#t incl#ded" in co#ntin! the 0?*day period. This is in
line &ith the o%ective of the la& for speedy
disposition of laor cases &ith the end in vie& of
protectin! the interests of the &or'in! man.
3.3 Ten*+alendar*=ay R#le Not Applicale Crior to
Air*@en +ase
3.- Hnder the 3??1 NLR+ R#les of Croced#re
Section 0. Ceriods of Appeal. * =ecisions" resol#tions or
orders of the Laor Ariter shall e final and e)ec#tory
#nless appealed to the +ommission y any or oth parties
&ithin ten ,0?6 calendar days from receipt thereof$ and in
case of decisions" resol#tions or orders of the Re!ional
=irector of the =epartment of Laor and Employment
p#rs#ant to Article 034 of the Laor +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.I =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 Eail#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.
'. %RO/NDS OF APPEAL
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 Laor Ariter 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$
c6 If made p#rely on (#estions of la&$ andGor
d6 If serio#s errors in the findin!s of facts are raised &hich"
if not corrected" &o#ld ca#se !rave or irreparale dama!e
or in%#ry to the appellant.
). #(ERE TO FILE APPEAL
Section -. ;here Eiled. * The appeal shall e filed &ith the
Re!ional Aritration Branch or Re!ional Office &here the
case &as heard and decided.
0. RE2/ISITES FOR PERFECTION OF APPEAL
Section I. re(#isites Eor 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 I" 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$ I6 in three ,-6 le!ily 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 Aritration
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.
Eail#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 Laor
+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 AI of the NLR+ R#les of Croced#re
empo&ers not only the +ommission #t also the
Laor Ariter to impose reasonale 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 Laor*Ariter" 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 Eee. * The appellant shall pay an appeal
fee of One N#ndred Eifty Cesos ,C01?.??6 to the Re!ional
Aritration 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 BOND; FILIN% ON TI-E;
E8CEPTIONS
Section .. Bond. * In case the decision of the Laor Ariter
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#tale 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
acceptale sec#rity$
d6 a certificate of a#thority from the Ins#rance
+ommission$
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 aove*
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 responsile parties and their co#nsels" or
s#%ect them to reasonale 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 reasonale 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 laor ariter: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 reasonale
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 8Eilin!9 and 8Cerfection9
of Appeal$ Star An!el =ecision" Not 8Aenerale9
5.I 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
exclui!e o% #oral and exe#$lar+ da#age a ,ell
a a""orne+- %ee.
3- D C L A T O N
LABOR RELATIONS
5.1 Is Croperty Bond AcceptaleR OES.
5.. S#persedeas Bond
S#stantial %#stice demands that it f#lfill its
commitment to post the ond in order to stay
e)ec#tion of the %#d!ment a!ainst it pendin!
resol#tion of the appeal therefrom. This
consideration cannot e o#t&ei!hed y the claim
that proced#ral errors &ere committed y the Laor
Ariter.
6. RECORDS AND TRANS-ITTAL
Section /. Records of +ase on Appeal. * The records of a
case shall have a correspondin! inde) of its contents
&hich shall incl#de the follo&in!: a6 the ori!inal copy of the
complaint$ 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 availale$ 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 availale$ !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 ,I56 ho#rs after the filin! of the appeal"
the records of the case shall e transmitted y the
Re!ional Aritration Branch or office of ori!in to the
+ommission.
17. EFFECT OF APPEAL OF ARBITER$S
DECISION
Section 4. Cerfection Of Appeal$ Effect. * ;itho#t pre%#dice
to immediate reinstatement pendin! appeal #nder Section
. of R#le SI" once an appeal is filed" the Laor Ariter
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 disoeys the directive #nder the second
para!raph of Section 0I of R#le A or ref#ses to reinstate
the dismissed employee" the Laor Ariter 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 oey the
same. If he disoeys the &rit" s#ch employer or person
may e cited for contempt in accordance &ith R#le IS.
0?.3 Effect of Cerfection of Appeal on E)ec#tion
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 Laor Ariter on appeal" e)cept e)ec#tion
for reinstatement pendin! appeal.
11. FRIVOLO/S OR DILATORY APPEALS
Section 0?. Erivolo#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 reasonale 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 Laor Ariters shall apply to appeals
to the +ommission from decisions or orders of the other
offices or a!encies appealale to the +ommission
accordin! to la&.
1'. PROCEEDIN% BEFORE T(E CO--ISSION
Section 3. +omposition and Internal E#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 Aritration 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 memer from the p#lic
sector &ho shall act as the Cresidin! +ommissioner and
one memer each from the &or'ers and employers
sectors" respectively.
Section I. +ommission En Banc Session" B#or#m and
Aote. * 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 memership 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 otained"
the +hairman shall desi!nate s#ch n#mer of additional
+ommissioners from the other =ivisions as may e
necessary from the same sector.
3I 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 delierations" if in his %#d!ment" his
presence therein &ill est serve the interests of laor
%#stice. Ne 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 asence of the re!#lar
Cresidin! +ommissioner
0-.0 Iss#es on Appeal
Section I,d6 R#le AI 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 reasonale 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 laor cases. In fact"
laor officials are mandated y the Laor +ode to
#se every and all reasonale 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.
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 amicale
settlement of a laor 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-.I +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
memer 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.
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 memer of a
=ivision indicate his intention to &rite a dissentin! opinion"
he may file the same &ithin the period prescried 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 Inhiition
Section /. Inhiition. * No motion to inhiit the entire
=ivision of the +ommission shall e entertained. No&ever"
any +ommissioner may inhiit 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
%#stifiale !ro#nds therefor. In the event that a memer
inhiits 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 inhiit themselves in a case or matter efore
it" the +hairman shall" as far as practicale" appoint t&o
,36 +ommissioners from other =ivisions representin! the
sector of the +ommissioners &ho inhiited themselves.
1). FOR- OF DECISION3 RESOL/TION AND
ORDER
Section 0-. Eorm of =ecision" Resol#tion and Order. * The
decision" resol#tion and order of the +ommission shall
state clearly and distinctly the findin!s of facts" 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.
The decision of the +ommission shall e final and
e)ec#tory after ten calendar days from receipt
thereof y the parties.
0I.0 Reasoned Reversal
;hile it is &ithin respondent +ommissionPs
competence" as an appellate a!ency revie&in!
decisions of Laor Ariters" to disa!ree &ith and set
aside the latterPs findin!s" it stands to reason that it
sho#ld state an acceptale ca#se therefor. It &o#ld
other&ise e a &himsical" capricio#s" oppressive"
illo!ical" #nreasonale 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
LABOR RELATIONS
0I.3 E)tended 2eanin! of 8Appeal9 #nder Article
33-$ NLR+ 2ay Iss#e ;rit of Cer"iorari
10. FINALITY OF DECISION OF T(E
CO--ISSION AND ENTRY OF 4/D%-ENT
Section 0I. Einality Of =ecision Of The +ommission And
Entry Of @#d!ment. * a6 Einality of the =ecisions"
Resol#tions or Orders of the +ommission. * E)cept as
provided in Section 4 of R#le S" 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 asence of ret#rn cards" certifications from
the post office" or other proof of service to parties.
15. -OTION FOR RECONSIDERATION
Section 01.2OTIONS EOR 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 palpale 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 Eailed to Appeal on Time Erom
=ecision of Laor Ariter 2ay Still Eile 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 laor ariter may not
e raised for the first time on appeal.
1+. CERTIFIED CASES
1*. APPEAL FRO- T(E NATIONAL LABOR
RELATIONS CO--ISSION
05.0 Revie& y Cer"iorari y the +o#rt of Appeals$
St. 2artin case
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 Eile Cetition
Section I. ;hen and &here petition filed. < The
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 day
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!anayan 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!nizale 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. ,Ia6 ,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 oserved.
Re!lementary periods are indispensale
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 I1 and in ori!inal civil
actions for cer"iorari #nder R#le .1 in relation to
R#les I. 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
LABOR RELATIONS
(#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.I Appeal to Laor Secretary Aolished
Cresidential =ecree No. 0-40 amended Article 33-
and aolished appeals to the Secretary of Laor.
05.1 >ro#nds for Cer"iorari
A party may seasonaly 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! Tfinal: the
decisions of certain administrative a!encies" the
S#preme +o#rt Lor +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 aritrary 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
availale only and restrictively in tr#ly e)ceptional
cases. The sole office of the &rit of certiorari is the
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
Laor &ere eliminated" presently there are several
instances in the Laor +ode and its implementin!
and related r#les &here an appeal can e filed &ith
the Office of the Secretary of Laor or the Secretary
of Laor 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 0I 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
appealale to the Secretary of Laor &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
inappealale.
,36 Art. 035 of the Laor +ode provides that an order
iss#ed y the d#ly a#thorized representative of the
Secretary of Laor in laor standards cases
p#rs#ant to his visitorial and enforcement po&er
#nder said article may e appealed to the Secretary
of Laor.
Sec. 3 in relation to Section - ,a6" R#le S" 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 laor standards provisions
of the +ode and other laor le!islation. Section I !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 IA ,Appeals6 of the R#les on the =isposition
of Laor Standards +ases in the Re!ional Offices dated
Septemer 0." 045/ 01 provides that the order of the
Re!ional =irector in laor standards cases shall e final
and e)ec#tory #nless appealed to the Secretary of Laor.
Sec. 1" R#le A ,E)ec#tion6 provides that the decisions"
orders or resol#tions of the Secretary of Laor 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 AI ,Nealth and Safety +ases6 provides that
the Secretary of Laor 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 Laor
Relations =ivision in the re!ional office denyin! an
applicant laor 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
Laor Relations &ithin ten ,0?6 days from receipt of
notice thereof.
Sec. I" R#le A" Boo' A ,Laor 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 Laor 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 Laor Relations if it has
reason to elieve" after d#e hearin!" that the said
laor or!anization no lon!er meets one or more of
the re(#irements prescried y la&.
Sec. I" R#le AIII" Boo' A provides that the decision of the
Re!ional Office or the =irector of the B#rea# of Laor
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 Laor" as the case may e"
&hose decision shall e final and e)ec#tory.
,I6 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*Ariter directly to
the Secretary of Laor &ho shall decide the same
&ithin fifteen ,016 calendar days.
Sec. 03" R#le SI" Boo' A provides that the decision of the
2ed*Ariter on the petition for certification election may e
appealed to the Secretary.
Sec. 01" R#le SI" Boo' A provides that the decision of the
Secretary of Laor on an appeal from the 2ed*AriterPs
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.
Sec. 01" R#le SII" Boo' A provides that the decision of the
2ed*Ariter 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 SAIII ,Administration of Trade Hnion E#nds
and Actions Arisin! Therefrom6" Boo' A 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 Laor &ithin ten ,0?6 days
from receipt of the parties of a copy thereof.
Sec. 0" R#le SSIA ,E)ec#tion of =ecisions" A&ards" or
Orders6" Boo' A provides that the decision of the
Secretary of Laor 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' A.
,16 Art. 3.- provides that the Secretary of Laor
shall decide or resolve the laor disp#te over &hich
he ass#med %#risdiction &ithin thirty ,-?6 days from
the date of the ass#mption of %#risdiction. Nis
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
seasonaly 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 seasonaly 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. Eail#re to do so
is fatal.
05.0? E)ceptions
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 ,I6 &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.
16. CERTIFICATION OF NON.FOR/- S(OPPIN%
Eor#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#rale r#lin!.
In relation thereto" R#le /" Section 1 of the R#les of
+o#rt provides:
+ertification a!ainst for#m shoppin!.<The plaintiff or
principal party shall certify #nder oath in the complaint or
other initiatory pleadin! assertin! a claim for relief" or in a
s&orn certification anne)ed thereto and sim#ltaneo#sly
filed there&ith:
,a6 that he has not theretofore commenced any action or
filed any claim involvin! the same iss#es in any co#rt"
tri#nal or (#asi*%#dicial a!ency and" to the est of his
'no&led!e" no s#ch other action or claim is pendin!
therein$
,6 if there is s#ch other pendin! action or claim" a
complete statement of the present stat#s thereof$ and
,c6 if he sho#ld thereafter learn that the same or similar
action or claim has een filed or is pendin!" he shall report
that fact &ithin five ,16 days therefrom to the co#rt &herein
his aforesaid complaint or initiatory pleadin! has een
filed.
Eail#re to comply &ith the fore!oin! re(#irements
shall not e c#rale 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 delierate 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
3?.3 =ismissal of Appeal
3?.- Eindin!s of Eacts >enerally Einal
As a !eneral r#le" the findin!s of administrative
a!encies are accorded not only respect #t even
finality.
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 estalished. No&ever" in the same
&ay that the findin!s of facts #ns#pported y
s#stantial and credile evidence do not ind the
S#preme +o#rt Lor +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 laor
ariter" especially if the findin!s of NLR+ ased on
practically the same facts estalished in the hearin!s
efore the ariter are spec#lative and con%ect#ral
3?.I 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"
as#rd" or impossile$
,-6 &hen there is !rave a#se of discretion$
,I6 &hen the %#d!ment is ased on a
misapprehension of facts$
,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 asence 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
3?.1 E)amples: Some Eindin!s of Eacts Reversed
21. FRO- CA TO SC1 ONLY 2/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.
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 I1 that the petitioner already lost.
77777777
Art. 33I. E)ec#tion of decisions" orders or a&ards.
a. The Secretary of Laor and Employment or any
Re!ional =irector" the +ommission or any Laor
Ariter" or 2ed*Ariter or Aol#ntary Aritrator 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 Laor and
Employment or re!ional director" the +ommission"
the Laor Ariter or med*ariter" or vol#ntary
aritrators. In any case" it shall e the d#ty of the
responsile officer to separately f#rnish immediately
the co#nsels of record and the parties &ith copies of
said decisions" orders or a&ards. Eail#re to comply
&ith the d#ty prescried herein shall s#%ect s#ch
responsile officer to appropriate administrative
sanctions.

. The Secretary of Laor 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 Laor Ariters and
vol#ntary aritrators" 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. 33I" 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 Laor and Employment$
6 any Re!ional =irector$
c6 the +ommission$
d6 the Laor Ariter$
e6the 2ed*Ariter$
f6 the Aol#ntary Aritrator$ or
!6 the Canel of Aritrators.
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 Laor Ariter" the Re!ional
=irector or the =irector of the B#rea# of Laor
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 33I 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 Einality 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 0I of R#le AII.
6 No motion for e)ec#tion shall e entertained nor a &rit
of e)ec#tion e iss#ed #nless the Laor Ariter 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 0I of
R#le A and Section . of this R#le" and in those cases
&here partial e)ec#tion is allo&ed y la&" the Laor Ariter
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 Laor Ariter 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 -. Eorm 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
Laor Ariter re(#irin! the Sheriff to e)ec#te the decision"
order" or a&ard of the +ommission or Laor Ariter" 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 oey the same.
Section I. +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 Laor Ariter
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 oey 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 Aritration
Branch" or &ith an a#thorized depositary an'. ;here
payment is made in the form of a chec'" the same shall e
payale 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 asence of applicale 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 B#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
Laor Ariter &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" compellale y mandam#s.
). %ENERAL R/LE1 RE%IONAL TRIAL CO/RT
CANNOT ISS/E IN4/NCTION A%AINST NLRC
Crecedents ao#nd confirmin! the r#le that said
co#rts have no laor %#risdiction to act on laor
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 laor official
concerned #nder the =epartment of Laor and
Employment. To hold other&ise is to sanction split
%#risdiction &hich is ono)io#s to the orderly
administration of %#stice.
I.0 E)ec#tion Over Croperty O&ned Only y
@#d!ment =etor$ Remedies of Third Carty
+laimant$ The O#pan!co +ase
A third party &hose property has een levied #pon
y a sheriff to enforce a decision a!ainst a %#d!ment
detor 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 Eile a third party claim &ith the sheriff of the Laor
Ariter" 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#itale to vindicate Phis claim to
the property.
B#ite ovio#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 aove 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.
I.3 RT+ In%#nction a!ainst Laor Ariter 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
laor ariter 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.
I.- 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 Laor
Ariter &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 Laor Ariter &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 AI" &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 Laor Ariter 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.
I.I Sim#lated Sale" Aoid 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 Laor.
In the e)ercise of his po&ers #nder this +ode" the
Secretary of Laor 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 Laor Relations. The B#rea# of
Laor Relations and the Laor Relations =ivisions in
the re!ional offices of the =epartment of Laor" 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 prolems arisin! from
or affectin! laor*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 aritration.
The B#rea# shall have fifteen ,016 &or'in! days to
act on laor cases efore it" s#%ect to e)tension y
-3 D C L A T O N
LABOR RELATIONS
a!reement of the parties. ,As amended y Section
0I" Rep#lic Act No. ./01" 2arch 30" 04546.
77777777
1. BLR 4/RISDICTION
The B#rea# of Laor Relations ,BLR6 no lon!er
handles 8all9 laor*mana!ement disp#tes$ rather" its
f#nctions and %#risdiction are lar!ely confined to
#nion matters" collective ar!ainin! re!istry" and
laor ed#cation.
Section 0.. B#rea# of Laor Relations. * The B#rea# of
Laor Relations shall set policies" standards" and
proced#res on the re!istration and s#pervision of
le!itimate laor #nion activities incl#din! denial"
cancellation and revocation of laor #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 laor or!anizations to
determine compliance &ith relevant la&s.
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 laor #nions involvin!
representation (#estions for p#rposes of collective
ar!ainin! or to any other conflict or disp#te
et&een le!itimate laor #nions.
FIntra*Hnion =isp#teF refers to any conflict et&een
and amon! #nion memers" incl#din! !rievances
arisin! from any violation of the ri!hts and conditions
of memership" 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 memers$ in a 8related laor
relations disp#te9 the complaint may e filed y a
party*in*interest &ho is not necessarily a #nion or
#nion memer.
;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 laor 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. I?*?-
The Order appears to aim the follo&in! specific
o%ectives:
0. to simplify the formation and re!istration of
#nions" especially chartered locals
3. to simplify and e)pedite the holdin! of certification
elections
-. to promote responsile #nionism" partic#larly in
administration of #nion f#nds
I. to a#thorize #nion mer!er" consolidation" and
chan!e of name
1. to a#thorize dere!istration of collective ar!ainin!
a!reements
3.3 Effect of Cendency
Section -. Effects of the filin!Gpendency of interGintra*#nion
and other related laor relations disp#tes. * The ri!hts"
relationships and oli!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*Ariter 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 ,3I6 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. Einality of =ecision. * ;here no appeal is filed
&ithin the ten*day period" the B#rea# and Re!ional
=irector or 2ed*Ariter" 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.
-- D C L A T O N
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 2edAriter 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. Einality 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*Ariter 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.
'. 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 laor" 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 NOT
APPLICABLE TO LABOR DISP/TES
Cresidential =ecree No. 01?5 applies only to co#rts
of %#stice and not to laor relations commissions or
laor aritrators: offices.
No"e: +onciliation*mediation is no& done y N+2A
not BLR.
Instead of simplifyin! laor 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
laor case.
77777777
Art. 33/. +ompromise a!reements. Any compromise
settlement" incl#din! those involvin! laor 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 Laor" shall e final and indin! #pon
the parties. The National Laor 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 otained
thro#!h fra#d" misrepresentation" or coercion.
77777777
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 $ri#a %acie evidence that the settlement
&as otained thro#!h fra#d" misrepresentation" or
coercion.
Alon! the same line" the +o#rt reiterated in 3??1:
There are le!itimate &aivers that represent a vol#ntary
and reasonale settlement of a &or'er:s claim &hich
sho#ld e respected y the co#rts as the la& et&een the
parties. Indeed" not all (#itclaims are per se invalid or
a!ainst p#lic policy" e)cept ,06 &here there is clear proof
that the &aiver &as &an!led from an #ns#spectin! or
!#llile person" or ,36 &here the terms of settlement are
#nconscionale on their faces$ in these cases" the la& &ill
step in to ann#l the (#estionale 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 RE2/IRE-ENTS OF CO-PRO-ISE
A%REE-ENT
+ompromise a!reements involvin! laor 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 2/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
responsiilities. On the other hand" there are
-I D C L A T O N
LABOR RELATIONS
le!itimate &aivers that represent a vol#ntary
settlement of laorerPs 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 reasonale
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 !#llile
person" or the terms of settlement are
#nconscionale on its face" that the la& &ill step in
to ann#l the (#estionale 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
credile and reasonale" the transaction m#st e
reco!nized as a valid and indin! #nderta'in!.
). CO-PRO-ISE S(O/LD BE D/LY
A/T(ORI&ED
The a#thority to compromise cannot li!htly e
pres#med and sho#ld e d#ly estalished y
evidence.
0. R/LIN%S ON CO-PRO-ISE SETTLE-ENTS
S/--ARI&ED
5. #(EN TO EFFECT CO-PRO-ISE1 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 CO-PRO-ISE
A%REE-ENTS IS VIOLATED
Hnder Article 3?I0 of the +ivil +ode" sho#ld a party
fail or ref#se to comply &ith the terms of a
compromise or amicale 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
LArt. 335. Indorsement of cases to Laor Ariters.
a. E)cept as provided in para!raph ,6 of this Article"
the Laor Ariter shall entertain only cases endorsed
to him for comp#lsory aritration y the B#rea# or y
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.

. 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 Laor Ariter"
e)cept deadloc's in collective ar!ainin!.M,Repealed
y Section 0." Batas Camansa 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 laor disp#te #nder its
%#risdiction" either at the re(#est of any interested
party or at its o&n initiative.
77777777
Art. 3-?. Appointment of #rea# personnel. The
Secretary of Laor and Employment may appoint" in
addition to the present personnel of the B#rea# and
the Ind#strial Relations =ivisions" s#ch n#mer 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 laor 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 laor
disp#tes and copies of orders and decisions of
vol#ntary aritrators. The file shall e open and
accessile to interested parties #nder conditions
prescried y the Secretary of Laor 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 Laor 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
-1 D C L A T O N
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 Laor and Employment for the effective and
efficient administration of the Aol#ntary Aritration
Cro!ram. Any amo#nt collected #nder this provision
shall accr#e to the Special Aol#ntary Aritration
E#nd.
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
Laor and Employment" Re!ional =irectors and the
+ommission. ,As amended y Section 01" Rep#lic
Act No. ./01" 2arch 30" 04546
77777777
RE%ISTRY OF /NIONS AND CBA,
The B#rea# shall 'eep a re!istry of le!itimate laor
or!anizations.
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. Crohiition 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#ment #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" ovio#sly" is to minimize
#nion 8politic'in!9 #ntil the proper time comes.
77777777
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
Art. 3-I. 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 laor
or!anizations #pon iss#ance of the certificate of
re!istration ased on the follo&in! re(#irements:
,a6 Eifty pesos ,C1?.??6 re!istration fee$
,6 The names of its officers" their addresses" the
principal address of the laor 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$
,c6 In case the applicant is an independent #nion"
the names of all its memers 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 Eo#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 memers &ho
participated in it. ,As amended y Rep#lic Act No.
4I50" 2ay 31" 3??/6
77777777
Art. 3-I*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 estalishment 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 laor 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 Laor 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 estalishment 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 memers in each company involved.
77777777
LArt. 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 prescried 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 prescried
y the Secretary of Laor.
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" =ecemer
3I" 045.6
77777777
1. LABOR OR%ANI&ATION1 T#O BROAD
P/RPOSES
A 8laor 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.
FLaor 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 Laor Or!anizationF refers to any laor
or!anization in the private sector re!istered or
reported &ith the =epartment in accordance &ith
R#les III and IA of these R#les.
FHnionF refers to any laor 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 laor #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 memers 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 memers 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 laor or!anization after re!isterin!
itself &ith the =epartment of Laor 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 Laor and
Employment.
2. CLASSIFICATION OF LABOR
OR%ANI&ATIONS
FNational HnionGEederationF means any laor
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 laor
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. I?*?-"
ho&ever" does not carry this term and this definition"
altho#!h #nder R#le III" Section 3*B" 8laor
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 memers" for
assistin! s#ch memers 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 laor or!anization &hich" in
&hole or in part" is employer*controlled or employer*
denominated. Article 3I5,d6 prohiits ein! a
company #nion.
3.0 Hnions at Enterprise Level
A laor #nion at the enterprise level may e created
either y ,a6 independent re!istration or ,6
charterin!. Independent re!istration is otained 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 laor or!anization
operatin! at the enterprise level that ac(#ired le!al
personality thro#!h independent re!istration #nder Article
3-I of the Laor +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 laor or!anization may e re!istered or not. If
re!istered &ith =OLE" it is considered 8le!itimate
laor or!anization9 ,LLO6. B#t the reverse #s not
tr#e" that is" a laor 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 laor
or!anizations" associations or #nions and the
possession of the ri!hts and privile!es !ranted y
la& to le!itimate laor or!anizations.
S#ch re(#irement is a valid e)ercise of the police
po&er" eca#se the activities in &hich laor
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 laor 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 laor or!anization.
). #(ERE TO RE%ISTER
Applications for re!istration of independent laor
#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 appealale to the B#rea# and from there to
the +o#rt of Appeals ,not to the Secretary of Laor6
if proper !ro#nds e)ist.
0. RE%ISTRATION RE2/IRE-ENTS
1.0 Independent Laor Hnion
Section 3. Re(#irements for application. * A. The
application for re!istration of an independent laor #nion
shall e accompanied y the follo&in! doc#ments:
,a6 the name of the applicant laor #nion" its principal
address" the name of its officers and their respective
addresses" appro)imate n#mer 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 memers 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 memers" 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 memers &ho
participated in it. The list of ratifyin! memers 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 Eederation or National Hnion
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 laor
#nion" its principal address" the name of its officers and
their respective addresses$
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
,d6 the applicant #nionPs constit#tion and y*la&s" min#tes
of its adoption or ratification" and the list of the memers
&ho participated in it. The list of ratifyin! memers 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
laor 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 estalishment &here it
see's to operate$ and
,f6 the name and addresses of the companies &here the
affiliates operate and the list of all the memers in each
company involved.
Laor 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
,a6 the name of the applicant association" its principal
address" the name of its officers and their respective
addresses$
list of memers &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
,d6 the applicantPs constit#tion and y*la&s to &hich m#st
e attached the names of ratifyin! memers" 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
LABOR RELATIONS
1.I +hartered Local
1.Ia ;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.I ;hen =oes a +hartered Local Ac(#ire Le!al
Cersonality #nder =.O. No. I?" Series of 3??-
Section 5. Effect of re!istration. * The laor #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. I?*=*?1" s#pplementin! =.O. No.
I?*?-" 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.Ic Reco!nition y BLR not a 2inisterial =#ty
1.Id +hartered Local Nas to e Re!istered$
Re(#irements
1.Ie 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 estalishment 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.
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 I?*B*?-.6
1.If Re(#irements Rela)ed
The creation of a local does not need s#scription y
a minim#m n#mer of memers. The 3? percent
initial memership mentioned in Article 3-I,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 SIA of these R#les" and not y
&ay of collateral attac' in petition for certification election
proceedin!s #nder R#le AIII.
5. COLLECTIVE BAR%AININ% /NIT <CB/=
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 memers 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" laor #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 memers therey" provided they are
reasonale" #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 laor #nion" &hether
called a constit#tion" charter" y*la&s" or any other
name" constit#tes a contract et&een the memers
&hich the co#rts &ill enforce" if not immoral or
contrary to p#lic policy or the la& of the land.
A #nion:s constit#tion and y*la&s !overn the
relationship et&een and amon! its memers. 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.
/.0 Limitation to By*la&s
I? D C L A T O N
LABOR RELATIONS
Hnder Art. 3-I,e6 it is implied that the memers 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
asence 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 memers or its constit#ent ody.
Hnder Art. 3I0,d6" ma%or policy (#estions are to e
delierated #pon and decided y secret allot y the
memers.
*. PROVISIONS CO--ON TO T(E
RE%ISTRATION OF LABOR OR%ANI&ATIONS
AND #ORKER$S ASSOCIATION
5.0 Attestation" Eee" +opies of =oc#ments
Section 0. Attestation re(#irements. * The application for
re!istration of laor #nions and &or'ersP associations"
notice for chan!e of name" mer!er" consolidation and
affiliation incl#din! all the accompanyin! doc#ments" shall
e certified #nder oath y its Secretary or Treas#rer" as
the case may e" and attested to y its Cresident.
Section -. Accompanyin! doc#ments. * One ,06 ori!inal
copy and t&o ,36 d#plicate copies of all doc#ments
accompanyin! the application or notice shall e s#mitted
to the Re!ional Office or the B#rea#.
5.3 Action on the ApplicationGNotices
Section I. Action on the applicationGnotice. * The Re!ional
Office or the B#rea#" as the case may e" shall act on all
applications for re!istration or notice of chan!e of name"
affiliation" mer!er and consolidation &ithin ten ,0?6 days
from receipt either y: ,a6 approvin! the application and
iss#in! the certificate of re!istrationGac'no&led!in! the
noticeGreport$ 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 applicantGlaor or!anization
concerned in &ritin! of the necessary re(#irements and
complete the same &ithin thirty ,-?6 days from receipt of
notice. ;here the applicantGlaor or!anization concerned
fails to complete the re(#irements &ithin the time
prescried" 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 .. Eorm 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.I Appeal
Section .. Eorm 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
,3I6 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#mer 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
laor 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
I0 D C L A T O N
LABOR RELATIONS
independently re!istered laor #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 laor #nions &ith a
federation or national #nion shall e accompanied y the
follo&in! doc#ments:
,a6 resol#tion of the laor #nionPs oard of directors
approvin! the affiliation$
,6 min#tes of the !eneral memership meetin! approvin!
the affiliation$
,c6 the total n#mer of memers comprisin! the laor
#nion and the names of memers &ho approved the
affiliation$
,d6 the certificate of affiliation iss#ed y the federation in
favor of the independently re!istered laor #nion$ and
,e6 &ritten notice to the employer concerned if the
affiliatin! #nion is the inc#ment ar!ainin! a!ent.
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.
Oet 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.
To disaffiliate is a ri!ht" #t to oserve the terms of
affiliation is an oli!ation
0?.0 Local Hnion is the Crincipal" Eederation the
A!ent
=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 memers of the local #nion did not
form a ne& #nion #t merely e)ercised their ri!ht to
re!ister their local #nion.
0?.3 ;hen to =isaffiliate
;hile it is tr#e that a local #nion is free to serve the
interest of all its memers and en%oys the freedom to
disaffiliate" s#ch ri!ht to disaffiliate may e e)ercised
and is th#s considered a protected laor activity only
&hen &arranted y circ#mstances. >enerally" a
laor #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.
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
memers in the ar!ainin! #nit.
This r#lin! is tr#e ONLO if the contract of affiliation
does not specify the period for possile disaffiliation.
0?.- =isaffiliation m#st e y 2a%ority =ecision
Article 3I0,d6 applies to disaffiliation" th#s" it has to
e decided y the entire memership thro#!h secret
allotin!.
0?.I =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 laor
or!anization. It cannot file a petition for certification
election.
0?.1 =isaffiliation: Effect on Hnion =#es
The oli!ation of an employee to pay #nion d#es is
cotermino#s &ith his affiliation or memership.
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 memers.
0?.. =isaffiliation: Effect on E)istin! +BA$ the
8S#stit#tionary9 =octrine
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.
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
I3 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
Eederation 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 laor
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 laor or!anizations" the le!al
e)istence of the asored laor or!anization,s6 ceases"
&hile the le!al e)istence of the asorin! laor
or!anization s#sists. All the ri!hts" interests and
oli!ations of the asored laor or!anizations are
transferred to the asorin! or!anization.
;here there is consolidation" the le!al e)istence of the
consolidatin! laor or!anizations shall cease and a ne&
laor or!anization is created. The ne&ly created laor
or!anization shall ac(#ire all the ri!hts" interests and
oli!ations of the consolidatin! laor 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!eR They mer!e for reasons
similar to those ehind corporate mer!ers.
Eirst" 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 memers may mer!e in order to
eliminate inter*or!anizational conflicts.
Third" #nions &hose memers: 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 Laor
Or!anizations:$ ;here to Eile
Section 5. Notice of 2er!erG+onsolidation of laor
or!anizations$ ;here to file. * Notice of mer!er or
consolidation of independent laor #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! laor 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 of Notice of
2er!erG+onsolidation
The notice of mer!er of laor or!anizations shall e
accompanied y the follo&in! doc#ments:
,a6 the min#tes of mer!er convention or !eneral
memership meetin!,s6 of all the mer!in! laor
or!anizations" &ith the list of their respective memers
&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 laor or!anizations shall
ear the re!istration n#mer of one of the mer!in! laor
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 laor or!anization$ ,6 the
fact that it is a mer!er of t&o or more laor or!anizations$
,c6 the name of the laor or!anizations that &ere mer!ed$
,d6 its office or #siness address$ and ,e6 the date &hen
each of the mer!in! laor or!anization.
1'. C(AN%E OF NA-E
Section -. Notice of chan!e of name of laor
or!anizations$ ;here to file. * The notice for chan!e of
name of a re!istered laor or!anization shall e filed &ith
the B#rea# or the Re!ional Office &here the concerned
laor or!anizationPs certificate of re!istration or certificate
of creation of a chartered local &as iss#ed.
Section I. Re(#irements for notice of chan!e of name. *
The notice for chan!e of name of a laor or!anization
,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 laor or!anization shall not
affect its le!al personality. All ri!hts and oli!ations
of a laor or!anization #nder its old name shall
contin#e to e e)ercised y the laor or!anization
#nder its ne& name.
77777777
I- D C L A T O N
LABOR RELATIONS
Art. 3-5. +ancellation of Re!istration. * The
certificate of re!istration of any le!itimate laor
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. 4I50" 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(#itale
remedies in the appropriate co#rts. ,As amended y
Rep#lic Act No. 4I50" 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 memers &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 Aol#ntary dissol#tion y the memers. ,As
amended y Rep#lic Act No. 4I50" 2ay 31" 3??/6
77777777
Art. 3-4*A. Aol#ntary +ancellation of Re!istration. *
The re!istration of a le!itimate laor or!anization
may e cancelled y the or!anization itself.
Crovided" That at least t&o*thirds of its !eneral
memership 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. 4I50" 2ay 31"
3??/6
77777777
1. CANCELLATION OF RE%ISTRATION;
%RO/NDS
;hile re!istration is the act that converts a laor
or!anization to a le!itimate laor or!anization"
cancellation is the !overnment act that LdivestsM it of
that stat#s. It therey reverts to its character prior to
the re!istration. Altho#!h it does not cease to e)ist
or ecome an #nla&f#l or!anization" its %#ridical
personality as &ell as its stat#tory ri!hts and
privile!es LareM s#spended. It loses entitlement to the
ri!hts en#merated in Article 3I3 of the Laor +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+ao9
F+aoF refers to a person or !ro#p or persons or to a
laor !ro#p &hich" in the !#ise of a laor
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 ostensile 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 laor #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 laor
or!anization or &or'ers association$
,d6 #pdated list of individ#al memers 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
memer 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.
As #nderstood in these R#les" the fiscal year of a laor
or!anization shall coincide &ith the calendar year" #nless
a different period is prescried in the constit#tion and y*
la&s.
Eail#re of the laor or!anization to s#mit the
reports mentioned aove 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.
II 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 3I0" &hich
can only e commenced y memers of the laor
or!anization concerned.
Section -. >ro#nds for cancellation. * The follo&in! shall
constit#te !ro#nds for cancellation of re!istration of laor
or!anizations:
,!6 commission of any of the acts en#merated #nder
Article 3I0 of the Laor +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
memers of the respondent laor 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
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 laor #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.
+ancellation orders iss#ed y the Re!ional =irector
are appealale to the BLR. The latter:s decision is
final and e)ec#tor" hence" not appealale to the
=OLE Secretary #t it may e elevated to the +o#rt
of Appeals y cer"iorari.
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 Laor Relations =ivision of
the Re!ional Office shall ma'e a report of the laor
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 laor
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
&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 laor 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 laor or!anizationPs last 'no&n
address to verify the latterPs e)istence.
77777777
Art. 3I?. E(#ity of the inc#ment. All e)istin!
federations and national #nions &hich meet the
(#alifications of a le!itimate laor 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
Art. 3I0. Ri!hts and conditions of memership in a
laor or!anization. The follo&in! are the ri!hts and
conditions of memership in a laor or!anization:
a. No aritrary or e)cessive initiation fees shall e
re(#ired of the memers of a le!itimate laor
or!anization nor shall aritrary" e)cessive or
oppressive fine and forfeit#re e imposed$

. The memers 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$

c. The memers 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 memership in !ood standin! in
s#%ect laor or!anization. The secretary or any
other responsile #nion officer shall f#rnish the
Secretary of Laor 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 laor
or!anization$ ,As amended y Section 0." Rep#lic
Act No. ./01" 2arch 30" 04546

d. The memers shall determine y secret allot"
after d#e delieration" any (#estion of ma%or policy
I1 D C L A T O N
LABOR RELATIONS
affectin! the entire memership 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 memership$

e. No laor or!anization shall 'no&in!ly admit as
memers or contin#e in memership 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!ile for election
as a #nion officer or for appointment to any position
in the #nion$

!. No officer" a!ent or memer of a laor
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 memer 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 memers 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 prescrie after three ,-6 years from the date of
s#mission of the ann#al financial report to the
=epartment of Laor 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
laor or!anization &hich has s#mitted the financial
report re(#irements #nder this +ode: Crovided"
f#rther" that fail#re of any laor 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
Act shall a#tomatically res#lt in the cancellation of
#nion re!istration of s#ch laor or!anization$ ,As
amended y Section 0." Rep#lic Act No. ./01"
2arch 30" 04546

'. The officers of any laor 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 memers at a !eneral memership 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 Laor 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 laor or!anization and every
officer thereof &ho is responsile 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 memers 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 memers 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 Laor.

m. The oo's of acco#nts and other records of the
financial activities of any laor or!anization shall e
open to inspection y any officer or memer thereof
d#rin! office ho#rs$

n. No special assessment or other e)traordinary fees
may e levied #pon the memers of a laor
or!anization #nless a#thorized y a &ritten
resol#tion of a ma%ority of all the memers in a
!eneral memership 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 memers present" the votes cast" the p#rpose of
the special assessment or fees and the recipient of
I. D C L A T O N
LABOR RELATIONS
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 laor or!anization and
its officers to inform its memers on the provisions of
its constit#tion and y*la&s" collective ar!ainin!
a!reement" the prevailin! laor relations system and
all their ri!hts and oli!ations #nder e)istin! laor
la&s.
Eor this p#rpose" re!istered laor or!anizations may
assess reasonale d#es to finance laor relations
seminars and other laor ed#cation activities.
Any violation of the aove ri!hts and conditions of
memership 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 memers of a #nion or any memer or
memers 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.
+riminal and civil liailities arisin! from violations of
aove ri!hts and conditions of memership 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 3I0.
To democratize the #nions" Article 3I0 re(#ires that
the #nion officers e elected directly y the memers
thro#!h secret allot and that the ma%or policy
decisions" as a r#le" e made y the #nion
memers" a!ain" y secret allot. As in a rep#lic
&here soverei!nty resides in the people" the
memers of the #nion are the 'eepers and
dispensers of a#thority. The !overnin! po&er is the
memers" not the officers.
2. NAT/RE OF RELATIONS(IP BET#EEN /NION
AND ITS -E-EBERS
The #nion has een evolved as an or!anization of
collective stren!th for the protection of laor 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 memers" &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 memers 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
oli!ation of !ivin! the memers as its principals all
information relevant to #nion and laor matters
entr#sted to it.
3.0 =#ty of +o#rt to Crotect Laorers 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 laorers 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 laor. Eair 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 memers and amon! the memers.
'. RI%(TS OF /NION -E-BERS
The ri!hts and conditions of memership laid do&n
in Art. 3I0 may e s#mmarized as follo&s:
,06 Colitical ri!ht K the memer:s ri!ht to vote and e
voted for" s#%ect to la&f#l provisions on
(#alifications and dis(#alifications.
,36 =elierative and decision*ma'in! ri!ht K the
memer:s ri!ht to participate in delierations on
ma%or policy (#estions and decide them y secret
allot.
,-6 Ri!hts over money matters K the memer: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 memer:s &ritten
a#thorization.
,I6 Ri!ht to Information K the memer:s ri!ht to e
informed ao#t the or!anization:s constit#tion and
I/ D C L A T O N
LABOR RELATIONS
y*la&s and the collective ar!ainin! a!reement and
ao#t laor la&s.
Altho#!h not so denominated" Article 3I0 of the
Laor +ode carries the character of a ill of ri!hts of
#nion memers.
-.0 Eli!iility for 2emership
;hen" ho&" and #nder &hat conditions does an
employee ecome a #nion memerR The ans&er
depends on the #nion:s constit#tion and y*la&s
inasm#ch as Article 3I4 !ives a laor or!anization
the ri!ht to prescrie its o&n r#les for ac(#isition or
retention of memership. Nonetheless" #nder Art.
3// an employee is already (#alified for #nion
memership startin! on his first day of service.
B#alifyin! for #nion memership does not
necessarily mean incl#sion in the covera!e of the
+BA. The reverse is e(#ally tr#e: memership in the
+BH does not a#tomatically mean memership in
the #nion.
To s#m #p:
Incl#sion in the +BH depends on the determination
of its appropriateness #nder Art. 3-I and Art. 311.
Incl#sion or memership in a #nion depends on the
#nion:s constit#tion and y*la&s" &itho#t pre%#dice to
Art. 3//,c6.
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 memers
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 SII" Section 06
re(#ire the inc#ment president to create an election
committee &ithin .? days efore e)piration of the
inc#ment officers: term.
If the officers &ith e)pired term do not call an
election" the remedy" accordin! to R#le SII" is for at
least -?U of the memers to file a petition &ith the
=OLE Re!ional Office.
The memer: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.
I.0 Eli!iility of Aoters
Only memers of the #nion can ta'e part in the
election of #nion officers.
Emer in !ood standin! is any person &ho has
f#lfilled the re(#irements for memership in the
#nion and &ho has neither vol#ntarily &ithdra&n
from memership nor een e)pelled or s#spended
from memership after appropriate proceedin!s
consistent &ith the la&f#l provisions of the #nion:s
constit#tion and y*la&s.
A laor or!anization may prescrie reasonale r#les
and re!#lations &ith respect to votin! eli!iility.
A laor 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 oli!ation of memership.
No&ever" this r#le is s#%ect to t&o (#alifications in
that ,a6 any r#le denyin! d#es*delin(#ent memers
the ri!ht to vote m#st e applied #niformly$ and ,6
memers m#st e afforded a reasonale 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 memers of the #nion is not a condition
sine (#a non to enale said memers to vote in the
election of #nionPs officers.
I.3 Hnion Officers 2#st Be an Employee
,f6 No person &ho is not an employee or &or'er of the
company or estalishment &here an independently
re!istered #nion" affiliate" local or chapter of a laor
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.
I.- =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.
I.I 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
I5 D C L A T O N
LABOR RELATIONS
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*Ariter" &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 prescried 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 memers.
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" asent 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 memer. In a case" the +o#rt e)plicitly r#led that a
memer of a laor #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 memer for aritrary or impet#o#s
reason may amo#nt to #nfair laor 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 laor or!anization
proced#res" a case can e filed &ith the B#rea# of
Laor Relations" &hich is a#thorized to hear and
decide cases of this nat#re.
5.0 E)ceptions
;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 memers
are involved" as a condition to the ri!ht to invo'e the
aid of a co#rt.
6. CONSE2/ENCES OF VIOLATION OF RI%(TS
If the conditions of memership" or the ri!ht of the
memers" are violated" the violation may res#lt in the
cancellation of the #nion re!istration or the e)p#lsion
of the c#lpale officers.
Section I. Actions arisin! from Article 3I0. * Any complaint
or petition &ith alle!ations of mishandlin!"
misappropriation or non*acco#ntin! of f#nds in violation of
Article 3I0 shall e treated as an intra*#nion disp#te. It
shall e heard and resolved y the 2ed*Ariter p#rs#ant
to the provisions of R#le SI.
4.0 E)ception: ;hen -?U Not Re(#ired
;hen s#ch violation directly affects only one or t&o
memers" then only one or t&o memers &o#ld e
eno#!h to report s#ch violation.
It states that a report of a violation of ri!hts and
conditions of memership in a laor or!anization
may e made y F,a6t least thirty percent ,-?U6 of all
the memers of a #nion or any memer or memers
specially concerned.
17. VISITORIAL PO#ER
Article 3I/ a#thorizes the Secretary of Laor and
Employment or his d#ly a#thorized representative to
in(#ire into the financial activities of any laor
or!anization on the asis of a complaint #nder oath"
s#pported y 3? percent of the memership 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 prescried 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 oli!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.
I4 D C L A T O N
LABOR RELATIONS
ART. 3I0. Ri!hts and conditions of memership in a laor
or!anization. < The follo&in! are the ri!hts and
conditions of memership in a laor 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
amicale 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 aritration9 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 memers. Their e)press consent is re(#ired" and
this consent m#st e otained 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 memership
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
memers 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 3I0 of the
Laor +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 otained y the Hnion"
nevertheless there can e no valid chec'*off considerin!
that the ma%ority of the #nion memers 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 Eorms 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 memers. 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.
,I6 C#rpose of the special assessment K Of the stated
p#rposes of the special assessment" as emodied in the
oard resol#tion of the Hnion" only the collection of a
special f#nd for laor 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 memership" 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 Laor +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 Laor +ode.
The contention is impressed &ith merit. Article 333 ,6
prohiits 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 memer. 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 prohiition 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 considerale <
C0"?3/".4I.-- collected from those #nion memers &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 3I0" para!raphs
,n6 and ,o6" and Article 333 ,6 of the Laor +ode.
00.3 Three Re(#isites to +ollect Special Assessment
1? D C L A T O N
LABOR RELATIONS
Article 3I0 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 SII of the +BA" e valid and
#pheld namely: 06 a#thorization y a &ritten
resol#tion of the ma%ority of all the memers at the
!eneral memership 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 Eee
This is the amo#nt" e(#ivalent to #nion d#es" &hich
a non*#nion memer 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. 3I5,e6.
00.I Ille!al +hec'*off >ro#nd for cancellation
00.1 Employer:s Liaility 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 oli!ation to pay #nion d#es and a!ency fees
ovio#sly devolves not #pon the employer" #t the
individ#al employee. It is a personal oli!ation not
demandale from the employer #pon defa#lt or
ref#sal of the employee to consent to a chec'*off.
The only oli!ation of the employer #nder a chec'*
off is to effect the ded#ctions and remit the
collections to the #nion.
00.. @#risdiction Over +hec'*off =isp#tes
The Re!ional =irector of =OLE" not the laor ariter"
has %#risdiction over chec'*off disp#tes.
77777777
Chapter III
RI%(TS OF LE%ITI-ATE LABOR
OR%ANI&ATIONS
Art. 3I3. Ri!hts of le!itimate laor or!anizations. A
le!itimate laor or!anization shall have the ri!ht:
a. To act as the representative of its memers 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!$

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 laor or!anization and its memers$

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 memers" incl#din!
cooperative" ho#sin!" &elfare and other pro%ects not
contrary to la&.
Not&ithstandin! any provision of a !eneral or special
la& to the contrary" the income and the properties of
le!itimate laor 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. 3I3*A. Reportorial Re(#irements. * The
follo&in! are doc#ments re(#ired to e s#mitted to
the B#rea# y the le!itimate laor or!anization
concerned:
,a6 Its constit#tion and y*la&s" or amendments
thereto" the min#tes of ratification" and the list of
memers &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 memers at least once a year or
&henever re(#ired y the B#rea#.
10 D C L A T O N
LABOR RELATIONS
Eail#re to comply &ith the aove re(#irements shall
not e a !ro#nd for cancellation of #nion re!istration
#t shall s#%ect the errin! officers or memers to
s#spension" e)p#lsion from memership" or any
appropriate penalty. ,As amended y Rep#lic Act
No. 4I50" 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 ao#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 laor #nion to represent its
memers a!ainst the employer:s #nfair laor
practices. It can file in their ehalf &itho#t the
c#mersome proced#re of %oinin! each and every
memer as a separate party.
A laor #nion has the re(#isite personality to s#e on
ehalf of its memers 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 2emers =o#tin! Their Hnion
A laor #nion is one s#ch party a#thorized to
represent its memers #nder Article 3I3,a6 of the
Laor +ode &hich provides that a #nion may act as
the representative of its memers for the p#rpose of
collective ar!ainin!. This a#thority incl#des the
po&er to represent its memers 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 memers of the
Hnion is contrary to the policy of the 2a!na +arta of
Laor" &hich promotes the settlement of differences
et&een mana!ement and laor 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
memers 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 laorers 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 laorer 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 laorers 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! laorers ma)im#m protection and
sec#rity.
Hnder the philosophy of collective responsiility" 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 detor" 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
,I6 d#rin! the collective ar!ainin! ne!otiation.
The a#dited statements" incl#din! the alance sheet
and the profit and loss statement" sho#ld e
provided y the employer &ithin -? calendar days
after receipt of the #nion:s re(#est.
5. RI%(T TO COLLECT D/ES
77777777
1- D C L A T O N

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Labor Relations Azucena Vol

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LABOR RELATIONS

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