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WAGE – applies to the compensation for manual labor, skilled or - suggestive of a larger and more permanent or fixed compensation

fixed compensation for more


unskilled, paid at stated times, and measured by the day, week, month, or important office
season - indicates inconsiderable pay for a lower and less responsible
character of employment - includes sales commissions - includes facilities - excludes allowances
(include articles or services for the benefit of the employee or his family but Songco v NLRC
shall not include tools of the trade or articles or service primarily for the
benefit of the employer or necessary to the conduct of the employer’s – sales commissions and allowances should be included in computation of
business) or commodities (employer may provide separation pay

them but he may deduct their values from the employee’s wages distinguish GRATUITY – something given freely, or without recompense; a gift;
facilities from supplements (criterion: purpose) something voluntarily given in return for a favor or services; a bounty; a tip
- that which is paid to the beneficiary for past services rendered purely out
supplements – constitute extra remuneration or special privileges or of the generosity of the giver or grantor
benefits given to or received by the laborers over and above their ordinary
earnings or wages. not intended to pay a worker for actual services rendered

Facilities – items of expense necessary for the laborer’s and his family’s fair day’s wage for fair day’s labor
existence and subsistence so that by express provision of law, they form
part of the wage and when furnished by the employer are deductible equal pay for equal work (think ISAE v Quisumbing case) 
therefrom Agricultural work -work on the soil and its harvests
HOWEVER, re: meals and snacks  deduction cannot be more than 70% of  if highly mechanized and carries on processing activities not merely
the value of the meals and snacks, provided that such deduction must be incidental to purely farming operations, deemed industrial employees
authorized in writing by the employee; remaining 30% has to be subsidized
by the employer  nature of work classifies a worker

Lodging facility – value is determined to be the cost of operation and METHODS OF DETERMINING WAGES
maintenance, including adequate depreciation plus reasonable allowance
Floor wage method
Requirements for deducting value of facilities (Mabeza v NLRC)
involves the fixing of determinate amount that would be added to the
1. proof must be shown that such facilities are customarily furnished by the prevailing statutory minimum wage
trade
salary ceiling method
2. provision of deductible facilities must be voluntarily accepted in writing
by the employee involves the application of the wage adjustment to employees receiving a
certain denominated salary ceiling.
3. facilities must be charged at fair and reasonable value –

SALARY – denotes a higher degree of employment, or a superior grade of


services, and implies a position or office
a) To act as the national consultative and advisory body to the
President of the Philippines and Congress on matters relating to
RA 6727 Wage Rationalization Act; Policies of the State wages, incomes and productivity;

Section 2. It is hereby declared the policy of the State to rationalize the b) To formulate policies and guidelines on wages, incomes and
fixing of minimum wages and to promote productivity-improvement and productivity improvement at the enterprise, industry and national
gain-sharing measures to ensure a decent standard of living for the workers levels;
and their families; to guarantee the rights of labor to its just share in the
fruits of production; to enhance employment generation in the countryside c) To prescribe rules and guidelines for the determination of
through industry dispersal; and to allow business and industry reasonable appropriate minimum wage and productivity measures at the
returns on investment, expansion and growth. regional, provincial or industry levels;

The State shall promote collective bargaining as the primary mode of d) To review regional wage levels set by the Regional Tripartite
settling wages and other terms and conditions of employment; and Wages and Productivity Boards to determine if these are in
whenever necessary, the minimum wage rates shall be adjusted in a fair and accordance with prescribed guidelines and national development
equitable manner, considering existing regional disparities in the cost of plans;
living and other socio-economic factors and the national economic and
social development plans. e) To undertake studies, researches and surveys necessary for the
attainment of its functions and objectives, and to collect and
complete data and periodically disseminate information on wages
and productivity and other related information, including, but not
limited to, employment, cost-of-living, labor costs, investments
Art. 126. Prohibition Against Injunction. — No preliminary or
and returns;
permanent injunction or temporary restraining order may be issued by any
court, tribunal or other entity against any proceedings before the
f) To review plans and programs of the Regional Tripartite Wages
Commission or the Regional Boards.
and Productivity Boards to determine whether these are consistent
with national development plans;
CHAPTER II
The National Wages and Productivity Commission and Regional g) To exercise technical and administrative supervision over the
Tripartite Wages and Productivity Boards Regional Tripartite Wages and Productivity Boards;

h) To call, from time to time, a national tripartite conference of


SECTION 1. Commission. — The National Wages and Productivity representatives of government, workers and employers for the
Commission created under the Act shall hold office in the National Capital consideration of measures to promote wage rationalization and
Region. The Commission shall be attached to the Department for policy and productivity; and
program coordination.
i) To exercise such powers and functions as may be necessary to
Section 2. Powers and Functions of the Commission. — The Commission implement this Act.
shall have the following powers and functions:
Section 3. Composition of the Commission. — The Commission shall be corresponding wage orders, subject to guidelines issued by the
composed of the Secretary as ex-officio Chairman, the Director General of Commission;
the National Economic and Development Authority (NEDA) as ex-officio
Vice-Chairman and two members each from workers and employers sectors c) To undertake studies, researches, and surveys necessary for the
who shall be appointed by the President for a term of five years upon attainment of their functions, objectives and programs, and to
recommendation of the Secretary. The recommendees shall be selected from collect and compile data on wages, incomes, productivity and other
the list of nominees submitted by the workers and employers sectors. The related information and periodically disseminate the same;
Executive Director of the Commission Secretariat shall also be a member of
the Commission. d) To coordinate with the other Boards as may be necessary to
attain the policy and intention of the Labor Code;
The members of the Commission representing labor and management shall
have the same rank, emoluments, allowances and other benefits as those e) To receive, process and act on applications for exemption from
prescribed by law for labor and management representatives in the prescribed wage rates as may be provided by law or any Wage
Employees Compensation Commission. Order; and

Section 4. Commission Secretariat. — The Commission shall be assisted f) To exercise such other powers and functions as may be
by a Secretariat to be headed by an Executive Director and two Deputy necessary to carry out their mandate under the Labor Code.
Directors, who shall be appointed by the President upon recommendation of
the Secretary. Implementation of the plans, programs and projects of the Boards shall be
through the respective Regional Offices of the Department, provided,
The Executive Director shall have the rank of a Department Assistant however, that the Boards shall have technical supervision over the Regional
Secretary, while the Deputy Directors that of a Bureau Director shall Office of the Department with respect to the implementation of these plans,
receive the corresponding salary, benefits and other emoluments of the programs and projects.
positions.
Section 7. Composition of the Boards. — Each Board shall be composed of
Section 5. Regional Tripartite Wages and Productivity Boards. — The the Regional Director of the Department as Chairman, the Regional
Regional Wages and Productivity Boards created under the Act in all Directors of the National Economic and Development Authority (NEDA)
regions, including autonomous regions as may be established by law, shall and Department of Trade and Industry (DTI) as Vice-Chairmen and two
hold offices in areas where the Regional Offices of the Department are members each of workers and employers sectors who shall be appointed by
located. the President for a term of five years upon the recommendation of the
Secretary. The recommendees shall be selected from the lists of nominees
Section 6. Powers and Functions of the Boards. — The Boards shall have submitted by the workers and employers sectors.
the following powers and functions:
Each Board shall be assisted by a Secretariat.
a) To develop plans, programs and projects relative to wages,
incomes and productivity improvements for their respective Section 8. Authority to Organize and Appoint Personnel. — The
regions; Chairman of the Commission shall organize such units and appoint the
necessary personnel of the Commission and Board Secretariats, subject to
b) To determine and fix minimum wage rates applicable in their pertinent laws, rules and regulations.
region, provinces or industries therein and to issue the
The minimum wage fixed by law is mandatory; thus it is non-waivable and
non-negotiable. The enactment is compulsory in nature in order to ensure
Art. 123 Wage Order Takes effect after complete publication in at least 1 decent living conditions.
newspaper of gen circulation in region. Not be disturbed for a period of 12
months from effectivity. Public Hearing reqd Wage increase cannot be Wage distortion – situation where an increase in prescribed wage rates
retroactive to effectivity of wage order (Cagayan Sugar Milling v. results in the elimination or severe contraction of intentional quantitative
Secretrary of Labor) differences in wage of salary rates among employee groups, obliterating the
distinctions as to skills, length of service or other logical bases of
Minimum Wage differentiation.
Lowest rate fixed by law that an employer can pay his worker
Distortion adjustment formula (Metro Bank v. NLRC):
Art. 124. Standards/Criteria for Min Wage Fixing Standards/Criteria for
Min wage fixing Minimum wage / actual salary = %
a. Living Wage
b. Consumer price index Art. 127. Non-diminution of Benefits. — No Wage Order issued by any
c. Cost of living Regional Board shall provide for wage rates lower than the statutory
d. Needs of workers and their families minimum wage rates prescribed by Congress.
e. Induce industries to invest in countryside
f. Improvements in standards of living
g. Prevailing wage levels ART. 123. Wage Order. - Whenever conditions in the region so warrant,
h. Fair return of capital the Regional Board shall investigate and study all pertinent facts; and based
i. Effects on employment generation and family income on the standards and criteria herein prescribed, shall proceed to determine
j. Equitable distribution of income and wealth whether a Wage Order should be issued. Any such Wage Order shall take
effect after fifteen (15) days from its complete publication in at least one (1)
Statutory wages newspaper of general circulation in the region.
A form of wage provided by law, giving a standard wage among employer- In the performance of its wage-determining functions, the Regional Board
employee relationship shall conduct public hearings/consultations, giving notices to
employees’ and employers’ groups, provincial, city and municipal
Purpose of Minimum Wage officials and other interested parties.
To set a barrier below which wages may not fall, in order to develop
competition on a high level efficiency rather than competition on a low Any party aggrieved by the Wage Order issued by the Regional Board may
level of wages. appeal such order to the Commission within ten (10) calendar days from the
To promote productivity-improvement and to ensure decent standard living. publication of such order. It shall be mandatory for the Commission to
decide such appeal within sixty (60) calendar days from the filing thereof.
Advantage and Disadvamtage The filing of the appeal does not stay the order unless the person appealing
such order shall file with the Commission, an undertaking with a surety or
sureties satisfactory to the Commission for the payment to the employees
affected by the order of the corresponding increase, in the event such order Barangay Micro Business Enterprises Act of 2002
is affirmed. (As amended by Republic Act No. 6727, June 9, 1989).
The BMBE Law
GROUNDS FOR APPEAL
1. Non-conformity with prescribed guidelines or procedures. President Gloria Macapagal-Arroyo signed the Act into law on November
2. Question of Law 13, 2002, to encourage the formation and growth of BMBEs by granting
3. Grave abuse of discretion them incentives and other benefits.

SECTION 12. EXEMPTIONS


Upon application with and as determined by the Board in accordance with
the applicable Rules and Regulations issued by the Commission, distressed Objective of the BMBE Law
establishments as defined in the NWPC Guidelines No. 01, series of 1996
may be exempted from the coverage of this Order. The country recognizes that small businesses are essential to the economic
development of the country. Supporting the growth of BMBEs will increase
jobs, provide livelihood, and a better quality of life for Filipinos. The Act
SECTION 13. DURATION AND EXTENT OF EXEMPTION
then aims to “integrate micro-enterprises in the informal sector into the
Establishments that applied for exemption and found qualified may be mainstream of the economy.”
granted a partial or full exemption of one (1) year in accordance with the
NWPC Guidelines No. 01, series of 1996 (Rules on Exemption),as
amended.
Incentives for BMBE Registration
Art. 98 – Application of Title 2 (Wages) Not applicable to:
1. farm tenancy or leasehold The following incentives are available for registered BMBEs:
2. domestic services
3. persons working in their respective homes in needle work or any cottage • Income tax exemption from income arising from the operations of the
industry enterprise;
4. workers employed in any establishment duly registered with the National
Cottage Industries and Development Authority • Exemption from the coverage of the Minimum Wage Law (BMBE
5. workers in any duly registered cooperative when so recommended by the employees will still receive the same social security and health care benefits
Bureau of Cooperative Development as other employees);
6. Barangay micro business enterprise - any business entity engaged in the
• Priority to a special credit window set up specifically for the financing of
production, processing, or manufacturing of products or commodities,
BMBEs; and
including agro-processing, trading and services, whose total assets
including those arising from loans but exclusive of the land on which the • Technology transfer, production and management training, and marketing
particular business entity’s office, plant and equipment are situated, shall assistance programs for BMBE beneficiaries.
not be more than P3M.
• Aside from these, the LGUs may also reduce the amount of local taxes,
7. wage orders issued by the wage boards under A 99 and 122
fees, and charges imposed or exempt the BMBEs from local taxes, fees, and
charges.
b. Three passport size ID pictures.

Eligibility for a BMBE Registration II. Additional requirements for new applicants:

Based on the BMBE Law, your business or activity is eligible to apply as a a. For those with assets worth three hundred thousand pesos (P300,000) and
BMBE if it meets the following criteria: less

• It is engaged in production, processing, or manufacturing of products, 1. Registration as a business entity or enterprise from the appropriate
including agro-processing, as well as trading and services government agency (e.g., Securities and Exchange Commission (SEC)
registration in the case of corporation, or association; Cooperative
• It has total assets of not more than P 3 million, including those arising Development Authority (CDA) registration in the case of cooperative;
from loans but not the land on which the plant and equipment are located. Department of Trade and Industry (DTI) business name registration in the
case of sole proprietorship); and
• The business or service provider, in connection with the exercise of his or
her profession, is not a professional duly licensed by the government after 2. Mayor’s Permit or City/ Municipal Business Permit.
having passed a government licensure examination, such as accountants,
lawyers, doctors, and the like. b. For those with assets worth more than three hundred thousand pesos
(P300, 000) up to three million pesos (P3, 000,000.00)
• It is not a branch, subsidiary, division, or office of a large-scale enterprise
and its policies and business modus operandi are not determined by such 1. Registration as a business entity as explained above in item no. II.a.1
enterprise or by persons who are not owners or employees of said
enterprise, as mandated by the Department of Finance Order No. 17-04. 2. Taxpayer Identification Number (TIN);

3. Certificate of Registration from the Bureau of Internal Revenue (BIR);

Solopreneur Requirements for a BMBE Registration 4. Mayor’s Permit or City/Municipal Business Permit;

Both your first-time BMBE registration and its renewal must take place at 5. Sworn affidavit executed by the sole proprietor or the President of the
the Office of the Treasurer of the city or municipality where your business enterprise, as the case may be, that the enterprise is barangay-based and
is located. micro-business in nature and scope;

The requirements for first-time registration differs depending on the value 6. Sworn Statement of Assets and Liabilities supported by pertinent
of your assets. documents;

I. Basic requirements for new applicants and BMBEs applying for renewal 7. Pictures of the place of business and its assets, other than cash,
of registration: receivables and intangibles;

a. Duly filled out application form (BMBE Form 01) in triplicate, signed by 8. Copy of Loan Contract/s, if any, and duly-notarized Certification of
the owner or manager of the entity applying for registration; and, Amortization Payments on the Loan; and
9. Income Tax Return (ITR).

III. Additional requirements for the renewal of BMBE registration: Cost of BMBE Registration

a. For those with assets worth three hundred thousand pesos (P300,000) and The registration and issuance of the Certificate of Authority of the LGU is
less free and must be done promptly. However, LGUs are allowed to charge a
fee not exceeding P 1,000.00 to defray administrative costs.
1. Documents previously listed in item II.a.1 for new applicants with assets
worth three hundred thousand pesos and less; and As a solopreneur operating a small business on your own, registering as a
BMBE will provide you with many benefits.
2. Annual Information Return (for the year immediately preceding the
renewal of registration) duly filed with the BIR, together with its
attachments. Settlement of Wage distortion

b. those with assets worth more than three hundred thousand pesos The employer and workers are mandated by law to resolve such wage
(P300,000) up to three million pesos (P3,000,000.00) distortion problems in the following manner:

1. Documents previously mentioned in item II.b (1-8); and In unionized establishment/ Organized- The employer and the union shall
negotiate to correct the distortions using grievance machinery procedure in
2. Annual Information Return (for the year immediately preceding the
the collective bargaining agreement. If it remains unresolved, it shall be
renewal of registration) duly filed with the BIR, together with its
attachments. decided through voluntary arbitration within ten 10 calendar days from the
time the dispute was referred for voluntary arbitration. (Sec. 7, Chapter III,
Rules Implementing R.A. 6727)

BMBE Registration Procedures In non-unionized establishment/unorganized- the employer and the


workers shall endeavor to correct the wage distortion. If the negotiation
The process for registration is as follows: fails, any dispute arising there from shall be settled through the National
Conciliation and Mediation Board (NCMB). If it remains unresolved after
a. Accomplish BMBE Form 01 in triplicate and submit to the Office of the 10 calendar days of conciliation, the dispute shall be referred to the
Municipal or City Treasurer. appropriate branch of the National Labor Relations Commission (NLRC)
which shall conduct continuous hearings and decide the matter within
b. The Municipal or City Treasurer evaluates the application. The twenty (20) calendar days from the time it was submitted for compulsory
application shall be processed within 15 working days upon submission; arbitration.
otherwise, the BMBE shall be deemed registered.

c. A registered BMBE shall be issued a Certificate of Authority as proof of


registration, effective for two years. The application is renewable every two
years.
REPUBLIC ACT NO. 8188

SECTION 1. Section 12 of Republic Act Numbered Sixty-seven hundred


twenty-seven is hereby amended to read to as follows:

"Section 12. Any person, corporation, trust, firm, partnership, association or


entity which refuses or fails to pay any of the prescribed increases or
adjustments in the wage rates made in accordance with this Act shall be
punished by a fine not less than Twentyfive thousand pesos (P25,000) nor
more than One hundred thousand pesos (P100,000) or imprisonment of not
less than two (2) years nor more than four (4) years, or both such fine and
imprisonment at the discretion of the court:

Provided, That any person convicted under this Act shall not be entitled to
the benefits provided for under the Probation Law.

"The employer concerned shall be ordered to pay an amount equivalent to


double the unpaid benefits owing to the employees: Provided, That payment
of indemnity shall not absolve the employer from the criminal liability
imposable under this Act.

"If the violation is committed by a corporation, trust or firm, partnership,


association or any other entity the penalty of imprisonment shall be imposed
upon the entity's responsible officers, including, but not limited to, the
president, vice-president, chief executive officer, general manager,
managing director or partner."
thousand pesos (P50,000.00) except actions for forcible
entry into and unlawful detainer of lands or buildings,
Republic of the Philippines original jurisdiction over which is conferred upon the
Congress of the Philippines Metropolitan Trial Courts, Municipal Trial Courts, and
Metro Manila Municipal Circuit Trial Courts;

Ninth Congress "(3) In all actions in admiralty and maritime jurisdiction


where the demand or claim exceeds One hundred
thousand pesos (P100,000.00) or, in Metro Manila, where
such demand or claim exceeds Two hundred thousand
pesos (P200,000.00);

Republic Act No. 7691 March 25, 1994


"(4) In all matters of probate, both testate and intestate,
where the gross value of the estate exceeds One hundred
AN ACT EXPANDING THE JURISDICTION OF THE thousand pesos (P100,000.00) or, in probate matters in
METROPOLITAN TRIAL COURTS, MUNICIPAL TRIAL Metro Manila, where such gross value exceeds Two
COURTS, AND MUNICIPAL CIRCUIT TRIAL COURTS, Hundred thousand pesos (P200,000.00);
AMENDING FOR THE PURPOSE BATAS PAMBANSA, BLG. 129,
OTHERWISE KNOWN AS THE "JUDICIARY REORGANIZATION
"(5) In all actions involving the contract of marriage and
ACT OF 1980"
marital relations;

Be it enacted by the Senate and House of Representatives of the Philippines


"(6) In all cases not within the exclusive jurisdiction of
in Congress assembled::
any court, tribunal, person or body exercising jurisdiction
of any court, tribunal, person or body exercising judicial
Section 1. Section 19 of Batas Pambansa Blg. 129, otherwise known as the or quasi-judicial functions;
"Judiciary Reorganization Act of 1980", is hereby amended to read as
follows:
"(7) In all civil actions and special proceedings falling
within the exclusive original jurisdiction of a Juvenile and
"Sec. 19. Jurisdiction in civil cases. – Regional Trial Courts shall Domestic Relations Court and of the Court of Agrarian
exercise exclusive original jurisdiction. Relations as now provided by law; and

"(1) In all civil actions in which the subject of the "(8) In all other cases in which the demand, exclusive of
litigation is incapable of pecuniary estimation; interest, damages of whatever kind, attorney's fees,
litigation expenses, and costs or the value of the property
"(2) In all civil actions which involve the title to, or in controversy exceeds One hundred thousand pesos
possession of, real property, or any interest therein, where (P100,000.00) or, in such other cases in Metro Manila,
the assessed value of the property involved exceeds where the demand exclusive of the abovementioned items
Twenty thousand pesos (P20,000,00) or, for civil actions exceeds Two Hundred thousand pesos (P200,000.00)."
in Metro Manila, where such value exceeds Fifty
Section 2. Section 32 of the same law is hereby amended to read as follows: litigation expenses, and costs, the amount of which must
be specifically alleged: Provided, That interest, damages
"Sec. 32. Jurisdiction of Metropolitan Trial Courts, Municipal Trial of whatever kind, attorney's fees, litigation expenses, and
Courts and Municipal Circuit Trial Courts in Criminal Cases. – costs shall be included in the determination of the filing
Except in cases falling within the exclusive original jurisdiction of fees: Provided, further, That where there are several
Regional Trial Courts and of the Sandiganbayan, the Metropolitan claims or causes of actions between the same or different
Trial Courts, Municipal Trial Courts, and Municipal Circuit Trial parties, embodied in the same complaint, the amount of
Courts shall exercise: the demand shall be the totality of the claims in all the
causes of action, irrespective of whether the causes of
action arose out of the same or different transactions;
"(1) Exclusive original jurisdiction over all violations of
city or municipal ordinances committed within their
respective territorial jurisdiction; and "(2) Exclusive original jurisdiction over cases of forcible
entry and unlawful detainer: Provided, That when, in such
"(2) Exclusive original jurisdiction over all offenses cases, the defendant raises the questions of ownership in
his pleadings and the question of possession cannot be
punishable with imprisonment not exceeding six (6) years
resolved without deciding the issue of ownership, the
irrespective of the amount of fine, and regardless of other
issue of ownership shall be resolved only to determine the
imposable accessory or other penalties, including the civil
issue of possession; and
liability arising from such offenses or predicated thereon,
irrespective of kind, nature, value or amount thereof:
Provided, however, That in offenses involving damage to "(3) Exclusive original jurisdiction in all civil actions
property through criminal negligence, they shall have which involve title to, or possession of, real property, or
exclusive original jurisdiction thereof." any interest therein where the assessed value of the
property or interest therein does not exceed Twenty
Section 3. Section 33 of the same law is hereby amended to read as follows: thousand pesos (P20,000.00) or, in civil actions in Metro
Manila, where such assessed value does not exceed Fifty
thousand pesos (P50,000.00) exclusive of interest,
"Sec. 33. Jurisdiction of Metropolitan Trial Courts, Municipal Trial damages of whatever kind, attorney's fees, litigation
Courts and Municipal Circuit Trial Courts in Civil Cases. – expenses and costs: Provided, That in cases of land not
Metropolitan Trial Courts, Municipal Trial Courts, and Municipal declared for taxation purposes, the value of such property
Circuit Trial Courts shall exercise: shall be determined by the assessed value of the adjacent
lots."
"(1) Exclusive original jurisdiction over civil actions and
probate proceedings, testate and intestate, including the Section 4. Section 34 of the same law is hereby amended to read as follows:
grant of provisional remedies in proper cases, where the
value of the personal property, estate, or amount of the
"Sec. 34. Delegated Jurisdiction in Cadastral and Land
demand does not exceed One hundred thousand pesos
Registration Cases. – Metropolitan Trial Courts, Municipal Trial
(P100,000.00) or, in Metro Manila where such personal
Courts, and Municipal Circuit Trial Courts may be assigned by the
property, estate, or amount of the demand does not exceed
Supreme Court to hear and determine cadastral or land registration
Two hundred thousand pesos (P200,000.00), exclusive of
interest, damages of whatever kind, attorney's fees, cases covering lots where there is no controversy or opposition, or
contested lots where the value of which does not exceed One
hundred thousand pesos (P100,000.00), such value to be
ascertained by the affidavit of the claimant or by agreement of the
respective claimants if there are more than one, or from the
corresponding tax declaration of the real property. Their decisions
in these cases shall be appealable in the same manner as decisions
of the Regional Trial Courts."

Section 5. After five (5) years from the effectivity of this Act, the
jurisdictional amounts mentioned in Sec. 19(3), (4), and (8); and Sec. 33(1)
of Batas Pambansa Blg. 129 as amended by this Act, shall be adjusted to
Two hundred thousand pesos (P200,000.00). Five (5) years thereafter, such
jurisdictional amounts shall be adjusted further to Three hundred thousand
pesos (P300,000.00): Provided, however, That in the case of Metro Manila,
the abovementioned jurisdictional amounts shall be adjusted after five (5)
years from the effectivity of this Act to Four hundred thousand pesos
(P400,000.00).

Section 6. All laws, decrees, and orders inconsistent with the provisions of
this Act shall be considered amended or modified accordingly.

Section 7. The provisions of this Act shall apply to all civil cases that have
not yet reached the pre-trial stage. However, by agreement of all the parties,
civil cases cognizable by municipal and metropolitan courts by the
provisions of this Act may be transferred from the Regional Trial Courts to
the latter. The executive judge of the appropriate Regional Trial Courts
shall define the administrative procedure of transferring the cases affected
by the redefinition of jurisdiction to the Metropolitan Trial Courts,
Municipal Trial Courts, and Municipal Circuit Trial Courts.

Section 8. This Act shall take effect fifteen (15) days following its
publication in the Official Gazette or in two (2) national newspapers of
general circulation.

Approved: March 25, 1994


These two complementary powers to administer and to enforce the law are Notwithstanding the provisions of Articles 129 and 217 of this Code to the
conferred by the Labor Code of the Philippines, as amended, on the contrary, and in cases where the relationship of employer-employee still
Secretary of Labor and Employment or his duly authorized representatives, exists, the Secretary of Labor and Employment or his duly authorized
i. e., the DOLE Regional Directors. representatives shall have the power to issue compliance orders to give
effect to the labor standards provisions of this Code and other labor
Visitorial grants legislation based on the findings of labor employment and enforcement
to said DOLE officials, including labor and employment officers, access to officers or industrial safety engineers made in the course of inspection. The
employer's records and premises at any time of the day or night whenever Secretary or his duly authorized representatives shall issue writs of
work is being undertaken therein, and the right to copy there from such execution to the appropriate authority for the enforcement of their orders,
records, to question any employee and investigate any fact, condition or except in cases where the employer contests the findings of the labor
matter which may be necessary to determine violations or which may aid in employment and enforcement officer and raises issues supported by
the enforcement of the Labor Code and of any labor law, wage order or documentary proofs which were not considered in the course of inspection.
rules and regulations issued pursuant thereto (Art. 128 (a). (As amended by Republic Act No. 7730, June 2, 1994).

Enforcement power An order issued by the duly authorized representative of the Secretary of
to issue compliance orders to give effect to the labor standards provisions Labor and Employment under this Article may be appealed to the latter. In
of the Labor Code and other labor legislation based on the findings of labor case said order involves a monetary award, an appeal by the employer may
and employment officers or industrial safety engineers made in the course be perfected only upon the posting of a cash or surety bond issued by a
of inspection, and to issue writs of execution to the appropriate authority for reputable bonding company duly accredited by the Secretary of Labor and
the enforcement of their orders, except in cases where the employer contests Employment in the amount equivalent to the monetary award in the order
the findings of the labor and employment officers and raises issues appealed from. (As amended by Republic Act No. 7730, June 2, 1994)
supported by documentary proofs which were not considered in the course
of inspection." (Art. 128 (b). The Secretary of Labor and Employment may likewise order stoppage of
work or suspension of operations of any unit or department of an
Chapter VI establishment when non-compliance with the law or implementing rules and
ADMINISTRATION AND ENFORCEMENT regulations poses grave and imminent danger to the health and safety of
workers in the workplace. Within twenty-four hours, a hearing shall be
Article 128. Visitorial and enforcement power. conducted to determine whether an order for the stoppage of work or
suspension of operations shall be lifted or not. In case the violation is
The Secretary of Labor and Employment or his duly authorized attributable to the fault of the employer, he shall pay the employees
representatives, including labor regulation officers, shall have access to concerned their salaries or wages during the period of such stoppage of
employer’s records and premises at any time of the day or night whenever work or suspension of operation.
work is being undertaken therein, and the right to copy therefrom, to
question any employee and investigate any fact, condition or matter which It shall be unlawful for any person or entity to obstruct, impede, delay or
may be necessary to determine violations or which may aid in the otherwise render ineffective the orders of the Secretary of Labor and
enforcement of this Code and of any labor law, wage order or rules and Employment or his duly authorized representatives issued pursuant to the
regulations issued pursuant thereto. authority granted under this Article, and no inferior court or entity shall
issue temporary or permanent injunction or restraining order or otherwise
assume jurisdiction over any case involving the enforcement orders issued
in accordance with this Article.
Any government employee found guilty of violation of, or abuse of that employer-employee relationship no longer exists, the case, whether or
authority, under this Article shall, after appropriate administrative not accompanied by an allegations of illegal dismissal, shall immediately be
investigation, be subject to summary dismissal from the service. endorsed by the Regional Director to the appropriateBranch of the National
Labor Relations Commission (NLRC).
The Secretary of Labor and Employment may, by appropriate regulations,
require employers to keep and maintain such employment records as may Section 4. Service of notices and orders. – Notices and copies of orders
be necessary in aid of his visitorial and enforcement powers under this shall be served onthe parties or their duly authorized representatives at their
Code. last known address or, if they are represented by counsel, through the latter.
In the case of personal service, the process server shall submit his return
within seventy-two (72) hours from the date of service stating legibly in the
return his name, the mode of service, the names of the authorized persons
served and the date of actual receipt of the document.If no service was
SCOPE
effected, the serving officer shall state in the return the reason therefor.The
return shall from part of the records of the case.
Labor standard complaint
Section 5. Inspection report. – Where the case is assigned to a LSWO for
RULE II inspection, thelatter shall conductthe necessary investigation and submit a
MONEY CLAIMS ARISING FROM COMPLAINT/ROUTINE reportthereof to the Regional Director, through the Chief of the Labor
INSPECTION Standards Enforcement Division (LSED), within twenty-four (24) hours
Section 1. Title and caption. – The title and caption of complaints after the investigation or within a reasonable period as may determined by
involving money claims brought to the Regional Office arising from alleged the Regional Director.The report shall specify the violations discovered, if
violations of labor standards shall substantially comply with the form any, together with his recommendation and computation of the amount due
prescribed by the Regional Office. each worker.

Section 2. Complaint inspection. – All such complaints shall immediately Section 6. Coverage of complaint inspection. – A complaint inspection
be forwarded to the Regional Director who shall refer the case to the shall not be limited to the specific allegations or violations raised by the
appropriate unit in the Regional Office for assignment to a Labor Standards complainants/workers but shall be a thorough inquiry into and verification
and Welfare Officer(LSWO) for field inspection.When the field inspection of the compliance by employer with existing labor standards and shall cover
does not produce the desired results, the Regional Director shall summon all workers similarly situated.
the parties for summary investigation to expedite the disposition of the
case.The investigation shall be concluded within fifteen (15) calendar days Section 7. Restitution. –
from the date of the first hearing and a proposed Order disposing of the case
shall be submitted to the Regional Director within three (3) calendar days (a) Where the employer has agreedto make thenecessary restitutions of
from the conclusion of the investigation. violations discovered in the course of inspection, such restitutions may
be effected at the plant-level within five (5) calendar days from receipt
Section 3. Complaints where no employer-employee relationship actually of the inspection results by the employer or his authorized
exists. – Where employer-employee relationship no longer exists by reason representative;
of the fact that it has already been severed, claims for payment of monetary (b) Plant-level restitutions may be effected for money claims not exceeding
benefits fall within the exclusive and original jurisdiction of the labor Fifty Thousand Pesos (P50,000.00).A report of the restitutions shall be
arbiters.Accordingly, if on the face of the complaint, it can be ascertained immediately submitted to the Regional Director for verification and
confirmation.In case the Regional Director finds that the restitutions however, avail itself of all reasonable means to ascertain the facts or the
effected at the plant-level are not in order, he may direct the LSED controversy speedily and objectively,including ocular inspection and
Chief to check the correctness of the restitution report; examination of well informed persons.Substantial evidence, whenever
(c) Restitutions in excess of the aforementioned amount shall be effected at necessary shall be sufficient to supporta decision or order.
the Regional Office or at the worksite subject to the prior approval of
the Regional Director. Section 13. Prohibited acts. – It shall be unlawful for any person or entity
to obstruct , impede, delay or otherwise render ineffectivethe Order of the
Section 8. Compromise Agreement. – Should the parties arrive at an Secretary of Labor and Employment or this duly authorized representatives
agreement as to the whole or part of the dispute, said agreement shall issuedpursuant to the authority granted under these Rules,and no inferior
reduced in writing and signed by the parties in the presence of the Regional court or entity shall issue temporary or permanent injunction or restraining
Director or his duly authorized representative. order or otherwise assume jurisdiction over any case involvingthe
enforcement orders issued in accordance with these Rules.
Section 9. Unclaimed amount. – The Regional Director shall hold in trust The foregoing notwithstanding, the responsible party, be it the worker,
under a special account in behalf of the workers.Any amount not claimed or union, employer, or the authorized representative of any of the foregoing
collected by the workers a period of two (2) years from the time of shall be subject to administrative sanctions as determined by the Secretary
restitution shall be held as s special fund of the Department of Labor and or the Regional Director.
Employment to be used exclusively in the administration and enforcement
of labor laws provided in Article 129 of the Labor Code. Section 14. Failure to appear. -Where the employer or the complainant
fails or refuses to appear during the investigation, despite proper notice, for
Section 10. Follow-up inspection. – After the employer has submitted two (2) consecutive hearings without justifiable reasons, the hearing officer
proof of compliance with reported violations, follow-up verification may recommend to the Regional Director the issuance of a compliance
inspection shall forthwith be conducted if restitution is effected in the order based on the evidence at hand or an order of dismissal of the
absence of the of the LSWO. complaint, as the case may be.

Section 11. Hearing. – Where no proof of compliance is submitted by the Section 15. Postponement of hearing. – The parties and their counsel or
employer after seven (7) calendar days from receipt of the inspection representative s appearing before the Regional Office shall be prepared for
results, the Regional Director shall summon the employer and the continuous hearings.Postponements shall be allowed only upon meritorious
complainants to a summary investigation.In regular routine inspection cases groundsand shall be limited to not more than two (2) postponements but in
however, such investigation shall be conducted where no complete field no case to exceed a total of ten (10) calendar days.In the event of such
investigation shall be conducted where no completefield investigation can postponements, the Regional Office shall set two or more dates of hearing
be made for reasons attributableto the fault of the employer or his in advance.
representatives, such as those but not limited to instances when the field
inspections are denied to instances when thefield inspectors are denied Section 16. Records of proceedings. – The proceedings before the Regional
access to the premises, employment records, or workers, of the employer. Office need not be recorded by stenographers.The hearing officer shall,
however, make a written summary of the proceedings including the
Section 12. Nature of proceedings. –The proceedings before the Regional substance of the positions of the parties and the evidence presented which
Office shall be summary and non-litigious in nature.Subject to the shall for part of the records of the case.The written summary shall be signed
requirements of due process, the technicalities of law and procedure and the by the parties.
rules governing admissibility and sufficiency of evidence obtaining in the
courts of law shall not strictly apply thereto.The Regional Office may,
Section 17. Motion to dismiss. – Any motion to dismiss a complaint on the for reinstatement: Provided further, That the aggregate money claims of
grounds that the Regional Office has no jurisdiction over the complaint or each employee or househelper does not exceed Five thousand pesos
thatthe cause of action is barred by prior judgment or prescription, shall be (P5,000.00). The Regional Director or hearing officer shall decide or
immediately acted upon by the Regional Director if the facts strongly resolve the complaint within thirty (30) calendar days from the date of the
indicate dismissal.Any motion to dismiss with no such indication shall filing of the same. Any sum thus recovered on behalf of any employee or
disposed of only in the final determination of the case on the merits. househelper pursuant to this Article shall be held in a special deposit
account by, and shall be paid on order of, the Secretary of Labor and
Section 18. Compliance order. – If the Regional Director finds after Employment or the Regional Director directly to the employee or
hearing that violations have been committed, he shall issue an Order househelper concerned. Any such sum not paid to the employee or
directing the employer to restitute other corrective measures within ten (10) househelper because he cannot be located after diligent and reasonable
calendar days upon receipt of the Order and to submitproof of effort to locate him within a period of three (3) years, shall be held as a
compliance.The Order shall specify the amount due each worker and shall special fund of the Department of Labor and Employment to be used
include the computations on which the Order was based. exclusively for the amelioration and benefit of workers.

Section 19. Motion for reconsideration. – The aggrieved party may file a Any decision or resolution of the Regional Director or hearing officer
motion for reconsideration of the Order of the Regional Office within seven pursuant to this provision may be appealed on the same grounds provided in
(7) calendar days from receipt by him of a copy of said Order. Article 223 of this Code, within five (5) calendar days from receipt of a
The Regional Director shall resolve the motion for reconsideration within copy of said decision or resolution, to the National Labor Relations
ten (10) calendar days from receipt thereof. A motion for reconsideration Commission which shall resolve the appeal within ten (10) calendar days
filed beyond the seven-day reglementary period shall be treated as an appeal from the submission of the last pleading required or allowed under its rules.
if filed within the ten-day reglementary period shall be treated as an appeal
if filed within the ten-day reglementary period for appeal, but subject to the
The Secretary of Labor and Employment or his duly authorized
requirements for the perfection of an appeal.
representative may supervise the payment of unpaid wages and other
No second motion for reconsideration shall be entertained in any case.
monetary claims and benefits, including legal interest, found owing to any
employee or househelper under this Code. (As amended by Section 2,
Section 20. Disposition of routine inspection cases. –The disposition of Republic Act No. 6715, March 21, 1989)
regular inspection cases shall substantially conform with the provisions of
this Rules

Article 129. Recovery of wages, simple money claims and other benefits.

Upon complaint of any interested party, the Regional Director of the


Department of Labor and Employment or any of the duly authorized
hearing officers of the Department is empowered, through summary
proceeding and after due notice, to hear and decide any matter involving the
recovery of wages and other monetary claims and benefits, including legal
interest, owing to an employee or person employed in domestic or
household service or househelper under this Code, arising from employer-
employee relations: Provided, That such complaint does not include a claim
THE 2005 REVISED RULES OF PROCEDURE OF THE NATIONAL in the complaint or petition.It shall be signed under oath by the complainant
LABOR RELATIONS COMMISSION or petitioner, with a declaration of non-forum shopping.
Pursuant to the provisions of Article 218 of Presidential Decree No.442, as b) A party having more than one cause of action against the other
amended, otherwise known as the Labor Code of the Philippines, the party, arising out of the same relationship, shall include all of them
following Revised Rules of Procedure governing arbitration proceedings in one complaint or petition.
before the Labor Arbiters and the Commission are hereby adopted and
promulgated: c) No amendment of the complaint or petition shall be allowed
after the filing of position papers, unless with leave of the Labor
RULE I Arbiter or the Commission.
TITLE AND CONSTRUCTION
Section 2. Caption and Title. - In all cases filed with the Commission or
Section 1. Title of the Rules. - These Rules shall be known as the "2005 with any of its Regional Arbitration Branches, the party initiating the action
Revised Rules of Procedure of the National Labor Relations Commission". shall be called the "Complainant" or "Petitioner", and the opposing party the
"Respondent".
Section 2. Construction. - These Rules shall be liberally construed to carry
out the objectives of the Constitution, the Labor Code of the Philippines and The full names of all the real parties in interest, whether natural or juridical
other relevant legislations, and to assist the parties in obtaining just, persons or entities authorized by law, shall be stated in the caption of the
expeditious and inexpensive resolution and settlement of labor disputes. complaint or petition, as well as in the decisions, resolutions or orders of the
Labor Arbiter or the Commission.
Section 3. Suppletory Application of the Rules of Court. - In the absence of
any applicable provision in these Rules, and in order to effectuate the Section 3. Issuance of Summons. - Within two (2) days from receipt of a
objectives of the Labor Code, the pertinent provisions of the Rules of Court complaint or amended complaint, the Labor Arbiter shall issue the required
of the Philippines may, in the interest of expeditious dispensation of labor summons, attaching thereto a copy of the complaint or amended
justice and whenever practicable and convenient, be applied by analogy or complaint.The summons shall specify the date, time and place of the
in a suppletory character and effect. mandatory conciliation and mediation conference in two (2) settings.
RULE II Section 4. Prohibited Pleadings and Motions. - The following pleadings
DEFINITION OF TERMS and motions shall not be allowed and acted upon nor elevated to the
Commission in all cases covered by these Rules:
Section 1. Definitions. - The terms and phrases defined in Article 212 of the
Labor Code, as amended, shall be given the same meanings when used a) Motion to dismiss the complaint except on the ground of lack of
herein. jurisdiction over the subject matter, improper venue, res
adjudicata, prescription and forum shopping;
As used herein, "Regional Arbitration Branch" shall mean any of the
regional arbitration branches or sub-regional branches of the Commission. b) Motion for a bill of particulars;
RULE III c) Motion for new trial;
PLEADINGS, NOTICES AND APPEARANCES
d) Petition for relief from judgment when filed with the Labor
Section 1. Complaint. - a) A complaint or petition is a pleading alleging the Arbiter;
cause or causes of action of the complainant or petitioner.The names and
addresses of all complainants or petitioners and respondents must be stated e) Petition for certiorari, mandamus or prohibition;
f) Motion to declare respondent in default; upon receipt by the addressee or his agent; but if the addressee fails to claim
his mail from the post office within five (5) days from the date of first
g) Motion for reconsideration or appeal from any interlocutory notice of the postmaster, service shall take effect after such time.
order of the Labor Arbiter.
Section 8. Appearances. - a) A lawyer appearing for a party is presumed to
Section 5. Filing and Service of Pleadings. - All pleadings in connection be properly authorized for that purpose.In every case, he shall indicate in
with the case shall be filed with the appropriate docketing unit of the his pleadings and motions his Attorney's Roll Number, as well as his PTR
Regional Arbitration Branch or the Commission, as the case maybe. and IBP numbers for the current year.
The party filing the pleadings shall serve the opposing parties with a copy b) A non-lawyer may appear as counsel in any of the proceedings
thereof and its supporting documents in the manner provided for in these before the Labor Arbiter or Commission only under the following
Rules with proof of service thereof. conditions:
Section 6. Service of Notices and Resolutions. - a) Notices or summons and (1) he represents himself as party to the case;
copies of orders, shall be served on the parties to the case personally by the
Bailiff or duly authorized public officer within three (3) days from receipt (2) he represents a legitimate labor organization, as
thereof or by registered mail; Provided that in special circumstances, service defined under Article 212 and 242 of the Labor Code, as
of summons may be effected in accordance with the pertinent provisions of amended, which is a party to the case: Provided, that he
the Rules of Court; Provided further, that in cases of decisions and final presents: (i) a certification from the Bureau of Labor
awards, copies thereof shall be served on both parties and their counsel or Relations (BLR) or Regional Office of the Department of
representative by registered mail; Provided further that in cases where a Labor and Employment attesting that the organization he
party to a case or his counsel on record personally seeks service of the represents is duly registered and listed in the roster of
decision upon inquiry thereon, service to said party shall be deemed legitimate labor organizations; (ii) a verified certification
effected upon actual receipt thereof; Provided finally, that where parties are issued by the secretary and attested to by the president of
so numerous, service shall be made on counsel and upon such number of the said organization stating that he is authorized to
complainants, as may be practicable, which shall be considered substantial represent the said organization in the said case; and (iii) a
compliance with Article 224 (a) of the Labor Code, as amended. copy of the resolution of the board of directors of the said
organization granting him such authority;
For purposes of appeal, the period shall be counted from receipt of such
decisions, resolutions, or orders by the counsel or representative of record. (3) he represents a member or members of a legitimate
labor organization that is existing within the employer's
b) The Bailiff or officer serving the notice, order, resolution or decision establishment, who are parties to the case: Provided, that
shall submit his return within two (2) days from date of service thereof, he presents: (i) a verified certification attesting that he is
stating legibly in his return his name, the names of the persons served and authorized by such member or members to represent them
the date of receipt, which return shall be immediately attached and shall in the case; and (ii) a verified certification issued by the
form part of the records of the case.In case of service by registered mail, the secretary and attested to by the president of the said
Bailiff or officer shall write in the return, the names of persons served and organization stating that the person or persons he is
the date of mailing of the resolution or decision.If no service was effected, representing are members of their organization which is
the service officer shall state the reason therefor in the return. existing in the employer's establishment;
Section 7. Proof and Completeness of Service. - The return is prima facie (4) he is a duly-accredited member of any legal aid office
proof of the facts indicated therein.Service by registered mail is complete recognized by the Department of Justice or Integrated Bar
of the Philippines: Provided, that he (i) presents proof of time the cause of action arose.It shall include the place where the
his accreditation; and (ii) represents a party to the case; employee is supposed to report back after a temporary detail,
assignment, or travel.In case of field employees, as well as
(5) he is the owner or president of a corporation or ambulant or itinerant workers, their workplace is where they are
establishment which is a party to the case: Provided, that regularly assigned, or where they are supposed to regularly receive
he presents: (i) a verified certification attesting that he is their salaries and wages or work instructions from, and report the
authorized to represent said corporation or establishment; results of their assignment to, their employers.
and (ii) a copy of the resolution of the board of directors
of said corporation, or other similar resolution or b) Where two (2) or more Regional Arbitration Branches have
instrument issued by said establishment, granting him jurisdiction over the workplace of the complainant or petitioner,
such authority. the Branch that first acquired jurisdiction over the case shall
exclude the others.
c) A non-lawyer who appears in contravention of this Section shall
not be recognized in any proceedings before the Labor Arbiter or c) When venue is not objected to before the filling of position
the Commission. papers such issue shall be deemed waived.
d) Appearances may be made orally or in writing.In both cases, the d) The venue of an action may be changed or transferred to a
complete name and office address of both parties shall be made on different Regional Arbitration Branch other than where the
record and the adverse party or his counsel or representative complaint was filed by written agreement of the parties or when
properly notified. the Commission or Labor Arbiter before whom the case is pending
so orders, upon motion by the proper party in meritorious cases.
e) Any change in the address of counsel or representative should
be filed with the records of the case and furnished the adverse e) Cases involving overseas Filipino workers may be filed before
party or counsel. the Regional Arbitration Branch having jurisdiction over the place
where the complainant resides or where the principal office of any
f) Any change or withdrawal of counsel or representative shall be of the respondents is situated, at the option of the complainant.
made in accordance with the Rules of Court.
Section 2. Raffle and Assignment of Cases. - a) All complaints and petitions
Section 9. Authority to Bind Party. - Attorneys and other representatives of filed with the docket unit of the Regional Arbitration Branch shall be
parties shall have authority to bind their clients in all matters of procedure; immediately raffled and assigned to a Labor Arbiter from receipt thereof.
but they cannot, without a special power of attorney or express consent,
enter into a compromise agreement with the opposing party in full or partial b) The Executive Labor Arbiter shall be responsible for the
discharge of a client's claim. immediate raffle and assignment of all complaints and petitions
filed with his Regional Arbitration Branch, and the immediate
RULE IV forwarding of all subsequent pleadings and motions.
VENUE, ASSIGNMENT AND DISPOSITION OF CASES
c) All pleadings and motions subsequent to the filing of the
Section 1. Venue. - a) All cases which Labor Arbiters have authority to hear complaint shall be forwarded to the Labor Arbiter before whom the
and decide may be filed in the Regional Arbitration Branch having case is pending within twenty-four (24) hours from receipt thereof.
jurisdiction over the workplace of the complainant or petitioner.
Section 3. Consolidation of Cases and Complaints. - Where there are two
For purposes of venue, the workplace shall be understood as the or more cases or complaints pending before different Labor Arbiters in the
place or locality where the employee is regularly assigned at the same Regional Arbitration Branch involving the same employer and
common principal causes of action, or the same parties with different causes e) Cases arising from any violation of Article 264 of the Labor
of action, the subsequent cases or complaints shall be consolidated with the Code, as amended, including questions involving the legality of
first to avoid unnecessary costs or delay.Such consolidated cases or strikes and lockouts;
complaints shall be disposed of by the Labor Arbiter to whom the first case
was assigned. f) Except claims for employees compensation not included in the
next succeeding paragraph, social security, medicare, and
In case of objection to the consolidation, the same shall be resolved by the maternity benefits, all other claims arising from employer-
Executive Labor Arbiter.An order resolving a motion or objection to employee relations, including those of persons in domestic or
consolidation shall be inappealable. household service, involving an amount exceeding Five Thousand
Pesos (P5,000.00), whether or not accompanied with a claim for
Section 4. Disposition of Cases. - Subject to the provisions of Article 263 reinstatement;
(g) of the Labor Code, as amended, when a case is assigned to a Labor
Arbiter, the entire case and any or all incidents thereto shall be considered g) Money claims arising out of employer-employee relationship or
assigned to him; and the same shall be disposed of in the same proceedings by virtue of any law or contract, involving Filipino workers for
to avoid multiplicity of suits or proceedings. overseas deployment, including claims for actual, moral,
exemplary and other forms of damages;
When the Secretary of Labor and Employment has assumed jurisdiction
over a strike or lockout or certified the same to the Commission, the parties h) Wage distortion disputes in unorganized establishments not
to such dispute shall immediately inform the Secretary or the Commission, voluntarily settled by the parties pursuant to Republic Act
as the case may be, of all cases directly related to the dispute between them No.6727;
pending before any Regional Arbitration Branch, and the Labor Arbiters
handling the same of such assumption or certification.The Labor Arbiter i) Enforcement of compromise agreements when there is non-
concerned shall forward within two (2) days from notice the entire records compliance by any of the parties pursuant to Article 227 of the
of the case to the Commission or to the Secretary of Labor, as the case may Labor Code, as amended; and
be, for proper disposition. j) Other cases as may be provided by law.
RULE V Cases arising from the interpretation or implementation of collective
PROCEEDINGS BEFORE LABOR ARBITERS bargaining agreements and those arising from the interpretation or
Section 1.Jurisdiction of Labor Arbiters. - Labor Arbiters shall have enforcement of company personnel policies shall be disposed of by the
original and exclusive jurisdiction to hear and decide the following cases Labor Arbiter by referring the same to the grievance machinery and
involving all workers, whether agricultural or non-agricultural: voluntary arbitration, as may be provided in said agreements.

a) Unfair labor practice cases; Section 2. Nature of Proceedings. - The proceedings before the Labor
Arbiter shall be non-Iitigious in nature.Subject to the requirements of due
b) Termination disputes; process, the technicalities of law and procedure and the rules obtaining in
the courts of law shall not strictly apply thereto.The Labor Arbiter may
c) If accompanied with a claim for reinstatement, those cases that avail himself of all reasonable means to ascertain the facts of the
workers may file involving wages, rates of pay, hours of work and controversy speedily, including ocular inspection and examination of well-
other terms and conditions of employment; informed persons.
d) Claims for actual, moral, exemplary and other forms of damages Section 3. Mandatory Conciliation and Mediation Conference. - a) The
arising from employer-employee relations; mandatory conciliation and mediation conference shall be called for the
purpose of (1) amicably settling the case upon a fair compromise; (2) Section 5. Non-Appearance of Parties. - The non-appearance of the
determining the real parties in interest; (3) determining the necessity of complainant or petitioner during the two (2) settings for mandatory
amending the complaint and including all causes of action; (4) defining and conciliation and mediation conference scheduled in the summons, despite
simplifying the issues in the case; (5) entering into admissions or due notice thereof, shall be a ground for the dismissal of the case without
stipulations of facts; and (6) threshing out all other preliminary matters.The prejudice.
Labor Arbiter shall preside and take full control of the proceedings.
In case of non-appearance by the respondent during the first scheduled
b) Conciliation and mediation efforts shall be exerted by the Labor conference, the second conference shall proceed as scheduled in the
Arbiters all throughout the proceedings.Should the parties arrive at summons.If the respondent still fails to appear at the second conference
any agreement as to the whole or any part of the dispute, the same despite being duly served with summons, the Labor Arbiter shall
shall be reduced to writing and signed by the parties and their immediately terminate the mandatory conciliation and mediation
respective counsel or authorized representative, if any, before the conference.The Labor Arbiter shall thereafter allow the complainant or
Labor Arbiter. petitioner to file his verified position paper and submit evidence in support
of his causes of action, and thereupon render his decision on the basis of the
c) In any case, the compromise agreement shall be approved by the evidence on record.
Labor Arbiter, if after explaining to the parties, particularly to the
complainants, the terms, conditions and consequences thereof, he Section 6. Motion to Dismiss. - On or before the date set for the mandatory
is satisfied that they understand the agreement, that the same was conciliation and mediation conference, the respondent may file a motion to
entered into freely and voluntarily by them, and that it is not dismiss.Any motion to dismiss on the ground of lack of jurisdiction,
contrary to law, morals, and public policy. improper venue, or that the cause of action is barred by prior judgment,
prescription, or forum shopping, shall be immediately resolved by the Labor
d) A compromise agreement duly entered into in accordance with Arbiter through a written order.An order denying the motion to dismiss, or
this Section shall be final and binding upon the parties and shall suspending its resolution until the final determination of the case, is not
have the force and effect of a judgment rendered by the Labor appealable.
Arbiter.
Section 7. Submission of Position Paper and Reply. - a) Subject to Sections
e) The mandatory conciliation and mediation conference shall, 4 and 5 of this Rule, the Labor Arbiter shall direct the parties to submit
except for justifiable grounds, be terminated within thirty (30) simultaneously their verified position papers with supporting documents
calendar days from the date of the first conference. and affidavits, if any, within an inextendible period of ten (10) calendar
f) No motion for postponement shall be entertained except on days from the date of termination of the mandatory conciliation and
meritorious grounds. mediation conference.

Section 4. Effect of Failure of Conciliation and Mediation. - Should the b) The position papers of the parties shall cover only those claims
parties fail to agree upon an amicable settlement, either in whole or in part, and causes of action raised in the complaint or amended complaint,
during the mandatory conciliation and mediation conference, the Labor excluding those that may have been amicably settled, and
Arbiter shall terminate the conciliation and mediation stage and proceed to accompanied by all supporting documents, including the affidavits
pursue the other purposes of the said conference as enumerated in the of witnesses, which shall take the place of their direct testimony.
immediately preceding Section.Thereafter, the Labor Arbiter shall direct the c) A reply may be filed by any party within ten (10) calendar days
parties to simultaneously file their respective position papers on the issues from receipt of the position paper of the adverse party.
agreed upon by the parties and as reflected in the minutes of the
proceedings.
d) In their position papers and replies, the parties shall not be time due to the unjustified non-appearance of the complainant or petitioner,
allowed to allege facts, or present evidence to prove facts and any who was duly notified of the clarificatory hearing, shall be with prejudice.
cause or causes of action not referred to or included in the original
or amended complaint or petition. b) In case the respondent fails to appear during the hearing or
clarificatory conference despite due notice thereof, the complainant
Section 8. Determination of Necessity of Hearing or Clarificatory shall be allowed to present evidence ex-parte, without prejudice to
Conference. - Immediately after the submission by the parties of their cross-examination at the next hearing or conference.Two (2)
position paper or reply, as the case may be, the Labor Arbiter shall, motu successive non-appearances by the respondent during his
proprio, determine whether there is a need for a hearing or clarificatory scheduled presentation of evidence or opportunity to cross-
conference.At this stage, he may, at his discretion and for the purpose of examine witnesses, despite due notice thereof, shall be construed
making such determination, ask clarificatory questions to further elicit facts as a waiver on his part to present evidence or conduct cross-
or information, including but not limited to the subpoena of relevant examination.
documentary evidence, if any, from any party or witness.
c) The parties and their counsels appearing before the Labor
Section 9. Role of the Labor Arbiter in Hearing and Clarificatory Arbiter shall be prepared for continuous hearing or clarificatory
Conference. - a) The Labor Arbiter shall take full control and personally conference.No postponement or continuance shall be allowed by
conduct the hearing or clarificatory conference.Unless otherwise provided the Labor Arbiter, except upon meritorious grounds and subject
by law, the Labor Arbiter shall determine the order of presentation of always to the requirement of expeditious disposition of cases.In
evidence by the parties, subject to the requirements of due process.He shall any case, the hearing or clarificatory conference shall be
examine the parties and their witnesses with respect to the matters at issue; terminated within ninety (90) calendar days from the date of the
and ask questions only for the purpose of clarifying points of law or fact initial hearing or conference.
involved in the case.He shall limit the presentation of evidence to matters
relevant to the issue before him and necessary for a just and speedy d) Paragraph (c) of this Section notwithstanding, in cases involving
disposition of the case. overseas Filipino workers, the aggregate period for conducting the
mandatory conciliation and mediation conference, including
b) In the cross-examination of witnesses, only relevant, pertinent hearing on the merits or clarificatory conference, shall not exceed
and material questions necessary to enlighten the Labor Arbiter sixty (60) days, which shall be reckoned from the date of
shall be allowed. acquisition of jurisdiction by the Labor Arbiter over the person of
the respondents.
c) The Labor Arbiter shall make a written summary of the
proceedings, including the substance of the evidence presented, in Section 11. Submission of the Case for Decision. - Upon the submission by
consultation with the parties.The written summary shall be signed the parties of their position papers or replies, or the lapse of the period to
by the parties and shall form part of the records. submit the same, the case shall be deemed submitted for decision unless the
Labor Arbiter calls for a hearing or clarificatory conference in accordance
Section 10. Non-Appearance of Parties, and Postponement of Hearings and with Section 8 of this Rule, in which case, notice of hearing or clarificatory
Clarificatory Conferences. - a) Non-appearance at a hearing or clarificatory conference shall be immediately sent to the parties.Upon termination of the
conference by the complainant or petitioner, who was duly notified thereof, said hearing or conference, the case shall be deemed submitted for decision.
may be sufficient cause to dismiss the case without prejudice.Subject to
Section 16 of this Rule, where proper justification is shown by proper Section 12. Inhibition. - A Labor Arbiter may voluntarily inhibit himself
motion to warrant the re-opening of the case, the Labor Arbiter shall call from the resolution of a case and shall so state in writing the legal
another hearing or clarificatory conference and continue the proceedings justifications therefor.Upon motion of a party, either on the ground of
until the case is finally decided.The dismissal of the case for the second relationship within the fourth civil degree of consanguinity or affinity with
the adverse party or counsel, or on question of impartiality, the Labor Section 1. Periods of Appeal. - Decisions, resolutions or orders of the Labor
Arbiter may inhibit himself from further hearing and deciding the case.Such Arbiter shall be final and executory unless appealed to the Commission by
motion shall be resolved within five (5) days from the filing thereof.An any or both parties within ten (10) calendar days from receipt thereof; and
order denying or granting a motion for inhibition is inappealable. in case of decisions, resolutions or orders of the Regional Director of the
Department of Labor and Employment pursuant to Article 129 of the Labor
Section 13. Period to Decide Case. - The Labor Arbiter shall render his Code, within five (5) calendar days from receipt thereof.If the 10th or 5th
decision within thirty (30) calendar days, without extension, after the day, as the case may be, falls on a Saturday, Sunday or holiday, the last day
submission of the case by the parties for decision, even in the absence of to perfect the appeal shall be the first working day following such Saturday,
stenographic notes; Provided however, that cases involving overseas Sunday or holiday.
Filipino workers shall be decided within ninety (90) calendar days after the
filing of the complaint which shall commence to run upon acquisition by No motion or request for extension of the period within which to perfect an
the Labor Arbiter of jurisdiction over the respondents. appeal shall be allowed.
Section 14. Contents of Decisions. - The decisions and orders of the Labor Section 2. Grounds. - The appeal may be entertained only on any of the
Arbiter shall be clear and concise and shall include a brief statement of the: following grounds:
a) facts of the case; b) issues involved; c) applicable laws or rules; d)
conclusions and the reasons therefor; and e) specific remedy or relief a) If there is prima facie evidence of abuse of discretion on the part of the
granted.In cases involving monetary awards, the decisions or orders of the Labor Arbiter or Regional Director;
Labor Arbiter shall contain the amount awarded. b) If the decision, resolution or order was secured through fraud or
In case the decision of the Labor Arbiter includes an order of reinstatement, coercion, including graft and corruption;
it shall likewise contain: a) a statement that the reinstatement aspect is c) If made purely on questions of law; and/or
immediately executory; and b) a directive for the employer to submit a
report of compliance within ten (10) calendar days from receipt of the said d) If serious errors in the findings of facts are raised which, if not corrected,
decision. would cause grave or irreparable damage or injury to the appellant.
Section 15. Motions for Reconsideration and Petitions for Relief from Section 3. Where Filed. - The appeal shall be filed with the Regional
Judgment. - No motions for reconsideration or petitions for relief from Arbitration Branch or Regional Office where the case was heard and
judgment of any decision, resolution or order of a Labor Arbiter shall be decided.
allowed.However, when one such motion for reconsideration is filed, it
shall be treated as an appeal provided that it complies with the requirements Section 4. requisites For Perfection Of Appeal. - a) The appeal shall be: 1)
for perfecting an appeal.In the case of a petition for relief from judgment, filed within the reglementary period provided in Section 1 of this Rule; 2)
the Labor Arbiter shall elevate the case to the Commission for disposition. verified by the appellant himself in accordance with Section 4, Rule 7 of the
Rules of Court, as amended; 3) in the form of a memorandum of appeal
Section 16. Revival And Re-Opening Or Re-Filing Of Dismissed Case. - A which shall state the grounds relied upon and the arguments in support
party may file a motion to revive or re-open a case dismissed without thereof, the relief prayed for, and with a statement of the date the appellant
prejudice, within ten (10) calendar days from receipt of notice of the order received the appealed decision, resolution or order; 4) in three (3) legibly
dismissing the same; otherwise, his only remedy shall be to re-file the case typewritten or printed copies; and 5) accompanied by i) proof of payment of
in the arbitration branch of origin. the required appeal fee; ii) posting of a cash or surety bond as provided in
Section 6 of this Rule; iii) a certificate of non-forum shopping; and iv) proof
RULE VI of service upon the other parties.
APPEALS
b) A mere notice of appeal without complying with the other d) a certificate of authority from the Insurance Commission;
requisites aforestated shall not stop the running of the period for
perfecting an appeal. e) certificate of registration from the Securities and Exchange
Commission;
c) The appellee may file with the Regional Arbitration Branch or
Regional Office where the appeal was filed, his answer or reply to f) certificate of authority to transact surety business from the
appellant's memorandum of appeal, not later than ten (10) calendar Office of the President;
days from receipt thereof.Failure on the part of the appellee who g) certificate of accreditation and authority from the Supreme
was properly furnished with a copy of the appeal to file his answer Court; and
or reply within the said period may be construed as a waiver on his
part to file the same. h) notarized board resolution or secretary's certificate from the
bonding company showing its authorized signatories and their
d) Subject to the provisions of Article 218 of the Labor Code, once specimen signatures.
the appeal is perfected in accordance with these Rules, the
Commission shall limit itself to reviewing and deciding only the A cash or surety bond shall be valid and effective from the date of deposit
specific issues that were elevated on appeal. or posting, until the case is finally decided, resolved or terminated, or the
award satisfied.This condition shall be deemed incorporated in the terms
Section 5. Appeal Fee. - The appellant shall pay an appeal fee of One and conditions of the surety bond, and shall be binding on the appellants
Hundred Fifty Pesos (P150.00) to the Regional Arbitration Branch or and the bonding company.
Regional Office of origin, and the official receipt of such payment shall
form part of the records of the case. The appellant shall furnish the appellee with a certified true copy of the said
surety bond with all the above-mentioned supporting documents.The
Section 6. Bond. - In case the decision of the Labor Arbiter or the Regional appellee shall verify the regularity and genuineness thereof and immediately
Director involves a monetary award, an appeal by the employer may be report any irregularity to the Commission.
perfected only upon the posting of a bond, which shall either be in the form
of cash deposit or surety bond equivalent in amount to the monetary award, Upon verification by the Commission that the bond is irregular or not
exclusive of damages and attorney's fees. genuine, the Commission shall cause the immediate dismissal of the appeal,
and censure or cite in contempt the responsible parties and their counsels, or
In case of surety bond, the same shall be issued by a reputable bonding subject them to reasonable fine or penalty.
company duly accredited by the Commission or the Supreme Court, and
shall be accompanied by original or certified true copies of the following: No motion to reduce bond shall be entertained except on meritorious
grounds, and only upon the posting of a bond in a reasonable amount in
a) a joint declaration under oath by the employer, his counsel, and relation to the monetary award.
the bonding company, attesting that the bond posted is genuine,
and shall be in effect until final disposition of the case. The mere filing of a motion to reduce bond without complying with the
requisites in the preceding paragraphs shall not stop the running of the
b) an indemnity agreement between the employer-appellant and period to perfect an appeal.
bonding company;
Section 7. Records of Case on Appeal. - The records of a case shall have a
c) proof of security deposit or collateral securing the bond: corresponding index of its contents which shall include the following: a) the
provided, that a check shall not be considered as an acceptable original copy of the complaint; b) other pleadings and motions; c) minutes
security; of the proceedings, notices, transcripts of stenographic notes, if any; d)
decisions, orders, and resolutions as well as proof of service thereof, if b) Commission En Banc. - The Commission shall sit en banc only
available; e) the computation of the award; f) memorandum of appeal and for purposes of promulgating rules and regulations governing the
the reply or answer thereto, if any, and proof of service, if available; g) hearing and disposition of cases before its Divisions and Regional
official receipt of the appeal fee; and h) the appeal bond, if any. Arbitration Branches, and for the formulation of policies affecting
its administration and operations.It may, on temporary or
The records shall be chronologically arranged and paged prominently. emergency basis, allow cases within the jurisdiction of any
Section 8. Transmittal Of Records Of Case On Appeal. - Within forty-eight Division to be heard by any other Division whose docket allows
(48) hours after the filing of the appeal, the records of the case shall be the additional workload and such transfer will not expose litigants
transmitted by the Regional Arbitration Branch or office of origin to the to unnecessary additional expense.
Commission. c) Divisions. - Unless otherwise provided by law, the Commission
Section 9. Perfection Of Appeal; Effect. - Without prejudice to immediate shall exercise its adjudicatory and all other powers, functions and
reinstatement pending appeal under duties through its five (5) Divisions.Each Division shall consist of
one member from the public sector who shall act as the Presiding
Section 6 of Rule XI, once an appeal is filed, the Labor Arbiter loses Commissioner and one member each from the workers and
jurisdiction over the case.All pleadings and motions pertaining to the employers sectors, respectively.
appealed case shall thereafter be addressed to and filed with the
Commission. Of the five (5) Divisions, the First, Second and Third Divisions
shall have exclusive territorial jurisdiction over appealed cases
Section 10. Frivolous or Dilatory Appeals. - No appeal from an coming from Luzon; Fourth Division, appealed cases from Visayas
interlocutory order shall be entertained.To discourage frivolous or dilatory Region; and the Fifth Division, appealed cases from Mindanao
appeals, including those taken from interlocutory orders, the Commission including those from the Autonomous Region for Muslim
may censure or cite in contempt the erring parties and their counsels, or Mindanao.
subject them to reasonable fine or penalty.
d) Headquarters. - As provided by law, the Commission and its
Section 11. Appeals from Decision of Other Agencies. - The Rules provided First, Second and Third Divisions shall have their main office in
herein governing appeals from the decisions or orders of Labor Arbiters the National Capital Region, and the Fourth and Fifth Divisions in
shall apply to appeals to the Commission from decisions or orders of the the cities of Cebu and Cagayan de Oro, respectively.
other offices or agencies appealable to the Commission according to law.
Section 3. The Chairman. - The Chairman shall preside over all sessions of
RULE VII the Commission en banc.He is the Presiding Commissioner of the First
PROCEEDINGS BEFORE THE COMMISSION Division.In case of the effective absence or incapacity of the Chairman, the
Presiding Commissioner of the Second Division shall be the Acting
Section 1. Jurisdiction of the Commission. - The Commission shall exercise Chairman.
exclusive, original, and appellate jurisdiction in accordance with law.
The Chairman, aided by the Executive Clerk of the Commission, shall have
Section 2. Composition and Internal Functions of the Commission En Banc administrative supervision over the Commission and its Regional
and Its Divisions. - a) Composition. - Unless otherwise provided by law, the Arbitration Branches and all its personnel including the Executive Labor
Commission shall be composed of the Chairman and of fourteen (14) Arbiters and Labor Arbiters.
Commissioners.
Section 4. Commission En Banc Session, Quorum and Vote. -
a) Commission En Banc. - The Chairman shall call the Commission to an en
banc session at least twice a year, preferably on the first week of June and Section 6. Dissenting Opinion. - Should any member of a Division indicate
the first week of December, to deliberate and decide on any matter before his intention to write a dissenting opinion, he may file the same within the
it.However, a majority of all the members of the Commission may call a period prescribed for deciding or resolving the appeal; otherwise, such
special en banc session to discuss and decide on urgent and vital matters written dissenting opinion shall not be considered part of the records of the
which need immediate action. case.
b) Quorum. - The presence of a majority of all the members of the Section 7. Inhibition. - No motion to inhibit the entire Division of the
Commission shall be necessary to constitute a quorum.The vote or Commission shall be entertained.However, any Commissioner may inhibit
concurrence of the majority of the members constituting a quorum himself from the consideration and resolution of any case or matter before
shall be the decision or resolution of the Commission en banc. the Division and shall so state in writing the legal or justifiable grounds
therefor.In the event that a member inhibits himself, the case shall be raffled
c) Division. - The presence of at least two (2) Commissioners of a by the Executive Clerk or Deputy Executive Clerk to either of the two (2)
Division shall constitute a quorum.The concurrence of two (2) remaining Commissioners.In case two (2) Commissioners in a Division
Commissioners of a Division shall be necessary for the inhibit themselves in a case or matter before it, the Chairman shall, as far as
pronouncement of a judgment or resolution. practicable, appoint two (2) Commissioners from other Divisions
Whenever the required membership in a Division is not complete representing the sector of the Commissioners who inhibited themselves.
and the concurrence of two (2) Commissioners to arrive at a Section 8. Abstention. - In the event of an abstention, and the concurrence
judgment or resolution cannot be obtained, the Chairman shall of two (2) Commissioners to arrive at a judgment or resolution cannot be
designate such number of additional Commissioners from the other obtained, Section 4 (c), second paragraph, of this Rule shall apply.
Divisions as may be necessary from the same sector.
Section 9. Consolidation of Cases. - Appealed and injunction cases
d) Role of Chairman in the Division. - The Chairman of the involving the same parties, issues, or related questions of fact or law shall
Commission may convene and preside over the session of any be consolidated before the Commissioner to whom the case with the lowest
Division to consider any case pending before it and participate in case number is assigned.Notice of the consolidation shall be given by the
its deliberations, if in his judgment, his presence therein will best Executive Clerk or Deputy Executive Clerk to the other members of the
serve the interests of labor justice.He shall not however, participate concerned Divisions.
in the voting by the Division, except when he is acting as Presiding
Commissioner of the Division in the absence of the regular Section 10. Technical Rules Not Binding. - The rules of procedure and
Presiding Commissioner. evidence prevailing in courts of law and equity shall not be controlling and
the Commission shall use every and all reasonable means to ascertain the
Section 5. Consultation. - The conclusions of a Division on any case or facts in each case speedily and objectively, without regard to technicalities
matter submitted to it for decision shall be reached in consultation before of law or procedure, all in the interest of due process.
the case is assigned to a member for the writing of the opinion.It shall be
mandatory for the Division to meet for the purpose of the consultation In any proceeding before the Commission, the parties may be represented
ordained herein. by legal counsel but it shall be the duty of the Chairman, any Presiding
Commissioner or Commissioner to exercise complete control of the
A certification to this effect signed by the Presiding Commissioner of the proceedings at all stages.
Division shall be issued and a copy thereof attached to the record of the
case and served upon the parties. Section 11. Conciliation and Mediation. - In the exercise of its exclusive,
original and appellate jurisdiction, the Commission may exert all efforts
towards the amicable settlement of a labor dispute.
The settlement of cases on appeal, to be valid and binding between the Should a motion for reconsideration be entertained pursuant to this section,
parties, shall be made before the Commissioner or his authorized the resolution shall be executory after ten (10) calendar days from receipt
representative. thereof.
Section 12. Role of the Labor Arbiter Assigned to the Commission. - In the RULE VIII
resolution of cases on appeal, and those mentioned in Rules VIII and X, the CERTIFIED CASES
Commission shall be assisted by a Labor Arbiter who may be directed to
study, review, hear and receive evidence, and submit reports thereon. Section 1. Policy. - It is the declared policy of certification of labor disputes
for compulsory arbitration to ensure and maintain industrial peace based on
Section 13. Form of Decision, Resolution and Order. - The decision, social justice and national interest by having a full, complete and immediate
resolution and order of the Commission shall state clearly and distinctly the settlement or adjudication of all labor disputes between the parties, as well
findings of facts, issues, and conclusions of law on which it is based, and as issues that are relevant to or incidents of the certified issues.
the relief granted, if any.If the decision, resolution or order involves
monetary awards, the same shall contain the specific amount awarded as of Section 2. Certified Labor Disputes. - Certified labor disputes are cases
the date the decision is rendered. certified to the Commission for compulsory arbitration under Article 263
(g) of the Labor Code.
Section 14. Finality Of Decision Of The Commission And Entry Of
Judgment. - a) Finality of the Decisions, Resolutions or Orders of the Section 3. Effects of Certification. - a) Upon certification, the intended or
Commission. - Except as provided in Section 9 of Rule X, the decisions, impending strike or lockout is automatically enjoined, notwithstanding the
resolutions or orders of the Commission shall become final and executory filing of any motion for reconsideration of the certification order nor the
after ten (10) calendar days from receipt thereof by the parties. non-resolution of any such motion which may have been duly submitted to
the Office of the Secretary of Labor and Employment.If a work stoppage
b) Entry of Judgment. - Upon the expiration of the ten (10) has already taken place at the time of the certification, all striking or locked
calendar day period provided in paragraph (a) of this Section, the out employees shall immediately return to work and the employer shall
decision, resolution, or order shall be entered in a book of entries immediately resume operations and readmit all workers under the same
of judgment. terms and conditions prevailing before the strike or lockout.
The Executive Clerk or Deputy Executive Clerk shall consider the decision, b) All cases between the same parties, except where the
resolution or order as final and executory after sixty (60) calendar days from certification order specifies otherwise the issues submitted for
date of mailing in the absence of return cards, certifications from the post arbitration which are already filed or may be filed, and are relevant
office, or other proof of service to parties. to or are proper incidents of the certified case, shall be considered
subsumed or absorbed by the certified case, and shall be decided
Section 15.MOTIONS FOR RECONSIDERATION. - Motion for by the appropriate Division of the Commission.
reconsideration of any decision, resolution or order of the Commission shall
not be entertained except when based on palpable or patent errors; provided Subject to the second paragraph of Section 4 of Rule IV, the
that the motion is under oath and filed within ten (10) calendar days from parties to a certified case, under pain of contempt, shall inform
receipt of decision, resolution or order, with proof of service that a copy of their counsels and the Division concerned of all cases pending with
the same has been furnished, within the reglementary period, the adverse the Regional Arbitration Branches and the Voluntary Arbitrators
party; and provided further, that only one such motion from the same party relative or incident to the certified case before it.
shall be entertained.
c) Whenever a certified labor dispute involves a business entity
with several workplaces located in different regions, the Division
having territorial jurisdiction over the principal office of the Section 1. Direct Contempt. - The Chairman or any Commissioner or Labor
company shall acquire jurisdiction to decide such labor dispute; Arbiter may summarily adjudge guilty of direct contempt any person
unless the certification order provides otherwise. committing any act of misbehavior in the presence of or so near the
Chairman or any Commissioner or Labor Arbiter as to obstruct or interrupt
Section 4. Effects Of Defiance. - Non-compliance with the certification the proceedings before the same, including disrespect toward said officials,
order of the Secretary of Labor and Employment shall be considered as an offensive acts toward others, or refusal to be sworn or to answer as a
illegal act committed in the course of the strike or lockout, and shall witness or to subscribe to an affidavit or deposition when lawfully required
authorize the Commission to enforce the same under pain of immediate to do so.If the offense is committed against the Commission or any member
disciplinary action, including dismissal or loss of employment status or thereof, the same shall be punished by a fine not exceeding Five Hundred
payment by the locking-out employer of backwages, damages and/or other Pesos (P500.00) or imprisonment not exceeding five (5) days, or both; and,
affirmative relief, even criminal prosecution against the liable parties. if the offense is committed against any Labor Arbiter, the same shall be
The Commission may also seek the assistance of law enforcement agencies punished by a fine not exceeding One Hundred Pesos (P100.00) or
to ensure compliance and enforcement of its orders and resolutions. imprisonment not exceeding one (1) day, or both.

Section 5. Procedure in Certified Cases. - a) Unless there is a necessity to Any person adjudged guilty of direct contempt by a Labor Arbiter may,
conduct a clarificatory hearing, the Commission shall resolve all certified within a period of five (5) calendar days from notice of the judgment,
cases within thirty (30) calendar days from receipt by the assigned appeal the same to the Commission and the execution of said judgment
Commissioner of the complete records, which shall include the position shall be suspended pending resolution of the appeal upon the filing by said
papers of the parties and the order of the Secretary of Labor and person of a bond on condition that he will abide by and perform the
Employment denying the motion for reconsideration of the certification judgment should the appeal be decided against him.A judgment of the
order, if such motion has been filed. Commission on direct contempt shall be immediately executory and
inappealable.
b) Where a clarificatory hearing is needed, the Commission shall,
within five (5) calendar days from receipt of the records, issue a Section 2. Indirect Contempt. - The Commission or any Labor Arbiter may,
notice to be served on the parties through the fastest means in accordance with Rule 71 of the Rules of Court, cite any person for
available, requiring them to appear and submit additional evidence, indirect contempt and impose the appropriate penalty under any of the
if any. following grounds:

c) Notwithstanding the necessity for a clarificatory hearing, all a) Misbehavior of any officer or employee in the performance of
certified cases shall be resolved by the Commission within sixty his official duties or in his official transaction;
(60) calendar days from receipt of the complete records. b) Disobedience of, or resistance to, a lawful writ, order or
d) No motion for postponement or extension shall be entertained. decision;

Section 6. Execution of Judgment in Certified Case. - Upon issuance of the c) Any abuse of, or any unlawful interference with the processes or
entry of judgment, the Commission, motu proprio or upon motion by the proceedings not constituting direct contempt;
proper party, may cause the execution of the judgment in the certified case. d) Any improper conduct tending, directly or indirectly, to impede,
RULE IX obstruct or degrade the administration of justice;
CONTEMPT e) Assuming to be an attorney or a representative of party without
authority;
f) Failure to obey a subpoena duly served; or b) That substantial and irreparable injury to petitioner's property
will follow;
g) Other grounds analogous to the foregoing.
c) That as to each item of relief to be granted, greater injury will be
The same procedure provided in the second paragraph of Section 1 of this inflicted upon the petitioner by the denial of relief than will be
Rule shall govern any person adjudged guilty of indirect contempt. inflicted upon respondents by the granting of relief;
RULE X d) That petitioner has no adequate remedy at law; and
INJUNCTION
e) That the public officers charged with the duty to protect
Section 1. Injunction in Ordinary Labor Disputes. - A preliminary petitioner's property are unable or unwilling to furnish adequate
injunction or restraining order may be granted by the Commission through protection.
its Divisions pursuant to the provisions of paragraph (e) of Article 218 of
the Labor Code, as amended, when it is established on the basis of the Section 3. Hearing; Notice Thereof. - Hearings shall be held after due and
sworn allegations in the petition that the acts complained of involving or personal notice thereof has been served, in such manner as the Commission
arising from any labor dispute before the Commission, which, if not shall direct, to all known persons against whom relief is sought, and also to
restrained or performed forthwith, may cause grave or irreparable damage the Chief Executive and other public officials of the province or city within
to any party or render ineffectual any decision in favor of such party. which the unlawful acts have been threatened or committed charged with
the duty to protect petitioner's property.
A certification of non-forum shopping shall accompany the petition for
injunction. Section 4. Reception of Evidence; Delegation. - The reception of evidence
for the application of a writ of injunction may be delegated by the
The writ of preliminary injunction or temporary restraining order shall Commission to any of its Labor Arbiters who shall conduct such hearings in
become effective only upon posting of the required cash bond in the amount such places as he may determine to be accessible to the parties and their
to be determined by the Commission to answer for any damage that may be witnesses, and shall thereafter submit his report and recommendation to the
suffered by the party enjoined, if it is finally determined that the petitioner Commission within fifteen (15) days from such delegation.
is not entitled thereto.
Section 5. Ocular Inspection. - The Chairman, any Commissioner, Labor
Section 2. Injunction in Strikes or Lockouts. - A preliminary or permanent Arbiter or their duly authorized representatives, may, at any time during
injunction may be granted by the Commission only after hearing the working hours, conduct an ocular inspection on any establishment, building,
testimony of witnesses and with opportunity for cross-examination in ship or vessel, place or premises, including any work, material, implement,
support of the allegations of the complaint or petition made under oath, and machinery, appliance or any object therein, and ask any employee, laborer,
testimony by way of opposition thereto, if offered, and only after a finding or any person, as the case may be, for any information or data concerning
of fact by the Commission: any matter or question relative to the object of the petition.
a) That prohibited or unlawful acts have been threatened and will The ocular inspection reports shall be submitted to the appropriate Division
be committed and will be continued unless restrained, but no within twenty-four (24) hours from the conduct thereof.
injunction or temporary restraining order shall be issued on
account of any threat, prohibited or unlawful act, except against the Section 6. Temporary Restraining Order; Requisites. - If the petitioner shall
person or persons, association or organization making the threat or also allege that, unless a temporary restraining order shall be issued without
committing the prohibited or unlawful act or actually authorizing notice, a substantial and irreparable injury to petitioner's property will be
or ratifying the same after actual knowledge thereof. unavoidable, such a temporary restraining order may be issued upon
testimony under oath, or by affidavits of the petitioner's witnesses, the certificate of finality.If an appeal has been filed, a writ of execution may
sufficient, if sustained, to justify the Commission in the issuance thereof. be issued when there is an entry of judgment as provided for in Section 14
of Rule VII.
Section 7. Cash Bond. - No temporary restraining order or writ of
preliminary injunction shall be issued except on the condition that petitioner b) No motion for execution shall be entertained nor a writ of
shall first file an undertaking to answer for the damages and post a cash execution be issued unless the Labor Arbiter or the Commission is
bond in the amount of Fifty Thousand Pesos (P50,000.00), or such higher in possession of the records of the case which shall include an
amount as may be determined by the Commission, to recompense those entry of judgment if the case was appealed; except that, as
enjoined for any loss, expense or damage caused by the improvident or provided for in Section 14 of Rule V and Section 6 of this Rule,
erroneous issuance of such order or injunction, including all reasonable and in those cases where partial execution is allowed by law, the
costs, together with a reasonable attorney's fee, and expense of defense Labor Arbiter shall retain duplicate original copies of the decision
against the order or against the granting of any injunctive relief sought in to be implemented and proof of service thereof for the purpose of
the same proceeding and subsequently denied by the Commission. immediate enforcement.
Section 8. Effectivity of Temporary Restraining Order. - A temporary Section 2. Pre-Execution Conference. - Within two (2) working days from
restraining order shall be effective for no longer than twenty (20) days receipt of a motion for the issuance of a writ of execution, and subject to
reckoned from the posting of the cash bond required under the preceding Section 1, paragraph (b) of this Rule, the Labor Arbiter shall schedule a pre-
section. During the said period, the parties shall be required to present execution conference or hearing to thresh out matters relevant to execution,
evidence to substantiate their respective positions in the main petition. including the computation of the award.
Section 9. Effects of Defiance. - The order or resolution enjoining the Section 3. Form and Contents of a Writ of Execution. - The writ of
performance of illegal acts shall be immediately executory in accordance execution must be issued in the name of the Republic of the Philippines
with the terms thereof.In case of non-compliance, the Commission shall signed by the Commission or Labor Arbiter requiring the Sheriff to execute
impose such sanctions, and shall issue such orders, as may be necessary to the decision, order, or award of the Commission or Labor Arbiter, and must
implement the said order or resolution, including the enlistment of law contain the dispositive portion thereof, the amount, if any, to be demanded,
enforcement agencies having jurisdiction over the area for the purpose of and all lawful fees to be collected from the losing party or any other person
enforcing the same. required by law to obey the same.
Section 10. Ordinary Remedy in Law or in Equity. - Nothing in this Rule Section 4. Computation During Execution. - Where further computation of
shall deprive any party having a claim or cause of action under or upon such the award in the decision, resolution or order is necessary during the course
undertaking from electing to pursue his ordinary remedy by suit at law or in of the execution proceedings, no writ of execution shall be issued until after
equity. the computation has been approved by the Labor Arbiter in an order issued
after the parties have been duly notified and heard on the matter.
RULE XI
EXECUTION PROCEEDINGS Section 5. Execution of Monetary Judgment. - a) Immediate payment on
demand. - The Sheriff shall enforce a monetary judgment by demanding the
Section 1. Execution Upon Finality of Decision or Order. - a) A writ of immediate payment of the full amount stated in the writ of execution and all
execution may be issued motu proprio or on motion, upon a decision or lawful fees from the losing party or any other person required by law to
order that finally disposes of the action or proceedings after the parties and obey the same.
their counsels or authorized representatives are furnished with copies of the
decision or order in accordance with these Rules, but only after the
expiration of the period to appeal if no appeal has been filed, as shown by
b) In the event of failure or refusal of the losing party to pay the Section 8. Execution By Motion or By Independent Action. - A decision or
judgment award, the Sheriff shall immediately proceed against the order may be executed on motion within five (5) years from the date it
cash deposit or surety bond posted by the losing party, if any; becomes final and executory.After the lapse of such period, the judgment
shall become dormant, and may only be enforced by an independent action
c) If the bonding company refuses to comply with the writ of within a period of ten (10) years from date of its finality.
execution, then its president and officers or authorized
representatives shall be cited for contempt, and the bonding Section 9. Effect of Perfection of Appeal on Execution. - The perfection of
company shall be barred from transacting business with the an appeal shall stay the execution of the decision of the Labor Arbiter on
Commission; appeal, except execution for reinstatement pending appeal.
d) Should the cash deposit or surety bond be insufficient, or in case Section 10. Effect of Petition for Certiorari on Execution. - A petition for
the surety bond cannot be proceeded against for any reason, the certiorari with the Court of Appeals or the Supreme Court shall not stay the
Sheriff shall, within five (5) days from demand, execute the execution of the assailed decision unless a restraining order is issued by said
monetary judgment by levying on the property, personal and real, courts.
of the losing party not exempt from execution, sufficient to cover
the judgment award, which may be disposed of for value at a Section 11. Resolution of Motion to Quash. - The mere filing of a motion to
public auction to the highest bidder. quash shall not stay execution proceedings.A motion to quash shall be
resolved by the Labor Arbiter within ten (10) working days from
e) Proceeds of execution shall be deposited with the Cashier of the submission of said motion for resolution.
concerned Division or Regional Arbitration Branch, or with an
authorized depositary bank.Where payment is made in the form of Section 12. Third Party Claim. - A third party claim shall be filed within
a check, the same shall be payable to the Commission. five (5) days from the last day of posting or publication of the notice of
execution sale; otherwise the claim shall be forever barred.The third party
Section 6. Execution of Reinstatement Pending Appeal. - In case the claimant shall execute an affidavit stating his title to the property or right to
decision includes an order of reinstatement, and the employer disobeys the possession thereof with supporting evidence, and shall file the same with
directive under the second paragraph of Section 14 of Rule V or refuses to the Sheriff and the Commission or Labor Arbiter who issued the writ of
reinstate the dismissed employee, the Labor Arbiter shall immediately issue execution.Upon receipt of the third party claim, all proceedings, with
writ of execution, even pending appeal, directing the employer to respect to the execution of the property subject of such claim, shall
immediately reinstate the dismissed employee either physically or in the automatically be suspended.The Labor Arbiter who issued the writ may
payroll, and to pay the accrued salaries as a consequence of such require the third party claimant to adduce additional evidence in support of
reinstatement at the rate specified in the decision. his third party claim and to post a cash or surety bond equivalent to the
amount of his claim, as provided for in Section 6 of Rule VI, without
The Sheriff shall serve the writ of execution upon the employer or any other prejudice to the posting by the prevailing party of a supersedeas bond in an
person required by law to obey the same.If he disobeys the writ, such amount equivalent to that posted by the third party claimant.The Labor
employer or person may be cited for contempt in accordance with Rule IX. Arbiter shall resolve the propriety of such third party claim within ten (10)
Section 7. Enforcement of Writ of Execution. - In executing a decision, working days from submission of said claim for resolution.
resolution or order, the Sheriff, or other authorized officer acting as Sheriff Section 13. Return of Writ of Execution. - The writ of execution shall be
of the Commission, shall be guided strictly by these Rules, and by the returned to the Commission or Labor Arbiter who issued it at anytime, but
Manual on Execution of Judgment, which shall form part of these Rules.In not within ten (10) days nor beyond one hundred eighty (180) days, after
the absence of applicable rules, the Rules of Court, as amended, shall be receipt thereof by the Sheriff, who shall set forth in writing the whole
applied in a suppletory manner.
proceedings, and file it with the Commission or Labor Arbiter to form part acting through its Division, and shall perform similar functions and duties
of the records of the case. as discharged by the Deputy Clerks of Court of the Court of Appeals, and as
enumerated herein as functions of the Executive Clerk relative to their
Section 14. Sheriff's Report. - The Sheriff enforcing the writ of execution respective Divisions.
shall submit not later than thirty (30) days from receipt of such writ, and
every thirty (30) days thereafter, a report updating the Commission or Labor Section 4. Duties and Functions of the Executive Clerk and Deputy
Arbiter who issued the writ of execution on the status of the enforcement Executive Clerks. - a) Custody of Seal and Books. - He shall keep in his
thereof.A copy of the report shall be furnished the Chairman and the care and custody the Seal of the Commission, together with all the books
Executive Labor Arbiter. necessary for the recording of the proceedings of the Commission,
including the records, files and exhibits;
Section 15. Designation of Special Sheriffs and Imposition of Fines. - The
Chairman of the Commission may designate special Sheriffs and take any b) Filing of Pleadings. - He shall receive and file all cases and
measure, under existing laws, to ensure compliance with the decisions, pleadings and documents indicating thereon the date and time
resolutions or orders of the Commission and those of Labor Arbiters, filed.All pleadings shall be filed in three (3) legibly typewritten
including the imposition of administrative fine which shall not be less than copies in legal size;
Five Hundred Pesos (P500.00) nor more than Ten Thousand Pesos
(P10,000.00). c) Raffle and Assignment of Cases. - He shall assign appealed
cases for study or report strictly by raffle or as directed by the
Failure on the part of the Sheriff to submit the return or report required Chairman.In this connection, the raffle of cases for study or report
under Section 13 and 14 of this Rule within the stated period shall subject must be attended by the duly designated representative of the
him to the above administrative fine, or suspension for fifteen (15) days Members of the appropriate Division;
without pay, or both.
d) Service of Processes, Orders and Decisions. - He shall serve
RULE XII parties and counsel processes, notices of hearings, copies of
COMMISSION SEAL AND RECORDS, AND POWERS AND decisions, resolutions or orders issued by the Commission by mail
DUTIES OF COMMISSION OFFICIALS or by personal service and immediately attach the returns thereof to
the records;
Section 1. Seal of the Commission. - The seal of the National Labor
Relations Commission shall be of standard size, circular, with the e) Commission Calendar and Minutes Book. - He shall prepare the
inscription, running from left to right on the upper outside edge, the words Commission or Division calendars of sessions, attend such
"NATIONAL LABOR RELATIONS COMMISSION", and the lower sessions personally and immediately prepare the minutes
outside edge, the words "REPUBLIC OF THE PHILIPPINES", with a thereof.For this purpose, he shall keep a minutes book;
design at the center containing the coat of arms of the Department of Labor
and Employment. f) General Docket. - The Executive Clerk shall keep a general
docket for the Commission, each page of which shall be numbered
Section 2. The Executive Clerk. - The Executive Clerk shall assist the and prepared for receiving all the entries in a single page, and shall
Commission when sitting en banc and when acting through the First enter therein all original and appealed cases before it, numbered
Division, and shall perform such similar or equivalent functions and duties consecutively in the order in which they were received and, under
as are discharged by the Clerk of Court of the Court of Appeals. the heading of each case, the date and hour of each pleading filed,
of each order, decision or resolution entered, and of each other step
Section 3. Deputy Executive Clerks. - The Deputy Executive Clerks for the or action taken in the case; so that, by reference to any single page,
Second, Third, Fourth and Fifth Divisions shall assist the Commission when the history of the case may be known;
g) Promulgation and Promulgation Book. - He shall promulgate Commission, of any paper, record, decision, resolution, order or entry by
decisions and final resolutions on the same date the same is filed and in his office, proper to be certified, after payment of the standard fees to
with his office and indicate the date and time of promulgation and the Commission duly receipted for; Provided, that a pauper litigant, as
attest the same by his signature on the first page thereof.He shall defined by law, shall be exempted from paying any fee for certified copies
immediately furnish the Chairman with a copy of such decision, of any document, including transcripts of stenographic notes.
resolution, or order with a summary of the nature thereof and the
issue involved therein.He shall keep a promulgation book which Section 7. Power to Administer Oath. - The Chairman, Members of the
indicates the date and time of promulgation, the case number, title Commission, the Executive Clerk, the Deputy Executive Clerks, the
of the case, the ponente, the nature of the decision or final Executive Labor Arbiters, the Labor Arbiters, and other persons designated
resolution and the action taken by the Commission by quoting the or commissioned by the Chairman of the Commission, shall have the power
dispositive portion thereof.Notices of said decisions, resolutions or to administer oath on all matters or proceedings related to the performance
orders shall be sent in sealed envelopes to parties and their counsel of their duties.
within forty-eight (48) hours from promulgation; Section 8. Access to Commission Records. - All official records of the
h) Entry of Judgment. - He shall keep a book of entries of Commission shall be open to the public during regular office hours, except
judgment, decisions, resolutions and orders containing in those kept by it in the nature of confidential reports, records or
chronological order the entries of all final decisions, resolutions communications which cannot be divulged without violating private rights
and orders of the Commission; or prejudicing the public interest.Minutes of hearings or sessions may not
be divulged until after promulgation of the decision or resolution.
i) Disposition and Remand of Records. - Upon entry of judgment,
he shall immediately remand the records of the case to the RULE XIII
Regional Arbitration Branch of origin, Regional Director or his EFFECTIVITY
duly authorized officer, as the case may be.The Records Unit shall Section 1. Effectivity. - These Rules shall take effect fifteen (15) days after
immediately post said records without delay within two (2) publication in two (2) newspapers of general circulation.
working days;
j) Monthly Accomplishment Reports. - He shall submit a monthly
accomplishment report of the Commission or Division not later
than the 7th day of the following month;
k) Other Functions. - He shall perform other functions as directed
by the Chairman or the Commission en banc.
Section 5. Board Secretaries. - The Board Secretaries of the Commission
shall assist the Executive Clerk or Deputy Executive Clerks in the
performance of their duties and functions relative to the Commission or
their respective Divisions.
Section 6. ISsuance of Certified Copies. - Unless otherwise restricted by
Section 8 hereof, the Executive Clerk, Deputy Executive Clerks, and the
authorized officers of the Regional Arbitration Branches shall prepare, for
any person asking for the same, a certified copy, under the Seal of the
DISTINGUISH OMNIBUS RULES X
ARTICLE 128 (C) –Visitorial and Enforcement Power SECTION 6. Supporting documents. — The applicant shall also submit
the following documents to complete his registration:
The Secretary of Labor and Employment may likewise order stoppage of
work or suspension of operations of any unit or department of an (a) Professional license;
establishment when non-compliance with the law or implementing rules and
regulations poses grave and imminent danger to the health and safety of b) Diploma or certification of educational and other training;
workers in the workplace. Within twenty-four hours, a hearing shall be (c) Seaman Continuous Discharge Book;
conducted to determine whether an order for the stoppage of work or
suspension of operations shall be lifted or not. In case the violation is (d) Certificate of employment and/or service record; and
attributable to the fault of the employer, he shall pay the employees
concerned their salaries or wages during the period of such stoppage of (e) Other documents the Board may require
work or suspension of operation.
SECTION 11. Fees from employers. — The Board shall collect from
Article 286. When employment not deemed terminated. shipping companies fees to cover reasonable expenses of recruitment and
placement of seamen hired through the Board.
The bona-fide suspension of the operation of a business or undertaking for a
period not exceeding six (6) months, or the fulfillment by the employee of a SECTION 12. Board to issue rules and regulations. — The Board shall
military or civic duty shall not terminate employment. In all such cases, the issue rules and regulations governing its functions and responsibilities.
employer shall reinstate the employee to his former position without loss of
seniority rights if he indicates his desire to resume his work not later than TITLE XIV
one (1) month from the resumption of operations of his employer or from COMPROMISES AND ARBITRATIONS
his relief from the military or civic duty
ANTI-INJUNCTION
Art. 128 (d)
CHAPTER 1
It shall be unlawful for any person or entity to obstruct, impede, delay or Compromises
otherwise render ineffective the orders of the Secretary of Labor and
Employment or his duly authorized representatives issued pursuant to the
authority granted under this Article, and no inferior court or entity shall Article 2028. A compromise is a contract whereby the parties, by making
issue temporary or permanent injunction or restraining order or otherwise reciprocal concessions, avoid a litigation or put an end to one already
commenced. (1809a)
assume jurisdiction over any case involving the enforcement orders issued
in accordance with this Article.
Art. 128 (f)
The Secretary of Labor and Employment may, by appropriate regulations,
require employers to keep and maintain such employment records as may
be necessary in aid of his visitorial and enforcement powers under this
Code.
Section 6. Records of case. –The records of the case shall contain, among
RULE IV others, a complete narration of what transpired in the conference/hearing in
APPEALS the form of minutes including all original pleadings, notices, proof of
Section 1. Appeal. – The order of the Regional Director shall be final and service of the decision or order and other papers which shall all be
executory unless appealed to the Secretary of Labor and Employment consecutively numbered.Only records of cases on appeal, properly
within ten (10) calendar daysfrom receipt thereof. numbered with complete minutes, shall be accepted by the Office of the
Secretary of Labor and Employment.
Section 2. Grounds for appeal. – The aggrieved party may appeal to the
Secretary the Order of the Regional Directoron any of the following Section 7. Frivolous/dilatory appeals. – To discouragefrivolous or dilatory
grounds:chanroblesvirtuallawlibrary appeals, the Secretary of Labor and Employment may impose a reasonable
(a) there is a prima facie evidence of abuse of discretion on the part of the penalty, including fine or censure, upon the erring parties.
Regional Director;
(b) the Order was secured through fraud, coercion or graft and corruption; RULE V
(c) the appeal is made purely on questions of law; and EXECUTION
(d) serious errors in the findings of facts were committed which, if not Section 1. Issuance of writ. –
corrected, would cause grave irreparable damageor injury to the (a) If no appeal is perfected within the reglementary period as provided in
appellant. Rule V of these Rules, as evidenced by proofof service, the Regional
Director shall, motu proprio or upon proper motion by any interested
Section 3. Where to file. – The appeal shall be filed in five (5) legibly party, issue the writ of execution which shall be served by the Regional
typewritten copies with the Regional Office which issued the Order.Subject Sheriff.In the enforcement of the writ of execution, the assistance of the
to the immediately succeeding section, the appeal shall not be deemed law enforcement authorities may be sought;
perfected if it is filed with any other office or entity. (b) A writ of execution may be recalled subsequentto its issuance, if it is
shown that an appeal has been perfected in accordance with these
Section 4. Requisites of appeal. – Rules.
(a) The appeal shall be filed within the reglementary period as provide in
Section 1 of this Rule.It shall be under accompanied by a Memorandum Section 2. Execution before perfection of appeal or pending appeal. -
of Appeal which shall state the dateappellant received the Order and the During the period of appeal and before an appeal is perfected, or during the
grounds relied upon arguments in support thereof; pendency of an appeal, execution may, upon proper motion, also issue
(b) The appellee may file with the Regional Office his reply or opposition where it is shown that compliance with the order of the Regional Director
to the appeal within ten (10) calendar daysfrom receipt thereof.Failure cannot be secured unless this is done.The writ may be stayed at the instance
on the partof the appellee to file his reply or opposition within the said of a losing party by the filing of asupersedeas bond in an amount which is
period shall be construed as a waiver on his part to file the same. adequate to protect the interests of the prevailing party, subject to the
approval of the Regional Director before the perfection of the appeal, or
Section 5. Transmittal of records on appeal. – Within three (3) calendar Secretary of Labor and Employment during the pendency of the appeal.
days after the filing of the reply or opposition of the appellee or after the
expiration of the period to file the same, the entire records of the case, Section 3. Execution after motion for reconsideration. - Where a motion
together with the Memorandum of Appeal, shall be transmitted by the for Reconsideration of the compliance order is filed ion accordance with
Regional Office concerned to the Office of the Secretary of Labor and Rule II of these Rules, the compliance order shall be executory after ten
Employment. (10) calendar days from receipt of the resolution of such Motion.
Section 4. Enforcement of writ. - In enforcing a writ of execution, the
sheriff or other office acting as such shall be guidedby the provisions of
Rule 39 of the Rules of Court or the Sheriff’s Manual and may avail of such
other means as may be necessary in the execution thereof.

Section 5. Finality of decisions of the Secretary of Labor and


Employment. - The decisions, orders or resolutions of the Secretary of
Labor and Employment shall become final and executory after ten (10)
calendar days from receipt thereof.Within three (3) calendar days from
receipts of the records of the case, the Regional Director shall issue a writ of
execution to enforce the order or decision of the Secretary.
The filing of petition for certiorari beforethe Supreme Court shall not stay
the execution of the order or decision unless the aggrieved party secures a
temporary restraining order from the court within fifteen (15) calendar days
from the date of finality of the order or decision or posts a supersedeas bond
in an amount which is adequate to protect the interests of the prevailing
party subject to the approval of the Secretary.
Section 3. Authorized representatives of the Secretary of Labor and
Employment. – The Regional Directors shall be the duly authorized
RULES ON THE DISPOSITION OF LABOR STANDARDS CASES representatives of the Secretary of Laborand Employment in the
IN THE REGIONAL OFFICES. administration and enforcement of labor standards within their respective
territorial jurisdictions.
Section 4. Visitorial Power. – The Regional Director or their authorized
representatives, shall have access to employers’ records and premises at any
time of the day or night whenever work is being undertaken therein, and the
Pursuant to the provisions of Article 5 of the Presidential Decree No. 442, right to copy therefrom, to question any employee and investigate any fact,
otherwise known as the Labor Code of the Philippines, as amended, the condition or matter which may be necessary to determine violations or may
following rules are hereby promulgated to govern the enforcement of labor aid in the enforcement of the Labor Codeand of any labor law, wage order
standards provisions in the Regional Offices. or rules and regulations issued pursuant thereto.
Section 5. Construction. – In order to carry out the objectives of
the Constitution and the Labor Code and to aid the partiesin arriving at a
RULE I fair, just, expeditious and economical settlement of labor disputes, these
TITLE CONSTRUCTION AND DEFINITION Rules shall liberally construed.
Section 6. Suppletory application of Rules of Court. – In the absence of any
applicable provisions of the Rules of Court may be applied in a suppletory
Section 1. Title of the Rules. – These rules shall be known as the "Rules on
character.
the Disposition of Labor Standards Cases in the Regional Offices."
Section 7. Labor Standards; definitions. – As used in these Rules “labor
Section 2. Enforcement authority. – The statutory basis of the authority of
standards” shall refer to the Minimum requirements prescribed by existing
the Regional Offices to administer and enforce labor standards is found in
laws, rules and regulations and other issuances relating to wages, hours of
Article 128 (b) of the Labor Code, as amended, which provides
work, cost of living allowances and other monetary and welfarebenefits,
that:chanroblesvirtuallawlibrary
including those set by occupational safety and health standards.
“The provisions of Article 217 of this Code to the contrary notwithstanding
RULE II
and in cases where the relationship of employer-employee still exists, the
MONEY CLAIMS ARISING FROM COMPLAINT/ROUTINE
Secretary of Labor and Employment or his duly authorized representatives
INSPECTION
shall have the power to order and administer, after due notice and hearing,
compliance with the labor standards provisions of this Code and other labor Section 1. Title and caption. – The title and caption of complaints involving
legislations based on the findingsof labor regulations officers or industrial money claims brought to the Regional Office arising from alleged
safety engineers made in the course of inspection, and to issue writs of violations of labor standards shall substantially comply with the form
execution to the appropriate authority for the enforcement of their orders, prescribed by the Regional Office.
exceptin cases where the employer contests the findings of the labor
regulations officer and raises issues which cannot be resolved without Section 2. Complaint inspection. – All such complaints shall immediately
considering evidentiary matters that are not verifiable in the normalcourse be forwarded to the Regional Director who shall refer the case to the
of inspection”. appropriate unit in the Regional Office for assignment to a Labor Standards
and Welfare Officer(LSWO) for field inspection.When the field inspection
does not produce the desired results, the Regional Director shall summon Section 7. Restitution. –
the parties for summary investigation to expedite the disposition of the
case.The investigation shall be concluded within fifteen (15) calendar days (a) Where the employer has agreedto make thenecessary restitutions of
from the date of the first hearing and a proposed Order disposing of the case violations discovered in the course of inspection, such restitutions may
shall be submitted to the Regional Director within three (3) calendar days be effected at the plant-level within five (5) calendar days from receipt
from the conclusion of the investigation. of the inspection results by the employer or his authorized
representative;
Section 3. Complaints where no employer-employee relationship actually
exists. – Where employer-employee relationship no longer exists by reason (b) Plant-level restitutions may be effected for money claims not exceeding
of the fact that it has already been severed, claims for payment of monetary Fifty Thousand Pesos (P50,000.00).A report of the restitutions shall be
benefits fall within the exclusive and original jurisdiction of the labor immediately submitted to the Regional Director for verification and
arbiters.Accordingly, if on the face of the complaint, it can be ascertained confirmation.In case the Regional Director finds that the restitutions
that employer-employee relationship no longer exists, the case, whether or effected at the plant-level are not in order, he may direct the LSED
not accompanied by an allegations of illegal dismissal, shall immediately be Chief to check the correctness of the restitution report;
endorsed by the Regional Director to the appropriateBranch of the National (c) Restitutions in excess of the aforementioned amount shall be effected at
Labor Relations Commission (NLRC). the Regional Office or at the worksite subject to the prior approval of
Section 4. Service of notices and orders. – Notices and copies of orders the Regional Director.
shall be served onthe parties or their duly authorized representatives at their Section 8. Compromise Agreement. – Should the parties arrive at an
last known address or, if they are represented by counsel, through the latter. agreement as to the whole or part of the dispute, said agreement shall
In the case of personal service, the process server shall submit his return reduced in writing and signed by the parties in the presence of the Regional
within seventy-two (72) hours from the date of service stating legibly in the Director or his duly authorized representative.
return his name, the mode of service, the names of the authorized persons Section 9. Unclaimed amount. – The Regional Director shall hold in trust
served and the date of actual receipt of the document.If no service was under a special account in behalf of the workers.Any amount not claimed or
effected, the serving officer shall state in the return the reason therefor.The collected by the workers a period of two (2) years from the time of
return shall from part of the records of the case. restitution shall be held as s special fund of the Department of Labor and
Section 5. Inspection report. – Where the case is assigned to a LSWO for Employment to be used exclusively in the administration and enforcement
inspection, thelatter shall conductthe necessary investigation and submit a of labor laws provided in Article 129 of the Labor Code.
reportthereof to the Regional Director, through the Chief of the Labor Section 10. Follow-up inspection. – After the employer has submitted proof
Standards Enforcement Division (LSED), within twenty-four (24) hours of compliance with reported violations, follow-up verification inspection
after the investigation or within a reasonable period as may determined by shall forthwith be conducted if restitution is effected in the absence of the of
the Regional Director.The report shall specify the violations discovered, if the LSWO.
any, together with his recommendation and computation of the amount due
each worker. Section 11. Hearing. – Where no proof of compliance is submitted by the
employer after seven (7) calendar days from receipt of the inspection
Section 6. Coverage of complaint inspection. – A complaint inspection shall results, the Regional Director shall summon the employer and the
not be limited to the specific allegations or violations raised by the complainants to a summary investigation.In regular routine inspection cases
complainants/workers but shall be a thorough inquiry into and verification however, such investigation shall be conducted where no complete field
of the compliance by employer with existing labor standards and shall cover investigation shall be conducted where no completefield investigation can
all workers similarly situated.
be made for reasons attributableto the fault of the employer or his Section 16. Records of proceedings. – The proceedings before the Regional
representatives, such as those but not limited to instances when the field Office need not be recorded by stenographers.The hearing officer shall,
inspections are denied to instances when thefield inspectors are denied however, make a written summary of the proceedings including the
access to the premises, employment records, or workers, of the employer. substance of the positions of the parties and the evidence presented which
shall for part of the records of the case.The written summary shall be signed
Section 12. Nature of proceedings. –The proceedings before the Regional by the parties.
Office shall be summary and non-litigious in nature.Subject to the
requirements of due process, the technicalities of law and procedure and the Section 17. Motion to dismiss. – Any motion to dismiss a complaint on the
rules governing admissibility and sufficiency of evidence obtaining in the grounds that the Regional Office has no jurisdiction over the complaint or
courts of law shall not strictly apply thereto.The Regional Office may, thatthe cause of action is barred by prior judgment or prescription, shall be
however, avail itself of all reasonable means to ascertain the facts or the immediately acted upon by the Regional Director if the facts strongly
controversy speedily and objectively,including ocular inspection and indicate dismissal.Any motion to dismiss with no such indication shall
examination of well informed persons.Substantial evidence, whenever disposed of only in the final determination of the case on the merits.
necessary shall be sufficient to supporta decision or order.
Section 18. Compliance order. – If the Regional Director finds after hearing
Section 13. Prohibited acts. – It shall be unlawful for any person or entity to that violations have been committed, he shall issue an Order directing the
obstruct , impede, delay or otherwise render ineffectivethe Order of the employer to restitute other corrective measures within ten (10) calendar
Secretary of Labor and Employment or this duly authorized representatives days upon receipt of the Order and to submitproof of compliance.The Order
issuedpursuant to the authority granted under these Rules,and no inferior shall specify the amount due each worker and shall include the
court or entity shall issue temporary or permanent injunction or restraining computations on which the Order was based.
order or otherwise assume jurisdiction over any case involvingthe
enforcement orders issued in accordance with these Rules. Section 19. Motion for reconsideration. – The aggrieved party may file a
motion for reconsideration of the Order of the Regional Office within seven
The foregoing notwithstanding, the responsible party, be it the worker, (7) calendar days from receipt by him of a copy of said Order.
union, employer, or the authorized representative of any of the foregoing
shall be subject to administrative sanctions as determined by the Secretary The Regional Director shall resolve the motion for reconsideration within
or the Regional Director. ten (10) calendar days from receipt thereof. A motion for reconsideration
filed beyond the seven-day reglementary period shall be treated as an appeal
Section 14. Failure to appear. -Where the employer or the complainant fails if filed within the ten-day reglementary period shall be treated as an appeal
or refuses to appear during the investigation, despite proper notice, for two if filed within the ten-day reglementary period for appeal, but subject to the
(2) consecutive hearings without justifiable reasons, the hearing officer may requirements for the perfection of an appeal.
recommend to the Regional Director the issuance of a compliance order
based on the evidence at hand or an order of dismissal of the complaint, as No second motion for reconsideration shall be entertained in any case.
the case may be. Section 20. Disposition of routine inspection cases. –The disposition of
Section 15. Postponement of hearing. – The parties and their counsel or regular inspection cases shall substantially conform with the provisions of
representative s appearing before the Regional Office shall be prepared for this Rules.
continuous hearings.Postponements shall be allowed only upon meritorious RULE III
groundsand shall be limited to not more than two (2) postponements but in ENDORSEMENT OF CASES TO THE NATIONAL LABOR
no case to exceed a total of ten (10) calendar days.In the event of such RELATIONS COMMISSION (NLRC)
postponements, the Regional Office shall set two or more dates of hearing
in advance. Section 1. Contested cases. –
(a) In cases where the employercontests the findings of the Labor Section 4. Requisites of appeal. –
Standards and Welfare Officersand the issues cannotbe resolved
without considering evidentiary matters that are not verifiablein the (a) The appeal shall be filed within the reglementary period as provide in
normal course of inspection, the Regional Director shall endorsesuch Section 1 of this Rule.It shall be under accompanied by a Memorandum
case to the appropriate Arbitration Branch of the National Labor of Appeal which shall state the dateappellant received the Order and the
Relations Commission; grounds relied upon arguments in support thereof;

(b) The employer shall raise such objections during the hearing of the case (b) The appellee may file with the Regional Office his reply or opposition
or at any time after receipt of the noticeof inspection results.The issue to the appeal within ten (10) calendar daysfrom receipt thereof.Failure
of whether or not the case shall be endorsed to the NLRC shall be on the partof the appellee to file his reply or opposition within the said
resolved by the Regional Directorin the final disposition of the case. period shall be construed as a waiver on his part to file the same.

Section 2. Labor Standards and Welfare Officers (LSWOs). – As witnesses Section 5. Transmittal of records on appeal. – Within three (3) calendar
in the cases that have been endorsed to the NLRC, the LSWOs who days after the filing of the reply or opposition of the appellee or after the
participatedin the investigation shall make themselves available as expiration of the period to file the same, the entire records of the case,
witnesses in the proceedings before theLabor Arbiters concerned. together with the Memorandum of Appeal, shall be transmitted by the
Regional Office concerned to the Office of the Secretary of Labor and
RULE IV Employment.
APPEALS
Section 6. Records of case. –The records of the case shall contain, among
Section 1. Appeal. – The order of the Regional Director shall be final and others, a complete narration of what transpired in the conference/hearing in
executory unless appealed to the Secretary of Labor and Employment the form of minutes including all original pleadings, notices, proof of
within ten (10) calendar daysfrom receipt thereof. service of the decision or order and other papers which shall all be
consecutively numbered.Only records of cases on appeal, properly
Section 2. Grounds for appeal. – The aggrieved party may appeal to the numbered with complete minutes, shall be accepted by the Office of the
Secretary the Order of the Regional Directoron any of the following Secretary of Labor and Employment.
grounds:chanroblesvirtuallawlibrary
Section 7. Frivolous/dilatory appeals. – To discouragefrivolous or dilatory
(a) there is a prima facie evidence of abuse of discretion on the part of the appeals, the Secretary of Labor and Employment may impose a reasonable
Regional Director; penalty, including fine or censure, upon the erring parties.
(b) the Order was secured through fraud, coercion or graft and corruption; RULE V
(c) the appeal is made purely on questions of law; and EXECUTION

(d) serious errors in the findings of facts were committed which, if not Section 1. Issuance of writ. –
corrected, would cause grave irreparable damageor injury to the (a) If no appeal is perfected within the reglementary period as provided in
appellant. Rule V of these Rules, as evidenced by proofof service, the Regional
Section 3. Where to file. – The appeal shall be filed in five (5) legibly Director shall, motu proprio or upon proper motion by any interested
typewritten copies with the Regional Office which issued the Order.Subject party, issue the writ of execution which shall be served by the Regional
to the immediately succeeding section, the appeal shall not be deemed Sheriff.In the enforcement of the writ of execution, the assistance of the
perfected if it is filed with any other office or entity. law enforcement authorities may be sought;
(b) A writ of execution may be recalled subsequentto its issuance, if it is Section 1. Inspection report. -In occupational safety and health inspection,
shown that an appeal has been perfected in accordance with these the LSWOshall immediately or within twenty-four (24) hours after the
Rules. inspection/investigation submit his report to the Regional Director thru the
LSED Chief specifying the violations discovered and his recommendations,
Section 2. Execution before perfection of appeal or pending appeal. - except when the submission of a report within the period cannot be made
During the period of appeal and before an appeal is perfected, or during the for reasons beyond the control of the LSWO.
pendency of an appeal, execution may, upon proper motion, also issue
where it is shown that compliance with the order of the Regional Director Section 2. Correction in imminent danger cases. - Where the employer is
cannot be secured unless this is done.The writ may be stayed at the instance willing to make the necessary rectification, the same may be effected at the
of a losing party by the filing of asupersedeas bond in an amount which is plant-level within twenty-four (24) hours in cases where the conditions
adequate to protect the interests of the prevailing party, subject to the obtaining in the workplace pose grave and imminent dangerto the lives and
approval of the Regional Director before the perfection of the appeal, or health of the workers and/or property of the employer, e.g., boiler tube
Secretary of Labor and Employment during the pendency of the appeal. leakage; defective safety valves; pressure gauges and water column; weak
machinery foundations; and other analogous circumstances.
Section 3. Execution after motion for reconsideration. - Where a motion for
Reconsideration of the compliance order is filed ion accordance with Rule Section 3. Non-imminent danger cases. - Where the conditions is not of the
II of these Rules, the compliance order shall be executory after ten (10) types falling under Section 2 of this Rule, e.g., poor ventilation,
calendar days from receipt of the resolution of such Motion. housekeeping, inadequate personnel protective equipment and other
analogous circumstances. the LSWO shall determine reasonable periods of
Section 4. Enforcement of writ. - In enforcing a writ of execution, the compliance depending on the gravity of the hazards needing corrections or
sheriff or other office acting as such shall be guidedby the provisions of the period neededto come into compliance safety and health standards.
Rule 39 of the Rules of Court or the Sheriff’s Manual and may avail of such
other means as may be necessary in the execution thereof. Section 4. Work Stoppage. -
Section 5. Finality of decisions of the Secretary of Labor and Employment. - (a) The LSWO shall include in his report recommendation for the issuance
The decisions, orders or resolutions of the Secretary of Labor and of an Order of stoppage of work or suspension of operation of any unit or
Employment shall become final and executory after ten (10) calendar days department or the establishment if there is exist in the workplace a
from receipt thereof.Within three (3) calendar days from receipts of the condition that poses grave and imminent danger to the health and safety of
records of the case, the Regional Director shall issue a writ of execution to the workers which cannot be corrected.Even before he submits his
enforce the order or decision of the Secretary. recommendation to the Regional Director, the LSWO shall notify and
confer with the employer regarding the results of the inspection and
The filing of petition for certiorari beforethe Supreme Court shall not stay recommend the institution of remedial measures;
the execution of the order or decision unless the aggrieved party secures a
temporary restraining order from the court within fifteen (15) calendar days (b) The Regional Director may, upon the recommendation of the LSWO
from the date of finality of the order or decision or posts a supersedeas bond and the LSED Chief, immediately issue the appropriate Order of stoppage
in an amount which is adequate to protect the interests of the prevailing or suspension of operation together with the notice of hearing.
party subject to the approval of the Secretary.
Section 5. Hearing. -Immediately or within twenty-four (24) hoursfrom the
RULE VI issuance of the Order of stoppage of operation or suspension, a hearing shall
HEALTH AND SAFETY CASES be conducted with the assistance of the LSWOconcerned to determine
whether the Order for the stoppage of work or suspension shall be lifted or
not.The proceedings shall be terminated within seventy-two (72) hoursand
copy of such Order or resolution shall be immediately furnished the 16 September 1987.
Secretary of Labor and Employment.In case the violation is attributable to
the fault of the employer, the latter shall pay his workers all the monetary (Sgd.) FRANKLIN M. DRILON
benefits to which they are entitled during the period of such stoppage or Secretary
suspension of work.
Section 6. Review by the Secretary. -
(a) The Secretary at his own initiative or upon therequest of the employer
and/or employee, may review the order of the Regional Director which shall
be immediately final and executory unless stayed by the Secretary upon
posting by the employer of a reasonable cash or performance bond as fixed
by the Regional Director;
(b) In aid of his review power, the Secretary may direct the Bureau of
Working Conditions to evaluate the findings or order of the Regional
Director.The Order of the Secretary shall be final and executory.
Section 7. Other measures to secure compliance. - The Regional Director,
in addition to measures available to him to secure compliance with labor
standards, particularly those involving technical safety and general
occupational safety standards, may furnish a copy of the inspection findings
to the insurance company of the employer, the power company, the
municipal authorities which issue business licenses/permits, the labor union
in the enterprise concerned, and to other government offices to further
persuade voluntarily compliance with existing labor standards.
RULES VII
GENERAL PROVISIONS
Section 1. Final compliance order. - Where a compliance order issued by a
Regional Director on a case has become final, no entity or official of the
Department shall entertain or re-open such case for the purposeof re-
litigating the same case.
Section 2. Repeal of prior inconsistent issuances. - The provisions of
existing rules, regulations, policy instructions, and other issuances which
are inconsistent with these Rules are hereby repealed or amended
accordingly.
Section 3. Effectivity. - These Rules shall take effect fifteen (15) days after
announcement of their adoption in newspapers of general circulation.

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