LABOR RELATIONS
Poquiz Book Notes
ART. 217 – Declaration of Policy
1. Non-interference of non-parties in collective bargaining
No Court or administrative agency or official shall have the power to
set or fix wages, rates of pay, hours of work or other terms and
conditions of employment, except as otherwise provided under the
Labor Code.
EXCEPT:
a. National Wages and Productivity Commission (NWCP) and
Regional Tripartite Wages and Productivity Board (RTWP) –
Wage Fixing (Arts. 99 and 122).
b. National Conciliation and Mediation Board (NCMB) and the
National Labor Relations Commission (NLRC) – Wage
Distortions (Art. 124).
c. Secretary of Labor and Employment and President of the
Philippines – certification and assumption powers over labor
disputes (Art. 269[g]).
ART. 218 – Definitions
Employer – is one who hires services of another and pays him
compensation. (Ordinary Meaning)
Employer – it includes any person acting in the interest of an employer
directly or indirectly. (Labor Code)
Employee – refers to any person in the employ of an employer. It shall
not be limited to the employees of a particular employer. It includes any
individual whose work has ceased as a result of or in connection with any
current labor dispute or because of any unfair labor practice if he has not
obtained any other substantially equivalent and regular employment.
a. Direct Employee – directly hired by management
b. Indirect Employee – hired through an agency
Types of Employees:
1. Managerial – is one who is vested with powers or prerogatives to lay
down and execute management policies and/or to hire, transfer,
suspend, lay-off, recall, discharge, assign or discipline employees.
2. Supervisory – are those who in the interest of the employer effectively
recommend such managerial actions if the exercise of such authority is
not merely routinary or clerical in nature but requires the use of
independent judgment.
3. Rank-and-File – all employees not falling within any of the above
definitions are considered as such.
ART. 219 – National Labor Relations Commission
1. Philosophy of its creation
Speedy labor justice was the guiding ideology that led to the
creation of the NLRC.
2. Administrative autonomy of NLRC
The NLRC has become autonomous for it is attached to the DOLE for
program and policy coordination only.
3. Trisectoral composition
The Chairman and twenty-three (23) Commissioner shall be chosen
from the workers, employers and public sectors.
4. NLRC sitting en banc or in divisions
The NLRC may sit en banc or in eight (8) divisions, each and
composed of three (3) members. The Commission sits en banc only
for purposes of promulgating rules and regulations governing the
 hearing and disposition of cases before any of its divisions and
regional branches and formulating policies affecting its administration
and operations.
5. Adjuticatory function of NLRC exercised through its divisions
The Divisions of the NLRC have exclusive appellate jurisdiction over
cases within their respective territorial jurisdiction.
6. Conclusions of a division
The conclusions of a division on any case submitted to it for decision
shall be reached in consultation before the case is assigned to a
member for the writing of the opinion.
A certification to this effect signed by the Presiding Commissioner of
the division shall be issued, and a copy thereof attached to the record
of the case and served upon the parties.
A dissenting opinion, if well reasoned out and based on convincing
and cogent considerations may even be the basis of a new ruling
7. Pronouncement of a judgment
The concurrence of two (2) Commissioners of a division shall be
necessary for the pronouncement of a judgment or resolution.
ART. 220 – Headquarters, Branches and Provincial Extension
Units
1. Headquarters of NLRC
a. Metropolitan Manila – 1st to 6th Divisions
b. Cebu City – 7th Division
c. Cagayan de Oro City – 8th Division
2. Regional branches of NLRC
The NLRC shall establish as many regional arbitration branches as
there are regional offices of the DOLE, sub-regional branches or
provincial units. Each regional arbitration branch is headed by an
Executive Labor Arbiter.
ART. 221 – Appointment and Qualifications
1. Qualifications of Commissioners
The qualifications of the Chairman and the Commissioners are the
following:
a. Member of the Philippine Bar
b. Must have been engaged in the practice of law in the
Philippines for at least fifteen (15) years
c. Must have experience or exposure in handling labor
management relations for at least five (5) years
d. Preferably a resident of the region where he is to hold
office
2. Qualifications of Labor Arbiters
a. Must be members of the Philippine Bar
b. Must have been engaged in the practice of law in the
Philippines for at least 10 years
c. Must have experience or exposure in handling labor
management relations for at least five (5) years
3. Term of office
The NLRC Commissioners and Labor Arbiters shall hold office during
good behavior until they reach the age of sixty-five (65) years, unless
sooner removed for cause or become incapacitated to discharge the
duties of their office.
4. Confirmation of appointment not needed
Art. 221 of the Labor Code requiring the Commission on
Appointments to confirm the appointments of NLRC Chairman and
Commissioners has been declared unconstitutional for the 1987
Constitution does not expressly provide for the confirmation of heads
of bureaus or commissioners.
ART. 222 – Salaries, Benefits and Other Emoluments
 1. Salaries, benefits and other emoluments
The Chairman and members of the NLRC shall have the same rank,
receive an annual salary equivalent to, and be entitled to the same
allowances, retirement and benefits as those of the Presiding Justice
and Associate Justices of the Court of Appeals, respectively.
The Labor Arbiters shall have the same rank, receive an annual salary
equivalent to and be entitled to the same allowances, retirement and
other benefits and privileges as those of the Judges of the Regional
Trial Courts.
ART. 223 – Jurisdiction of Labor Arbiters and the Commission
1. Jurisdiction of Labor Arbiters; Employer-employee relationship, a
requirement for exercise of jurisdiction
Article 223(a) confers upon Labor Arbiters the power to exercise
original and exclusive jurisdiction over cases enumerated therein.
However, it must be pointed out that there are certain cases under the
article such as unfair labor practices, bargaining deadlocks, and
termination disputes, that may be resolved through grievance
machinery or voluntary arbitration procedures by agreement of the
parties.
The Secretary of DOLE has concurrent jurisdiction over those
cognizable by the Labor Artbiter under Art. 263(g) of the Labor Code
which is an exercise of the assumption or the pre-emptive power.
The LA has jurisdiction over controversies involving employers and
employees only if there is a reasonable causal connection between the
claim asserted and the EE relations.
Despite the absence of EE relationship between the seafarer and the
manning agency, the NLRC has jurisdiction because the jurisdiction of
the LA is not limited to claims arising from EE relationship (Santiago
vs CF Sharp Crew Mgt., Inc.)
2. Unfair labor practice cases
Unfair labor practice – is an act of an employer or the union or their
agents, which violates the constitutional right of workers to self-
organization.
Under Art. 253 the civil aspects of all cases involving unfair labor
practices, which may include claims for damages and other affirmative
relief, shall be under the jurisdiction of the LA. (Civil Aspect first
before a criminal case of ULP be instituted)
The President or the Secretary of DOLE may exercise jurisdiction over
an unfair labor practice which may cause a strike or lockout in a vital
industry (Art. 269[g]).
The parties can enter into an agreement to submit an unfair labor
practice dispute for resolution by the voluntary arbitrator under Art.
268 of the LC.
3. Termination Disputes
Termination – is a term used to denote dismissal or lay-off
Dismissal – is a discharge of an employee, a termination of an
employee at the instance of the employer.
Discharge – takes place when the employer has the resolute
intention to dispense with the services of the employee.
Lay-off – is a termination initiated by the employer without
prejudice to recall or rehiring of a worker who has been temporarily
separated from the service.
An employee who is terminated from his services without just or
authorized causes is deemed illegally dismissed.
Termination or illegal dismissal cases are under the exclusive and
original jurisdiction of the LA.
Termination of a corporate office which is an intra-corporate matter,
is cognizable by the RTC.
Termination cases arising from interpretation and implementation of
the CBA belong to voluntary arbitrators.
4. Gross violations of the CBA
Gross violations of the CBA refer to flagrant and/or malicious refusal
to comply with the economic provisions of such agreement, which act
is considered as an ULP cognizable by the LA. Ordinarily, CBA
violations are mere grievances subject to grievance machinery and
voluntary arbitration procedures.
5. Money claim with a claim for reinstatement
The LA has original and exclusive jurisdiction over those cases that
workers may file involving terms and conditions of employment, if
accompanied with a claim of reinstatement. (illegal dismissal case if
w/ reinstatement)
A complaint for recovery of monetary and other benefits as a result of
an illegal dismissal case is beyond the jurisdiction of the RD of the
DOLE. The LA has jurisdiction. (Oreshoot Mining Co. vs Arellano)
6. Money claim exceeding P5,000
A money claim arising from EE relationship EXCEPT employees’
compensation, social security, philhealth and maternity benefits, is
cognizable by the LA if the claim, regardless of the amount, is
accompanied with a claim for reinstatement. Thus, where the amount
claimed by each employee exceeds the P5,000 jurisdictional limit of
the RD, the latter is without jurisdiction to order the payment of the
employees’ claims for salary differentials and 13 th month pay
(ALECO vs Martinez)
7. Jurisdiction over money claims by the Regional Director; exercise
of visitorial and enforcement power
The RD can try money claims only if the following requisites concur:
(Art. 129)
a. The claim is presented by an employee or person employed in
domestic or household service, or househelper under the law;
b. The claimant, no longer being employed, does not seek
reinstatement;
c. The aggregate money claim of the employee or househelper
does not exceed P5,000
Even if the amount of the claim exceeds P5,000, it does not remove
from the RD to take cognizance of the claim as he may still exercise
the enforcement power under Art. 128(b) of the LC
8. Claims for damages
PD 1619 restored the jurisdiction of the NLRC and the LA over all
money claims of workers and all other claims arising from EE
relationship including moral and exemplary damages.
9. Violation of Article 270
Cases arising from the violation of such prohibited activities (strikes,
picketing and lockouts) are cognizable by the LA.
10. Claims arising from employer-employee relationship
The claim is cognizable by the LA if there is a reasonable causal
connection with EE relationship.
11. Cases involving migrant workers (OFW)
The LA shall have original and exclusive jurisdiction to hear and
decide, within 90 calendar days after the filing of the complaint
including claims arising out of an EE relationship or by virtue of any
law or contract involving OFW for overseas deployment including
claims for actual, moral, exemplary and other forms of damages
12. Cases involving GOCCs without original charters
Employees of GOCC without original charters, otherwise known as
subsidiaries or corporate offsprings, are governed by the LC.
13. Jurisdiction over collateral matters
 Where the LA has jurisdiction over the main case, it likewise has full exclusive jurisdiction over cases submitted to them by the
jurisdiction to consider and decide all matters collateral thereto parties for arbitration.
14. Jurisdiction over labor disputes involving church men
While the matter at hand relates to the church and its religious ART. 224 – Powers of the Commission – The Commission shall
minister, it does not ipso facto give the case a religious significance. have the power and authority:
Church as an employer and the minister as an employee. The matter of 1. Powers of the NLRC
terminating an employee, which is purely secular in nature, is different a. Rule-making power
from the ecclesiastical act of expelling a member from the religious b. Power to issue compulsory processes
congregation. c. Power to conduct investigation and hear disputes or controversy
15. Filing of a third-party claim with NLRC Sheriff re writ of within its jurisdiction
execution d. Power to hold any person in contempt
A party, by filing a third-party claim with the Deputy Sheriff executing e. Power to issue injunctions and restraining orders
a writ of execution in a labor case, submits itself to the jurisdiction of 2. Rule-making power (Power of subordinate legislation or quasi-
the NLRC acting through the LA. legislative power)
16. Jurisdiction on issue of deduction for tax purposes The NLRC has the power to promulgate rules and regulations:
The issue of deduction for tax purposes is a money claim arising from a. Governing the hearing and disposition of cases before it and its
the EE relationship which clearly falls within the jurisdiction of the LA regional branches
and the NLRC. (Santos vs Servier Phils., Inc.) b. Pertaining to its internal functions
17. Cases not cognizable by the LA c. As may be necessary to carry out the purposes of the LC
*in the book of Poquiz p.27 3. Power to issue compulsory processes (Investigatory or inquisitorial
18. Original and exclusive jurisdiction of Labor Arbiters power)
EXCEPTIONS The NLRC has the power to:
a. When the SOLE exercises his assumption (pre-emptive) a. Administer oaths
power under Art.269(g) of the LC over national interest b. Summon parties
cases c. Issue subpoenas ad testificandum and duces tecum
b. When the SOLE exercises its compulsive arbitration power 4. Power to conduct investigation and hear disputes or controversy
over national interest cases certified by the SOLE under within its jurisdiction
Art.269(g) of the LC The NLRC has the power to:
c. When the parties mutually agree to submit their case to a a. Conduct investigations for the determination of a question, matter
voluntary arbitrator or panel of voluntary arbitrators, who or controversy within its jurisdiction
under Arts. 267 and 268 of the LC, also exercise original and
 b. Proceed to hear and determine the disputes in the manner laid in
Art. 218(c)
5. Power to hold a person in contempt
The NLRC has the power to hold any person in contempt directly or
indirectly and impose appropriate penalties for acts that tend to
obstruct or hinder the exercise of its powers and functions.
6. Power to issue injunction; requisites for a valid injunctive writ
The NLRC has the power to issue an injunction in ordinary labor
disputes, that is, those not involving strikes or lockouts. Labor arbiters
may also exercise injunctive power as an ancillary relief to cases not
involving strike or lockout pending before them
The sole objective of the writ of preliminary injunction is to preserve
the status quo until the merits of the case are fully heard
Status quo – is the last actual peaceful uncontested situation that
precedes a controversy, and its preservation is the office of the
injunctive writ
Requirements to be complied for the issuance of a valid injunction:
a. Prohibited or unlawful acts have been threatened and will be
committed unless restrained
b. Substantial and irreparable injury to complainant’s property will
follow
c. Greater injury will be inflicted upon the complainant by a denial of
the relief than will be inflicted upon the defendant by granting the
relief
d. Complainant has no adequate remedy at law
e. The public officers charged with the duty to protect complainant’s
property are unwilling to furnish adequate protection
f. Due process of law must be observed
7. Requirement of hearing jurisdictional; Injunction issued de parte
In order that injunction may be properly issued, the law requires that
there should be a hearing at which parties should be given an
opportunity to present witnesses in support of the complaint and of the
opposition, if any, with opportunity for cross-examination, and that the
other conditions required as prerequisites for the granting of relief
must be established and stated in the Order.
There cannot be any ex-parte grant of an injunction in cases involving
a labor dispute.
8. Power to issue temporary restraining order (TRO); TRO issued ex
parte
A restraining order is not an injunction at all but a writ to compel
parties to maintain the matters in controversy in status quo until the
question of whether or not a temporary or preliminary injunction ought
to be issued may be determined.
It is a status quo order. A TRO may be issued ex parte because it is a
mere interlocutory order before the issuance of a writ of injunction.
The contention that the restraining order is illegal because petitioner
had no notice of the hearing is untenable.
9. Issuance of TRO in cases under Articles 224 and 269 of the Labor
Code; 20-day period non-extendible
The Commission shall have the power to issue temporary restraining
orders in such cases but only after due notice and hearing and in
accordance with its rules.
Any ex parte restraining order issued by the Commission, or its
Chairman or Vice-Chairman where the Commission is not in session
and as prescribed by its rules, shall be valid for a period not exceeding
20 days.
10. Existence of a labor dispute jurisdictional
In the absence of a labor dispute, the regular courts, and not the
National Labor Relations Commission, has the jurisdiction to issue an
injunction
11. Secretary’s assumption or certification order exempted from legal
requirements for the issuance of an injunction
 When in his opinion, there exists a labor dispute causing or likely to
cause a strike or lockout in an industry indispensable to the national
interest, the SOLE may assume jurisdiction over the dispute and
decide it or certify the same to the Commission for compulsory
arbitration. Such assumption or certification has the effect of
automatically enjoining the intended or impending strike or lockout.
Under assumption (preemptive) power, he is granted “great breadth of
discretion” in order to find a solution to a labor dispute.
12. An exercise of management prerogative cannot be enjoined
Injunctive relief is no adequate remedy to restrain an employer from
investigating an erring employee for it is a management prerogative.
13. Jurisdiction of NLRC
The NLRC is vested with original jurisdiction in the ff cases:
a) Cases certified for compulsory arbitration by the President or the
SOLE in line with Arts. 269 and 270 of the LC
b) Cases on injunction pursuant to Arts. 224 and 270 of the LC
c) Contempt cases pursuant to Art. 224 of the LC
The NLRC has appellate jurisdiction in the ff cases:
a) Cases decided by the Regional Offices of the DOLE in the exercise
of its adjudicatory function pursuant to Art. 129 of the LC
b) Cases decided by the LA pursuant to Art. 223(b) of the LC and
Sec. 10 of RA 8042 (Migrant Workers and Overseas Filipino Act)
c) Cases decided by the LA pursuant to Art. 124 of the LC on wage
distortion problem in non-unionized establishment and cases certified
by the RD under Art. 128(b)
d) Denial of the claim of the third party where property was levied by
the Sheriff of the LA can be appealed to the NLRC
Under Art. 223(b) the NLRC has exclusive appellate jurisdiction over
all cases decided by the LA.
ART. 225 – Ocular Inspection
1. Power to conduct ocular inspection
Refer to Art. 225
2. Ocular inspection does not constitute full hearing but an auxiliary
remedy
Ocular inspection is a mode in which a judicial or quasi-judicial body
uses in order to clear a doubt to find the truth. It is an auxiliary
remedy the law affords to the parties and the labor tribunal to reach an
enlightened determination of the case.
ART. 226 – Repealed by Sec. 16, BP 130
ART. 227 – Technical Rules Not Binding and Prior Resort to
Amicable Settlement
1. Purpose of the law; Doctrine of speedy labor justice; Amicable
settlement
The NLRC free from the technical rules of procedure and evidence,
tasked to administer speedy labor justice. Thus, conciliation of labor
disputes before barangay courts is not allowed for it would defeat the
salutary purpose of the law which is aimed at expeditious settlement.
2. Technical rules of procedure and evidence, relaxed in labor cases
Rules of procedure and evidence in courts of law or equity shall not
control labor proceedings. It is well-settled that the application of
technical rules of procedure and evidence may be relaxed in labor
cases to serve the demands of substantial justice
3. Position paper proceeding allowed
Labor cases can be decided on the basis of position papers and other
documents submitted by the contending parties without resorting to the
technical rules of evidence observed in the court of justice.
A trial is discretionary on the labor arbiter.
 It is within the bounds of the LA’s authority to decide a case based on
mere position papers and supporting documents without a formal trial
or hearing.
4. Lack of verification not fatal; failure to submit position paper
The lack of verification of the position paper-affidavit is a formal,
rather than a substantial defect. It is not fatal to the case.
It could be easily corrected by requiring an oath.
The failure to submit position paper on time is not one of the grounds
for the dismissal of a complaint in labor cases.
5. Principle of res judicata may not be invoked in labor relations
proceedings
The principle of res judicata may not be invoked in labor relations
proceedings.
Res judicata applies only to judicial or quasi-judicial proceedings and
not to the exercise of administrative powers.
6. Due process should be observed despite disregard of technical
rules
Although the rules of evidence prevailing in the courts of law or equity
shall not be controlling, the NLRC and LAs shall use every and all
reasonable means to ascertain the facts in each case speedily and
objectively without regard to technicalities of law or procedure. But
the fundamental and essential requirements of due process should be
still be observed.
7. Failure to pray for such reliefs in the complaint not fatal to
employee’s claim
Failure by the employee to specifically pray for the relief of
reinstatement in a complaint is a procedural lapse which cannot put to
naught a right which he is entitled under a substantive law.
8. Rules of procedure are mere tools to attain justice
Rules of procedure are mere tools designed to facilitate the attainment
of justice, and their strict and rigid application which would result in
technicalities that tend to frustrate rather than promote substantial
justice must always be avoided.
ART. 228 – Appearances and Fees
1. Appearance of non-lawyers
Non-lawyers can appear in the following instances:
a) If they represent themselves
b) If they represent their organization or members
thereof
c) If he is a duly-accredited member of the legal aid
office duly recognized by the DOJ or IBP in cases
referred thereto by the latter
2. Appearance of unions as counsel
The appearance of labor federations and local unions as counsel in
labor proceedings has been given legal sanction under Art.228 of the
LC which allows non-lawyers to represent their organization or
members thereof.
3. Attorney’s fees for negotiating a CBA
The law prohibits the payment of attorney’s fees only when it is
effected through forced contributions from the workers from their own
funds as distinguished from the union funds.
The lawyer is entitled to the payment of his fees to be charged against
union funds. It is settled that the 10% attorney’s fees shall be paid to
him on the total benefits secured after the CBA negotiations.
4. All benefited employees pay attorney’s fees
The lawyers who represent members of the union to secure benefits for
all the employees should be paid corresponding fees by all those
favored or benefited by the award secured by them.
5. Collection of special assessment prohibited
 The collection of the special assessment, for the payment of services
rendered by union officers, consultants and others, is a form of an
exaction which falls in the category of a “similar charge” and
therefore prohibited under the law.
It must be noted that under Art. 247 Union’s special assessment for
incidental expenses, attorney’s fees and representation expenses is
valid upon concurrence of three (3) conditions:
a) Authorization by a written resolution of the majority of all
the members at the general membership meeting which was
called for the purpose
b) Minutes of the meeting duly recorded by the secretary
c) Written authorization for check-off duly signed by each
employee
6. Union officers not entitled to attorney’s fees
The union president, a non-lawyer, is not entitled to attorney’s fees due
a lawyer who negotiated for CBA benefits.
An unfair labor practice is committed in the event a union officer
accepts attorney’s fees for negotiating CBA benefits.
7. Award of attorney’s fees must have some basis
The text itself must state the reasons why attorney’s fees are being
awarded. Thus, if the decision of the NLRC states no basis for the
award of attorney’s fees, such award should be deleted.
Likewise, where the award of moral and exemplary damages is
eliminated, so must the award for attorney’s fees be deleted.