LABOR LAW II
hours of work or other terms and conditions of employment, except as otherwise provided
BASIC CONCEPTS
• PHILIPPINE CONSTITUTION, ART. III §8; ART. XIII §3
SECTION 8. The right of the people, including those employed in the public and private sectors,
to form unions, associations, or societies for purposes not contrary to law shall not be abridged.
SECTION 3. The State shall afford full protection to labor, local and overseas, organized and
unorganized, and promote full employment and equality of employment opportunities for all.
It shall guarantee the rights of all workers to self-organization, collective bargaining and
negotiations, and peaceful concerted activities, including the right to strike in accordance with
law. They shall be entitled to security of tenure, humane conditions of work, and a living wage.
They shall also participate in policy and decision-making processes affecting their rights and
benefits as may be provided by law.
The State shall promote the principle of shared responsibility between workers and employers
and the preferential use of voluntary modes in settling disputes, including conciliation, and shall
enforce their mutual compliance therewith to foster industrial peace.
The State shall regulate the relations between workers and employers, recognizing the right of
labor to its just share in the fruits of production and the right of enterprises to reasonable returns
on investments, and to expansion and growth.
• LABOR CODE ARTS. 218, 219, 290
ARTICLE 218. [211] Declaration of Policy.— A. It is the policy of the State:
(a) To promote and emphasize the primacy of free collective bargaining and negotiations,
including voluntary arbitration, mediation and conciliation, as modes of settling labor or
industrial disputes;
(b) To promote free trade unionism as an instrument for the enhancement of democracy and
the promotion of social justice and development;
(c) To foster the free and voluntary organization of a strong and united labor movement;
(d) To promote the enlightenment of workers concerning their rights and obligations as union
members and as employees;
(e) To provide an adequate administrative machinery for the expeditious settlement of labor
or industrial disputes;
(f) To ensure a stable but dynamic and just industrial peace; and
(g) To ensure the participation of workers in decision and policy-making processes affecting
their rights, duties and welfare.
B. To encourage a truly democratic method of regulating the relations between the employers
and employees by means of agreements freely entered into through collective bargaining, no
court or administrative agency or official shall have the power to set or fix wages, rates of pay,
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under this Code.
ARTICLE 219. [212] Definitions.— (a) "Commission" means the National Labor Relations
Commission or any of its divisions, as the case may be, as provided under this Code.
(b) "Bureau" means the Bureau of Labor Relations and/or the Labor Relations Divisions in the
regional offices established under Presidential Decree No. 1, in the Department of Labor.
(c) "Board" means the National Conciliation and Mediation Board established under Executive
Order No. 126.
(d) "Council" means the Tripartite Voluntary Arbitration Advisory Council established under
Executive Order No. 126, as amended.
(e) "Employer" includes any person acting in the interest of an employer, directly or indirectly.
The term shall not include any labor organization or any of its officers or agents except when
acting as employer.
(f) "Employee" includes any person in the employ of an employer. The term shall not be limited
to the employees of a particular employer, unless the Code so explicitly states. It shall include
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.
(g) "Labor organization" means any union or association of employees which exists in whole
or in part for the purpose of collective bargaining or of dealing with employers concerning terms
and conditions of employment.
(h) "Legitimate labor organization" means any labor organization duly registered with the
Department of Labor and Employment, and includes any branch or local thereof.
(i) "Company union" means any labor organization whose formation, function or administration
has been assisted by any act defined as unfair labor practice by this Code.
(j) "Bargaining representative" means a legitimate labor organization or any officer or agent of
such organization whether or not employed by the employer.
(k) "Unfair labor practice" means any unfair labor practice as expressly defined by this Code.
(l) "Labor dispute" includes any controversy or matter concerning terms and conditions of
employment or the association or representation of persons in negotiating, fixing, maintaining,
changing or arranging the terms and conditions of employment, regardless of whether the
disputants stand in the proximate relation of employer and employee.
(m) "Managerial employee" is one who is vested with the powers or prerogatives to lay down
and execute management policies and/or to hire, transfer, suspend, lay-off, recall, discharge,
assign or discipline employees. Supervisory employees 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. All
employees not falling within any of the above definitions are considered rank-and-file
employees for purposes of this Book.
(n) "Voluntary Arbitrator" means any person accredited by the Board as such, or any person
named or designated in the Collective Bargaining Agreement by the parties to act as their
Voluntary Arbitrator, or one chosen with or without the assistance of the National Conciliation
and Mediation Board, pursuant to a selection procedure agreed upon in the Collective
Bargaining Agreement, or any official that may be authorized by the Secretary of Labor and
Employment to act as Voluntary Arbitrator upon the written request and agreement of the
parties to a labor dispute.
(o) "Strike" means any temporary stoppage of work by the concerted action of employees as
a result of an industrial or labor dispute.
(p) "Lockout" means any temporary refusal of an employer to furnish work as a result of an
industrial or labor dispute. CScaDH
(q) "Internal union dispute" includes all disputes or grievances arising from any violation of or
disagreement over any provision of the constitution and by laws of a union, including any
violation of the rights and conditions of union membership provided for in this Code.
(r) "Strike-breaker" means any person who obstructs, impedes, or interferes with by force,
violence, coercion, threats, or intimidation any peaceful picketing affecting wages, hours or
conditions of work or in the exercise of the right of self-organization or collective bargaining.
(s) "Strike area" means the establishment, warehouses, depots, plants or offices, including the
sites or premises used as runaway shops, of the employer struck against, as well as the
immediate vicinity actually used by picketing strikers in moving to and fro before all points of
entrance to and exit from said establishment.
ARTICLE 290. [275] Tripartism, Tripartite Conferences, and Tripartite Industrial Peace
Councils. 225 — (a) Tripartism in labor relations is hereby declared a State policy. Towards
RIGHT TO SELF-ORGANIZATION
this end, workers and employers shall, as far as practicable, be represented in decision and
policy-making bodies of the government.
• LABOR CODE ARTS. 253, 257, 292 (C), 219 (E, F)
(b) The Secretary of Labor and Employment or his duly authorized representatives may from
time to time call a national, regional, or industrial tripartite conference of representatives of
government, workers and employers, and other interest groups as the case may be, for the
consideration and adoption of voluntary codes of principles designed to promote industrial
peace based on social justice or to align labor movement relations with established priorities
in economic and social development. In calling such conference, the Secretary of Labor and
Employment may consult with accredited representatives of workers and employers.
(c) A National Tripartite Industrial Peace Council (NTIPC) shall be established, headed by the
Secretary of Labor and Employment, with twenty (20) representatives each from the labor and
employers' sectors to be designated by the President at regular intervals. For this purpose, a
sectoral nomination, selection, and recall process shall be established by the DOLE in
consultation with the sectors observing the 'most representative' organization criteria of ILO
Convention No. 144.
Tripartite Industrial Peace Councils (TIPCs) at the regional or industry level shall also be
established with representatives from government, workers and employers to serve as a
continuing forum for tripartite advisement and consultation in aid of streamlining the role of
government, empowering workers' and employers' organizations, enhancing their respective
rights, attaining industrial peace, and improving productivity.
The TIPCs shall have the following functions:
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(1) Monitor the full implementation and compliance of concerned sectors with the provisions of
all tripartite instruments, including international conventions and declarations, codes of
conduct, and social accords;
(2) Participate in national, regional or industry-specific tripartite conferences which the
President or the Secretary of Labor and Employment may call from time to time;
(3) Review existing labor, economic and social policies and evaluate local and international
developments affecting them;
(4) Formulate, for submission to the President or to Congress, tripartite views,
recommendations and proposals on labor, economic, and social concerns, including the
presentation of tripartite positions on relevant bills pending in Congress;
(5) Advise the Secretary of Labor and Employment in the formulation or implementation of
policies and legislation affecting labor and employment;
(6) Serve as a communication channel and a mechanism for undertaking joint programs among
government, workers, employers and their organizations toward enhancing labor-management
relations; and
(7) Adopt its own program of activities and rules, consistent with development objectives.
All TIPCs shall be an integral part of the organizational structure of the NTIPC. The operations
of all TIPCs shall be funded from the regular budget of the DOLE.
ARTICLE 253. [243] Coverage and Employees' Right to Self-Organization. — All persons
employed in commercial, industrial and agricultural enterprises and in religious, charitable,
medical, or educational institutions, whether operating for profit or not, shall have the right to
self-organization and to form, join, or assist labor organizations of their own choosing for
purposes of collective bargaining. Ambulant, intermittent and itinerant workers, self-employed
people, rural workers and those without any definite employers may form labor organizations
for their mutual aid and protection.
ARTICLE 257. [246] Non-Abridgment of Right to Self-Organization. — It shall be unlawful for
any person to restrain, coerce, discriminate against or unduly interfere with employees and
workers in their exercise of the right to self-organization. Such right shall include the right to
form, join, or assist labor organizations for the purpose of collective bargaining through
representatives of their own choosing and to engage in lawful concerted activities for the same
purpose for their mutual aid and protection, subject to the provisions of Article 264 199 of this
Code.
ARTICLE 292. [277] Miscellaneous Provisions. — (c) Any employee, whether employed for a
definite period or not, shall, beginning on his first day of service, be considered as an employee
for purposes of membership in any labor union.
 ARTICLE 219. [212] Definitions. 158 — (e) "Employer" includes any person acting in the
interest of an employer, directly or indirectly. The term shall not include any labor organization
or any of its officers or agents except when acting as employer.
(f) "Employee" includes any person in the employ of an employer. The term shall not be limited
to the employees of a particular employer, unless the Code so explicitly states. It shall include
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.
• OMNIBUS RULES, BOOK V, RULE I-RULE II, AS AMENDED BY D.O. 40, SERIES OF 2003
RULE I
DEFINITION OF TERMS
Section 1. Definition of Terms.
(a) "Affiliate" refers to an independent union affiliated with a federation, national union or a
chartered local which was subsequently granted independent registration but did not disaffiliate
from its federation, reported to the Regional Office and the Bureau in accordance with Rule III,
Sections 6 and 7 of these Rules.
(b) "Appeal" refers to the elevation by an aggrieved party to an agency vested with appellate
authority of any decision, resolution or order disposing the principal issues of a case rendered
by an agency vested with original jurisdiction, undertaken by filing a memorandum of appeal.
(c) "Audit Examiner" refers to an officer of the Bureau or Labor Relations Division of the
Regional Office authorized to conduct an audit or examination of the books of accounts,
including all funds, assets and other accountabilities of a legitimate labor organization and
workers' association.
(d) "Bargaining Unit" refers to a group of employees sharing mutual interests within a given
employer unit, comprised of all or less than all of the entire body of employees in the employer
unit or any specific occupational or geographical grouping within such employer unit.
(e) "Board" refers to the National Conciliation and Mediation Board established under
Executive Order No. 126.
(f) "Bureau" refers to the Bureau of Labor Relations.
(g) "Cancellation Proceedings" refer to the legal process leading to the revocation of the
legitimate status of a union or workers' association.
(h) "Certification Election" or "Consent Election" refers to the process of determining through
secret ballot the sole and exclusive representative of the employees in an appropriate
bargaining unit for purposes of collective bargaining or negotiation. A certification election is
ordered by the Department, while a consent election is voluntarily agreed upon by the parties,
with or without the intervention by the Department.
(i) Chartered Local" refers to a labor organization in the private sector operating at the
enterprise level that acquired legal personality through registration with the Regional Office in
accordance with Rule III, Section 2-E of these Rules."
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(j) "Collective Bargaining Agreement" or "CBA" refers to the contract between a legitimate labor
union and the employer concerning wages, hours of work, and all other terms and conditions
of employment in a bargaining unit.
(k) "Conciliator Mediator" refers to an officer of the Board whose principal function is to assist
in the settlement and disposition of labor-management disputes through conciliation and
preventive mediation, including the promotion and encouragement of voluntary approaches to
labor disputes prevention and settlement.
(l) "Consolidation" refers to the creation or formation of a new union arising from the unification
of two or more unions.
(m) "Deregistration of Agreement" refers to the legal process leading to the revocation of CBA
registration.
(n) "Department" refers to the Department of Labor and Employment.
(o) "Election Officer" refers to an officer of the Bureau or Labor Relations Division in the
Regional Office authorized to conduct certification elections, election of union officers and other
forms of elections and referenda in accordance with Rule XII, Sections 2-5 of these Rules.
(p) "Election Proceedings" refer to the period during a certification election, consent or run-off
election and election of union officers, starting from the opening to the closing of the polls,
including the counting, tabulation and consolidation of votes, but excluding the period for the
final determination of the challenged votes and the canvass thereof.
(q) "Eligible Voter" refers to a voter belonging to the appropriate bargaining unit that is the
subject of a petition for certification election.
(r) "Employee" refers to any person working for an employer. It includes one whose work has
ceased in connection with any current labor dispute or because of any unfair labor practice
and one who has been dismissed from work but the legality of the dismissal is being contested
in a forum of appropriate jurisdiction.
(s) "Employer" refers to any person or entity who employs the services of others, one for whom
employees work and who pays their wages or salaries. An employer includes any person
directly or indirectly acting in the interest of an employer. It shall also refer to the enterprise
where a labor organization operates or seeks to operate.
(t) "Exclusive Bargaining Representative" refers to a legitimate labor union duly recognized or
certified as the sole and exclusive bargaining representative or agent of all the employees in a
bargaining unit.
(u) "Grievance" refers to any question by either the employer or the union regarding the
interpretation or implementation of any provision of the collective bargaining agreement or
interpretation or enforcement of company personnel policies.
(v) "Improved Offer Balloting" refers to a referendum by secret ballot involving union members
on the improved offer of the employer on or before the 30th day of a strike.
(w) "Independent Union" refers to a labor organization operating at the enterprise level that
acquired legal personality through independent registration under Article 234 of the Labor
Code and Rule III, Section 2-A of these Rules.
(x) "Inter-Union Dispute" refers to any conflict between and among legitimate labor unions
involving representation questions for purposes of collective bargaining or to any other conflict
or dispute between legitimate labor unions.
(y) "Interlocutory Order" refers to any order that does not ultimately resolve the main issue/s in
a dispute.
(z) "Interpleader" refers to a proceeding brought by a party against two or more parties with
conflicting claims, compelling the claimants to litigate between and among themselves their
respective rights to the claim, thereby relieving the party so filing from suits they may otherwise
bring against it.
(aa) "Intervention" refers to a proceeding whereby a person, labor organization or entity not a
party to a case but may be affected by a decision therein, formally moves to make
himself/herself/itself a party thereto.
(bb) "Intra-Union Dispute" refers to any conflict between and among union members, including
grievances arising from any violation of the rights and conditions of membership, violation of
or disagreement over any provision of the union's constitution and by-laws, or disputes arising
from chartering or affiliation of union.
(cc) "Labor Organization" refers to any union or association of employees in the private sector
which exists in whole or in part for the purpose of collective bargaining, mutual aid, interest,
cooperation, protection, or other lawful purposes.
(dd) "Labor Relations Division" refers to the (1) Labor Organization and CBA Registration Unit
and (2) Med-Arbitration Unit in the Regional Office. The Labor Organization and CBA
Registration Unit is in charge of processing the applications for registration of independent
unions, chartered locals, workers associations and collective bargaining agreements,
maintaining said records and all other reports and
incidents pertaining to labor organizations and workers' associations. The Med-Arbitration Unit
conducts hearings and decides certification election or representation cases, inter/intra-union
and other related labor relations disputes.
(ee) "Legitimate Labor Organization" refers to any labor organization in the private sector
registered or reported with the Department in accordance with Rules III and IV of these Rules.
(ff) "Legitimate Workers' Association" refers to an association of workers organized for mutual
aid and protection of its members or for any legitimate purpose other than collective bargaining
registered with the Department in accordance with Rule III, Sections 2-C and 2-D of these
Rules.
(gg) "Lockout" refers to the temporary refusal of an employer to furnish work as a result of a
labor or industrial dispute.
(hh) "Managerial Employee" refers to an employee who is vested with powers or prerogatives
to lay down and execute management policies or to hire, transfer, suspend, layoff, recall,
discharge, assign or discipline employees.
(ii) "Med-Arbiter" refers to an officer in the Regional Office or in the Bureau authorized to hear
and decide representation cases, inter/intra-union disputes and other related labor relations
disputes, except cancellation of union registration cases.
(jj) "Merger" refers to a process where a labor organization absorbs another resulting in the
cessation of the absorbed labor organization's existence, and the continued existence of the
absorbing labor organization.
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(kk) "National Union" or "Federation" refers to a group of legitimate labor unions in a private
establishment organized for collective bargaining or for dealing with employers concerning
terms and conditions of employment for their member unions or for participating in the
formulation of social and employment policies, standards and programs, registered with the
Bureau in accordance with Rule III, Section 2-B of these Rules.
(ll) "Organized Establishment" refers to an enterprise where there exists a recognized or
certified sole and exclusive bargaining agent.
(mm) "Preventive Mediation Cases" refer to labor disputes which are the subject of a formal or
informal request for conciliation and mediation assistance sought by either or both parties or
upon the initiative of the Board.
(nn) "Rank-and-File Employee" refers to an employee whose functions are neither managerial
nor supervisory in nature.
(oo) "Regional Director" refers to the Head of the Regional Office.
(pp) "Regional Office" refers to the office of the Department of Labor and Employment at the
administrative regional level.
(qq) "Registration" refers to the process of determining whether the application for registration
of a union or workers' association and collective bargaining agreement complies with the
documentary requirements for registration prescribed in Rules III, IV, and XVII of these Rules.
(rr) "Related Labor Relations Dispute" refers to any conflict between a labor union and the
employer or any individual, entity or group that is not a labor union or workers' association.
(ss) "Run-off Election" refers to an election between the labor unions receiving the two (2)
highest number of votes in a certification or consent election with three (3) or more choices,
where such a certified or consent results in none of the three (3) or more choices receiving the
majority of the valid votes cast; provided that the total number of votes for all contending unions
is at least fifty percent (50%) of the number of votes cast.
(tt) "Secretary" refers to the Head of the Department.
(uu) "Strike" refers to any temporary stoppage of work by the concerted action of employees
as a result of a labor or industrial dispute.
(vv) "Strike Area" refers to the establishment, warehouses, depots, plants or offices, including
the sites or premises used as run-away shops of the employer, as well as the immediate vicinity
actually used by picketing strikers in moving to and fro before all points of entrance.
(ww) "Strike Vote Balloting" refers to the secret balloting undertaken by the members of the
union in the bargaining unit concerned to determine whether or not to declare a strike in
meetings or referenda called for that purpose.
(xx) "Supervisory Employee" refers to an employee who, in the interest of the employer,
effectively recommends managerial actions and the exercise of such authority is not merely
routinary or clerical but requires the use of independent judgment.
(yy) "Term of Office" refers to the fixed period of five (5) years during which the duly elected
officers of a labor organization discharge the functions of their office, unless a shorter period
is stipulated in the organization's constitution and by-laws.

(zz) "Union" refers to any labor organization in the private sector organized for collective
bargaining and for other legitimate purposes.
(aaa) "Voluntary Arbitrator" refers to any person accredited by the Board as such, or any
person named or designated in the collective bargaining agreement by the parties to act as
their voluntary arbitrator, or one chosen by the parties, with or without the assistance of the
Board, pursuant to a selection procedure agreed upon in the collective bargaining agreement.
(bbb) "Voluntary Recognition" refers to the process by which a legitimate labor union is
recognized by the employer as the exclusive bargaining representative or agent in a bargaining
unit, reported with the Regional Office in accordance with Rule VII, Section 2 of these Rules.
(ccc) "Workers' Association" refers to an association of workers organized for the mutual aid
and protection of its members or for any legitimate purpose other than collective bargaining.
RULE II
COVERAGE OF THE RIGHT TO SELF-ORGANIZATION
Section 1. Policy. - It is the policy of the State to promote the free and responsible exercise of
the right to self-organization through the establishment of a simplified mechanism for the
speedy registration of. labor unions and workers associations, determination of representation
status and resolution of inter/intra-union and other related labor relations disputes. Only
legitimate or registered labor unions shall have the right to represent their members for
collective bargaining and other purposes. Workers' associations shall have the right to
represent their members for purposes other than collective bargaining.
Section 2. Who may join labor unions and workers' associations. - All persons employed in
commercial, industrial and agricultural enterprises, including employees of government owned
or controlled corporations without original charters established under the Corporation Code, as
well as employees of religious, charitable, medical or educational institutions whether operating
for profit or not, shall have the right to self-organization and to form, join or assist labor unions
for purposes of collective bargaining: provided, however, that supervisory employees shall not
be eligible for membership in a labor union of the rank-and-file employees but may form, join
or assist separate labor unions of their own. Managerial employees shall not be eligible to form,
join or assist any labor unions for purposes of collective bargaining. Alien employees with valid
working permits issued by the Department may exercise the right to self-organization and join
or assist labor unions for purposes of collective bargaining if they are nationals of a country
which grants the same or similar rights to Filipino workers, as certified by the Department of
Foreign Affairs.
For purposes of this section, any employee, whether employed for a definite period or not, shall
beginning on the first day of his/her service, be eligible for membership in any labor
organization. All other workers, including ambulant, intermittent and other workers, the self-
employed, rural workers and those without any definite employers may form labor
organizations for their mutual aid and protection and other legitimate purposes except
collective bargaining.
CASES ASSIGNED
1. S.S. Ventures International v. S.S. Ventures Labor Union
2. NUWHRAIN-Manila Pavilion Hotel Chapter v. Secretary
3. Samahan ng Manggagawa sa Hanjin Shipyard v. BLR
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4. Atlas Litographic Services v. Laguesma
LABOR ORGANIZATIONS AND REGISTRATION OF UNIONS
• LABOR CODE ARTS. 219 (G, H), 237, 240-251, 292 (A)
ARTICLE 219. [212] Definitions. 158 —
(g) "Labor organization" means any union or association of employees which exists in whole
or in part for the purpose of collective bargaining or of dealing with employers concerning terms
and conditions of employment.
(h) "Legitimate labor organization" means any labor organization duly registered with the
Department of Labor and Employment, and includes any branch or local thereof.
ARTICLE 237. [231] Registry of Unions and File of Collective Bargaining Agreements. — The
Bureau shall keep a registry of legitimate labor organizations.
The Bureau shall also maintain a file of all collective bargaining agreements and other related
agreements and records of settlement of labor disputes and copies of orders and decisions of
voluntary arbitrators or panel of voluntary arbitrators. The file shall be open and accessible to
interested parties under conditions prescribed by the Secretary of Labor and Employment,
provided that no specific information submitted in confidence shall be disclosed unless
authorized by the Secretary, or when it is at issue in any judicial litigation, or when public
interest or national security so requires.
Within thirty (30) days from the execution of a Collective Bargaining Agreement, the parties
shall submit copies of the same directly to the Bureau or the Regional Offices of the
Department of Labor and Employment for registration accompanied with verified proofs of its
posting in two conspicuous places in the place of work and ratification by the majority of all the
workers in the bargaining unit. The Bureau or Regional Offices shall act upon the application
for registration of such Collective Bargaining Agreement within five (5) calendar days from
receipt thereof. The Regional Offices shall furnish the Bureau with a copy of the Collective
Bargaining Agreement within five (5) days from its submission.
The Bureau or Regional Office shall assess the employer for every Collective Bargaining
Agreement a registration fee of not less than one thousand pesos (P1,000.00) or in any other
amount as may be deemed appropriate and necessary by the Secretary of Labor and
Employment for the effective and efficient administration of the Voluntary Arbitration Program.
Any amount collected under this provision shall accrue to the Special Voluntary Arbitration
Fund.
The Bureau shall also maintain a file, and shall undertake or assist in the publication of all final
decisions, orders and awards of the Secretary of Labor and Employment, Regional Directors
and the Commission.
Registration and Cancellation
ARTICLE 240. [234] Requirements of Registration. 182 — A federation, national union or
industry or trade union center or an independent union shall acquire legal personality and shall
be entitled to the rights and privileges granted by law to legitimate labor organizations upon
issuance of the certificate of registration based on the following requirements:
(a) Fifty pesos (P50.00) registration fee;

(b) The names of its officers, their addresses, the principal address of the labor organization,
the minutes of the organizational meetings and the list of the workers who participated in such
meetings; ScaCEH
(c) In case the applicant is an independent union, the names of all its members comprising at
least twenty percent (20%) of all the employees in the bargaining unit where it seeks to operate;
(d) If the applicant union has been in existence for one or more years, copies of its annual
financial reports; and
(e) Four copies of the constitution and by-laws of the applicant union, minutes of its adoption
or ratification, and the list of the members who participated in it.
ARTICLE 241. [234-A] Chartering and Creation of a Local Chapter. 183 — A duly registered
federation or national union may directly create a local chapter by issuing a charter certificate
indicating the establishment of the local chapter. The chapter shall acquire legal personality
only for purposes of filing a petition for certification election from the date it was issued a charter
certificate.
The chapter shall be entitled to all other rights and privileges of a legitimate labor organization
only upon the submission of the following documents in addition to its charter certificate:
(a) The names of the chapter's officers, their addresses, and the principal office of the chapter;
and
(b) The chapter's constitution and by-laws: Provided, That where the chapter's constitution and
by-laws are the same as that of the federation or the national union, this fact shall be indicated
accordingly.
The additional supporting requirements shall be certified under oath by the secretary or
treasurer of the chapter and attested by its president.
ARTICLE 242. [235] Action on Application. — The Bureau shall act on all applications for
registration within thirty (30) days from filing.
All requisite documents and papers shall be certified under oath by the secretary or the
treasurer of the organization, as the case may be, and attested to by its president.
ARTICLE 243. [236] Denial of Registration; Appeal. — The decision of the Labor Relations
Division in the regional office denying registration may be appealed by the applicant union to
the Bureau within ten (10) days from receipt of notice thereof.
ARTICLE 244. [237] Additional Requirements for Federations or National Unions. — Subject
to Article 238, 184 if the applicant for registration is a federation or a national union, it shall, in
addition to the requirements of the preceding Articles, submit the following:
Proof of the affiliation of at least ten (10) locals or chapters, each of which must be a duly
recognized collective bargaining agent in the establishment or industry in which it operates,
supporting the registration of such applicant federation or national union; and
The names and addresses of the companies where the locals or chapters operate and the list
of all the members in each company involved.
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ARTICLE 245. [238] Cancellation of Registration. — The certificate of registration of any
legitimate labor organization, whether national or local, may be cancelled by the Bureau, after
due hearing, only on the grounds specified in Article 239 hereof.
ARTICLE 246. [238-A] Effect of a Petition for Cancellation of Registration. — A petition for
cancellation of union registration shall not suspend the proceedings for certification election
nor shall it prevent the filing of a petition for certification election.
ARTICLE 247. [239] Grounds for Cancellation of Union Registration. — The following may
constitute grounds for cancellation of union registration:
(a) Misrepresentation, false statement or fraud in connection with the adoption or ratification of
the constitution and by-laws or amendments thereto, the minutes of ratification, and the list of
members who took part in the ratification;
(b) Misrepresentation, false statements or fraud in connection with the election of officers,
minutes of the election of officers, and the list of voters;
(c) Voluntary dissolution by the members.
ARTICLE 248. [239-A] Voluntary Cancellation of Registration. — The registration of a
legitimate labor organization may be cancelled by the organization itself: Provided, That at
least two-thirds of its general membership votes, in a meeting duly called for that purpose to
dissolve the organization: Provided, further, That an application to cancel registration is
thereafter submitted by the board of the organization, attested to by the president thereof.
ARTICLE 249. [240] Equity of the Incumbent. — All existing federations and national unions
which meet the qualifications of a legitimate labor organization and none of the grounds for
cancellation shall continue to maintain their existing affiliates regardless of the nature of the
industry and the location of the affiliates.
Rights and Conditions of Membership
ARTICLE 250. [241] Rights and Conditions of Membership in a Labor Organization. — The
following are the rights and conditions of membership in a labor organization:
(a) No arbitrary or excessive initiation fees shall be required of the members of a legitimate
labor organization nor shall arbitrary, excessive or oppressive fine and forfeiture be imposed;
(b) The members shall be entitled to full and detailed reports from their officers and
representatives of all financial transactions as provided for in the constitution and by-laws of
the organization;
(c) The members shall directly elect their officers in the local union, as well as their national
officers in the national union or federation to which they or their local union is affiliated, by
secret ballot at intervals of five (5) years. No qualification requirement for candidacy to any
position shall be imposed other than membership in good standing in subject labor
organization. The secretary or any other responsible union officer shall furnish the Secretary
of Labor and Employment with a list of the newly-elected officers, together with the appointive
officers or agents who are entrusted with the handling of funds within thirty (30) calendar days
after the election of officers or from the occurrence of any change in the list of officers of the
labor organization;
(d) The members shall determine by secret ballot, after due deliberation, any question of major
policy affecting the entire membership of the organization, unless the nature of the organization
or force majeure renders such secret ballot impractical, in which case, the board of directors
of the organization may make the decision in behalf of the general membership;
(e) No labor organization shall knowingly admit as members or continue in membership any
individual who belongs to a subversive organization or who is engaged directly or indirectly in
any subversive activity;
(f) No person who has been convicted of a crime involving moral turpitude shall be eligible for
election as a union officer or for appointment to any position in the union;
(g) No officer, agent or member of a labor organization shall collect any fees, dues, or other
contributions in its behalf or make any disbursement of its money or funds unless he is duly
authorized pursuant to its constitution and by-laws;
(h) Every payment of fees, dues or other contributions by a member shall be evidenced by a
receipt signed by the officer or agent making the collection and entered into the record of the
organization to be kept and maintained for the purpose;
(i) The funds of the organization shall not be applied for any purpose or object other than those
expressly provided by its constitution and by-laws or those expressly authorized by written
resolution adopted by the majority of the members at a general meeting duly called for the
purpose;
(j) Every income or revenue of the organization shall be evidenced by a record showing its
source, and every expenditure of its funds shall be evidenced by a receipt from the person to
whom the payment is made, which shall state the date, place and purpose of such payment.
Such record or receipt shall form part of the financial records of the organization.
Any action involving the funds of the organization shall prescribe after three (3) years from the
date of submission of the annual financial report to the Department of Labor and Employment
or from the date the same should have been submitted as required by law, whichever comes
earlier: Provided, That this provision shall apply only to a legitimate labor organization which
has submitted the financial report requirements under this Code: Provided, further, That failure
of any labor organization to comply with the periodic financial reports required by law and such
rules and regulations promulgated thereunder six (6) months after the effectivity of this Act
shall automatically result in the cancellation of union registration of such labor organization;
(k) The officers of any labor organization shall not be paid any compensation other than the
salaries and expenses due to their positions as specifically provided for in its constitution and
by-laws, or in a written resolution duly authorized by a majority of all the members at a general
membership meeting duly called for the purpose. The minutes of the meeting and the list of
Rights of Legitimate Labor Organizations
participants and ballots cast shall be subject to inspection by the Secretary of Labor or his duly
authorized representatives. Any irregularities in the approval of the resolutions shall be a
ground for impeachment or expulsion from the organization;
(l) The treasurer of any labor organization and every officer thereof who is responsible for the
account of such organization or for the collection, management, disbursement, custody or
control of the funds, moneys and other properties of the organization, shall render to the
organization and to its members a true and correct account of all moneys received and paid
by him since he assumed office or since the last day on which he rendered such account, and
of all bonds, securities and other properties of the organization entrusted to his custody or
under his control. The rendering of such account shall be made:
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(1) At least once a year within thirty (30) days after the close of its fiscal year;
(2) At such other times as may be required by a resolution of the majority of the members of
the organization; and
(3) Upon vacating his office.
The account shall be duly audited and verified by affidavit and a copy thereof shall be furnished
the Secretary of Labor.
(m) The books of accounts and other records of the financial activities of any labor organization
shall be open to inspection by any officer or member thereof during office hours;
(n) No special assessment or other extraordinary fees may be levied upon the members of a
labor organization unless authorized by a written resolution of a majority of all the members in
a general membership meeting duly called for the purpose. The secretary of the organization
shall record the minutes of the meeting including the list of all members present, the votes cast,
the purpose of the special assessment or fees and the recipient of such assessment or fees.
The record shall be attested to by the president.
(o) Other than for mandatory activities under the Code, no special assessments, attorney's
fees, negotiation fees or any other extraordinary fees may be checked off from any amount
due to an employee without an individual written authorization duly signed by the employee.
The authorization should specifically state the amount, purpose and beneficiary of the
deduction; and
(p) It shall be the duty of any labor organization and its officers to inform its members on the
provisions of its constitution and by-laws, collective bargaining agreement, the prevailing labor
relations system and all their rights and obligations under existing labor laws.
For this purpose, registered labor organizations may assess reasonable dues to finance labor
relations seminars and other labor education activities.
Any violation of the above rights and conditions of membership shall be a ground for
cancellation of union registration or expulsion of officers from office, whichever is appropriate.
At least thirty percent (30%) of the members of a union or any member or members specially
concerned may report such violation to the Bureau. The Bureau shall have the power to hear
and decide any reported violation to mete the appropriate penalty.
Criminal and civil liabilities arising from violations of above rights and conditions of membership
shall continue to be under the jurisdiction of ordinary courts.
ARTICLE 251. [242] Rights of Legitimate Labor Organizations. 192 — A legitimate labor
organization shall have the right:
(a) To act as the representative of its members for the purpose of collective bargaining;
(b) To be certified as the exclusive representative of all the employees in an appropriate
bargaining unit for purposes of collective bargaining;
 (c) To be furnished by the employer, upon written request, with its annual audited financial
statements, including the balance sheet and the profit and loss statement, within thirty (30)
calendar days from the date of receipt of the request, after the union has been duly recognized
by the employer or certified as the sole and exclusive bargaining representative of the
employees in the bargaining unit, or within sixty (60) calendar days before the expiration of the
existing collective bargaining agreement, or during the collective bargaining negotiation;
(d) To own property, real or personal, for the use and benefit of the labor organization and its
members;
(e) To sue and be sued in its registered name; and
(f) To undertake all other activities designed to benefit the organization and its members,
including cooperative, housing, welfare and other projects not contrary to law.
Notwithstanding any provision of a general or special law to the contrary, the income and the
properties of legitimate labor organizations, including grants, endowments, gifts, donations and
contributions they may receive from fraternal and similar organizations, local or foreign, which
are actually, directly and exclusively used for their lawful purposes, shall be free from taxes,
duties and other assessments. The exemptions provided herein may be withdrawn only by a
special law expressly repealing this provision.
ARTICLE 292. [277] Miscellaneous Provisions. — (a) All unions are authorized to collect
reasonable membership fees, union dues, assessments and fines and other contributions for
labor education and research, mutual death and hospitalization benefits, welfare fund, strike
fund and credit and cooperative undertakings.
• OMNIBUS RULES BOOK V, RULE I, §1 (A, H-P, W, CC, EE, FF, JJ, KK, ZZ, CCC), RULE III-V, XIV-XV,
AS AMENDED BY D.O. 40-03, AS FURTHER AMENDED BY D.O. 40-B
Section 1. Definition of Terms.
(a) "Affiliate" refers to an independent union affiliated with a federation, national union or a
chartered local which was subsequently granted independent registration but did not disaffiliate
from its federation, reported to the Regional Office and the Bureau in accordance with Rule III,
Sections 6 and 7 of these Rules.
(h) "Certification Election" or "Consent Election" refers to the process of determining through
secret ballot the sole and exclusive representative of the employees in an appropriate
bargaining unit for purposes of collective bargaining or negotiation. A certification election is
ordered by the Department, while a consent election is voluntarily agreed upon by the parties,
with or without the intervention by the Department.
(i) Chartered Local" refers to a labor organization in the private sector operating at the
enterprise level that acquired legal personality through registration with the Regional Office in
accordance with Rule III, Section 2-E of these Rules."
(j) "Collective Bargaining Agreement" or "CBA" refers to the contract between a legitimate labor
union and the employer concerning wages, hours of work, and all other terms and conditions
of employment in a bargaining unit.
(k) "Conciliator Mediator" refers to an officer of the Board whose principal function is to assist
in the settlement and disposition of labor-management disputes through conciliation and
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preventive mediation, including the promotion and encouragement of voluntary approaches to
labor disputes prevention and settlement.
(l) "Consolidation" refers to the creation or formation of a new union arising from the unification
of two or more unions.
(m) "Deregistration of Agreement" refers to the legal process leading to the revocation of CBA
registration.
(n) "Department" refers to the Department of Labor and Employment.
(o) "Election Officer" refers to an officer of the Bureau or Labor Relations Division in the
Regional Office authorized to conduct certification elections, election of union officers and other
forms of elections and referenda in accordance with Rule XII, Sections 2-5 of these Rules.
(p) "Election Proceedings" refer to the period during a certification election, consent or run-off
election and election of union officers, starting from the opening to the closing of the polls,
including the counting, tabulation and consolidation of votes, but excluding the period for the
final determination of the challenged votes and the canvass thereof.
(w) "Independent Union" refers to a labor organization operating at the enterprise level that
acquired legal personality through independent registration under Article 234 of the Labor
Code and Rule III, Section 2-A of these Rules.
(cc) "Labor Organization" refers to any union or association of employees in the private sector
which exists in whole or in part for the purpose of collective bargaining, mutual aid, interest,
cooperation, protection, or other lawful purposes.
(ee) "Legitimate Labor Organization" refers to any labor organization in the private sector
registered or reported with the Department in accordance with Rules III and IV of these Rules.
(ff) "Legitimate Workers' Association" refers to an association of workers organized for mutual
aid and protection of its members or for any legitimate purpose other than collective bargaining
registered with the Department in accordance with Rule III, Sections 2-C and 2-D of these
Rules.
(jj) "Merger" refers to a process where a labor organization absorbs another resulting in the
cessation of the absorbed labor organization's existence, and the continued existence of the
absorbing labor organization.
(kk) "National Union" or "Federation" refers to a group of legitimate labor unions in a private
establishment organized for collective bargaining or for dealing with employers concerning
terms and conditions of employment for their member unions or for participating in the
formulation of social and employment policies, standards and programs, registered with the
Bureau in accordance with Rule III, Section 2-B of these Rules.
(zz) "Union" refers to any labor organization in the private sector organized for collective
bargaining and for other legitimate purposes.
(ccc) "Workers' Association" refers to an association of workers organized for the mutual aid
and protection of its members or for any legitimate purpose other than collective bargaining.
RULE III
REGISTRATION OF LABOR ORGANIZATIONS
Section 1. Where to file. - Applications for registration of independent labor unions, chartered
locals, workers' associations shall be filed with the Regional Office where the applicant
principally operates. It shall be processed by the Labor Relations Division at the Regional
Office in accordance with Sections 2-A, 2-C, and 2-E of this Rule. Applications for registration
of federations, national unions or workers' associations operating in more than one region shall
be filed with the Bureau or the Regional Offices, but shall be processed by the Bureau in
accordance with Sections 2-B and 2-D of this Rule.
Section 2. Requirements for application. - A. The application for registration of an independent
labor union shall be accompanied by the following documents:
1) the name of the applicant labor union, its principal address, the name of its officers and their
respective addresses, approximate number of employees in the bargaining unit where it seeks
to operate, with a statement that it is not reported as a chartered local of any federation or
national union;
2) the minutes of the organizational meeting(s) and the list of employees who participated in
the said meeting(s);
3) the name of all its members comprising at least 20% of the employees in the bargaining
unit;
4) the annual financial reports if the applicant has been in existence for one or more years,
unless it has not collected any amount from the members, in which case a statement to this
effect shall be included in the application;
5) the applicant's constitution and by-laws, minutes of its adoption or ratification, and the list of
the members who participated in it. The list of ratifying members shall be dispensed with where
the constitution and by-laws was ratified or adopted during the organizational meeting. In such
a case, the factual circumstances of the ratification shall be recorded in the minutes of the
organizational meeting(s).
B. The application for registration of federations and national unions shall be accompanied by
the following documents:
1) a statement indicating the name of the applicant labor union, its principal address, the name
of its officers and their respective addresses;
2) the minutes of the organizational meeting(s) and the list of employees who participated in
the said meeting(s);
3) the annual financial reports if the applicant union has been in existence for one or more
years, unless it has not collected any amount from the members, in which case a statement to
this effect shall be included in the application;
4) the applicant union's constitution and by-laws, minutes of its adoption or ratification, and the
list of the members who participated in it. The list of ratifying members shall be dispensed with
where the constitution and by-laws was ratified or adopted during the organizational
meeting(s). In such a case, the factual circumstances of the ratification shall be recorded in the
minutes of the organizational meeting(s);
5) the resolution of affiliation of at least ten (10) legitimate labor organizations, whether
independent unions or chartered locals, each of which must be a duly certified or recognized
bargaining agent in the establishment where it seeks to operate; and
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6) the name and addresses of the companies where the affiliates operate and the list of all the
members in each company involved.
Labor organizations operating within an identified industry may also apply for registration as a
federation or national union within the specified industry by submitting to the Bureau the same
set of documents.
C. The application for registration of a workers' association shall be accompanied by the
following documents:
1) the name of the applicant association, its principal address, the name of its officers and their
respective addresses;
2) the minutes of the organizational meeting(s) and the list of members who participated
therein;
3) the financial reports of the applicant association if it has been in existence for one or more
years, unless it has not collected any amount from the members, in which case a statement to
this effect shall be included in the application;
4) the applicant's constitution and by-laws to which must be attached the names of ratifying
members, the minutes of adoption or ratification of the constitution and by-laws and the date
when ratification was made, unless ratification was done in the organizational meeting(s), in
which case such fact shall be reflected in the minutes of the organizational meeting(s).
D. Application for registration of a workers' association operating in more than one region shall
be accompanied, in addition to the requirements in the preceding subsection, by a resolution
of membership of each member association, duly approved by its board of directors.
E. A duly-registered federation or national union may directly create a chartered local by
submitting to the Regional Office two (2) copies of the following:
(a) A charter certificate issued by the federation or national union indicating the creation or
establishment of the local/chapter;
(b) The names of the local/chapter's officers, their addresses, and the principal office of the
local/chapter; and
(c) The local/chapter's constitution and by-laws, provided that where the local/chapter's
constitution and by-laws is the same as that of the federation or national union, this fact shall
be indicated accordingly.
All the foregoing supporting requirements shall be certified under oath by the Secretary or the
Treasurer of the local/chapter and attested by its President.
Section 3. Notice of change of name of labor organizations; Where to file. - The notice for
change of name of a registered labor organization shall be filed with the Bureau or the Regional
Office where the concerned labor organization's certificate of registration or certificate of
creation of a chartered local was issued.
Section 4. Requirements for notice of change of name. - The notice for change of name of a
labor organization shall be accompanied by the following documents:
(a) proof of approval or ratification of change of name; and
(b) the amended constitution and by-laws.
Section 5. Certificate of Registration/Certificate of Creation of Chartered Local for change of
name. - The certificate of registration and the certificate of creation of a chartered local issued
to the labor organization for change of name shall bear the same registration number as the
original certificate issued in its favor and shall indicate the following: (a) the new name of the
labor organization; (b) its former name; (c) its office or business address; and (d) the date when
the labor organization acquired legitimate personality as stated in its original certificate of
registration/certificate of creation of chartered local.
Section 6. Report of Affiliation with federations or national unions; Where to file. - The report
of affiliation of an independently registered labor union with a federation or national union shall
be filed with the Regional Office that issued its certificate of registration.
Section 7. Requirements of affiliation. - The report of affiliation of independently registered
labor unions with a federation or national union shall be accompanied by the following
documents:
(a) resolution of the labor union's board of directors approving the affiliation;
(b) minutes of the general membership meeting approving the affiliation;
• LABOR CODE ARTS. 240, 241, 245, 246, 247, 248, 252
(c) the total number of members comprising the labor union and the names of members who
approved the affiliation;
Registration and Cancellation
(d) the certificate of affiliation issued by the federation in favor of the independently registered
labor union; and
(e) written notice to the employer concerned if the affiliating union is the incumbent bargaining
agent.
Section 8. Notice of Merger/Consolidation of labor organizations; Where to file. - Notice of
merger or consolidation of independent labor unions, chartered locals and workers'
associations shall be filed with and recorded by the Regional Office that issued the certificate
of registration/certificate of creation of chartered local of either the merging or consolidating
labor organization. Notice of merger or
consolidation of federations or national unions shall be filed with and recorded by the Bureau.
Section 9. Requirements of notice of merger. - The notice of merger of labor organizations
shall be accompanied by the following documents:
(a) the minutes of merger convention or general membership meeting(s) of all the merging
labor organizations, with the list of their respective members who approved the same; and
(b) the amended constitution and by-laws and minutes of its ratification, unless ratification
transpired in the merger convention, which fact shall be indicated accordingly.
Section 10. Certificate of Registration. - The certificate of registration issued to merged labor
organizations shall bear the registration number of one of the merging labor organizations as
agreed upon by the parties to the merger.
The certificate of registration shall indicate the following: (a) the new name of the merged labor
organization; (b) the fact that it is a merger of two or more labor organizations; (c) the name of
the labor organizations that were merged; (d) its office or business address; and (e) the date
when each of the merging labor organizations acquired legitimate personality as stated in their
respective original certificate of registration.
10
Section 11. Requirements of notice of consolidation. - The notice of consolidation of labor
organizations shall be accompanied by the following documents:
(a) the minutes of consolidation convention of all the consolidating labor organizations, with
the list of their respective members who approved the same; and
(b) the amended constitution and by-laws, minutes of its ratification transpired in the
consolidation convention or in the same general membership meeting(s), which fact shall be
indicated accordingly.
Section 12. Certificate of Registration. - The certificate of registration issued to a consolidated
labor organization shall bear the registration number of one of the consolidating labor
organizations as agreed upon by the parties to the consolidation.
The certificate of registration shall indicate the following (a) the new name of the consolidated
labor organization; (b) the fact that it is a consolidation of two or more labor organizations; (c)
the name of the labor organizations that were consolidated; (d) its office or business address;
and (e) the date when each of the consolidating labor organizations acquired legitimate
personality as stated in their respective original certificates of registration.
ARTICLE 240. [234] Requirements of Registration. 182 — A federation, national union or
industry or trade union center or an independent union shall acquire legal personality and shall
be entitled to the rights and privileges granted by law to legitimate labor organizations upon
issuance of the certificate of registration based on the following requirements:
(a) Fifty pesos (P50.00) registration fee;
(b) The names of its officers, their addresses, the principal address of the labor organization,
the minutes of the organizational meetings and the list of the workers who participated in such
meetings; ScaCEH
(c) In case the applicant is an independent union, the names of all its members comprising at
least twenty percent (20%) of all the employees in the bargaining unit where it seeks to operate;
(d) If the applicant union has been in existence for one or more years, copies of its annual
financial reports; and
(e) Four copies of the constitution and by-laws of the applicant union, minutes of its adoption
or ratification, and the list of the members who participated in it.
ARTICLE 241. [234-A] Chartering and Creation of a Local Chapter. 183 — A duly registered
federation or national union may directly create a local chapter by issuing a charter certificate
indicating the establishment of the local chapter. The chapter shall acquire legal personality
only for purposes of filing a petition for certification election from the date it was issued a charter
certificate.
The chapter shall be entitled to all other rights and privileges of a legitimate labor organization
only upon the submission of the following documents in addition to its charter certificate:
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 (a) The names of the chapter's officers, their addresses, and the principal office of the chapter;
and
(b) The chapter's constitution and by-laws: Provided, That where the chapter's constitution and
by-laws are the same as that of the federation or the national union, this fact shall be indicated
accordingly.
The additional supporting requirements shall be certified under oath by the secretary or
treasurer of the chapter and attested by its president.
ARTICLE 245. [238] Cancellation of Registration. — The certificate of registration of any
legitimate labor organization, whether national or local, may be cancelled by the Bureau, after
due hearing, only on the grounds specified in Article 239 hereof.
ARTICLE 246. [238-A] Effect of a Petition for Cancellation of Registration. — A petition for
cancellation of union registration shall not suspend the proceedings for certification election
nor shall it prevent the filing of a petition for certification election.
In case of cancellation, nothing herein shall restrict the right of the union to seek just and
equitable remedies in the appropriate courts.
ARTICLE 247. [239] Grounds for Cancellation of Union Registration. — The following may
constitute grounds for cancellation of union registration:
(a) Misrepresentation, false statement or fraud in connection with the adoption or ratification of
the constitution and by-laws or amendments thereto, the minutes of ratification, and the list of
members who took part in the ratification;
(b) Misrepresentation, false statements or fraud in connection with the election of officers,
minutes of the election of officers, and the list of voters;
(c) Voluntary dissolution by the members.
ARTICLE 248. [239-A] Voluntary Cancellation of Registration. — The registration of
legitimate labor organization may be cancelled by the organization itself: Provided, That
least two-thirds of its general membership votes, in a meeting duly called for that purpose
dissolve the organization: Provided, further, That an application to cancel registration
thereafter submitted by the board of the organization, attested to by the president thereof.
Rights and Conditions of Membership
ARTICLE 252. [242-A] Reportorial Requirements. — The following are documents required to
be submitted to the Bureau by the legitimate labor organization concerned:
(a) Its constitution and by-laws, or amendments thereto, the minutes of ratification, and the list
of members who took part in the ratification of the constitution and by-laws within thirty (30)
days from adoption or ratification of the constitution and by-laws or amendments thereto;
(b) Its list of officers, minutes of the election of officers, and list of voters within thirty (30) days
from election;
(c) Its annual financial report within thirty (30) days after the close of every fiscal year; and
(d) Its list of members at least once a year or whenever required by the Bureau.
Failure to comply with the above requirements shall not be a ground for cancellation of union
registration but shall subject the erring officers or members to suspension, expulsion from
membership, or any appropriate penalty.
• D.O. NO. 40-F-03, SERIES OF 2008 (IMPLEMENTING RULES FOR RA 9481 AMENDMENTS)
See attached
CASES ASSIGNED
5. Tagaytay Highlands v. Tagaytay Highlands Employees Union
6. San Miguel Corporation Employees Union-Philippine Transport and General Workers
Organization (SMCEU-PIGWO) v. San Miguel Packaging Products Eployees Union-
Pambansang Diwa ng Manggagawang Pilipino
7. The Heritage Hotel Manila v. Pinag-Isaang Galing At Lakas Ng Mga Manggagawa Sa
Heritage Manila
8. Eagle Ridge Gold and Country Club v. CA
9. Samahang Manggagawa sa Charter Chemical (SMCC-SUPER) v. Charter Chemical
and Coating Corp.
10. Yokohama Tire Philippines v. Yokohama Employees Union
11. Yakata Philippines v. BLR and SALAMAT
ELIGIBILITY FOR MEMBERSHIP
• LABOR CODE ARTS. 225, 219(M), 256
ARTICLE 255. [245] Ineligibility of Managerial Employees to Join Any Labor Organization;
Right of Supervisory Employees. — Managerial employees are not eligible to join, assist or
form any labor organization. Supervisory employees shall not be eligible for membership in
the collective bargaining unit of the rank-and-file employees but may join, assist or form
separate collective bargaining units and/or legitimate labor organizations of their own. The
rank and file union and the supervisors' union operating within the same establishment may
a
join the same federation or national union.
at
to
is ARTICLE 219. [212] Definitions.
(m) "Managerial employee" is one who is vested with the powers or prerogatives to lay down
and execute management policies and/or to hire, transfer, suspend, lay-off, recall, discharge,
assign or discipline employees. Supervisory employees 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. All
employees not falling within any of the above definitions are considered rank-and-file
employees for purposes of this Book.
ARTICLE 256. [245-A] Effect of Inclusion as Members of Employees Outside the Bargaining
Unit. — The inclusion as union members of employees outside the bargaining unit shall not
be a ground for the cancellation of the registration of the union. Said employees are
automatically deemed removed from the list of membership of said union.
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• DEPARTMENT ORDER NO. 40-F-03, SERIES OF 2008
See attached
• OMNIBUS RULES, BOOK V, RULE I, SEC. 1 (HH), (NN), (XX), AS AMENDED BY D.O. 40
SECTION 1. Definition of Terms.
(hh) “Managerial Employee” refers to an employee who is vested with powers or prerogatives
o lay down and execute management policies or to hire, transfer, suspend, layoff, recall,
discharge, assign, or discipline employees.
(nn) "Rank-and-File Employee" refers to an employee whose functions are neither
managerial nor supervisory in nature.
(xx) "Supervisory Employee" refers to an employee who, in the interest of the employer,
effectively recommends managerial actions and the exercise of such authority is not merely
routinary or clerical but requires the use of independent judgment.
Union Security Clause: Art. 259 (e)
Art. 259 [248] unfair Labor Practices of Employers-
(e) To discriminate in regard to wages, hours of work and other terms and conditions of
employment in order to encourage or discourage membership in any labor
organization. Nothing in this Code or in any other law shall stop the parties from
requiring membership in a recognized collective bargaining agent as a condition for
employment, except those employees who are already members of another union
at the time of the signing of the collective bargaining agreement. Employees of an
appropriate bargaining unit who are not members of the recognized collective
bargaining agent may be assessed a reasonable fee equivalent to the dues and
other fees paid by members of the recognized collective bargaining agent, if such
non-union members accept the benefits under the collective bargaining agreement:
Provided, that the individual authorization required under Article 242, paragraph (o)
of this Code shall not apply to the non-members of the recognized collective
bargaining agent
CASES ASSIGNED
16. BPI v. BPI Employees Union
17. General Milling Corp. v. Casio
18. PICOP Resources, Inc. v. Taneca
19. Victoriano v. Elizalde Rope Workers Union (Note: Kapatiran sa Meat and Canning
Division v. Ferrer-Calleja)
Conditions of Membership and Rights of Members
ARTICLE 250. [241] Rights and Conditions of Membership in a Labor Organization. — The
following are the rights and conditions of membership in a labor organization:
(a) No arbitrary or excessive initiation fees shall be required of the members of a legitimate
labor organization nor shall arbitrary, excessive or oppressive fine and forfeiture be imposed;
(b) The members shall be entitled to full and detailed reports from their officers and
12
representatives of all financial transactions as provided for in the constitution and by-laws of
the organization;
(c) The members shall directly elect their officers in the local union, as well as their national
officers in the national union or federation to which they or their local union is affiliated, by
secret ballot at intervals of five (5) years. No qualification requirement for candidacy to any
position shall be imposed other than membership in good standing in subject labor
organization. The secretary or any other responsible union officer shall furnish the Secretary
of Labor and Employment with a list of the newly-elected officers, together with the appointive
officers or agents who are entrusted with the handling of funds within thirty (30) calendar days
after the election of officers or from the occurrence of any change in the list of officers of the
labor organization;
(d) The members shall determine by secret ballot, after due deliberation, any question of major
policy affecting the entire membership of the organization, unless the nature of the organization
or force majeure renders such secret ballot impractical, in which case, the board of directors
of the organization may make the decision in behalf of the general membership;
(e) No labor organization shall knowingly admit as members or continue in membership any
individual who belongs to a subversive organization or who is engaged directly or indirectly in
any subversive activity;
Art. 289 [274]. Visitorial power. The Secretary of Labor and Employment or his duly
authorized representative is hereby empowered to inquire into the financial activities of
legitimate labor organizations upon the filing of a complaint under oath and duly supported by
the written consent of at least twenty percent (20%) of the total membership of the labor
organization concerned and to examine their books of accounts and other records to determine
compliance or non-compliance with the law and to prosecute any violations of the law and the
union constitution and by-laws: Provided, That such inquiry or examination shall not be
conducted during the sixty (60)-day freedom period nor within the thirty (30) days immediately
preceding the date of election of union officials. (As amended by Section 31, Republic Act No.
6715, March 21, 1989)
Art. 228 [222]. Appearances and Fees.
b. No attorney’s fees, negotiation fees or similar charges of any kind arising from any
collective bargaining agreement shall be imposed on any individual member of the
contracting union: Provided, However, that attorney’s fees may be charged against
union funds in an amount to be agreed upon by the parties. Any contract, agreement
or arrangement of any sort to the contrary shall be null and void. (As amended by
Presidential Decree No. 1691, May 1, 1980)
Omnibus Rules, Book V, Rule XI, XII, XIII, XVIII, XX, as amended by D.O. 40-03
RULE XI
I NTER/INTRA-UNION DISPUTES AND OTHER RELATED LABOR RELATIONS
DISPUTES
Section 1. Coverage. - Inter/intra-union disputes shall include:
(a) cancellation of registration
of a labor organization filed by its members or by another labor organization;
(b) conduct of
election of union and workers' association officers/nullification of election of union and workers'
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association officers;
(c) audit/accounts examination of union or workers' association funds;
 When two or more petitions involving the same parties and the same causes of action are filed,
(d) deregistration of collective bargaining agreements;
(e) validity/invalidity of union affiliation
or disaffiliation;
(f) validity/invalidity of acceptance/non-acceptance for union membership;
(g)
validity/invalidity of impeachment/expulsion of union and workers association officers and
members; (h) validity/invalidity of voluntary recognition;
(i) opposition to application for union
and CBA registration;
(j) violations of or disagreements over any provision in a union or
workers' association constitution and by-laws;
(k) disagreements over chartering or
registration of labor organizations and collective bargaining agreements;
(l) violations of the
rights and conditions of union or workers' association membership;
(m) violations of the rights
of legitimate labor organizations, except interpretation of collective bargaining agreements;
 or petition;
(e) cause(s) of action or specific violation(s) committed;
(f) a statement that the
(n) such other disputes or conflicts involving the rights to self-organization, union membership
and collective bargaining -
(1) between and among legitimate labor organizations;
(2)
between and among members of a union or workers' association.
Section 2. Coverage. - Other related labor relations disputes shall include any conflict
between a labor union and the employer or any individual, entity or group that is not a labor
organization or workers' association. This includes: (1) cancellation of registration of unions
and workers associations; and (2) a petition for interpleader.
Section 3. Effects of the filing/pendency of inter/intra-union and other related labor
relations disputes. - The rights, relationships and obligations of the parties litigants against
each other and other parties-in-interest prior to the institution of the petition shall continue to
remain during the pendency of the petition and until the date of finality of the decision rendered
therein. Thereafter, the rights, relationships and obligations of the parties litigants against each
other and other parties-in-interest shall be governed by the decision so ordered.
The filing or pendency of any inter/intra-union dispute and other related labor relations dispute
is not a prejudicial question to any petition for certification election and shall not be a ground
for the dismissal of a petition for certification election or suspension of proceedings for
certification election.
Section 4. Who may file. - Any legitimate labor organization or member(s) thereof specially
concerned may file a complaint or petition involving disputes or issues enumerated in Section
1 hereof. Any party- in-interest may file a complaint or petition involving disputes or issues
enumerated in Section 2 hereof. Where the issue involves the entire membership of the labor
organization, the complaint or petition shall be supported by at least thirty percent (30%) of its
members.
Section 5. Where to file. - Complaints or petitions involving labor unions with independent
registrations, chartered locals, workers' associations, its officers or members shall be filed with
the Regional Office that issued its certificate of registration or certificate of creation of chartered
local. Complaints involving federations, national unions, industry unions, its officers or member
organizations shall be filed with the Bureau.
Petitions for cancellation of registration of labor
unions with independent registration, chartered locals and workers association and petitions
for deregistration of collective bargaining agreements shall be resolved by the Regional
Director. He/She may appoint a Hearing Officer from the Labor Relations Division.
Other
inter/intra-union disputes and related labor relations disputes shall be heard and resolved by
the Med-Arbiter in the Regional Office.
Complaints or petitions involving federations, national
or industry unions, trade union centers and their chartered locals, affiliates or member
organizations shall be filed either with the Regional Office or the Bureau. The complaint or
petition shall be heard and resolved by the Bureau.
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the same shall be automatically consolidated.
Section 6. Formal requirements of the complaint or petition. - The complaint or petition
shall be in writing, verified under oath and shall, among others, contain the following:
(a) name,
address and other personal circumstances of the complainant(s) or petitioner(s);
(b) name,
address and other personal circumstances of the respondent(s) or person(s) charged;
(c) nature of the complaint or petition;
(d) facts and circumstances surrounding the complaint
administrative remedies provided for in the constitution and by-laws have been exhausted or
such remedies are not readily available to the complainant(s) or petitioner(s) through no fault
of his/her/their own, or compliance with such administrative remedies does not apply to
complainant(s) or petitioner(s);
(g) relief(s) prayed for;
(h) certificate of non-forum shopping;
and
(i) other relevant matters.
Section 7. Raffle of the case. -Upon the filing of the complaint or petition, the Regional
Director or any of his/her authorized representative in the Regional Office and the Docket
Section of the Bureau shall allow the party filing the complaint or petition to determine the Med-
Arbiter or Hearing Officer assigned to the case by means of a raffle. Where there is only one
Med-Arbiter or Hearing Officer in the region, the raffle shall be dispensed with and the
complaint or petition shall be assigned to him/her.
Section 8. Notice of preliminary conference. - Immediately after the raffle of the case or
receipt of the complaint or petition, the same shall be transmitted to the Med-Arbiter or Hearing
Officer, as the case may be, who shall in the same instance prepare the notice for preliminary
conference and cause the service thereof upon the party filing the petition. The preliminary
conference shall be scheduled within ten (10) days from receipt of the complaint or petition.
Within three (3) days from receipt of the complaint or petition, the Med-Arbiter or Hearing
Officer, as the case may be, shall cause the service of summons upon the respondent(s)
named therein, directing him/her to file his/her answer/comment on the complaint or petition
on or before the scheduled preliminary conference and to appear before the Med-Arbiter or
Hearing Officer on the scheduled preliminary conference.
Section 9. Conduct of preliminary conference. - The Med-Arbiter or Hearing Officer, as the
case may be, shall conduct a preliminary conference and hearing within ten (10) days from
receipt of the complaint or petition. He/She shall exert every effort to effect an amicable
settlement of the dispute. Where the parties agree to settle amicably, their agreements shall
be specified in the minutes of the conference and a decision based on compromise shall be
issued by the Med-Arbiter or the Regional Director, as the case may be, within five (5) days
from the date of the mandatory conference.
Where no amicable settlement is reached, the
Med-Arbiter or Hearing Officer, as the case may be, shall proceed with the stipulation of facts,
limitation or definition of the issues, clarificatory questioning and submission of laws and
jurisprudence relied upon in support of each other's claims and defenses.
Section 10. Conduct of Hearing(s). - The Med-Arbiter or Hearing Officer, as the case may
be, shall determine whether to call further hearing(s) on the complaint or petition.
Where the
Med-Arbiter or Hearing Officer, as the case may be, decides to conduct further hearing(s),
he/she shall require the parties to submit the affidavits of their witnesses and such
documentary evidence material to prove each other's claims and defenses. The hearing(s)
shall be limited to clarificatory questions by the Med-Arbiter or Hearing Officer and must be
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completed within twenty-five (25) days from the date of preliminary conference.
The complaint or petition shall be considered submitted for decision after the date of the last
hearing or upon expiration of twenty-five (25) days from date of preliminary conference,
whichever comes first.
Section 11. Affirmation of testimonial evidence. - Any affidavit submitted by a party to
prove his/her claims or defenses shall be re-affirmed by the presentation of the affiant before
the Med-Arbiter or Hearing Officer, as the case may be. Any affidavit submitted without the re-
affirmation of the affiant during a scheduled hearing shall not be admitted in evidence, except
when the party against whom the affidavit is being offered admits all allegations therein and
waives the examination of the affiant.
Section 12. Filing of pleadings. - The parties may file his/her pleadings, including their
respective position papers, within the twenty-five (25) day period prescribed for the conduct of
hearing(s). No other pleading shall be considered or entertained after the case is considered
submitted for decision.
Section 13. Hearing and resolution of the complaint or petition in the Bureau. - The
Bureau shall observe the same process and have the same period within which to hear and
resolve the complaints or petitions filed before it.
Section 14. Decision. - The Bureau and the Med-Arbiter or Regional Director, as the case
may be, shall have twenty (20) days from the date of the last hearing within which to decide
the complaint or petition. The decision shall state the facts, findings, conclusion, and reliefs
granted.
Section 15. Release of Decision. - The notice of decision shall be signed by the
Records Officer in the Bureau and by the Med-Arbiter or Hearing Officer in the Regional Office.
Within twenty (20) days from date of last hearing, the decision shall be released to the parties
personally on a date and time agreed upon during the last hearing.
Section 16. Appeal. - The decision of the Med-Arbiter and Regional Director may be appealed
to the Bureau by any of the parties within ten (10) days from receipt thereof, copy furnished
the opposing party. The decision of the Bureau Director in the exercise of his/her original
jurisdiction may be appealed to the Office of the Secretary by any party within the same period,
copy furnished the opposing party.
The appeal shall be verified under oath and shall consist of a memorandum of appeal
specifically stating the grounds relied upon by the appellant, with supporting arguments and
evidence.
Section 17. Where to file appeal. - The memorandum of appeal shall be filed in the Regional
Office or Bureau where the complaint or petition originated. Within twenty-four (24) hours from
receipt of the memorandum of appeal, the Bureau or Regional Director shall cause the
transmittal thereof together with the entire records of the case to the Office of the Secretary or
the Bureau, as the case may be.
Section 18. Finality of Decision. - Where no appeal is filed within the ten-day period, the
Bureau and Regional Director or Med-Arbiter, as the case may be, shall enter the finality of the
decision in the records of the case and cause the immediate implementation thereof.
Section 19. Period to reply. - A reply to the appeal may be filed by any party to the complaint
or petition within ten (10) days from receipt of the memorandum of appeal. The reply shall be
14
filed directly with the Bureau or the Office of the Secretary, as the case may be.
Section 20. Decision of the Bureau/Office of the Secretary. - The Bureau Director or the
Secretary, as the case may be, shall have twenty (20) days from receipt of the entire records
of the case within which to decide the appeal. The filing of the memorandum of appeal from
the decision of the Med- Arbiter or Regional Director and Bureau Director stays the
implementation of the assailed decision.
The Bureau or Office of the Secretary may call the
parties to a clarificatory hearing in aid of its appellate jurisdiction.
Section 21. Finality of Decision of Bureau/Office of the Secretary. - The decision of the
Bureau or the Office of the Secretary shall become final and executory after ten (10) days from
receipt thereof by the parties, unless a motion for its reconsideration is filed by any party therein
within the same period. Only one (1) motion for reconsideration of the decision of the Bureau
or the Office of the Secretary in the exercise of their appellate jurisdiction shall be allowed.
Section 22. Execution of decision. - The decision of the Med-Arbiter and Regional Director
shall automatically be stayed pending appeal with the Bureau. The decision of the Bureau in
the exercise of its appellate jurisdiction shall be immediately executory upon issuance of entry
of final judgment.
The decision of the Bureau in the exercise of its original jurisdiction shall automatically be
stayed pending appeal with the Office of the Secretary. The decision of the Office of the
Secretary shall be immediately executory upon issuance of entry of final judgment.
Section 23. Transmittal of records to the Regional Office/Bureau. - Within forty-eight (48)
hours from notice of receipt of decision by the parties and finality of the decision, the entire
records of the case shall be remanded to the Bureau or Regional Office of origin for
implementation. The implementation of the decision shall not be stayed unless restrained by
the appropriate court.
RULE XII
 ELECTION OF OFFICERS OF LABOR UNIONS AND WORKERS
ASSOCIATIONS
Section 1. Conduct of election of union officers; procedure in the absence of provisions
in the constitution and by-laws. - In the absence of any agreement among the members or
any provision in the constitution and by-laws of a labor union or workers' association, the
following guidelines may be adopted in the election of officers.
(a) within sixty (60) days before the expiration of the term of the incumbent officers, the
president of the labor organization shall constitute a committee on election to be composed of
at least three (3) members who are not running for any position in the election, provided that if
there are identifiable parties within the labor organization, each party shall have equal
representation in the committee;
(b) upon constitution, the members shall elect the chairman of the committee from among
themselves, and case of disagreement, the president shall designate the chairman;
(c) within
ten (10) days from its constitution, the committee shall, among others, exercise the following
powers and duties:
1) set the date, time and venue of the election;
2) prescribe the rules on the qualification and
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eligibility of candidates and voters;
3) prepare and post the voters' list and the list of qualified
candidates;
4) accredit the authorized representatives of the contending parties;
5) supervise
the actual conduct of the election and canvass the votes to ensure the sanctity of the ballot;
 Section 2. Visitorial power under Article 274. - The Regional or Bureau Director may inquire
6) keep minutes of the proceedings;
7) be the final arbiter of all election protests;
8) proclaim
the winners; and
9) prescribe such other rules as may facilitate the orderly conduct of election.
Section 2. Dispute over conduct of election of officers. - Where the terms of the officers of
a labor organization have expired and its officers failed or neglected to do so call for an election
of new officers, or where the labor organization's constitution and by-laws do not provide for
the manner by which the said election can be called or conducted and the intervention of the
Department is necessary, at least thirty percent (30%) of the members of the labor organization
may file a petition for the conduct of election of their officers with the Regional Office that issued
its certificate of registration or certificate of creation of chartered local.
In the case of federations, national or industry unions and trade union centers, the petition shall
be filed with the Bureau or the Regional Office but shall be heard and resolved by the Bureau.

This rule shall also apply where a conduct of election of officers is an alternative relief or
necessary consequence of a petition for nullification of election of officers,
impeachment/expulsion of officers, or such other petitions.
Section 3. Formal requirements and proceedings. - The formal requirements, processes
and periods of disposition of this petition stated in Rule XI shall be followed in the determination
of the merits of the petition and appeal.
Section 4. Pre-election conference and conduct of election. - The appointment of an
election officer and the procedures and periods in the conduct of the pre-election conference
and election proceedings prescribed in Rule IX shall also apply in the conduct of a pre-election
conference and election of officers in any labor organization.
Section 5. Applicability of the provisions of the labor organization's constitution and by-
laws. -
Where the conduct of election of officers is ordered by the Med-Arbiter, the Bureau or Office
of the Secretary, the rules and regulations governing the filing of candidacies and conduct of
election under the constitution and by-laws of the labor organization may be applied in the
implementation of the decision, or new and additional rules may be adopted as agreed upon
by the parties.
The entire proceedings shall be presided by the Election Officer from the Labor Relations
Division of the Regional Office or the Bureau. He/She shall act as the COMELEC referred to
in the labor organization's constitution and by-laws and obligate himself/herself to comply with
his/her mandate under the decision to be implemented and the constitution and by-laws.
RULE XIII
 ADMINISTRATION OF TRADE UNION FUNDS AND ACTIONS ARISING
THEREFROM
Section 1. Right of union to collect dues and agency fees. - The incumbent bargaining
agent shall continue to be entitled to check-off and collect dues and agency fees despite the
pendency of a representation case, other inter/intra-union disputes or related labor relations
15
disputes.
into the financial activities of any legitimate labor organization and examine their books of
accounts and other records to determine compliance with the law and the organization's
constitution and by-laws. Such examination shall be made upon the filing of a request or
complaint for the conduct of an accounts examination by any member of the labor organization,
supported by the written consent of at least twenty (20%) percent of its total membership.
Section 3. Where to file. - A request for examination of books of accounts of independent
labor unions, chartered locals and workers associations pursuant to Article 274 shall be filed
with the Regional Office that issued its certificate of registration or certificate of creation of
chartered local.
A request for examination of books of accounts of federations or national unions and trade
union centers pursuant to Article 274 shall be filed with the Bureau. Such request or complaint,
in the absence of allegations pertaining to a violation of Article 241, shall not be treated as an
intra-union dispute and the appointment of an Audit Examiner by the Regional or Bureau
Director shall not be appealable.
Section 4. Actions arising from Article 241. - Any complaint or petition with allegations of
mishandling, misappropriation or non-accounting of funds in violation of Article 241 shall be
treated as an intra-union dispute. It shall be heard and resolved by the Med-Arbiter pursuant
to the provisions of Rule XI.
Section 5. Prescription. - The complaint or petition for audit or examination of funds and book
of accounts shall prescribe within three (3) years from the date of submission of the annual
financial report to the Department or from the date the same should have been submitted as
required by law, whichever comes earlier.
Section 6. Decision. - A decision granting the conduct of audit shall include the appointment
of the Audit Examiner and a directive upon him/her to submit his/her report and
recommendations within ten (10) days from termination of audit. The decision granting the
conduct of audit is interlocutory and shall not be appealable. The decision denying or
dismissing the complaint or petition for audit may be appealed within ten (10) days from receipt
thereof pursuant to the provisions prescribed in Rule XI.
Section 7. Pre-audit conference. - Within twenty-four (24) hours from receipt of the decision
granting the conduct of audit, the Regional Director shall summon the parties to a pre-audit
conference conducted by the Audit Examiner to determine and obtain the following:
(a)
sources of funds covered by the audit;
(b) the banks and financial institutions where the labor
organization maintains its account;
(c) union books of accounts and financial statements;
(d)
disbursement vouchers with supporting receipts, invoices and other documents;
(e) income
and revenue receipts;
(f) cash books;
(g) minutes of general membership meeting and board
meetings;
(h) other relevant matters and documents.
The first pre-audit conference shall be
scheduled within ten (10) days from receipt by the Audit Examiner of the decision granting the
conduct of an audit.
Section 8. Issuance of subpoena. - The Regional Director may compel any party to appear
or bring the required financial documents in a conference or hearing through the issuance of a
subpoena ad testificandum or subpoena duces tecum. He/She may also require the employer
concerned to issue certifications of union dues and other assessments remitted to the union
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during the period of audit.
Section 9. Conduct of audit examination. - Where book of accounts are submitted by the
parties, the Audit Examiner shall:
(a) examine the transactions reflected in the disbursement
vouchers;
(b) determine the validity of the supporting documents attached to the vouchers
consistent with the union's constitution and by-laws, relevant resolutions of the union and the
Labor Code;
(c) trace recording and posting in the disbursement book;
(d) record observations or findings
of all financial transactions.
Where no book of accounts are maintained by the officers of the
labor organization, the Audit Examiner shall:
(a) examine the transactions reflected in the
disbursement vouchers;
(b) determine the validity of the supporting documents attached to the
vouchers consistent with the labor organization's constitution and by-laws, relevant board
resolutions, and the Labor Code;
(c) prepare working papers or worksheet/s;
(d) record and
post all financial transactions reflected in the cash vouchers in the working papers or
worksheet/s; and
(e) record observations or findings of all financial transactions.
The Audit Examiner shall conduct an inventory of all physical assets acquired by the labor
organization, if any, and on the basis of his/her findings prepare his/her audited financial report
or statement reflecting the true and correct financial accounts and balances of the labor
organization with relevant annexes attached.
Section 10. Period of audit. - The Audit Examiner shall have sixty (60) days from the date of
first pre- audit conference within which to complete the conduct of audit, unless the volume of
financial records, the period covered by the audit and other circumstances warrant the
extension thereof. In such a case, the Audit Examiner shall notify the Med-Arbiter or the Bureau
Director, as the case may be, of such fact at least ten (10) days before the expiration of the
sixty (60) day period.
Section 11. Audit Report. - The Audit Examiner shall make a report of his/her findings to the
parties involved and the same shall include the following:
(a) name of the labor organization;

(b) name of complainant(s) or petitioner(s) and respondent(s)
(c) name of officers of the labor organization during the period covered by the audit report; (d)
scope of the audit;
(e) list of documents examined;
(f) audit methods and procedures adopted;
and
(g) findings and recommendations.
Section 12. Completion of audit. - A copy of the audit
report shall be forwarded by the Audit Examiner to the Med-Arbiter or the Bureau Director, as
the case may be, within ten (10) days from termination of the audit, together with the entire
records of the case and all documents relative to the conduct of the audit.
Section 13. Decision after audit. - The Med-Arbiter or the Bureau Director shall render a
decision within twenty (20) days from receipt of the audit report. All issues raised by the parties
during the conduct of the audit shall be resolved by the Med-Arbiter. The decision shall be
released in the same manner prescribed in Section 15, Rule XI.
When warranted, the Med-Arbiter or Bureau Director shall order the restitution of union funds
by the responsible officer(s) in the same decision.
Section 14. Appeal. - Appeal from the decision of the Med-Arbiter denying the conduct of audit
16
and from the results of the audit may be filed by any of the parties with the Bureau. Decisions
rendered by the Bureau after the conduct of audit in the exercise of its original jurisdiction may
be appealed to the Office of the Secretary. Both shall be resolved in accordance with the
provisions of Section 16, Rule XI.
Section 15. Period of inquiry or examination. - No complaint for inquiry or examination of
the financial and book of accounts as well as other records of any legitimate labor organization
shall be entertained during the sixty (60) day freedom period or within thirty (30) days
immediately preceding the date of election of union officers. Any complaint or petition so filed
shall be dismissed.
RULE XVIII 
CENTRAL REGISTRY OF LABOR ORGANIZATIONS AND COLLECTIVE
BARGAINING AGREEMENTS
Section 1. Forms for registration. - Consistent with the policy of the State to promote
unionism, the Bureau shall devise or prescribe such forms as are necessary to facilitate the
process of registration of labor organizations and collective bargaining agreements or of
compliance with all documentary or reporting requirements prescribed in these Rules.
Section 2. Transmittal of records; central registry. - The Labor Relations Division of the
Regional Offices shall, within forty-eight (48) hours from issuance of a certificate of creation of
chartered locals or certificate of registration of labor organizations and collective bargaining,
transmit to the Bureau a copy of such certificates accompanied by a copy of the documents
supporting registration.
The Labor Relations Division of the Regional Office shall also transmit to the Bureau a copy of
every final decision canceling or revoking the legitimate status of a labor organization or
collective bargaining agreement, indicating therein the date when the decision became final.

In cases of chartering and affiliation or compliance with the reporting requirements under Rule
V, the Regional Office shall transmit within two (2) days from receipt thereof the original set of
documents to the Bureau, retaining one set of documents for its file.
RULE XX
 LABOR EDUCATION AND RESEARCH
Section 1. Labor education of workers and employees. - The Department shall develop,
promote and implement appropriate labor education and research programs on the rights and
responsibilities of workers and employers.
It shall be the duty of every legitimate labor
organization to implement a labor education program for its members on their rights and
obligations as unionists and as employees.
Section 2. Mandatory conduct of seminars. - Subject to the provisions of Article 241, it shall
be mandatory for every legitimate labor organization to conduct seminars and similar activities
on existing labor laws, collective agreements, company rules and regulations and other
relevant matters. The union seminars and similar activities may be conducted independently
of or in cooperation with the Department and other labor education institutions.
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 CANCELLATION OF REGISTRATION
Section 3. Special fund for labor education and research. - Every legitimate labor
organization shall, for the above purpose, maintain a special fund for labor education and
research. Existing strike funds may, in whole or in part, be transformed into labor education • LABOR CODE ARTS. 245, 246, 247
and research funds. The labor organization may also periodically assess and collect
reasonable amounts from its members for such funds.
ARTICLE 245. [238] Cancellation of Registration. — The certificate of registration of any
legitimate labor organization, whether national or local, may be cancelled by the Bureau, after
due hearing, only on the grounds specified in Article 239 hereof.|
Local Unions and Federations

CASES ASSIGNED ARTICLE 246. [238-A] Effect of a Petition for Cancellation of Registration. — A petition for
20. MSMG-UWP v. Ramos cancellation of union registration shall not suspend the proceedings for certification election
21. Philippine Skylanders v. NLRC nor shall it prevent the filing of a petition for certification election.

In case of cancellation, nothing herein shall restrict the right of the union to seek just and
equitable remedies in the appropriate courts.

ARTICLE 247. [239] Grounds for Cancellation of Union Registration. — The following may
constitute grounds for cancellation of union registration:

(a) Misrepresentation, false statement or fraud in connection with the adoption or ratification
of the constitution and by-laws or amendments thereto, the minutes of ratification, and the
list of members who took part in the ratification;

(b) Misrepresentation, false statements or fraud in connection with the election of officers,
minutes of the election of officers, and the list of voters;

(c) Voluntary dissolution by the members.

• LABOR CODE BOOK V RULE VIII

Section 1. Who may file. - Any legitimate labor organization may file a petition for
certification election.

When requested to bargain collectively, an employer may file a petition for certification
election with the Regional Office. If there is no existing registered collective bargaining
agreement in the bargaining unit, the Regional Office shall, after hearing, order the conduct
of a certification election.

Section 2. Where to file. - A petition for certification election shall be filed with the Regional
Office which issued the petitioning union's certificate of registration/certificate of creation of
chartered local.

The petition shall be heard and resolved by the Med-Arbiter.

Where two or more petitions involving the same bargaining unit are filed in one Regional
Office, the same shall be automatically consolidated with the Med-Arbiter who first acquired
jurisdiction. Where the petitions are filed in different Regional Offices, the Regional Office in
which the petition was first filed shall exclude all others; in which case, the latter shall indorse
the petition to the former for consolidation.

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Section 3. When to file. - A petition for certification election may be filed anytime, except:
(a) when a fact of voluntary recognition has been entered or a valid certification, consent
or run-off election has been conducted within the bargaining unit within one (1) year prior
to the filing of the petition for certification election. Where an appeal has been filed from
the order of the Med-Arbiter certifying the results of the election, the running of the one
year period shall be suspended until the decision on the appeal has become final and
executory;
(b) when the duly certified union has commenced and sustained negotiations in good faith
with the employer in accordance with Article 250 of the Labor Code within the one year
period referred to in the immediately preceding paragraph;
(c) when a bargaining deadlock to which an incumbent or certified bargaining agent is a
party had been submitted to conciliation or arbitration or had become the subject of a valid
notice of strike or lockout;
(d) when a collective bargaining agreement between the employer and a duly recognized
or certified bargaining agent has been registered in accordance with Article 231 of the
Labor Code. Where such collective bargaining agreement is registered, the petition may
be filed only within sixty (60) days prior to its expiry.
Section 4. Form and contents of petition. - The petition shall be in writing, verified under
oath by the president of petitioning labor organization. Where the petition is filed by a
federation or national union, it shall verified under oath by the president or its duly authorized
representative. The petition shall contain the following:
(a) the name of petitioner, its address, and affiliation if appropriate, the date and number
of its certificate of registration. If the petition is filed by a federation or national union, the
date and number of the certificate of registration or certificate of creation of chartered
local;
(b) the name, address and nature of employer's business;
(c) the description of the bargaining unit;
(d) the approximate number of employees in the bargaining unit;
(e) the names and addresses of other legitimate labor unions in the bargaining unit;
(f) a statement indicating any of the following circumstances:
1) that the bargaining unit is unorganized or that there is no registered collective
bargaining agreement covering the employees in the bargaining unit;
2) if there exists a duly registered collective bargaining agreement, that the petition is
filed within the sixty-day freedom period of such agreement; or
18
3) if another union had been previously recognized voluntarily or certified in a valid
certification, consent or run-off election, that the petition is filed outside the one-year
period from entry of voluntary recognition or conduct of certification or run-off election
and no appeal is pending thereon.
(g) in an organized establishment, the signature of at least twenty-five percent (25%) of
all employees in the appropriate bargaining unit shall be attached to the petition at the
time of its filing; and
(h) other relevant facts.
Section 5. Raffle of the case. - Upon the filing of the petition, the Regional Director or any
of his/her authorized representative shall allow the party filing the petition to personally
determine the Med-Arbiter assigned to the case by means of a raffle. Where there is only
one Med-Arbiter in the region, the raffle shall be dispensed with and the petition shall be
assigned to him/her.
Section 6. Notice of preliminary conference. - Immediately after the raffle of the case or
receipt of the petition, the same shall be transmitted to the Med-Arbiter, who shall in the same
instance prepare and serve upon the petitioning party a notice for preliminary conference.
The first preliminary conference shall be scheduled within ten (10) days from receipt of the
petition.
Within three (3) days from receipt of the petition, the Med-Arbiter shall cause the service of
notice for preliminary conference upon the employer and incumbent bargaining agent in the
subject bargaining unit directing them to appear before him/her on a date, time and place
specified. A copy of the notice of preliminary conference and petition for certification election
shall be posted in at least two conspicuous places in the establishment.
Section 7. Forced Intervenor. - The incumbent bargaining agent shall automatically be one
of the choices in the certification election as forced intervenor.
Section 8. Motion for Intervention. - When a petition for certification election was filed in
an organized establishment, any legitimate labor union other than the incumbent bargaining
agent operating within the bargaining unit may file a motion for intervention with the Med-
Arbiter during the freedom period of the collective bargaining agreement. The form and
contents of the motion shall be the same as that of a petition for certification election.
In an unorganized establishment, the motion shall be filed at any time prior to the decision of
the Med-Arbiter. The form and contents of the motion shall likewise be the same as that of a
petition for certification election. The motion for intervention shall be resolved in the same
decision issued in the petition for certification election.
Section 9. Preliminary Conference; Hearing. - The Med-Arbiter shall conduct a preliminary
conference and hearing within ten (10) days from receipt of the petition to determine the
following:
(a) the bargaining unit to be represented;
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 (b) contending labor unions;
(c) possibility of a consent election;
(d) existence of any of the bars to certification election under Section 3 of this Rule; and
(e) such other matters as may be relevant for the final disposition of the case.
Section 10. Consent Election; Agreement. - In case the contending unions agree to a
consent election, the Med-Arbiter shall not issue a formal order calling for the conduct of
certification election, but shall enter the fact of the agreement in the minutes of the hearing.
The minutes of the hearing shall be signed by the parties and attested to by the Med-Arbiter.
The Med-Arbiter shall, immediately thereafter, forward the records of the petition to the
Regional Director or his/her authorized representative for the determination of the Election
Officer by the contending unions through raffle. The first pre-election conference shall be
scheduled within ten (10) days from the date of entry of agreement to conduct consent
election.
Section 11. Number of Hearings; Pleadings. - If the contending unions fail to agree to a
consent election during the preliminary conference, the Med-Arbiter may conduct as many
hearings as he/she may deem necessary, but in no case shall the conduct thereof exceed
fifteen (15) days from the date of the scheduled preliminary conference/ hearing, after which
time the petition shall be considered submitted for decision. The Med-Arbiter shall have
control of the proceedings. Postponements or continuances shall be discouraged.
Within the same 15-day period within which the petition is heard, the contending labor unions
may file such pleadings as they may deem necessary for the immediate resolution of the
petition. Extensions of time shall not be entertained. All motions shall be resolved by the Med-
Arbiter in the same order or decision granting or denying the petition.
Section 12. Failure to appear despite notice. - The failure of any party to appear in the
hearing(s) when notified or to file its pleadings shall be deemed a waiver of its right to be
heard. The Med-Arbiter, however, when agreed upon by the parties for meritorious reasons
may allow the cancellation of scheduled hearing(s). The cancellation of any scheduled
hearing(s) shall not be used as a basis for extending the 15-day period within which to
terminate the same.
Section 13. Order/Decision on the petition. - Within ten (10) days from the date of the last
hearing, the Med-Arbiter shall issue a formal order granting the petition or a decision denying
the same. In organized establishments, however, no order or decision shall be issued by the
Med-Arbiter during the freedom period.
The order granting the conduct of a certification election shall state the following:
(a) the name of the employer or establishment;
(b) the description of the bargaining unit;
19
(c) a statement that none of the grounds for dismissal enumerated in the succeeding
paragraph exists;
(d) the names of contending labor unions which shall appear as follows: petitioner union/s
in the order in which their petitions were filed, forced intervenor, and no union; and
(e) a directive upon the employer and the contending union(s) to submit within ten (10)
days from receipt of the order, the certified list of employees in the bargaining unit, or
where necessary, the payrolls covering the members of the bargaining unit for the last
three (3) months prior to the issuance of the order.
Section 14. Denial of the petition; Grounds. - The Med-Arbiter may dismiss the petition on
any of the following grounds:
(a) the petitioner is not listed in the Department's registry of legitimate labor unions or that
its legal personality has been revoked or cancelled with finality in accordance with Rule
XIV of these Rules;
(b) the petition was filed before or after the freedom period of a duly registered collective
bargaining agreement; provided that the sixty-day period based on the original collective
bargaining agreement shall not be affected by any amendment, extension or renewal of
the collective bargaining agreement;
(c) the petition was filed within one (1) year from entry of voluntary recognition or a valid
certification, consent or run-off election and no appeal on the results of the certification,
consent or run-off election is pending;
(d) a duly certified union has commenced and sustained negotiations with the employer
in accordance with Article 250 of the Labor Code within the one-year period referred to in
Section 14.c of this Rule, or there exists a bargaining deadlock which had been submitted
to conciliation or arbitration or had become the subject of a valid notice of strike or lockout
to which an incumbent or certified bargaining agent is a party;
(e) in case of an organized establishment, failure to submit the twenty-five percent (25%)
support requirement for the filing of the petition for certification election.
Section 15. Prohibited grounds for the denial/suspension of the petition. - All issues
pertaining to the existence of employer-employee relationship, eligibility or mixture in union
membership raised before the Med-Arbiter during the hearing(s) and in the pleadings shall
be resolved in the same order or decision granting or denying the petition for certification
election. Any question pertaining to the validity of petitioning union's certificate of registration
or its legal personality as a labor organization, validity of registration and execution of
collective bargaining agreements shall be heard and resolved by the Regional Director in an
independent petition for cancellation of its registration and not by the Med-Arbiter in the
petition for certification election, unless the petitioning union is not found in the Department's
roster of legitimate labor organizations or an existing collective bargaining agreement is
unregistered with the Department.
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Section 16. Release of Order/Decision within ten (10) days from the last hearing, -.
- The Med-Arbiter shall release his/her order or decision granting or denying the petition
personally to the parties on an agreed date and time.
Section 17. Appeal. - The order granting the conduct of a certification election in an
unorganized establishment shall not be subject to appeal. Any issue arising therefrom may
be raised by means of protest on the conduct and results of the certification election.
The order granting the conduct of a certification election in an organized establishment and
the decision dismissing or denying the petition, whether in an organized or unorganized
establishment, may be appealed to the Office of the Secretary within ten (10) days from
receipt thereof.
The appeal shall be verified under oath and shall consist of a memorandum of appeal,
specifically stating the grounds relied upon by the appellant with the supporting arguments
and evidence.
Section 18. Where to file appeal. - The memorandum of appeal shall be filed in the Regional
Office where the petition originated, copy furnished the contending unions and the employer,
as the case may be. Within twenty-four (24) hours from receipt of the appeal, the Regional
Director shall cause the transmittal thereof together with the entire records of the case to the
Office of the Secretary.
Section 19. Finality of Order/Decision. - Where no appeal is filed within the ten-day period,
the Med-Arbiter shall enter the finality of the order/decision in the records of the case and
cause the transmittal of the records of the petition to the Regional Director.
Section 20. Period to Reply. - A reply to the appeal may be filed by any party to the petition
within ten (10) days from receipt of the memorandum of appeal. The reply shall be filed
directly with the Office of the Secretary.
Section 21. Decision of the Secretary. - The Secretary shall have fifteen (15) days from
receipt of the entire records of the petition within which to decide the appeal. The filing of the
memorandum of appeal from the order or decision of the Med-Arbiter stays the holding of
any certification election.
The decision of the Secretary shall become final and executory after ten (10) days from
receipt thereof by the parties. No motion for reconsideration of the decision shall be
entertained.
Section 22. Transmittal of records to the Regional Office. - Within forty-eight (48) hours
from notice of receipt of decision by the parties and finality of the decision, the entire records
of the case shall be remanded to the Regional Office of origin for implementation.
Implementation of the decision shall not be stayed unless restrained by the appropriate court.
Section 23. Effects of consent election. - Where a petition for certification election had
been filed, and upon the intercession of the Med-Arbiter, the parties agree to hold a consent
election, the results thereof shall constitute a bar to the holding of a certification election for
one (1) year from the holding of such consent election. Where an appeal has been filed from
20
the results of the consent election, the running of the one-year period shall be suspended
until the decision on appeal has become final and executory.
Where no petition for certification election was filed but the parties themselves agreed to hold
a consent election with the intercession of the Regional Office, the results thereof shall
constitute a bar to another petition for certification election.
Section 24. Effects of early agreements. - The representation case shall not be adversely
affected by a collective bargaining agreement registered before or during the last sixty (60)
days of a subsisting agreement or during the pendency of the representation case.
Section 25. Non-availability of Med-Arbiter. - Where there is no Med-Arbiter available in
the Regional Office by reason of vacancy, prolonged absence, or excessive workload as
determined by the Regional Director, he/she shall transmit the entire records of the case to
the Bureau, which shall within forty-eight (48) hours from receipt assign the case to any Med-
Arbiter from any of the Regional Offices or from the Bureau.
• OMNIBUS RULES, BOOK V, RULE XIV-XV, AS AMENDED BY D.O. 40-03
RULE XIV CANCELLATION OF REGISTRATION OF LABOR ORGANIZATIONS
Section 1. Where to file. - Subject to the requirements of notice and due process, the
registration of any legitimate independent labor union, chartered local and workers'
association may be cancelled by the Regional Director, or in the case of federations, national
or industry unions and trade union centers, by the Bureau Director, upon the filing of an
independent complaint or petition for cancellation.
Section 2. Who may file. - Any party-in-interest may commence a petition for cancellation
of registration, except in actions involving violations of Article 241, which can only be
commenced by members of the labor organization concerned.
Section 3. Grounds for cancellation. - The following shall constitute grounds for
cancellation of registration of labor organizations:
(a) misrepresentation, false statement or fraud in connection with the adoption or
ratification of the constitution and by-laws or amendments thereto, the minutes of
ratification, the list of members who took part in the ratification of the constitution and by-
laws or amendments thereto, the minutes of ratification, the list of members who took part
in the ratification;
(b) failure to submit the documents mentioned in the preceding paragraph within thirty
(30) days from adoption or ratification of the constitution and by-laws or amendments
thereto;
(c) misrepresentation, false statements or fraud in connection with the election of officers,
minutes of the election of officers, the list of voters, failure to submit these documents
together with the list of the newly elected or appointed officers and their postal address
within thirty (30) days from election;
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 (d) failure to submit the annual financial report to the Bureau within thirty (30) days after
the close of every fiscal year and misrepresentation, false entries or fraud in the
preparation of the financial report;
(e) acting as a labor contractor or engaging in the "cabo" system, or otherwise engaging
in any activity prohibited by law;
(f) entering into collective bargaining agreements which provide for terms and conditions
of employment below minimum standards established by law;
(g) commission of any of the acts enumerated under Article 241 of the Labor Code;
provided that no petition for cancellation based on this ground may be granted unless
supported by at least thirty (30%) percent of all the members of the respondent labor
organization;
(h) asking for or accepting attorney's fees or negotiation fees from the employer;
(i) other than for mandatory activities under the Labor Code, checking off special
assessments or any other fees without duly signed individual written authorizations of the
members;
(j) failure to submit list of individual members to the Bureau once a year or whenever
required by the Bureau;
(k) failure to comply with the requirements of registration prescribed under Rules III and
IV.
Section 4. Action on the petition. - The petition shall be resolved by the Regional Director
in accordance with Rule XI, unless the petition is based on paragraphs (d) and (j) of the
foregoing section or non-compliance with the labor organization's reportorial obligations, in
which case the petition shall be acted upon pursuant to the following Rule.
CASES ASSIGNED:
RULE XV CANCELLATION OF REGISTRATION OF LABOR ORGANIZATIONS
DUE TO NON-COMPLIANCE WITH THE REPORTORIAL REQUIREMENTS
Section 1. When proper. - Where a registered labor organization in the private sector failed
to submit the reports required under Rule V for five (5) consecutive years despite notices for
compliance sent by the Labor Relations Division or the Bureau, the latter may cause the
institution of the administrative process for cancellation of its registration, upon its own
initiative or upon complaint filed by any party-in-interest.
BARGAINING UNIT
Section 2. Procedure. - The Labor Relations Division of the Regional Office shall make a
report of the labor organization's non-compliance and submit the same to the Bureau for
verification with its records. The Bureau shall send by registered mail with return card to the
labor organization concerned, a notice for compliance indicating the documents it failed to
submit and the corresponding period in which they were required, with notice to comply with
21
the said reportorial requirements and to submit proof thereof to the Bureau within ten (10)
days from receipt thereof.
Where no response is received by the Bureau within thirty (30) days from the release of the
first notice, another notice for compliance shall be made by the Bureau, with warning that
failure on its part to comply with the reportorial requirements within the time specified shall
cause the continuation of the proceedings for the administrative cancellation of its
registration.
Section 3. Publication of notice of cancellation of registration. - Where no response is
again received by the Bureau within thirty (30) days from release of the second notice, the
Bureau shall cause the publication of the notice of cancellation of registration of the labor
organization in two (2) newspapers of general circulation. The Bureau may conduct an
investigation within the employer's premises and at the labor organization's last known
address to verify the latter's existence.
Section 4. Cancellation of registration. - Where no response is received by the Bureau
within thirty (30) days from date of publication, or where the Bureau has verified the
dissolution of the labor organization, it shall order the cancellation of registration of the labor
organization and cause its de-listing from the roster of legitimate labor organizations.
Section 5. Conditions for administrative cancellation of certificate of registration. - No
registration of labor organization shall be cancelled administratively by the Bureau due to
non-compliance with the reportorial requirements unless:
(a) non-compliance is for a continuous period of five (5) years;
(b) the procedures laid down in this Rule were complied with; and
(c) the labor organization concerned has not responded to any of the notices sent by the
Bureau, or its notices were returned unclaimed.
22. Mariwasa v. Sec. of DOLE
23. Samahan ng Manggagawa sa SAMMA (SAMMA-LIKHA) v. SAMMA Corporation
24. Republic of the Philippines v. Kawashima Textile
25. Legend International Resorts Limited v. Kilusang Manggagawa ng Legenda
26. Heritage Hotel Manila v. National Union of Workers (NUWHRAIN-HHMSC)
27. DHL Phils. United Rank and File Association v. Buklod ng Manggagawa
28. Asian Institute of Management v. Asian Institute of Management Faculty Association
29. De Ocampo Memorial Schools, Inc. v. Bigkis Manggagawa
• Omnibus Rules, Book V, Rule I, Sec. 1 (d,t), as amended by D.O. 40-03
SECTION 1. Definition of Terms.
(d) “Bargaining Unit” refers to a group of employees sharing mutual interests within a given
employer unit, comprised of all or less than all of the entire body of employees in the employer
unit or any specific occupational or geographical grouping within such employer unit.
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 (t) “Exclusive Bargaining Representative” refers to a legitimate labor union duly recognized or
certified as the sole and exclusive bargaining representative or agent of all the employees in a
bargaining unit.
CASES ASSIGNED
1. San Miguel Corp. v. Laguesma
2. University of the Philippines v. Ferrer-Calleja
3. Golden Farms v. Secretary
4. Mechanical Department Labor Union sa PNR v. CIR
5. Philtranco Services Enterprises v. BLR
6. Philippine Scout Veterans Security and Investigation Agency v. Secretary
7. Erson Ang Lee Doing Business as Super Lamination v. SMSLS-NAFLU-
KMU
8. International School Alliance of Educators v. Quisumbing
9. De La Salle v. De La Salle University Employees’ Association
10. San Miguel Foods v. San Miguel Corp. Supervisors and Exempt Union
11. Lepanto Consolidated Mining v. The Lepanto Capataz Union
12. Fulache vs. ABS-CBN Broadcasting Corporation, G.R. 183810
13. Holy Child Catholic School v. HCCS-TELU-PIGLAS
14. Coca-Cola Bottlers Philippines, Inc. vs. Ilocos Professional and Technical
Employees Union (IPTEU)
BARGAINING AGENT & CERTIFICATION ELECTION PROCEEDINGS
• LABOR CODE ARTS. 267-272
ARTICLE 267. [255] Exclusive Bargaining Representation and Workers' Participation in Policy
and Decision-Making. 210 — The labor organization designated or selected by the majority of
the employees in an appropriate collective bargaining unit shall be the exclusive representative
of the employees in such unit for the purpose of collective bargaining. However, an individual
employee or group of employees shall have the right at any time to present grievances to their
employer.
Any provision of law to the contrary notwithstanding, workers shall have the right, subject to
such rules and regulations as the Secretary of Labor and Employment may promulgate, to
participate in policy and decision-making processes of the establishment where they are
employed insofar as said processes will directly affect their rights, benefits and welfare. For
this purpose, workers and employers may form labor-management councils: Provided, That
the representatives of the workers in such labor-management councils shall be elected by at
least the majority of all employees in said establishment.
ARTICLE 268. [256] Representation Issue in Organized Establishments. — In organized
establishments, when a verified petition questioning the majority status of the incumbent
bargaining agent is filed by any legitimate labor organization including a national union or
federation which has already issued a charter certificate to its local chapter participating in the
certification election or a local chapter which has been issued a charter certificate by the
national union or federation before the Department of Labor and Employment within the sixty
(60)-day period before the expiration of the collective bargaining agreement, the Med-Arbiter
shall automatically order an election by secret ballot when the verified petition is supported by
the written consent of at least twenty-five percent (25%) of all the employees in the bargaining
unit to ascertain the will of the employees in the appropriate bargaining unit. To have a valid
22
election, at least a majority of all eligible voters in the unit must have cast their votes. The labor
union receiving the majority of the valid votes cast shall be certified as the exclusive bargaining
agent of all the workers in the unit. When an election which provides for three or more choices
results in no choice receiving a majority of the valid votes cast, a run-off election shall be
conducted between the labor unions receiving the two highest number of votes: Provided, That
the total number of votes for all contending unions is at least fifty percent (50%) of the number
of votes cast. In cases where the petition was filed by a national union or federation, it shall
not be required to disclose the names of the local chapter's officers and members.
At the expiration of the freedom period, the employer shall continue to recognize the majority
status of the incumbent bargaining agent where no petition for certification election is filed.
ARTICLE 269. [257] Petitions in Unorganized Establishments. — In any establishment where
there is no certified bargaining agent, a certification election shall automatically be conducted
by the Med-Arbiter upon the filing of a petition by any legitimate labor organization, including a
national union or federation which has already issued a charter certificate to its local/chapter
participating in the certification election or a local/chapter which has been issued a charter
certificate by the national union or federation. In cases where the petition was filed by a national
union or federation, it shall not be required to disclose the names of the local chapter's officers
and members.
ARTICLE 270. [258] When an Employer May File Petition. — When requested to bargain
collectively, an employer may petition the Bureau for an election. If there is no existing certified
collective bargaining agreement in the unit, the Bureau shall, after hearing, order a certification
election.
All certification cases shall be decided within twenty (20) working days.
The Bureau shall conduct a certification election within twenty (20) days in accordance with
the rules and regulations prescribed by the Secretary of Labor.
ARTICLE 271. [258-A] Employer as Bystander. — In all cases, whether the petition for
certification election is filed by an employer or a legitimate labor organization, the employer
shall not be considered a party thereto with a concomitant right to oppose a petition for
certification election. The employer's participation in such proceedings shall be limited to: (1)
being notified or informed of petitions of such nature; and (2) submitting the list of employees
during the pre-election conference should the Med-Arbiter act favorably on the petition.
ARTICLE 272. [259] Appeal from Certification Election Orders. — Any party to an election may
appeal the order or results of the election as determined by the Med-Arbiter directly to the
Secretary of Labor and Employment on the ground that the rules and regulations or parts
thereof established by the Secretary of Labor and Employment for the conduct of the election
have been violated. Such appeal shall be decided within fifteen (15) calendar days.
• OMNIBUS RULES, BOOK V, RULE I, SEC. 1 (D, H, O, P, Q, T, LL, BBB, A, TT, WW), AS AMENDED
BY D.O. 40, D.O 40-F-03, SERIES OF 2008, AND FURTHER AMENDED BY D.O. 40-I-15,
SERIES OF 2015
Book V: Labor Relations
Rule 1 – Definition of Terms
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Section 1. Definition of terms. –
(d) "Bargaining Unit" refers to a group of employees sharing mutual interests within a given
employer unit, comprised of all or less than all of the entire body of employees in the employer
unit or any specific occupational or geographical grouping within such employer unit.
(g) "Cancellation Proceedings" refer to the legal process leading to the revocation of the
legitimate status of a union or workers' association.
(j) "Collective Bargaining Agreement" or "CBA" refers to the contract between a legitimate labor
union and the employer concerning wages, hours of work, and all other terms and conditions
of employment in a bargaining unit.
(o) "Election Officer" refers to an officer of the Bureau or Labor Relations Division in the
Regional Office authorized to conduct certification elections, election of union officers and other
forms of elections and referenda in accordance with Rule XII, Sections 2-5 of these Rules.
(p) "Election Proceedings" refer to the period during a certification election, consent or run-off
election and election of union officers, starting from the opening to the closing of the polls,
including the counting, tabulation and consolidation of votes, but excluding the period for the
final determination of the challenged votes and the canvass thereof.
(q) "Eligible Voter" refers to a voter belonging to the appropriate bargaining unit that is the
subject of a petition for certification election.
(t) "Exclusive Bargaining Representative" refers to a legitimate labor union duly recognized or
certified as the sole and exclusive bargaining representative or agent of all the employees in a
bargaining unit.
(ll) "Organized Establishment" refers to an enterprise where there exists a recognized or
certified sole and exclusive bargaining agent.
(ss) "Run-off Election" refers to an election between the labor unions receiving the two (2)
highest number of votes in a certification or consent election with three (3) or more choices,
where such a certified or consent results in none of the three (3) or more choices receiving the
majority of the valid votes cast; provided that the total number of votes for all contending unions
is at least fifty percent (50%) of the number of votes cast.
(bbb) "Voluntary Recognition" refers to the process by which a legitimate labor union is
recognized by the employer as the exclusive bargaining representative or agent in a bargaining
unit, reported with the Regional Office in accordance with Rule VII, Section 2 of these Rules.
(a) “Abstention” refers to a blank or unfilled ballot validly cast by an eligible voter. It is not
considered as a negative vote. However, it shall be considered in the counting for purposes of
determining a valid election.
(tt) "Re-run election” refers to an election conducted to break a tie between contending unions,
including between “no union” and one of the unions. It shall likewise refer to an election
conducted after a failure of election has been declared by the election officer and/or affirmed
by the mediator-arbiter.
(ww) "Spoiled ballot” refers to a ballot that is torn, defaced, or contains marking which can lead
another to clearly identify the voter who casts such vote.
23
• RULES VI-X, AS AMENDED BY D.O. 40, D.O 40-F-03, SERIES OF 2008, AND FURTHER
AMENDED BY D.O. 40-I-15, SERIES OF 2015
RULE VI - Determination of Representation Status
SECTION 1. Policy. — It is the policy of the State to promote free trade unionism through
expeditious procedures governing the choice of an exclusive bargaining agent. The
determination of such exclusive bargaining agent is a non-litigious proceeding and, as far as
practicable, shall be free from technicalities of law and procedure, provided only that in every
case, the exclusive bargaining agent enjoys the majority support of all the employees in the
bargaining unit.
SECTION 2. Determination of Representation Status; Modes. — The determination of an
exclusive bargaining agent shall be through voluntary recognition in cases where there is only
one legitimate labor organization operating within the bargaining unit, or through certification,
run-off or consent election as provided in these Rules.
RULE VII - Request for Sole and Exclusive Bargaining Agent (SEBA) Certification
Section 1. Where to file. — Any legitimate labor organization may file a request for SEBA
certification in the regional office which issued its certificate of registration or certificate of
creation of chartered local.
Section 2. Requirements for request of SEBA certification. — The request for certification shall
indicate:
a. the name and address of the requesting legitimate labor organization;
b. the name and address of the company where it operates;
c. the bargaining unit sought to be represented;
d. the approximate number of employees in the bargaining unit; and
e. the statement of the existence/non-existence of other labor organization/CBA.
the certificate of registration as duly certified by the president of the requesting union or
certificate of creation of chartered local as duly certified by the president of the federation of
the local shall be attached to the request.
Section 3. Action on the request. — Within one (1) day from the submission of the request, the
regional director shall:
a. determine whether the request is compliant with the preceding section and whether the
bargaining unit sought to be represented is organized or not; and
b. request a copy of the payroll for purposes of SEBA certification pursuant to section 4 of this
rule.
if he/she finds it deficient, he/she shall advise the requesting union or local to comply within
ten (10) days from notice. failure to comply within the prescribed period shall be deemed
withdrawal of the request for SEBA certification.
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Section 4. Request for certification in unorganized establishment with only one (1) legitimate
labor organization; validation proceedings. — If the regional director finds the establishment
unorganized with only one legitimate labor organization, he/she shall call a conference within
five (5) work days for the submission of the following:
a. the names of employees in the covered bargaining unit who signify their support for the
certification, provided that said employees comprise at least majority of the number of
employees in the covered bargaining unit; and
b. certification under oath by the president of the requesting union or local that all documents
submitted are true and correct based on his/her personal knowledge.
the submission shall be presumed to be true and correct unless contested under oath by any
member of the bargaining unit during the validation conference. for this purpose, the employer
or any representative of the employer shall not be deemed a party-in-interest but only as a by-
stander to the process of certification.
if the requesting union or local fails to complete the requirements for SEBA certification during
the conference, the request for SEBA certification shall be referred to the election officer for
the conduct of election pursuant to Rule IX of these rules.
Section 4.1. Action on the submission. — If the regional director finds the requirements
complete, he/she shall issue during the conference a certification as sole and exclusive
bargaining agent enjoying the rights and privileges of an exclusive bargaining agent of all the
employees in the covered bargaining unit.
The regional director shall cause the posting of the SEBA certification for fifteen (15)
consecutive days in at least two (2) conspicuous places in the establishment or covered
bargaining unit.
Section 4.2. Effect of certification. — Upon the issuance of the certification as sole and
exclusive bargaining agent, the certified union or local shall enjoy all the rights and privileges
of an exclusive bargaining agent of all the employees in the covered bargaining unit.
The certification shall bar the filing of a petition for certification election by any labor
organization for a period of one (1) year from the date of its issuance. upon expiration of this
one-year period, any legitimate labor organization may file a petition for certification election in
the same bargaining unit represented by the certified labor organization, unless a collective
bargaining agreement between the employer and the certified labor organization was executed
and registered with the regional office in accordance with Rule XVII of this rules.
Section 5. Request for certification in unorganized establishment with more than one (1)
legitimate labor organization. — If the regional director finds the establishment unorganized
with more than one legitimate labor organization, he/she shall refer the same to the election
officer for the conduct of certification election.
The certification election shall be conducted in accordance with rule ix of this rules.
Section 6. Request for certification in organized establishment. — If the regional director finds
the establishment organized, he/she shall refer the same to the mediator-arbiter for the
determination of the propriety of conducting a certification election in accordance with Rules
VIII and IX of these rules.
RULE VIII - Certification Election
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SECTION 1. Who May File. — Any legitimate labor organization, including a national union or
federation that has issued a charter certificate to its local/chapter or the local/chapter itself,
may file a petition for certification election.
A national union or federation filing a petition in behalf of its local/chapter shall not be required
to disclose the names of the local/chapter’s officers and members but shall attach to the
petition the charter certificate it issued to its local/chapter.
When requested to bargain collectively in a bargaining unit where no registered collective
bargaining agreement exists, an employer may file a petition for certification election with the
Regional Office. If there is no existing registered collective bargaining agreement in the
bargaining unit, the Regional Office shall, after hearing, order the conduct of a certification
election.
In all cases, whether the petition for certification election is filed by an employer or a legitimate
labor organization, the employer shall not be considered a party thereto with a concomitant
right to oppose a petition for certification election. The employer’s participation in such
proceedings shall be limited to: (1) being notified or informed of petitions of such nature; and
(2) submitting the list of employees during the pre-election conference should the med-arbiter
act favorably on the petition. However, manifestation of facts that would aid the mediator-
arbiter in expeditiously resolving the petition such as existence of a contract-bar, one-year bar
or deadlock bar may be considered. The contract-bar rule shall apply in any of the following:
(1) when there exists an unexpired registered CBA; or (2) when there is no challenge on the
representation status of the incumbent union during the freedom period.
SECTION 2. Where to File. — A petition for certification election shall be filed with the Regional
Office which issued the petitioning union's certificate of registration/certificate of creation of
chartered local.
At the option of the petitioner, a petition for certification election and its supporting documents
may also be filed online.
The petition shall be heard and resolved by the Med-Arbiter.
Where two or more petitions involving the same bargaining unit are filed in one Regional Office,
the same shall be automatically consolidated with the Med-Arbiter who first acquired
jurisdiction. Where the petitions are filed in different Regional Offices, the Regional Office in
which the petition was first filed shall exclude all others; in which case, the latter shall indorse
the petition to the former for consolidation. DTEHIA
SECTION 3. When to File. — A petition for certification election may be filed anytime, except:
(a) when a fact of voluntary recognition has been entered or a valid certification, consent or
run-off election has been conducted within the bargaining unit within one (1) year prior to the
filing of the petition for certification election. Where an appeal has been filed from the order of
the Med-Arbiter certifying the results of the election, the running of the one year period shall
be suspended until the decision on the appeal has become final and executory; SEIDAC
(b) when the duly certified union has commenced and sustained negotiations in good faith with
the employer in accordance with Article 250 of the Labor Code within the one year period
referred to in the immediately preceding paragraph;
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(c) when a bargaining deadlock to which an incumbent or certified bargaining agent is a party
had been submitted to conciliation or arbitration or had become the subject of a valid notice of
strike or lockout;
(d) when a collective bargaining agreement between the employer and a duly recognized or
certified bargaining agent has been registered in accordance with Article 231 of the Labor
Code. Where such collective bargaining agreement is registered, the petition may be filed only
within sixty (60) days prior to its expiry.
SECTION 4. Form and Contents of Petition. — The petition shall be in writing, verified under
oath by the president of petitioning labor organization. Where the petition is filed by a federation
or national union files a petition in behalf of its local or affiliate, the petition shall BE verified
under oath by the president or duly authorized representative of the federation or national
union. In case the employer files the petition, the owner, president, or any corporate officer,
who is authorized by the board of directors, shall verify the petition. The petition shall contain
the following:
(a) the name of petitioner, its address, and affiliation if appropriate, the date and number of its
certificate of registration. If the petition is filed by a federation or national union, the national
president or his/her duly authorized representative shall certify under oath as to the existence
of its local/chapter in the establishment and attaching thereto the charter certificate or a
certified true copy thereof. If the petition is filed by a local/chapter, it shall attach its charter
certificate or a certified true copy thereof.
(b) the name, address and nature of employer's business;
(c) the description of the bargaining unit;
(d) the approximate number of employees in the bargaining unit;
(e) the names and addresses of other legitimate labor unions in the bargaining unit;
(f) a statement indicating any of the following circumstances:
1) that the bargaining unit is unorganized or that there is no registered collective bargaining
agreement covering the employees in the bargaining unit;
2) if there exists a duly registered collective bargaining agreement, that the petition is filed
within the sixty-day freedom period of such agreement; or
3) if another union had been previously recognized voluntarily or certified in a valid certification,
consent or run-off election, that the petition is filed outside the one-year period from entry of
voluntary recognition or conduct of certification or run-off election and no appeal is pending
thereon. SEIDAC
(g) in an organized establishment, the signature of at least twenty-five percent (25%) of all
employees in the appropriate bargaining unit shall be attached to the petition at the time of its
filing; and
(h) other relevant facts.
SECTION 5. Raffle of the Case. — The Regional Director or any of his/her duly authorized
representative upon receipt of the petition shall immediately assign it by raffle o a mediator-
arbiter. The raffle shall be done in the presence of the petitioner if the latter so desires.
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SECTION 6. Notice of Preliminary Conference. — The petition shall immediately be
transmitted to the assigned mediator-arbiter who shall immediately prepare and serve a notice
of preliminary conference to be held within ten (10) working days from the mediator-arbiter’s
receipt of the petition.
The service of the petition to the employer and of the notice of preliminary conference to the
petitioner and the incumbent bargaining agent (if any) shall be made within three (3) working
days from the mediator-arbiter's receipt of the petition. the service may be made by personal
service, by registered mail or by courier service.
A copy of the petition and of the notice of preliminary conference shall be posted within the
same three (3) day period in at least two conspicuous places in the establishment. In multiple-
location workplaces, the posting shall be made in at least two conspicuous places in every
location.
Section 7. Posting. — the regional director or his/her authorized dole personnel, and/or the
petitioner shall be responsible for the posting of the notice of petition for certification election.
SECTION 8. Forced Intervenor. — The incumbent bargaining agent shall automatically be one
of the choices in the certification election as forced intervenor.
SECTION 9. Motion for Intervention. — When a petition for certification election was filed in an
organized establishment, any legitimate labor union other than the incumbent bargaining agent
operating within the bargaining unit may file a motion for intervention with the Med-Arbiter
during the freedom period of the collective bargaining agreement. The form and contents of
the motion shall be the same as that of a petition for certification election.
In an unorganized establishment, the motion shall be filed at any time prior to the decision of
the Med-Arbiter. The form and contents of the motion shall likewise be the same as that of a
petition for certification election. The motion for intervention shall be resolved in the same
decision issued in the petition for certification election.
SECTION 10. Preliminary Conference; Hearing. — The Med-Arbiter shall conduct a
preliminary conference and hearing within ten (10) days from receipt of the petition to
determine the following:
(a) the bargaining unit to be represented;
(b) contending labor unions;
(c) possibility of a consent election;
(d) existence of any of the bars to certification election under Section 3 of this Rule; and
(e) such other matters as may be relevant for the final disposition of the case.
SECTION 11. Consent Election; Agreement. — The contending unions may agree to the
holding of an election, in which case it shall be called a consent election. the mediator-arbiter
shall forthwith call for the consent election, reflecting the parties' agreement and the call in the
minutes of the conference.
The Mediator-Arbiter shall, immediately forward the records of the petition to the Regional
Director or his/her authorized representative for the determination of the Election Officer who
shall be chosen by raffle in the presence of representatives of the contending unions if they so
desire.
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The first pre-election conference shall be scheduled within ten (10) days from the date of the
consent election agreement, subsequent conferences may be called to expedite and facilitate
the holding of the consent election.
To afford an individual employee-voter an informed choice where a local/chapter is the
petitioning union, the local/chapter shall secure its certificate of creation at least five working
days before the date of the consent election.
SECTION 12. Number of Hearings; Pleadings. — If the contending unions fail to agree to a
consent election during the preliminary conference, the Med-Arbiter may conduct as many
hearings as he/she may deem necessary, but in no case shall the conduct thereof exceed
fifteen (15) days from the date of the scheduled preliminary conference/hearing, after which
time the petition shall be considered submitted for decision. The Med-Arbiter shall have control
of the proceedings. Postponements or continuances shall be discouraged.
Within the same 15-day period within which the petition is heard, the contending labor unions
may file such pleadings as they may deem necessary for the immediate resolution of the
petition. Extensions of time shall not be entertained. All motions shall be resolved by the Med-
Arbiter in the same order or decision granting or denying the petition.
SECTION 13. Failure to Appear Despite Notice. — The failure of any party to appear in the
hearing(s) when notified or to file its pleadings shall be deemed a waiver of its right to be heard.
The Med-Arbiter, however, when agreed upon by the parties for meritorious reasons may allow
the cancellation of scheduled hearing(s). The cancellation of any scheduled hearing(s) shall
not be used as a basis for extending the 15-day period within which to terminate the same.
SECTION 14. Order/Decision on the Petition. — Within ten (10) days from the date of the last
hearing, the Mediator-Arbiter shall formally issue a ruling granting or denying the petition,
except in organized establishments where the grant of the petition can only be made after the
lapse of the freedom period.
The ruling for the conduct of a certification election shall state the following:
(a) the name of the employer or establishment;
(b) the description of the bargaining unit;
(c) a statement that none of the grounds for dismissal enumerated in the succeeding paragraph
exists;
(d) the names of the contending labor unions which shall appear in the following order: the
petitioner unions in the order of the filing of their respective petitions; the forced intervenor; and
“no union.”
(e) to afford an individual employee-voter an informed choice where a local/chapter is one of
the contending unions, a directive to an unregistered local/chapter or a federation/national
union representing an unregistered local/chapter to personally submit to the election officer its
certificate of creation at least five working days before the actual conduct of the certification
election.
Non-submission of this requirement as certified by the election officer shall disqualify the
local/chapter from participating in the certification election; and
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(f) a directive to the employer and the contending union(s) to submit within ten (10) days from
receipt of the order, the certified list of employees in the bargaining unit, or where necessary,
the payrolls covering the members of the bargaining unit for the last three (3) months prior to
the issuance of the order.
SECTION 15. Denial of the Petition; Grounds. — The Mediator-Arbiter may dismiss the petition
on any of the following grounds:
(a) the petitioning union or national union/federation is not listed in the Department's registry
of legitimate labor unions or that its legal personality has been revoked or cancelled with finality
in accordance with Rule XIV of these Rules;
(b) failure of a local/chapter or national union/federation to submit a duly issued charter
certificate upon filing of the petition for certification election;
(c) filing the petition before or after the freedom period of a duly registered collective bargaining
agreement: provided that the sixty-day period based on the original collective bargaining
agreement shall not be affected by any amendment, extension or renewal of the collective
bargaining agreement;
d) filing of a petition within one (1) year from the date of recording of the voluntary recognition,
or within the same period from a valid certification, consent or run-off election where no appeal
on the results of the certification, consent or run-off election is pending;
e) where a duly certified union has commenced and sustained negotiations with the employer
in accordance with Article 250 of the Labor Code within the one-year period referred to in
Section 14.d of this Rule, or where there exists a bargaining deadlock which has been
submitted to conciliation or arbitration or has become the subject of a valid notice of strike or
lockout where an incumbent or certified bargaining agent is a party;
f) in an organized establishment, the failure to submit the twenty-five percent (25%) signature
requirement to support the filing of the petition for certification election;
g) non-appearance of the petitioner for two (2) consecutive scheduled conferences before the
mediator-arbiter despite due notice; and
h) absence of employer-employee relationship between all the members of the petitioning
union and the establishment where the proposed bargaining unit is sought to be represented.
SECTION 16. Prohibited Ground for the Denial/Suspension of the Petition. — The inclusion as
union members of employees outside the bargaining unit shall not be a ground for the
cancellation of the registration of the union. said employees are automatically deemed
removed from the list of membership of said unions.
SECTION 17. Ancillary Issues. — All issues pertaining to the existence of employer-employee
relationship raised before the Mediator-Arbiter during the hearing(s) and in the pleadings shall
be resolved in the same order or decision granting or denying the petition for certification
election.
All issues pertaining to the validity of the petitioning union's certificate of registration or its legal
personality as a labor organization, validity of registration and execution of collective
bargaining agreements shall be heard and resolved by the Regional Director in an independent
petition for cancellation of its registration and not by the Mediator-Arbiter in the petition for
certification election, unless the petitioning union is not listed in the Department's roster of
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legitimate labor organizations, or an existing collective bargaining agreement is not registered
with the Department.
SECTION 18. Release of Order/Decision within Ten (10) Days from the Last Hearing. — The
Mediator-Arbiter shall release his/her order or decision granting or denying the petition
personally to the parties within ten (10) days from the last hearing, copy furnished the
employer.
SECTION 19. Appeal. — The order granting the conduct of a certification election in an
unorganized establishment shall not be subject to appeal. Any issue arising therefrom may be
raised by means of protest on the conduct and results of the certification election.
The order granting the conduct of a certification election in an organized establishment and
the decision dismissing or denying the petition, whether in an organized or unorganized
establishment, may be appealed to the Office of the Secretary within ten (10) days from receipt
thereof.
The appeal shall be verified under oath and shall consist of a memorandum of appeal,
specifically stating the grounds relied upon by the appellant with the supporting arguments and
evidence.
SECTION 20. Where to File Appeal. — The memorandum of appeal shall be filed in the
Regional Office where the petition originated, copy furnished the contending unions and the
employer, as the case may be. Within twenty-four (24) hours from receipt of the appeal, the
Regional Director shall cause the transmittal thereof together with the entire records of the
case to the Office of the Secretary.
SECTION 21. Finality of Order/Decision. — Where no appeal is filed within the ten-day period,
the Med-Arbiter shall enter the finality of the order/decision in the records of the case and
cause the transmittal of the records of the petition to the Regional Director.
SECTION 22. Period to Reply. — A reply to the appeal may be filed by any party to the petition
within ten (10) days from receipt of the memorandum of appeal. The reply shall be filed directly
with the Office of the Secretary.
SECTION 23. Decision of the Secretary. — The Secretary shall have fifteen (15) days from
receipt of the entire records of the petition within which to decide the appeal. The filing of the
memorandum of appeal from the order or decision of the Med-Arbiter stays the holding of any
certification election.
The decision of the Secretary shall become final and executory after ten (10) days from receipt
thereof by the parties. No motion for reconsideration of the decision shall be entertained.
SECTION 24. Transmittal of Records to the Regional Office. — Within forty-eight (48) hours
from notice of receipt of decision by the parties and finality of the decision, the entire records
of the case shall be remanded to the Regional Office of origin for implementation.
Implementation of the decision shall not be stayed unless restrained by the appropriate court.
SECTION 25. Effects of Consent Election. — Where a petition for certification election had
been filed, and upon the intercession of the Med-Arbiter, the parties agree to hold a consent
election, the results thereof shall constitute a bar to the holding of a certification election for
one (1) year from the holding of such consent election. Where an appeal has been filed from
the results of the consent election, the running of the one-year period shall be suspended until
the decision on appeal has become final and executory.
27
Where no petition for certification election was filed but the parties themselves agreed to hold
a consent election with the intercession of the Regional Office, the results thereof shall
constitute a bar to another petition for certification election.
SECTION 26. Effects of Early Agreements. — The representation case shall not be adversely
affected by a collective bargaining agreement registered before or during the last sixty (60)
days of a subsisting agreement or during the pendency of the representation case.
SECTION 27. Non-availability of Med-Arbiter. — Where there is no Med-Arbiter available in
the Regional Office by reason of vacancy, prolonged absence, or excessive workload as
determined by the Regional Director, he/she shall transmit the entire records of the case to the
Bureau, which shall within forty-eight (48) hours from receipt assign the case to any Med-
Arbiter from any of the Regional Offices or from the Bureau.
RULE IX - Conduct of Certification Election
Section 1. Employer as by-stander. — Subject to the provisions of paragraph 3, section 1 of
Rule VIII, the principle of the employer as by-stander shall be strictly observed throughout the
conduct of certification election. The employer shall not harass, intimidate, threat or coerce
employees before, during and after elections.
SECTION 2. Raffle of the Case. — Within twenty-four (24) hours from receipt of the notice of
entry of final judgment granting the conduct of a certification election, the Regional Director
shall cause the raffle of the case to an Election Officer who shall have control of the pre-election
conference and election proceedings.
SECTION 3. Pre-election Conference. — Within twenty-four (24) hours from receipt of the
assignment for the conduct of a certification election, the Election Officer shall cause the
issuance of notice of pre-election conference upon the contending unions and the employer,
which shall be scheduled within ten (10) days from receipt of the assignment. The employer
shall be required to submit the certified list of employees in the bargaining unit, or where
necessary, the payrolls covering the members of the bargaining unit at the time of the filing of
the petition.
The pre-election conference shall set the mechanics for the election and shall determine,
among others, the following:
(a) date, time and place of the election, which shall not be later than forty-five (45) days from
the date of the first pre-election conference, and shall be on a regular working day and within
the employer's premises, unless circumstances require otherwise;
(b) list of eligible and challenged voters;
(c) number and location of polling places or booths and the number of ballots to be prepared
with appropriate translations, if necessary;
(d) name of watchers or representatives and their alternates for each of the parties during
election;
(e) mechanics and guidelines of the election.
SECTION 4. Waiver of Right to be Heard. — Failure of any party to appear during the pre-
election conference despite notice shall be considered as a waiver of its right to be present
and to question or object to any of the agreements reached in the pre-election conference.
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However, this shall not deprive the non-appearing party of the right to be furnished notices of
and to attend subsequent pre-election conferences.
SECTION 5. Minutes of Pre-election Conference. — The Election Officer shall keep the
minutes of matters raised and agreed upon during the pre-election conference. The parties
shall acknowledge the completeness and correctness of the entries in the minutes by affixing
their signatures thereon. Where any of the parties refuse to sign the minutes, the Election
Officer shall note such fact in the minutes, including the reason for refusal to sign the same. In
all cases, the parties shall be furnished a copy of the minutes.
The pre-election conference shall be completed within thirty (30) days from the date of the first
hearing.
SECTION 6. Qualification of Voters; Inclusion-Exclusion. — All employees who are members
of the appropriate bargaining unit three (3) months prior to the filing of the petition/request shall
be eligible to vote. An employee who has been dismissed from work but has contested the
legality of the dismissal in a forum of appropriate jurisdiction at the time of the issuance of the
order for the conduct of a certification election shall be considered a qualified voter, unless
his/her dismissal was declared valid in a final judgment at the time of the conduct of the
certification election.
In case of disagreement over the voters' list or over the eligibility of voters, all contested voters
shall be allowed to vote. But their votes shall be segregated and sealed in individual envelopes
in accordance with Sections 10 and 11 of this Rule.
SECTION 7. Posting of Notices. — The election officer and/or authorized dole personnel shall
cause the posting of notice of election at least ten (10) days before the actual date of the
election in two (2) most conspicuous places in the company premises. The notice shall contain:
(a) the date and time of the election;
(b) names of all contending unions;
(c) the description of the bargaining unit and the list of eligible and challenged voters.
The posting of the list of employees comprising the bargaining unit shall be done by the dole
personnel.
The posting of the notice of election, the information required to be included therein and the
duration of posting cannot be waived by the contending unions or the employer.
SECTION 8. Secrecy and Sanctity of the Ballot. — To ensure secrecy of the ballot, the Election
Officer, together with the authorized representatives of the contending unions and the
employer, shall before the start of the actual voting, inspect the polling place, the ballot boxes
and the polling booths.
No device that could record or identify the voter or otherwise undermine the secrecy and
sanctity of the ballot shall be allowed within the premises, except those devices brought in by
the election officer. Any other device found within the premises shall be confiscated by the
election officer and returned to its owner after the conduct of the certification election.
SECTION 9. Preparation of Ballots. — The Election Officer shall prepare the ballots in English
and Filipino or the local dialect. The number of ballots should correspond to the number of
voters in the bargaining unit plus a reasonable number of extra ballots for contingencies. All
ballots shall be signed at the back by the Election Officer and an authorized representative of
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each of the contending unions. A party who refuses or fails to sign the ballots waives its right
to do so and the Election Officer shall enter the fact of refusal or failure and the reason therefor
in the records of the case.
SECTION 10. Casting of Votes. — The voter must put a cross (x) or check (/) mark in the
square opposite the name of the union of his choice or "No Union" if he/she does not want to
be represented by any union.
If the voter inadvertently spoils a ballot, he/she shall return it to the Election Officer who shall
destroy it and give him/her another ballot.
Any member of the bargaining unit who is unintentionally omitted in the master list of voters
may be allowed to vote if both parties agree, otherwise, he/she will be allowed to vote but the
ballot is segregated.
SECTION 11. Procedure in the Challenge of Votes. — The ballot of the voter who has been
properly challenged during the pre-election conferences, shall be placed in an envelope which
shall be sealed by the Election Officer in the presence of the voter and the representatives of
the contending unions. The Election Officer shall indicate on the envelope the voter's name,
the union challenging the voter, and the ground for the challenge. The sealed envelope shall
then be signed by the Election Officer and the representatives of the contending unions. The
Election Officer shall note all challenges in the minutes of the election proceedings and shall
have custody of all envelopes containing the challenged votes. The envelopes shall be opened
and the question of eligibility shall be passed upon by the mediator-arbiter only if the number
of segregated votes will materially alter the results of the election.
SECTION 12. On-the-Spot Questions. — The Election Officer shall rule on any question
relating to and raised during the conduct of the election. In no case, however, shall the election
officer rule on any of the grounds for challenge specified in the immediately preceding section.
SECTION 13. Protest; When Perfected. — Any party-in-interest may file a protest based on
the conduct or mechanics of the election. Such protests shall be recorded in the minutes of the
election proceedings. Protests not so raised are deemed waived.
General reservation to file a protest shall be prohibited. The protesting party shall specify the
grounds for protest.
The protesting party must formalize its protest with the Med-Arbiter, with specific grounds,
arguments and evidence, within five (5) days after the close of the election proceedings. If not
recorded in the minutes and formalized within the prescribed period, the protest shall be
deemed dropped.
SECTION 13. Canvassing of Votes. — The votes shall be counted and tabulated by the
Election Officer in the presence of the representatives of the contending unions. Upon
completion of the canvass, the Election Officer shall give each representative a copy of the
minutes of the election proceedings and results of the election. The ballots and the tally sheets
shall be sealed in an envelope and signed by the Election Officer and the representatives of
the contending unions and transmitted to the Med-Arbiter, together with the minutes and results
of the election, within twenty-four (24) hours from the completion of the canvass.
Where the election is conducted in more than one region, consolidation of results shall be
made within fifteen (15) days from the conduct thereof.
SECTION 14. Conduct of Election and Canvass of Votes. — The election precincts shall open
and close on the date and time agreed upon during the pre-election conference. The opening
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and canvass of votes shall proceed immediately after the precincts have closed. Failure of the Where majority of the valid votes cast results in "No Union" obtaining the majority, the Med-
representative/s of the contending unions to appear during the election proceedings shall be Arbiter shall declare such fact in the order.
considered a waiver to be present and to question the conduct thereof.

SECTION 15. Certification of Collective Bargaining Agent. — The union which obtained a RULE X - Run-Off Elections
majority of the valid votes cast shall be certified as the sole and exclusive bargaining agent of
all the employees in the appropriate bargaining unit within five (5) days from the day of the SECTION 1. When Proper. — When an election which provides for three (3) or more choices
election, provided no protest is recorded in the minutes of the election. results in none of the contending unions receiving a majority of the valid votes cast, and there
are no objections or challenges which if sustained can materially alter the results, the Election
When the winning choice is a local chapter without a certificate of creation of chartered local, Officer shall motu proprio conduct a run-off election within ten (10) days from the close of the
such local chapter shall submit its dole-issued certificate of creation within five (5) days from election proceedings between the labor unions receiving the two highest number of votes;
the conclusion of election. provided, that the total number of votes for all contending unions is at least fifty (50%) percent
of the number of votes cast. SEIDAC
SECTION 16. Failure of Election. — Where the number of votes cast in a certification or
consent election is less than the majority of the number of eligible voters and there are no "No Union" shall not be a choice in the run-off election.
material challenged votes, the Election Officer shall declare a failure of election in the minutes
of the election proceedings. Notice of run-off elections shall be posted by the Election Officer at least five (5) days before
the actual date of run-off election.
SECTION 17. Effect of Failure of Election. — A failure of election shall not bar the filing of a
motion for the immediate holding of another certification or consent election within six (6) SECTION 2. Qualification of Voters. — The same voters' list used in the certification election
months from date of declaration of failure of election. shall be used in the run-off election. The ballots in the run-off election shall provide as choices
the unions receiving the highest and second highest number of the votes cast. The labor union
SECTION 18. Re-run election. — when a certification, consent or run-off election results to a receiving the greater number of valid votes cast shall be certified as the winner, subject to
tie between the two (2) choices, the election officer shall immediately notify the parties of a re- Section 20, Rule IX.
run election. The election officer shall cause the posting of the notice of re-run election within
five (5) days from the certification, consent or run-off election. The re-run election shall be CASES ASSIGNED: DUTY TO BARGAIN COLLECTIVELY
conducted within ten (10) days after the posting of notice.
1. Lakas ng Manggagawang Makabayan v. Marcelo Enterprises
The choice receiving the highest votes cast during the re-run election shall be declared the 2. National Union of Restaurant Workers (PTUC) v. CIR
winner and shall be certified accordingly. 3. Liberty Flour Mills Employees Association v. Liberty Flour Mills
4. Colegio de San Juan de Letran v. Association of Employees and Faculty of Letran
SECTION 19. Action on the Motion. — Within twenty-four (24) hours from receipt of the motion, 5. San Miguel Corporation Employees Union-PTGWO v. Confesor
the Election Officer shall immediately schedule the conduct of another certification or consent 6. Manila Electric Co. v. Quisumbing (January 1999)
election within fifteen (15) days from receipt of the motion and cause the posting of the notice 7. Manila Electric Co. v. Quisumbing (February 1999)
of certification election at least ten (10) days prior to the scheduled date of election in two (2) 8. New Pacific Timber v. NLRC
most conspicuous places in the establishment. The same guidelines and list of voters shall be 9. Mindanao Terminal and Brokerage Service Inc. v. Confesor
used in the election. 10. Samahang Mangagawa sa Top Form v. NLRC
11. Rivera v. Espiritu
SECTION 20. Proclamation and Certification of the Result of the Election. — Within twenty-
four (24) hours from final canvass of votes, there being a valid election, the Election Officer JURISDICTIONAL REQUIREMENTS
shall transmit the records of the case to the Med-Arbiter who shall, within the same period from
receipt of the minutes and results of election, issue an order proclaiming the results of the CASES ASSIGNED
election and certifying the union which obtained a majority of the valid votes cast as the sole 1. Kiok Loy v. NLRC
and exclusive bargaining agent in the subject bargaining unit, under any of the following 2. ALU v. Ferrer-Calleja
conditions:
BARGAINING AGENT AND CERTIFICATION ELECTION PROCEEDINGS
(a) no protest was filed or, even if one was filed, the same was not perfected within the five-
day period for perfection of the protest; CASES ASSIGNED
1. Republic of the Philippines, represented by DOLE, v. Kawashima Textile
(b) no challenge or eligibility issue was raised or, even if one was raised, the resolution of the 2. St. James School of Quezon City v. Samahang Manggagawa sa St. James
same will not materially change the results of the elections. 3. Coastal Subic Bay Terminal v. DOLE
4. DHL Phils. United Rank and File Association v. Buklod ng Manggagawa ng DHL Phils.
The winning union shall have the rights, privileges and obligations of a duly certified 5. Sugbuanon Rural Bank, Inc. v Laguesma
collective bargaining agent from the time the certification is issued. 6. Sta. Lucia East Commercial Corporation v. Hon. Secretary of Labor

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 7. Samahan ng mga Manggagawa sa Samma–Lakas Sa Industriya Ng Kapatirang Haligi
the same order or decision granting or denying the petition for certification election. Any
Ng Alyansa (Samma–Likha) v. Samma Corporation
question pertaining to the validity of petitioning union's certificate of registration or its legal
8. Chris Garments Corporation v. Hon. Patricia A. Sto Tomas and Chris Garments
personality as a labor organization, validity of registration and execution of collective
Workers Union-PTGWO
bargaining agreements shall be heard and resolved by the Regional Director in an independent
9. National Union of Workers in Hotels, Restaurants and Allied Industries- Manila Pavilion
petition for cancellation of its registration and not by the Med-Arbiter in the petition for
Hotel Chapter v. Secretary of Labor
certification election, unless the petitioning union is not found in the Department's roster of
10. Eagle Ridge Golf and Country Club v. CA
legitimate labor organizations or an existing collective bargaining agreement is unregistered
11. PICOP Resources, Inc. v. Tañeca
with the Department.
12. Legend International Resorts v. Kilusang Manggagawa ng Legend
13. Samahang Manggagawa sa Charter Chemical (SMCC-SUPER) v. Charter Chemical
and Coating Corp • OMNBIUS RULES, BOOK V, RULE XVII, SECTION 7, AS AMENDED BY D. O. 30-03
14. Heritage Hotel v. Secretary
15. Republic of the Philippines v. Namboku Peak Section 7. Term of representation status; contract bar rule. - The representation status of
16. Sta. Lucia East Commercial Corporation v. Hon. Secretary of Labor the incumbent exclusive bargaining agent which is a party to a duly registered collective
17. Hijo Resources Corporation v. Mejares bargaining agreement shall be for a term of five (5) years from the date of the effectivity of the
18. Ren Transport Corporation v. NLRC collective bargaining agreement. No petition questioning the majority status of the incumbent
exclusive bargaining agent or petition for certification election filed outside of the sixty-day
BARS TO CERTIFICATION ELECTION period immediately preceding the expiry date of such five-year term shall be entertained by the
Department.
• LABOR CODE: ART. 238
The five-year representation status acquired by an incumbent bargaining agent either through
ART. 238. [232] Prohibition on Certification Election. The Bureau shall not entertain any petition single enterprise collective bargaining or multi-employer bargaining shall not be affected by a
for certification election or any other action which may disturb the administration of duly subsequent collective bargaining agreement executed
registered existing collective bargaining agreements affecting the parties except under Articles between the same bargaining agent and the employer during the same five-year period.
253, 253-A and 256 of this Code.
COLLECTIVE BARGAINING
• OMNIBUS RULES, BOOK V, RULE VIII, SECTIONS 14-15, AS AMENDED BY D.O. 30-03
• LABOR CODE ARTS. 261-266, 258-260, 274
Section 14. Denial of the petition; Grounds. - The Med-Arbiter may dismiss the petition on any
of the following grounds: ARTICLE 261. [250] Procedure in Collective Bargaining. 206 — The following procedures
shall be observed in collective bargaining:
(a) the petitioner is not listed in the Department's registry of legitimate labor unions or that its (a) When a party desires to negotiate an agreement, it shall serve a written notice upon the
legal personality has been revoked or cancelled with finality in accordance with Rule XIV of other party with a statement of its proposals. The other party shall make a reply thereto not
these Rules; later than ten (10) calendar days from receipt of such notice;
(b) the petition was filed before or after the freedom period of a duly registered collective
bargaining agreement; provided that the sixty-day period based on the original collective (b) Should differences arise on the basis of such notice and reply, either party may request
bargaining agreement shall not be affected by any amendment, extension or renewal of the for a conference which shall begin not later than ten (10) calendar days from the date of
collective bargaining agreement; request.
(c) the petition was filed within one (1) year from entry of voluntary recognition or a valid
certification, consent or run-off election and no appeal on the results of the certification, consent (c) If the dispute is not settled, the Board shall intervene upon request of either or both parties
or run-off election is pending; or at its own initiative and immediately call the parties to conciliation meetings. The Board
(d) a duly certified union has commenced and sustained negotiations with the employer in shall have the power to issue subpoenas requiring the attendance of the parties to such
accordance with Article 250 of the Labor Code within the one-year period referred to in Section meetings. It shall be the duty of the parties to participate fully and promptly in the conciliation
14.c of this Rule, or there exists a bargaining deadlock which had been submitted to conciliation meetings the Board may call;
or arbitration or had become the subject of a valid notice of strike or lockout to
which an incumbent or certified bargaining agent is a party; (d) During the conciliation proceedings in the Board, the parties are prohibited from doing
(e) in case of an organized establishment, failure to submit the twenty-five percent (25%) any act which may disrupt or impede the early settlement of the disputes; and
support requirement for the filing of the petition for certification election.
(e) The Board shall exert all efforts to settle disputes amicably and encourage the parties to
submit their case to a voluntary arbitrator.

Section 15. Prohibited grounds for the denial/suspension of the petition. - All issues pertaining
to the existence of employer-employee relationship, eligibility or mixture in union membership ARTICLE 262. [251] Duty to Bargain Collectively in the Absence of Collective Bargaining
raised before the Med-Arbiter during the hearing(s) and in the pleadings shall be resolved in Agreements. — In the absence of an agreement or other voluntary arrangement providing

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for a more expeditious manner of collective bargaining, it shall be the duty of employer and
the representatives of the employees to bargain collectively in accordance with the provisions
of this Code.
ARTICLE 263. [252] Meaning of Duty to Bargain Collectively. — The duty to bargain
collectively means the performance of a mutual obligation to meet and convene promptly
and expeditiously in good faith for the purpose of negotiating an agreement with respect to
wages, hours of work and all other terms and conditions of employment including proposals
for adjusting any grievances or questions arising under such agreement and executing a
contract incorporating such agreements if requested by either party but such duty does not
compel any party to agree to a proposal or to make any concession.
ARTICLE 264. [253] Duty to Bargain Collectively When There Exists a Collective Bargaining
Agreement. — When there is a collective bargaining agreement, the duty to bargain
collectively shall also mean that neither party shall terminate nor modify such agreement
during its lifetime. However, either party can serve a written notice to terminate or modify the
agreement at least sixty (60) days prior to its expiration date. It shall be the duty of both
parties to keep the status quo and to continue in full force and effect the terms and conditions
of the existing agreement during the 60-day period and/or until a new agreement is reached
by the parties.
ARTICLE 265. [253-A] Terms of a Collective Bargaining Agreement. 207 — Any Collective
Bargaining Agreement that the parties may enter into shall, insofar as the representation
aspect is concerned, be for a term of five (5) years. No petition questioning the majority status
of the incumbent bargaining agent shall be entertained and no certification election shall be
conducted by the Department of Labor and Employment outside of the sixty-day period
immediately before the date of expiry of such five-year term of the Collective Bargaining
Agreement. All other provisions of the Collective Bargaining Agreement shall be renegotiated
not later than three (3) years after its execution. Any agreement on such other provisions of
the Collective Bargaining Agreement entered into within six (6) months from the date of
expiry of the term of such other provisions as fixed in such Collective Bargaining Agreement,
shall retroact to the day immediately following such date. If any such agreement is entered
into beyond six months, the parties shall agree on the duration of retroactivity thereof. In case
of a deadlock in the renegotiation of the Collective Bargaining Agreement, the parties may
exercise their rights under this Code.
ARTICLE 266. [254] Injunction Prohibited. 208 — No temporary or permanent injunction or
restraining order in any case involving or growing out of labor disputes shall be issued by
any court or other entity, except as otherwise provided in Articles 218 and 264 of this Code.
ARTICLE 258. [247] Concept of Unfair Labor Practice and Procedure for Prosecution
Thereof. 200 — Unfair labor practices violate the constitutional right of workers and
employees to self-organization, are inimical to the legitimate interests of both labor and
management, including their right to bargain collectively and otherwise deal with each other
in an atmosphere of freedom and mutual respect, disrupt industrial peace and hinder the
promotion of healthy and stable labor-management relations.
Consequently, unfair labor practices are not only violations of the civil rights of both labor
and management but are also criminal offenses against the State which shall be subject to
prosecution and punishment as herein provided.
31
Subject to the exercise by the President or by the Secretary of Labor and Employment of the
powers vested in them by Articles 263 and 264 of this Code, 201 the civil aspects of all cases
involving unfair labor practices, which may include claims for actual, moral, exemplary and
other forms of damages, attorney's fees and other affirmative relief, shall be under the
jurisdiction of the Labor Arbiters. The Labor Arbiters shall give utmost priority to the hearing
and resolution of all cases involving unfair labor practices. They shall resolve such cases
within thirty (30) calendar days from the time they are submitted for decision. 202
Recovery of civil liability in the administrative proceedings shall bar recovery under the Civil
Code.
No criminal prosecution under this Title may be instituted without a final judgment finding that
an unfair labor practice was committed, having been first obtained in the preceding
paragraph. During the pendency of such administrative proceeding, the running of the period
of prescription of the criminal offense herein penalized shall be considered interrupted:
Provided, however, That the final judgment in the administrative proceedings shall not be
binding in the criminal case nor be considered as evidence of guilt but merely as proof of
compliance of the requirements therein set forth.
ARTICLE 259. [248] Unfair Labor Practices of Employers. 203 — It shall be unlawful for an
employer to commit any of the following unfair labor practices:
(a) To interfere with, restrain or coerce employees in the exercise of their right to self-
organization;
(b) To require as a condition of employment that a person or an employee shall not join a
labor organization or shall withdraw from one to which he belongs;
(c) To contract out services or functions being performed by union members when such will
interfere with, restrain or coerce employees in the exercise of their right to self-organization;
(d) To initiate, dominate, assist or otherwise interfere with the formation or administration of
any labor organization, including the giving of financial or other support to it or its organizers
or supporters;
(e) To discriminate in regard to wages, hours of work and other terms and conditions of
employment in order to encourage or discourage membership in any labor organization.
Nothing in this Code or in any other law shall stop the parties from requiring membership in
a recognized collective bargaining agent as a condition for employment, except those
employees who are already members of another union at the time of the signing of the
collective bargaining agreement. Employees of an appropriate bargaining unit who are not
members of the recognized collective bargaining agent may be assessed a reasonable fee
equivalent to the dues and other fees paid by members of the recognized collective
bargaining agent, if such non-union members accept the benefits under the collective
bargaining agreement: Provided, That the individual authorization required under Article 242,
paragraph (o) of this Code 204 shall not apply to the non-members of the recognized
collective bargaining agent;
(f) To dismiss, discharge or otherwise prejudice or discriminate against an employee for
having given or being about to give testimony under this Code;
(g) To violate the duty to bargain collectively as prescribed by this Code;
(h) To pay negotiation or attorney's fees to the union or its officers or agents as part of the
settlement of any issue in collective bargaining or any other dispute; or
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(i) To violate a collective bargaining agreement.
The provisions of the preceding paragraph notwithstanding, only the officers and agents of
corporations, associations or partnerships who have actually participated in, authorized or
ratified unfair labor practices shall be held criminally liable.
ARTICLE 260. [249] Unfair Labor Practices of Labor Organizations. 205 — It shall be unfair
labor practice for a labor organization, its officers, agents or representatives:
(a) To restrain or coerce employees in the exercise of their right to self-organization.
However, a labor organization shall have the right to prescribe its own rules with respect to
the acquisition or retention of membership;
(b) To cause or attempt to cause an employer to discriminate against an employee, including
discrimination against an employee with respect to whom membership in such organization
has been denied or to terminate an employee on any ground other than the usual terms and
conditions under which membership or continuation of membership is made available to
other members;
(c) To violate the duty, or refuse to bargain collectively with the employer, provided it is the
representative of the employees;
(d) To cause or attempt to cause an employer to pay or deliver or agree to pay or deliver
any money or other things of value, in the nature of an exaction, for services which are not
performed or not to be performed, including the demand for fee for union negotiations;
(e) To ask for or accept negotiation or attorney's fees from employers as part of the
settlement of any issue in collective bargaining or any other dispute; or
(f) To violate a collective bargaining agreement.
The provisions of the preceding paragraph notwithstanding, only the officers, members of
governing boards, representatives or agents or members of labor associations or
organizations who have actually participated in, authorized or ratified unfair labor practices
shall be held criminally liable.
ARTICLE 274. [261] Jurisdiction of Voluntary Arbitrators and Panel of Voluntary Arbitrators.
— The Voluntary Arbitrator or panel of Voluntary Arbitrators shall have original and exclusive
jurisdiction to hear and decide all unresolved grievances arising from the interpretation or
implementation of the Collective Bargaining Agreement and those arising from the
interpretation or enforcement of company personnel policies referred to in the immediately
preceding article. Accordingly, violations of a Collective Bargaining Agreement, except those
which are gross in character, shall no longer be treated as unfair labor practice and shall be
resolved as grievances under the Collective Bargaining Agreement. For purposes of this
article, gross violations of Collective Bargaining Agreement shall mean flagrant and/or
malicious refusal to comply with the economic provisions of such agreement.
The Commission, its Regional Offices and the Regional Directors of the Department of Labor
and Employment shall not entertain disputes, grievances or matters under the exclusive and
original jurisdiction of the Voluntary Arbitrator or panel of Voluntary Arbitrators and shall
immediately dispose and refer the same to the Grievance Machinery or Voluntary Arbitration
provided in the Collective Bargaining Agreement.
32
• OMNIBUS RULES, BOOK V, RULE I, SEC. 1 (D, H, J, T, BBB), RULES XVI-XVII, AS AMENDED BY D.O.
40-03
Section 1. Definition of Terms.
(d) "Bargaining Unit" refers to a group of employees sharing mutual interests within a given
employer unit, comprised of all or less than all of the entire body of employees in the
employer unit or any specific occupational or geographical grouping within such employer
unit.
(h) "Certification Election" or "Consent Election" refers to the process of determining through
secret ballot the sole and exclusive representative of the employees in an appropriate
bargaining unit for purposes of collective bargaining or negotiation. A certification election is
ordered by the Department, while a consent election is voluntarily agreed upon by the parties,
with or without the intervention by the Department.
(j) "Collective Bargaining Agreement" or "CBA" refers to the contract between a legitimate
labor union and the employer concerning wages, hours of work, and all other terms and
conditions of employment in a bargaining unit.
(t) "Exclusive Bargaining Representative" refers to a legitimate labor union duly recognized
or certified as the sole and exclusive bargaining representative or agent of all the employees
in a bargaining unit.
(bbb) "Voluntary Recognition" refers to the process by which a legitimate labor union is
recognized by the employer as the exclusive bargaining representative or agent in a
bargaining unit, reported with the Regional Office in accordance with Rule VII, Section 2 of
these Rules.
Rule XVI
Section 1. Policy. - It is the policy of the State to promote and emphasize the primacy of free
and responsible exercise of the right to self-organization and collective bargaining, either
through single enterprise level negotiations or through the creation of a mechanism by which
different employers and recognized or certified labor unions in their establishments bargain
collectively.
Section 2. Disclosure of information. - In collective bargaining, the parties shall, at the request
of either of them, make available such up-to-date financial information on the economic
situation of the undertaking, which is normally submitted to relevant government agencies,
as is material and necessary for meaningful negotiations. Where the disclosure of some of
this information could be prejudicial to the undertaking, its communication may be made
condition upon a commitment that it would be regarded as confidential to the extent required.
The information to be made available may be agreed upon between the parties to collective
bargaining.
Section 3. When single enterprise bargaining available. - Any voluntarily recognized or
certified labor union may demand negotiations with its employer for terms and conditions of
work covering employees in the bargaining unit concerned.
Section 4. Procedure in single enterprise bargaining - A recognized or certified labor union
that desires to negotiate with its employer shall submit such intention in writing to the
employer, together with its proposals for collective bargaining.
The recognized or certified labor union and its employer may adopt such procedures and
processes they may deem appropriate and necessary for the early termination of their
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negotiations. They shall name their respective representatives to the negotiation, schedule
the number and frequency of meetings, and agree on wages, benefits and other terms and
conditions of work for all employees covered in the bargaining unit.
Section 5. When multi-employer bargaining available. - A legitimate labor union(s) and
employers may agree in writing to come together for the purpose of collective bargaining,
provided:
(a) only legitimate labor unions who are incumbent exclusive bargaining agents may
participate and negotiate in multi-employer bargaining;
(b) only employers with counterpart legitimate labor unions who are incumbent bargaining
agents may participate and negotiate in multi-employer bargaining; and
(c) only those legitimate labor unions who pertain to employer units who consent to multi-
employer bargaining may participate in multi-employer bargaining.
Section 6. Procedure in multi-employer bargaining. - Multi-employer bargaining may be
initiated by the labor unions or by the employers.
(a) Legitimate labor unions who desire to negotiate with their employers collectively shall
execute a written agreement among themselves, which shall contain the following:
Rule XVII
1) the names of the labor unions who desire to avail of multi-employer bargaining;
2) each labor union in the employer unit;
3) the fact that each of the labor unions are the incumbent exclusive bargaining agents for
their respective employer units;
4) the duration of the collective bargaining agreements, if any, entered into by each labor
union with their respective employers.
Legitimate labor unions who are members of the same registered federation, national, or
industry union are exempt from execution of this written agreement.
(b) The legitimate labor unions who desire to bargain with multi-employers shall send a
written notice to this effect to each employer concerned. The written agreement stated in the
preceding paragraph, or the certificates of registration of the federation, national, or industry
union, shall accompany said notice. Employers who agree to group themselves or use their
existing associations to engage in multi- employer bargaining shall send a written notice to
each of their counterpart legitimate labor unions indicating their desire to engage in multi-
employer bargaining. Said notice shall indicate the following: 1) the names of the employers
who desire to avail of multi-employer bargaining;
2) their corresponding legitimate labor organizations;
3) the fact that each corresponding legitimate union is any incumbent exclusive bargaining
agent;
4) the duration of the current collective bargaining agreement, if any, entered into by each
employer with the counterpart legitimate labor union.
(c) Each employer or concerned labor union shall express its willingness or refusal to
participate in multi-employer bargaining in writing, addressed to its corresponding exclusive
bargaining agent or employer. Negotiations may commence only with regard to respective
employers and labor unions who
consent to participate in multi-employer bargaining;
33
(d) During the course of negotiations, consenting employers and the corresponding
legitimate labor unions shall discuss and agree on the following:
1) the manner by which negotiations shall proceed;
2) the scope and coverage of the negotiations and the agreement; and
3) where appropriate, the effect of the negotiations on current agreements or conditions of
employment among the parties.
Section 7. Posting and registration of collective bargaining agreement. - Two (2) signed
copies of collective bargaining agreement reached through multi-employer bargaining shall
be posted for at least five ( 5) days in two conspicuous areas in each workplace of the
employer units concerned. Said collective bargaining agreement shall affect only those
employees in the bargaining units who have ratified it.
The same collective bargaining agreement shall be registered with the Department in
accordance with the following Rule.
Section 1. Where to file. - Within thirty (30) days from execution of a collective bargaining
agreement, the parties thereto shall submit two (2) duly signed copies of the agreement to
the Regional Office which issued the certificate of registration/certificate of creation of
chartered local of the labor union- party to the agreement. Where the certificate of creation
of the concerned chartered local was issued by the Bureau, the agreement shall be filed with
the Regional Office which has jurisdiction over the place where it principally operates.
Multi-employer collective bargaining agreements shall be filed with the Bureau.
Section 2. Requirements for registration. - The application for CBA registration shall be
accompanied by the original and two (2) duplicate copies of the following documents which
must be certified under oath by the representative(s) of the employer(s) and labor union(s)
concerned
(a) the collective bargaining agreement;
(b) a statement that the collective bargaining agreement was posted in at least two (2)
conspicuous places in the establishment or establishments concerned for at least five (5)
days before its ratification; and
(c) a statement that the collective bargaining agreement was ratified by the majority of the
employees in the bargaining unit of the employer or employers concerned.
No other document shall be required in the registration of collective bargaining agreements.
Section 3. Payment of registration fee. - The certificate of registration of collective bargaining
agreement shall be issued by the Regional Office upon payment of the prescribed
registration fee.
Section 4. Action on the application. - The Regional Office and the Bureau shall act on
applications for registration of collective bargaining agreements within five (5) days from
receipt thereof, either by: (a) approving the application and issuing the certificate of
registration; or (b) denying the application for failure of the applicant to comply with the
requirements for registration.
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 Where the documents supporting the application are not complete or are not verified under
oath, the Regional Office or the Bureau shall, within five (5) days from receipt of the
application, notify the applicants in writing of the requirements needed to complete the
application. Where the applicants fail to complete the requirements within ten (10) days from
receipt of notice, the application shall be denied without prejudice.
Section 5. Denial of registration; grounds for appeal. - The denial of registration shall be in
writing, stating in clear terms the reasons therefor and served upon the applicant union and
employer within twenty-four (24) hours from issuance. The denial by the Regional Office of
the registration of single enterprise collective bargaining agreements may be appealed to the
Bureau within ten (10) days from receipt of the notice of denial. The denial by the Bureau of
the registration of multi-employer collective bargaining agreements may be appealed to the
Office of the Secretary within the same period.
The memorandum of appeal shall be filed with the Regional Office or the Bureau, as the case
may be. The same shall be transmitted, together with the entire records of the application, to
the Bureau or the Office of the Secretary, as the case may be, within twenty-four (24) hours
from receipt of the memorandum of appeal.
Section 6. Period and manner of disposition of appeal. - The Bureau and the Office of the
Secretary shall resolve the appeal within the same period and in the same manner prescribed
in Rule XI of these Rules.
Section 7. Term of representation status; contract bar rule. - The representation status of the
incumbent exclusive bargaining agent which is a party to a duly registered collective
bargaining agreement shall be for a term of five (5) years from the date of the effectivity of
the collective bargaining agreement. No petition questioning the majority status of the
incumbent exclusive bargaining agent or petition for certification election filed outside of the
sixty-day period immediately preceding the expiry date of such five-year term shall be
entertained by the Department.
The five-year representation status acquired by an incumbent bargaining agent either
through single enterprise collective bargaining or multi-employer bargaining shall not be
affected by a subsequent collective bargaining agreement executed between the same
bargaining agent and the employer during the same five-year period.
Section 8. Re-negotiation of collective bargaining agreements. - All provisions of a collective
bargaining agreement, except the representation status of the incumbent bargaining agent
shall, as a matter of right, be renegotiated not later than three (3) years after its execution.
The re-negotiated collective bargaining agreement shall be ratified and registered with the
same Regional Office where the preceding agreement was registered. The same
requirements and procedure in the registration of collective bargaining agreements
prescribed in the preceding rules shall be applied.
• LABOR CODE ARTS. 237, 219 (N), 273-275 (B), 292 (F,G,H)
ARTICLE 237. [231] Registry of Unions and File of Collective Bargaining Agreements. —
The Bureau shall keep a registry of legitimate labor organizations.
The Bureau shall also maintain a file of all collective bargaining agreements and other related
agreements and records of settlement of labor disputes and copies of orders and decisions
of voluntary arbitrators or panel of voluntary arbitrators. The file shall be open and accessible
to interested parties under conditions prescribed by the Secretary of Labor and Employment,
34
provided that no specific information submitted in confidence shall be disclosed unless
authorized by the Secretary, or when it is at issue in any judicial litigation, or when public
interest or national security so requires.
Within thirty (30) days from the execution of a Collective Bargaining Agreement, the parties
shall submit copies of the same directly to the Bureau or the Regional Offices of the
Department of Labor and Employment for registration accompanied with verified proofs of its
posting in two conspicuous places in the place of work and ratification by the majority of all
the workers in the bargaining unit. The Bureau or Regional Offices shall act upon the
application for registration of such Collective Bargaining Agreement within five (5) calendar
days from receipt thereof. The Regional Offices shall furnish the Bureau with a copy of the
Collective Bargaining Agreement within five (5) days from its submission.
The Bureau or Regional Office shall assess the employer for every Collective Bargaining
Agreement a registration fee of not less than one thousand pesos (P1,000.00) or in any other
amount as may be deemed appropriate and necessary by the Secretary of Labor and
Employment for the effective and efficient administration of the Voluntary Arbitration
Program. Any amount collected under this provision shall accrue to the Special Voluntary
Arbitration Fund.
The Bureau shall also maintain a file, and shall undertake or assist in the publication of all
final decisions, orders and awards of the Secretary of Labor and Employment, Regional
Directors and the Commission.
ARTICLE 219. Definitions.
(n) "Voluntary Arbitrator" means any person accredited by the Board as such, or any person
named or designated in the Collective Bargaining Agreement by the parties to act as their
Voluntary Arbitrator, or one chosen with or without the assistance of the National Conciliation
and Mediation Board, pursuant to a selection procedure agreed upon in the Collective
Bargaining Agreement, or any official that may be authorized by the Secretary of Labor and
Employment to act as Voluntary Arbitrator upon the written request and agreement of the
parties to a labor dispute.
ARTICLE 273. [260] Grievance Machinery and Voluntary Arbitration. — The parties to a
Collective Bargaining Agreement shall include therein provisions that will ensure the mutual
observance of its terms and conditions. They shall establish a machinery for the adjustment
and resolution of grievances arising from the interpretation or implementation of their
Collective Bargaining Agreement and those arising from the interpretation or enforcement of
company personnel policies.
All grievances submitted to the grievance machinery which are not settled within seven (7)
calendar days from the date of its submission shall automatically be referred to voluntary
arbitration prescribed in the Collective Bargaining Agreement.
For this purpose, parties to a Collective Bargaining Agreement shall name and designate in
advance a Voluntary Arbitrator or panel of Voluntary Arbitrators, or include in the agreement
a procedure for the selection of such Voluntary Arbitrator or panel of Voluntary Arbitrators,
preferably from the listing of qualified Voluntary Arbitrators duly accredited by the Board. In
case the parties fail to select a Voluntary Arbitrator or panel of Voluntary Arbitrators, the
Board shall designate the Voluntary Arbitrator or panel of Voluntary Arbitrators, as may be
necessary, pursuant to the selection procedure agreed upon in the Collective Bargaining
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Agreement, which shall act with the same force and effect as if the Arbitrator or panel of
Arbitrators have been selected by the parties as described above.
ARTICLE 274. [261] Jurisdiction of Voluntary Arbitrators and Panel of Voluntary Arbitrators.
— The Voluntary Arbitrator or panel of Voluntary Arbitrators shall have original and exclusive
jurisdiction to hear and decide all unresolved grievances arising from the interpretation or
implementation of the Collective Bargaining Agreement and those arising from the
interpretation or enforcement of company personnel policies referred to in the immediately
preceding article. Accordingly, violations of a Collective Bargaining Agreement, except those
which are gross in character, shall no longer be treated as unfair labor practice and shall be
resolved as grievances under the Collective Bargaining Agreement. For purposes of this
article, gross violations of Collective Bargaining Agreement shall mean flagrant and/or
malicious refusal to comply with the economic provisions of such agreement.
The Commission, its Regional Offices and the Regional Directors of the Department
of Labor and Employment shall not entertain disputes, grievances or matters under the
exclusive and original jurisdiction of the Voluntary Arbitrator or panel of Voluntary Arbitrators
and shall immediately dispose and refer the same to the Grievance Machinery or Voluntary
Arbitration provided in the Collective Bargaining Agreement.
ARTICLE 275. [262] Jurisdiction over Other Labor Disputes. — The Voluntary Arbitrator or
panel of Voluntary Arbitrators, upon agreement of the parties, shall also hear and decide all
other labor disputes including unfair labor practices and bargaining deadlocks.
ARTICLE 292. [277] Miscellaneous Provisions.
(f) A special Voluntary Arbitration Fund is hereby established in the Board to subsidize the
cost of voluntary arbitration in cases involving the interpretation and implementation of the
Collective Bargaining Agreement, including the Arbitrator's fees, and for such other related
purposes to promote and develop voluntary arbitration. The Board shall administer the
Special Voluntary Arbitration Fund in accordance with the guidelines it may adopt upon the
recommendation of the Council, which guidelines shall be subject to the approval of the
Secretary of Labor and Employment. Continuing funds needed for this purpose in the initial
yearly amount of fifteen million pesos (P15,000,000.00) shall be provided in the 1989 annual
general appropriations acts.
The amount of subsidy in appropriate cases shall be determined by the Board in accordance
with established guidelines issued by it upon the recommendation of the Council.
The Fund shall also be utilized for the operation of the Council, the training and education of
Voluntary Arbitrators, and the promotion and development of a comprehensive Voluntary
Arbitration Program.
(g) The Ministry shall help promote and gradually develop, with the agreement
of labor organizations and employers, labor-management cooperation programs at
appropriate levels of the enterprise based on shared responsibility and mutual respect in
order to ensure industrial peace and improvement in productivity, working conditions and the
quality of working life.
(h) In establishments where no legitimate labor organization exists, labor-management
committees may be formed voluntarily by workers and employers for the purpose of
promoting industrial peace. The Department of Labor and Employment shall endeavor to
35
enlighten and educate the workers and employers on their rights and responsibilities
through labor education with emphasis on the policy thrusts of this Code.
• OMNIBUS RULES, BOOK V, RULE XIX, XXI, AS AMENDED BY D.O. 40-03
Rule XIX
Section 1. Establishment of grievance machinery. - The parties to a collective bargaining
agreement shall establish a machinery for the expeditious resolution of grievances arising
from the interpretation or implementation of the collective bargaining agreement and those
arising from the interpretation or enforcement of company personnel policies. Unresolved
grievances will be referred to voluntary arbitration and for this purpose, parties to a collective
bargaining agreement shall name and designate in advance a voluntary arbitrator or panel
of voluntary arbitrators, or include in the agreement a procedure for the selection of such
voluntary arbitrator or panel of voluntary arbitrators, preferably from the listing of qualified
voluntary arbitrators duly accredited by the Board.
In the absence of applicable provision in the collective bargaining agreement, a grievance
committee shall be created within ten (10) days from signing of the collective bargaining
agreement. The committee shall be composed of at least two (2) representatives each from
the members of the bargaining unit and the employer, unless otherwise agreed upon by the
parties. The representatives from among the members of the bargaining unit shall be
designated by the union.
Section 2. Procedure in handling grievances. - In the absence of a specific provision in the
collective bargaining agreement or existing company practice prescribing for the procedures
in handling grievance, the following shall apply:
(a) An employee shall present this grievance or complaint orally or in writing to the shop
steward. Upon receipt thereof, the shop steward shall verify the facts and determine whether
or not the grievance is valid.
(b) If the grievance is valid, the shop steward shall immediately bring the complaint to the
employee's immediate supervisor. The shop steward, the employee and his immediate
supervisor shall exert efforts to settle the grievance at their level.
(c) If no settlement is reached, the grievance shall be referred to the grievance committee
which shall have ten (10) days to decide the case.
Where the issue involves or arises from the interpretation or implementation of a provision in
the collective bargaining agreement, or from any order, memorandum, circular or assignment
issued by the appropriate authority in the establishment, and such issue cannot be resolved
at the level of the shop steward or the supervisor, the same may be referred immediately to
the grievance committee.
Section 3. Submission to voluntary arbitration. - Where grievance remains unresolved, either
party may serve notice upon the other of its decision to submit the issue to voluntary
arbitration. The notice shall state the issue or issues to be arbitrated, copy thereof furnished
the board or the voluntary arbitrator or panel of voluntary arbitrators named or designated in
the collective bargaining agreement. If the party upon whom the notice is served fails or
refuses to respond favorably within seven (7) days from receipt thereof, the voluntary
arbitrator or panel of voluntary arbitrators designated in the collective bargaining agreement
shall commence voluntary arbitration proceedings. Where the collective bargaining
agreement does not so designate, the board shall call the parties and appoint a voluntary
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arbitrator or panel of voluntary arbitrators, who shall thereafter commence arbitration
proceedings in accordance with the proceeding paragraph.
In instances where parties fail to select a voluntary arbitrator or panel of voluntary arbitrators,
the regional branch of the Board shall designate the voluntary arbitrator or panel of voluntary
arbitrators, as may be necessary, which shall have the same force and effect as if the parties
have selected the arbitrator.
Section 4. Jurisdiction of voluntary arbitrator or panel of voluntary arbitrators. - The voluntary
arbitrator or panel of voluntary arbitrators shall have exclusive and original jurisdiction to hear
and decide all grievances arising from the implementation or interpretation of the collective
bargaining agreements and those arising from the interpretation or enforcement of company
personnel policies which remain unresolved after exhaustion of the grievance procedure.
They shall also have exclusive and original jurisdiction, to hear and decide wage distortion
issues arising from the application of any wage orders in organized establishments, as well
as unresolved grievances arising from the interpretation and implementation of the
productivity incentive programs under RA 6971.
The National Labor Relations Commission, its regional branches and Regional Directors of
the Department of Labor and Employment shall not entertain disputes, grievances or matters
under the exclusive and original jurisdiction of the voluntary arbitrator or panel of voluntary
arbitrators and shall immediately dispose and refer the same to the appropriate grievance
machinery or voluntary arbitration provided in the collective bargaining agreement.
Upon agreement of the parties, any other labor dispute may be submitted to a voluntary
arbitrator or panel of voluntary arbitrators. Before or at any stage of the compulsory
arbitration process, the parties may opt to submit their dispute to voluntary arbitration.
Section 5. Powers of voluntary arbitrator or panel of voluntary arbitrators. - The voluntary
arbitrator or panel of voluntary arbitrators shall have the power to hold hearings, receive
evidence and take whatever action is necessary to resolve the issue/s subject of the dispute.
The voluntary arbitrator or panel of voluntary arbitrators may conciliate or mediate to aid the
parties in reaching a voluntary settlement of the dispute.
Section 6. Procedure. - All parties to the dispute shall be entitled to attend the arbitration
proceedings. The attendance of any third party or the exclusion of any witness from the
proceedings shall be determined by the voluntary arbitrator or panel of voluntary arbitrators.
Hearing may be adjourned for cause or upon agreement by the parties.
Unless the parties agree otherwise, it shall be mandatory for the voluntary arbitrator or panel
of voluntary arbitrators to render an award or decision within twenty (20) calendar days from
the date of submission for resolution.
Rule XXI
Failure on the part of the voluntary arbitrator to render a decision, resolution, order or award
within the prescribed period, shall upon complaint of a party, be sufficient ground for the
Board to discipline said voluntary arbitrator, pursuant to the guidelines issued by the
Secretary. In cases that the recommended sanction is de-listing, it shall be unlawful for the
voluntary arbitrator to refuse or fail to turn over to the board, for its further disposition, the
records of the case within ten (10) calendar days from demand thereof.
Section 7. Finality of Award/Decision. - The decision, order, resolution or award of the
voluntary arbitrator or panel of voluntary arbitrators shall be final and executory after ten (10)
calendar days from receipt of the copy of the award or decision by the parties and it shall not
be subject of a motion for reconsideration.
36
Section 8. Execution of Award/Decision. - Upon motion of any interested party, the voluntary
arbitrator or panel of voluntary arbitrators or the Labor Arbiter in the region where the movant
resides, in case of the absence or incapacity for any reason of the voluntary arbitrator or
panel of voluntary arbitrators who issued the award or decision, may issue a writ of execution
requiring either the Sheriff of the Commission or regular courts or any public official whom
the parties may designate in the submission agreement to execute the final decision, order
or award.
Section 9. Cost of voluntary arbitration and voluntary arbitrator's fee. - The parties to a
collective bargaining agreement shall provide therein a proportionate sharing scheme on the
cost of voluntary arbitration including the voluntary arbitrator's fee. The fixing of fee of
voluntary arbitrators or panel of voluntary arbitrators, whether shouldered wholly by the
parties or subsidized by the Special Voluntary Arbitration Fund, shall take into account the
following factors:
(a) Nature of the case;
(b) Time consumed in hearing the case;
(c) Professional standing of the voluntary arbitrator;
(d) Capacity to pay of the parties; and
(e) Fees provided for in the Revised Rules of Court.
Unless the parties agree otherwise, the cost of voluntary arbitration proceedings and
voluntary arbitrator's fee shall be shared equally by the parties
Parties are encouraged to set aside funds to answer for the cost of voluntary arbitration
proceedings including voluntary arbitrator's fee. In the event the said funds are not sufficient
to cover such expenses, an amount by way of subsidy taken out of the Special Voluntary
Arbitration fund may be availed of by either or both parties subject to the guidelines on
voluntary arbitration to be issued by the Secretary.
Section 10. Maintenance of case records by the Board. - The Board shall maintain all records
pertaining to a voluntary arbitration case. In all cases, the Board shall be furnished a copy of
all pleadings and submitted to the voluntary arbitrator as well as the orders, awards and
decisions issued by the voluntary arbitrator.
The records of a case shall be turned over by the voluntary arbitrator or panel of voluntary
arbitrators to the concerned regional branch of the Board within ten (10) days upon
satisfaction of the final arbitral award/order/decision.
Section 1. Creation of labor-management and other councils. - The Department shall
promote the formation of labor-management councils in organized and unorganized
establishments to enable the workers to participate in policy and decision-making processes
in the establishment, insofar as said processes will directly affect their rights, benefits and
welfare, except those which are covered by collective bargaining agreements or are
traditional areas of bargaining.
The Department shall promote other labor-management cooperation schemes and, upon its
own initiative or upon the request of both parties, may assist in the formulation and
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 development of programs and projects on productivity, occupational safety and health,
improvement of quality of work life, product quality improvement, and other similar scheme.
In line with the foregoing, the Department shall render, among others, the following services:
(a) Conduct awareness campaigns;
(b) Assist the parties in setting up labor-management structures, functions and procedures;
(c) Provide process facilitators upon request of the parties; and
(d) Monitor the activities of labor-management structures as may be necessary and conduct
studies on best practices aimed at promoting harmonious labor-management relations.
Section 2. Selection of representatives. - In organized establishments, the workers'
representatives to the council shall be nominated by the exclusive bargaining representative.
In establishments where no legitimate labor organization exists, the workers representative
shall be elected directly by the employees at large.
CASES ASSIGNED:
1. Union of Filipro Employees v. Nestle Phils.
2. PAL v. PALEA
3. San Miguel Foods v. San Miguel Corporation Employees Union
4. Capitol Medical Center v. Trajano
5. Standard Chartered Bank Employees Union v. Confesor
6. General Milling Corporation v. CA
7. Halagueña, et al., and other flight attendants of Philippine Airlines v. Philippine Airlines
8. PASSI v. Boclot
9. FVC Labor Union-Philippine Transport and General Workers Organization (FVCLU-
PTGWO) v. Sama-Samang Nagkakaisang Manggagawa Sa FVC-Solidarity of
Independent And General Labor Organizations (SANAMA-FVC-SIGLO)
10. RFM Corporation v. KAMPI-NAFLU-KMU
11. Fulache v. ABS-CBN
12. Employees Union of Bayer v. Bayer Phils.,
13. General Milling Corp. Independent Labor Union v. General Milling
14. Malayan Employees Association v. Malayan Insurance Co.
15. Santuyo v. Remerco Garments
16. Insular Hotel Employees Union v. Waterfront Insular Hotel
17. Cirtek Employees Labor Union v. Cirtek Electronics
18. Eastern Telecoms v. Eastern Telecoms Employees Union
19. PNCC Skyway Traffic Management & Security Division Workers Organization v. PNCC
Skyway Corp.
20. Supreme Steel v. Nagkakaisang Manggagawa sa Supreme
21. Wesleyan University v. Wesleyan University Faculty and Staff Association
22. Philippine Airlines v. Hassaram
23. SONEDCO Workers Free Labor Union v. URC
37
UNFAIR LABOR PRACTICE (ARTS. 258-260, 274)
ART. 258. [247] Concept of Unfair Labor Practice and Procedure for Prosecution
Thereof. – Unfair labor practices violate the constitutional right of workers and employees to
self-organization, are inimical to the legitimate interests of both labor and management,
including their right to bargain collectively and otherwise deal with each other in an
atmosphere of freedom and mutual respect, disrupt industrial peace and hinder the promotion
of healthy and stable labor management relations.
Consequently, unfair labor practices are not only violations of the civil rights of both labor and
management but are also criminal offenses against the State which shall be subject to
prosecution and punishment as herein provided.
Subject to the exercise by the President or by the Secretary of Labor and Employment of the
powers vested in them by Articles 263 and 264 of this Code, the civil aspects of all cases
involving unfair labor practices, which may include claims for actual, moral, exemplary, and
other forms of damages, attorney’s fees, and other affirmative relief, shall be under the
jurisdiction of the Labor Arbiters. The Labor Arbiters shall give utmost priority to the hearing
and resolution of all cases involving unfair labor practices. They shall resolve such cases
within thirty (30) calendar days from the time they are submitted for decision.
Recovery of civil liability in the administrative proceedings shall bar recovery under the Civil
Code.
No criminal prosecution under this Title may be instituted without a final judgment finding that
an unfair labor practice was committed, having been first obtained in the preceding
paragraph. During the pendency of such administrative proceeding, the running of the period
of prescription of the criminal offense herein penalized shall be considered interrupted:
Provided, however, That the final judgment in the administrative proceedings shall not be
binding in the criminal case nor be considered as evidence of guilt but merely as proof of
compliance of the requirements therein set forth.
ART. 259. [248] Unfair Labor Practices of Employers. – It shall be unlawful for an employer
to commit any of the following unfair labor practices:
(a) To interfere with, restrain or coerce employees in the exercise of their right to self-
organization;
(b) To require as a condition of employment that a person or an employee shall not join a
labor organization or shall withdraw from one to which he belongs;
(c) To contract out services or functions being performed by union members when such will
interfere with, restrain or coerce employees in the exercise of their right to self-organization;
(d) To initiate, dominate, assist or otherwise interfere with the formation or administration of
any labor organization, including the giving of financial or other support to it or its organizers
or supporters;
(e) To discriminate in regard to wages, hours of work and other terms and conditions of
employment in order to encourage or discourage membership in any labor organization.
Nothing in this Code or in any other law shall stop the parties from requiring membership in
a recognized collective bargaining agent as a condition for employment, except those
employees who are already members of another union at the time of the signing of the
collective bargaining agreement. Employees of an appropriate bargaining unit who are not
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members of the recognized collective bargaining agent may be assessed a reasonable fee
equivalent to the dues and other fees paid by members of the recognized collective
bargaining agent, if such non-union members accept the benefits under the collective
bargaining agreement: Provided, That the individual authorization required under Article 242,
paragraph (o) of this Code shall not apply to the non-members of the recognized collective
bargaining agent;
(f) To dismiss, discharge or otherwise prejudice or discriminate against an employee for
having given or being about to give testimony under this Code;
(g) To violate the duty to bargain collectively as prescribed by this Code;
(h) To pay negotiation or attorney’s fees to the union or its officers or agents as part of the
settlement of any issue in collective bargaining or any other dispute; or
(i) To violate a collective bargaining agreement.
The provisions of the preceding paragraph notwithstanding, only the officers and agents of
corporations, associations or partnerships who have actually participated in, authorized or
ratified unfair labor practices shall be held criminally liable
ART. 260. [249] Unfair Labor Practices of Labor Organizations. – It shall be unfair labor
practice for a labor organization, its officers, agents or representatives:
(a) To restrain or coerce employees in the exercise of their right to self-organization.
However, a labor organization shall have the right to prescribe its own rules with respect to
the acquisition or retention of membership;
(b) To cause or attempt to cause an employer to discriminate against an employee, including
discrimination against an employee with respect to whom membership in such organization
has been denied or to terminate an employee on any ground other than the usual terms and
conditions under which membership or continuation of membership is made available to other
members;
(c) To violate the duty, or refuse to bargain collectively with the employer, provided it is the
representative of the employees;
(d) To cause or attempt to cause an employer to pay or deliver or agree to pay or deliver any
money or other things of value, in the nature of an exaction, for services which are not
performed or not to be performed, including the demand for fee for union negotiations;
(e) To ask for or accept negotiation or attorney’s fees from employers as part of the settlement
of any issue in collective bargaining or any other dispute; or
(f) To violate a collective bargaining agreement.
The provisions of the preceding paragraph notwithstanding, only the officers, members of
governing boards, representatives or agents or members of labor associations or
organizations who have actually participated in, authorized or ratified unfair labor practices
shall be held criminally liable.
38
ART. 274. [261] Jurisdiction of Voluntary Arbitrators and Panel of Voluntary
Arbitrators. – The Voluntary Arbitrator or panel of Voluntary Arbitrators shall have original
and exclusive jurisdiction to hear and decide all unresolved grievances arising from the
interpretation or implementation of the Collective Bargaining Agreement and those arising
from the interpretation or enforcement of company personnel policies referred to in the
immediately preceding article. Accordingly, violations of a Collective Bargaining Agreement,
except those which are gross in character, shall no longer be treated as unfair labor practice
and shall be resolved as grievances under the Collective Bargaining Agreement. For
purposes of this article, gross violations of Collective Bargaining Agreement shall mean
flagrant and/or malicious refusal to comply with the economic provisions of such agreement.
The Commission, its Regional Offices and the Regional Directors of the Department of Labor
and Employment shall not entertain disputes, grievances or matters under the exclusive and
original jurisdiction of the Voluntary Arbitrator or panel of Voluntary Arbitrators and shall
immediately dispose and refer the same to
CASES ASSIGNED
1. Employees Union of Bayer Phils. v. Bayer Phils., December 6, 2010
2. Prince Transport v. Garcia, January 12, 2011
3. Manila Mining Employees Corp. v. Manila Mining, September 29, 2010
4. Central Azucarera de Bais Employees Union v. Central Azucarera de Bais, Nov. 17,
2010
5. BPI Employees Union-Davao v. BPI, July 24, 2013
6. Pepsi Cola Products v. Molon et al., February 18, 2013
7. Royal Plant Workers Union v. Coca Cola Bottlers, April 15, 2013
8. Goya v. Goya Employees Union, January 21, 2013
9. T&H Shopfitters v. T&H Shopfitters Workers Union, February 26, 2014
10. Mendoza v. Officers of Manila Water Employees Union, January 25, 2016
11. CEPALCO v. CEPALCO Employees Labor Union, June 20, 2016
STRIKES, LOCKOUTS, AND CONCERTED ACTION
• (ARTS. 219 (O-S), 278-281, 266) OMNIBUS RULES, BOOK V, RULE XXII, AS AMENDED BY D.O.
40-03, AND FURTHER AMENDED BY D.O. 40-A, D.O. 40-G-03 (2010), AND D.O. 40-H-13 (2013)
ART. 219. [212] Definitions. –
(o) "Strike" means any temporary stoppage of work by the concerted action of employees as
a result of an industrial or labor dispute.
(p) "Lockout" means any temporary refusal of an employer to furnish work as a result of an
industrial or labor dispute.
(q) "Internal union dispute" includes all disputes or grievances arising from any violation of or
disagreement over any provision of the constitution and by laws of a union, including any
violation of the rights and conditions of union membership provided for in this Code.
(r) "Strike-breaker" means any person who obstructs, impedes, or interferes with by force,
violence, coercion, threats, or intimidation any peaceful picketing affecting wages, hours or
conditions of work or in the exercise of the right of self-organization or collective bargaining.
(s) "Strike area" means the establishment, warehouses, depots, plants or offices, including
the sites or premises used as runaway shops, of the employer struck against, as well as the
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immediate vicinity actually used by picketing strikers in moving to and fro before all points of
entrance to and exit from said establishment.
ART. 278. [263] Strikes, Picketing, and Lockouts. – (a) It is the policy of the State to
encourage free trade unionism and free collective bargaining.
(b) Workers shall have the right to engage in concerted activities for purposes of collective
bargaining or for their mutual benefit and protection. The right of legitimate labor
organizations to strike and picket and of employers to lockout, consistent with the national
interest, shall continue to be recognized and respected. However, no labor union may strike
and no employer may declare a lockout on grounds involving inter-union and intra-union
disputes.
(c) In cases of bargaining deadlocks, the duly certified or recognized bargaining agent may
file a notice of strike or the employer may file a notice of lockout with the Ministry at least 30
days before the intended date thereof. In cases of unfair labor practice, the period of notice
shall be 15 days and in the absence of a duly certified or recognized bargaining agent, the
notice of strike may be filed by any legitimate labor organization in behalf of its members.
However, in case of dismissal from employment of union officers duly elected in accordance
with the union constitution and by-laws, which may constitute union busting where the
existence of the union is threatened, the 15-day cooling-off period shall not apply and the
union may take action immediately.
(d) The notice must be in accordance with such implementing rules and regulations as the
Minister of Labor and Employment may promulgate.
(e) During the cooling-off period, it shall be the duty of the Ministry to exert all efforts at
mediation and conciliation to effect a voluntary settlement. Should the dispute remain
unsettled until the lapse of the requisite number of days from the mandatory filing of the
notice, the labor union may strike or the employer may declare a lockout.
(f) A decision to declare a strike must be approved by a majority of the total union membership
in the bargaining unit concerned, obtained by secret ballot in meetings or referenda called
for that purpose. A decision to declare a lockout must be approved by a majority of the board
of directors of the corporation or association or of the partners in a partnership, obtained by
secret ballot in a meeting called for that purpose. The decision shall be valid for the duration
of the dispute based on substantially the same grounds considered when the strike or lockout
vote was taken. The Ministry may, at its own initiative or upon the request of any affected
party, supervise the conduct of the secret balloting. In every case, the union or the employer
shall furnish the Ministry the results of the voting at least seven days before the intended
strike or lockout, subject to the cooling-off period herein provided.
(g) 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 Secretary of Labor and
Employment may assume jurisdiction over the dispute and decide it or certify the same to the
Commission for compulsory arbitration. Such assumption or certification shall have the effect
of automatically enjoining the intended or impending strike or lockout as specified in the
assumption or certification order. If one has already taken place at the time of assumption or
certification, all striking or locked out employees shall immediately return to work and the
employer shall immediately resume operations and readmit all workers under the same terms
and conditions prevailing before the strike or lockout. The Secretary of Labor and
Employment or the Commission may seek the assistance of law enforcement agencies to
ensure compliance with this provision as well as with such orders as he may issue to enforce
the same.
39
In line with the national concern for and the highest respect accorded to the right of patients
to life and health, strikes and lockouts in hospitals, clinics and similar medical institutions
shall, to every extent possible, be avoided, and all serious efforts, not only by labor and
management but government as well, be exhausted to substantially minimize, if not prevent,
their adverse effects on such life and health, through the exercise, however legitimate, by
labor of its right to strike and by management to lockout. In labor disputes adversely affecting
the continued operation of such hospitals, clinics or medical institutions, it shall be the duty
of the striking union or locking-out employer to provide and maintain an effective skeletal
workforce of medical and other health personnel, whose movement and services shall be
unhampered and unrestricted, as are necessary to insure the proper and adequate protection
of the life and health of its patients, most especially emergency cases, for the duration of the
strike or lockout. In such cases, therefore, the Secretary of Labor and Employment may
immediately assume, within twenty four (24) hours from knowledge of the occurrence of such
a strike or lockout, jurisdiction over the same or certify it to the Commission for compulsory
arbitration. For this purpose, the contending parties are strictly enjoined to comply with such
orders, prohibitions and/or injunctions as are issued by the Secretary of Labor and
Employment or the Commission, under pain of immediate disciplinary action, including
dismissal or loss of employment status or payment by the locking-out employer of
backwages, damages and other affirmative relief, even criminal prosecution against either or
both of them.
The foregoing notwithstanding, the President of the Philippines shall not be precluded from
determining the industries that, in his opinion, are indispensable to the national interest, and
from intervening at any time and assuming jurisdiction over any such labor dispute in order
to settle or terminate the same.
(h) Before or at any stage of the compulsory arbitration process, the parties may opt to submit
their dispute to voluntary arbitration.
(i) The Secretary of Labor and Employment, the Commission or the voluntary arbitrator or
panel of voluntary arbitrators shall decide or resolve the dispute within thirty (30) calendar
days from the date of the assumption of jurisdiction or the certification or submission of the
dispute, as the case may be. The decision of the President, the Secretary of Labor and
Employment, the Commission or the voluntary arbitrator shall be final and executory ten (10)
calendar days after receipt thereof by the parties
ART. 279. [264] Prohibited activities. – (a) No labor organization or employer shall declare
a strike or lockout without first having bargained collectively in accordance with Title VII of
this Book or without first having filed the notice required in the preceding Article or without
the necessary strike or lockout vote first having been obtained and reported to the Ministry.
No strike or lockout shall be declared after assumption of jurisdiction by the President or the
Minister or after certification or submission of the dispute to compulsory or voluntary
arbitration or during the pendency of cases involving the same grounds for the strike or
lockout.
Any worker whose employment has been terminated as a consequence of any unlawful
lockout shall be entitled to reinstatement with full backwages. Any union officer who
knowingly participates in an illegal strike and any worker or union officer who knowingly
participates in the commission of illegal acts during a strike may be declared to have lost his
employment status: Provided, That mere participation of a worker in a lawful strike shall not
constitute sufficient ground for termination of his employment, even if a replacement had
been hired by the employer during such lawful strike.
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(b) No person shall obstruct, impede, or interfere with by force, violence, coercion, threats or
intimidation, any peaceful picketing by employees during any labor controversy or in the
exercise of the right to self-organization or collective bargaining, or shall aid or abet such
obstruction or interference.
(c) No employer shall use or employ any strike-breaker, nor shall any person be employed
as a strike-breaker.
(d) No public official or employee, including officers and personnel of the New Armed Forces
of the Philippines or the Integrated National Police, or armed person, shall bring in, introduce
or escort in any manner, any individual who seeks to replace strikers in entering or leaving
the premises of a strike area, or work in place of the strikers. The police force shall keep out
of the picket lines unless actual violence or other criminal acts occur therein: Provided, That
nothing herein shall be interpreted to prevent any public officer from taking any measure
necessary to maintain peace and order, protect life and property, and/or enforce the law and
legal orders.
(e) No person engaged in picketing shall commit any act of violence, coercion or for lawful
purposes, or obstruct public thoroughfares.
ART. 280. [265] Improved Offer Balloting. - In an effort to settle a strike, the Department
of Labor and Employment shall conduct a referendum by secret balloting on the improved
offer of the employer on or before the 30th day of the strike. When at least a majority of the
union members vote to accept the improved offer the striking workers shall immediately return
to work and the employer shall thereupon readmit them upon the signing of the agreement.
In case of a lockout, the Department of Labor and Employment shall also conduct a
referendum by secret balloting on the reduced offer of the union on or before the 30th day of
the lockout. When at least a majority of the board of directors or trustees or the partners
holding the controlling interest in the case of a partnership vote to accept the reduced offer,
the workers shall immediately return to work and the employer shall thereupon readmit them
upon the signing of the agreement.
ART. 281. [266] Requirement for Arrest and Detention. - Except on grounds of national
security and public peace or in case of commission of a crime, no union members or union
organizers may be arrested or detained for union activities without previous consultations
with the Secretary of Labor
ART. 266. [254] Injunction Prohibited. - No temporary or permanent injunction or
restraining order in any case involving or growing out of labor disputes shall be issued by any
court or other entity, except as otherwise provided in Articles 218 and 264 of this Code.
RULE XXII
CONCILIATION, STRIKES AND LOCKOUTS
Section 15. Assumption by the Secretary of Labor and Employment. • When a labor
dispute causes or is likely to cause a strike or lockout in an industry indispensable to the
national interest, the Secretary of Labor and Employment may assume jurisdiction over the
dispute and decide it or certify the same to the National Labor Relations Commission for
compulsory arbitration, provided, that any of the following conditions is present:
40
1. Both parties have requested the Secretary of Labor and Employment to assume
jurisdiction over the labor dispute; or
2. After a conference called by the Office of the Secretary of Labor and Employment on the
propriety of its issuance, motu proprio or upon a request or petition by either parties to the
labor dispute.
Such assumption shall have the effect of automatically enjoining an impending strike or
lockout. If a strike/lockout has already taken place at the time of assumption, all striking or
locked out employees and other employees subject of the notice of strike shall immediately
return to work and the employer shall immediately resume operations and readmit all
employees under the same terms and conditions prevailing before the strike or lockout.
Notwithstanding the foregoing, parties to the case may agree at any time to submit the
dispute to the Secretary of Labor or his/her duly authorized representative as Voluntary
Arbitrator or to a duly accredited Voluntary Arbitrator or to a panel of Voluntary Arbitrators.
SECTION 2. A new Section 16 is hereby added to read as follows:
"SECTION 16. INDUSTRIES INDISPENSABLE TO THE NATIONAL INTEREST. - FOR
THE GUIDANCE OF THE WORKERS AND EMPLOYERS IN THE FILING OF PETITION
FOR ASSUMPTION OF JURISDICTION, THE FOLLOWING INDUSTRIES/SERVICES ARE
HEREBY RECOGNIZED AS DEEMED INDISPENSABLE TO THE NATIONAL INTEREST:
a. HOSPITAL SECTOR;
b. ELECTRIC POWER INDUSTRY;
c. WATER SUPPLY SERVICES, TO EXCLUDE SMALL WATER SUPPLY SERVICES
SUCH AS BOTTLING AND REFILLING STATIONS;
d. AIR TRAFFIC CONTROL; AND
e. SUCH OTHER INDUSTRIES AS MAYBE RECOMMENDED BY THE NATIONAL
TRIPARTITE INDUSTRIAL PEACE COUNCIL (TIPC).
SECTION 3. Section 16 of Department Order No. 40-G-03, Series of 2010, is hereby
renumbered as Section 17 which provides:
Section 17. Requirement for Minimum Operational Service. - In labor disputes adversely
affecting the continued operation of hospitals, clinics or medical institutions, it shall be the
duty of the striking union or locking-out employer to provide and maintain an effective skeletal
workforce of medical and other health personnel, whose movement and services shall be
unhampered and unrestricted, as are necessary to ensure the proper and adequate
protection of the life and health of its patients, most especially emergency cases, for the
duration of the strike or lockout.
SECTION 4. Section 17 of Department Order No. 40-G-03, Series of 2010, is hereby
renumbered as Section 18 and amended to read as follows:
"Section 18. Decision on the assumed labor dispute; finality. • WITHIN FIVE (5) DAYS
FROM THE ISSUANCE OF THE ASSUMPTION OR CERTIFICATION ORDER, A
PRELIMINARY CONFERENCE OR HEARING SHALL IMMEDIATELY BE CONDUCTED BY
THE OFFICE OF THE SECRETARY OF LABOR AND EMPLOYMENT, THE NLRC OR THE
VOLUNTARY ARBITRATOR OR PANEL OF VOLUNTARY ARBITRATORS AS THE CASE
MAYBE.
The decision of the Secretary of Labor and Employment, the NLRC or Voluntary Arbitrator or
Panel of Voluntary Arbitrators shall be rendered within thirty (30) calendar days from
submission of the case for resolution and shall be final and executory ten (10) calendar days
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 22. Fadriquelan v. Monterey Foods, June 8, 2011
after receipt thereof by the parties."
23. Magdala Multipurpose & Livelihood v. KMLMS, October 19, 2011
24. Automotive Engine Rebuilders v. Progresibong Unyon, July 13, 2011; January 16, 2013
SECTION 5. Sections 18 and 19 of Department Order No. 40-G-03, Series of 2010, are
25. Naranjo v. Biomedica Heath Care, September 19, 2012
hereby renumbered as Sections 19 and 20, respectively, which provide:
26. VCMC v. Yballe, January 15, 2014
27. Tabangao Shell Refinery Employees Association v. Pilipinas Shell, April 7, 2014
Section 19. Prohibition on law enforcement agencies or public officials/employees,
28. PMI Faculty and Employees Union v. PMI Colleges, June 19, 2016
armed persons, private security guards and similar personnel in the private security
29. The Hongkong Shanghai Bangking Corporation Employees Union v. NLRC
agency, Exception. - No public official or employee, including officers and personnel of the
30. Ramirez v. Polyson Industries, October 19, 2016
Armed Forces of the Philippines or the Philippine National Police, or armed person, private
31. Guagua National Colleges v. Guagua National Colleges Faculty Labor Union, July 13,
security guards and similarpersonnel in the private security agency shall bring in, introduce
2016
or escort in any manner, any individual who seeks to replace strikers in entering or leaving
the premises of a strike area, or work in place of the strikers. The police force shall keep out
of the picketlines unless actual violence or other criminal acts
occur therein.

But any public officer, the Secretary of Labor and Employment or the NLRC may seek the
assistance of law enforcement agencies to maintain peace and order, protect life and
property, and/or enforce the law and legal order pursuant to the provisions of the Joint DOLE-
PNP-PEZA Guidelines in the Conduct of PNP Personnel, Economic Zone Police and Security
Guards, Company Security Guards and Similar Personnel During Labor Disputes.

Section 20. Criminal prosecution. - The regular courts shall have jurisdiction over any
criminal action under Article 272 of the Labor Code, as amended, but subject to the required
clearance from the DOLE on cases arising out of or related to a labor dispute pursuant to the
Ministry Of Justice (now Department of Justice) Circular No. 15, Series of 1982, and Circular
No. 9, Series of 1986.

SECTION 6. Repealing Clause. - All rules, regulations, issuances, circulars and

administrative orders inconsistent herewith are repealed or modified accordingly.

SECTION 7. Effectivity. - This Order shall take effect fifteen (15) days after its publication in
a newspaper of general circulation.

CASES ASSIGNED
1. Bukluran ng Manggagawa sa Clothman Knitting v. CA, January 17, 2005
2. Steel Corporation v. SCP Employees Union, April 16, 2008
3. Biflex Phils. v. Filflex Industrial & Manufacturing Corp., Dec. 19, 2006
4. Bascon & Cole v. CA, February 5, 2004
5. Toyota Motor Phils. Corp. Workers Association v. Toyota Motor Phils, Oct. 19, 2007
6. NUWHRAIN Dusit Hotel Nikko Chapter v. CA, November 11, 2008
7. Capitol Medical Center v. NLRC, April 26, 2005
8. Trans-Asia Shipping Lines-Unlicensed Crews Employees Union v. CA, July 7, 2004
9. Manila Diamond Hotel Employees Union v. CA, Secretary, December 16, 2004
10. Philcom Employees Union v. Phil. Global Communications, July 17, 2006
11. Nissan Motors v. Secretary, June 21, 2006
12. FEU-NRMF v. FEU-NRMFEA-AFW, October 16, 2006
13. Pilipino Telephone Corporation v. PILTEA, June 22, 2007
14. Club Filipino v. Bautista, July 13, 2009
15. Soriano Aviation v. Employees Association of A. Soriano Aviation, August 14, 2009
16. Jackbilt Industries v. Jackbilt Employees Union, March 20, 2009
17. Alcantara & Sons v. CA, GR G.R. No. 155109, September 29, 2010
18. PHIMCO Industries, Inc. v. PILA, August 11, 2010
19. Solidbank Corporation v. Gamier, November 15, 2010
20. Escario v. NLRC, September 27, 2010
21. Bagong Pagkakaisa ng Manggagawa sa Triumph v. Secretary, July 5, 2010
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SECURITY OF TENURE
• LABOR CODE: ARTS. 292 (B), 294, 297-302; D.O. 147-15 (SEPARATE FILE)
ARTICLE 292. [277] Miscellaneous Provisions. — (b) Subject to the constitutional right of
workers to security of tenure and their right to be protected against dismissal except for a just
and authorized cause and without prejudice to the requirement of notice under Article 283 of
this Code, 227 the employer shall furnish the worker whose employment is sought to be
terminated a written notice containing a statement of the causes for termination and shall
afford the latter ample opportunity to be heard and to defend himself with the assistance of
his representative if he so desires in accordance with company rules and regulations
promulgated pursuant to guidelines set by the Department of Labor and Employment. Any
decision taken by the employer shall be without prejudice to the right of the worker to contest
the validity or legality of his dismissal by filing a complaint with the regional branch of the
National Labor Relations Commission. The burden of proving that the termination was for a
valid or authorized cause shall rest on the employer. The Secretary of the Department of
Labor and Employment may suspend the effects of the termination pending resolution of the
dispute in the event of a prima facie finding by the appropriate official of the Department of
Labor and Employment before whom such dispute is pending that the termination may cause
a serious labor dispute or is in implementation of a mass lay-off.
ARTICLE 294. [279] Security of Tenure. — In cases of regular employment, the employer
shall not terminate the services of an employee except for a just cause or when authorized
by this Title. An employee who is unjustly dismissed from work shall be entitled to
reinstatement without loss of seniority rights and other privileges and to his full backwages,
inclusive of allowances, and to his other benefits or their monetary equivalent computed from
the time his compensation was withheld from him up to the time of his actual reinstatement
ARTICLE 297. [282] Termination by Employer. — An employer may terminate an
employment for any of the following causes:
(a) Serious misconduct or willful disobedience by the employee of the lawful orders of his
employer or representative in connection with his work;
(b) Gross and habitual neglect by the employee of his duties;
(c) Fraud or willful breach by the employee of the trust reposed in him by his employer or
duly authorized representative;
(d) Commission of a crime or offense by the employee against the person of his employer or
any immediate member of his family or his duly authorized representatives; and
(e) Other causes analogous to the foregoing.
ARTICLE 298. [283] Closure of Establishment and Reduction of Personnel. — The employer
may also terminate the employment of any employee due to the installation of labor-saving
devices, redundancy, retrenchment to prevent losses or the closing or cessation of operation
of the establishment or undertaking unless the closing is for the purpose of circumventing the
provisions of this Title, by serving a written notice on the workers and the Ministry of Labor
and Employment at least one (1) month before the intended date thereof. In case of
termination due to the installation of labor-saving devices or redundancy, the worker affected
thereby shall be entitled to a separation pay equivalent to at least his one (1) month pay or
42
to at least one (1) month pay for every year of service, whichever is higher. In case of
retrenchment to prevent losses and in cases of closures or cessation of operations of
establishment or undertaking not due to serious business losses or financial reverses, the
separation pay shall be equivalent to one (1) month pay or at least one-half (1/2) month pay
for every year of service, whichever is higher. A fraction of at least six (6) months shall be
considered one (1) whole year.
ARTICLE 299. [284] Disease as Ground for Termination. — An employer may terminate the
services of an employee who has been found to be suffering from any disease and whose
continued employment is prohibited by law or is prejudicial to his health as well as to the
health of his co-employees: Provided, That he is paid separation pay equivalent to at least
one (1) month salary or to one-half (1/2) month salary for every year of service, whichever is
greater, a fraction of at least six (6) months being considered as one (1) whole year.
ARTICLE 300. [285] Termination by Employee. — (a) An employee may terminate without
just cause the employee-employer relationship by serving a written notice on the employer
at least one (1) month in advance. The employer upon whom no such notice was served may
hold the employee liable for damages.
(b) An employee may put an end to the relationship without serving any notice on the
employer for any of the following just causes:
1. Serious insult by the employer or his representative on the honor and person of the
employee;
2. Inhuman and unbearable treatment accorded the employee by the employer or his
representative;
3. Commission of a crime or offense by the employer or his representative against the person
of the employee or any of the immediate members of his family; and
4. Other causes analogous to any of the foregoing.
ARTICLE 301. [286] When Employment not Deemed Terminated. — The bonafide
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 military or civic duty shall not terminate
employment. In all such cases, the 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 one (1) month from the resumption of operations of his employer or from his relief from
the military or civic duty.
ARTICLE 302. [287] Retirement. — Any employee may be retired upon reaching the
retirement age established in the collective bargaining agreement or other applicable
employment contract.
In case of retirement, the employee shall be entitled to receive such retirement benefits as
he may have earned under existing laws and any collective bargaining agreement and other
agreements: Provided, however, That an employee's retirement benefits under any collective
bargaining and other agreements shall not be less than those provided therein.
In the absence of a retirement plan or agreement providing for retirement benefits of
employees in the establishment, an employee upon reaching the age of sixty (60) years or
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 29. Alaska Milk Corporation v. Ponce, July 26, 2017
more, but not beyond sixty-five (65) years which is hereby declared the compulsory
30. Allan John Uy Reyes v. Global Beer Below Zero, Inc., October 4, 2017
retirement age, who has served at least five (5) years in the said establishment, may retire
31. Bravo v. Urios College, June 7, 2017
and shall be entitled to retirement pay equivalent to at least one-half (1/2) month salary for
32. Gaite v. Filipino Society of Composers, Authors and Publishers, Inc., August 8, 2018
every year of service, a fraction of at least six (6) months being considered as one whole
year.
AUTHORIZED CAUSES
Unless the parties provide for broader inclusions, the term one-half (1/2) month salary shall
CASES ASSIGNED
mean fifteen (15) days plus one-twelfth (1/12) of the 13th month pay and the cash equivalent
1. Andrada v. NLRC, December 28, 2007
of not more than five (5) days of service incentive leaves.
2. Manatad v. PT&T, March 7, 2008
3. Linton Commercial v. Hellera, October 10, 2007
An underground mining employee upon reaching the age of fifty (50) years or more, but not
4. AMA Computer College v. Garcia, April 14, 2008
beyond sixty (60) years which is hereby declared the compulsory retirement age for
5. GSWU-NAFLU-KMU v. NLRC, October 17, 2006
underground mine workers, who has served at least five (5) years as underground mine
6. Dickinson Philippines v. NLRC, November 15, 2005
worker, may retire and shall be entitled to all the retirement benefits provided for in this Article.
7. PT & T v. NLRC, April 15, 2005
8. Oriental Petroleum v. Fuentes, October 14, 2005
Retail, service and agricultural establishments or operations employing not more than ten
9. FASAP v. PAL, July 22, 2008 and October 2, 2009
(10) employees or workers are exempted from the coverage of this provision.
10. General Milling Corp. v. Viajar, January 30, 2013
11. Am-Phil Food v. Padilla, October 1, 2014
Violation of this provision is hereby declared unlawful and subject to the penal provisions
12. SPI Technologies v. Mapua, April 7, 2014
under Article 288 230 of this Code.
13. PNCC Skyway Corporation v. Secretary of Labor and Employment, April 19, 2016 and
14. February 6, 2017
Nothing in this Article shall deprive any employee of benefits to which he may be entitled
15. Manggagawa ng Komunikasyon sa Pilipinas v. Philippine Long Distance Telephone
under existing laws or company policies or practices.
Co., April
16. 19, 2017
JUST CAUSES 17. La Consolacion College of Manila v. Pascua, March 14, 2018

CASES ASSIGNED CONSTRUCTIVE DISMISSAL / PREVENTIVE SUSPENSION

1. Salas v. Aboitiz One, June 27, 2008
2. RB Michael Press v. Galit, February 13, 2008 CASES ASSIGNED
3. San Miguel Corporation v. NLRC, April 16, 2008 1. Maricalum v. Decorion, April 12 2006
4. LBC Express v. Mateo, June 9, 2009 2. Uniwide Sales v. NLRC, February 29, 2008
5. Genuino v. NLRC, December 4, 2007 3. Norkis Trading v. Genilo, February 11, 2008
6. Bughaw v. Treasure Island, March 28, 2008 4. Fungo v. Lourdes School, July 27, 2007
7. Moreno v. San Sebastian College, March 28, 2008 5. The University of the Immaculate Conception v. NLRC, January 26, 2011
8. Janssen Pharmaceutica v. Silayro, February 26, 2008 6. Robinsons Galleria/Robinsons Supermarket Corp. v. Sanchez, January 19, 2011
9. Suico v. NLRC, January 30, 2007 7. Dreamland Hotel v. Johnson, March 12, 2014
10. Perez & Doria v. PT&T, April 7, 2009 8. Intec Cebu, Inc. v. CA, June 22, 2016
11. Bacolod-Talisay Realty v. Dela Cruz, April 30, 2009 9. Sumifru (Philippines) Corporation v. Baya, April 17, 2017
12. SAMASAH-NUWHRAIN v. VA Magsalin, June 6, 2011 10. Diwa Asia Publishing, Inc. v. De Leon, August 13, 2018
13. Lopez v. Alturas Group of Companies, April 11, 2011
14. Concepcion v. Minex Import Corporation, January 24, 2012 UNION SECURITY CLAUSE
15. Prudential Guarantee & Assurance Labor Union v. NLRC, June 13, 2012
16. Cosmos Bottling Co. v. Fermin, June 20, 2012 CASES ASSIGNED
17. Sampaguita Auto Transport v. NLRC & Sagad, January 30, 2013 1. Alabang Country Club v. NLRC, February 14, 2008
18. Dongon v. Rapid Movers, August 28, 2013 2. Inguillo v. First Philippine Scales, June 5, 2009
19. Alilem Credit Cooperative v. Bandiola, February 25, 2013 3. General Milling Corp. v. Casio, March 10, 2010
20. Cavite Apparel v. Marquez, February 6, 2013
21. Esguerra v. Valle Verde, June 13, 2012 DISEASE
22. Leus v. St. Scholastica’s College-Westgrove, January 28, 2015
23. Capin-Cadiz v. Brent Hospital and Colleges, February 24, 2016 CASES ASSIGNED
24. Inocente v. St. Vincent Foundation for Children and Aging, June 22, 2016 1. Crayons Processing v. Pula, July 30, 2007
25. Saudi Arabian Airlines v. Rebesencio, January 14, 2015 2. Villaruel v. Yeo Han Guan, June 1, 2011
26. Puncia v. Toyota Shaw, June 28, 2016 3. Padillo v. Rural Bank of Nabunturan, January 21, 2013
27. Cebu People’s Multi-purpose Cooperative v. Carbonilla, Jr., January 27, 2016 4. Deoferio v. Intel Technology, June 18, 2014
28. PJ Lhuillier, Inc. v. Camacho, February 22, 2017
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TEMPORARY SUSPENSION OF OPERATIONS / FLOATING STATUS 17. PAL v. Paz, November 26, 2014
18. Islriz v.Capada, January 31, 2011
CASES ASSIGNED 19. Lansangan v. Amkor Technology Philippines, January 30, 2009
1. Manila Mining Corp. Employees Association v. Manila Mining Corp., September 29, 20. Palteng v. UCPB, February 27, 2009
2010 21. Alcantara & Sons v. CA, September 29, 2010
2. Nippon Housing v. Leynes, August 3, 2011 22. Aboc v. Metrobank, December 13, 2010
3. SKM Art Corp. v. Bauca, November 27, 2013 23. Prince Transport v. Garcia, January 12, 2011
4. Exocet Security v. Serrano, September 29, 2014 24. Robinsons Galleria/Robinsons Supermarket Corp. v. Ranchez, January 19, 2011
5. Spectrum Security Services, Inc. v. Grave, June 7, 2017 25. Pfizer v. Velasco, March 9, 2011
6. Ibon v. Genghis Khan Security Services, June 19, 2017 26. Luna v. Allado Construction, May 30, 2011
27. Villaruel v. Yeo Han Guan, June 1, 2011
ILLEGAL STRIKE 28. Nacar V. Gallery Frames, August 13, 2013
29. Integrated Microelectronics v. Pionilla, August 28, 2013
CASES ASSIGNED 30. United Tourist Promotion v. Kemplin, February 5, 2014
1. Jackbilt Industries v. Jackbilt Employees Union, March 20, 2009 31. International School v. ISAE, February 5, 2014
2. Escario v. NLRC, September 27, 2010 32. University of Pangasinan v. Fernandez, November 12, 2014
3. Abaria v. NLRC, December 7, 2011 (relate to Bascon v. CA, February 5, 2004) 33. Wenphil Corporation v. Abing, April 7, 2014
4. PHIMCO Industries v. PHIMCO Industries Labor Association, August 11, 2010 34. PNCC Skyway Corporation v. Secretary of Labor and Employment, April 19, 2016
5. VCMC v. Yballe, January 15, 2014 35. C.I.C.M. Mission Seminaries v. Perez, January 18, 2017
36. United Coconut Chemicals, Inc. v. Almores, July 12, 2017
SUSPENSION 37. Digital Telecommunications Phils., Inc. v. Ayapana, January 10, 2018
38. Stradcom Corp. v. Orpilla, July 2, 2018
CASES ASSIGNED
1. Caong v. Regualos, January 26, 2011
2. Montinola v. PAL, September 8, 2014

RETIREMENT

CASES ASSIGNED
1. Cercado v. Uniprom, October 13, 2010
2. Catotocan v. Lourdes School, April 26, 2017
3. De La Salle University v. Bernardo, February 13, 2017
4. Societe Internationale De Telecommunications Aeronautiques v. Huliganga, August 20,
2018
5. Tolentino v. Philippine Airlines, Inc., January 24, 2018
6. Manila Hotel Corp. v. De Leon, July 23, 2018

CONSEQUENCES OF DISMISSAL

CASES ASSIGNED
1. Composite Enterprises v. Caparoso, August 8, 2007
2. Sagum v. CA, May 26, 2005
3. Agabon v. NLRC, November 17, 2004
4. Jaka Food Processing v. Pacot, March 28, 2005
5. Industrial Timber v. Ababon, March 30, 2006
6. Sangwoo Phil. v. Sangwoo Phils. Employees Union, December 9, 2013
7. Equitable Banking v. Sadac, June 8, 2006
8. Carlos v. CA, August 28, 2007
9. Tomas Claudio Memorial College v. CA, February 16, 2004
10. Chronicle Securities v. NLRC, November 25, 2004
11. Intercontinental Broadcasting v. Benedicto, July 20, 2006
12. Velasco v. NLRC, June 26, 2006
13. PCIB v. Abad, February 28, 2005
14. Bago v. NLRC, April 4, 2007
15. Panuncillo v. CAP Phils., February 9, 2007
16. Garcia v. Philippine Airlines, January 20, 2009
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Dispute Settlement
• LABOR CODE: ARTS. 128-129, 220-232, 266, 273-277, 278 (G-I), 303-304, 307 (B), 305-307
o NOTE THE AMENDMENTS INTRODUCED BY R.A. 9347 AND R.A. 10741
ARTICLE 128. Visitorial and Enforcement Power. — (a) The Secretary of Labor and
Employment or his duly authorized representatives, including labor regulation officers, shall
have access to employer's records and premises at any time of the day or night whenever
work is being undertaken therein, and the right to copy therefrom, to question any employee
and investigate any fact, condition or matter which may be necessary to determine violations
or which may aid in the enforcement of this Code and of any labor law, wage order or rules
and regulations issued pursuant thereto.
(b) Notwithstanding the provisions of Articles 129 and 217 of this Code to the contrary, and
in cases where the relationship of employer-employee still exists, the Secretary of Labor and
Employment or his duly authorized representatives shall have the power to issue compliance
orders to give effect to the labor standards provisions of this Code and other labor legislation
based on the findings of labor employment and enforcement officers or industrial safety
engineers made in the course of inspection. The Secretary or his duly authorized
representatives shall issue writs of execution to the appropriate authority for the enforcement
of their orders, except in cases where the employer contests the findings of
the labor employment and enforcement officer and raises issues supported by documentary
proofs which were not considered in the course of inspection.
An order issued by the duly authorized representative of the Secretary of Labor and
Employment under this Article may be appealed to the latter. In case said order involves a
monetary award, an appeal by the employer may be perfected only upon the posting of a
cash or surety bond issued by a reputable bonding company duly accredited by the Secretary
of Labor and Employment in the amount equivalent to the monetary award in the order
appealed from.
(c) The Secretary of Labor and Employment may likewise order stoppage of work or
suspension of operations of any unit or department of an establishment when non-
compliance with the law or implementing rules and regulations poses grave and imminent
danger to the health and safety of workers in the workplace. Within twenty-four hours, a
hearing shall be 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 attributable to the fault
of the employer, he shall pay the employees concerned their salaries or wages during the
period of such stoppage of work or suspension of operation.
(d) It shall be unlawful for any person or entity to obstruct, impede, delay or 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 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.
45
(e) Any government employee found guilty of violation of, or abuse of authority, under this
Article shall, after appropriate administrative investigation, be subject to summary dismissal
from the service.
(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.
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 for reinstatement: Provided, further, That the aggregate money claims of
each employee or househelper do not exceed five thousand pesos (P5,000.00). The
Regional Director or hearing officer shall decide or resolve the complaint within thirty (30)
calendar days from the date of the filing of the same. Any sum thus recovered on behalf of
any employee or househelper pursuant to this Article shall be held in a special deposit
account, and shall be paid, on order of the Secretary of Labor and Employment or the
Regional Director directly to the employee or househelper concerned. Any such sum not paid
to the employee or househelper, because he cannot be located after diligent and reasonable
effort to locate him within a period of three (3) years, shall be held as a special fund of the
Department of Labor and Employment to be used exclusively for the amelioration and benefit
of workers.
Any decision or resolution of the Regional Director or hearing officer pursuant to this provision
may be appealed on the same grounds provided in Article 223 of this Code, within five (5)
calendar days from receipt of a copy of said decision or resolution, to the
National Labor Relations Commission which shall resolve the appeal within ten (10) calendar
days from the submission of the last pleading required or allowed under its rules.
The Secretary of Labor and Employment or his duly authorized representative may supervise
the payment of unpaid wages and other monetary claims and benefits, including legal
interest, found owing to any employee or house helper under this Code.
Art. 220. National Labor Relations Commission. — There shall be a National Labor Relations
Commission which shall be attached to the Department of Labor and Employment solely for
program and policy coordination, composed of a Chairman and twenty-three (23) members.
Eight (8) members each shall be chosen only from among the nominees of the workers and
employers organizations, respectively. The Chairman and the seven (7) remaining members
shall come from the public sector, with the latter to be chosen preferably from among the
incumbent labor arbiters.
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Upon assumption into office, the members nominated by the workers and employers management relations. They shall receive annual salaries and shall be entitled to the same
organizations shall divest themselves of any affiliation with or interest in the federation or allowances and benefits as those falling under Salary Grade twenty-six (SG 26). There shall
association to which they belong. be as many Commission Attorneys as may be necessary for the effective and efficient
operation of the Commission but in no case more than five (5) assigned to the Office of the
The Commission may sit en banc or in eight (8) divisions, each composed of three (3) Chairman and each Commissioner.
members. The Commission shall sit 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. The ARTICLE 221. [214] Headquarters, Branches and Provincial Extension Units. — The
Commission shall exercise its adjudicatory and all other powers, functions and duties through Commission and its first, second, third, fourth, fifth and sixth divisions shall have their main
its divisions. Of the eight (8) divisions, the first, second, third, fourth, fifth and sixth divisions offices in Metropolitan Manila, and the seventh and eight divisions in the cities of Cebu and
shall handle cases coming from the National Capital Region and other parts of Luzon, and Cagayan de Oro, respectively. The Commission shall establish as many regional branches
the seventh and eighth divisions, cases from the Visayas and Mindanao, as there are regional offices of the Department of Labor and Employment, sub-regional
respectively: Provided, That the Commission sitting en banc may, on temporary or branches or provincial extension units. There shall be as many Labor Arbiters as may be
emergency basis, allow cases within the jurisdiction of any division to be heard and decided necessary for the effective and efficient operation of the Commission.
by any other division whose docket allows the additional workload and such transfer will not
expose litigants to unnecessary additional expense. The divisions of the Commission shall
ARTICLE 222. [215] Appointment and Qualifications. — The Chairman and other
have exclusive appellate jurisdiction over cases within their respective territorial jurisdiction.
Commissioners shall be members of the Philippine Bar and must have been engaged in the
The concurrence of two (2) Commissioners of a division shall be necessary for the
practice of law in the Philippines for at least fifteen (15) years, with at least five (5) years
pronouncement of judgment or resolution. Whenever the required membership in a division
experience or exposure in the field of labor-management relations, and shall preferably be
is not complete and the concurrence of two (2) Commissioners to arrive at a judgment or
residents of the region where they shall hold office. The Labor Arbiters shall likewise be
resolution cannot be obtained, the Chairman shall designate such number of additional
members of the Philippine Bar and must have been engaged in the practice of law in the
Commissioners from the other divisions as may be necessary.
Philippines for at least ten (10) years, with at least five (5) years experience or exposure in
the field of labor-management relations.
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. It shall
The Chairman, the other Commissioners and the Labor Arbiters shall hold office during good
be mandatory for the division to meet for purposes of the consultation ordained therein. A
behavior until they reach the age of sixty-five (65) years, unless sooner removed for cause
certification to this effect signed by the Presiding Commissioner of the division shall be
as provided by law or become incapacitated to discharge the duties of their office: Provided,
issued, and a copy thereof attached to the record of the case and served upon the parties.
however, That the President of the Republic of the Philippines may extend the services of
The Chairman shall be the Presiding Commissioner of the first division, and the seven (7)
the Commissioners and Labor Arbiters up to the maximum age of seventy (70) years upon
other members from the public sector shall be the Presiding Commissioners of the second,
the recommendation of the Commission en banc.
third, fourth, fifth, sixth, seventh and eighth divisions, respectively. In case of the effective
absence or incapacity of the Chairman, the Presiding Commissioner of the second division
The Chairman, the Division Presiding Commissioners and other Commissioners shall all be
shall be the Acting Chairman.
appointed by the President. Appointment to any vacancy in a specific division shall come only
from the nominees of the sector which nominated the predecessor. The Labor Arbiters shall
The Chairman, aided by the Executive Clerk of the Commission, shall have exclusive
also be appointed by the President, upon the recommendation of the Commission en banc,
administrative supervision over the Commission and its regional branches and all its
and shall be subject to the Civil Service Law, rules and regulations.
personnel, including the Labor Arbiters.

The Commission, when sitting en banc, shall be assisted by the same Executive Clerk, and,
when acting thru its Divisions, by said Executive Clerk for its first division and seven (7) other
Deputy Executive Clerks for the second, third, fourth, fifth, sixth, seventh and eighth Divisions,
respectively, in the performance of such similar or equivalent functions and duties as are
discharged by the Clerk of Court and Deputy Clerks of Court of the Court of Appeals.
The Commission and its eight (8) divisions shall be assisted by the Commission Attorneys in
its appellate and adjudicatory functions whose term shall be coterminous with the
Commissioners with whom they are assigned. The Commission Attorneys shall be members
of the Philippine Bar with at least one (1) year experience or exposure in the field of labor-
46
The Chairman of the Commission shall appoint the staff and employees of the Commission
and its regional branches as the needs of the service may require, subject to the Civil Service
Law, rules and regulations, and upgrade their current salaries, benefits and other
emoluments in accordance with law.
ARTICLE 223. [216] Salaries, Benefits and Emoluments. — The Chairman and members of
the Commission 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. Labor Arbiters shall have the
same rank, receive an annual salary equivalent to and be entitled to the same allowances,
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retirement and other benefits and privileges as those of the judges of the Regional Trial
Courts. In no case, however, shall the provision of this Article result in the diminution of the
existing salaries, allowances and benefits of the aforementioned officials.
ARTICLE 224. [217] Jurisdiction of the Labor Arbiters and the Commission. — (a) Except as
otherwise provided under this Code, the Labor Arbiters shall have original and exclusive
jurisdiction to hear and decide, within thirty (30) calendar days after the submission of the
case by the parties for decision without extension, even in the absence of stenographic notes,
the following cases involving all workers, whether agricultural or non-agricultural:
(1) Unfair labor practice cases;
(2) Termination disputes;
(3) If accompanied with a claim for reinstatement, those cases that workers may
file involving wages, rates of pay, hours of work and other terms and conditions of
employment;
(4) Claims for actual, moral, exemplary and other forms of damages arising from
the employer-employee relations;
(5) Cases arising from any violation of Article 264 of this Code, including questions
involving the legality of strikes and lockouts; and
(6) Except claims for Employees Compensation, Social Security, Medicare and
maternity benefits, all other claims arising from employer-employee relations,
including those of persons in domestic or household service, involving an amount
exceeding five thousand pesos (P5,000.00) regardless of whether accompanied
with a claim for reinstatement.
(b) The Commission shall have exclusive appellate jurisdiction over all cases decided
by Labor Arbiters.
(c) Cases arising from the interpretation or implementation of collective bargaining
agreements and those arising from the interpretation or enforcement of company personnel
policies shall be disposed of by the Labor Arbiter by referring the same to the grievance
machinery and voluntary arbitration as may be provided in said agreements.
ARTICLE 225. [218] Powers of the Commission. — The Commission shall have the power
and authority:
(a) To promulgate rules and regulations governing the hearing and disposition of cases
before it and its regional branches, as well as those pertaining to its internal functions and
such rules and regulations as may be necessary to carry out the purposes of this Code;
47
(b) To administer oaths, summon the parties to a controversy, issue subpoenas requiring
the attendance and testimony of witnesses or the production of such books, papers,
contracts, records, statement of accounts, agreements, and others as may be material to a
just determination of the matter under investigation, and to testify in any investigation or
hearing conducted in pursuance of this Code;
(c) To conduct investigation for the determination of a question, matter or controversy within
its jurisdiction, proceed to hear and determine the disputes in the absence of any party thereto
who has been summoned or served with notice to appear, conduct its proceedings or any
part thereof in public or in private, adjourn its hearings to any time and place, refer technical
matters or accounts to an expert and to accept his report as evidence after hearing of the
parties upon due notice, direct parties to be joined in or excluded from the proceedings,
correct, amend, or waive any error, defect or irregularity whether in substance or in form, give
all such directions as it may deem necessary or expedient in the determination of the dispute
before it, and dismiss any matter or refrain from further hearing or from determining the
dispute or part thereof, where it is trivial or where further proceedings by the Commission are
not necessary or desirable; and
(d) To hold any person in contempt directly or indirectly and impose appropriate penalties
therefor in accordance with law.
A person guilty of misbehavior in the presence of or so near the Chairman or any member
of the Commission or any Labor Arbiter as to obstruct or interrupt the proceedings before the
same, including disrespect toward said officials, offensive personalities toward others, or
refusal to be sworn, or to answer as a witness or to subscribe an affidavit or deposition when
lawfully required to do so, may be summarily adjudged in direct contempt by said officials
and punished by fine not exceeding five hundred pesos (P500) or imprisonment not
exceeding five (5) days, or both, if it be the Commission or a member thereof, or by a fine not
exceeding one hundred pesos (P100) or imprisonment not exceeding one (1) day, or both, if
it be a Labor Arbiter.
The person adjudged in direct contempt by a Labor Arbiter may appeal to the Commission
and the execution of the judgment shall be suspended pending the resolution of the appeal
upon the filing by such person of a bond on condition that he will abide by and perform the
judgment of the Commission should the appeal be decided against him. Judgment of the
Commission on direct contempt is immediately executory and unappealable. Indirect
contempt shall be dealt with by the Commission or Labor Arbiter in the manner prescribed
under Rule 71 of the Revised Rules of Court; and
(e) To enjoin or restrain any actual or threatened commission of any or all prohibited or
unlawful acts or to require the performance of a particular act in any labor dispute which, if
not restrained or performed forthwith, may cause grave or irreparable damage to any party
or render ineffectual any decision in favor of such party: Provided, That no temporary or
permanent injunction in any case involving or growing out of a labor dispute as defined in
this Code shall be issued except after hearing the testimony of witnesses, with opportunity
for cross-examination, in support of the allegations of a complaint made under oath, and
testimony in opposition thereto, if offered, and only after a finding of fact by the Commission,
to the effect:
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(1) That prohibited or unlawful acts have been threatened and will be committed
unless restrained, or have been committed and will be continued unless restrained,
but no injunction or temporary restraining order shall be issued on account of any
threat, prohibited or unlawful act, except against the person or persons, association
or organization making the threat or committing the prohibited or unlawful act or
actually authorizing or ratifying the same after actual knowledge thereof;
(2) That substantial and irreparable injury to complainant's property will follow;
(3) That as to each item of relief to be granted, greater injury will be inflicted upon
complainant by the denial of relief than will be inflicted upon defendants by the
granting of relief;
(4) That complainant has no adequate remedy at law; and
(5) That the public officers charged with the duty to protect complainant's property
are unable or unwilling to furnish adequate protection.
Such hearing shall be held after due and personal notice thereof has been served, in such
manner as the Commission shall direct, to all known persons against whom relief is sought,
and also to the Chief Executive and other public officials of the province or city within which
the unlawful acts have been threatened or committed, charged with the duty to protect
complainant's property: Provided, however, That if a complainant shall also allege that,
unless a temporary restraining order shall be issued without notice, a substantial and
irreparable injury to complainant's property will be unavoidable, such a temporary restraining
order may be issued upon testimony under oath, sufficient, if sustained, to justify the
Commission in issuing a temporary injunction upon hearing after notice. Such a temporary
restraining order shall be effective for no longer than twenty (20) days and shall become void
at the expiration of said twenty (20) days. No such temporary restraining order or temporary
injunction shall be issued except on condition that complainant shall first file an undertaking
with adequate security in an amount to be fixed by the Commission sufficient to recompense
those enjoined for any loss, expense or damage caused by the improvident or erroneous
issuance of such order or injunction, including all reasonable costs, together with a
reasonable attorney's fee, and expense of defense against the order or against the granting
of any injunctive relief sought in the same proceeding and subsequently denied by the
Commission.
The undertaking herein mentioned shall be understood to constitute an agreement entered
into by the complainant and the surety upon which an order may be rendered in the same
suit or proceeding against said complainant and surety, upon a hearing to assess damages,
of which hearing, complainant and surety shall have reasonable notice, the said complainant
and surety submitting themselves to the jurisdiction of the Commission for that purpose. But
nothing herein contained shall deprive any party having a claim or cause of action under or
upon such undertaking from electing to pursue his ordinary remedy by suit at law or in
equity: Provided, further, That the reception of evidence for the application of a writ of
injunction may be delegated by the Commission to any of its Labor Arbiters who shall conduct
48
such hearings in such places as he may determine to be accessible to the parties and their
witnesses and shall submit thereafter his recommendation to the Commission.
ARTICLE 226. [219] Ocular Inspection. — The Chairman, any Commissioner, Labor Arbiter
or their duly authorized representatives, may, at any time during working hours, conduct an
ocular inspection on any establishment, building, ship or vessel, place or premises, including
any work, material, implement, machinery, appliance or any object therein, and ask any
employee, laborer, or any person, as the case may be, for any information or data concerning
any matter or question relative to the object of the investigation.
ARTICLE 227. [221] Technical Rules Not Binding and Prior Resort to Amicable
Settlement. — In any proceeding before the Commission or any of the Labor Arbiters, the
rules of evidence prevailing in courts of law or equity shall not be controlling and it is the spirit
and intention of this Code that the Commission and its members and the Labor Arbiters 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, all in the interest of due
process. In any proceeding before the Commission or any Labor Arbiter, the parties may be
represented by legal counsel but it shall be the duty of the Chairman, any Presiding
Commissioner or Commissioner or any Labor Arbiter to exercise complete control of the
proceedings at all stages.
Any provision of law to the contrary notwithstanding, the Labor Arbiter shall exert all efforts
towards the amicable settlement of a labor dispute within his jurisdiction on or before the first
hearing. The same rule shall apply to the Commission in the exercise of its original
jurisdiction.
ARTICLE 228. [222] Appearances and Fees. — (a) Non-lawyers may appear before the
Commission or any Labor Arbiter only:
1. If they represent themselves; or
2. If they represent their organization or members thereof.
(b) No attorney's fees, negotiation fees or similar charges of any kind arising from any
collective bargaining agreement shall be imposed on any individual member of the
contracting union: Provided, However, that attorney's fees may be charged against union
funds in an amount to be agreed upon by the parties. Any contract, agreement or
arrangement of any sort to the contrary shall be null and void.
ARTICLE 229. [223] Appeal. — Decisions, awards, or orders of the Labor Arbiter are final
and executory unless appealed to the Commission by any or both parties within ten (10)
calendar days from receipt of such decisions, awards, or orders. Such appeal may be
entertained only on any of the following grounds:
(a) If there is prima facie evidence of abuse of discretion on the part of the Labor Arbiter;
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(b) If the decision, order or award was secured through fraud or coercion, including graft and
corruption;
(c) If made purely on questions of law; and
(d) If serious errors in the findings of facts are raised which would cause grave or irreparable
damage or injury to the appellant.
In case of a judgment involving a monetary award, an appeal by the employer may be
perfected only upon the posting of a cash or surety bond issued by a reputable bonding
company duly accredited by the Commission in the amount equivalent to the monetary award
in the judgment appealed from.
In any event, the decision of the Labor Arbiter reinstating a dismissed or separated
employee, insofar as the reinstatement aspect is concerned, shall immediately be executory,
even pending appeal. The employee shall either be admitted back to work under the same
terms and conditions prevailing prior to his dismissal or separation or, at the option of the
employer, merely reinstated in the payroll. The posting of a bond by the employer shall not
stay the execution for reinstatement provided herein.
To discourage frivolous or dilatory appeals, the Commission or the Labor Arbiter shall impose
reasonable penalty, including fines or censures, upon the erring parties.
In all cases, the appellant shall furnish a copy of the memorandum of appeal to the other
party who shall file an answer not later than ten (10) calendar days from receipt thereof.
The Commission shall decide all cases within twenty (20) calendar days from receipt of the
answer of the appellee.
The decision of the Commission shall be final and executory after ten (10) calendar days
from receipt thereof by the parties.
Any law enforcement agency may be deputized by the Secretary of Labor and Employment
or the Commission in the enforcement of decisions, awards or orders.
ARTICLE 230. [224] Execution of Decisions, Orders, or Awards. — (a) The Secretary
of Labor and Employment or any Regional Director, the Commission or any Labor Arbiter, or
Med-Arbiter or Voluntary Arbitrator may, motu proprio or on motion of any interested party,
issue a writ of execution on a judgment within five (5) years from the date it becomes final
and executory, requiring a sheriff or a duly deputized officer to execute or enforce final
decisions, orders or awards of the Secretary of Labor and Employment or Regional Director,
the Commission, the Labor Arbiter or Med-Arbiter, or Voluntary Arbitrator or panel of
Voluntary Arbitrators. In any case, it shall be the duty of the responsible officer to separately
furnish immediately the counsels of record and the parties with copies of said decisions,
orders or awards. Failure to comply with the duty prescribed herein shall subject such
responsible officer to appropriate administrative sanctions.
49
(b) The Secretary of Labor and Employment, and the Chairman of the Commission may
designate special sheriffs and take any measure under existing laws to ensure compliance
with their decisions, orders or awards and those of Labor Arbiters and Voluntary Arbitrators
or panel of Voluntary Arbitrators, including the imposition of administrative fines which shall
not be less than Five Hundred Pesos (P500.00) nor more than Ten Thousand Pesos
(P10,000.00).
ARTICLE 231. [225] Contempt Powers of the Secretary. — In the exercise of his powers
under this Code, the Secretary of Labor may hold any person in direct or indirect contempt
and impose the appropriate penalties therefor.
ARTICLE 232. [226] Bureau of Labor Relations. — The Bureau of Labor Relations and
the Labor Relations Divisions in the regional offices of the Department of Labor shall have
original and exclusive authority to act, at their own initiative or upon request of either or both
parties, on all inter-union and intra-union conflicts, and all disputes, grievances or problems
arising from or affecting labor-management relations in all workplaces, whether agricultural
or non-agricultural, except those arising from the implementation or interpretation of collective
bargaining agreements which shall be the subject of grievance procedure and/or voluntary
arbitration.
The Bureau shall have fifteen (15) working days to act on labor cases before it, subject to
extension by agreement of the parties.
ARTICLE 266. [254] Injunction Prohibited. — No temporary or permanent injunction or
restraining order in any case involving or growing out of labor disputes shall be issued by any
court or other entity, except as otherwise provided in Articles 218 and 264 of this Code.
ARTICLE 273. [260] Grievance Machinery and Voluntary Arbitration. — The parties to a
Collective Bargaining Agreement shall include therein provisions that will ensure the mutual
observance of its terms and conditions. They shall establish a machinery for the adjustment
and resolution of grievances arising from the interpretation or implementation of their
Collective Bargaining Agreement and those arising from the interpretation or enforcement of
company personnel policies.
All grievances submitted to the grievance machinery which are not settled within seven (7)
calendar days from the date of its submission shall automatically be referred to voluntary
arbitration prescribed in the Collective Bargaining Agreement.
For this purpose, parties to a Collective Bargaining Agreement shall name and designate in
advance a Voluntary Arbitrator or panel of Voluntary Arbitrators, or include in the agreement
a procedure for the selection of such Voluntary Arbitrator or panel of Voluntary Arbitrators,
preferably from the listing of qualified Voluntary Arbitrators duly accredited by the Board. In
case the parties fail to select a Voluntary Arbitrator or panel of Voluntary Arbitrators, the
Board shall designate the Voluntary Arbitrator or panel of Voluntary Arbitrators, as may be
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necessary, pursuant to the selection procedure agreed upon in the Collective Bargaining
Agreement, which shall act with the same force and effect as if the Arbitrator or panel of
Arbitrators have been selected by the parties as described above.
ARTICLE 274. [261] Jurisdiction of Voluntary Arbitrators and Panel of Voluntary Arbitrators.
— The Voluntary Arbitrator or panel of Voluntary Arbitrators shall have original and exclusive
jurisdiction to hear and decide all unresolved grievances arising from the interpretation or
implementation of the Collective Bargaining Agreement and those arising from the
interpretation or enforcement of company personnel policies referred to in the immediately
preceding article. Accordingly, violations of a Collective Bargaining Agreement, except those
which are gross in character, shall no longer be treated as unfair labor practice and shall be
resolved as grievances under the Collective Bargaining Agreement. For purposes of this
article, gross violations of Collective Bargaining Agreement shall mean flagrant and/or
malicious refusal to comply with the economic provisions of such agreement.
The Commission, its Regional Offices and the Regional Directors of the Department
of Labor and Employment shall not entertain disputes, grievances or matters under the
exclusive and original jurisdiction of the Voluntary Arbitrator or panel of Voluntary Arbitrators
and shall immediately dispose and refer the same to the Grievance Machinery or Voluntary
Arbitration provided in the Collective Bargaining Agreement.
ARTICLE 275. [262] Jurisdiction over Other Labor Disputes. — The Voluntary Arbitrator or
panel of Voluntary Arbitrators, upon agreement of the parties, shall also hear and decide all
other labor disputes including unfair labor practices and bargaining deadlocks.
ARTICLE 276. [262-A] Procedures. — The Voluntary Arbitrator or panel of Voluntary
Arbitrators shall have the power to hold hearings, receive evidences and take whatever action
is necessary to resolve the issue or issues subject of the dispute, including efforts to effect a
voluntary settlement between parties.
All parties to the dispute shall be entitled to attend the arbitration proceedings. The
attendance of any third party or the exclusion of any witness from the proceedings shall be
determined by the Voluntary Arbitrator or panel of Voluntary Arbitrators. Hearing may be
adjourned for cause or upon agreement by the parties.
Unless the parties agree otherwise, it shall be mandatory for the Voluntary Arbitrator or panel
of Voluntary Arbitrators to render an award or decision within twenty (20) calendar days from
the date of submission of the dispute to voluntary arbitration.
The award or decision of the Voluntary Arbitrator or panel of Voluntary Arbitrators shall
contain the facts and the law on which it is based. It shall be final and executor after ten (10)
calendar days from receipt of the copy of the award or decision by the parties.
Upon motion of any interested party, the Voluntary Arbitrator or panel of Voluntary Arbitrators
or the Labor Arbiter in the region where the movant resides, in case of the absence or
incapacity of the Voluntary Arbitrator or panel of Voluntary Arbitrators, for any reason, may
issue a writ of execution requiring either the sheriff of the Commission or regular courts or
50
any public official whom the parties may designate in the submission agreement to execute
the final decision, order or award.
ARTICLE 277. [262-B] Cost of Voluntary Arbitration and Voluntary Arbitrator's Fee. — The
parties to a Collective Bargaining Agreement shall provide therein a proportionate sharing
scheme on the cost of voluntary arbitration including the Voluntary Arbitrator's fee. The fixing
of fee of Voluntary Arbitrators, or panel of Voluntary Arbitrators, whether shouldered wholly
by the parties or subsidized by the Special Voluntary Arbitration Fund, shall take into account
the following factors:
(a) Nature of the case;
(b) Time consumed in hearing the case;
(c) Professional standing of the Voluntary Arbitrator;
(d) Capacity to pay of the parties; and
(e) Fees provided for in the Revised Rules of Court.
ARTICLE 278. [263] Strikes, Picketing, and Lockouts. (g) 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 Secretary of Labor and Employment may assume jurisdiction over
the dispute and decide it or certify the same to the Commission for compulsory arbitration.
Such assumption or certification shall have the effect of automatically enjoining the intended
or impending strike or lockout as specified in the assumption or certification order. If one has
already taken place at the time of assumption or certification, all striking or locked out
employees shall immediately return to work and the employer shall immediately resume
operations and readmit all workers under the same terms and conditions prevailing before
the strike or lockout. The Secretary of Labor and Employment or the Commission may seek
the assistance of law enforcement agencies to ensure compliance with this provision as well
as with such orders as he may issue to enforce the same.
In line with the national concern for and the highest respect accorded to the right of patients
to life and health, strikes and lockouts in hospitals, clinics and similar medical institutions
shall, to every extent possible, be avoided, and all serious efforts, not only by labor and
management but government as well, be exhausted to substantially minimize, if not prevent,
their adverse effects on such life and health, through the exercise, however legitimate,
by labor of its right to strike and by management to lockout. In labor disputes adversely
affecting the continued operation of such hospitals, clinics or medical institutions, it shall be
the duty of the striking union or locking-out employer to provide and maintain an effective
skeletal workforce of medical and other health personnel, whose movement and services
shall be unhampered and unrestricted, as are necessary to insure the proper and adequate
protection of the life and health of its patients, most especially emergency cases, for the
duration of the strike or lockout. In such cases, therefore, the Secretary of Labor and
Employment may immediately assume, within twenty four (24) hours from knowledge of the
occurrence of such a strike or lockout, jurisdiction over the same or certify it to the
Commission for compulsory arbitration. For this purpose, the contending parties are strictly
enjoined to comply with such orders, prohibitions and/or injunctions as are issued by the
Secretary of Labor and Employment or the Commission, under pain of immediate disciplinary
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action, including dismissal or loss of employment status or payment by the locking-out
employer of backwages, damages and other affirmative relief, even criminal prosecution
against either or both of them.
The foregoing notwithstanding, the President of the Philippines shall not be precluded from
determining the industries that, in his opinion, are indispensable to the national interest, and
from intervening at any time and assuming jurisdiction over any such labor dispute in order
to settle or terminate the same.
(h) Before or at any stage of the compulsory arbitration process, the parties may opt to submit
their dispute to voluntary arbitration.
(i) The Secretary of Labor and Employment, the Commission or the voluntary arbitrator or
panel of voluntary arbitrators shall decide or resolve the dispute within thirty (30) calendar
days from the date of the assumption of jurisdiction or the certification or submission of the
dispute, as the case may be. The decision of the President, the Secretary of Labor and
Employment, the Commission or the voluntary arbitrator shall be final and executory ten (10)
calendar days after receipt thereof by the parties.
ARTICLE 303. [288] Penalties. — Except as otherwise provided in this Code, or unless the
acts complained of hinge on a question of interpretation or implementation of ambiguous
provisions of an existing collective bargaining agreement, any violation of the provisions of
this Code declared to be unlawful or penal in nature shall be punished with a fine of not less
than One Thousand Pesos (P1,000.00) nor more than Ten Thousand Pesos (P10,000.00),
• EXECUTIVE ORDER NO. 126 & 251
or imprisonment of not less than three months nor more than three years, or both such fine
and imprisonment at the discretion of the court.
In addition to such penalty, any alien found guilty shall be summarily deported upon
completion of service of sentence.
Any provision of law to the contrary notwithstanding, any criminal offense punished in
this Code shall be under the concurrent jurisdiction of the Municipal or City Courts and the
Courts of First Instance.
ARTICLE 304. [289] Who are Liable When Committed by Other Than Natural Person. — If
the offense is committed by a corporation, trust, firm, partnership, association or any other
entity, the penalty shall be imposed upon the guilty officer or officers of such corporation,
trust, firm, partnership, association or entity.
ARTICLE 305. [290] Offenses. — Offenses penalized under this Code and the rules and
regulations issued pursuant thereto shall prescribe in three (3) years.
All unfair labor practice arising from Book V shall be filed with the appropriate agency within
one (1) year from accrual of such unfair labor practice; otherwise, they shall be forever
barred.
51
ARTICLE 306. [291] Money Claims. — All money claims arising from employer-employee
relations accruing during the effectivity of this Code shall be filed within three (3) years from
the time the cause of action accrued; otherwise they shall be forever barred.
All money claims accruing prior to the effectivity of this Code shall be filed with the
appropriate entities established under this Code within one (1) year from the date of
effectivity, and shall be processed or determined in accordance with the implementing rules
and regulations of the Code; otherwise, they shall be forever barred.
Workmen's compensation claims accruing prior to the effectivity of this Code and during the
period from November 1, 1974 up to December 31, 1974, shall be filed with the appropriate
regional offices of the Department of Labor not later than March 31, 1975; otherwise, they
shall forever be barred. The claims shall be processed and adjudicated in accordance with
the law and rules at the time their causes of action accrued.
ARTICLE 307. [292] Institution of Money Claims. — Money claims specified in the
immediately preceding Article shall be filed before the appropriate entity independently of the
criminal action that may be instituted in the proper courts.
Pending the final determination of the merits of money claims filed with the appropriate entity,
no civil action arising from the same cause of action shall be filed with any court. This
provision shall not apply to employees' compensation cases which shall be processed and
determined strictly in accordance with the pertinent provisions of this Code.
EXECUTIVE ORDER NO. 126
REORGANIZING THE MINISTRY OF LABOR AND EMPLOYMENT AND FOR OTHER
PURPOSES
SECTION 1. Title. — This Executive Order shall otherwise be known as the Reorganization
Act of the Ministry of Labor and Employment.
SECTION 2. Reorganization. — The Ministry of Labor and Employment, hereinafter referred
to as Ministry, is hereby reorganized, structurally and functionally in accordance with the
provisions of this Executive Order.
SECTION 3. Declaration of Policy. — It is the declared policy of the State to afford protection
to labor, promote full employment, ensure equal work opportunities regardless of sex, race,
or creed, and regulate the relations between workers and employers. The State shall assure
the rights of the workers to self-organization, collective bargaining, security of tenure, and
just and humane conditions of work.
SECTION 4. Mandate and Objectives. — The Ministry shall be the primary policy,
programming, coordinating and administrative entity of the Executive Branch of the
government in the field of labor and employment. It shall assume primary responsibility for:
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(a) The promotion of gainful employment opportunities and the optimization of the
development and utilization of the country's manpower resources;
(b) The advancement of workers' welfare by providing for just and humane working conditions
and terms of employment;
(c) The maintenance of industrial peace by promoting harmonious, equitable, and stable
employment relations that assure equal protection for the rights of all concerned parties.
SECTION 5. Powers and Functions. — In pursuit of its mandate, the Ministry shall have the
following powers and functions:
(a) Formulate and recommend policies, plans and programs for manpower development,
training, allocation, and utilization;
(b) Protect and promote the interest of every citizen desiring to work locally or overseas by
securing for him the most equitable terms and conditions of employment, and by providing
social and welfare services;
(c) Regulate the employment of aliens, including the establishment of a registration and/or
work permit system for such aliens;
(d) Formulate general guidelines concerning wage and income policy;
(e) Recommend necessary adjustments in wage structures with a view to developing a wage
system that is consistent with national economic and social development plans;
(f) Provide for safe, decent, humane and improved working conditions and environment for
all workers, particularly women and young workers;
(g) Maintain harmonious, equitable and stable labor relations system that is supportive of the
national economic policies and programs;
(h) Uphold the right of workers and employers to organize and to promote free collective
bargaining as the foundation of the labor relations system;
(i) Provide and ensure the fair and expeditious settlement and disposition of labor and
industrial disputes through collective bargaining, grievance machinery, conciliation,
mediation, voluntary arbitration, compulsory arbitration as may be provided by law, and other
modes that may be voluntarily agreed upon by the parties concerned.
SECTION 6. Minister of Labor and Employment. — The authority and responsibility for the
exercise of the mandate of the Ministry and for the discharge of its powers and functions shall
be vested in the Minister of Labor and Employment, hereinafter referred to as the Minister,
who shall be appointed by the President and who shall have supervision and control over the
Ministry. For such purposes, the Minister shall have the following powers and functions:
52
(a) Advise the President on the promulgation of executive/administrative orders, other
regulative issuances and legislative proposals on matters pertaining to labor and
employment;
(b) Formulate policies, guidelines, rules and regulations and other issuances necessary to
carry out Ministry policies, plans, programs and projects;
(c) Issue orders, directives, rules and regulations and other issuances to carry out labor and
employment policies, plans, programs and projects;
(d) Provide overall direction, supervision, and control over all offices under the Ministry to
ensure effective and efficient implementation of its policies, plans, programs and projects;
(e) Coordinate with other government offices, labor organizations, employers associations,
and any other group to carry out the mandate of the Ministry;
(f) Evaluate the policy, plans, programs and project accomplishment of the Ministry;
(g) Prepare reports for the President and for the public;
(h) Delegate authority for the performance of any function to officers and employees of the
Ministry;
(i) Exercise such other powers and functions as may be provided by law or assigned by the
President.
SECTION 7. Office of the Minister. — The Office of the Minister shall consist of the Minister
and his immediate staff. cd
SECTION 8. Deputy Minister. — The Minister shall be assisted by not more than four (4)
Deputy Ministers who shall be appointed by the President upon the recommendation of the
Minister. The Minister is hereby authorized to delineate and assign the respective functional
areas of responsibility of the Deputy Ministers, provided, that such responsibility shall be with
respect to the mandate and objectives of the Ministry; and provided, further, that no Deputy
Minister shall be assigned primarily administrative responsibilities. Within his functional area
of responsibility, a Deputy Minister shall have the following functions:
(a) Advise and assist the Minister in the formulation and implementation of the Ministry's
policies, plans, programs and projects;
(b) Oversee the operational activities of the Ministry;
(c) Coordinate the programs and projects of the Ministry for efficient and effective
administration;
(d) Serve as deputy for the Minister;
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(e) Perform, when so designated, the power and functions of the Minister, during the latter's
absence or incapacity; and
(f) Perform such other functions as may be provided by law or assigned by the Minister to
promote the efficiency and effectiveness in the delivery of public services.
SECTION 9. Assistant Ministers. — The Minister shall likewise be assisted by not more than
four (4) Assistant Ministers who shall be appointed by the President upon the
recommendation of the Minister. The Minister is hereby authorized to delineate and assign
the respective areas of functional responsibility of the Assistant Ministers. Within his
functional area of responsibility, an Assistant Minister shall assist the Minister and Deputy
Ministers in the formulation, determination and implementation of laws, policies, plans,
programs and projects on labor and shall oversee the day-to-day administration and
supervision of the constituent units of the Ministry.
SECTION 10. Structural Organization. — The Ministry shall consist of the Ministry proper
comprising the Office of the Minister, the Office of the Deputy and Assistant Ministers, the
Services and the Staff Bureaus, and its Regional Offices.
SECTION 11. Planning Service. — The Planning Service shall provide the Ministry with
efficient, effective and economical services relating to planning, programming, project
development and evaluation, and the development and implementation of a management
information system.
SECTION 12. Administrative Service. — The Administrative Service shall provide the
Ministry with efficient, effective and economical services relating to records, management,
supplies, equipment, collections, disbursements, building administration and maintenance,
security and custodial work.
SECTION 13. Human Resource Development Service. — The Human Resource
Development Service shall provide the Ministry with a program and corresponding projects
that shall make available training, education and development opportunities needed to
upgrade the levels of competence and productivity of Ministry managers and personnel. It
shall absorb the powers and functions of the Administrative Service in relation to the
development and administration of personnel programs including selection and placement,
development, performance evaluation, employee relations and welfare.
SECTION 14. Financial Management Service. — The Financial and Management Service
shall be responsible for providing the Ministry with efficient, effective and economical services
relating to budgetary, financial, management improvement and internal control matters.
SECTION 15. Legal Service. — The Legal Service shall provide legal advice and service to
Ministry officers and employees; prepare informative or clarificatory opinions on labor laws,
rules and regulations for uniform interpretation thereof; answer legal queries from the public;
assist the Office of the Solicitor General in suits involving the Ministry or its officers or
employees or acts as their principal counsel in all actions taken in their official capacity or
other causes before judicial or administrative bodies.
53
SECTION 16. International Labor Affairs Service. — The International Labor Affairs Service
shall be responsible for monitoring the observance and implementation of all obligations,
courtesies, and facilities required by international labor affairs, particularly the International
Labor Organization, the Conference of Asian Pacific Labor Ministries, the ASEAN Labor
Ministers Meeting of which the Philippines is a member, and related international labor
standards and agreements reached in various international labor forums, treaties, and other
multilateral, bilateral or multi-bilateral agreements in the area of labor and employment;
provide staff support and policy guidelines to the Minister in the supervision, monitoring and
reporting of the activities of the Philippine overseas labor officers assigned in different
countries; serve as the instrumentality of the Ministry for technical cooperation, programs and
activities with other countries and international institutions.
SECTION 17. Information and Publications Service. — The Information and Publication
Service shall be responsible for promoting rapport and understanding between the Ministry
and the public through the development of public relations programs and the dissemination
of accurate and updated information on labor and employment, by means of publications and
media coverages of special events and related matters on the Ministry's policies, plans,
programs, and projects; shall likewise be responsible for providing answers to queries from
the public regarding the Ministry's policies, rules, regulations, programs, activities and
services.
SECTION 18. Bureaus. — The following staff bureaus of the Ministry are hereby retained
and shall continue to have the same functions, except as otherwise provided herein:
(a) Bureau of Local Employment;
(b) Bureau of Women and Young Workers;
(c) Bureau of Rural Workers;
(d) Bureau of Labor Relations, which shall continue to performs its present functions except
those to be absorbed by the National Mediation and Conciliation Board as provided under
Section 29 (c) hereof; and
(e) Bureau of Working Conditions.
SECTION 19. Attached Agencies. — The following agencies shall continue to be attached to
the Ministry for policy and program coordination and administrative supervision:
(a) National Wages Council;
(b) Philippine Overseas Employment Administration;
(c) Employees Compensation Commission which is hereby reorganized to include
the Executive Director of the ECC as an ex-officio member of the Commission;
(d) The National Manpower and Youth Council;
(e) The National Labor Relations Commission;
(f) The Welfare Fund for Overseas Workers' Administration which is hereby renamed as the
Overseas Workers' Welfare Administration;
(g) Maritime Training Council; and
(h) National Maritime Polytechnic
SECTION 20. Center for Labor Studies. — There is hereby created a Center for Labor
Studies, hereinafter referred to as the Center, which shall be under the administrative
supervision of the Minister. The Center shall absorb the research and publication functions
of the Institute of Labor and Manpower Studies which is hereby abolished in accordance with
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Section 29 (b). The Center, to be headed by an Executive Director, assisted by a
Deputy Executive Director, shall have the following functions:
(a) Undertake research and studies in all areas of labor and manpower policy and
administration;
(b) Review the rationale of existing legislation and regulations and analyze the costs involved
in the implementation of such legislation against the benefits expected to be derived;
(c) Study and develop innovative and indigenous approaches towards the promotion of
harmonious and productive labor-management relations, and the improvement of workers'
welfare services;
(d) Develop and undertake research programs and projects in collaboration with other
national agencies to enhance the Ministry's capability to participate in national decision and
policy making;
(e) Enter into agreements with international or bilateral agencies for the carrying out of the
foregoing functions;
(f) Expand the scope of its research interests into other countries and regions;
(g) Publish its research studies for dissemination to government as well as to all concerned
parties; and
(h) Perform such other functions as may be provided by law or assigned by the Minister.
SECTION 21. Bureaus of Labor and Employment Statistics. — A Bureau of Labor and
Employment Statistics is hereby created and shall absorb the functions of the Labor Statistics
Service which is hereby abolished in accordance with Section 29 (b). The Bureau shall have
the following functions:
(a) Formulate, develop and implement plans and programs on the labor statistical system
in order to provide the government with timely, accurate and reliable data on labor and
employment;
(b) Conduct nationwide surveys and studies which will generate trends and structures on
labor and employment;
(c) Develop and prescribe uniform statistical standards, nomenclatures and methodologies
for the collection, processing, presentation and analysis of labor and employment data;
(d) Establish appropriate mechanisms for the coordination of all statistical activities in the
Ministry and for collaboration with other government and private agencies including
international research organizations in the conduct of surveys and studies in the area of labor
and employment;
54
(e) Disseminate statistical information and provide statistical services/advice to the users by
establishing a data bank and issuing the Bureau's statistical materials and research findings;
(f) Develop and undertake programs and projects geared towards the enhancement of the
technical competence of the Ministry on theories, techniques and methodologies for the
improvement of the labor statistical system;
(g) Monitor and exercise technical supervision over the statistical units in the Ministry and its
agencies; and
(h) Perform such other functions as may be provided by law or assigned by the Minister.
SECTION 22. National Conciliation and Mediation Board. — A National Conciliation and
Mediation Board, herein referred to as the "Board", is hereby created and which shall absorb
the conciliation, mediation and voluntary arbitration functions of the Bureau of Labor
Relations in accordance with Section 29 (c) hereof. The Board shall be composed of an
Administrator and two (2) Deputy Administrators. It shall be an attached agency under the
administrative supervision of the Minister of Labor and Employment.
The Administrator and the Deputy Administrators shall be appointed by the President upon
recommendation of the Minister of Labor and Employment. There shall be as many
Conciliators-Mediators as the needs of the public service require, who shall have at least
three (3) years of experience in handling labor relations and who shall be appointed by the
President upon recommendation of the Minister.
The Board shall have its main office in Metropolitan Manila and its Administrator shall
exercise supervision over Conciliators-Mediators and all its personnel. It shall establish as
many branches as there are administrative regions in the country, with as many Conciliators-
Mediators as shall be necessary for its effective operation. Each branch of the Board shall
be headed by an Executive Conciliator-Mediator.
The Board shall have the following functions:
(a) Formulate policies, programs, standards, procedures, manuals of operation and
guidelines pertaining to effective mediation and conciliation of labor disputes;
(b) Perform preventive mediation and conciliation functions;
(c) Coordinate and maintain linkages with other sectors or institutions, and other government
authorities concerned with matters relative to the prevention and settlement of labor
disputes;
(d) Formulate policies, plans, programs, standards, procedures, manuals of operation and
guidelines pertaining to the promotion of cooperative and non-adversarial schemes,
grievance handling, voluntary arbitration and other voluntary modes of dispute settlement;
(e) Administer the voluntary arbitration program; maintain/update a list of voluntary
arbitrations; compile arbitration awards and decisions;
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(f) Provide counselling and preventive mediation assistance particularly in the administration
of collective agreements;
(g) Monitor and exercise technical supervision over the Board programs being implemented
in the regional offices; and
(h) Perform such other functions as may be provided by law or assigned by the Minister.
SECTION 23. Transfer. — The National Productivity Commission is hereby transferred from
the National Economic Development Authority and attached to the Ministry in accordance
with Section 29 (c) hereof. The Commission shall primarily deal with productivity promotion
and enhancement, education and training, coordination/monitoring, funding and the conduct
of special and policy studies directly related to its activities. It shall have the Minister of Trade
and Industry as Chairman and the Minister of Labor and Employment as Vice-Chairman.
SECTION 24. Regional Offices. — The Ministry is hereby authorized to establish, operate
and maintain such ministry-wide Regional Offices in each of the administrative regions of the
country, insofar as necessary, which shall be headed by a Regional Director who shall have
supervision and control thereof. The Regional Director, whenever necessary, shall be
assisted by an Assistant Regional Director. A Regional Office shall have, within its regional
area, the following functions:
(a) Implement laws, policies, plans, programs, projects, rules and regulations of the Ministry;
(b) Provide economical, efficient and effective service to the people;
(c) Coordinate with regional offices of other ministries and agencies;
(d) Coordinate with local government units; and
(e) Perform such other functions as may be provided by law or assigned by the Minister.
SECTION 25. New Structure and Pattern. — Upon approval of this Executive Order, the
officers and employees of the Ministry shall in a holdover capacity, continue to perform their
respective duties and responsibilities and receive the corresponding salaries and benefits
unless in the meantime they are separated from government service pursuant
to Executive Order No. 17 (1986) or Article III of the Freedom Constitution.
The new position structure and staffing pattern of the Ministry shall be approved and
prescribed by the Minister for the Ministry within one hundred twenty (120) days from the
approval of this Executive Order and the authorized positions created thereunder shall be
filled with regular appointments by him or by the President as the case may be. Those
incumbents whose positions are not included therein or who are not reappointed shall be
deemed separated from the service. Those separated from the service shall receive the
retirement benefits to which they may be entitled under existing laws, rules and regulations.
Otherwise, they shall be paid the equivalent of one-month basic salary for every year of
service, or the equivalent nearest fraction thereof favorable to them on the basis of the
55
highest salary received, but in no case shall such payment exceed the equivalent of 12
months salary.
No court or administrative body shall issue any writ or preliminary injunctions or
restraining order to enjoin the separation/replacement of any officer or employee affected
under this Executive Order.
SECTION 26. Prohibition Against Reorganizational Change. — No change in the
reorganization herein prescribed shall be valid except upon prior approval of the President
for the purpose of promoting efficiency and effectiveness in the delivery of public services.
SECTION 27. Funding. — Funds needed to carry out the provisions of
this Executive Order shall be taken from funds available in the Ministry.
SECTION 28. Implementing Authority of Minister. — The Minister shall issue such rules,
regulations and other issuances as may be necessary to ensure the effective implementation
of the provisions of this Executive Order. cd i
SECTION 29. Transitory Provisions. — In the abolition/transfer of entity/functions as
prescribed in the Executive Order, the following rules shall be provided:
(a) Any transfer of entities shall include the functions, appropriations, funds, records,
equipment, facilities, other properties, assets, and liabilities and of the transferred entity as
well as the personnel thereof as may be necessary, who shall, in a holdover capacity,
continue to perform their respective duties and responsibilities and receive the corresponding
salaries and benefits unless in the meantime they are separated from government service
pursuant to Executive Order No. 17 (1986) or Article III of the Freedom Constitution. Those
personnel from the transferred entity whose positions are not included in the new position
structure and staffing pattern approved by the Minister or who are not reappointed shall be
entitled to the benefits provided in the second paragraph of Section 25 hereof.
(b) Any transfer of functions which results in the abolition of the entity that has exercised such
transferred functions shall include as may be necessary, to the proper discharge of the
transferred functions, the appropriations, funds, records, equipment, facilities, other assets,
and personnel of the entity from which such functions have been transferred. The remaining
appropriations and funds shall revert to the General Fund and the remaining records,
equipment, facilities and other assets shall be allocated to such appropriate units as the
Minister shall determine or otherwise shall be disposed of, in accordance with the Auditing
Code and other pertinent laws, rules and regulations. The liabilities, if any, of the abolished
entity shall be treated likewise in accordance with the Auditing Code and other pertinent laws,
rules and regulations. Incumbents of the abolished entity shall, in a holdover capacity
continue to perform their respective duties and responsibilities and receive the corresponding
salaries and benefits unless in the meantime they are separated from government service
pursuant to Executive Order No. 17 (1986) or Article III of the Freedom Constitution. Any
such personnel whose position is not included in the new position structure and staffing
pattern approved by the Minister or who is not reappointed shall be entitled to the benefits
provided in the second paragraph of Section 25 hereof.
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(c) Any transfer of functions which does not result in the abolition of the entity that has
exercised such transferred functions shall include the appropriations, funds, records,
equipment, facilities, other assets as well as the personnel of the entity from which such
functions have been transferred that are necessary to the proper discharge of such
transferred functions. The liabilities, if any, which have been incurred in connection with the
discharge of the transferred functions shall be allocated in accordance with the Auditing
Code and the pertinent laws, rules and regulations. Such personnel shall, in a holdover
capacity, continue to perform their respective duties and responsibilities and receive the
corresponding salaries and benefits unless in the meantime they are separated from
government service pursuant to Executive Order No. 17 (1986) or Article III of the Freedom
Constitution. Any such personnel whose position is not included in the new position structure
and staffing pattern approved by the Minister or who is not reappointed shall be entitled to
the benefits provided in the second paragraph of Section 25 hereof.
(d) In case of the abolition of an entity which does not result in the transfer of its functions to
another entity, the appropriations and funds of the abolished entity shall revert to the General
Fund, while the records, equipment, facilities and other assets thereof shall be allocated to
such appropriate units as the Minister shall determine or otherwise shall be disposed of in
accordance with the Auditing Code and other pertinent laws, rules and regulations. The
liabilities, if any, of the abolished entity shall be treated in accordance with the Auditing
Code and other pertinent laws, while the personnel thereof shall be entitled to the benefits
provided in the second paragraph of Section 25 hereof.
SECTION 30. Change of Nomenclatures. — In the event of the adoption of a
new Constitution which provides for a presidential form of government, the Ministry shall be
called Department of Labor and Employment and the titles of Minister, Deputy Minister, and
Assistant Minister shall be changed to Secretary, Undersecretary, and Assistant Secretary,
respectively.
SECTION 31. Notice or Consent Requirement. — If any reorganizational change herein
authorized is of such substance or materiality as to prejudice third persons with rights
recognized by law or contract such that notice to or consent of creditors is required to be
made or obtained pursuant to any agreement entered into with any of such creditors, such
notice or consent requirement shall be complied with prior to the implementation of such
reorganizational change.
EXECUTIVE ORDER NO. 251
AMENDING CERTAIN SECTIONS OF EXECUTIVE ORDER NO. 126 DATED JANUARY
30, 1987
SECTION 1. Section 7 of Executive Order No. 126 is hereby amended to read as follows:
"Sec. 7. Office of the Secretary. — The Office of the Secretary shall consist of the Secretary
and his immediate staff. In addition, there is hereby created in the Office of the Secretary a
Joint RP-US Lab or Committee Staff Unit which shall provide technical and other necessary
services to the Philippine panel in the Joint Labor Committee created under the RP-US Base
Labor Agreement and for other special projects. The Unit who shall be headed by a
Head Executive Assistant who shall be assisted by five (5) Staff Assistants."
56
SECTION 2. Section 18 of Executive Order No. 126 is hereby amended to read as follows:
"SECTION 18. Bureaus. — The following staff bureaus of the Department are hereby
retained and shall continue to have the same functions, except as otherwise provided herein:
(a) Bureau of Local Employment;
(b) Bureau of Women and Minors, which hereby renamed as the Bureau of Women and
Young Workers;
(c) Bureau of Rural Workers;
(d) Bureau of Labor Relations, which shall continue to perform its present functions except
those to be absorbed by the National Mediation and Conciliation Board as provided under
Section 29 (c) hereof; and
(e) Bureau of Working Conditions."
SECTION 3. Section 20 of Executive Order No. 126 is hereby amended to read as follows:
"SECTION 20. Institute For Labor Studies. — There is hereby created an Institute for Labor
Studies, hereinafter referred to as the Institute, which shall attached to the Department of
Labor and Employment for policy and program coordination and administrative supervision.
The Institute shall absorb the research and publication functions of the Institute of Labor and
Manpower Studies which is hereby abolished in accordance with Section 29(b) of
this Executive Order. The Institute, to be headed by an Executive Director, assisted by a
Deputy Executive Director, shall have the following functions:
(a) Undertake research and studies in all areas of labor and manpower policy and
administration.
(b) Review the rationale of existing legislation and regulations and analyze the cost involved
in the implementation of such legislation against the benefits expected to be derived;
(c) Study and develop innovative and indigenous approaches towards the promotion
harmonious and productive labor-management relations, and the improvement of workers'
welfare services;
(d) Develop and undertake research programs and projects in collaboration with other
national agencies to enhance the Department's capability to participate in national decision
and policy making;
(e) Enter into agreements with international or bilateral agencies for the carrying out of the
foregoing functions;
(f) Expand the scope of its research interests into other countries and regions;
(g) Publish its research studies for dissemination to government as well as to all concerned
parties; and
(h) Perform such other functions as may be provided by law or assigned by the Secretary."
SECTION 4. Section 22 of Executive Order No. 126 is hereby amended to read as follows:
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"SECTION 22. National Conciliation and Mediation Board. — A National Conciliation and
Mediation Board, herein referred to as the "Board", is hereby created and which shall absorb
the conciliation, mediation and voluntary arbitration functions of the Bureau of Labor
Relations in accordance with Section 29 (c) hereof. The Board shall be composed of an
Administrator and two (2) Deputy Administrators. It shall be an attached agency under the
administrative supervision of the Secretary of Labor and Employment.
The Administrators and the Deputy Administrators shall be appointed by the President upon
recommendation of the Secretary of Labor and Employment. There shall be as many
Conciliators-Mediators as the needs of the public service require, who shall have at least
three (3) years of experience in handling labor relations and who shall be appointed by the
Secretary.
The Board shall have its main office in Metropolitan Manila and its Administrators shall
exercise supervision over Conciliators-Mediators and all its personnel. It shall establish as
many branches as there are administrative regions in the country, with as many Conciliator-
Mediators as shall be necessary for its effective operation. Each branch of the Board shall
be headed by an Executive Conciliator-Mediator.
The Board shall have the following functions:
(a) Formulate policies, programs, standards, procedures, manuals of operation and
guidelines pertaining to effective mediation and conciliation of labor disputes;
(b) Perform preventive mediation and conciliation functions;
Single Entry Approach
(c) Coordinate and maintain linkages with other sectors of institutions, and other government
• REPUBLIC ACT NO. 10396
authorities concerned with matters relative to the prevention and settlement of labor
disputes;
(d) formulate policies, plans, programs, standards, procedures, manuals of operation and
guidelines pertaining to the promotion of cooperative and non-adversarial schemes,
grievance handling, voluntary arbitration and other voluntary modes of dispute settlements;
(e) Administer the voluntary arbitration program; maintain/update a list of voluntary
arbitrations; compile arbitration awards and decisions;
(f) Provide counselling and preventive mediation assistance particularly in the administration
of collective agreement; awards and decisions;
(g) Monitor and exercise technical supervision over the Board programs being implemented
in the regional offices; and
(h) Perform such other functions as may be provided by law or assigned by the Secretary.
A Tripartite Voluntary Arbitration Advisory Council is hereby created and attached to the
National Conciliation and Mediation Board. The Tripartite Voluntary Arbitration Advisory
Council shall advise the National Conciliation Board on matters pertaining to the promotion
of voluntary arbitration as the preferred mode of dispute settlement.
57
The Tripartite Voluntary Arbitration Advisory Council shall consist of the Administrator of the
National Conciliation and Mediation Board as Chairman, one other member from the
government, two members representing labor, and two other members representing
management. The members shall be appointed by the President to serve for a term of three
(3) years. The Chairman and Members thereof shall serve without compensation."
SECTION 5. Section 24 of Executive Order No. 126 is hereby amended to read as follows:
"Sec. 24. Regional Offices, District Offices and Provincial Extension Units. — The
Department is hereby authorized to establish, operate and maintain such Department-wide
Regional Offices, District Offices and Provincial Extension Units in each of the administrative
regions of the country, insofar as necessary to promote economy and efficiency in the
delivery of its services. Each Regional Office shall be headed by a Regional Director who
shall have supervision and control thereof. The Regional Director, whenever necessary, shall
be assisted by an Assistant Regional Director. A Regional Office shall have, within its regional
areas, the following functions:
(a) Implement laws, policies, plans, programs, projects, rules and regulations of the
Department;
(b) Provide economical, efficient and effective service to the people;
(c) Coordinate with regional offices of other departments and agencies;
(d) Coordinate with local government units;
(e) Perform such other functions as may be provided by law or assigned by the Secretary."
REPUBLIC ACT NO. 10396
AN ACT STRENGTHENING CONCILIATION-MEDIATION AS A VOLUNTARY MODE OF
DISPUTE SETTLEMENT FOR ALL LABOR CASES, AMENDING FOR THIS PURPOSE
ARTICLE 228 OF PRESIDENTIAL DECREE NO. 442, AS AMENDED, OTHERWISE
KNOWN AS THE "LABOR CODE OF THE PHILIPPINES"
SECTION 1. A new article is hereby inserted in the Labor Code to read as follows:
"ART. 228. Mandatory Conciliation and Endorsement of Cases. — (a) Except as provided in
Title VII-A, Book V of this Code, as amended, or as may be excepted by the Secretary of
Labor and Employment, all issues arising from labor and employment shall be subject to
mandatory conciliation-mediation. The labor arbiter or the appropriate DOLE agency or office
that has jurisdiction over the dispute shall entertain only endorsed or referred cases by the
duly authorized officer.
"(b)Any or both parties involved in the dispute may pre-terminate the conciliation-mediation
proceedings and request referral or endorsement to the appropriate DOLE agency or office
which has jurisdiction over the dispute, or if both parties so agree, refer the unresolved issues
to voluntary arbitration."
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 SECTION 2. Implementing Rules and Regulations. — The Secretary of Labor and
Employment shall promulgate the necessary rules and regulations to implement the
provisions of this Act.
• D.O. 151-16
DOLE DEPARTMENT ORDER NO. 151-16
IMPLEMENTING RULES AND REGULATIONS OF REPUBLIC ACT NO. 10396, OR
"AN ACTSTRENGTHENING CONCILIATION-MEDIATION AS A VOLUNTARY MODE OF
DISPUTE SETTLEMENT FOR ALL LABOR CASES, AMENDING FOR THIS PURPOSE
ARTICLE 228 OF PRESIDENTIAL DECREE NO. 442, AS AMENDED, OTHERWISE
KNOWN AS THE LABOR CODE OF THE PHILIPPINES"
Pursuant to Section 2 of Republic Act No. 10396, or An Act Strengthening Conciliation-
Mediation as a Voluntary Mode of Dispute Settlement for All Labor Cases, Amending for the
Purpose Article 228 of Presidential Decree No. 442, Otherwise Known as the "Labor Code
of the Philippines" (As Amended), the following Implementing Rules and Regulations is
hereby issued:
RULE I
General Provisions
SECTION 1. Title. — This Implementing Rules and Regulations shall be known as the "Single
Entry Approach Implementing Rules and Regulations or SEnA IRR", pursuant
to Republic Act No. 10396, which institutionalized the Single Entry Approach or SEnA
Program of the Department of Labor and Employment (DOLE) and its attached agencies
under Department Order No. 107-10, Series of 2010.
SECTION 2. Guiding Principles. — Pursuant to the constitutional mandate to promote the
preferential use of voluntary modes of settling disputes including conciliation-mediation, all
issues arising from labor and employment shall be subject to a 30-day mandatory
conciliation-mediation services or the Single Entry Approach (SEnA).
Accordingly DOLE, its regional offices and attached agencies shall: (1) provide a speedy,
impartial, inexpensive and accessible settlement of labor issues arising from employer-
employee relations; (2) promote the use of conciliation-mediation in the settlement of all labor
cases; and (3) strengthen cooperation and coordination between and among DOLE agencies
involved in dispute settlement.
SECTION 3. Scope and Coverage. — All issues arising from labor and employment shall be
subject to the 30-day mandatory conciliation-mediation, except:
a) Notices of strike/lockout or preventive mediation cases with the National Conciliation and
Mediation Board (NCMB);
b) Issues arising from the interpretation or implementation of the collective bargaining
agreement and those arising from interpretation or enforcement of company personnel
policies which should be processed through the grievance machinery.
c) Applications for exemption from Wage Orders with the National Wages and Productivity
Commission (NWPC);
58
d) Issues involving violations of:
1) Alien Employment Permit (AEP);
2) Private Employment Agency (PEA) authority or license;
3) Working Child Permit (WCP) and violations of Republic Act No. 9231(Anti-Child
Labor Law);
4) Registration under Department Order No. 18-A, Series of 2011;
5) Professional license issued by the Professional Regulations Commission (PRC)
and violation of Professional Code of Conduct;
6) Technical Education and Skills Development Authority (TESDA) accreditations;
and
7) Other similar permits, licenses or registrations issued by the DOLE or its
attached agencies.
e) Violations of POEA Rules and Regulations involving:
1) Serious offenses and offenses penalized with cancellation of license;
2) Disciplinary actions against overseas workers/seafarers which are considered
serious offenses or which carry the penalty of delisting from the POEA registry at
first offense;
3) Complaints initiated by the POEA;
4) Complaints against an agency whose license is revoked, cancelled, expired or
otherwise delisted; and
5) Complaints categorized under the POEA Rules and Regulations as not subject
to SEnA.
f) Issues on occupational safety and health standards involving imminent danger situation,
dangerous occurrences/disabling injury, and absence of personal protective equipment.
SECTION 4. Definition of Terms. — For purposes of this IRR, the following terms and
phrases shall mean:
a) "Conciliation-Mediation" refers to the process of facilitating a settlement of labor and
employment issues.
b) "Co-conciliate-Mediate" refers to coordinated conciliation-mediation by two or more
SEADs from different areas/offices.
c) "Disposition" refers to settlement, withdrawal, lack of interest, or referral of the RFA.
d) "Labor Laws Compliance Officer (LLCO)" refers to DOLE personnel authorized to conduct
Joint Assessment, Compliance Visit, Occupational Safety and Health Standards
Investigation, compliance advocacies and advisory services, hold conciliation and mandatory
conferences, and perform such other related functions which may be necessary in the
enforcement of the Labor Code of the Philippines, as amended, and other related laws.
e) "Lack of Interest" refers to non-appearance of the requesting party for two (2) consecutive
scheduled conferences despite due notice.
f) "Referral" refers to the endorsement by the handling SEADO of unsettled issues to the
DOLE office or agency that has jurisdiction over the issue using Referral Form 6.
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g) "Request for Assistance (RFA)" refers to the request for the conduct of conciliation-
mediation under SEnA to assist the parties to arrive at a settlement.
h) "Requesting Party" refers to any aggrieved person such as employer, worker,
including kasambahay, or group of workers, whether local or overseas, or a union, workers
association or federation which files a Request for Assistance or RFA.
i) "Responding Party" refers to any person, natural or juridical, requested to appear for
conciliation-mediation under SEnA.
j) "Settlement" refers to the full and complete settlement by both parties on the issues subject
of the RFA.
k) "Single Entry Approach (SEnA)" refers to the administrative approach to provide an
accessible, speedy, impartial, and inexpensive settlement procedure of all labor and
employment issues through a 30-day mandatory conciliation-mediation.
l) "Single Entry Assistance Desk or SEAD" refers to the desk/unit in the DOLE
Central/Regional/Provincial/Field Offices and Attached Agencies providing conciliation-
mediation services or assistance under SEnA.
m) "Single Entry Assistance Desk Officer (SEADO) or Desk Officer" refers to a trained
personnel of DOLE and its attached agencies and designated by the Secretary of Labor and
Employment, or in the case of attached agencies, by the Head of Office, to provide interview,
advice, and conduct conciliation-mediation services.
n) "Withdrawal" refers to the written manifestation by the requesting party to terminate the
conciliation-mediation proceedings or withdraw the RFA.
o) "30-day mandatory conciliation-mediation period" refers to the 30 calendar days period
within which to effect a settlement through mandatory conciliation-mediation services from
the conduct of initial conference.
SECTION 5. Establishment of a SEAD. — There shall be Single Entry Assistance Desks
(SEADs) established in the following offices:
a) Central/Regional/Provincial/Field/District Offices of the Department of Labor and
Employment;
b) National Conciliation and Mediation Board (NCMB) and its Regional Branches;
c) National Labor Relations Commission (NLRC) and its Regional Arbitration Branches;
d) Philippine Overseas Employment Administration (POEA) and its Regional Offices;
e) Overseas Workers Welfare Administration (OWWA) and its Regional Offices; and
f) Philippine Overseas Labor Offices (POLOs).
The DOLE Regional Coordinating Council (RCC) shall establish as many SEADs as may be
necessary depending on the volume of RFAs in the region.
There shall be as many SEADOs as may be necessary for the effective and efficient
operation of the mandatory conciliation-mediation services.
RULE II
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Request for Assistance
SECTION 1. Who May File. — Any aggrieved person such as employer, worker,
including kasambahay, or group of workers, whether local or overseas, or a union, workers
association or federation may file a Request for Assistance (RFA).
In case of absence or incapacity of the aggrieved person, his/her immediate family with
Special Power of Attorney (SPA) may file the RFA. In case of death, his/her legitimate heir/s
may file the RFA.
SECTION 2. Where to File. — The RFA shall be filed at any SEAD in the region where the
employer principally operates except in the following cases:
a) at the nearest DOLE office or attached agency in case of separated kasambahay or
deployed workers of service providers or subcontractors operating in the region other than
where it principally operates;
b) at the nearest POLO in the country of destination or disembarkation in case of OFW, or at
the nearest DOLE office or attached agency of preference when in the country; and
c) at the DOLE Office of registration in case of union or federation representing a local
chapter.
SECTION 3. Co-conciliation-Mediation. — Coordinated conciliation-mediation by two or
more SEADs shall be observed if the RFA is filed with the SEAD most convenient to the
requesting party but outside the region where the employer principally operates, the SEADO
shall entertain the same and co-conciliate-mediate with the SEAD of the region where the
employer principally operates.
SECTION 4. Consolidation of RFA. — Where two or more RFAs involving the same
responding party and issues are filed before different SEADs within the same
region/office/unit, the RFAs shall be consolidated before the first SEAD taking cognizance of
the RFAs, when practicable.
RULE III
Action on the Request for Assistance
SECTION 1. Request for Assistance and Evaluation. — The RFA shall be acted upon as
follows:
a) Request for Assistance through Personal Appearance. — The SEADO shall:
1) Inform the requesting party of the objectives and procedures of the 30-day
mandatory conciliation-mediation program and the possible consequences
thereof;
2) Assist the requesting party in accomplishing SENA Form 01 (RFA Form) in
three (3) copies;
3) Conduct initial interview for verification of issues upon receipt of the duly
accomplished SENA Form 01 (RFA Form) and initially explore settlement options,
if applicable;
4) Assign reference number pursuant to Section 2 of this Rule and set the initial
conference; and
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 5) Coordinate with other SEAD in case there is a need to co-conciliate-mediate
pursuant to Section 3 of Rule II.
b) Request for Assistance through Letter. — Where the RFA is filed through a letter, whether
written or e-mail, the Head of Office, through the SEnA focal person, shall immediately
respond by explaining the procedures of the SEnA and require the personal appearance of
the requesting party before the SEADO.
c) Request for Assistance through Anonymous Letter, SMS, or Phone Call. — In case of
anonymous RFA, the Head of Office, through the SEnA focal person, shall refer the same for
the conduct of a Special Joint Assessment to facilitate compliance or correction if there are
deficiencies.
d) Request for Assistance Involving Diplomats or International Organizations with Diplomatic
Immunity. — If the responding party is a diplomat or an official of an embassy, consulate
general or international organization, the SEADO shall:
1) Advise the requesting party of the need to verify the immunity of the responding
party;
2) Notify the responding party through the Office of Protocol-Department of Foreign
Affairs (OP-DFA) on the existence of RFA and to appear before the SEADO for
conciliation-mediation; and
3) In case of non-appearance of the responding party, refer the RFA to the
appropriate agency/office.
SECTION 2. Receiving and Recording. — Upon filing, a reference number shall be assigned
which should reflect the following: SEAD (Name Regional Office)-(Province/Field/District
Office/City)-(Month)-(No. of Request under the Region)-(Year).
Ex. SEAD ROIVA-LAG-12-001-2015, SEAD RCMB-NCR-QC-12-001-2015, SEAD NLRC-
RABIV-12-001-2015
An entry shall be made in the SEnA Logbook/data system indicating the following:
a) reference number;
b) date of filing;
c) date of initial conference;
d) date of disposition/settlement;
e) names and addresses of requesting and responding parties;
f) nature and subject of the grievance/request; and
g) action taken.
SECTION 3. Raffle and Assignment of RFA. — Within one (1) day from receipt, the Head of
Office, through the SEnA focal person, shall assign the RFAs to the SEADO or caused the
assignment by raffle in case there are two or more SEADOs in the SEAD. The SEADO shall
immediately conduct the assessment pursuant to Section 1 of this Rule.
SECTION 4. Notice of Conference. — Upon receipt of the assigned RFA, the SEADO shall
schedule within the day the initial conference using the SEnA Notice Form and may utilize
any of the following modes of service of notice:
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a) personal;
b) registered mail;
c) electronic mail;
d) courier;
e) facsimile; or
f) any other fast, economical and effective mode of notifying the parties taking into
consideration the prevailing circumstances within the SEADO's area of responsibility.
SECTION 5. Schedule of Conferences. — The SEADO shall observe the following in the
conduct of conferences:
a) Initial Conference. — Initial conference shall be conducted within five (5) working days
from the date of assignment of the RFA.
b) Succeeding Conferences. — The SEADO may hold as many conferences as may be
deemed necessary within the 30-day mandatory conciliation-mediation period to facilitate a
settlement agreement.
c) Resetting. — The resetting of the conference shall not be allowed except on reasonable
grounds and if the other party concurred. In such a case, the conference shall be held not
later than three (3) calendar days from the original schedule of conference.
d) Extension. — The 30-day period is non-extendible except upon mutual agreement of the
parties and there is a possibility for settlement. Such extension shall not exceed fifteen (15)
calendar days.
RULE IV
Conduct of Conciliation-Mediation
SECTION 1. Appearance of Parties. — Upon receipt of the notice of conference, the parties
shall personally appear at all times.
SEnA being an administrative approach for a conciliated settlement and not a litigation, the
parties shall represent themselves and lawyers are discouraged from participating in the
conference except when they are the requesting party or the employer.
SECTION 2. Appearance of Lawyers, Agents or Representatives. — Lawyers, agents or
attorneys-in-fact appearing in behalf of any of the parties should submit a Special Power of
Attorney/Board Resolution/Secretary's Certificate granting them authority to represent and
enter into a binding agreement for their principal in the following circumstances:
a) When the requesting/responding party is already deployed abroad or out of the country or
employed/assigned/migrated to other region;
b) When the requesting/responding party is a minor or physically incapacitated; or
c) If the requesting/responding party died during the pendency of the RFA, the heir/s of the
deceased may appear and shall present the following:
1) Original or NSO-authenticated copy of death certificate; and
2) Proof of relationship through original or NSO-authenticated copy of marriage
contract/birth certificate.
SECTION 3. Conciliation-Mediation Process. — The SEADO, in the conduct of conciliation-
mediation, shall:
a) Clarify the issues, validate positions and determine the underlying issues;
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b) Narrow down the disagreements and broaden areas for settlement; SECTION 9. Confidentiality of Proceedings and Minutes. — Information and statements
c) Encourage parties to generate options and enter into stipulations; given in confidence at the conciliation-mediation proceedings shall be treated as privileged
d) Offer proposals and options toward mutually acceptable solutions and voluntary communication and shall not be used as evidence in any arbitration proceedings, except
settlement; when there is waiver of confidentiality.
e) Prepare the settlement agreement in consultation with the parties; and Voice or video recorders or any electronic recording device shall be prohibited during the
f) Monitor the voluntary and faithful compliance of the settlement agreement. proceedings. In case of violation, the voice and video recorders shall be confiscated without
prejudice to appropriate legal action.
SECTION 4. Pre-Termination of the 30-Day Mandatory Conciliation-Mediation. — The 30-
day period may be pre-terminated on any of the following instances: SECTION 10. Process Flow. —
a) Written withdrawal by the requesting party which should be reflected in the minutes of the
conference;
b) Non-appearance of either the requesting party or the responding party in two (2)
consecutive scheduled conferences despite due notices subject to the provision of Section 5
hereof, unless there is a reasonable ground for their failure to appear; or
c) Request for referral to the appropriate DOLE office or agency by the requesting party or
both parties prior to the expiration of the 30-day period.

SECTION 5. Termination of Mandatory Conciliation-Mediation Proceedings. — Any of the

following shall render the conciliation-mediation proceedings closed and terminated:
a) Pre-termination of the 30-day mandatory conciliation-mediation proceedings as provided
in the preceding Section; or
b) Upon full compliance with the Settlement Agreement.

SECTION 6. Issuance of Referral. — The SEADO shall issue the Referral to the requesting
party within one (1) day under any of the following circumstances:
a) Expiration of the 30-day mandatory conciliation-mediation period, unless there is a request
for extension;
b) Failure of the parties to reach an agreement within the 30-day mandatory conciliation-
mediation period;
c) Non-appearance of the responding party in two (2) scheduled consecutive conferences
despite due notices;
d) Non-settlement of one or some issues but not all in RFA with multiple issues; or
e) Non-compliance with the Agreement.
Referral may be made to the appropriate DOLE office or agency or Voluntary Arbitration. The
requesting party shall submit the Referral to the appropriate office. However, no Referral shall
be issued where the requesting party has withdrawn the RFA.

SECTION 7. Cognizance of Referred RFAs. — Except on issues excluded pursuant to

Section 3, Rule 1 of this IRR, only endorsed or referred RFAs shall be entertained by a Labor
Arbiter, or the appropriate DOLE office or attached agency that has jurisdiction over the
issue/s.

SECTION 8. Contents of Referral. — The Referral must contain the names of the parties,
summary of unsettled issues to the office or agency having jurisdiction over the issue and the RULE V
date of the referral. For voluntary arbitration, the Referral should specify the issues to be Nature and Contents of Settlement Agreement
arbitrated.
SECTION 1. Preparation of Settlement Agreement. — In the preparation of agreement, the
SEADO shall:

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a) Make use of the language or dialect clearly understood by the parties; and
b) Inform the parties of the consequences of the acceptance of the settlement amount despite
having knowledge of his/her rightful claims shall mean the absence of fraud, violence or
coercion and voluntariness of the settlement agreement.
The agreement shall be reduced in writing using the SEnA Settlement Agreement Form,
signed by both parties and attested by the SEADO. It shall indicate the parties' voluntary
agreement and acceptance of the amount as full/partial settlement, in the case of the latter,
it shall include the schedule of payments.
Agreement on monetary claims arising from violations of labor standards shall be fair and
reasonable, and not contrary to law, public morals and public policy. The
fairness/reasonableness of settlement agreements shall depend on the totality of the
circumstances, the degree of voluntariness and credibility of the consideration.
SECTION 2. Types of Settlement Agreement. — The SEADO shall ensure the voluntary and
faithful compliance of the following Settlement Agreements:
a) Full Settlement. — The full payment of monetary claim and/or reinstatement in case of
termination issues/constructive dismissal/illegal suspension, or complete performance of
an act sought for by the requesting party. The SEADO shall attach a duly accomplished
waiver and quitclaim document as proof of full compliance.
b) Partial Settlement. — There is partial settlement when payment of monetary claims is by
installment or in case of reinstatement/lifting of suspension or any other positive action sought
for by the requesting party shall be made on a future date agreed upon.
In partial settlement, the responding party is required to make a report of compliance with
the schedule of payment subject to verification by the SEADO. The RFA shall be deemed
settled after payment of the last installment.
The waiver and quitclaim duly signed by both parties shall be issued only upon full settlement.
SECTION 3. Effect of Settlement Agreement. — Settlement agreement reached by the
parties before the SEADO shall be final and immediately executory. It shall be binding on all
DOLE offices and attached agencies except when the settlement agreement is established
to be contrary to law, morals, public order and public policy.
No retaliatory action shall be undertaken by both parties against each other.
SECTION 4. Settlement for a Show. — In case of settlement for a show or where the
settlement amount is reported to have been taken back or confiscated by the responding
party, both parties shall be called for conference by the SEADO who facilitated the settlement.
The SEADO shall verify the report and require the responding party to pay the requesting
party the full settlement amount with legal interest reckoned from the date of the settlement
should there be substantial proof that the settlement was for a show.
SECTION 5. Effect of Non-Compliance with the Settlement Agreement. — The parties shall
comply faithfully and in good faith with the settlement agreement without any attempt for
62
avoidance or evasion, whatsoever. Settlement for a show shall also be considered as non-
compliance.
In case of non-compliance, the SEADO shall exert best effort to effect the agreement,
otherwise, he/she shall refer it for enforcement. The requesting party may file an action for
enforcement with the NLRC/POEA/DOLE Regional Office, as the case may be.
For enforcement of the agreement through the DOLE Regional Office, the requesting party
may request for the issuance of a writ of execution or the conduct of compliance visit of the
responding establishment, if applicable.
In cases where the RFA is filed before offices with no sheriffs, the concerned Head of Office
shall, upon request of the requesting party, endorse the enforcement to the appropriate
Regional Arbitration Branch (RAB) of the NLRC, or to the DOLE Regional Office. The same
shall be docketed by the RAB or DOLE Regional Office as an arbitration case merely for
enforcement of settlement agreement as a ministerial function.
RULE VI
Duties and Norm of Conduct
SECTION 1. Duties of SEADO. — The SEADO shall assist the parties to arrive at a
settlement and shall:
a) Explain the objectives and process of the program;
b) Conduct interview;
c) Clarify if the requesting party has filed a case in any other office/agency involving the same
issue;
d) Assist the requesting party in accomplishing the SENA Form 01 (RFA Form);
e) Record and assign reference number;
f) Coordinate with other SEAD in case there is a need for co-conciliation-mediation;
g) Issue notices of conference;
h) Facilitate the conciliation-mediation;
i) Assist parties in the preparation of the agreement;
j) Monitor faithful compliance of the agreement;
k) Issue Referral when necessary; and
l) Submit all required reports.
Undue delay in the issuance of the Referral by the SEADO shall be dealt with accordingly as
an administrative offense.
SECTION 2. Norm and Conduct. — The SEADOs must at all times conduct themselves with
utmost integrity and courtesy, and abide by the following principles:
a) Use of mandatory conciliation-mediation;
b) Speedy, impartial, inexpensive and accessible settlement services;
c) Strict confidentiality of proceedings and all incidents thereto; and
d) Punctuality and proper office decorum.
RULE VII
Miscellaneous Provisions
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SECTION 1. Regional Coordinating Council (RCC). — The RCC, with the Regional Tripartite institutionalized under Republic Act No. 10395, shall serve as the oversight committee to
Efficiency and Integrity Board (RTEIB), shall act as the regional oversight committee to verify, monitor compliance with this IRR.
monitor and assess the following:
a) Establishment of the SEAD; SECRETARY / REGIONAL DIRECTOR
b) Performance and functions of the SEADO;
c) Implementation of SEnA at the regional level with specific targets in terms of improvement CASES ASSIGNED
of the regional performance; 1. People’s Broadcasting v. Secretary, May 8, 2009 and March 6, 2012
d) Coordination among the RCC members to ensure the implementation of the SEnA; and 2. Republic of the Philippines v. Namboku Peak, July 18, 2014
3. South Cotabato Communications Corporation v. Hon. Sto. Tomas, June 15, 2016
e) Submission of the performance monitoring report of the RCC members.
BUREAU OF LABOR RELATIONS
SECTION 2. Duties and Responsibilities of the Regional Director. — The Regional Director, CASES ASSIGNED
as Head of the RCC, shall ensure the effective implementation of the SEnA in the region and
shall: 1. Diokno v. Cacdac, July 4, 2007
a) Regularly convene the RCC on mandatory conciliation-mediation services matters with the
participation of the tripartite partners; LABOR ARBITER
b) Identify the training needs for SEADOs; and
CASES ASSIGNED
c) Submit a performance monitoring report of the RCC members. 1. Jaguar Security v. Sales, April 22, 2008
2. Pioneer Concrete Philippines v. Todaro, June 8, 2007
SECTION 3. Reporting and Monitoring. — The SEADOs shall report their monthly 3. Tegimenta Chemical Phils. v. Buensalida, June 17, 2008
accomplishments using the prescribed form and submit the same on or before the 5th day of 4. Milan v. NLRC, February 4, 2015
the following month to the Head of Office through the SEnA focal person. Partial settlement 5. Indophil v. Adviento, August 4, 2014
shall be included in the monthly accomplishment report but shall be considered settled only 6. Am-Phil Food Concepts v. Padilla, October 1, 2014
7. Pentagon Steel Corp. v. CA, June 26, 2009
upon payment of the last installment.
8. Supra Multi-Services v. Tambunting, August 3, 2016
9. Malayan Insurance Company v. Alibudbud, April 20, 2016
The Head of Office shall submit the monthly consolidated SEnA report to the National 10. Philippine Airlines, Inc. v. Airline Pilots Association of the Philippines, February 26, 2018
Conciliation and Mediation Board as the Secretariat, on or before the 10th day of the following
month. VOLUNTARY ARBITRATION

CASES ASSIGNED
The Secretariat shall submit a consolidated DOLE-wide SEnA Accomplishment Report to the
1. Negros Metal Corp. v. Lamayo, August 25, 2010
Secretary of Labor and Employment, on or before the 15th day of the following month. 2. Albert Teng Fish Trading v. Pahagac, November 17, 2010
Every DOLE office or agency shall have separate records and monitoring systems in 3. Manila Pavillion v. Delada, January 25, 2012
accordance with this IRR. 4. Honda Cars v. Honda Cars Technical Specialists and Supervisors, November 19, 2014
5. PHILEC v. CA, December 10, 2014
SECTION 4. SEnA National Training Team. — The Human Resource Development Services 6. Baronda v. CA, October 14, 2015
(HRDS) and the National Conciliation and Mediation Board (NCMB), as National and 7. Coca-cola Femsa Philippines v. Bacolod Sales Force Union, September 21, 2016
8. Guagua National Colleges v. Court of Appeals, August 28, 2018
Regional Training Teams, shall ensure that the training requirements for conciliation-
mediation are delivered. The HRDS shall be the lead office on training and shall submit a NLRC; DECISION, FINALITY; RULE 65 PETITION
coordinative training plan for conciliation-mediation to the Undersecretary for Labor Relations
every year-end and planning activity of the DOLE. CASES ASSIGNED
1. Jordan v. Grandeur Security, June 18, 2014
SECTION 5. Suppletory Application of DOLE NCMB Rules and Regulations on Conciliation- 2. Sarona v. NLRC, January 18, 2012
Mediation. — In the absence of any applicable provision in this IRR, and in order to carry out 3. Metro Transit Organization v. PIGLAS NFWU-KMU, April 14, 2008
4. PHILTRANCO v. PWU-AGLO, February 26, 2014
its objectives, the pertinent provisions of the DOLE NCMB rules on conciliation-mediation
5. Gabriel v. Petron Corporation, April 11, 2018
may, in the interest of expeditious settlement of disputes, and whenever practicable and
convenient, be applied by analogy or in a suppletory character and effect. APPEAL

SECTION 6. Oversight Function of the TIPC. — The National Tripartite Industrial Peace CASES ASSIGNED
Council (NTIPC) as created under Executive Order No. 49, Series of 1998 and 1. Prince Transport v. Garcia, January 12, 2011
2. Unilever v. Rivera, June 3, 2013
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APPEAL BOND

CASES ASSIGNED
1. McBurnie v. Ganzon, EGI-Managers, Inc., October 17, 2013
2. Sara Lee v. Macatlang, June 4, 2014 and January 14, 2015
3. Balite v. SS Ventures, Feb. 2015
4. Hacienda Valentin-Balabag v. Secretary, February 11, 2008

EXECUTION; UPDATING OF AWARD

CASES ASSIGNED
1. Nacar v. Gallery Frames, August 13, 2013
2. University of Pangasinan v. Fernandez, November 12, 2014
3. Metroguards Security v. Hilongo, March 9, 2015
4. CICM Mission Seminaries v. Perez, January 18, 2017

MISCELLANEOUS

CASES ASSIGNED
1. Masmud v. NLRC, February 13, 2009 (attorney’s fees)
2. Arriola v. Pilipino Star Ngayon, August 13, 2014 (prescription)
3. Montero v. Times Transport, March 16, 2015 (prescription)
4. Phil. Carpet Manufacturing Corp. v. Tagyamon, December 11, 2013 (quitclaim)
5. Am-Phil Food Concepts v. Padilla, October 1, 2014 (quitclaim)
6. Buenaflor Car Services v. David, November 7, 2016 (technical rules)

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