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EMPLOYMENT Contract Interpretation
EMPLOYMENT Contract Interpretation
Art. 1702, Civil Code. In case of doubt, all labor legislation and all labor contracts shall be
construed in favor of the safety and decent living for the laborer.
A CBA, as a labor contract within the contemplation of Art. 1700 of the Civil Code of the
Philippines which governs the relations between labor and capital, [it] is not merely contractual
in nature but impressed with public interest, thus, it must yield to the common good.
The courts must place a practical and realistic construction upon it, giving due consideration to
the context in which it is negotiated, and purpose which it is intended to serve. [Davao
Integrated Port Stevedoring Services v. Abarquez, G.R. No. 102132 (1993)]
General Rule: [W]here the CBA is clear and unambiguous, it becomes the law between the
parties and compliance therewith is mandated by the express policy of the law. [Zuellig Pharma
Corporation v. Alice Sibal, G.R. No.173587 (2013)]
They shall establish a machinery for the adjustment and resolution of grievances
1. Arising from the interpretation or
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.
Arbitrators, or
2. 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
Note: See also v. Bargainable Issues under “a. Duty to bargain collectively”
How: pursuant to the selection procedure agreed upon in the Collective Bargaining Agreement
Effect: designated Voluntary Arbitrator or panel of Voluntary Arbitrators 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.