ARTICLE 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; To promote free trade unionism as an instrument for the enhancement of democracy and the promotion of social justice and development; To foster the free and voluntary organization of a strong and united labor movement; To promote the enlightenment of workers concerning their rights and obligations as union members and as employees; To provide an adequate administrative machinery for the expeditious settlement of labor or industrial disputes; To ensure a stable but dynamic and just industrial peace; and To ensure the participation of workers in decision and policy-making processes affecting their rights, duties and welfare.

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) (i) (j)

(b)

Legitimate labor organization means any labor organization duly registered with the Department of Labor and Employment, and includes any branch or local thereof. 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. Bargaining representative means a legitimate labor organization whether or not employed by the employer.

(c) (d)

(k) (l)

(e) (f) (g)

Unfair labor practice means any unfair labor practice as expressly defined by the Code. (e.g. union busting) 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)

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, hours of work or other terms and conditions of employment, except as otherwise provided under this Code. (As amended by Section 3, Republic Act No. 6715, March 21, 1989). The government wants to provide administrative machineries to settle labor disputes and avoids government intervention as much as possible ARTICLE 212. Definitions.

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)

(a)

Commission means the National Labor Relations Commission or any of its divisions, as the case may be, as provided under this Code.

(b)

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.

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.

(o) (p) (q)

Strike means any temporary stoppage of work by the concerted action of employees as a result of an industrial or labor dispute. Lockout means any temporary refusal of an employer to furnish work as a result of an industrial or labor dispute. 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.

(c) (d)

Board means the National Conciliation and Mediation Board established under Executive Order No. 126. 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.

(r)

(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

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. (As amended by Section 4, Republic Act No. 6715, March 21, 1989).

workers under the same terms and conditions prevailing before the strike or lockout

9.

Remedies in Labor Disputes:

1. 2.

Grievance procedure in house adjustment of complaint, problem or dispute following the steps prescribed in CBA or company policy Conciliation a process where a disinterested third party meets with management and labor, at their request or otherwise, during a labor dispute or in a collective bargaining conferences and by cooling tempers, aids in reaching an agreement

Injunction is an extraordinary remedy which is not favored in labor law. A writ of injunction is issued to stop or restrain an actual or threatened commission of prohibited or unlawful acts or to require the performance of an act, which if not retrained or performed therewith, may cause grave or irreparable damage to any party or render ineffectual any decision in favor of such party.

10. 11.

Judicial action complaint filed with regular courts in cases falling under its jurisdiction Appeal the process by which an order, decision or award is elevated to a higher authority on specified grounds so that the order, decision or award may be modified or set aside and a new one issued. Before an appeal is allowed, administrative remedies was be first availed of the aggrieved party (motion for reconsideration)

3.

mediation a third party studies each side of the dispute then makes proposal for the disputants to consider. But a mediator, like a conciliator, cannot render an award or render a decision; they do not adjudicate. Conciliation and mediation, usually combined, are done primarily by Conciliators-Mediators of the National Conciliation and Mediation Board

12.

Review by Court no law allows appeal from a decision of the Secretary of Labor or of the NLRC, or of a Voluntary Arbitrator. Appeal is in the form of certiorari under Rule 65

13.

4.

Enforcement or compliance order - an act of the Secretary of Labor in the exercise of his visitorial or administrative authority to enforce labor laws, policies, plans or programs or rules and regulations (Art. 128)

Compromise agreement in any stage of any of these settlement processes, the labor dispute may be resolved by the parties through a compromise agreement, provided that the agreement is freely entered into and is not contrary to law, moral or public policy. It is subject to approval of the authority before whom the case is pending. Article 213-214

5. 6.

certification of bargaining representatives determination of which contending unions shall represent employees in collective bargaining. Arbitration the submission of a dispute to an impartial person for determination on the basis of evidence and arguments of the parties. Arbitration is adjudication and the arbitrators decision or award is enforceable upon the disputants. A dispute pending arbitration cannot be a ground for strike or lockout to do so will be a sabotage of the arbitration process.

History of NLRC
Court of Industrial Relations (CIR)

NLRC (P.D. 21 10/14/72) Making NLRC as an integral part of DOLE

Voluntary if submission of the dispute is by agreement of the parties and the arbitrators or panel of arbitrators is chosen by them. Award is final and unappealable except through certiorari

Compulsory if submission of the dispute is by directive of law. Unlike a conciliator or a mediator, an arbitrator is a judge; he makes decisions and awards that the parties must accept. Decision is appealable to NLRC then to the CA thru special civil action of certiorari.

7.

NLRC (RA 6715 3/21/89) NLRC as attached to the DOLE for program coordination only Composed of 15 members including the Chairman; 5 divisions Division 1 3 NCR Division 4 Visayas (Cebu) Division 5 Mindanao (CDO) Each Division is composed of 3 members and the presence of at least 2 members shall constitute a quorum. The concurrence of 2 commissioners of a Division shall be necessary for the pronouncement of a judgment or resolution

Assumption of jurisdiction an authority vested by law to the Secretary of Labor of the President to decide a dispute causing or likely to cause a strike or lockout in an industry indispensable to national interest

8.

Certification of NLRC an action of the Secretary of Labor empowering the NLRC to compulsorily arbitrate a dispute causing or likely to cause a strike or lockout in an industry indispensable to the national interest. Automatically enjoins an ongoing or impending strike/lockout A return-to-work order is issued to strikers At the same time the employer is ordered to immediately resume operations and readmit all

NLRC (RA 9347 7/27/06) Composed of 24 members including the Chairman; 8 divisions 8 coming from the labor sector, 8 from management & 8 from public sector 1. sits en banc 2. division Commission sits en banc 1. purposes of promulgating rules and regulations governing the hearing and disposition of cases before any of its divisions and regional branches

2. formulating policies affecting its administration and operations Article 215 Qualifications: 1. Commissioner 15 years practice of law 5 years experience in the field of labor management relations Preferably residents of the region where they shall hold office 2. Labor Arbiter 10 years practice of law 3 years experience in the field of labor management relations

Money claims arising from CBA should not be filed with the Labor Arbiter but rather with the Voluntary Arbitrator. Corporate officer is the president, secretary or treasurer of the corporation or any other officer whose office is created by the board of directors as authorized or required by the corporate charter or by-laws. Regular court (RTC) has jurisdiction. Employee usually occupies no office and generally is employed not by action of the directors or stockholders but by the managing officer of the corporation who also determines the compensation to be paid to such employee. Labor Arbiter has jurisdiction. Article 218 Powers of the Commission 1. Rule-making power Promulgate rules and regulations governing the hearing and disposition of cases before it and its regional branches; Pertaining to its internal functions; and Those that may be necessary to carry out the purposed of this Code 2. Power to issue compulsory processes Administer oaths; Summon parties; Issue subpoenas and testificandum and duces tecum 3. power to investigate and hear disputes within its jurisdiction conduct investigations for the determination of a question, matter or controversy within its jurisdiction; and proceed to hear and determine the disputes in the manner laid down under Art. 218 (c) 4. contempt power Contempt a disobedience to the Court by setting up an opposition to its authority, justice and dignity Fines: direct P500 &/or 5 days if Commissioner P100 &/or 1 day before a Labor Arbiter

Note: Commissioners need not be confirmed by the Commission on Appointments. In the case of Calderon vs. Carale, et. al., the court declared that the 3rd paragraph of Article 215 requiring confirmation by the Commission on Appointments is unconstitutional. For it has no constitutional basis since the constitution specifically enumerates who are supposed to be confirmed by the Commission on Appointments and NLRC commissioners are not one of those enumerated. Article 217 - Jurisdiction of Labor Arbiters and the Commission Jurisdiction/Venue 1. Labor Arbiter, NLRC Unfair labor practice (union busting) Termination disputes; If accompanied with a claim for reinstatements, those case that workers may file involving wages, rates of pay, hours of works and other terms and conditions of employment;

2.

Claims for actual, moral and exemplary and other forms of damages arising from the employer-employee relations; Cases arising from any violations of Article 264 of this Code including questions involving the legality of strikes and lockouts; Except claims for Employees Compensation, Social Security, Medicare and maternity benefits, all claims, arising from employer-employee relations, including those of persons in domestic or household service, involving an amount exceeding P5,000 regardless of whether accompanied with a claim for reinstatement. Money claims arising out of employer-employee relationship by virtue of any contract or law involving OFWs and seamen, including claims for actual, moral, exemplary and other forms of damages and employment terminations of OFWs. Regional Directors, DOLE

5.
6.

Power to issue TRO and Injunctions TRO is valid only for 20 days, including Saturdays, Sundays and Holidays power to conduct ocular inspection on any establishment, building, ship or vessel, place or premises, including any work, material, implement, machinery, appliance or nay object therein; and ask any employee, laborer, or any persons, as the case may be, for any information or date concerning any matter or question relative to the object of the investigation Appellate power Exclusive appellate jurisdiction over all cases decided by the labor arbiters and the DOLE regional director or hearing officers.

7.

Cases for appeal where NLRC has no jurisdiction:

1.

3.

Art. 128 visitorial and enforcement power as amended by RA 7730 6/2/94 involving assessment regardless of amount arising from inspection Art. 129 money claims not exceeding P5,000 Voluntary Arbitrator Cases arising from the interpretation of CBAs Those arising from the interpretation or enforcement of company personnel policies

those decided by a voluntary arbitrator; 2. secretary of labor; 3. the bureau of labor relations directors on cases appealed from the DOLE regional officers Article 221 Rules of evidence prevailing in courts of law or equity shall not be controlling:

1. it is the spirit and intention of this Code that the reasonable means to ascertain the facts in each case speedily and objectively and without regard to technicalities of law or procedure and in the interest of due process. 2. Labor Arbiter shall exert all efforts towards the amicable settlement of a labor dispute within his jurisdiction on or before the first hearing. Article 222 Only lawyers may appear before the commission or any labor arbiter except: 1. if they represent themselves; or 2. if they represent their organization or members thereof, which is a party thereto 3. he represents a member or members of a legitimate labor organization that is existing within the employers establishment, who are parties to the case 4. he is a duly-accredited member of any legal aid office recognized by the DOJ or IBP 5. he is the owner or president of a corporation or establishment which is a party to the case Article 223 Appeal Grounds for appeal 1. if there is prima facie evidence of abuse of discretion on the part of the Labor Arbiter; 2. if the decision, order or award was secured through fraud or coercion or graft and corruption; 3. if made purely on questions of law; and

posting of a cash or security bond certificate of non-forum shopping proof of service upon the other parties

Bond should be equivalent to the monetary award exclusive of moral and exemplary damages as well as attorney's fees. (Fernandez vs. NLRC) Due process is observed by mere submission of position papers of both parties (Fernandez vs. NLRC) No motion to reduce bond shall be entertained except on meritorious grounds, and only upon the posting of a bond in a reasonable amount in relation to the monetary award. Property bond acceptable this is an exception to Article 223 (2). In the case of Fernandez, et. al., vs. NLRC the court ruled that although the posting of a bond is jurisdictional, the requirement should be given liberal interpretation. It is important to decide labor cases on the basis of their substantive merit and not on strict technical rules. Relaxing the 10-day period:

1.

where there is FAME; 2. where on equitable grounds, a belated appeal was allowed as the questioned decision was served directly upon petitioner instead of her counsel of record who at the time was already dead; 3. where the counsel relied on the footnote of the notice of the decision of the labor arbiter that the aggrieved party may appeal; within 1o working days

4.

if serious errors in the findings of facts are raised which would cause grave or irreparable damage or injury to the appellant. Note: The perfection of an appeal shall stay the execution of the decision of the Labor Arbiter on appeal. However, reinstatement orders of a dismissed or separated employee is so far as reinstatement is concerned, shall immediately be executory, even pending appeal. The posting of the bond by the employer shall not stay the execution for reinstatement. 10 days from receipt of decision or order, the losing party may file an appeal to the NLRC. If not appealed on time, the Labor Arbiters decision becomes final and cannot be amended. where to file an appeal at the Regional Arbitration Branch or Regional Office where the case was heard and decided Requisites for perfection of Appeal

4.

in order to prevent miscarriage of justice or unjust enrichment such as the tardy appeal is from a decision granting separation pay which was already granted in an earlier final decision; 5. where there are special circumstances in the case combined with its legal merits or the amount and the issue involved. Appeal to the Court of Appeal

1.

motion for reconsideration at the NLRC 2. file with the CA within 60 days 3. Rule 65 grave abuse of discretion or lack of jurisdiction amounting to abuse of discretion 4. payment of docket fees General Rule: negligence of counsel binds the client. Hence, if counsel commits a mistake in the course of litigation, thereby resulting in his losing the case, his client must perforce suffer the consequences of the mistake. The reason for the rule is to avoid the possibility that every losing party would raise the issue of negligence of his or her counsel to escape an adverse decision of the court, to the detriment of our justice system, as no party would ever accept a losing verdict. This general rule, however, pertains only to simple negligence of the lawyer. Exception: Where the negligence of counsel is one that is so gross, palpable, pervasive, reckless and inexcusable, then it does not bind the client since, in such a case, the client is effectively deprived of his or her day in court. (Erwin Reyes vs. NLRC, Coca-cola Bottlers) Higher interest of justice and equity demand that petitioner should not be denied his day in court and made him to suffer for his counsels indiscretions.

1.

filed within the reglementary period of 10 calendar days from date of receipt of the decision; Note: Not only mandatory but also jurisdictional. If deadline falls on a Saturday, Sunday or Holiday, the last day to perfect the appeal shall be the first day following such Saturday, Sunday or Holiday. 2. in the form of a memorandum of appeal which shall state the grounds relied upon and the arguments in support thereof, the relief prayed for and with a statement of the date the appellant received the appealed decision, resolution or order; 3. it must be verified by the appellant himself 4. should be in 3 sets 5. accompanied by: proof of payment of the required appeal fee or docket fee

Certification against non-forum shopping must be made by the petitioner himself and not by the counsel since it is the petitioner who is in the best position to know whether he has previously commenced any similar action involving the same issues in any other tribunal or agency. (Santos vs. CA, Pepsi Cola Products) Exception: Petitioner is a juridical person certification against non-forum shopping may be signed by any authorized individuals (e.g. corporate lawyer, President) who has knowledge of the facts required to be disclosed. (BA Savings Bank vs. Sia) Article 224 Writ of execution shall be issued within 5 years from the date it becomes final and executory. It is an order to carry out, to implement, a final judgment.

specific occupational or geographical grouping within such employer unit. 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. It is ordered by the Department. Consent or run-off election is voluntarily agreed upon by the parties with or without the intervention by the Department. 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. 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. Independent Union refers to a labor organization operating at the enterprise level that acquired legal personality through independent registration.

Article 226 Bureau of Labor Relations Jurisdiction and Functions of the Bureau of Labor Relations: 1. Union matters

CBA refers to the contract between legitimate labor union and the employer concerning wages, hours of work and all other terms and conditions of employment in a bargaining unit.

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.

2. 3.

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 or disagreement over any provision of the unions constitution and by-laws. Collective bargaining registry Labor education

Rule II Section 1 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. Article 227 Compromise Agreements Any compromise agreements involving labor standard laws, voluntarily agreed upon by the parties shall be final and binding unless there is facie evidence that the settlement was obtained through fraud, misrepresentation or coercion. Compromise should be duly authorized. Attorneys and other representatives of parties shall have authority to bind their clients in all matters of procedure, but they cannot, without a special power of attorney or express consent, enter into a compromise agreement with the opposing party in full or partial discharge of a clients claim. Magbanua vs. Uy a compromise agreement covering a case pending trial, or appeal or with final judgment is allowed and valid, except for vices of consent or forgery. Options when compromise agreement is violated: 1. enforce the compromise by a writ of execution 2. regard it as rescinded and so insist upon his original demand

Department Order No. 40-03 (March 15, 2003) Specific Objectives: 1. to simplify the formation and registration f unions, especially chartered locals 2. to simplify and expedite the holding of certification election 3. to promote responsible unionism, particularly in administration of union funds 4. to authorize union merger, consolidation and change of name 5. to authorize deregistration of collective bargaining agreements Affiliate refers to an independent union affiliated with a federation, national union or chartered local which was subsequently granted independent registration but did not disaffiliate from its federation, reported to the Regional Office and the Bureau 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