PROCEDURE AND JURISDICTION

Preliminary Considerations on Procedure and Jurisdiction

1. There must exist an Employer-Employee relationship between the parties.

2. The Cause of Action must arise from the Employer-Employee relationship.

3. Labor disputes are not subject to Barangay Conciliation.

4. Reasonable Causal Connection Rule - General Rule: if there is a reasonable connection between the claim asserted and the employer-employee relations then the case is cognizable within the labor courts. In the absence of such connection the jurisdiction lies with the regular courts.

Exception: In cases filed by OFWs, the Labor Arbiters may exercise jurisdiction absent the employment relationship

Labor Arbiter (LA)

Labor Arbiter - an official of the arbitration branch of the National Labor Relations Commission who hears and decides cases falling under his original and exclusive jurisdiction

Jurisdiction

Nature of LA’s Jurisdiction

General Rule: Original and Exclusive (Art 217, Labor Code)

Exceptions:

Assumed cases by the SoLE (Art 263(g), Labor Code)

Certified labor disputes (Art 263(g), Labor Code)

Cases arising from CBA Cases submitted for voluntary

arbitration (Art 261, 261 Labor Code)

Cases falling under the jurisdiction of the LA:

1. Art 217 Labor Code Unfair Labor Practice cases Termination disputes (Illegal

dismissal cases) Money claims exceeding P5,000 Claims for moral, exemplary, and

other forms of damages arising from ER-EE relationship

Cases involving the legality of strikes and lockouts

2. Art 124 (b) Labor Code, as amended by RA 6727 Legislated wage increases and

wage distortion in unorganized establishments not voluntarily settled by the parties

Legislated wage increases and wage distortion in organized establishments lie with the Voluntary Arbitrators

3. Art 128 (b) Labor Code, as amended by RA 7730

4. Art 227 Labor Code Enforcement of compromise

agreements when there is non-compliance by any of the parties

5. Art 262-A, Labor Code Issuance of Writ of Execution to

enforce the decisions of the Voluntary Arbitrators or panel of

Voluntary Arbitrators (in case of their absence or incapacity)

6. Sec 10 RA 8042, as amended by RA 10022 Money claims of OFWs arising out

of ER-EE relationship or by virtue of any law or contract including: Death and disability benefits Actual, moral, exemplary, and

other forms of damages

7. Other cases as may be provided by law Employees in government owned

and/or controlled corporations without original charters

Domestic workers or kasambahays Employees of cooperatives Counter-claims of employers

against employees

Cases not falling under the jurisdiction of LAs:

1. Claims for damages arising from breach of a non-compete clause and other post-employment prohibitions

2. Claims for payment of cash advances, car, appliance, and other loans of EEs

3. Dismissal of corporate officers and their monetary claims

“The Matling Doctrine” (Matling Industrial vs Coros, GR No 157802, October 13, 2010)

The dismissal of regular EEs fall under the jurisdiction of LAs; while that of corporate officers fall under regular courts

Who are corporate officers? those expressly mentioned in

the Corporation Code and By Laws; all other EEs not mentioned therein are deemed EEs

elected or appointed by the directors or stockholders

The Board of Directors can no longer create corporate officers

The status of an EE as director and stockholder does not automatically convert his dismissal into an intra-corporate dispute

4. Cases involving entities immune from suit

5. Cases falling under the doctrine of forum non conveniens

6. Constitutionality of CBA provisions

Labor Arbiter vs. DOLE Regional Director

Labor Arbiter

DOLE Regional Director

Quasi-judicial Powers

The Labor Arbiter/s exercise quasi-judicial powers on cases enumerated under Art 217, Labor Code. No jurisdiction over small money claims falling under Art 129, Labor Code.

The DOLE Regional Director exercises quasi-judicial powers when it:

1. Issues Compromise Agreements voluntarily agreed upon by the parties with the assistance of the BLR or the DOLE Regional Office.

Provided the issues concerned do not include a claim for reinstatement; and the aggregate money claim of each employee or househelper does not exceed P5000.

(Art. 227, Labor Code)

2. Issues a Writ of Execution.

Regulatory Powers

Labor Arbiter has no regulatory power.

DOLE Regional Directors have 3 regulatory powers:

1. Enforcement Powers

The power to order and administer, compliance with the labor standards of this Code and other labor legislation when there is EE-ER relationship

Labor Arbiter

DOLE Regional Director

between the parties. (Sec. 2, Book III, Rule X, IRR)

2. Order stoppage of work or suspension of operation- of any unit of an

establishment when noncompliance with the law, safety order or IRR poses grave and imminent danger to the health and safety of workers in the workplace. (Sec. 3, Book III, Rule X, IRR)

3.Compromise Agreements (Art. 227)

The NLRC or any court shall not assume jurisdiction over issues involved therein except in case of non-compliance thereof or if there is prima facie evidence that the settlement was obtained through fraud, misrepresentation, or coercion.

Reinstatement pending appeal

“Pioneer Texturizing Doctrine” (Pioneer Texturizing Corporation vs NLRC, G.R. No. 118651. October 16, 1997)

General Rule: An order of reinstatement issued by the LA under Art 223 of the Labor Code is self executory even pending appeal.

No need to secure a Writ of Execution

Applicable only to the reinstatement order issued by the LA. This means if the reinstatement order is issued by the NLRC on appeal, CA, or the SC there is a need to secure a Writ of Execution from the LA of origin to enforce the reinstatement of an illegally dismissed EE.

Exceptions (2011 NLRC Rules of Procedure): ER disobeys the prescribed

directive to submit a report of compliance within 10 calendar days from receipt of the decision

ER refuses to reinstate the EE2 Options of ER when implementing the

reinstatement order:

1. Actual Reinstatement – EE to be reinstated to the position which he occupied prior to his illegal dismissal under the same terms and conditions prior to his dismissal or separation, if the position is no longer available the EE will be reinstated to a substantially equivalent position

2. Payroll Reinstatement – EE would only be reinstated to the payroll of the company without need to report back to the place of work

II. Requirements to perfect appeal to NLRC

Diagram of Heirarchy of Labor Courts in case of decisions rendered by the Labor Arbiter

Grounds for Appeal to the Commission

1. There is prima facie evidence of abuse of discretion on the part of the LA

2. If the decision was secured through fraud or coercion

3. If made purely on questions of law4. If serious errors in the findings of

fact are raised which, if not corrected, would cause grave or irreparable damage or injury to the appellant

5. If serious errors in the findings of fact are raised which, if not corrected, would cause grave or irreparable damage or injury to the appellant

Requisites for perfection of appeal to the NLRC

1. Observance of the reglementary period

2. Payment of appeal and legal research fee (Proof of payment needed)

3. Filing of a memorandum of appeal4. Proof of service to the other party5. Posting of cash, property, or surety

bond

General Rule: the perfection of an appeal shall stay the execution of the decision of the LA except execution of the reinstatement order

The perfection of appeal within the period and in the manner prescribed by law is jurisdictional and non-compliance is fatal and has the effect of rendering the judgment final and executory.

PRINCIPLES

Reglementary Period

There are 2 kinds of Reglementary Period as a general rule:

1. 10 calendar days- applied to appeals from decisions of the LAs under Art 223 Labor Code

2. 5 calendar days- applied to appeals from decisions of the DOLE Regional Director under Art 129 Labor Code

Exceptions:

1. The 10th or 5th day falls on a Saturday, Sunday, or holiday in which case the appeal may be filed the next working day

2. Notice of decision erroneously states working days and not calendar days

3. There is a need to disregard technical rules under Art 221

4. NLRC exercises its power to correct, amend, or waive any error, defect, or irregularity whether in substance or in form in the exercise of its appellate jurisdiction as per Art 218(c) Labor Code

5. There are compelling reasons that justify the allowance of the appeal despite its late filing such as when it is granted in the interest of substantial justice

For purposes of the appeal, the reglementary period shall be counted from receipt of the

assailed decision, resolutions, or orders by the counsel or representative of record

Miscomputation of the reglementary period will not forestall the finality of the judgment.

Posting of Bond

General rule: posting of bond before an appeal may be perfected is required only when the decision involves a monetary award (ie awards for unpaid wages, backwages, separation pay, 13th month, etc.)

Amount of bond: equivalent in amount to the monetary award, excluding the amount of

Damages (moral and exemplary) Attorney’s fees

3 kinds of bonds

1. Money2. Property 3. Surety

The bond should be posted within the reglementary period, otherwise the appeal will not be perfected and the judgment becomes final and executor

In case the ER failed to post a bond to perfect its appeal, the remedy of the EE is to file a motion to dismiss the appeal

Surety bonds must be issued by a reputable bonding company accredited by the NLRC or the Supreme Court

A bank guarantee or bank certification is not sufficient compliance with the bond requirement

Government is exempt from posting a bond

GOCCs are not exempt from posting a bond

Bond is not required in order for the NLRC to entertain a motion for reconsideration

When is non-posting of bond justified?

There is no monetary award The monetary award is not specified in

the decision

Motion to Reduce Bond

It may be granted only in meritorious cases such as when the monetary claims have already prescribed; the filing of a motion to reduce bond does not stop the running of the period within which to perfect appeal, the motion to reduce bond must company with the requisite that:

1. It should be filed within the reglementary period;

2. It should be based on meritorious grounds; and

3. A reason amount of bond in relation to the monetary award should be posted together with said motion.

4. Proof of service.

The exercise of the authority to reduce bond is not a matter of right on the part of the movant but lies within the sound discretion of the NLRC upon showing of meritorious grounds (Ong vs. et al. GR No. 152494, February 22, 2004).

National Labor Relations Commission (NLRC)

National Labor Relations Commission- an administrative quasi-judicial body. It is an agency attached to the DOLE solely for program and policy coordination only. Composition of the NLRC

1 Chairman 23 members called Commissioners

8 members chosen from the nominees of the workers sector

Another 8 chosen from the employers’ sector

7 remaining members will come from the public sector (preferably from among the incumbent Labor Arbiters)

The 8 Divisions of the NLRC

The NLRC is divided into 8 divisions Each division is composed of 3

members Each division shall have 1

representative each from the employers’ sector, employees’ sector, and public sector

The representative from the public sector will act as the Presiding Commissioner

Exercises exclusive appellate jurisdiction over cases within their territorial jurisdiction

Commission En Banc

The NLRC does not sit en banc to hear and decide cases.

Commission En Banc has no adjudicatory power

Commission En Banc only meets for the following purposes:

1. Promulgate rules and regulations governing the hearing and disposition of cases before any of its divisions and regional branches

2. Formulate policies affecting its administration and operations.

Jurisdiction

2 Kinds of jurisdiction exercised by the NLRC

1. Exclusive original jurisdiction2. Exclusive appellate jurisdiction

The NLRC exercises exclusive and original jurisdiction on the following cases:

1. Petition for injuction in ordinary labor disputes

2. Petition for injuction on strikes and lockouts under Art 246, Labor Code

3. Certified cases which refer to labor disputes causing or likely to cause a strike or lockout in an industry indispensable to the national interest, certified to it by SoLE for compulsory arbitration (Art 263 (g), Labor Code)

4. Petition to annul or nullify the order/resolution of the LA

Cases where the NLRC exercises exclusive appellate jurisdiction:

1. All cases decided by the LA2. Cases decided by the DOLE Regional

Directors or hearing officers involving small money claims under Art 129 Labor Code

3. Contempt cases decided by the LA

Effect of NLRC reversal on Labor Arbiter’s order of reinstatement

Garcia Doctrine (Garcia vs PAL, GR No. 164856, January 20, 2009)

The test to determine the liability of the ER (who did not reinstate the EE pending appeal) to pay the wages of the dismissed EE covering the period from the time he was ordered reinstated by the LA to the reversal of the LA’s decision is two-fold :

1. There must be actual delay or the fact that the order of reinstatement pending appeal was not executed prior to its reversal

2. Delay must not be due to the EE’s unjustified act or omission.

When is the reckoning period for computing the amount of accrued reinstatement wages?

From the time the ER received a copy of the LA’s decision declaring the EE’s termination illegal and ordering their reinstatement up to the date of the decision of the appellate tribunal overturning the prior decision of the LA.

PRINCIPLES

ER is not liable to pay reinstatement backwages if the NLRC ordered the reinstatement on appeal

EE under payroll reinstatement is entitled to: Reinstatement wages Other benefits

Award of additional backwages and other benefits from the time the LA ordered reinstatement until actual or payroll reinstatement is proper and valid.

Remedies

Extraordinary remedies are found under Rule XII of the 2011 NLRC Rules of Procedure. It is not granted under the Labor Code or other special laws.

Grounds for the exercise of extraordinary remedies:

1. There is prima facie evidence of abuse of discretion on the part of the LA

2. Serious errors in the findings of fact are raised which, if not corrected, would cause grave or irreparable damage or injury to the petitioner

3. A party has been prevented from taking an appeal due to fraud, accident, mistake, or excusable negligence (FAME)

4. Made purely on questions of law5. Order or resolution will cause injustice

if not rectified

PRINCIPLES

It is not equivalent nor substitute to an appeal

Remedies are applied against the orders or resolutions of Las , where the remedy of appeal is not available

Appeal is only available against the main decision of the case not orders or resolutions issued prior to the rendition of a decision (interlocutory orders) or those issued during the execution stage

Certified cases

Certified labor disputes- labor disputes causing or likely to cause a strike or lockout in an industry indispensable to the national interest certified to the NLRC by the SoLE for compulsory arbitration (Art 263(g) Labor Code)

Effects of certification:

1. The intended or impending S/L is automatically enjoined

2. All striking or locked out EEs shall immediately return to work and the ER shall immediately resume operations and readmit ALL workers under the same terms and conditions prevailing before the S/L

3. All cases between the parties shall be considered subsumed or absorbed by the certified case and shall be decided by the appropriate Division of the Commission

4. Parties of cases, relative or incident to the certified case, pending before the Regional Arbitrational branches and Voluntary Arbitrators shall inform the Division thereof

5. The Division having territorial jurisdiction over the principal office of the company shall acquire jurisdiction over the certified case whenever a certified labor dispute involves a business entity with several workplaces

Exception: certification order says otherwise

These effects are also applicable when the SoLE directly assumes jurisdiction and decides over a labor dispute affecting industries imbued with national interest

Bureau of Labor Relations-Med Arbiter

Med-Arbiter - an officer in the regional office of the BLR authorized to hear and

decide representation cases, intra-union and inter-union disputes, and other labor relations related dispute

PRINCIPLES

The Med-Arbiter has the power to issue temporary restraining orders and a writ of injuction in proper cases

The Med-Arbiter has contempt powers Factual findings of Med Arbiters are

accorded great respect The Med-Arbiter may issue a writ of

execution on a judgment within 5 years from the date it becomes final and executory.

Jurisdiction (original and appellate)

Cases falling under the original and exclusive jurisdiction of the Med Arbiter:

1. Inter-union disputes aka representation dispute- a dispute occurring or carried on between or among unions

2. Intra-union disputes aka internal union dispute- any conflict between and among union members

3. Related labor relations dispute- any conflict between a labor union and the ER or any individual, entity, or group that is not a labor union or workers’ association

4. Contempt cases

Both the Med-Arbiter and the DOLE Regional Director exercise original and exclusive jurisdiction over these cases

The BLR Director exercises appellate and original jurisdiction over some cases

Enumeration of Inter-union disputes:

1. Validity/invalidity of voluntary recognition, certification election, consent election, run-off election or re-run election

2. Other disputes or conflicts among labor organizations involving the rights to:

a. Self-organizationb. Union membershipc. Collective bargaining

Enumeration of Intra-union disputes:

1. Conduct or nullification of election of officers of unions and workers’ association

2. Audit of accounts examination of union or workers’ association

3. Deregistration of collective bargaining agreements

4. Validity/invalidity of union affiliation or disaffiliation

5. Validity/invalidity of acceptance/non-acceptance for union membership

6. Opposition to application for union or CBA registration

7. Violations or of disagreements over any provision of the Constitution and By Laws of a union or workers’ association

8. Disagreements over chartering or registration of labor organizations or the registration of collective bargaining agreements

9. Violations of the rights and conditions of membership in a union or workers’ association

10. Violations of the rights of legitimate labor organizations, except interpretation of CBAs

11. Validity/invalidity of impeachment/expulsion/suspension or any disciplinary action meted against any officer and member, including those arising from non-compliance with the reportorial requirement

12. Such other disputes or conflicts involving the rights to self-organization, union membership, and collective bargaining between and among members of a union or workers’ association

Related Labor Relations disputes not covered by Art 217:

1. Any conflict between:

a. Labor union (LU) and ER

b. LU and a group that is not a labor organization

c. LU and an individual who is not a member of such union

2. Cancellation of registration of unions and workers association filed by individuals other than its members, or group that is not a labor organization

3. A petition for interpleader involving labor relations

Original and exclusive jurisdiction of the DOLE Regional Directors

1. Petitions for cancellation of registration of independent unions, local chapters, and workers’ associations

2. Petitions for deregistration of CBAs3. Request for examination of books of

accounts of said labor organizations under Art 274 Labor Code

Original and exclusive jurisdiction of the BLR Director

1. Complaints and petitions involving the registration or cancellation of registration of federations, national unions, industry unions, trade union centers, and their local chapters

2. Request for examination of books and of accounts of said labor organizations under Art 274, Labor Code

3. Intra-union disputes4. Contempt cases

Appellate jurisdiction of the BLR Director

1. All decisions of the Med Arbiters ina. Intra-union disputesb. Other related labor relations

disputes Appellate jurisdiction over

inter-union disputes or certification election rendered by the Med Arbiter is lodged with the DOLE Secretray as per Art 259 Labor Code

2. All decision originating from the DOLE Regional Directors in the cases falling

under their original jurisdiction as enumerated above

Appeals from the decisions of the BLR Director Appeal to SoLE- Decisions rendered

by the BLR Director in the exercise of his original and exclusive jurisdiction

Requirements as to the filing of cases:

WHO FILES

1. Involving Entire Membershipa. The complaint must be signed by

at least 30% of the entire membership of the union; and

b. Exhaustion of administrative remedies.

2. Involving a Member Only – Only the affected member may file the complaint.

Redness must first sought within the union itself in accordance with its constitution and by-law EXCEPT under any of the following circumstances:

a. futility of intra-union remedies;b. improper expulsion procedure;c. undue delay in appeal as to

constitute substantial injustice;d. the action is for damages,e. lack of jurisdiction of the

investigating body;f. action of the administrative agency

is patently illegal, arbitrary, and oppressive;

g. issue is purely a question of law;h. where the administrative agency

had already prejudged the case;i. where the administrative agency

was practically given the opportunity to act on the case but it did not.

WHERE TO FILE

Regional Office that issued its certificate

If it involve labor unions with

of registration or certificate of creation of chartered local

independent registrations, chartered locals, work’s association its officers or members

Directly with the Bureau

Of it involves a Federation / National Union / Industry Union, its officers or members

Effects of filing / pendency of inter/intra-uniondispute and other labor relations dispute (Sec. 3 Rule XI Department Order 40-03)

The rights, relationships and obliga-tions of the parties’ litigants against each other and parties-in-interest prior to the institution of the petition shall continue to remain during the pen-dency of the petition and until the date of finality of the decision rendered therein. Thereafter, the rights, relation-ships and obligations of the parties’ lit-igants against each other and other decision so ordered.

The filing or pendency of any inter/in-tra-union dispute and other related la-bor relation dispute is not a prejudicial question to any petition for certifica-tion election and shall not be a ground for the dismissal of a petition for certi-fication election of suspension of pro-ceedings for certification election (Sec-tion 3, Rule XI, Book V).

Modes of appeal in intra/inter-union dispute (Rule XI DO 40-03)

A. Requisites1. Under oath;2. Consists of a memorandum of

appeal;3. Based on either of the following

grounds:a. grave abuse of discretion;b. Gross violation of the Rules;

4. With supporting arguments and evidence.

B. Period to file:Within 10 calendar days from receipt

of

Decision

C. To Whom Appealable1. Bureau of Labor Relation –if the

case originated from the Med Arbiter or Regional Director

2. Sec. of Labor –if the case originated from the Bureau

D. Where to FileRegional Office or to the BLR, where the complaint originated (record are transmitted to the BLR or the Secretary of Labor within 24 hours from receipt of the memorandum of appeal).

Remedy from the Decision of the BLR:

a. Hierarchy to follow in case denial of Application for Registration of Union is issued by the Regional Office

b. Hierarchy to follow in case denial of Application for Registration of Union is made by the BLR

c. Cancellation of Registration of a Union

If ordered by the regional office, appeals to the BLR

If done by the BLR, to the DOLE Secretary by ordinary appeal.

The decision of the BLR rendered in its appellate jurisdiction may not be appealed to the DOLE Secretary but may be elevated directly to the Court of Appeal by way of certiorari under Rule 65. (Abbott Laboratories Philippines Inc. vs. Abbott Laboratories Employees Union et al January 26, 2000)

National Conciliation and Mediation BoardNature of proceedings

NCMB is not a quasi-judicial agency. (Tabigue vs International Copre, GR No.183335, December 23, 2009)

Effect: NCMB’s rulings cannot be elevated to the Court of Appeals (CA)

Conciliation vs. Mediation

Conciliation MediationDefinition A process

whereby a third person usually called a conciliator intervenes in a dispute involving two or more conflicting parties for the purpose of reconciling their differences or persuading them into adjusting or settling their dispute. The conciliator does not

Same definition as conciliation, the only difference is that the 3rd

party is called a mediator.

Conciliation Mediationmake or render any decision on the issue.

Rule in the Philippines

No distinction. In the NCMB, the hearing officer is called Conciliator-Mediator.

Other jurisdictions

More formal. Conciliator is given more power and authority. He may actually make a binding opinion based on the facts and the law involved in the controversy. Nature of the decision may be temporary.

General rule: mediator is not empowered to impose his will on the parties.Facilitative Mediation- mediator doesn’t make or offer any opinionEvaluative Mediation- mediator offers an opinion which is not binding on the parties.

Preventive Mediation

Preventive Mediation Case- the potential or brewing labor dispute which is the subject of a formal or informal request for conciliation and mediation assistance sought by either or both parties in order to remedy, contain, or prevent its degeneration into a full blown dispute.

How to initiate preventive mediation:

1. Filing a notice or request of preventive mediation

2. Conversion of the notice of strike or lockout into a preventive mediation case

Cases when the NCMB has the authority to convert a notice of strike/lockout into a preventive mediation case:

1. Issues raised in the notice of strike/lockout are not strikeable

2. The party which filed the notice voluntarily asks for the conversion

3. Both parties to a labor dispute mutually agree to have it subjected to preventive mediation

Effect of conversion- notice is deemed dropped from the dockets as if no notice has been filed. Any strike/lockout subsequently staged after the said conversion is deemed illegal, since it doesn’t comply with the requirements of a valid strike/lockoutDOLE Regional Directors

Jurisdiction

Scope of original and exclusive jurisdiction:

1. Labor standards enforcement cases under Art 128 Labor Code

2. Small money claims arising from labor standards violations not exceeding P 5,000 and not accompanied with a claim for reinstatement under Art129

3. Occupational safety and health violations

4. Registration of unions and cancellation thereof

5. Cases filed against unions and other labor relations related cases

6. Complaints against private recruitment and placement agencies (PRPAs) for local employment

7. Cases submitted to them for voluntary arbitration in their capacity as Ex-Officio Voluntary Arbitrators (EVAs)

Scope of original jurisdiction:

1. Inspection of establishments to determine compliance with labor standards (Exerccise of Visitorial Powers)

2. Issuance of compliance orders and writs of execution (Exercise of Enforcement Powers)

PRINCIPLES

Visitorial Powers

Granted under Art 128 (a), Labor Code It gives the DOLE Regional Director :

Access to employer’s records and premises at any time of the day or night, whenever work is being undertaken therein

The right to copy from the said records and question any employee an investigate any fact, condition, or matter which may be necessary to determine the violations

Enforcement Power

Granted under Art 128 (b) Under this provision, the DOLE

Regional Director/s shall have the powers to : Issue compliance orders Issue writs of execution Order stoppage of work or

suspension of operations Require employers to keep and

maintain employment records

Small Money Claims Cases

Requisites before the DOLE Regional Directors may take cognizance over cases covered by Art 129:

Claim is presented by an employee or kasambahay

Claimant does not seek reinstatement Aggregate money claim does not

exceed P 5,000

In the absence of the 3 requisites the Labor Arbiters have original and exclusive jurisdiction over all claims arising from EE-ER relationships, except claims for employee’s compensation, social security, PhilHealth, and maternity benefits.

DOLE Secretary

Visitorial and Enforcement Powers

3 Powers of the SoLE and/or the Regional Directors under Art 128 Labor Code

1. Visitorial power

2. Enforcement power3. Appellate power or power of review

Who exercises these powers?

Visitorial and Enforcement powers are exercised by the DOLE Regional Directors

Appellate power only exercised by SoLE in respect to any decision, order, or award issued by the DOLE Regional Directors

DOLE Regional Directors, the SoLE ‘s duly authorized representatives, also have the original jurisdiction to exercise visitorial powers granted under Art 37, 128, and 274

Power to suspend effects of termination

Grounds in order for SoLE to suspend the effects of termination:

1. Termination may cause a serious labor dispute

2. Termination is in implementation of a mass lay-off

Purpose:

Bring the parties back to the status quo ante litem (their state of relationship prior to the termination)

So that the EEs would be able to litigate the issues of the validity or legality of their termination on more or less equal footing with the ER

SoLE’s power of assumption or certification

SoLE’s power to suspend effects of

terminationApplicable to all labor disputes based on whatever grounds, provided such disputes will cause or likely to cause strikes or lockouts in industries indispensable to the national interest

Involves only the issue of termination of employment which may cause a serious labor dispute or is in implementation of a mass layoff

Prior notice and hearing not required before SoLE may

Requires conduct of preliminary determination of the

exercise this power existence of prima facie evidence that the termination may cause a serious labor dispute or is in implementation of a mass lay-off

“Serious labor dispute” contemplated therein will cause of likely to cause a strike or lockout

“Serious labor dispute” may or may not involve a strike or lockout

May only be exercised in industries indispensable to the national interest

Can be applied to any industry

Automatic return to work of the strikers or locked out employees

Immediate reinstatement pending resolution of the termination case

Assumption of jurisdiction

SoLE is granted under Art 263 (g) Labor Code the extraordinary police power of assuming jurisdiction over a labor dispute which, in his own opinion, will cause or likely to cause a strike or lockout in an industry indispensable to the national interest aka “national interest cases.”

He is also granted the power to certify the labor dispute to the NLRC for compulsory arbitration.

Appellate jurisdiction

The SoLE exercises appellate jurisdiction on decisions rendered by the following offices:

1. DOLE Regional Director2. Med Arbiters3. Director of the Bureau of Labor

Relations (BLR)4. POEA

Cases not appealable to the SoLE:

1. Rendered by the LAs that are appealable to the NLRC

2. Rendered by the NLRC, since they can be elevated directly to the CA

3. Rendered by the BLR Director in the exercise of his appellate jurisdiction, it can be brought directly to the CA

4. Rendered by DOLE Regional Directors in the capacity as Ex-Officio Voluntary Arbitrators

5. Rendered by Voluntary Arbitrators (appealable directly to the CA)

Cases decided by DOLE Regional Directors which are appealable to SoLE

1. Labor standards enforcement cases under Art 128

2. Occupational safety and health violations

3. Complaints against private recruitment and placement agencies (PRPAs) for local employment

Cases decided by DOLE Regional Directors which are not appealable to SoLE

1. Decisions in small money claims cases arising from labor standards violations in the amount not exceeding P 5,000 and not accompanied with a claim for reinstatement under Art 129

2. Decisions in cases submitted to DOLE Regional Directors for voluntary arbitration in their capacity as Ex Officio Voluntary Arbitrators (EVAs)

Appeals from decisions of POEA rendered in the exercise of its original jurisdiction:

1. Recruitment violations and other related cases

Includes cases:

Administrative in character Involving or arising out of violation

of rules and regulations Refund of fees collected from

workers Violation of the conditions for the

issuance of license to recruit workers

2. Disciplinary action cases and other special cases

Voluntary Arbitration powers

Administrative Intervention for Dispute Avoidance (AIDA)

A new administrative procedure for the voluntary settlement of labor disputes introduced by DOLE Circular No 1 Series of 2006

Separate from the established dispute resolution modes of mediation, conciliation, and arbitration

An alternative to other voluntary modes of dispute resolution such as Voluntary submission of a dispute

to the Regional Director for mediation

Voluntary submission of a dispute to the NCMB for preventive mediation

Intervention of a regional or tripartite peace council

Any potential or ongoing dispute may be brought to the SoLE by either the certified collective bargaining agent or ER or both

Potential or on-going dispute which may be referred to the SoLE:o Live and active disputeo That which may lead to a strike

or lockout or a massive labor unrest

o Is not the subject of any complaint or notice of strike or lockout at the time a Request for Intervention is made

Voluntary Arbitration by SoLE

Referred to when intervention through AIDA fails, either or both parties may avail themselves of remedies provided under the Labor Code such as submitting the their dispute to the Office of the SoLE for voluntary arbitration

Issues taken for voluntary arbitration should be limited to the issues defined in the parties’ submission to voluntary arbitration agreement and should be decided on the bases of the parties’ position papers and submitted evidence

Office of SoLE is mandated to resolve the dispute within 60 days from the parties’ submission of the dispute

The DOLE Secretary does not assume the role of voluntary arbitrator once he assumes jurisdiction over a labor dispute. (Philtranco Service Enterprises vs Philtranco Workers Union, GR 180962, February 26, 2014)

Grievance Machinery and Voluntary Arbitration

Subject matter of grievance

Grievance or Grievable issue - any question raised either by the ER or the union regarding any of the following controversies:

1. The interpretation or application of the CBA

2. Interpretation or enforcement of company personnel policies

3. Violation of any provisions of the CBA or company personnel policies

A member of the bargaining union who brought this grievable issue for resolution by the Grievance Committee is bound by whatever disposition the latter may render thereon

Unresolved Grievances

All grievances submitted to the grievance machinery which are not settled within 7 calendar days from the date of their submission for resolution should automatically be referred to voluntary arbitration prescribed in the CBA.

The various internal procedural steps or stages of resolving grievances under the grievance machinery provisions of the CBA should be fully exhausted before resort to voluntary arbitration may be made

Before a party may seek the intervention of the court it is a precondition that he should have availed of all the means of administrative process afforded him, otherwise the premature invocation of the court’s intervention would be fatal to one’s cause of action

Voluntary Arbitrator

Voluntary Arbitration

A mode of settling labor management disputes in which the parties select a competent, trained, and impartial third person who is tasked on the merits of the case and whose decision is final and executory.

A third-party settlement of a labor dispute involving the mutual consent by the representatives of the employer and the

labor union involved in a labor dispute to submit their case for arbitration.

Voluntary Arbitrator

Any person who has been accredited by the NCMB

Any person named or designated in the CBA by the parties as their Voluntary Arbitrator

A person chosen by the parties with or without the assistance of the NCMB, pursuant to a voluntary arbitration

Also covers a panel of Voluntary Arbitrators

a. Jurisdiction of Voluntary Arbitrators

They exercise jurisdiction over:

1. Unresolved grievances arising from the interpretation or implementation of the CBA

2. Unresolved grievances arising from the interpretation or enforcement of company personnel policies

3. Violations of the CBA which are not gross in character

4. Other labor disputes, including unfair labor practices and bargaining deadlocks, upon agreement of the parties

5. National interest cases6. Wage distortion issues arising from the

application if any wage orders in organized establishments

7. Unresolved grievances arising from the interpretation and implementation of the Productivity Incentive Programs under RA 6971

Rights disputes

Unresolved grievances arising from the interpretation or implementation of the CBA, unresolved grievances arising from interpretation or enforcement of company personnel policies, as well Violations of the CBA which are not gross in character are called “rights disputes.”

These disputes contemplate the existence of a CBA already concluded or a situation

in which no effort is made to bring about a formal change in its terms or to create a new one. The dispute relates either to the meaning or proper application of a particular provision therein with reference to a specific situation or to an omitted case.

Interest disputes

Bargaining deadlocks are often referred to as “interest disputes.” These disputes relates to disputes over the formation of collective agreements or efforts to secure them. They arise where there is no such agreement or where it is sought to change the terms of one and therefore the issue is not whether an existing agreement controls the controversy.

Jurisdiction over labor disputes

The Voluntary Arbitrator of panel of Voluntary Arbitrators may also hear and decide all other labor disputes, including unfair labor practices, and bargaining deadlocks. (Art 262, Labor Code)

That is why before or at any stage of the compulsory arbitration process, parties to a labor dispute may agree to submit their case to voluntary arbitration.

Jurisdiction over national interest cases

SoLE’s power of assumption of jurisdiction or certification to the NLRC of labor disputes affecting industries indispensable to the national interest provides that before or at any stage of the compulsory arbitration process, the parties may opt to submit their dispute to voluntary arbitration. (Art 263 (g) Labor Code)

This means that even if the case has already been assumed by the DOLE Secretary or certified to the NLRC for compulsory arbitration, or even during its pendency therewith, the parties thereto may still withdraw the case from the SoLE or NLRC, as the case may be, and

submit it to a Voluntary Arbitrator for voluntary arbitration purposes.

Exercise of Jurisdiction

The Voluntary Arbitrator or panel of Voluntary Arbitrator shall exercise jurisdiction over a specific case when the following concur:

1. Receipt of a Submission Agreement duly signed by both parties

2. Upon receipt of a Notice to Arbitrate when there is refusal to arbitrate by one party

3. Upon receipt of an appointment or designation as Voluntary Arbitrator by the NCMB in either of the following circumstances: In the event that the parties failed

to select a Voluntary Arbitrator In the absence of a named

Voluntary Arbitrator in the CBA and the party upon whom the Notice to Arbitrate is served does not favourable reply within 7 days from receipt of such notice

Submission Agreement - a written agreement by the parties submitting their case for arbitration containing:

A statement of the issues The name of their chosen Voluntary

Arbitrator A stipulation and undertaking to abide

by and comply with the resolution that may be rendered including the cost of arbitration

Contents of a Submission Agreement (Section 5, Rules IV, NCMB revised Procedural Guidelines in the Conduct of Voluntary Arbitration Proceeding [Oct. 15, 2004])

The Submission should contain, among others, the following stipulations:

1. An agreement to submit the case to arbitration;

2. The specific issue/s to be arbitrated;3. The name/s of the Voluntary Arbitrator

or panel of Voluntary Arbitrators;

4. The names, addresses and contract numbers of the parties;

5. The agreement to perform or abide by the decision that may be rendered therein by the Voluntary Arbitrations

Notice to Arbitrate - a formal demand made by one party to the other for the arbitration of a particular dispute in the event of refusal by one party in a CBA to submit the same to arbitration

Remedies that may be granted by Voluntary Arbitrators

1. Additional remedies on Illegal Dismissal Cases:

Actual reinstatement Separation pay in lieu of

reinstatement, in case reinstatement becomes impossible, non-feasible, or impractical

Full backwages Moral and exemplary damages Attorney’s fees

2. Monetary awards in monetary claims cases

Court of Appeals

Rule 65, Rules of Court

General Rule

The only mode by which a labor case decided by any of the following labor authorities/tribunals may reach the Court of Appeals is through Rule 65 petition for certiorari:

The DOLE Secretary Commission (NLRC) The Director of the Bureau of Labor

Relations (BLR) in cases decided by him in his appellate jurisdiction

The remedy of ordinary appeal to the Court of Appeals is not available from their decisions, orders, or awards. The reason for this rule is that their decisions, orders,

or awards are final and executor and therefore inappealable.

Exception

Decisions, orders, or awards issued by the Voluntary Arbitrators or panel of Voluntary Arbitrators may be elevated to the CA by way of an ordinary appeal under Rule 43 Petition for Review.

From the decision of the NLRC, there is no appeal. The only way to elevate the case to the Court of Appeal is by way of the special civil action of certiorari under Rule 65 of the Rules of Civil Procedure (St. Martin Funeral Home vs. NLRC, et al, GR No. 130866, September 16, 1998).

Under the 1997 Rules of Civil Procedure, the period within which petitions for certiorari may be filed has been fixed at sixty (60) days from notice of judgment, order or resolution (A.M. No. 00-2-03-SC, September 1, 2000). The jurisdiction of the Court of Appeals

to review decisions of the NLRC in a petition does not include the correctness of its evaluation of the evidence or its factual findings which are generally accorded not only respect but also finality, but is confined to issues of jurisdiction or grave abuse of discretion. The judicial review does not go as far as to examine and assess the evidence of the parties and to weigh the probative valve thereof (Sea Power Shipping Enterprises, Inc. vs. CA No. 138270, June 28, 2001).

Philtranco Doctrine (Philtranco vs Philtranco Workers Union Association, G.R. No. 180962, February 26, 2014)

A motion for reconsideration should be filed even though it is not required by the concerned government office. Judicial Review of Decisions of Voluntary Arbitrators

General Rule: Decisions or awards of Voluntary Arbitrators are final,

inappealable, and executory after 10 calendar days from receipt of a copy thereof by the parties

Period of Appeal - 15 days from the notice of the award, judgment, or final order or resolution of the Voluntary Arbitrator

Luzon Development Bank vs Association of Luzon Devt Bank Employees (G.R. No. 120319, October 6, 1995)

The decisions or awards of Voluntary Arbitrators are equivalent of those of the Regional Trial Courts. Hence, in a petition for Certiorari from the awards or decisions of the Voluntary Arbitrator, the Court of Appeals has concurrent jurisdiction with the Supreme Court.

Supreme Court

Rule 45 Rules of Court

Rule 45 Petition for Review on Certiorary is the only mode by which a labor case may reach the Supreme Court. Appeal from CA to SC should be under

Rule 45 (Petition for Review on Certiorari) and not Rule 65 (Special Civil Action for Certiorari) (Sea Power Shipping Enterprises, Inc. vs. CA, GR No. 138270, June 28, 2011).

A petition for certiorari under Rule 65 cannot be a substitute for lost appeal under Rule 45; hence, it should be dismissed. (Fajardo vs. Bautista, 232 SCRA 291, 298).

This rule holds true especially if one’s error in ones choice of remedy occasioned such loss or lapse. (David vs. Cordova, 464 SCRA 384, 394)

Rule 45 is clear that decisions, final orders or resolutions of the Court of Appeals in any case, i.e. regardless of the nature of the action or proceeding involve, may be appealed to the Supreme Court by filing a petition for review, which would be but a continuation of the appellate process

over the original case. Under Rule 45, the reglementary period to appeal is fifteen (15) days from notice of judgment or denial of the motion for reconsideration (San Miguel Corporation vs. CA, GR No. 146775, January 30, 2002)

Prescription of Actions

Cause of Action

Prescriptive Period

Where to initiate

Illegal dismissal

4 years from accrual of cause of action

Labor Arbiter

Money claims 3 years from accrual of cause of action

Labor Arbiter Regional Director of DOLE (<P 5,000)

ULP 1 year from the time the acts complained of were committed

Labor Arbiter RTC (criminal)

Other offenses in the Labor Code

3 years Labor Arbiter

Illegal recruitment

5 years

(20 years for economic sabotage)

RTC

SSS 20 years from the time the delinquency is known or the assessment is made by the SSS, or from the time the benefit accrues, as the case may be

SSS

Employees Compensation

3 years ECC

General rule – The prescriptive period of all criminal offenses penalized under the Labor Code and the Rules to Implement

the Labor Code is three (3) years from the time of commission thereof.

Exception – Criminal cases arising from ULP which prescribe within (1) year from

the time the acts complained of were committed; otherwise, they shall be forever barred.

HAIL TO THE CHIEFS!

2015 LABOR LAW PURPLE NOTES