INTERPLAY OF THE LABOR AGENCIES IN

CASES OF STRIKES & LOCKOUTS

ABC UNION ---------------------------------------------------------------------------------------- ABS
CORPORATION
Notice of the strike
vote, the purpose to
settle during the 7
day strike ban
period.

The purpose of the notice of strike/

lockout is to make earnest effort to
mediate and reconcile within the 15 / 30
cooling off period.
Kapag na-convert na, mawawala na

Strike on
Ordinary
cases;
illegal
dismissal
LA must
have a
prima facie
finding of
mass
termination
tantamount

Injunctive
power

The
DOLE
may
assume
position
as
VAkahit

Assumption
order which
must be valid
or motu propio,

MR then
Petition for
Certiorari.

Requisites of Valid Assumption:

o Both parties should request DOLE to assume.
o There must be a conference and the DOLE shall determine the
propriety of assuming.
DOLE may assume in its discretion.
STRIKE BAN PURPOSE
To determine the imprimatur of the majority in the strike vote
Both parties request for the certification of national interest cases, then the
Secretary of DOLE shall call for the preliminary conference to determine the
propriety of assumption of risk
STRIKE VOTE / LOCKOUT
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LAST DITCH EFFORT

o Third day of strike
o Mandatory conference, motu propio or not
Once jurisdiction is assumed, the workers have 24 hours to return to work. If
they refuse, they may be dismissed.

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THE PRESIDENT
The President shall exercise jurisdiction over issues or controversies which,
according to its determination, are indispensable to the NATIONAL INTEREST. It
shall intervene at an time and ASSUME JURISDICTION over ANY such labor dispute
(causing or likely to cause strike or lockout) in order to settle or terminate the same.
Art 263(g): 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.

Indeed, the Court has consistently ruled that the

secretary's assumption of Jurisdiction is intended not to
interfere with or impede workers' rights, but to obtain
speedy settlement of labor disputes and only if js will be
affected. Admittedly, the Court has allowed the
secretary's assumption of jurisdiction in many cases,
some of which are worth mentioning to show the care
with which such plenary power should be used. PHIMCO
vs Brillantes

The Court has declared that the administration of a

school is of national interest because "xxx [it] is engaged
in the promotion of the physical, intellectual and
emotional well-being of the country's youth." Work
stoppage at a school unduly prejudices the students and
entails great loss to all concerned in terms of time, effort
and
money.
Philippine
School
of
Business
Administration v. Noriel

An enterprise exporting 90 percent of its production and

generating more than $12 million dollars per year was
declared to be of national interest. Any disruption of
operations would have caused the delay of shipments of
export consisting of finished products previously
committed to customers abroad, a delay that -would have
hampered the economic recovery program pursued by
the government.
The manufacture of drugs and pharmaceuticals has also
been declared to belong to the same classifications.
Likewise, the operation of an airline that services
domestic routes has been deemed to be imbued with
national interest. In one case, a company was considered
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CHARINA FLOR A. CACHO

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to be indispensable to national interest, as it was

responsible for 22 percent of the tire production in the
Philippines, and work disruption would have not only
aggravated the already worsening unemployment
situation but also discouraged foreign and domestic
entrepreneurs from further investing in the country. -Sarmiento v. Tuico

Wherein the Court declared the secretary to be without

Jurisdiction to take over a labor dispute involving a
company that produced telephone directories, viz.:
"The production and publication of telephone directories,
which is the principal activity of GTE, can scarcely be
described as an industry affecting the national interest.
GTE is a publishing firm chiefly dependent on the
marketing and sale of advertising space for its not
inconsiderable revenues. Its services, while of value,
cannot be deemed to be in the same category of such
essential activities as 'the generation or distribution of
energy' or those undertaken by 'banks, hospitals, and
export-oriented industries.' It cannot be regarded as
playing as vital a role in communication as other mass
media. The small number of employees involved in the
dispute, the employer's payment of 'Pl0 million in income
tax alone to the Philippine Government,' and the fact that
the 'top officers of the union were dismissed during the
conciliation process,' obviously do not suffice to make the
dispute in the case at bar one 'adversely affecting the
national interest." - GTE Directories Corporation v.
Sanchez

Appeal to the Court of Appeals under Art 43.

THE SECRETARY OF DOLE

VISITORIAL & ENFORCEMENT under Art 128
o Inspection
o Issue Compliance Orders
o Issue Writs of Execution
o Order Stoppage of Work or Suspension of Operation
No appeal shall be taken from the decision of the DOLE Secretary under Art
128

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CHARINA FLOR A. CACHO

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Certification Order on cases involving NATIONAL INTEREST (involving Strike or

Lockout)
Remedy: Motion for Reconsideration
APPELLATE JURISDICTION
o Over orders issued by the REGIONAL DIRECTOR (or his authorized
representative) under the Visitorial and Enforcement Power
o

Decision of BUREAU OF LABOR RELATIONS rendered in its original

jurisdiction on Union Registration
Denial of Application for Registration or Cancellation thereof

Decisions of the MED-ARBITER in Certification Election cases

NATIONAL LABOR RELATIONS

Original Jurisdiction
1. Injunction in ordinary labor disputes 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;
2. Injunction in strikes or lockouts under Article 264 of the Labor Code;
3. Certified labor disputes causing or likely to cause a strike or lockout in an
industry indispensable to the national interest, certified to it by the
Secretary of Labor and Employment for compulsory arbitration;
4. Direct Contempt under Sec 1, Rule 9 of the 2011 NLRC; and
5. Annulment or Modification of Order or Resolution by verified petition of the
Labor Arbiter during the Execution Proceedings through under Sec 1, Rule
12 of the 2011 NLRC Rules of Procedure.
Exclusive Appellate Jurisdiction
1. All cases decided by the Labor Arbiters including contempt cases;
2. Direct Contempt
3. Cases decided by the DOLE Regional Directors or his duly authorized
Hearing Officers (under Article 129) involving recovery of wages, simple
money claims and other benefits not exceeding P5,000 and not
accompanied by claim for reinstatement.

LABOR ARBITER
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CHARINA FLOR A. CACHO

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GENERAL RULE:

Cases arising out of employer-employee relationship

The jurisdiction of labor arbiters and the NLRC under Article 217 of the Labor
Code is limited to disputes arising from an employer-employee relationship
which can be resolved by reference to the Labor Code, or other labor statutes,
or their collective bargaining agreements. Manila Hotel vs NLRC, 2000

If no such relationship exists between the parties to a suit, then the

jurisdiction over the same properly lies with the regular courts. Tongko vs
Manulife, 2008

This requirement of employer-employer relationship is jurisdictional for the

provisions of the Labor Code, specifically Book VI thereof, on PostEmployment, to apply. Uy vs Bueno, 2006

As correctly contended by the Office of the Solicitor General, there is a

complete want of evidence that the indebtedness asserted by the private
respondent against Andres Pondoc arose out of or was incurred in connection
with the employer-employee relationship between them. The Labor Arbiter
did not then have jurisdiction over the claim as under paragraph (a) of Article
217 of the Labor Code Pondoc vs NLRC, 1996

EXCEPTION/s:
1. Seafarer or OFWs who has POEA-approved employment contract but who
was not deployed overseas;
Despite the absence of an employer-employee relationship between
petitioner and respondent, the Court rules that the NLRC has jurisdiction over
petitioners complaint. The jurisdiction of labor arbiters is not limited to claims
arising from employer-employee relationships. Section 10 of R.A. No. 8042
(Migrant Workers Act), provides that:
Sec. 10. Money Claims. Notwithstanding any provision of law to the
contrary, the Labor Arbiters of the National Labor Relations
Commission (NLRC) shall have the original and exclusive jurisdiction to
hear and decide, within ninety (90) calendar days after the filing of the
complaint, the claims arising out of an employer-employee relationship
or by virtue of any law or contract involving Filipino workers for
overseas deployment including claims for actual, moral,
exemplary and other forms of damages. x x x [Emphasis supplied]
Since the present petition involves the employment contract entered into by
petitioner for overseas employment, his claims are cognizable by the labor
arbiters of the NLRC. Santiago vs CF Sharp Crew

2. Other cases as may be provided by law

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More specifically, even if there is employer-employee relationship, the

cause of action is one which arises out of OTHER OBLIGATIONS such as

Torts
Malicious Prosecution; or
Breach of Contract

Stated differently, petitioner seeks protection under the civil laws and claims
no benefits under the Labor Code. The primary relief sought is for liquidated
damages for breach of a contractual obligation. The other items demanded
are not labor benefits demanded by workers generally taken cognizance of in
labor disputes, such as payment of wages, overtime compensation or
separation pay. The items claimed are the natural consequences flowing from
breach of an obligation, intrinsically a civil dispute. - Singapore Airlines
Limited v. Pao, 122 SCRA 671, 677

In the case below, PLAINTIFF had sued for monies loaned to DEFENDANT, the
cost of repair jobs made on his personal cars, and for the purchase price of
vehicles and parts sold to him. Those accounts have no relevance to the
Labor Code. The cause of action was one under the civil laws, and it does not
breach any provision of the Labor Code or the contract of employment of
DEFENDANT. Hence the civil courts, not the Labor Arbiters and the NLRC
should have jurisdiction. SMC vs NLRC, 1988

In the instant case, respondent Roque claimed for unpaid salaries and other
benefits due to an employee. In addition, he claimed damages basically on
the sufferings, humiliations and embarrassments that he and his family
experienced during the pendency of the criminal case that Coke Bottlers
initiated against him for estafa. Since resolving the issue calls for the
application of civil laws, the case is properly cognizable by the regular
courts. Coca-Cola Bottlers vs Roque, 1982

Although the acts complained of seemingly appear to constitute 'matter

involving employee-employer' relations as Quisaba's dismissal was the
severance of a pre-existing employee-employer relations, his complaint is
grounded not on his dismissal per se, as in fact he does not ask for
reinstatement or backwages, but on the manner of his dismissal and the
consequent effects of such dismissal.
"Civil law consists of that 'mass of precepts that determine or
regulate the relations . . . that exist between members of a
society for the protection of private interest (1 Sanchez Roman
3).
"The 'right' of the respondents to dismiss Quisaba should not be confused
with the manner in which the right was exercised and the effects flowing
therefrom. If the dismissal was done anti-socially or oppressively as the
complaint alleges, then the respondents violated Article 1701 of the Civil
Code which prohibits acts of oppression by either capital or labor against the
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other, and Article 21, which makes a person liable for damages if he wilfully
causes loss or injury to another in a manner that is contrary to morals, good
customs or public policy, the sanction for which, by way of moral damages, is
provided in article 2219, No. 10. [citation omitted] Quisaba vs Sta Ines

Upon the facts and issues involved, jurisdiction over the present controversy
must be held to belong to the civil Courts. While seemingly petitioner's claim
for damages arises from employer-employee relations, and the latest
amendment to Article 217 of the Labor Code under PD No. 1691 and BP Blg.
130 provides that all other claims arising from employer-employee
relationship are cognizable by Labor Arbiters [citation omitted], in essence,
petitioner's claim for damages is grounded on the "wanton failure and refusal"
without just cause of private respondent Cruz to report for duty despite
repeated notices served upon him of the disapproval of his application for
leave of absence without pay. This, coupled with the further averment that
Cruz "maliciously and with bad faith" violated the terms and conditions of the
conversion training course agreement to the damage of petitioner removes
the present controversy from the coverage of the Labor Code and brings it
within the purview of Civil Law.
Clearly, the complaint was anchored not on the abandonment per se by
private respondent Cruz of his jobas the latter was not required in the
Complaint to report back to workbut on the manner and consequent
effects of such abandonment of work translated in terms of the damages
which petitioner had to suffer. Portillo vs Sta Ines, 2012

EXCEPTION to the EXCEPTION/s:

1. Secretary of Labor and Employment exercises his power under Art 263(g) of
the Labor Code to assume jurisdiction over national interest cases and decide
them himself;
2. When the NLRC exercises its power of compulsory arbitration over national
interest cases that were certified to it by the Secretary of Labor and
Employment pursuant to the exercise by the latter of his certification power
under Art 263(g); or
3. When the parties agree to submit the case to voluntary arbitration before a
Voluntary Arbitrator or Panel of Voluntary Arbitrators who, under Art 261 and
262 of the Labor Code are also possessed of original and exclusive
jurisdiction to hear and decide cases mutually substituted to them by the
parties for arbitration and adjudication.

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CHARINA FLOR A. CACHO

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JURISDICTION
ARBITER:

OF

THE

LABOR

1. Unfair labor practice (ULP) cases;

2.

Termination disputes (or illegal dismissal

cases);

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 employeremployee relations;
5.

Cases arising from any violation of Article 264

of the Labor Code, including questions
involving the legality of strikes and lockouts;

6.

Except claims for employees compensation

not included in the next succeeding
paragraph, 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), whether or not
accompanied with a claim for reinstatement;

7.

Wage distortion disputes in unorganized

establishments not voluntarily settled by the
parties pursuant to Republic Act No. 6627;

8.

Enforcement of compromise agreements

when there is non-compliance by any of the
parties pursuant to Article 227 of the Labor
Code, as amended;

9.

Money claims arising out of employeremployee relationship or by virtue of any law

or contract, involving Filipino workers for
overseas employment, including claims for
actual, moral, exemplary and other forms of
damages as provided by Section 10 of R.A. No.
8042, as amended by R.A. No. 10022;

10. Contested cases under the exception clause

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of Article 128(b) of the Labor Code, as

amended by R.A. 7730; and
11. Other cases as may be provided by law.
Source: http://nlrc.dole.gov.ph/?q=node/76

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CHARINA FLOR A. CACHO

LABOR LAW REVIEW 10

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UNFAIR LABOR PRACTICE CASES

Art 212(k).
"Unfair labor practice" means
any unfair labor practice as expressly
defined by the Code.

Article 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, attorneys 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
administrative proceedings shall
recovery under the Civil Code.

PERSONAL NOTES BY:

CHARINA FLOR A. CACHO

the
bar

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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. (As amended by Batas
Pambansa Bilang 70, May 1, 1980 and
later further amended by Section 19,
Republic Act No. 6715, March 21, 1989).

Chapter II
UNFAIR LABOR PRACTICES OF EMPLOYERS
Article 248. Unfair labor practices of
employers. It shall be unlawful for an
employer to commit any of the following
unfair labor practice:
(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 rights
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;
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(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 nonunion 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 nonmembers 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 attorneys 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
agreement.

collective

bargaining

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
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unfair labor practices shall be held

criminally liable. (As amended by Batas
Pambansa Bilang 130, August 21, 1981).

Chapter III
UNFAIR LABOR PRACTICES
ORGANIZATIONS

OF

LABOR

Article 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

attorneys fees from employers as part of
the settlement of any issue in collective
bargaining or any other dispute; or
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(f)

To violate
agreement.

collective

bargaining

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. (As amended by
Batas Pambansa Bilang 130, August 21,
1981).

Art 263(c) In case 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 day
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. (As amended by
Executive Order No. 111, December 24,
1986).
Relate to Art 261
Article. 261. Jurisdiction of Voluntary
Arbitrators
or
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
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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.

PERSONAL NOTES BY:

CHARINA FLOR A. CACHO

2.

Termination disputes (or illegal dismissal

cases);

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
employer-employee relations;

5.

Cases arising from any violation of Article

264 of the Labor Code, including questions
involving the legality of strikes and lockouts;

6.

Except claims for employees compensation

not included in the next succeeding
paragraph, social security, medicare and
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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), whether or not
accompanied with a claim for reinstatement;
7.

Wage distortion disputes in unorganized

establishments not voluntarily settled by the
parties pursuant to Republic Act No. 6627;

8.

Enforcement of compromise agreements

when there is non-compliance by any of the
parties pursuant to Article 227 of the Labor
Code, as amended;

9.

Money claims arising out of employeremployee relationship or by virtue of any law

or contract, involving Filipino workers for
overseas employment, including claims for
actual, moral, exemplary and other forms of
damages as provided by Section 10 of R.A.
No. 8042, as amended by R.A. No. 10022;

10. Contested cases under the exception clause

of Article 128(b) of the Labor Code, as
amended by R.A. 7730; and
11. Other cases as may be provided by law.
Source: http://nlrc.dole.gov.ph/?q=node/76

TERMINATION DISPUTES

PERSONAL NOTES BY:

CHARINA FLOR A. CACHO

If there is a claim for REINSTATEMENT, the

jurisdiction shall be with the Labor Arbiter
regardless of the amount;

If there is no claim for reinstatement and

the amount is Php 5,000 OR ABOVE, the
Labor Arbiter regardless of the amount;
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If there is no claim for reinstatement and

the amount is aggregate of Php 5,000 of
each employment, then the Regional
Director shall take cognizance and is
appealable to the NLRC within 5 days (Art
129).

EXCEPTIONAL CLAUSE
(ART 128B)

If there is a claim for REINSTATEMENT, the

jurisdiction shall be with the Labor Arbiter
regardless of the amount;

If there is no claim for reinstatement and

the amount is Php 5,000 OR ABOVE, the
Labor Arbiter regardless of the amount;

WAGE DISTORTION
(ART 124 par5)

PERSONAL NOTES BY:

CHARINA FLOR A. CACHO

Wage distortion shall mean a situation

where an increase in prescribed wage
rates results in the elimination or severe
contraction of intentional quantitative
differences in wage or salary rates
between and among employee groups in
an establishment as to effectively
obliterate the distinctions embodied in
such wage structure based on skills,
length of service, or other logical bases of
differentiation.

If there is CBA, the issue shall be resolved

through grievance machinery or by the
Voluntary Arbitrator

If the wage distortion occurred in

organized
environment,
grievance
machinery
or
through
voluntary
arbitration

Otherwise through, Labor Arbitrator.

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MIGRANT WORKERS CLAIM

Sec 10 of RA 8042, as amended by RA

10022;
SEC. 10. Money Claims. - Notwithstanding
any provision of law to the contrary, the
Labor Arbiters of the National Labor
Relations Commission (NLRC) shall have
the original and exclusive jurisdiction to
hear and decide, within ninety (90)
calendar days after filing of the complaint,
the claims arising out of an employeremployee relationship or by virtue of any
law or contract involving Filipino workers
for overseas deployment including claims
for actual, moral, exemplary and other
forms of damages.

Perfected contract of OFW by the POEA

even though the worker was not deployed
(Estate of Dulay vs NLRC):
It is true that R.A. 8042 is a special law
governing
overseas
Filipino
workers.
However, a careful reading of this special
law would readily show that there is no
specific
provision
thereunder
which
provides for jurisdiction over disputes or
unresolved grievances regarding the
interpretation or implementation of a
CBA. Section 10 of R.A. 8042, which is
cited by petitioner, simply speaks, in
general, of claims arising out of an
employer-employee relationship or by
virtue of any law or contract involving
Filipino workers for overseas deployment
including
claims
for
actual,
moral,
exemplary and other forms of damages.
On the other hand, Articles 217(c) and 261
of the Labor Code are very specific in
stating that voluntary arbitrators have
jurisdiction over cases arising from the
interpretation
or
implementation
of
collective bargaining agreements. Stated

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differently, the instant case involves a

situation where the special statute (R.A.
8042) refers to a subject in general, which
the general statute (Labor Code) treats in
particular. In the present case, the basic
issue raised by Merridy Jane in her
complaint filed with the NLRC is: which
provision of the subject CBA applies insofar
as death benefits due to the heirs of
Nelson are concerned. The Court agrees
with the CA in holding that this issue
clearly involves the interpretation or
implementation of the said CBA. Thus, the
specific or special provisions of the Labor
Code govern.

The claims arise out of er-ee, or contract or

by law.

CONTEMPT CASES
Robosa, et. al. vs. NLRC, G.R. No. 176085,
February 8, 2012
In a February 2012 decision, the Supreme
Court stressed that under Article 218 of the
Labor Code, the NLRC (and the labor arbiters)
may hold any offending party in contempt,
directly or indirectly, and impose appropriate
penalties in accordance with law. The penalty
for direct
contempt consists
of
either
imprisonment or fine, the degree or amount
depends on whether the contempt is against the
Commission or the labor arbiter. The Labor
Code, however, requires the labor arbiter or the
Commission to deal with indirect contempt in
the manner prescribed under Rule 71 of the
Rules of Court.
Rule 71 of the Rules of Court does not
require the labor arbiter or the NLRC to initiate
indirect contempt proceedings before the trial
court. This mode is to be observed only when
there is no law granting them contempt powers.
As is clear under Article 218(d) of the Labor
Code, the labor arbiter or the Commission is
empowered or has jurisdiction to hold the
offending party or parties in direct or indirect
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contempt. The petitioners in this case, however,

have not improperly brought the indirect
contempt charges against the respondents
before the NLRC.

COMPROMISE AGREEMENT

Those which were not enforced;

Those which were not complied with

Other cases over which the Labor Arbiter may

take cognizance of:
1

Contested cases under the exception clause of

Article 128(b) of the Labor Code, as amended by
R.A. 7730 provided that:
a. The Employer contests the findings of the
labor regulations and raises issues thereon;
b. Evidentiary matters are required to be
examined; and
c. Verification of such matters is not feasible in
the ordinary course of inspection.

Rehabilitation receivership shall only suspend the

jurisdiction of the Labor Arbiter. Once the same is
terminated, monetary claims may be brought
before the labor arbiters;
Rehabilitation receivership of a company has
the effect of suspending all proceedings at
whatever stage it may be found - in all
judicial or quasi-judicial bodies. The NLRC
may not proceed with hearing of monetary
claims. If already decided, the monetary
awards cannot be executed. If due for
execution, no such execution may be had.

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Only when there is liquidation that the

monetary claims may be asserted. The
suspension of the proceedings is necessary
to enable the rehabilitation receiver to
effectively exercise its powers free from any
judicial or extra-judicial interference that
might unduly hinder the rescue of the
distressed company. Once the receivership
proceedings
have
ceased
and
the
receiver/liquidator is given the imprimatur to
proceed with corporate liquidation, the SEC
order becomes functus officio. Thus, there is
no legal impediment for the execution of the
decision of the Labor Arbiter for the payment
of separation pay by presenting it with the
rehabilitation receiver and liquidator, subject
to the rules on preference of credits.

PERSONAL NOTES BY:

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Wage distortion cases only in unorganized cases

(because if organized, the same shall be brought
before voluntary arbitration)

Direct contempt
SECTION 1. Direct contempt. (a) The Chairman or
Commissioner/s or any Labor Arbiter may
summarily adjudge guilty of direct contempt any
person committing any act of misbehavior in the
presence of or so near the Chairman or any
Commissioner or Labor Arbiter as to obstruct or
interrupt the proceedings before the same,
including disrespect toward said officials, offensive
acts toward others, or refusal to be sworn or to
answer as a witness or to subscriber to an affidavit
or deposition when lawfully required to do so. If the
offense is committed against the Commission or
any member thereof, the same shall be punished
by a fine not exceeding five hundred pesos (P500)
or imprisonment not exceeding five (5) days, or
both; and, if the offense is committed against any
Labor Arbiter the same shall be punished by a fine
not exceeding One Hundred Pesos (P100.00) or
imprisonment not exceeding one (1) day, or both.

Indirect contempt
SECTION 2. Indirect Contempt. The Commission
or any Labor Arbiter may also cite any person for
indirect contempt upon grounds and in the manner
prescribed under Rule 71 of the Revised Rules of
Court.

Monetary claims and illegal dismissal of employees

Cooperatives except with regard to termination of
LABOR LAW REVIEW 22
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membership under RA 6938.

7

Illegal dismissal cases involving priests and

religious ministers with respect to their employeremployee relationship or employment but not with
regard to excommunication or expulsion from the
congregation.

Cases involving employees of GOCC without

original charters (because these are organized
under the Corporation Code)

Private corporation employees except corporate

officers named in the AOI and By-Laws of the
corporation, provided that if these corporate
officers are holding other non-corporate positions,
they may be dismissed as such.

10 Legality of Deduction for Tax Purposes intertwined

with the main issue of employees full payment of
benefits
arising
from
employer-employee
relationship.

Sources: http://nlrc.dole.gov.ph/?q=node/38
http://www.chanrobles.com/legal4labor3.htm
http://www.chanrobles.com/nlrcnewrulesofprocedure
1.html#.VATc08VdXvI

NATIONAL LABOR RELATIONS

COMMISSION
Original Jurisdiction
1. Injunction in ordinary labor disputes to enjoin
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2.
3.

4.
5.

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;
Injunction in strikes or lockouts under Article
264 of the Labor Code;
Certified labor disputes causing or likely to
cause a strike or lockout in an industry
indispensable to the national interest, certified
to it by the Secretary of Labor and
Employment for compulsory arbitration;
Direct Contempt under Sec 1, Rule 9 of the
2011 NLRC; and
Annulment or Modification of Order or
Resolution by verified petition of the Labor
Arbiter during the Execution Proceedings
through under Sec 1, Rule 12 of the 2011
NLRC Rules of Procedure.
Exclusive Appellate Jurisdiction

1. All cases decided by the Labor Arbiters (Art

217(b));
2. Direct Contempt; and
3. Art 263(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 alrea ndy 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.
4. Art 129. Cases decided by the DOLE Regional
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Directors or his duly authorized Hearing

Officers (under Article 129) involving recovery
of wages, simple money claims and other
benefits not exceeding P5,000 and not
accompanied by claim for reinstatement.

GRIEVANCE COMMITTEE /
MACHINERY
Original Jurisdiction
1. Interpretation of CBA;
2. Interpretation of Company policies;
3. Distortion Cases in organized establishments
If not settled within 7 days, submit to voluntary
arbitration
Constitutionality / Legality of CBA is with the
RTC
Source:
http://ncmb.ph/VAP/Voluntary_Arbitrators/The_VAs.
html

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PERSONAL NOTES BY:

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VOLUNTARY ARBITRATOR
Voluntary arbitration is an alternative mode of
dispute resolution.
The process is as follows:
1. Submit agreement for arbitration
2. Notice/demand to arbitrate (if there is no
appointed voluntary arbitrator, the NCMB shall
appoint)
3. If it did not participate, file a petition for
review to the Court of Appeals.
Administrate
Intervention
Dispute
Avoidance
AIDA by the Secretary of Labor

Original Jurisdiction
1. All unresolved grievances arising from CBA;
2. All unresolved grievances arising from
Company policies;
3. All unresolved Wage Distortion Case in
organized establishments
4. All other labor disputes including ULP ad
Bargaining deadlocks, upon agreement of
the parties including the illegality of strikes
and lockouts
Appellate Jurisdiction
Art 262. 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.
Powers:
1. To hold hearings;
2. To receive evidence;
3. To take whatever action is necessary to
resolve the issue/subject of the dispute;
4. To conciliate or mediate to aid the parties
in reaching a voluntary settlement of the
dispute;
5. To issue a writ of execution to enforce
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final decisions,
awards.

orders,

resolutions

or

Source:
http://ncmb.ph/VAP/Voluntary_Arbitrators/The_VAs.
html

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Visitorial &
Enforcement under
Art 128

THE REGIONAL DIRECTOR

(OR DULY AUTHORIZED HEARING
OFFICER)

1.
2.
3.
4.

Visitorial & Enforcement under Art 128

(Appeal to the Secretary)
Power to inspect employers record and
premises;
Power to issue compliance orders;
Power to issue writs of execution; and
Power to Order Stoppage of Work or
Suspension of Operation

There still exists EE-ER relationship.

VISITORIAL POWER includes access, power to
investigate and to interview.
ENFORCEMENT POWER includes compliance
order, writ of execution, suspension order,
closure order
Except if the following elements concur:
1. Employer contests the findings;
2. Evidentiary matters; and
3. Matters not verifiable in the normal course of
inspection

Money Claims

PERSONAL NOTES BY:

CHARINA FLOR A. CACHO

The most important consideration for the

allowance of the instant petition is the
opportunity for the Court not only to set the
demarcation between the NLRCs jurisdiction
and the DOLEs prerogative but also the
procedure when the case involves the
fundamental
challenge on
the
DOLEs
prerogative based on lack of employeremployee
relationship.
As exhaustively
discussed here, the DOLEs prerogative
hinges on the existence of employeremployee relationship, the issue is which is at
the very heart of this case. And the evidence
clearly indicates private respondent has
never been petitioners employee. But the
DOLE did not address, while the Court of
Appeals glossed over, the issue. The
peremptory dismissal of the instant petition
on a technicality would deprive the Court of
the
opportunity
to
resolve the novel
controversy. Bombo Radyo vs NLRC
LABOR LAW REVIEW 29
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Money Claims
(Appeal to the NLRC)
1. Arising from er-ee relationship
2. No reinstatement
3. Does not exceed Php 5,000.00
Note that in this case, there are no more
ER-EE relationship.

If INTRA-UNION DISPUTES
and all other disputes
originating
from
Labor
Relations Regional Office
(except
INTER-UNION
DISPUTES)

THE DOLE LABOR RELATIONS

REGIONAL OFFICE
Original & Exclusive
(Appeal to the Bureau of Labor Relations)
1. Inter-union
Disputes/Representation
Disputes;
- Petition for Certification Election
Organized: if granted or denied,
appeal
Unorganized: if granted, certiorari
under
Rule 65
If denied, appeal
2. Intra-union / Internal Disputes;
3. All disputes, Grievances or Problems
Administrative Function
1. Registration of Labor union (single
enterprise)
2. Keeping of Registry of Labor Union
3. Maintenance and custody of CBAs

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INTER-UNION DISPUTES

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NATIONAL CONCILIATION AND

MEDIATION BOARD
-

The
NCMB,
created
under
Executive
Order
No.
126,
reorganizing
the
DOLE,
shall
formulate policies, develop plans
and programs and set standards
and procedures relative to the
promotion of conciliation and
mediation of labor disputes through
the
preventive
mediation,
conciliation
and
voluntary
arbitration; facilitation of labormanagement cooperation through
joint mechanisms for information
sharing, effective communication
and
consultation
and
groupproblem solving.

No adjudicatory power
E.O. 126
The main purpose is to conciliate
and mediate
Notices of Strikes and Lockouts
shall be filed herein

MEDIATION
TYPES OF MEDIATION
1. Facilitative
2. Evaluative
PREVENTIVE MEDIATION
Non-strikeable issue
Requested conversion of preventive
mediation of issue of strike was not really
strikeable
Both parties agree to submit
CONCILIATION
FUNCTIONS
1. Formulate policies, programs, standards,
procedures, manuals of operations and
guidelines pertaining to effective mediation
and conciliation of all labor dispute.
2. Perform
preventive
mediation
and
conciliation functions.
3. Coordinate and maintain linkages with other
sectors of institutions, and other government
authorities concerned with matters relative
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4.

5.

6.

7.

8.

to the prevention and settlement of labor

disputes.
Formulates
policies,
plans,
programs,
standards,
procedures,
manuals
of
operations and guidelines pertaining to the
promotion
of
cooperative
and
nonadversarial schemes, grievance handling,
voluntary arbitration and other voluntary
modes of dispute settlement.
Administer
the
voluntary
arbitration
program; maintain/update a list of voluntary
arbitrators, compile arbitration awards and
decisions.
Provide counseling and preventive mediation
assistance particularly in the administration
of collective agreements.
Monitor and exercise technical supervision
over
the
Board's
programs
being
implemented in the regional offices; and
Perform such other functions as may be
provided by law or assigned by the
Secretary.

Sources:
http://www.lawphil.net/executive/execord/eo1987/eo_126_1987
.html

http://ncmb.ph/

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JURISDICTION OF THE BUREAU OF

LABOR RELATIONS
Article. 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 labormanagement 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. (As
amended by Section 14, Republic Act No. 6715,
March 21, 1989).
-

No adjudicatory power
E.O. 126

Original & Exclusive (Appeal to the Sec of

Labor)
1. Inter-union
Disputes/Representation
Disputes;
- Petition for Certification Election
filed by a duly registered labor org
which is seeking to be recognized
as
the
sole
and
exclusive
bargaining agent of the rank and
file employees in the appropriate
bargaining unit of a company, firm
or establishment
Organized: if granted or denied,
appeal
Unorganized: if granted, certiorari
under
Rule 65
If denied, appeal
2. Intra-union / Internal Disputes;
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Refers to disputes or grievances

arising from any violation of or
disagreement over any provision of
the constitution and by-laws of the
union, including any violation of
rigts and conditions of union
membership provided for in the
Labor Code

3. All disputes, grievances or problems arising

from
or
affecting
labor-management
relations in all workplace, except those
arising
from
the
interpretation
or
implementation of the CBA which are subject
of grievance procedure and/or voluntary
arbitration
Appellate & Exclusive Jurisdiction
1. Over cases decided by the Regional Labor
Relations Office
2. Med-arbiter on Intra-Union Disputes
Administrative Function
3. Registration of Labor Unions (Multi-employer)
4. Keeping of Registry of Labor Unions
5. Maintenance and Custody of CBAs

Sources:
http://www.chanrobles.com/legal4labor5.htm

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JURISDICTION OF THE PHILIPPINE

OVERSEAS EMPLOYMENT
AGENCY
Original Jurisdiction
1. All pre-employment cases
administrative in character

which

are

Section 1, Book VI of POEA Rules and

Regulations:
Section
1.
Jurisdiction.
The
Administration shall exercise original and
exclusive jurisdiction to hear and decide
all pre-employment cases which are
administrative in character, involving
or arising out of violation of recruitment
laws, rules and regulations including
money claims arising therefrom or
violation of the conditions for issuance of
license to recruit workers.

2. Refund of Fees collected from the

workers or violation of the conditions for
issuance of license or authority to recruit
workers
3. Disciplinary action cases and other special
cases
which
are
administrative
in
character, involving employers, principals,
contracting partners and OFWs processed
by the POEA;
Administrative Proceedings of POEA
Only over licensed and authorized agency. If
not, criminal prosecution through the
assistance of the POEA before the RTC
No more jurisdiction over money claims of
OFWs EXCEPT for Refund for fees

Sources:

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JURISDICTION OF THE NATIONAL

WAGES & PRODUCTIVITY
COMMISSION
Powers
1. Power to determine and fix minimum wage
rates applicable in the region, provinces or
industries therein
2. Issue corresponding wage order subject to
the guidelines issued by the NWPC
3. Issue exceptions from wage order subject to
the review and approval by the NWPC

Mandate
NWPC is a key policy making body on wages,
incomes and productivity, mandated under
RA 6727 or the Wage Rationalization Act
(1989) and RA 6971 or the Productivity
Incentives Act of 1990 to:
Determine minimum wages at the
regional,provincial and/or industry levels;
and
Promote productivity improvement and
gainsharing schemes, particularly among
micro, small and medium enterprises.
NWPC formulates policies and guidelines on
wages, incomes and productivity and
exercises technical and administrative
supervision over the RTWPBs.
With 17 RTWPBs (including ARMM)
responsible for setting minimum wages and
promoting productivity improvement
programs.

Sources: http://www.nwpc.dole.gov.ph/

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D.O. 10-F-03-H

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