CHAPTER III APPEAL A petition for relief from the decision of the labor arbiter must
strictly comply with 2 reglementary periods:
ART. 223. APPEAL
GROUNDS FOR APPEAL:
1. If there is prima facie evidence of abuse of discretion on
the part of the Labor Arbiter or Compulsory Arbitrator;
2. If the decision, order or award was secured through fraud
or coercion, including graft and corruption;
3. If made purely on questions of law;
4. If serious errors in the findings of facts are raised which
would cause grave or irreparable damage or injury to the
appellant.
PERIODS WITHIN WHICH TO APPEAL:
A. DECISIONS OF THE REGIONAL DIRECTOR:
within 5 calendar days from receipt of the order.
B. DECISIONS OF THE LABOR ARBITER:
within 10 calendar days from the receipt of the
decision.
The appeal must be under oath and must state
specifically the grounds relied upon and the supporting
arguments.
Where the 10th day falls on a Saturday, Sunday or legal
holiday, the appeal may be filed on the next business
day.
IS THE PERIOD OF APPEAL EXTENDIBLE?
NO. The period of appeal to cases decided by the regional
Director and the Labor Arbiter is NEVER extendible. It is the policy
of the state to settle expeditiously labor disputes.
REQUISITES BEFORE APPEAL TO THE NLRC IS DEEMED
PERFECTED:
1. File a verified memo of appeal within the required period
of appeal;
2. In case of monetary award, the employer should file a
bond corresponding to the monetary award excluding
awards for moral, exemplary damages and attorneys fees.
3. Appeal fee of P110;
4. Furnish the other party with a copy of the memo of appeal
(proof of service).
Where the employer failed to post a bond to perfect its
appeal, the remedy of the employee is not a petition for
mandamus by a motion to dismiss appeal.
The intention of the lawmakers is to make the bond an
indispensable requisite for the perfection of an appeal by
the employer.
Tardiness of an appeal form the decision of the labor
arbiter may be considered as a mere procedural lapse.
EXECUTION PENDING APPEAL:
the decision of the labor arbiter ordering the
reinstatement of a dismissed or separated employee shall
immediately executory insofar as the reinstatement aspect
is concerned and the posting of an appeal bond by the
employer shall not stay such execution. There is no need
for the arbiter to issue a writ of execution on the
reinstatement order as it is self-executory (Pioneer
Texturizing Case).
OPTIONS OF THE EMPLOYER TO IN COMPLYING WITH AN ORDER
OF REINSTATEMENT WHICH IS IMMEDIATELY EXECUTORY:
1. He can admit the dismissed employee back to work under
the same terms and conditions prevailing prior to his
dismissal or separation or to a substantially equivalent
position if the former position is already filled up.
2. He can reinstate the employee merely in the payroll.
Failing to exercise any option may be compelled under
pain of contempt and the employer may be made to pay
instead the salary of the employee.
1. The petition must be filed within 60 days from knowledge
of the judgment; and
2. Within a fixed period of 6 months from entry of such
judgment.
petitions filed beyond said period will no longer
be entertained.
APPEAL FROM THE DECISION OF THE NLRC:
- appeal by certiorari should be filed with the Court of
Appeals (St. Martin Funerals Home)
ART. 227. COMPROMISE AGREEMENTS
REQUIREMENTS OF A VALID QUITCLAIM:
1. The quitclaim must be voluntarily arrived at by the parties;
2. It must be with the assistance of the Bureau of Labor
Standards, Bureau of Labor Relations of any representative
of the DOLE; and
3. The consideration must be reasonable.
if the compromise agreement was entered into without
the assistance of DOLE, it is valid and binding between the
parties but the parties can still go to the NLRC and
repudiate the agreement.
if the compromise agreement was entered into with the
assistance of DOLE, it shall be final and binding between
the parties, EXCEPT:
a. in case of noncompliance with the compromise
agreement; or
b. if there is prima facie evidence that the settlement
was obtained through fraud, misrepresentation, or
coercion
in such cases, the NLRC of the courts can assume
jurisdiction.
What is a compromise agreement?
It is a contract whereby the parties, by making reciprocal
concessions, avoid litigation or put an end to one already
commenced.
May labor standards violations be settled by compromise?
Yes.
What are the substantial requirements of a compromise
agreement?
The compromise agreement must:
1. Be freely entered into
2. Not be contrary to law, morals or public. policy
3. Be reasonable
4. Be approved by the authority before whom the case is
pending
What are the formal requirements of compromise agreements
involving labor standards cases?
It must be:
1. Reduced into writing
2. Signed in the presence of the RD or his duly authorized
representative.
Note: Although generally, a compromise, once approved by final
orders of the court' has the force of res judicata between the parties
and should not be disturbed except for vices of consent or forgery. A
compromise is basically a contract perfected by mere consent.
Consent is manifested by the meeting of the offer and the
acceptance upon the thing and the cause which are to constitute the
contract. However, a compromise agreement is not valid when a
party in the case has not signed the same or when someone signs
for and in behalf of such party without authority to do so.
What is the distinction between a compromise agreement with
assistance of DOLE and that entered into without assistance of the
same?
1. As to validity and binding effect - the compromise
agreement is valid and binding upon the parties on both
instances.
2. As to repudiation:
a. A compromise agreement entered into without
the assistance of DOLE can be repudiated by the
parties by the going to the Commission.
b. GR: a compromise agreement entered into with
the assistance. of DOLE can no longer be
repudiated, it becomes final and binding upon
the parties upon execution.
c. EXCEPTIONS:
i. In case of non-compliance with the
compromise agreement
ii. If there is prima facie evidence that the
settlement was obtained through fraud,
misrepresentation, or coercion.
May ULP cases be subject to compromise?
No.
Note: Dire necessity is not an acceptable ground for
annulling a compromise agreement, especially since it has
not been shown that the employees had been forced to
execute them
When may compromise be effected?
At any stage of the proceedings and even when there is
already a final and executory judgment. (Art. 2040, Nee)
Can the parties enter into a compromise when the final judgment
is already in the process of execution?
No. It cannot be entered into when the final judgment is
already in the process of execution.
What are the options when compromise agreement is violated?
Two options:
1. Enforce compromise by writ of execution; or
2. Regard it as rescinded and insist upon original demand.
Can there be waiver of reinstatement?
Yes. Like waivers of money claims, a waiver for
reinstatement may be regarded as a personal right which
must be exercised personally by the workers themselves.
Note: Not all waivers and quitclaims are invalid as against
public policy. If the agreement was voluntarily entered into and
represents a reasonable settlement, it is binding on the parties and
may not later be disowned simply because of a change of mind. It is
only where there is clear proof that the waiver was wangled from an
unsuspecting or gullible person, or the terms of settlement are
unconscionable on its face, that the law will step in to annul the
questionable transaction. But where it is shown that the person
making the waiver did so voluntarily, with full understanding of what
he was doing, and the consideration for the quitclaim is credible and
reasonable, the transaction must be recognized as a valid and
binding undertaking, as in this case.
Art. 232. Prohibition on certification election. The Bureau shall not
entertain any petition for certification election or any other action
which may disturb the administration of duly registered existing
collective bargaining agreements affecting the parties except under
Articles 253, 253-A and 256 of this Code. (As amended by Section 15,
Republic Act No. 6715, March 21, 1989
ART. 241. RIGHTS AND CONDITIONS OF MEMBERSHIP IN A LABOR :
ORGANIZATION
What is the nature of the relationship between the union and its
members?
It is fiduciary in nature, and arises out of 2 factors:
1. Degree of dependence of the individual Ee on the union
organization and
2. The comprehensive power vested in the union to the
individual.
What are the rights and conditions of membership in a labor
organization (LO)?
1. Political right
a. Right to vote b.
b. Right to be voted for
Note: Both are subject to lawful provisions on
qualifications and disqualifications
2. Deliberative and decision-making right
a. Right to' participate in deliberations on major
policy questions
b. Right to decide on such major policy questions
by secret ballet
3. Rights over money matters
a. Right against:
i. Excessive fees
ii. Unauthorized collection
iii. Unauthorized disbursements
b. Right to:
i. Require adequate records of income and
expenses
ii. Access financial records
iii. Vote on officer's compensation
iv. Vote on proposed special assessments
v. Deduction of special assessments only
with written authorization from member
4. Right to information - Right to be informed about the
organization's constitution and by-laws and the CSA and
about labor laws
5. Other rights and conditions under Art. 241
a. LOs cannot knowingly admit or continue in
membership any individual who belongs to a
subversive organization er engaged directly or
indirectly in any subversive activity
b. A member who has been convicted for a crime
of moral turpitude (by final judgment) is
ineligible fer election or appointment in the
union
c. Every payment of fees, dues or other
contributions by a member shall be evidenced
by a receipt signed by the officer and entered
into the record of the erganization
d. Every income shall be evidenced by a record
shewing its source. Every expenditure shall be
evidenced by a receipt from the person who
was paid. The receipt shall state the date, place
and purpose of such payment.
When, how and under what conditions does an Ee become a union
member?
It depends on the constitution and by-laws inasmuch as
Art.249 gives a LO the right to prescribe its own rules for acquisition
or retention of membership.
The relationship of the union and members is governed by their
mutual agreement, terms and conditions of which are set forth in
the union's constitution and by-laws and binding on the members as
well as the organization itself. (Oca v. Trajano, G.R. No. 76189, Aug.
8, 1991)
Note: An Ee, whether employed for a definite period or not, shall
beginning on his first day of service, be considered an Ee for
purposes of union membership. (Art. 277)
How are union officers elected?
They are elected directly by the members through secret
balloting. Election takes place at intervals of 5 years which is the
term of office of the union officers including these of a national
union, federation or a trade union center.
Note: What positions to fill up, where and how the election should
be done are matters left by law to the union's constitution and by-
laws or to agreement among the members. Only in the absence
thereof will the IRR of Book V apply.
Who takes part in the election of union officers?
Only members of the union can take part in the election of
union officers. (Art. 241{c])
Who is a member in good standing?
Any person who has:
1. Fulfilled the req'ts for membership in the union, and
2. Not voluntarily withdrawn from membership or
3. Not been expelled or suspended from membership after
appropriate proceedings consistent with the lawful
provisions of the union's constitution and by-laws.
What may be used to determine eligibility to vote?
The question of eligibility to vote may be determined
through the use of the applicable payroll period and Ee's status
during the applicable period - the payroll of the month next
preceding the labor dispute in case of regular Ees and the payroll at
or near the peak of operations in case of Ees in seasonal industries.
(Tancinco v. Pura Ferrer-Calleja, G.R. No. 78131, Jan. 20, 1988)
Note: If none of the contending unions insisted on the use of the
payroll period-list as voting list, the act of the non-union Ees of
joining the election by casting their votes is a clear manifestation of
their intention to join a union. They must therefore be considered
ipso facto union members. Said Ees having exercised their right to
unionism, by joining one of the unions, their decision is paramount.
(Tancinco v, Pura Ferrer-Calleja, G.R. No. 78131, Jan. 20, 1988)
Is it necessary that a union officer be an Ee?
Yes. No qualification req'ts for candidacy to any position shall
be imposed other than membership in good standing in subject LO.
What are the limitations in memberships in unions?
1. The LO cannot compel Ees to become members of the LO
if they are already members of a rival union.
2. The persons enumerated under Art. 241 (e) of the LC are
prohibited from becoming members of a LO.
3. The members of religious organizations whose religion
forbids membership in LOs cannot be compelled into
union membership.
Who are those disqualified to be a union officer?
1. Person who has been convicted of a crime involving moral
turpitude. (Art. 241[f])
2. Any individual who belongs to a subversive organization or
who is engaged indirectly or indirectly in any subversive
activity. (Art. 241{e])
3. Non-employees. (Art. 241{c])
What is a union election protest?
It is a complaint or protest regarding election of union
officers and is treated as an inter/intra-union dispute,
What are union dues?
These are regular monthly contributions paid by the members
to the union in exchange for the benefits given to them by the CSA
and to finance the activities of the union in representing the union.
What is check-off?
It is a method of deducting from an Ee's pay at a
prescribed period, the amounts due the union for fees, fines and
assessments.
Deductions for union service fees are authorized by law
and do not require individual check-off authorizations.
What is the nature and purpose of check-off?
Union dues are the lifeblood of the union.
All unions are authorized to collect reasonable
membership fees, union dues, assessments and fines and other
contributions for labor education and research, mutual death and
hospitalization benefits, welfare fund, strike fund and credit and
cooperative undertakings. (Art. 277[a])
What are the requisites of a valid checkoff?
GR: No special assessments, atty's fees, negotiation fees or
any other extraordinary fees may be checked off from any amount
due to an employee (Ee) without individual written authorization
duly signed by the Ee.
The authorization should specifically state the:
1. Amount
2. Purpose &
3. Beneficiary of the deduction.
XPN:
1. For mandatory activities under the LC
2. For agency fees 3. When non-members of the union avail
of the benefits of the CBA:
a. Non-members may be assessed union dues
equivalent to that paid by union members;
b. Only by board resolution approved by majority of the
members in general meeting called for the purpose.
What is an agency fee?
It is an amount equivalent to union dues, which a non-
union member pays to the union because he benefits from the CBA
negotiated by the union.
Note: Agency fee cannot be imposed on Ees already in the service
and are members of another union. If a closed shop agreement
cannot be applied to them, neither mayan agency fee, as a lesser
form of union security, be imposed to them. Payment by non-union
members of agency fees does not amount to an unjust enrichment
basically the purpose of such dues is to avoid discrimination
between union and non-union members.
Distinguish union dues from agency fees.
What are special assessments or extraordinary fees?
These are assessments for any purpose or object other
than those expressly provided by the labor organization's
constitution and bylaws.
What are the requisites for a valid levy of special assessment or
extraordinary fees?
1. Authorization by a written resolution of the majority of all
members at the general membership meeting duly called
for that purpose;
2. Secretary's record of the minutes of the meeting, which
must include the:
a. List of members present
b. Votes cast
c. Purpose of the special assessments d. Recipient of
such assessments;
3. Individual written authorization to check-off duly signed by
the Ee concerned to levy such assessments.
What is the effect of failure to strictly comply the req'ts set by law?
It shall invalidate the questioned special assessments.
Substantial compliance of the requirements is not enough in view of
the fact that the special assessment will diminish the compensation
of union members. (Palacol v. Ferrer-Calleja, GR. No. 85333, Feb. 26,
1990)
Who has jurisdiction over check-off disputes?
Being an intra-union dispute, the Regional Director of
DOLE has jurisdiction over check off disputes
Distinguish check-off from special assessments ART. 242. RIGHTS OF LEGITIMATE, LABOR ORGANIZATIONS

What are the rights of legitimate labor organizations (LLOs)?

A LLO shall have the right to:
1. Act as the exclusive representatives of its members
2. Represent union members
3. Be furnished by the Er with its annual audited financial
statements
4. Own properties
5. Sue and be sued in its registered name
6. Undertake all other activities for the benefit of members
7. Be exempted from taxes

When will the financial statements be given to the union?

1. After the union has been recognized by the Er as the sole
bargaining representative of the Ees in the bargaining unit
2. After the union is certified by DOLE as such sale bargaining
representative.
3. Written request from the union
4. Within the last 60 days of the life of a CBA.
5. During the collective bargaining negotiation

Do unions have the right to collect fees?

Yes, the right to collect fees is recognized in Art. 277(a)
and discussed under Art. 241 of the LC.

Note: Individual written authorization is not necessary for the

collection of agency fees.

Are Ees who are members of another union considered free riders?
No. When the union bids to become the bargaining agent,
it voluntarily assumes the responsibility of representing all the Ees.

REMEDIES FOR VIOLATIONS.OF RIGHTS

Who reports complaint for violation rights of union members?

GR: Complaint for violation of right must be reported by at
least 30% of the union members.
XPN: When the violation directly affects only one or two
members, then only one or two members can report such violation.

What is the consequence of violation of such rights?

Expulsion of the culpable officers.

What are remedies for violation of rights and conditions of

membership?
As to impeachment of a union officer, as per reference to
the union's constitution and by-laws (CBL):
1. Impeachment must be initiated by a petition Signed
by at least 30% of all bona fide members of the union
and addressed to the chairman of the Executive
Board;
2. A general membership meeting shall be convened by
the Board Chairman to consider the impeachment of
an officer;
3. Before the impeachment is finally taken, the union
officer against whom the impeachment charges have
been filed shall be given ample opportunity to defend
himself; and
4. A majority of all members of the union shall be
required to impeach or recall union officers.

Note: Despite the practical difficulties in complying with the

procedure, petitioners should show substantial compliance' with
said impeachment procedure, by giving the union officer ample
opportunity to defend himself, as contrasted to an outright
impeachment, right after he failed to appear before the first and
only investigation scheduled.

Is the 30% support of union membership mandatory for filing of a

complaint regarding a violation of the rights and conditions of
membership?
No. The fact that the word "may" was used in the LC
negates the presumption that such is mandatory. It clearly shows
that the said req't is permissive in nature.