PART I – JURISDICTION OVER LABOR DISPUTES

* existence of employer-employee relationship is necessary for labor tribunal to assume

jurisdiction over a dispute p. 3

* no particular form of evidence is required to prove existence of employer-employee

relationship p. 4

* relationship between taxi-driver and owner of unit in a boundary system is one of

employer-employee p. 4

* requirement imposed upon insurance underwriters to solicit business exclusively for

only one company is not considered control as to vest an employer-employee relationship
between the parties p. 5

* employment status is defined by law, not by what the parties say so in the contract p. 8

* commission may be paid to an employee or a non-employee p. 9

* payment of commission does not necessarily militate against existence of an employer-

employee relationship p. 9

* professors and instructors under contract to teach courses are employees, not
independent contractors p. 15

* no employer-employee relationship between hospital and medical consultants p. 15

* no employer-employee relationship exists between working scholar or student and a

school p. 15

* where no employer-employee relationship exists between the parties, the controversy

belongs to the jurisdiction of the regular courts p. 15

* not every dispute between an employer and employee falls within the limited
jurisdiction of labor arbiters and the NLRC p.18

* where the issue is enforcement of a contract calling for an upward adjustment of

contract rate pursuant to a wage order, jurisdiction over the claim of security agency
against the client is with the regular court p. 19

* intracorporate matters belong to the jurisdiction of the SEC, (NOW THE RTC under
RA 8799) not the labor arbiter nor the NLRC p. 19

* power to hear and decide labor disputes by the labor arbiter and the NLRC is deemed
suspended when the SEC (now RTC) puts a corporation under rehabilitation p. 21

* labor arbiter has no jurisdiction over the dismissal of a corporate officer, it being an
intracorporate controversy p. 23

* dismissal or non-appointment of a corporate officer is clearly an intracorporate matter

p. 26
* action for damages for breach of trust must be brought before the regular courts, not the
NLRC, even if the same arose out of a labor case p. 26

* although retired, employee still retains his stays for the purpose of prosecuting his
unpaid retirement and other benefits claim p. 27

* statute in force at the time of commencement of action determines jurisdiction p. 29

* pleas or theories set up by defendant or respondent in his answer or motion to dismiss

do not affect jurisdiction over the subject-matter p. 30

* to be bound by a decision, a party should first be subject to the court’s jurisdiction p.

32

* case should not be dismissed for lack of jurisdiction due to improper service of
summons; subsequent proper service of alias summons on the amended complaint is
considered substantial compliance p. 34

* jurisdiction over the subject matter is conferred by law, not by agreement of the parties
p. 37

* estoppel by laches as a defense at equity cannot prosper vis-à-vis right based on law p.
38

* jurisdiction is vested in the court, not in the judge p. 38

* the law in force at the time of the commencement of the action determines jurisdiction
p. 38

* prospective principle of law applies to judicial decisions and administrative rulings and
circulars p. 41

* in case of conflict, substantive law prevails over procedural law p. 41

* jurisdiction over main case carries with it jurisdiction over collateral matters p. 42

* lack of jurisdiction may be taken cognizance motu propio on appeal p. 43

* laches as exception to the rule that jurisdiction over the subject-matter may be raised at
any stage of the proceeding p. 43

PART II – PROCESS AND PROCEDURE IN LITIGATING LABOR DISPUTES

IN THE NLRC

* procedure in adjudicating labor cases is prescribed by law p. 45

* NLRC Rules govern the hearing and disposition of cases before the Commission and
the RABs p. 46

* NLRC Rules have the force and effect of law p. 46

* litigations are to be decided on their merits and not on technicalities p. 46

* right to due process means right to a “day in court” p. 47

* denial of the opportunity to be heard, not denial of the right to be heard, constitutes
violation of due process of the law p. 47

* due process protects everybody: whether Filipino citizen or alien, whether natural or
juridical p. 50

* after being heard and resolved, a case may be reopened only on the ground of lack of
due process p. 51

* strict observance of rules is indispensable to the prevention of needless delays and for
orderly and speedy discharge of judicial business p. 51

* unsigned pleadings produces no legal effect p. 55

* certificate of non-forum shopping is mandatory in labor cases but substantial

compliance may be considered sufficient p. 56

* defense of litis pendentia as bar to the other case p. 57

* if a party has more than one cause of action against the other party arising out of the
same relationship, he shall include all of them in one complaint or petition p. 58

* indispensable parties shall be joined either as plaintiff or defendant p. 59

* right of legitimate labor union to file representative suit for and in behalf of its
members p. 63

* service of pleadings and other papers must be done personally p. 70

* acts performed by lawyer are binding on his client p. 73

* client is bound by the action of counsel in the conduct of his case p. 74

* all cases over which labor arbiters have authority to hear and decide may be filed in the
RAB having jurisdiction over the workplace or complainant p. 74

* venue in labor cases is permissive in character p. 75

* failing to confront and cross examine complainant is not part of respondent’s right to
due process p. 78

* labor arbiter enjoys wide discretion in determining whether there is a need for hearing
or clarificatory conference p. 81

* before labor arbiter, hearing is a position paper proceeding p. 81

* holding of trial is discretionary on the labor arbiter and cannot be demanded as a matter
of right by the parties p. 81
* failure to submit position paper on time is not a ground to strike out position paper from
records nor to dismiss complaint p. 82

* in quasi-judicial bodies, substantial evidence is required p. 86

* substantial evidence is required to support a finding or conclusion in labor cases p. 86

* burden of proof in termination cases involving Filipino OCWs to show just and valid
cause rests upon the foreign-based employer and the employment agency p. 87

* in a suit for illegal dismissal, employee is not required to prove his innocence of the
charges leveled against him p. 88

* in termination cases, burden of proof rests with the employer p. 90

* in labor cases, non-payment of labor standard benefit is a negative allegation; burden of

proof rests with the employer p. 90

* best proof of payment is a receipt, not a voucher p. 91

* notarial document is accorded presumption of regularity p. 91

* obligation to pay attorney’s fees arising from collective bargaining negotiations belongs
to the union and not to the employee-members p. 94

* failure to state in the complaint the claims for damages and attorney’s fees does not bar
recovery thereof if the same are alleged in the position paper p. 94

* awarding moral damages must not be excessive p. 96

* moral damages cannot be awarded to a corporation because it is an artificial person p.

96

* in the scale of social justice, in case of doubt in the conflicting interests between labor
and capital, the same shall be resolved in favor of the underprivileged worker p. 98

* no judge is infallible in his judgment p. 99

* judges are not liable for mere errors of judgment p. 99

* labor dispute decisions should help heal fractured relationship between labor and
management p. 99

* no motion for reconsideration shall be allowed from a decision or order of a labor

arbiter p. 99

* labor arbiter has the authority to issue writ of execution on the reinstatement aspect of
the decision p. 100

* unjustified refusal of employer to reinstate an illegally dismissed employee entitles the

latter to payment of salary p. 102
* the remedy of an appeal is only a statutory privilege p. 104

* labor arbiter’s decision, order or award must be appealed to the NLRC, not SC p. 106

* appeal from a decision of the NLRC to the Secretary of Labor abolished by P.D. No.
1391 p. 106

* interlocutory judgments or orders are not appealable p. 106

* judgment rendered in accordance with compromise agreement is immediately

executory as there is no appeal therefrom; exception p. 107

* an order of dismissal is appealable, not being interlocutory p. 107

* order of execution of final and executory judgment is not appealable p. 107

* NLRC Commission has exclusive appellate jurisdiction over all cases decided by the
labor arbiter p. 108

* RA 6715 divested NLRC Commission en banc of adjudicatory powers p. 108

* cases appealed to the appropriate division of the NLRC are vested in the division, not in
the individual Commissioners p. 108

* authority to dismiss an appeal on the ground that it is frivolous p. 110

* manner and period prescribed by law to perfect an appeal are both mandatory and
jurisdictional p. 110

* belated filing of appeals done only on grounds of equity to serve demands of substantial
justice p. 111

* appeal is not a Constitutional right but only a statutory privilege p. 112

* rule on certification on non-forum shopping is a valid exercise of NLRC’s rule-making

powers p. 113

* requirement on certification on non-forum shopping applies to the NLRC being a quasi-

judicial agency p. 113

* certification of non-forum shopping must be filed together with peitition p. 115

* requirement on non-forum shopping makes no distinction whether appellant is a natural

or juridical person p. 116

* all parties/petitioners must sign certification on non-forum shopping p. 116

* when appellant is a corporation, certification should be signed by a duly authorized

person by way of board resolution p. 117
* certificate of non-forum shopping is mandatory in labor cases but substantial
compliance may be considered sufficient p. 118

* more prudent course of action is for courts to excuse a technical lapse and afford parties
a review of the case on its merits to attain ends of justice p. 119

* right to appeal may be waived p. 123

* right to appeal is not part of due process p. 124

* evidence may be considered even if presented for the first time on appeal p. 124

* however, a reasonless violation of the NLRC Rules cannot be sanctioned p. 125

* posting of appeal bond and submission of joint declaration on its genuineness are
mandatory p. 125

* failure to post appeal bond on time renders the appeal dismissible on the ground of non-
perfection p. 125

* property bond deemed substitute for cash or surety appeal bond p. 126

* changing theory on appeal is outlawed as it deprives the other party of his day in court
p. 126

* dismissal of appeal purely on technical grounds frowned upon p. 127

* mere letter expressing dismay over the judgment of the labor arbiter is not valid appeal
p. 127

* findings of fact of labor arbiters are accorded respect and finality – if supported by
substantial evidence p. 127

* Labor Code has fixed the reglementary period to perfect an appeal p. 128

* in the interest of due process and substantial justice, an appeal was allowed even if filed
beyond the 10-day reglementary period to perfect an appeal p. 128

* reply/opposition to appeal cannot take the place of an appeal p. 129

* with respect to certificates of time deposit issued by commercial banks in practice, the
same is accepted by the NLRC provided there is a deed of assignment/commitment from
the appellant and the bank itself that the proceeds of the bank deposit shall answer for
whatever judgment that may be finally awarded to the complainant and that the same will
not be released except upon orders of the commission, and the corresponding passbook is
surrendered to the RAB or Commission, as the case may be p. 130

* LBP bonds issued by the government to owners of lands sold under the Comprehensive
Aagrarian Reform Law are not acceptable as substitute for the required cash or surety
bonds to perfect an appeal in labor cases p. 131
* property bond may, however, be admitted as substitute for cash or surety bond to
perfect an appeal in labor cases p. 131

* cooperatives are exempt from the requirement to post an appeal bond for the perfection
of their appeal p. 132

* consultation with other commissioners is mandatory p. 140

* technical rules yield to due process p. 140

* decision based on unsubstantiated claim cannot stand as it will offend due process p.
142

* to correct an error or mistake in judgment is an inherent power of the

Commission/court p. 142

* motion for reconsideration should be seasonably filed as a precondition to pursue any

further remedy p. 143

* for failure to take an appeal, the decision is rendered final and executory p. 144

* losing party can no longer assail propriety of a decision that has become final p. 146

* filing of petition for certiorari with the CA or SC shall not stay execution of final
judgment p. 151

* final and executory judgments are immutable p. 152

* once decision attains finality, same is removed from the jurisdiction of the labor court
p. 152

* a judgment that has attained finality becomes the law of the case

* remanded cases must be re-docketed and given a special number p. 154

* once judgment becomes final, execution follows p. 155

* final and executory judgment can no longer be altered p. 155

* order of execution of final and executory judgment is not appealable p. 155

* a final and executoty judgment is binding and conclusive upon the parties and their
privies on the grounds of res judicata, hence, immutable p. 155

* final and executory judgments can no longer be modified even if purpose is to correct
erroneous conclusions of fact or law p. 157

* ambiguity caused by omission or mistake in the dispositive portion, court may issue
clarification p. 157

* party cannot be allowed to present evidence to show final judgment is erroneous p. 159
* special civil action for certiorari shall not interrupt the course of the principal case p.
161

* prescription or laches shall not apply if it defeats justice or perpetrates fraud and
injustice p. 162

* mere pendency of petition for certiorari does not stay execution of a final and executory
NLRC decision p. 163

* petitions for certiorari under Rule 65 Rules of Court are now to be initially filed with
the CA p. 164

* NLRC decisions, orders and awards are now appealable on certiorari to the CA initially
under the doctrine of hierarchy of courts p. 164

* Revised 1997 Rules of Civil Procedure has fixed a period of 60 days to file petition for
certiorari under Rule 65 from notice of judgment, order or resolution p. 166

* decisions of voluntary arbitrators are now appealable to the CA, no longer to be

reviewed by the SC p. 167

* failure to file motion for reconsideration to the decision of the NLRC is a fatal
procedural defect p. 167

* lower courts cannot rise higher than their source p. 167

* a lower court cannot therefore reverse a final ruling of the Highest Court of the land.
For lower courts to invalidate a final and executory decision of the SC would be rank
absurdity abhorrent to the guaranty of stability of the law p. 169

* only decisions of the SC form part of the law of the land p. 169

* special civil action for certiorari under Rule 65 is the initial step for review by the CA
of NLRC decisions p. 171

* certiorari cannot be a substitute for the lapsed remedy of an appeal p. 172

* motion for reconsideration necessary before recourse to certiorari p. 173

* general rule is that a motion for reconsideration is necessary before appealing by

certiorari under Rule 65, a decision by the NLRC to the CA, exception is when it is an
exercise in futility p. 173

* right to seek a writ of certiorari from the courts is not a natural right nor part of due
process p. 174

* execution of judgment is the final stage of litigation p. 179

* an execution sale without the valid levy and notice of sale is null and void and vests no
title in the purchaser p. 180

* judgment debtor has the option to choose which property should be levied first p. 190
* sheriff cannot enter into a compromise with judgment debtor p. 193

* supersedeas or appeal bond from an employer-appellant is not anymore required for an

appeal from an order enforcing a final and executory decision p. 193