Procedure and

Jurisdiction
Labor Law Review

Labor Arbiter

 JURISDICTION
Except as otherwise provided under the Code the Labor
Arbiters shall original and exclusive jurisdiction to hear
and decide:
1. Unfair labor practices; (when there is union or cba)
2. Termination disputes;(purpose and authorized)
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; (labor
standards)
4. Claims for actual, moral, exemplary and other forms of
damages arising from the employer-employee relations;
(civil)
5. Cases arising from any violation of Art. 264 of this Code,
including questions involving the legality of strikes and
lockouts;
6. Except claims for Employees Compensation, Social
Security/PHILHEALTH, 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)
regardless of whether accompanied with a claim for
reinstatement (Art. 217) (kasambahay law)

 JURISDICTION.
7. Money claims arising out of employer-employee
relationship or by virtue of any law or contract, involving
claims for actual, moral, exemplary and other forms of
damages, as well as employment termination of OFWs;
8. Wage distortion disputes in unorganized
establishments not voluntarily settled by the parties (Art.
124);
9. Enforcement of compromise agreements when there is
non-compliance by any of the parties (Art. 227);
10. Other cases as may be provided by law.

Exclusive and Original Jurisdiction subject to

Articles 261 and 262.
CIR Court of Industrial Relations

Jurisdiction on Money Claims

(Labor Arbiter vs. Regional
Director)
A money claim arising from employeremployee
relations,
except
SSS,
ECC/Medicare
claims,
is
within
the
jurisdiction of a labor arbiter if:
The claim, regardless of amount, is accompanied with a
claim of reinstatement; or
The claim exceeds P5000, whether or not there is a
claim for reinstatement.

The Regional Director has jurisdiction if:

The money claim is not accompanied by reinstatement;
and
The claim does not exceed P5000.

Note that:
The money claim must arise from law or contracts other than
CBA;
Money arising from an implementation of the CBA-Voluntary
Arbitrator or Panel of Voluntary Arbitrators have jurisdiction;
Money claims which does not arise from ER-EE relations
Regular Courts have jurisdiction;
Nature of Proceeding: Non-litigious. The Labor Arbiter is not
bound by the technical rules of procedure;
The Labor Arbiter shall use every and all reasonable means to
ascertain the facts in each speedily and objectively;
Employer-employee relationship is a jurisdictional requisite,
absent or which, the NLRC has no jurisdiction to hear and
decide the case;
Venue: Regional Arbitration Branch (RAB) having jurisdiction
over the workplace of the complainant or petitioner;
Workplace: place or locality where the employee is regularly
assigned at the time the cause of action arose;
In the case of field employees, ambulant or itinerant workers,
their workplace is:

Where they are regularly assigned;

Some Rules on Venue

Exclusion. Where 2 or more Regional Arbitration Branches
have jurisdiction over the workplace of the complainant,
that first which acquired jurisdiction over the case shall
exclude others;
Waiver. When venue is not objected to before the filing of
position papers, such issue shall be deemed waived;
Transfer. Venue of an action may be transferred to a
different Regional Arbitration Branch upon written
agreement of the parties or upon order of the LA in
meritorious cases and on motion of the proper party;
OFW Cases. Cases involving overseas Filipino workers may
be filed before the RAB having jurisdiction over the place
where the complainant resides or where the principal office
of any of the respondents is situated.

Reinstatement Pending
Appeal
The appeal should
reglementary period;

be

filed

within

the

The Memorandum of Appeal should be under

oath;
The appeal fee should be paid;
There should be posting of cash or surety bond, if
judgment involves monetary award; and
There should be proof of service to the adverse
party.

NATIONAL LABOR
RELATIONS COMMISSION
(NLRC)

Jurisdiction
NLRC Divisions
Original Jurisdiction: Over petition for
injunction or temporary restraining
order under Art. 218 (e).
Exclusive Appellate Jurisdiction: over all
cases decided by labor arbiters (Art.
217 (b)) and the DOLE regional
directors under Art. 129.

Period of Appeal
(2005 NLRC Rules of
Procedure
From Labor Arbiter to NLRC: Decisions and
resolutions of the Labor Arbiter shall be final and
executory unless appealed to the Commission by
any or both parties within ten (10) calendar days
from receipt thereof;
From Regional Director to NLRC pursuant to Art.
129: Decisions and resolutions of the Regional
Director shall be final and executory unless
appealed within 5 days from receipt thereof.

Note: If the 5th or 10th day falls on a Saturday,

Sunday, or holiday, the last day shall be the next
working day.

Grounds of Appeal
If there is prima facie evidence of abuse of
discretion on the part of the Labor Arbiter or
Regional Director;
If the decision, resolution or order was secured
through fraud or coercion, including graft and
corruption;
If made purely on questions of law; and/or
If serious errors in the findings of fact are raised
which, if not corrected, would cause grave or
irreparable injury to the appellant.

Effect of NLRC Reversal of

Labor Arbiters Order of
Reinstatement
Even if the order of reinstatement of the Labor
Arbiter is reversed on appeal, it is obligatory on the
part of the employer to reinstate and pay the wages
of the dismissed employee during the period of
appeal until reversal by the higher court.
On the other hand, if the employee has been
reinstated during the appeal period and such
reinstatement order is reversed with finality, the
employee is not required to reimburse whatever
salary he received for he is entitled to such, more so
if he actually rendered services during the period.
(Garcia v. Philippine Airlines, Inc, 2009)

REMEDIES
REQUISITES FOR PERFECTION OF APPEAL TO THE
COURT OF APPEALS (RULE 43)
The appeal shall be:
Filed within the reglementary period;
Verified by the appellant himself in accordance with Section 4,
Rule 7 of the Rules of Court;
In the form of a memorandum of appeal which shall state the
grounds relied upon and the arguments in support thereof,
the relief prayed for, and with a statement of the date the
appellant received the appealed decision, resolution or order;
In three (3) legibly typewritten or printed copies; and
Accompanied by
a.

Proof of payment of the required appeal fee;

b.

Posting of a cash or surety bond as provided in Section 6 of the

2005 NLRC Rules;

c.

A certificate of non-forum shopping; and

d.

Proof of service upon the other parties.

Remedies.
A mere notice of appeal without complying with the other
requisites aforestated shall not stop the running of the period
for perfecting an appeal;
The appellee may file with the Regional Arbitration Branch or
Regional Office where the appeal was filed, his answer or reply
to appellants memorandum of appeal, not later than 10
calendar days from receipt thereof. Failure on the part of the
appellee who was properly furnished with a copy of the appeal
to file his answer or reply within the said period may be
construed as a waiver on his part to file the same;
Subject to the provisions of Art. 218 of the Labor Code, once
the appeal is perfected in accordance with these Rules, the
Commission shall limit itself to reviewing and deciding only the
specific issues that were elevated on appeal.

Certified Cases:
Definition: Certified labor disputes are cases certified to
the Commission for compulsory arbitration under Art. 263
(g) of the Labor Code. [Sec. 2, The 2011 NLRC Rules and
Procedures].
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 of lockout as
specified in the assumption or certification order (Art. 263).

FUNCTION OF THE NLRC

When sitting in a compulsory arbitration certified to by the
Secretary of Labor, the NLRC is not sitting as a judicial court
but as an administrative body charged with the duty to
implement the order of the Secretary.
Its function only is to formulate the terms and conditions of the
CBA and cannot go beyond the scope of the order.
Moreover, the Commission is further tasked to act with the
earliest time possible and with the end in view that its action
would not only serve the interests of the parties alone, but
would also have favorable implications to the community and
to the legislative body in enacting Art. 263 par. G of the Labor
Code, as amended by Section 27 or RA 6175 (Union of Filipino
Employees v. NLRC, 1990)

Effects of Certification
Upon certification, the intended or impending strike or
lockout is automatically enjoined, notwithstanding the
filing of any motion for reconsideration of the
certification order nor the non-resolution of any such
motion which may have been duly submitted to the
Office of the Secretary of Labor and Employment;
If a work stoppage has already taken place at the time
of the 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;

Effects.
All cases between the same parties, except where the
certification order specifies otherwise the issues
submitted for arbitration which are already filed or may
be filed, and are relevant to or are proper incidents of
the certified case, shall be considered subsumed or
absorbed by the certified case, and shall be decided by
the appropriate Division of the Commisision;
The parties to a certified case, under pain of contempt,
shall inform their counsels and the Division concerned
of all cases pending with the Regional Arbitration
Branches and the Voluntary Arbitrators relative or
incident to the certified case before it;

Effects
When a certified labor dispute involves a business
entity with several workplaces located in different
regions, the Division having territorial jurisdiction
over the principal office of the company shall
acquire jurisdiction to decide such labor dispute;
unless the certification order provides otherwise.
(Section 3, 2011 NLRC Rules and Procedures)

Effects of Defiance
Non-compliance with the certification order of the SOLE shall be considered
as an illegal act committed in the course of the strike or lockout and shall
authorize the Commission to enforce the same under pain of immediate
disciplinary action, including dismissal or loss of employment status or
payment by the locking-out employer of backwages, damages and/or other
affirmative relief, even criminal prosecution against the liable parties.
The Commission may also seek the assistance of law enforcement agencies
to ensure compliance and enforcement of its order and resolutions (Sec. 4,
2011 NLRC Rules and Procedures)
The Secretarys assumption and certification orders being executory in
character are to be strictly complied with by the parties even during the
pendency of a petition questioning their validity for this extraordinary
authority given by law to the Secretary of Labor is aimed at arriving at a
peaceful and speedy solution to labor disputes, without jeopardizing
national interests. (Union of Filipino Employees vs. Nestle Philippines, 1990)

Procedure in certified
cases
When there is no need to conduct a clarificatory hearing, the
Commission shall resolve all certified cases within 30 calendar days
from receipt by the assigned Commissioner of the complete records,
which shall include the position papers of the parties and the order
of the SOLE denying the motion for reconsideration of the
certification order, if any;
Where a clarificatory hearing is needed, the Commission shall,
within 5 calendar days from receipt of the records, issue a notice to
be served on the parties through the fastest means available,
requiring them to appear and submit additional evidence, if any. All
certified cases shall be resolved by the Commission within 60 days
from receipt of the complete records by the assigned Commissioner;
No motion for extension or postponement shall be entertained. (Sec.
5, 2011 NLRC Rules and Procedures)

Extension of Judgment
Upon issuance of the entry of judgment, the
Commission motu propio or upon motion by
the proper party, may cause the execution of
the judgment in the certified case. (Sec. 6,
2011 NLRC Rules and Procedures)

BUREAU OF LABOR
RELATIONS (BLR) MED
ARBITERS

Jurisdiction
(Original and Appellate)
The Bureau of Labor Relations and the Labor Relations
Divisions in the regional offices of the Department of Labor
and Employment 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
labor-management 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. (Art. 226)
The Bureau shall have 15 days to act on labor cases before
it, subject to extension by agreement of the parties.

Appellate Jurisdiction
BLR has the power to review the decision of
the Regional Director;
Decisions rendered through its appellate
power are final and executory. Hence, the
remedy of the aggrieved party is to
seasonably avail of the special civil action of
certiorari under Rule 65 of the Rules of Court.

NATIONAL CONCILIATION
AND MEDIATION BOARD
(NCMB)

Nature of the Proceedings

Conciliation
and
mediation
is
nonlitigious/non-adversarial, less expensive, and
expeditious. Under this informal set-up, the
parties find it more expedient to fully
ventilate their respective positions without
running around with legal technicalities and,
in the course thereof, afford them wider
latitude of possible approaches to the
problem.

Conciliation vs. Mediation

Conciliation a mild form of intervention by a neutral third
party, the Conciliator-Mediator, relying on his persuasive
expertise, takes an active role in assisting parties by trying
to keep disputants talking, facilitating other procedural
niceties, carrying messages back and forth between the
parties, and generally being a good fellow who tries to
keep things calm and forward-looking in a tense situation.
Mediation a mild intervention by a neutral third party, the
Conciliator-Mediator, wherein the CM advises the parties or
offers solutions or alternatives to the problems with the
end in view of assisting them towards voluntarily reaching
their own mutually acceptable settlement of the dispute.

Preventive Mediation
Preventive mediation case refers to 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 through amicable settlement.

DEPARTMENT OF LABOR
AND EMPLOYMENT (DOLE)
DIRECTORS

JURISDICTION
Small money claims
Art. 129. Recovery of wages, simple money claims and other
benefits. Upon complaint of any interested party, the Regional
Director of the Department of Labor and Employment or any of
the duly authorized hearing officers of the Department is
empowered, through summary proceeding and after due notice,
to hear and decide any matter involving the recovery of wages
and other monetary claims and benefits, including legal interest,
owing to an employee or person employed in domestic or
household service or househelper under this Code, arising from
employer-employee relations:
Provided, that such complaint does not include a claim for
reinstatement: provided, further, that the aggregate money
claims of each employee or househelper do not exceed P5,000.

Jurisdiction
The Regional Director or hearing officer shall decide or
resolve the complaint within 30 days from the date of the
filing of the same.
Any sum thus recovered on behalf of any employee or
househelper pursuant to this Article shall be held in a special
deposit account by, and shall be paid, on order of the
Secretary of Labor and Employment (SOLE) or the Regional
Director directly to the employee or househelper concerned;
Any such sum not paid to the employee or househelper,
because he cannot be locate after diligent and reasonable
effort to locate him within a period of 3 years, shall be held
as a special fund of the Department of Labor and
Employment to be used exclusively for the amelioration and
benefit of workers.

Jurisdiction
The
SOLE
or
his
duly
authorized
representative may supervise the payment of
unpaid wages and other monetary claims and
benefits, including legal interest, found owing
to any employee or househelper under this
Code

DOLE SECRETARY
Visitorial and Enforcement Powers
The
SOLE
or
his
duly
authorized
representatives, including labor regulation
officers, shall have access to employers
records;
The
SOLE
or
his
duly
authorized
representatives, may, at any time, inspect the
premises, books of accounts and records;
The SOLE or his duly authorized representative
is hereby empowered to inquire into the
financial
activities
of
legitimate
labor
organizations

POWER TO SUSPEND
EFFECTS OF TERMINATION
The Secretary of the DOLE may suspend the
effects of the termination pending resolution
of the dispute in the event of a prima facie
finding by the appropriate official of the
Department of Labor and Employment before
whom such dispute is pending that the
termination may cause a serious labor
dispute or is in the implementation of a mass
lay-off (Article 27 (b))

Assumption of Jurisdiction
When in his opinion, there exist a labor
dispute causing or likely to cause a strike or
lockout in an industry indispensable to the
national interest, the SOLE may assume
jurisdiction over the dispute and decide it or
certify the same to the Commission for
compulsory arbitration. (Art. 263)

Appellate Jurisdiction
Orders issued by the duly authorized representative of
the SOLE under Art. 128 may be appealed to the latter;
Denial of application for union registration or
cancellation of union registration originally rendered by
the BLR may be appealed to the SOLE (if originally
rendered by the Regional Office, appeal should by
made to the BLR);
Decisions of the Med-Arbiter in certification election
cases are appealable to the SOLE (decisions of medarbiters in intra-union disputes are appealable to the
BLR) Art. 259

Voluntary Arbitration
Powers
Before or at any stage of the compulsory
arbitration process, the parties may opt to
submit their dispute to voluntary arbitration;
The Secretary of Labor and Employment, xxx
shall decide or resolve the dispute xxx. (Art.
263, LC)

GRIEVANCE MACHINERY
AND VOLUNTARY
ARBITRATORS

Subject Matter of
Grievance
GRIEVANCE is any question by either the
Employer or the union regarding the
interpretation or application of the CBA or
company personnel policies or any claim by
either party that the other party is violation
any provisions of the CBA or company;
It is a complaint or dissatisfaction arising from
the interpretation of implementation of the
CBA and those arising from interpretation or
enforcement of personnel policies.

Grievance Machinery
It refers to the mechanism for the adjusment
and resolution of grievances. It is part of the
continuing process of collective bargaining

Voluntary Arbitrator
Jurisdiction
Exclusive
and
original
jurisdiction
over
grievances The VA or panel of Vas shall have
original and exclusive jurisdiction to hear and
decide all unresolved grievances.
Violations of the CBA, except those which are
gross in character, shall no longer be treated as
ULP and shall be resolved as grievances under
the CBA;
Note: Gross violations of CBA shall mean
flagrant and/or malicious refusal to comply with
the economic provisions of such agreement.

Other labor disputes

The VA or panel of Vas, upon agreement of
the parties, shall also hear and decide all
other labor disputes including ULP and
bargain deadlocks (Art. 262, LC)

Procedure (Rule XI, Book V of the

IRR)
Hearing;
Days to render an award/decision -20 calendar days
from the date of submission of the dispute to
voluntary arbitration;
Form of award/decision clear, concise and definite
terms;
Finality final and executory after 10 days from
receipt of award or decision;
Execution of award upon motion of interested party

 Court of Appeals
Sections 1, 2 & 3, Rule 65 of Rules of
Court;

Supreme Court
Section 9 of BP No. 129
Rule 45, Rules of Court

Prescription of Actions
No claim for compensation shall be given due
course unless said claim is filed with the
System within 3 years from the time the cause
of action accrued. (Art. 201, as amended by
Section 5, PD No. 1921);
Money claims 3 years;
Illegal dismissal 4 years;
Unfair labor practices 3 years;
Offenses penalized by the LC and IRR issued
pursuant thereto 3 years;
Illegal recruitment cases 5 years

ANG TIBAY vs. CIR & National Labor Union, Inc.

Gr. No. L-46496
February 27, 1940
Facts:
Toribio claimed to have laid off workers due to the shortage of leather soles
in the Ang Tibay factory. The Court of Industrial Relations forwarded an MR
with the SC. In pursuit of a retrial in the Court of Industrial Relations, the
national labor union, the respondent, averred:

The shortage of soles has no factual basis;

The scheme was to prevent the forfeiture of his bond to cover the breach of
obligation with the Army;
The letter he sent to the army was part of this scheme;
The company union was an employer dominated one;
Laborers rights to CBA is indispensable;
Civil Code shouldnt be used to interpret a legislation of American industrial
origins;
Toribio was guilty of ULP for favoring his union;
Exhibits are inaccessible to respondents;
The exhibits can reverse the judgment.

ANG TIBAY vs. CIR & National Labor Union, Inc.

Gr. No. L-46496
February 27, 1940
Issue:
Is the Court of Industrial Relations the proper venue for the
trial?

Held:
Yes. Case remanded to the CIR.

Ratio:
There was no substantial evidence that the exclusion of the 89
laborers was due to their union affiliation or activity. The
nature of the CIR is that of an administrative court with judicial
and quasi-judicial functions for the purpose of settling disputes
and relations between employers and employees. It cas appeal
to voluntary arbitration for dispute. It can also examine the
industries in a locality by order of the president.

ANG TIBAY vs. CIR & National Labor Union, Inc.

Gr. No. L-46496
February 27, 1940

Ratio:
There is a mingling of executive and judicial functions,
which constitutes a departure from the separation of
powers.
The CIR is not narrowly constrained by
technical rules of procedure, and is not bound by
technical rules of legal procedure. It may also include
any matter necessary for solving the dispute.
The fact, however, that the CIR may be said to be free
from the rigidity of certain procedural requirements
does not mean that it can, in justifiable cases before it,
entirely ignore or disregard the fundamental and
essential requirements of due process in trials and
investigations of an administrative character.

ANG TIBAY vs. CIR & National Labor Union, Inc.

Gr. No. L-46496
February 27, 1940
Ratio:
Some examples that it must follow are:

Right to a hearing;

Consideration of evidence by the court;

Duty to deliberate implies a necessity which cannot be disregarded,

namely, that of having something to support it is a nullity, a place
when directly attached;

Substance of evidence and the non-binding aspect of judicial

decisions in an admin court so as to free them from technical rules;

The decisions must be rendered at the evidence presented at the

hearing. The court may also delegate some powers to other
judicial bodies;

The court must act on its own decision at reaching a controversy;

The court must clearly state the issues and the rationale for the
decision;