NLRC
CREATION AND COMPOSITION (Article 220, PD 442)
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Attached to DOLE solely for program and policy coordination only
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Composed of chairman and 23 members
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Shall divest themselves of any affiliation with or interest in the federation or association to
which they belong.
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may sit en banc or in 8 divisions; each division composed of 3 members
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sit en banc only for purposes of promulgating rules and regulations governing hearing and
disposition of cases
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shall exercise its adjudicatory and all other powers, functions and duties through its divisions
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concurrence of 2 commissioners of a division shall be necessary for pronouncement of judgment
or resolution
Appointment and Qualification (Article 222, PD 442)
Chairman and Commissioners
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Members of the Philippines bar
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Been engaged in the practice of law in the Philippines for at least 15 years with at least 5 years
in the field of labor-management relations
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Residents of the region where they shall hold office
Labor Arbiters
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Members of the Philippines bar
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Been engaged in the practice of law in the Philippines for at least 10 years with at least 5 years
in the field of labor-management relations
Salaries, Benefits, Emoluments (Article 223, PD 442)
Chairman and Commissioners
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shall have the same rank, receive an annual salary equivalent to, and be entitled to the same
allowances, retirement and benefits as those of the Presiding Justice and Associate Justices of
the Court of Appeals, respectively.
Labor Arbiters
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shall have the same rank, receive an annual salary equivalent to, and be entitled to the same
allowances, retirement and benefits as those of the Judges of the RTC
Powers and Duties (Article 224, PD 442)
Except as otherwise provided under this Code, the Labor Arbiters shall have original and exclusive
jurisdiction to hear and decide, within thirty (30) calendar days after the submission of the case by the
parties for decision without extension, even in the absence of stenographic notes, the following cases
involving all workers, whether agricultural or non-agricultural:
1. Unfair labor practice cases;
2. Termination disputes;
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 the employer-employee
relations;
5. Cases arising from any violation of Article 264 of this Code, including questions involving the legality of
strikes and lockouts; and
Except claims for Employees Compensation, 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) regardless of whether
accompanied with a claim for reinstatement.
The Commission shall have exclusive appellate jurisdiction over all cases decided by Labor Arbiters.
Cases arising from the interpretation or implementation of collective bargaining agreements and those
arising from the interpretation or enforcement of company personnel policies shall be disposed of by
the Labor Arbiter by referring the same to the grievance machinery and voluntary arbitration as may be
provided in said agreements.
Additional Cases
1. Money claims arising out of 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, as well as employment termination of OFWs;
2. Wage distortion disputes in unorganized establishments not voluntary settled by the parties pursuant
to R.A. No. 6727, as reflected in Article 124;
3. Enforcement of compromise agreements when there is non-compliance by any of the parties
pursuant to Article 223 of the Labor Code, as amended; and
4. Other cases as may be provided by law.
Compulsory Arbitration by Labor Arbiters
In labor cases, compulsory arbitration is the process of settlement of labor disputes by a government
agency which has the authority to investigate and to make an award which is binding on all the parties.
When the Labor Arbiter renders his decision, compulsory arbitration is deemed terminated because by
then the hearing and determination of the controversy has ended. Any appeal raised by an aggrieved
party from the Labor Arbiter's decision is already beyond the scope of arbitration since in the appeal
stage, the NLRC en banc merely reviews the Labor Arbiter's decision for errors of fact or law and no
longer duplicates the proceedings before the Labor Arbiter.
Thus, the clause "pending final resolution of the case by arbitration" should be understood to be limited
only to the proceedings before the Labor Arbiter, such that when the latter rendered his decision, the
case was finally resolved by arbitration. (PAL vs. NLRC, GR No. 55199, December 22, 1989)
Nature of proceedings
The NLRC Rules describe the proceedings before a Labor Arbiter as non-litigious. Subject to the
requirements of due process, the technicalities of law and procedure in the regular courts do not apply
in NLRC/labor arbiter proceedings.
Article 224 yields to Articles 274 and 275
Article 224 enumerates the cases falling under “original and exclusive” jurisdiction of labor arbiters.
However, any or all of these cases can, by agreement of the parties, be presented to and decided with
finality by a voluntary arbitrator or panel of voluntary arbitrators (Article 274 and Article 275 of PD 442).
Labor Arbiter’s Jurisdiction; Important Element
Absent the jurisdictional requisite of an employer-employee relationship between petitioner and private
respondent, the inevitable conclusion is that public respondent is without jurisdiction to hear and decide
the case with respect to petitioner. (Hawaiian-Philippine Company vs. Gulmatico, et. al., GR No. 106231,
November 16,1994)
Exception
Even in cases where the element of employer-employee relationship exists, the case may not prosper if
the employer enjoys immunity from Philippine jurisdiction, that is, although operating within Philippine
territory, the employer organization is exempted from the application of Philippine laws.
Venue (2011 NLRC Rules of Procedure, as amended)
SECTION 1. VENUE. – (a) All cases which Labor Arbiters have authority to hear and decide may be filed in
the Regional Arbitration Branch having jurisdiction over the workplace of the complainant or petitioner.
For purposes of venue, the workplace shall be understood as the place or locality where the employee is
regularly assigned at the time the cause of action arose. It shall include the place where the employee is
supposed to report back after a temporary detail, assignment, or travel. In case of field employees, as
well as ambulant or itinerant workers, their workplace is where they are regularly assigned, or where
they are supposed to regularly receive their salaries and wages or work instructions from, and report the
results of their assignment to, their employers.
(b) Where two (2) or more Regional Arbitration Branches have jurisdiction over the workplace of the
complainant or petitioner, the Branch that first acquired jurisdiction over the case shall exclude the
others.
(c) When venue is not objected to before the first scheduled mandatory conference, such issue shall be
deemed waived. (As amended by En Banc Resolution No. 11-12, Series of 2012)
(d) The venue of an action may be changed or transferred to a different Regional Arbitration Branch
other than where the complaint was filed by written agreement of the parties or when the Commission
or Labor Arbiter before whom the case is pending so orders, upon motion by the proper party in
meritorious cases.
(e) Cases involving overseas Filipino workers may be filed before the Regional Arbitration Branch having
jurisdiction over the place where the complainant resides or where the principal office of any of the
respondents is situated, at the option of the complainant.
Unfair Labor Practice
Under Article 247 (now 258) of the Labor Code, the “civil aspects of all cases involving unfair labor
practices, which may include claims for damages and other affirmative relief, shall be under the
jurisdiction of the labor arbiters. (National Union of Bank Employees vs. Judge Alfredo Lazaro, et al, GR
No. 56431, January 19, 1988)
Gross violations of the collective bargaining agreement would be unfair labor practice which falls under
the jurisdiction of the Labor Arbiters and the National Labor Relations Commission. (Manila Mandarin
Employees Union vs. NLRC, GR No. 76989, September 29, 1987)
Termination Disputes
The last sentence of Article 224, requires a labor arbiter to refer to the grievance machinery and
voluntary arbitration all cases arising from interpretation or enforcement of collective bargaining
agreement or company personnel policies. Judging therefrom, the questioned discharges due to alleged
redundancy can hardly be considered company personnel policies and, therefore, need not directly be
subject to the grievance machinery nor to voluntary arbitration. (San Miguel Corp., vs. NLRC, GR No.
108001, March 15, 1996)
The dismissal of an employee in the exercise by the employer-church of its management prerogative
does not concern any ecclesiastical matter and jurisdiction lies with the labor arbiter. (Austria vs. NLRC
& Cebu City Central Philippines Union Mission Corporation of the SDA, GR No. 124382, August 16, 1999)
Corporate Officer
A corporate officer derives its character either from the Corporation Code or the corporation’s by-laws.
Under Section 25 of the Corporation Code, the corporate officers are the president, secretary, treasurer,
and such other officers as may be provided in the by-laws.
The dismissal issue is deemed an intra-corporate dispute and falls within the jurisdiction of the trial
court if the complainant is a corporate officer. He is a corporate officer if these circumstances concur:
(1) his position is a creation of the corporate charter or by-laws; (2) his position is elective; and (3) his
election is by the act of the directors or stockholders (Malcaba , et. al., vs. Prohealth Pharma Phil., et.
al., GR No. 209085, June 6, 2018)
A college dean is not a corporate officer, the position not being a creation of the university’s by-laws.
(Barba vs. Liceo de Cagayan University, G.R. No. 193857, November 28, 2012)
Money Claims
A money claim arising from employer-employee relations, excepting SSS/Medicare claims, is within the
jurisdiction of a labor arbiter --1. If the claim, regardless of amount, is accompanied with a claim for reinstatement; or
2. If the claim, whether or not accompanied with a claim for reinstatement, exceeds P5,000.00 per
claimant.
The original and exclusive jurisdiction of the Labor Arbiter under Article 224(c) for money claims is
limited only to those arising from statutes or contracts other than a Collective Bargaining Agreement.
Reasonable causal connection rule
Money claims of workers which do not arise out or in connection with their employer-employee
relationship fall within the general jurisdiction of regular courts of justice. Hence, money claims of
workers referred to in paragraph 3 of Article 224 embraces money claims which arise out of or in
connection with the employer-employee relationship, or some aspect or incident of such relationship.
Strikes and lockouts
Questions relating to strikes or lockouts or any form of work stoppage including incidents thereof under
Article 278 fall within the labor arbiter’s jurisdiction.
But the power to issue injunction is lodged with an NLRC division, not a labor arbiter (Article 225)
Moreover, “national interest” cases are handled differently. Article 278(g) empowers the DOLE Secretary
or the President of the Republic to assume jurisdiction or refer the case to the NLRC for compulsory
abritration if the labor dispute or impending strike or lockout involves an industry indispensable to the
national interest.
Money Claims of OFWs
The Labor Arbiter has original and exclusive jurisdiction to hear and decide 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.
(Section 10, RA 8042)
Pretermination under RA 8042
In case of termination of overseas employment without just, valid or authorized cause as defined by law
or contract, the workers shall be entitled to the full reimbursement of his placement fee with interest of
twelve percent (12%) per annum, plus his salaries for the unexpired portion of his employment contract
or for three (3) months for every year of the unexpired term, whichever is less. (Section 10, RA 8042)
Joint Liability
The liability of the principal/employer and the recruitment/placement agency for any and all claims
under this section shall be joint and several. This provisions shall be incorporated in the contract for
overseas employment and shall be a condition precedent for its approval. The performance bond to be
filed by the recruitment/placement agency, as provided by law, shall be answerable for all money claims
or damages that may be awarded to the workers. If the recruitment/placement agency is a juridical
being, the corporate officers and directors and partners as the case may be, shall themselves be jointly
and solidarily liable with the corporation or partnership for the aforesaid claims and damages. (Section
10, RA 8042)
Such liabilities shall continue during the entire period or duration of the employment contract and shall
not be affected by any substitution, amendment or modification made locally or in a foreign country of
the said contract. (Section 10, RA 8042)
But in the case of Princess Talent Center Production Inc., and/or Luchi Singh Moldes vs. Masagca, GR No.
191310, April 11, 2018, solidary liability was imposed even though the illegal dismissal was committed
after the expiration of the original period of employment. Moreover, the president of the recruitment
agency was declared solidarily liable with the agency regardless of whether she acted with malice or bad
faith.
The liability of corporate officers and directors is not automatic. To make them jointly and severally
liable with their company, there must be a finding that they were remiss in directing the affairs of that
company, such as sponsoring or tolerating the conduct of illegal activities. (MAM Realty Development
Corporation vs. NLRC, 314 Phil. 838, 845 (1995))
Wage distortion
A salary distortion case, referred to in Article 224, is resolved either through the CBA mechanism, or in
unorganized establishments, through the NCMB. If the NCMB fails to resolve the dispute in 10 days of
conciliation conferences, it shall be referred to the appropriate branch of the NLRC.
Compromise Settlements
If there is non-compliance with the compromise agreement or if there is prima facie evidence that the
settlement was obtained through fraud, misrepresentation, or coercion, then, according to Article 233,
the NLRC through the labor arbiter may assume jurisdiction over such dispute.
Powers of the NLRC (Article 225, PD 442)
1. Rule-making power;
2. Power to issue compulsory processes;
3. Power to investigate and hear disputes within its jurisdiction;
4. Contempt power;
5. Power to conduct ocular inspection (Article 226, PD 442)
6. Original adjudicatory power (Article 225(e); Article 278(g)
7. Appellate adjudicatory power (Article 129)
8. Power to issue injunction or temporary restraining order
Procedure (Article 227, PD 442)
Article 227 [221]. Technical rules not binding and prior resort to amicable settlement. In any proceeding
before the Commission or any of the Labor Arbiters, the rules of evidence prevailing in courts of law or
equity shall not be controlling and it is the spirit and intention of this Code that the Commission and its
members and the Labor Arbiters shall use every and all reasonable means to ascertain the facts in each
case speedily and objectively and without regard to technicalities of law or procedure, all in the interest
of due process. In any proceeding before the Commission or any Labor Arbiter, the parties may be
represented by legal counsel but it shall be the duty of the Chairman, any Presiding Commissioner or
Commissioner or any Labor Arbiter to exercise complete control of the proceedings at all stages.
Any provision of law to the contrary notwithstanding, the Labor Arbiter shall exert all efforts towards
the amicable settlement of a labor dispute within his jurisdiction on or before the first hearing. The same
rule shall apply to the Commission in the exercise of its original jurisdiction. (As amended by Section 11,
Republic Act No. 6715, March 21, 1989)
Substantial Evidence
Substantial evidence means evidence which a reasoning mind would accept as sufficient to support a
particular conclusion and consists of more than a mere scintilla of evidence but may be somewhat less
than a preponderance.
Nature of Proceedings
SECTION 2. NATURE OF PROCEEDINGS. – The proceedings
before the Labor Arbiter shall be non-litigious in nature. Subject to the requirements of due process, the
technicalities of law and procedure and the rules obtaining in the courts of law shall not strictly apply
thereto. The Labor Arbiter may avail himself/herself of all reasonable means to ascertain the facts of the
controversy speedily, including ocular inspection and examination of well-informed persons.
Important Rules, 2011 NLRC Rules of Procedure
1. Prohibited pleadings and motions (Section 5, Rule 5 of the 2011 NLRC Rules of Procedure)
2. SECTION 6. MOTION TO DISMISS. – Before the date set for the mandatory conciliation and mediation
conference, the respondent may file a motion to dismiss on grounds provided under Section 5,
paragraph (a) hereof. Such motion shall be acted upon by the Labor Arbiter before the issuance of an
order requiring the submission of position paper. An order denying the motion to dismiss, or suspending
its resolution until the final determination of the case, is not appealable. (6a) (As amended by En Banc
Resolution No. 11-12, Series of 2012)
3. Mandatory Conciliation and Mediation Conference (Section 8, Rule V, 2011 NLRC Rules of Procedure)
4. Non-appearance of parties (Section 10, Rule V, 2011 NLRC Rules of Procedure)
5. Amendment of Complaint/Petition (Section 11, Rule V, 2011 NLRC Rules of Procedure)
6. Submission of position papers and reply (Section 12, Rule V, 2011 NLRC Rules of Procedure)
Article 228 [222]. Appearance and Fees
(a) Non-lawyers may appear before the Commission or any Labor Arbiter only:
1. If they represent themselves; or
2. If they represent their organization or members thereof.
(b) No attorney’s fees, negotiation fees or similar charges of any kind arising from any collective
bargaining agreement shall be imposed on any individual member of the contracting union: Provided,
However, that attorney’s fees may be charged against union funds in an amount to be agreed upon by
the parties. Any contract, agreement or arrangement of any sort to the contrary shall be null and void.
Article 229. Appeal
Decisions, awards, or orders of the Labor Arbiter are final and executory unless appealed to the
Commission by any or both parties within ten (10) calendar days from receipt of such decisions, awards,
or orders. Such appeal may be entertained only on any of the following grounds:
1. If there is prima facie evidence of abuse of discretion on the part of the Labor Arbiter;
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; and
4. If serious errors in the findings of facts are raised which would cause grave or irreparable
damage or injury to the appellant.
In case of a judgment involving a monetary award, an appeal by the employer may be perfected only
upon the posting of a cash or surety bond issued by a reputable bonding company duly accredited by
the Commission in the amount equivalent to the monetary award in the judgment appealed from.
In any event, the decision of the Labor Arbiter reinstating a dismissed or separated employee, insofar as
the reinstatement aspect is concerned, shall immediately be executory, even pending appeal. The
employee shall either be admitted back to work under the same terms and conditions prevailing prior to
his dismissal or separation or, at the option of the employer, merely reinstated in the payroll. The
posting of a bond by the employer shall not stay the execution for reinstatement provided herein.
To discourage frivolous or dilatory appeals, the Commission or the Labor Arbiter shall impose reasonable
penalty, including fines or censures, upon the erring parties.
In all cases, the appellant shall furnish a copy of the memorandum of appeal to the other party who shall
file an answer not later than ten (10) calendar days from receipt thereof.
The Commission shall decide all cases within twenty (20) calendar days from receipt of the answer of the
appellee. The decision of the Commission shall be final and executory after ten (10) calendar days from
receipt thereof by the parties.
Any law enforcement agency may be deputized by the Secretary of Labor and Employment or the
Commission in the enforcement of decisions, awards or orders.
Requisites for Perfection of Appeal
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filed within the reglementary period provided in Section 1 of this Rule;
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verified by the appellant himself in accordance with Section 4, Rule 7 of the Rules of Court, as
amended;
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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;
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in three legibly typrewritten or printed copies; and
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accompanied by (1) proof of payment of the required appeal fee and legal research fee; (2)
posting of a cash or surety bond as provided in Section 6 of this Rule; and (3) proof of service
upon the other parties.
Appeal Bond
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which shall either be in the form of cash or surety bond equivalent in amount to the monetary
award, exclusive of damages and attorney’s fees
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appeal bond reduction
- 10% of the monetary award (McBurnie vs. Gauzon, GR Nos. 178034 and 178117, October 17,
2013)
- within the ten-day reglementary period
- appeal bond requirement is not merely procedural but jurisdictional, for without it, the NLRC
does not acquire jurisdiction over the appeal. (Sameer Overseas Employment Agency, Inc., vs.
Levantino, GR No. 153942, June 29, 2005)
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Although the posting of a bond is jurisdictional, the requirement should be given a liberal
interpretation. The real property bond posted by petitioners sufficiently protects the interests of
private respondent should they finally prevail. (UERM-Memorial Medical Centers vs. NLRC, GR
No. 110419, March 3, 1997)
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There is no procedural error that may be imputed to the arbiter in requiring the employer to
post supersedeas bond as a condition for the stay of immediate execution of the judgment
against it, after appeal had been taken form said judgment. (Pan American Employees
Association vs. NLRC, GR No. 74273, October 12, 1986)
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The perfection of an appeal shall stay the execution of the decision of the Labor Arbiter on
appeal, except execution for reinstatement pending appeal.
Article 230. Execution of Decisions, Orders or Awards
The Secretary of Labor and Employment or any Regional Director, the Commission or any Labor Arbiter,
or Med-Arbiter or Voluntary Arbitrator may, motu proprio or on motion of any interested party, issue a
writ of execution on a judgment within five (5) years from the date it becomes final and executory,
requiring a sheriff or a duly deputized officer to execute or enforce final decisions, orders or awards of
the Secretary of Labor and Employment or regional director, the Commission, the Labor Arbiter or medarbiter, or voluntary arbitrators. In any case, it shall be the duty of the responsible officer to separately
furnish immediately the counsels of record and the parties with copies of said decisions, orders or
awards. Failure to comply with the duty prescribed herein shall subject such responsible officer to
appropriate administrative sanctions.