NLRC

National Labor Relations

Commission

There shall be a National Labor Relations Commission which shall be attached to the Department of Labor
and Employment for program and policy coordination only

The NLRC is an administrative quasi-judicial body. It is an agency attached to the DOLE solely for program
and policy coordination only.

It is in charge of deciding labor cases through compulsory arbitration.

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 NLRC

COMMISSION EN BANC
The Commission sits en bang only for the ff purposes:
1. To promulgate rules and regulations governing the hearing and disposition of cases before any
of its divisions and regional branches
2. To formulate policies affecting its administration and operations

The NLRC does not sit en banc to hear and decide cases. The banc has no adjudicatory power. The
Commission exercises its adjudicatory and all other powers, functions, and duties through its eight
(8) Divisions

8 DIVISIONS

Each division shall be composed of 3 members

The Commission shall exercise its adjudicatory and all other powers, functions and duties through its
X Divisions
 Q UALI F I CAT I O N S

NLRC CHAIRMAN AND OTHER COMMISSIONERS

The Chairman and other Commissioners shall be members of the Philippine Bar and must have
engaged in the practice of law in the Philippines for at least fifteen (15) years, with at least five (5)
years experience or exposure in the field of labor-management relations, and shall preferably be
residents of the region where they are to hold office.

LABOR ARBITERS

The Executive Labor Arbiters and Labor Arbiters shall likewise be members of the Philippine Bar and
must have been engaged in the practice of law in the Philippines for at least seven (7) years, with at
least three (3) years experience or exposure in the field of labor-management relations: Provided,
However, that incumbent Executive Labor Arbiters and Labor Arbiters who have been engaged in
the practice of law for at least five (5) years may be considered as already qualified for purposes of
reappointment as such under this Act.
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 TE RM AN D A PPO I N T M E NT

TERM
The Chairman and the other Commissioners, the Executive Labor Arbiters and Labor Arbiters shall
hold office during good behavior until they reach the age of sixty-five years, unless sooner removed
for cause as provided by law or become incapacitated to discharge the duties of their office.

APPOINTMENT

The Chairman, the division Presiding Commissioners and other Commissioners shall be appointed by
the President, subject to confirmation by the Commission on Appointments. Appointment to any
vacancy shall come from the nominees of the sector which nominated the predecessor. The
Executive Labor Arbiters and Labor Arbiters shall also be appointed by the President, upon
recommendation of the Secretary of Labor and Employment and shall be subject to the Civil Service
X Law, rules and regulations.
 LA BOR A RB I T E R
An official in the Arbitration Branch of the
National Labor Relations Commission (NLRC)
who hears and decides cases falling under his
original and exclusive jurisdiction as provided
by law.

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 POW E RS
A N D D U T IE S

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 LA BOR A RB I T E R ’ S J U RI S D I C T I O N
Labor Arbiters shall have original and exclusive jurisdiction to hear and decide the
following cases involving all workers, whether agricultural or non-agricultural:

UNDER 217 OF THE LABOR CODE

1.Unfair labor practice cases
2.Termination disputes (Illegal dismissal cases)
Provided that it is with a claim for reinstatement
If no claim for reinstatement — Regional Director
3.Money claims exceeding P5,000.00
4.Claims for actual, moral, exemplary and other forms of damages arising from employer-employee
relations
5.Cases involving the legality of strikes and lockouts
6.Cases arising from the interpretation or implementation of CBAs / interpretation or enforcement
of company personnel policies
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 LA BOR A RB I T E R ’ S J U RI S D I C T I O N

Wage distortion disputes in unorganized establishments not voluntarily settled by the parties
(pursuant to RA 6727)

Enforcement of compromise agreements when there is non-compliance by any of the parties

(pursuant to Art 227 of the LC)

Money claims arising out of employer-employee relationship by virtue of any law or contract
involving Filipino workers for overseas development (Migrant Workers and Overseas Filipino Act)

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

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 NLRC’ S JU RI SD I C T IO N

ORIGINAL JURISDICTION
1. Petition for injunction in
2.Termination disputes (Illegal dismissal cases)
Provided that it is with a claim for reinstatement
If no claim for reinstatement — Regional Director
3.Money claims exceeding P5,000.00
4.Claims for actual, moral, exemplary and other forms of damages arising from employer-employee
relations
5.Cases involving the legality of strikes and lockouts
6.Cases arising from the interpretation or implementation of CBAs / interpretation or enforcement
of company personnel policies
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 P OWERS O F T HE CO M MI S S I O N
Promulgate rules and
regulations
Promulgate rules and
regulations governing the
hearing and disposition of
cases before it and its regional
branches as well as those
pertaining to its internal
functions and such rules and
regulations as may be
necessary to carry out the
purposes of this Code;
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Oaths, Summons, Subpoenas Investigation
To administer oaths, summon To conduct investigation for
the parties to a controversy, the determination of a
issue subpoenas requiring the question, matter or
attendance and testimony of controversy within its
witnesses or the production of jurisdiction
such books, papers, contracts,
records, statement of
accounts, agreements, and
others as may be material to a
just determination of the
matter under investigation,
and to testify in any
investigation or hearing
conducted in pursuance of this
Code;
 P OWERS O F T HE CO M MI S S I O N
Power of contempt
To hold any person in
contempt directly or indirectly
and impose appropriate
penalties therefor in
accordance with law.
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Ocular inspection
Conduct an ocular inspection
on any establishment,
building, ship or vessel, place
or premises, including any
work, material, implement,
machinery, appliance or any
object therein, and ask any
employee, laborer, or any
person, as the case may be, for
any information or data
concerning any matter or
question relative to the object
of the investigation
Injunction
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 or render ineffectual any
decision in favor of such party.
Only NLRC has injunctive
power, not LA.
 2011 NLRC RULES OF
PROC E D U RE

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 Complaint Raffle and Summons
Assignment of Cases

Submission of Mandatory
Verified Position Conciliation and Motion to Dismiss
Paper Mediation
Conference

Hearing/ Submit case for

Finality of Decision
Clarificatory decision
Conference

SC CA Appeal to NLRC

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 2011 NL R C R U L E S O F P RO C E D U R E
Venue
All cases which the 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 the petitioners
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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
Injunction
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 or render ineffectual any
decision in favor of such party.
Only NLRC has injunctive
power, not LA.
 2011 NL R C R U L E S O F P RO C E D U R E
Appearance of non-lawyers Mandatory Conciliation

1. If they represent themselves Purpose Failure to appear

2. If they represent their
organization or members
thereof
3. He represents a member or
members of a legitimate labor
organization that is existing
within the employer’s
establishment
4. He is a duly accredited member
of any legal aid office
recognized by the DOJ or IBP
5. He is the owner or president of
a corporation or establishment
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who is a party to the case
 preliminary matters
1. To amicably settle the case Complainant - dismissal
upon a fair compromise Respondent - waiver of his/
2. To determine the real her right to file Position
parties in interest Paper
3. To determine the necessity
of amending the complaint
and including all causes of
action
4. To define and simplify the
issues in the case
5. To enter into admissions or
stipulations of facts; and
6. To thresh out all other
 A PP E AL S

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 AP PEAL S

Appeals from the LA’s

Appeals from NLRC
decision to the NLRC
There is no appeal from the decisions, orders or
Decisions, awards or orders by the LA are final
awards of the NLRC. Clearly, therefore, Article
and executory
223 of the Labor Code is not the proper basis
for elevating the case to the Court of Appeals
Appeal to the Commission by any or both
or to the Supreme Court.
parties — Within 10 calendar days from the
receipt of such decisions, awards, orders
The proper remedy from the decisions, awards
or orders of the NLRC to the Court of Appeals is
Filed with the Regional Arbitration Branch or
a Rule 65 petition for certiorari and from the
Regional Office where the case was heard and
Court of Appeals to the Supreme Court, a Rule
decided
45 petition for review on certiorari.
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 GROUNDS F O R A PP E AL

Prima facie evidence of abuse of discretion on the part of the LA

If the decision, order or award was secured through fraud or coercion, including
graft and corruption

If made purely on questions of law

If serious errors in the findings of facts are raised which would cause grave or irreparable damage
or injury to the appellant

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 RE Q UI SI T E S F O R PER FE C T I O N

1 OBSERVANCE OF THE REGLEMENTARY PERIOD

Decisions of LA – 10 Calendar Days
Decisions of DOLE Regional Directors – 5 Calendar Days

2 PAYMENT OF APPEAL AND LEGAL RESEARCH FEE

If unpaid, the running of the reglementary period for perfecting an appeal will not be tolled

3 MEMORANDUM OF APPEAL

4 PROOF OF SERVICE TO THE OTHER PARTY

5 CASH, PROPERTY OR SURETY BOND, IN CASE OF MONETARY AWARDS

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 M EMO R AN D U M O F AP P E AL
1 Verified by the appellant himself according to the Rules of Court

2 3 typewritten or printed copies

3 State the grounds relied upon and the arguments in support thereof and the relief prayed for

4 Statement of the date the appellant received the appealed decision, award or order

5 Proof of payment of the appeal fee and legal research fee

6 Cash or surety bond

X 7 Proof of service upon the other party

 TURKS SH AWA R M A It is clear from both the Labor Code (Article 223)
and the NLRC Rules of Procedure (Sections 4 and
V PAJARO N 6 of Rule VI) that there is legislative and
administrative intent to strictly apply the appeal
CASH/SURETY BOND IS bond requirement, and the Court should give
MANDATORY & JURISDICTIONAL utmost regard to this intention.

Pajaron and Carbonilla claimed that there was no

The posting of cash or surety bond is therefore
just or authorized cause for their dismissal and
mandatory and jurisdictional; failure to comply
petitioners failed to comply with the requirements
with this requirement renders the decision of the
of due process. On April 15, 2010, they filed their
Labor Arbiter final and executory. This
respective Complaints. The LA found credible
indispensable requisite for the perfection of an
Pajaron and Carbonilla's version and held them
appeal ''is to assure the workers that if they
constructively and illegally dismissed. Then,
finally prevail in the case[,] the monetary award
petitioners appealed before the NLRC. However,
will be given to them upon the dismissal of the
they failed to post in full the required appeal bond.
employer's appeal [and] is further meant to
discourage employers from using the appeal to
Thus, petitioners' appeal was dismissed by the
delay or evade payment of their obligations to
NLRC for non-perfection. It was likewise, dismissed
the employees.
X by the CA for the same reason.
 AP PEAL S

EFFECT OF AN APPEAL
FROM LA TO NLRC

The perfection of an appeal shall stay the

execution of the decision of the Labor Arbiter
except execution for reinstatement pending
appeal.

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 ISSU ES O N
AP PEAL S

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.

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 E F FECT O F RE V E RSA L OF
RE I NSTATE M E N T O R DE R
WH EN T HE E E WAS
AC TUAL LY RE I N STATE D
Bergonio Jr v SEA Airlines
Petitioners filed before the
LA a complaint for illegal
dismissal and illegal
suspension with prayer for
reinstatement against
respondents South East Asian
Airlines (SEAIR) and Irene
Dornier as SEAIR’s President.
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NLRC dismissed the
respondents’ appeal for non-
perfection. The NLRC
likewise denied the
respondents’ MR, prompting
the respondents to file before
the CA a petition for
certiorari.
LA found the petitioners CA declared the dismissal
illegally dismissed and valid
ordered the respondents, Is the LA’s order for
among others, to reinstatement of an illegally
immediately reinstate the dismissed employee
petitioners with full immediately executory even
backwages. during pendency of the
employer’s appeal from the
decision? – Yes
 E F FECT O F RE V E RSA L OF
RE I NSTATE M E N T O R DE R
WH EN T HE E E WAS
RE I NSTATE D T HE
PAYRO L L
Wenphil Corp. v Abing
The period for computing the
backwages due to the dismissed
employees during the period of appeal
should END on the date that a higher
court (in this case the CA) reversed the
labor arbitration ruling of illegal
dismissal.”

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 E F FECT O F RE V E RSA L OF
RE I NSTATE M E N T O R DE R
WH EN N OT R E I N STATE D
AT A LL
From the moment an The issue of Entitlement to
employee is ordered this Benefit has been the
reinstated by the Labor subject of several doctrinal
Arbiter on the basis of the rulings now known as
finding that his dismissal is follows:
illegal, up to the time that an 1. Roquero doctrine
appellate tribunal like the 2. Garcia doctrine
NLRC, Court of Appeals and
Supreme Court, as the case
may be, reverses the said
finding, the employee is
generally entitled to his
“reinstatement wages”
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 GAR CIA v PAL
From the time of failure to
reinstate
While respondent Philippine Airlines (PAL) was
undergoing rehabilitation receivership, an illegal
dismissal case was filed by petitioners against
respondent PAL which was decided by the Labor
Arbiter in their favor thus ordering PAL to, inter alia,
immediately comply with the reinstatement aspect
of the decision.
Whether petitioners may collect their
reinstatement wages during the period between
the order of reinstatement pending appeal and
the NLRC decision overturning that of the Labor
Arbiter, now that respondent PAL has terminated
and exited from rehabilitation proceedings

On appeal, the NLRC reversed the ruling of the

Labor Arbiter and held that their dismissal was valid.

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 GAR CIA v PAL
From the time of failure to
reinstate
Generally, yes but in this case, no.
“[a]fter the Labor Arbiter’s decision is reversed by a
higher tribunal, the employee may be barred from
collecting the accrued wages, if it is shown that the
delay in enforcing the reinstatement pending
appeal was without fault on the part of the
employer.”
X corporation shall ipso jure be suspended.
There was actual delay in reinstating petitioners
but respondent PAL was justified in not
complying with the reinstatement order of the
Labor Arbiter because during the pendency of
the illegal dismissal case, the SEC placed
respondent PAL under an Interim Rehabilitation
Receiver who, after the Labor Arbiter rendered
his decision, was replaced with a Permanent
Rehabilitation Receiver.
It is settled that upon appointment by the SEC of
a rehabilitation receiver, all actions for claims
before any court, tribunal or board against the
 F INDING S O F FA C TS ;
X PNS
Bugaoisan v Owi Group
Doctrine: The findings of fact of the LA, as affirmed by
the NLRC, are final and conclusive, in the absence of
proof that the latter acted without, in excess of or with
grave abuse of discretion amounting to lack or excess
of jurisdiction.

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 F INDING S O F FA C TS ;
X PNS
Bugaoisan v Owi Group
Petitioner was offered full time employment for a term
of 1 year as a chef in Australia but it was modified upon
arrival to a term of 2 years. She was tasked to prepare
breakfast buffet for 600 mining employees all by
herself. As a result, she was diagnosed to be suffering
from Carpal Tunnel Syndrome (CTS) and was declared
unfit to work.
Petitioner was offered full time employment
for a term of 1 year as a chef in Australia but
it was modified upon arrival to a term of 2
years. She was tasked to prepare breakfast
buffet for 600 mining employees all by
herself. As a result, she was diagnosed to be
suffering from Carpal Tunnel Syndrome (CTS)
and was declared unfit to work.
Since she had no other means to support her
daily sustenance and the required
medication, she decided to tender her
resignation letter and left for the Philippines.

Since she had no other means to support her daily

sustenance and the required medication, she decided
to tender her resignation letter and left for the
Philippines.

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 F INDING S O F FA C TS ;
X PNS
Bugaoisan v Owi Group
The Labor Arbiter (LA) ruled that the petitioner was
illegally dismissed from employment. It was found that
the respondents committed gross misrepresentation
and bad faith in inducing petitioner to work for them.
Petitioner's Carpal Tunnel Syndrome (CTS) was caused
or at least aggravated by respondents' oppressive acts.
Furthermore, the tenor of her resignation letter and the
immediate filing of the labor complaint evinced that
she did not voluntarily tender her resignation.
The NLRC sustained the findings of the LA
with regard to the existence of constructive
dismissal, the solidary liability of the
respondents, and the award of petitioner's
salary for the unexpired portion of her two-
year employment contract.
CA affirmed the findings of the NLRC, ruling
that no grave abuse of discretion could be
attributed to the latter. However, it modified
the decision by reducing the award of unpaid
salaries due the petitioner on the ground
that the basis should be the first contract of
employment which had a duration of only
one (1) year.

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 E XECUT I O N O F DE C IS I ON S ,
O RDE RS A ND AWA RDS

The Secretary of Labor and Employment or any In any case, it shall be the duty of the responsible
Regional Director, the Commission or any Labor officer to separately furnish immediately the
Arbiter, or Med-Arbiter or Voluntary Arbitrator may, counsels of record and the parties with copies of
motu proprio or on motion of any interested party, said decisions, orders or awards. Failure to
issue a writ of execution on a judgment within five comply with the duty prescribed herein shall
(5) years from the date it becomes final and subject such responsible officer to appropriate
executory, requiring a sheriff or a duly deputized administrative sanctions.
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 med-arbiter, or voluntary
arbitrators.