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Frequently Asked Questions

(FAQs)

What is the constitutional provision on protection to labor?

The State shall afford full protection to labor, local and overseas, organized and
promote full employment and equality of employment opportunities for all. It sha
rights of all workers to self-organization, collective bargaining and negotiations, a
concerted activities, including the right to strike in accordance with law. They sha
security of tenure, humane conditions of work, and a living wage. They shall also
and decision-making processes affecting their rights and benefits as may be prov

The State shall promote the principle of shared responsibility between workers a
the preferential use of voluntary modes in settling disputes, including conciliation
their mutual compliance therewith to foster industrial peace.

The State shall regulate the relations between workers and employers, recogniz
to its just share in the fruits of production and the right of enterprises to reasona
investments, and to expansion and growth.

What rules govern the proceedings before the Labor Arbiters and

The proceedings before the Labor Arbiters and the NLRC are governed by the La
amended, the 2011 NLRC Rules of Procedure, and suppletorily, the Rules of Cou

What is the nature of the proceedings before the Labor Arbiter?

The NLRC Rules describe the proceedings before the Labor Arbiter as non-litigiou
requirements of due process, the technicalities of law and procedure in the regul
apply in the labor arbitration proceedings.

What are the cases falling under the jurisdiction of the Labor Arbi

Under Article 217 of the Labor Code, Labor Arbiters have jurisdiction over the fol

1. Unfair labor practice (ULP) cases;

2. Termination disputes (or illegal dismissal cases);

3. If accompanied with a claim for reinstatement, those cases that workers may
wages, rates of pay, hours of work and other terms and conditions of employme

4. Claims for actual, moral, exemplary and other forms of damages arising from
relations;

5. Cases arising from any violation of Article 264 of the Labor Code, including q
the legality of strikes and lockouts;

6. Except claims for employees compensation not included in the next succeedi
security, medicare and maternity benefits, all other claims arising from employer
including those of persons in domestic or household service, involving an amoun
Thousand Pesos (P5,000.00), whether or not accompanied with a claim for reins

7. Wage distortion disputes in unorganized establishments not voluntarily settle

pursuant to Republic Act No. 6627;

8. Enforcement of compromise agreements when there is non-compliance by a

pursuant to Article 227 of the Labor Code, as amended;

9. Money claims arising out of employer-employee relationship or by virtue of a

involving Filipino workers for overseas employment, including claims for actual, m
other forms of damages as provided by Section 10 of R.A. No. 8042, as amended

10.Contested cases under the exception clause of Article 128(b) of the Labor Cod
R.A. 7730; and

11.Other cases as may be provided by law.

 May a non-lawyer appear in any of the proceedings before th
Commission?

Yes. A non-lawyer may appear in any of the proceedings before the Labor Arbite
under the following conditions:

1. he/she represents himself/herself as party to the case;

2. he/she represents a legitimate labor organization, as defined under Article 2

Labor Code, as amended, which is a party to the case: Provided, that he/she pre
Commission or Labor Arbiter during the mandatory conference or initial hearing:
from the Bureau of Labor Relations (BLR) or Regional Office of the Department o
Employment attesting that the organization he/she represents is duly registered
roster of legitimate labor organizations; (ii) a verified certification issued by the s
attested to by the president of the said organization stating that he/she is autho
said organization in the said case; and (iii) a copy of the resolution of the board
said organization granting him such authority;

3. he/she represents a member or members of a legitimate labor organization t

the employers establishment, who are parties to the case: Provided, that he/she
verified certification attesting that he/she is authorized by such member or mem
them in the case; and (ii) a verified certification issued by the secretary and atte
president of the said organization stating that the person or persons he/she is re
members of their organization which is existing in the employers establishment;

4. he/she is a duly-accredited member of any legal aid office recognized by the

Justice or Integrated Bar of the Philippines: Provided, that he/she (i) presents pr
accreditation; and (ii) represents a party to the case;

5. he/she is the owner or president of a corporation or establishment which is a

Provided, that he/she presents: (i) a verified certification attesting that he/she is
represent said corporation or establishment; and (ii) a copy of the resolution of t
of said corporation, or other similar resolution or instrument issued by said estab
him/her such authority.

Does the counsel or authorized representatives have the auth

clients?
Yes. Counsel or other authorized representatives of parties shall have authority t
all matter of procedure. However, they cannot, without a special power of attorn
consent, enter into a compromise agreement with the opposing party in full or p
clients claim.

What is the purpose of mandatory conciliation and mediation conf

The mandatory conciliation and mediation conference shall be called for the purp
settling the case upon a fair compromise; (2) determining the real parties in inte
the necessity of amending the complaint and including all causes of action; (4) d
simplifying the issues in the case; (5) entering into admissions or stipulations of
threshing out all other preliminary matters.

What is the effect of non-appearance of the parties in the man

and mediation conference?

The non-appearance of the complainant or petitioner during the two (2) settings
conciliation and mediation conference scheduled in the summons, despite due no
a ground for the dismissal of the case without prejudice.

In case of non-appearance by the respondent during the first scheduled conferen

conference as scheduled in the summons shall proceed. If the respondent still fa
second conference despite being duly served with summons, he/she shall be con
waived his/her right to file position paper. The Labor Arbiter shall immediately te
mandatory conciliation and mediation conference and direct the complainant or p
verified position paper and submit evidence in support of his/her causes of action
render his/her decision on the basis of the evidence on record.

What is the role of the Labor Arbiter in hearing and clarificatory co

The Labor Arbiter shall take full control and personally conduct the hearing or cla
and may ask questions for the purpose of clarifying points of law or facts involve
Labor Arbiter may allow the presentation of testimonial evidence with right of cro
the opposing party and shall limit the presentation of evidence to matters releva
him/her and necessary for a just and speedy disposition of the case.

The Labor Arbiter shall make a written summary of the proceedings, including th
evidence presented, in consultation with the parties. The written summary shall
parties and shall form part of the records.

What is the period within which to conduct clarificatory conferenc

The parties and their counsels appearing before the Labor Arbiter shall be prepa
hearing or clarificatory conference. No postponement or continuance shall be allo
Arbiter, except upon meritorious grounds and subject to the requirement of expe
cases. The hearing or clarificatory conference shall be terminated within thirty (3
from the date of the initial clarificatory conference. In cases involving overseas F
aggregate period for conducting the mandatory conciliation and mediation confe
hearing on the merits or clarificatory conference, shall not exceed sixty (60) days
reckoned from the date of acquisition of jurisdiction by the Labor Arbiter over the
respondents.

What is the effect of non-appearance of the parties during clarifica

In case of non-appearance of any of the parties during the hearing or clarificator

due notice, proceedings shall be conducted ex parte. Thereafter, the case shall b
for decision.

What is the period within which to file a motion for postponement

No motion for postponement shall be entertained except on meritorious grounds

least three (3) days before the scheduled hearing.
 1. What is the period within which to cause an amendment of the com

No amendment of the complaint or petition shall be allowed after the filing of po

with leave of the Labor Arbiter.

What are the prohibited pleadings and motions?

The following pleadings and motions shall not be allowed and acted upon nor ele
Commission: (a) Motion to dismiss the complaint except on the ground of lack of
subject matter, improper venue, res judicata, prescription and forum shopping; (
particulars; (c) Motion for new trial; (d) Petition for Relief from Judgment; (e) Mo
respondent in default; (f) Motion for reconsideration of any decision or any order
Arbiter; (g) Appeal from any interlocutory order of the Labor Arbiter, such as but
order: denying a motion to dismiss, denying a motion to inhibit; denying a motio
of execution, or denying a motion to quash writ of execution; (h) Appeal from th
certificate of finality of decision by the Labor Arbiter; (i) Appeal from orders issue
Arbiter in the course of execution proceedings; and (j) Such other pleadings, mo
similar nature intended to circumvent above provisions.

May the Commission blacklist bonding companies?

Yes. The Commission through the Chairman may on justifiable grounds blacklist
notwithstanding its accreditation by the Supreme Court. Upon verification by the
bond is irregular or not genuine, the Commission shall cause the immediate dism
and censure the responsible parties and their counsels, or subject them to reaso
and the bonding company may be blacklisted.

May a party file a motion to revive and re-open a case dismissed w

Yes. A party may file a motion to revive or re-open a case dismissed without prej
(10) calendar days from receipt of notice of the order dismissing the same; othe
remedy shall be to re-file the case. A party declared to have waived his/her right
may, at any time after notice thereof and before the case is submitted for decisio
under oath to set aside the order of waiver upon proper showing that his/her fai
due to justifiable and meritorious grounds.

What is the effect of rehabilitation receivership on monetary claim

Rehabilitation receivership of a company has the effect of suspending all proceed

stage it may be found - in all judicial or quasi-judicial bodies. The NLRC may not
hearing of monetary claims. If already decided, the monetary awards cannot be
execution, no such execution may be had. Only when there is liquidation that the
may be asserted. The suspension of the proceedings is necessary to enable the r
to effectively exercise its powers free from any judicial or extra-judicial interferen
hinder the rescue of the distressed company. Once the receivership proceedings
receiver/liquidator is given the imprimatur to proceed with corporate liquidation,
becomes functus officio. Thus, there is no legal impediment for the execution of
Labor Arbiter for the payment of separation pay by presenting it with the rehabil
liquidator, subject to the rules on preference of credits.

What are the two kinds of jurisdiction of the NLRC?

The National Labor Relations Commission exercises two (2) kinds of jurisdiction:
jurisdiction; and (2) Exclusive appellate jurisdiction.

1. Original jurisdiction:

1. Injunction in ordinary labor disputes to enjoin or restrain any actual or threa

any or all prohibited or unlawful acts or to require the performance of a
labor dispute which, if not restrained or performed forthwith, may cause
damage to any party;

2. Injunction in strikes or lockouts under Article 264 of the Labor Code; and

3. Certified labor disputes causing or likely to cause a strike or lockout in an in

to the national interest, certified to it by the Secretary of Labor and Employ
arbitration.
2. Exclusive appellate jurisdiction:

1. All cases decided by the Labor Arbiters including contempt cases; and

2. Cases decided by the DOLE Regional Directors or his duly authorized He

Article 129) involving recovery of wages, simple money claims and other be
P5,000 and not accompanied by claim for reinstatement.

What is the power to assume jurisdiction or certify national inter

to NLRC?

When, in his opinion, there exists a labor dispute causing or likely to cause a stri
industry indispensable to the national interest, the Secretary of Labor and Emplo
jurisdiction over the dispute and decide it or certify the same to the Commission
arbitration.

In case of conflict, who has jurisdiction over termination dispute

Voluntary Arbitrator?

Jurisdiction over termination disputes belongs to Labor Arbiters and not with the
or Voluntary Arbitrator. Under Article 262, the Voluntary Arbitrator may assume j
when agreed upon by the parties. Policy Instructions No. 56 issued by DOLE Sec
clarifying the jurisdiction of Labor Arbiters and Voluntary Arbitrations does not ap
ruling that dismissal is not a grievable issue.

What is the mode of appeal from the decision of the Labor Arbiter

Appeal from the decision of the Labor Arbiter is brought by ordinary appeal to th
(10) calendar days from receipt by the party of the decision. From the decision o
no appeal. The only way to elevate the case to the Court of Appeals is by way of
action of certiorari under Rule 65 of the Rules of Civil Procedure. From the ruling
Appeals, it may be elevated to the Supreme Court by way of ordinary appeal und
Rules of Civil Procedure.

What are the grounds for appeal?

There are four (4) grounds, to wit:

(a) If there is prima facie evidence of abuse of discretion on the part of the Labo
(b) If the decision, order or award was secured through fraud or coercion, includ
corruption;

(c) If made purely on questions of law; and

(d) If serious errors in the findings of facts are raised which would cause grave
damage or injury to the appellant.

What are the requisites for perfection of appeal?

The appeal shall be: (1) filed within the reglementary period provided in Section
verified by the appellant himself/herself in accordance with Section 4, Rule 7 of t
amended; (3) in the form of a memorandum of appeal which shall state the grou
the arguments in support thereof, the relief prayed for, and with a statement of
appellant received the appealed decision, award or order; (4) in three (3) legibly
printed copies; and (5) accompanied by proof of payment of the required appeal
research fee, posting of a cash or surety bond as provided in Section 6 of this Ru
service upon the other parties.

What is the reinstatement aspect of the Labor Arbiters decision?

If reinstatement is ordered by the Labor Arbiter in an illegal dismissal case, it is i

executory even pending appeal. Such award does not require a writ of execution
 Is posting a bond stay the execution of immediate reinstatement?

No. The posting of a bond by the employer does not have the effect of staying th
reinstatement aspect of the decision of the Labor Arbiter.

Can the Labor Arbiter issue a partial writ pending appeal?

Yes. In case the decision includes an order of reinstatement and the employer di
to reinstate the dismissed employee, the Labor Arbiter should immediately issue
even pending appeal, directing the employer to immediately reinstate the dismis
physically or in the payroll, and to pay the accrued salaries as a consequence of
at the rate specified in the decision. The Sheriff should serve the writ of executio
or any other person required by law to obey the same. If he disobeys the writ, s
person may be cited for contempt. While the perfection of appeal will stay the ex
decision of a Labor Arbiter, the partial execution for reinstatement pending appe
such perfection.

Is the award of reinstatement pending appeal by the Labor Arbite

Yes. An award or order of reinstatement is self-executory and, therefore, does no

execution to implement and enforce it. To require the application for and issuanc
execution as pre-requisite for the execution of a reinstatement award would cert
counter to the very object and intent of Article 223, i.e., the immediate execution
order. The reason is simple. An application for a writ of execution and its issuanc
for numerous reasons. A mere continuance or postponement of a scheduled hea
an inaction on the part of the Labor Arbiter or the NLRC, could easily delay the is
thereby setting at naught the strict mandate and noble purpose envisioned by Ar

What is the period within which to conduct pre-execution confere

Within two (2) working days from receipt of a motion for the issuance of a writ o
shall be accompanied by a computation of a judgment award, if necessary, the C
Labor Arbiter may schedule a pre-execution conference to thresh out matters rel
including the final computation of monetary award. The pre-execution conferenc
fifteen (15) calendar days from the initial schedule, unless the parties agreed to
order issued by the Labor Arbiter in the pre-execution conference is not appealab
remedies available under Rule XII (Extraordinary Remedies).

Is writ of execution necessary in case reinstatement is ordere

appeal?

Yes. While it is now well-settled that a writ of execution is not necessary to imple
reinstatement order issued by a Labor Arbiter upon a finding of illegality of dismi
executory, however, if the reinstatement order is issued by the NLRC on appeal,
secure a writ of execution from the Labor Arbiter a quo to enforce the reinstatem
employee.

What is the lifetime or effectivity of the writ of execution?

Five (5) years. In case of partial satisfaction of judgment during the lifetime of th
Arbiter shall motu proprio issue an updated writ reflecting the amount collected a
balance.

What is the effect of refusal of the bonding company or bank

deposit of the losing party to release the garnished amount?

If the bonding company refuses to pay or the bank holding the cash deposit of t
refuses to release the garnished amount despite the order or pertinent processes
Arbiter or the Commission, the president or the responsible officers or authorized
the said bonding company or the bank who resisted or caused the non-complian
cited for contempt, or held liable for resistance and disobedience to a person in a
agents of such person as provided under the pertinent provision of the Revised P
shall likewise apply to any person or party who unlawfully resists or refuses to co
open order issued by the Labor Arbiter or the Commission.
 What is the power of the DOLE Secretary to assume jurisdiction o
or certify it to the NLRC for compulsory arbitration?

The DOLE Secretary may assume jurisdiction over a labor dispute, or certify it to
compulsory arbitration, if, in his opinion, it may cause or likely to cause a strike o
industry indispensable to the national interest. The President may also exerc
assume jurisdiction over a labor dispute.

What is the effect of such assumption or certification of labor disp

The following are the effects: (a) on intended or impending strike or lo

enjoined even if a Motion for Reconsideration is filed; (b) on actual strike or lo
locked out employees should immediately return to work and employer should re
and (c) on cases filed or may be filed all shall be subsumed/absorbed by th
certified case except when the order specified otherwise. The parties to the cas
DOLE Secretary of pendency thereof.

May an injunction be issued in strike or lockout cases?

As a general rule, strikes and lockouts validly declared, enjoy the protection of la
enjoined unless illegal acts are committed or threatened to be committed in the
strikes or lockouts. Ordinarily, the law vests in the NLRC the authority to issue in
the commission of illegal acts during the strikes and pickets. This policy applies e
appears to be illegal in nature. The rationale for this policy is the protection exte
strike under the constitution and the law. It is basically treated as a weapon that
to employees for the advancement of their interest and for their protection.

What is the effect of defiance of assumption or certification order

order?

Non-compliance with the assumption/certification order of the Secretary of Labo

a return-to-work order issued pursuant thereto by either the Secretary or the NL
dispute is certified, is considered an illegal act committed in the course of the str

What is the prescriptive period for offenses penalized under the La

As a rule, the prescriptive period of all criminal offenses penalized under the Lab
Rules to Implement the Labor Codeis three (3) years from the time of commissio
criminal cases arising from ULP which prescribe within one (1) year from the tim
complained of were committed; otherwise, they shall be forever barred. The run
period, however, is interrupted during the pendency of the labor case.

What is the prescriptive period for money claims?

Prescriptive period is three (3) years from accrual of cause of action.

What is the prescriptive period for claims for allowances and othe

In cases of nonpayment of allowances and other monetary benefits, if it is estab

benefits being claimed have been withheld from the employee for a period longe
years, the amount pertaining to the period beyond the three-year prescriptive pe
prescription. The amount that can only be demanded by the aggrieved employee
the amount of the benefits withheld within three (3) years before the filing of the

What is the prescriptive period for illegal dismissal?

An action for illegal dismissal prescribes in four (4) years from accrual of cause o

What is the remedy of the party aggrieved by an order or resol

Arbiter?
A party aggrieved by any order or resolution of the Labor Arbiter including those
execution proceedings may file a verified petition to annul or modify such order o
petition may be accompanied by an application for the issuance of a temporary r
and/or writ of preliminary or permanent injunction to enjoin the Labor Arbiter, or
under his/her authority, to desist from enforcing said resolution or order.

What are the grounds of the petition for extraordinary remedies?

The petition filed under this Rule may be entertained only on any of the following
there is prima facie evidence of abuse of discretion on the part of the Labor Arbit
errors in the findings of facts are raised which, if not corrected, would cause grav
damage or injury to the petitioner; (c) if a party by fraud, accident, mistake or ex
has been prevented from taking an appeal; (d) if made purely on questions of la
or resolution will cause injustice if not rectified.

What are the requisites of the petition for extraordinary remedies

The petition for extraordinary remedies shall: (a) be accompanied by a clear orig
copy of the order or resolution assailed, together with clear copies of documents
to the said order or resolution for the proper understanding of the issue/s involve
arbitral docket number and appeal docket number, if any; (c) state the material
timeliness of the petition; (d) be verified by the petitioner himself/herself in acco
4, Rule 7 of the Rules of Court, as amended; (e) be in the form of a memorandu
the ground/s relied upon, the argument/s in support thereof and the reliefs pray
(3) legibly written or printed copies; and (g) be accompanied by certificate of no
proof of service upon the other party/ies and the Labor Arbiter who issued the o
being assailed or questioned; and proof of payment of the required fees.

What is unfair labor practice?

An unfair labor practice act violates the right of workers to self-organization

legitimate interests of both labor and management, including their right to barga
otherwise deal with each other in an atmosphere of freedom and mutual respect
peace and hinders the promotion of healthy and stable labor-management relatio

May elimination or diminution of benefits constitute demotion?

Yes. The illegal and unjustified elimination or diminution of certain benefits may
demotion. Under established jurisprudence, there is demotion where the act of t
in the lowering in position or rank or reduction in salary of the employee. It invo
where an employee is relegated to a subordinate or less important position const
to a lower grade or rank with a corresponding decrease in duties and responsibil
accompanied by a decrease in salary.

May elimination or diminution of benefits constitute constructive

Yes. Elimination or diminution of certain benefits may result in the constructive d

employee. Constructive dismissal is an involuntary resignation resorted to when
employment is rendered impossible, unreasonable or unlikely; when there is a de
and/or a diminution in pay; or when a clear discrimination, insensibility or disdain
becomes unbearable to the employee that it could foreclose any choice by him e
continued employment.

-oOo-
 2011 The National Labor Relations Commission, Republic of the Philippines