Labor Dispute Jurisdiction Guide
Labor Dispute Jurisdiction Guide
There is here a
                                                        simple action for damages for tortuous acts
CBA; Implementation & Interpretation                    allegedly committed by the defendant. Such
                                                        being the case, the governing statute is the Civil
How are cases arising from the Interpretation or        Code and not the Labor Code. (Medina v. Castro-
implementation      of    collective                    Bartolome, 116 SCRA 597)
       bargaining agreements handled and
disposed?                                               2. According to the Labor Code (in Article 217
                                                        (a) 4), the Labor Arbiter has original and
Through the grievance machinery and if not              exclusive jurisdiction to hear and decide,
resolved by the grievance machinery, through            among others, claims for actual, moral,
voluntary arbitration.                                  exemplary and other forms of damages arising
                                                        from the employer- employee relations.
Bureau of Labor         Relations;    Compromise
Agreement                                               The claim for damages in the case in question
                                                        arose from the fact that the President of the
May the NLRC or the courts take jurisdictional          Company shouted invectives at the employee in
cognizance          over            compromise          the presence of employees and visitors for a
agreements/settlements involving labor matters?         minor infraction she committed. If the infraction
                                                        has something to do with her work, then, the
No, any compromise agreement, including those           claim for damages could be considered as
involving labor standards laws, voluntary agreed        arising from employer-employee relations. Thus,
upon by the parties with the assistance of the          the claim is under the exclusive jurisdiction of
Bureau or the regional office of the Department of      the Labor Arbiter.
labor, shall be final and bidding upon the parties.
The national Labor Relations Commission or any          Dismissal; Intl Agency
court shall not assume jurisdiction over issues
involved therein except in case of non-                 1. The defense that I will put up will be to claim
compliance thereof or if there is prima facie           that being an international agency, the ILO
evidence that the settlement was obtained               enjoys      immunity,        namely      functional
through fraud, misrepresentation, or coercion           independence and freedom from control of the
(Art. 227, Labor Code).                                 state in whose territory its office is located and
                                                        is thus beyond the jurisdiction of the Labor
Damages;         Absence         of      E-E            Arbiter. (Southeast Asian Fisheries Development
Relationship                                            Center - Aqua Culture Department, et al vs.
                                                        National Labor Relations Commission, et al G.R
The damage suit filed by the manager against            No, 86773, 14 February 1992)
Pablo does not arise from employer-employee             2. If I were the Labor Arbiter. I will grant the
relationship. While the case involves an employer       motion to dismiss. The ILO being an International
and his employee, it is not the employer-               agency, the same is beyond the jurisdiction of
employee relationship between the two that gives        the Labor Arbiter and immune from the legal
rise to the damage suit. Instead, it is based solely    writs and processes of the administrative
on an alleged tort which could give rise to a           agencies of the country, where it is found, for
damage suit under the Civil Code. Thus, the             the reason that the subjection of such an
Labor Arbiter has no jurisdiction over the damage       organization to the authority of the local
suit.                                                   agencies would afford a convenient medium
                                                        through which the host government may
Damages;      Not    arising     from    the    E-E     interfere in its operations or even influence or
Relations                                               control its policies and decisions, and besides,
                                                        such subjection to local jurisdiction would
1. It is a regular court and not a Labor Arbiter that   Impair the capacity of such body to impartially
has jurisdiction on the suit for damages.The            discharge its responsibilities.
damages are not arising from the employer-              Intra-corporate Matters/Officers
employee relations which would have placed the
suit under the jurisdiction of a Labor Arbiter. The     The dismissal of an Executive Vice-president of a
suit arises from the fact that the President of the     Corporation, who is a corporate officer, by the
company shouted invectives at the employee in           Board of Directors of the corporation is not a
the presence of employees and visitors. Her             termination dispute under the Jurisdiction of a
complaint for damages is against an officer of the      Labor Arbiter. It is an intra-corporate dispute that
Company       based     on   slanderous    language     is under the jurisdiction of the Securities and
allegedly made by the latter. This falls under the      Exchange Commission.
                                                      2. By perfecting an appeal, through the filing an
 Intra-corporate Matters/Officers                     Appeal Memorandum within 10 days from receipt
                                                      of such decision, verified by the appellant and
 The election of as Vice President of New Wave        accompanied by his Non-Forum Certification,
 Beauty Shop, Inc, made him a corporate officer.      proof of service on the other party, proof of
                                                      payment of the appeal fee and cash or surety
 His subsequent dismissal as such corporate           bond in the amount equivalent to the monetary
 officer is considered an intra-corporate matter.     award of the judgment appeal from bond issued
 Thus, the dismissal is not a case of a termination   by a reputable bonding company duly accredited
 dispute which is under the Jurisdiction of a         by the Commission in the amount equivalent to
 Regional Branch of the NLRC. Instead, it is under    the m onetary award in the judgment appealed
 the Jurisdiction of the Securities and Exchange      from (Art. 223, Labor Code).
 Commission, it having jurisdiction over intra-
 corporate matters.                                   3. By perfecting an appeal, through the filing an
                                                      Appeal Memorandum within 10 days from receipt
Labor Arbiter                                         of such decision, verified by the appellant and
                                                      accompanied by his Non-Forum Certification,
Labor Arbiters have original and exclusive            proof of service on the other party, proof of
jurisdiction over:                                    payment of the appeal fee and cash or surety
 1. unfair labor practices;                           bond in the amount equivalent to the monetary
 2. termination disputes;                             award    of    the   judgment     appeal     from
 3. cases accompanied with a claim for                Reinstatement is immediately executor (Art. 223,
     reinstatement, and involving wages, rates        Labor Code).
     of pay, hours of work, and other terms and
     conditions of employment;
 4. claims for actual, moral, exemplary and           Labor Arbiter; Compromise Agreement
     other forms of damages arising from
     employer-employee relations:                     May a decision of the Labor Arbiter which has
 5. cases arising from any violation of Article       become final and executory be novated through a
     264 of the Labor Code, including questions       compromise agreement of the parties?
     involving the legality of strikes and lockout;
     and                                              1. Yes, although Article 221 of the Labor Code
 6. except claims of Employees Compensation,          requires the Labor Arbiter to exert all efforts to
     Social Security. Medicare and maternity          amicably settle the case before him on or
     benefits, all other claims arising from          before the first hearing, it must be noted that
     employer-employee       relations    including   neither the Labor Code nor its implementing rule
     those persons in domestic or household           as well as the NLRC Rules prohibit the amicable
     service, Involving an amount exceeding five      settlement of cases during the pendency of the
     thousand pesos (P5,000 00) regardless of         proceeding or after a judgment is issued
     whether accompanied with a claim for             thereupon.
     reinstatement.
                                                      The established rule is that the compromise
Labor Arbiter; Appeals                                agreement or amicable settlement may still be
                                                      made even after the judgment has become final
Procedurally, how do you stay a decision, award       and executor. Settlement of case is encourage
or order of the Labor Arbiter?                        abs authorized by law. Article 2040 of the Civil
                                                      Code impliedly authorizes this. It is even
1. Decisions, awards, or orders of the Labor          encourage by express provision of law.
Arbiter may be stayed by filing an appeal to the
Commission by any or both parties within ten (10)     2. Yes, provided that the same is not
calendar days from receipt of such decisions,         unconscionable,  and   the    agreement   was
awards, or orders.In case of appeal of on             approved by the Labor Arbiter, the NLRC or the
judgment involving a monetary award, it may           Court of Appeals, before whom the case is
only be stayed upon the posting of a cash or          pending.
surety bond issued by a reputable bonding
company duly accredited by the Commission in          3. Yes, provided that the new agreement is not
the amount equivalent to the monetary award in        tainted with fraud duress or undue influence.
the judgment appealed from (Art. 223, Labor
Code).                                                Labor Arbiter;     Execution    Order;    Appeal
                                                      (2007)
Cite two instances when an order of execution          Labor Arbiter; Labor Disputes; Barangay
may be appealed                                        Lupong Tagapamayapa
Or; a. When its execution becomes impossible or        2. Under Article 217 of the Labor Code, the Labor
unjust, it may be modified or altered on appeal or     Arbiter    exercises    original  and    exclusive
harmonize the same with justice and the facts          jurisdiction to hear and decide cases involving all
(Torres v. NLRC, 339 SCRA 311 [2001]).                 workers, whether agricultural or non-agricultural.
b. Supervening events may warrant modification         3. P.D. 1508 does not apply to labor dispute
in the execution of the judgment, as when              because labor cases have their own grievance
reinstatement is no longer possible because the        and mediation processes.
position was abolished as a cost-cutting measure
due to losses (Abalos v. Philex Mining Corp., 393      Labor Arbiter; Money Claims (2009)
SCRA 134 [2000]).
                                                       1. The Labor Arbiter has jurisdiction. Section 10,
                                                       R.A. No. 8042, reads:
Labor Arbiter; ULP; Damages and Reliefs                Can a dispute falling within the exclusive
                                                       jurisdiction of the Labor Arbiter be submitted to
Article 247 of the Code, the civil aspects of all     voluntary arbitration? Why or why not?
cases involving unfair labor practices, which may
include claims for damages and other affirmative       Yes, provided that the parties to the dispute
relief, shall be under the jurisdiction of the labor   falling within the exclusive jurisdiction of the
arbiters. (National Union of                          Labor Arbiter states in unequivocal language that
                                                       they conform to the submission of said dispute to
Bank Employees v. Lazaro, G.R. No. 56431,              the voluntary arbitration (Vivero v. CA, G.R. No .
January 19, 1988). Besides, what the parties have      138938, October 24, 2000).
is a labor dispute as defined in Article 212 (I) of
the LaborCode regardless of whether the
disputants stand in the proximate relation of
employer and employee.
Natl Labor Relations Commission                        The provisions of P.D. No. 1508 requiring the
                                                        submission of disputes before the Barangay
1. The review power of the NLRC in perfected            Lupong Tagapayapa prior to their filing with the
appeals is limited only to those issues raised on       court or other government offices are not
appeal. Hence, it is grave abuse of discretion for      applicable to labor cases.
the NLRC to resolve issues not raised on appeal
(United Placement International v. NLRC, 221            Article 129 of the Labor Code empowers the
SCRA 445 [1993]).                                       Regional Director to hear and decide any matter
                                                        involving the recovery of wages and other
2. In the exercise of its jurisdiction, the NLRC is     monetary claims and benefits owing to an
empowered to determine even the issues not              employee or person employed in domestic or
raised on appeal in order to fully settle the issues    household service, provided that the money
surrounding the case [See: Art. 218(e), now Art.        claim does      not     exceed      P5.OOO.OO.
224(e)].                                                (Montoya      vs .Escayo, G.R. Nos, 82211-12,
                                                        March 21. 1989)
Overseas Employment; Claim; Torts
                                                        Remedies; illegal dismissal
In Tolosa v. NLRC, (G.R. 149578, April 10,2003),
the Supreme Court held that what we have in this        An   employee     can    file   a   Motion  for
case is a claim arising from tort or quasi-delict. In   Reconsideration with the NLRC after ten (10)
such a situation, the seaman who died on                calendar days from receipt of the decision.
November 18, 1992, cannot sue before the Labor
Arbiter. But this will not apply now, as under Sec.     If   the    NLRC    denies    the    Motion     for
10, R.A. 8042, [effective June 7, 1995], what we        Reconsideration, BOI can file a petition for
have is a claim "arising out of an employer-            certiorari with the Court of Appeals under Rule
employee relationship or by virtue of any law or        65 of the Rules of Court since the decision of the
contract involving Filipino workers for overseas        NLRC is final and executory.
deployment including claims for actual, moral,
exemplary and other forms of damages",                  The same remedy is available to a party to the
cognizable by the "Labor Arbiters of the National       case, pursuant to the Labor Code (Article 223)
Labor Relations Commission" (NLRC) who have             and the Rules of Court (Rule 65). If one did not
the original and exclusive jurisdiction thereon.        appeal, he cannot avail of the remedy.
Overseas Employment; Mandatory
Remittance; Foreign Exchange                            Secretary of Labor; Authority
Can an overseas worker refuse to remit his              The Secretary of Labor and Employment has the
earnings to his dependents and deposit the same         authority to approve a policy dealing with the
in the country where he works to gain more              retirement of flight attendants of airlines.
interests?
                                                        Article 132 (d) of the Labor Code provides that
the Secretary of Labor and Employment shall            the dispute and decide it or certify it to the NLRC
establish standards that will ensure the safety        for compulsory arbitration (Art. 263[g], Labor
and health of women employees, including the           Code). This extraordinary authority given to the
authority to determine appropriate minimum age         Secretary of Labor is aimed at arriving at a
and other standards for retirement or termination      peaceful and speedy solution to labor disputes,
in special occupations such as those of flight         without jeopardizing national interests (Steel
attendants and the like.                               Corporation v. SCP Employees Union, 551 SCRA
        CAVEAT:                                        594 [2008]). Such assumption shall have the
        It could be argued that Article 132 (d)        effect of automatic enjoining an impending strike
        may be unconstitutional because this           or lockout, or an order directing immediate return
        may constitute discrimination in violation     to work and       resume operations, if a strike
        of the spirit of Section 14 of Article XIII    already took place, and for the employer to re-
        of the Constitution which provides that        admit all employees under the same terms and
        the State shall protect working women by       conditions prevailing before the strike or lockout
        providing safe and healthful working           (Art. 263(g), Labor Code; Sec. 15, Rule XXII, Dept.
        conditions, taking into account their          Order No. 40-G-03).
        maternal functions, and such facilities
        and opportunities that will enhance their      Sec. of Labor;       Assumption      over    Labor
        welfare and enable them to realize their       Dispute (2010)
        full potential in the service of the nation.
                                                       The Secretary of Labors order will be inconsistent
Secretary of Labor; Dismissal of Employees             with the established policy of the State of
                                                       enjoining the parties from performing acts that
The Secretary of Labor and Employment has the          undermine the underlying principles embodied in
authority to enjoin an employer from terminating       Article 263(g) of the Labor Code.
the employment of workers.
                                                       In this case, excepting the employees terminated
The Labor Code (in Article 377(b) provides that        due to redundancy form those who are required
the Secretary of Labor and Employment may              to return-to-work, which was the very labor
suspend the effectivity of the termination of          dispute that sparked the union to strike, the
workers pending the resolution of a labor dispute      Secretary of Labor comes short of his duty under
in the event of a prima facie finding of an            Article 263(g) to maintain status quo or the terms
appropriate official of the Department of Labor        and conditions prevailing before the strike. In
and Employment before whom such dispute is             fact, the Secretary could be accused of disposing
pending that the termination may cause a               of the parties labor dispute without the benefit of
serious labor dispute or is in implementation of a     a hearing, in clear derogation of due process of
mass lay off.                                          law.
                                                       Sec. of Labor; Assumption over Labor
Sec. of    Labor;    Assumption      over    Labor     Dispute
Dispute
                                                       There was a defiance of the assumption order of
The power of the Secretary of Labor under Article      the Secretary of Labor by the union. The
263(g) is plenary. He can rule on all issues,          assumption order is immediately executory.
questions or controversies arising from the labor      Following an assumption order by the strikers is
dispute, including the legality of the strike, even    not a matter of option or voluntarinesss but of
those over which the Labor Arbiter has exclusive       obligation on their part (Marcopper Mining
jurisdiction  (Bangong     Pagkkaisa     ng    mga     Corporation v. Brillantes, G.R. No. 119381, March
Manggagawa       sa   Triumph    International    v.   11, 1996; Art. 264[a], Labor Code).
Secretary, G.N. No. 167401 and 167407, July 5,
2010).                                                 Sec. of Labor; Assumption            over    Labor
                                                       Dispute; National Interest
Sec. of    Labor;    Assumption      over    Labor
Dispute                                                Although the Secretary of Labor has wide
                                                       discretion in exercising jurisdiction over labor
The Secretary of Labor and Employment has              dispute, he may not enjoin the strike because
plenary power to assume jurisdiction under             SDSs is not indispensable to the national interest
Article 263(g) of the Labor Code. When in his          (Art. 263[g], Labor Code).
opinion, there exists a labor dispute causing or
likely to cause a strike or lockout in an industry     Voluntary Arbitrator
indispensable to the national interest, the
Secretary of Labor may assume jurisdiction over        State the cases when a labor dispute would fall
under the Jurisdiction of voluntary arbitrators or    personnel policies which were initially processed
panel of voluntary arbitrators.                       at the various steps of the plant-level Grievance
                                                      Procedure under the parties collective bargaining
A labor dispute falls under the jurisdiction of a     agreements, fall within the original and exclusive
voluntary arbitrator or a panel of voluntary          jurisdiction of the voluntary arbitrator pursuant to
arbitrator if a labor disputes arises from an         Article 217 (c) of the Labor Code.
unresolved grievance which in turn arises from
the interpretation or implementation of a             2. The Regional Trial Court has jurisdiction to hear
Collective Bargaining Agreement or of company         and decide the prohibitory injunction case filed by
personnel policies. [Art. 261)                        Union X against Company C to enjoin the latter
                                                      from implementing the memorandum-policy
Upon agreement of parties, a voluntary                against use of cell phones in the factory. What is
arbitrator or panel of voluntary arbitrators may      at issue in Union Xs challenge against the
also hear and decide all other labor disputes         validity and constitutionality of the cell phone ban
including unfair labor practices and bargaining       being implemented by Company C. the issue,
deadlock. (Art. 262)                                  therefore, does not involve the interpretation of
                                                      the memorandum-policy, but its intrinsic validity
Voluntary Arbitrator                                  (Haliguefla v. PAL, 602 SCRA 297 [2009]).
1. Distortion of the wage structure within an         Or; If his award has not yet become final and
                                                      executor within the 10 day period from receipt of
establishment arising from any prescribed wage
                                                      the copy of the award by the parties, the
increase because of a law or wage order which         Voluntary Arbitrator could still modify his original
any Regional Board issues (Art. 124, Labor Code);     award.
and
                                                      2. The Voluntary Arbitrator has no authority to
2. Interpretation and implementation of the           modify his original award. Acting on a Motion for
parties collective bargaining agreement and          Clarification, he could only clarify his award. It is
those arising from the interpretation or              in excess of his jurisdiction to go beyond
enforcement of company personnel policies (Art.       clarifying his award by radically modifying and in
217, as amended by R.A. 6715; Art. 260, Labor         fact increasing the award.
Code; Navarro III v. Damasco, G.R. No. 101875,
July 14, 1995).                                       Or; Such authority has disappeared upon
                                                      rendition of an award which is final, inappealable
Voluntary Arbitrator; Voluntary Arbitration;          and executor by stipulation of the parties.
Compulsory Arbitration (2008)