Title
Amendment to Commonwealth Act No. 103 on Industrial Relations
Law
Commonwealth Act No. 559
Decision Date
Jun 7, 1940
Commonwealth Act No. 559 establishes the Court of Industrial Relations in the Philippines, granting it jurisdiction over disputes between employers and employees, landlords and tenants, and providing guidelines for strikes and lockouts, inspections, and civil liability.

Questions (Commonwealth Act No. 559)

The Court of Industrial Relations has jurisdiction over questions, matters, controversies, or disputes arising between (and/or affecting) employers and employees or laborers, and landlords and tenants or farm-laborers, including regulating their relations, and it covers the entire Philippines.

It consists of a presiding judge and four associate judges, appointed by the President with the consent of the Commission on Appointments of the National Assembly, holding office during good behavior until age 70 or incapacity.

The judges sit together; at least three of the five judges must concur for the pronouncement of a decision, order, or award.

The Secretary of Justice may designate such number of judges of the Court of First Instance as necessary to sit temporarily as judges of the Court of Industrial Relations until the case is ready for decision, order, or award.

Disputes causing or likely to cause a strike or lockout arising from differences as regards wages, shares/compensation, dismissals, lay-offs, suspensions, hours of labor, or conditions of tenancy/employment. The disputes may be submitted by the Secretary of Labor or by either or both parties.

The questions to be decided must be clearly and specifically stated in writing.

The Court must endeavor to reconcile the parties and induce them to settle the dispute by amicable agreement.

It must be in writing, signed and acknowledged by the parties before a judge or authorized official who can administer oaths/acknowledge, or before a notary public; then it is filed with the Clerk of Court. Unless otherwise ordered by the Court, it has the same effect as a decision or award as between the parties.

It may administer oaths; summon parties; issue subpoenas; require witness attendance and testimony; and require production of books, papers, contracts, records, statements of accounts, agreements, and statements material to a just determination. It may delegate these powers to boards/persons acting for the Court.

Any violation of an order, award, or decision after it becomes final, conclusive, and executory constitutes contempt of court.

The complaint must be in writing, signed and filed with the Clerk of Court by the Attorney of the Court or other officer/employee designated by it, or any provincial or city attorney designated by the Secretary of Justice.

The manager or person in charge of management, and the officers or directors who ordered or authorized the violation or contempt.

The president or duly authorized representative who caused the act resulting in the contempt when the union/group directs or assumes representation of those persons.

Contempt proceedings are without prejudice to the criminal liability of the offender under Section 24 of the Act.

After the award/order/decision, at the expiration of ten days, judgment shall be entered accordingly unless within those ten days an aggrieved party appeals to the Supreme Court by certiorari. The appeal does not stay execution unless special reasons are ordered by the Court.

Execution may be stayed for special reasons. The Court may require the appellant to deposit with the clerk the amount of salaries/wages due, or provide security in kind, to ensure compliance if affirmed; it may also require weekly deposits equivalent to wages/salaries earned during the appeal, especially where reinstatement/readmission is decreed. Failure to deposit vacates the stay.

The Supreme Court may, in its discretion, upon petition and for questions of law, require by certiorari that the case be certified to it for review. After final determination of issues, the Clerk of the Supreme Court transmits a certified copy. Upon receipt, it becomes conclusive, final, and executory. If exceptions are sustained, judgment is entered setting aside the award/order/decision, wholly or partly.

While the dispute is pending settlement/arbitration, or during Presidential investigation for minimum wage/share, the employee/tenant/laborer must not strike or walk out when enjoined by the Court after hearing when public interest so requires; if they already did so, they must return upon Court order after hearing when public interest requires or the dispute cannot be promptly decided. During pendency, the employer/landlord must refrain from accepting other employees/tenants/laborers unless with express Court authority, and must permit continuation under the last terms existing before the dispute arose.

Employers generally are not allowed to engage the services of strikebreakers within fifteen days after the declaration of the strike, except employers engaged in public services or businesses coupled with public interest.

No employer/landlord shall suspend, lay-off, or dismiss an employee/laborer/tenant/farm-laborer without just cause from the time a labor organization/group files a petition or complaint likely to cause a strike or lockout, and while an industrial or agricultural dispute is pending before the Court. If proved, the Court may direct reinstatement and payment of salary/wages during the suspension/dismissal period or amounts they should have received.


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