Title
Creation of National Labor Relations Commission
Law
Presidential Decree No. 21
Decision Date
Oct 14, 1972
Presidential Decree No. 21 establishes the National Labor Relations Commission (NLRC) with jurisdiction over employee-employer relations and the power to resolve disputes and grievances, ensuring fair labor practices and collective bargaining in the Philippines.

Q&A (PRESIDENTIAL DECREE NO. 21)

A National Labor Relations Commission was created in the Department of Labor.

It is composed of three members: the Undersecretary of Labor or his duly authorized representative as Chairman, the Director of Labor Relations, and the Director of Labor Standards or their duly authorized representatives.

His duly authorized representative shall sit as a member, and the Director of Labor Standards or, in his absence, the Director of Labor Relations shall act as Chairman.

The Commission has original and exclusive jurisdiction over: 1) all matters involving employee-employer relations including disputes and grievances that may lead to strikes and lockouts, 2) all strikes overtaken by Proclamation No. 1081, and 3) all pending cases in the Bureau of Labor Relations.

Parties must first exhaust all steps in the grievance procedure provided in the applicable collective bargaining agreement or use other agreed dispute settlement methods before raising the issue to the Commission.

Before assuming jurisdiction, the Commission or representative must offer parties the chance to submit the dispute for voluntary arbitration. If parties fail to agree on an arbitrator, the Commission can designate one or act as arbitrator itself.

Yes, the decisions are immediately executory unless appealed to the Secretary of Labor, who must decide within five days. This decision can be further appealed to the President.

They have the power to administer oaths, issue subpoenas and subpoenas duces tecum, and hold persons in contempt for refusal to comply.

All collective bargaining agreements must include a provision designating a voluntary arbitrator for disputes arising from the agreement. Existing agreements without this provision must be amended accordingly and reported to the Commission.

All lockouts are deemed illegal under this Decree.

The President of the Philippines can order arrest and detention on recommendation of the Commission and Secretary of Labor.

No. An employer cannot shut down the establishment or dismiss/terminate regular employees with at least one year of service without written clearance from the Secretary of Labor.

The Commission shall promulgate procedural rules to resolve or terminate all cases within thirty (30) days from filing.

All existing laws, orders, and regulations contrary to or inconsistent with PD No. 21 are repealed.


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