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.

Questions (PRESIDENTIAL DECREE NO. 21)

PD No. 21 was issued by President Ferdinand E. Marcos pursuant to his constitutional Commander-in-Chief powers and in connection with Proclamation No. 1081 and General Orders Nos. 1 and 5. Its stated purposes are to promote industrial peace, maximize productivity, and secure social justice.

The NLRC is established in the Department of Labor. It consists of three members: the Undersecretary of Labor (or his duly authorized representative) as Chairman, and the Director of Labor Relations and the Director of Labor Standards (or their duly authorized representatives) as members.

If the Undersecretary of Labor cannot attend, his duly authorized representative sits as a member. In that case, the Director of Labor Standards (or, in his absence, the Director of Labor Relations) acts as Chairman.

Under Section 2, the NLRC has original and exclusive jurisdiction over: (1) all matters involving employee-employer relations, including disputes and grievances that may otherwise lead to strikes and lockouts under RA 875; (2) all strikes overtaken by Proclamation No. 1081; and (3) all pending cases in the Bureau of Labor Relations.

They must first exhaust all steps in the grievance procedure in the applicable collective bargaining agreement or other mutually agreed dispute settlement means. The complaining party must show proof of failure to settle the issue under that procedure.

The decision of the NLRC is immediately executory unless appealed to the Secretary of Labor. The Secretary of Labor must act within five (5) days from filing. The Secretary’s decision is appealable to the President.

Outside Greater Manila Area, the NLRC may designate a representative who, together with a union representative and a management representative nominated by the immediate parties, will mediate, conciliate, and if necessary conduct a fact-finding investigation, submitting findings to the NLRC within five (5) days from commencement.

Upon promulgation of PD No. 21, all collective bargaining agreements must contain a provision designating a voluntary arbitrator (individual or committee) to decide all disputes and grievances arising from implementation of the CBA.

They must be amended to include the required arbitration provision, and the amendment must be reported immediately to the NLRC.

All lockouts are deemed illegal under PD No. 21.

It may administer oaths, issue subpoenas and subpoenas duces tecum, and hold any person in contempt for refusal to comply.

The Secretary of Labor designates mediators, fact-finders, representation officers, and other assistants, and this is done on the recommendation of the NLRC.

The NLRC must promulgate rules of procedure and regulations enabling it to resolve or terminate all cases within thirty (30) days from filing, and also rules governing collective bargaining.

On recommendation of the NLRC and Secretary of Labor, the President may order the arrest and detention of any person held in contempt for non-compliance and defiance of any subpoena, order, or decision issued by the NLRC under PD No. 21.

No employer may shut down the establishment or dismiss/terminate the services of regular employees with at least one year of service without the written clearance of the Secretary of Labor.

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


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