2011 NLRC Procedures on Labor Disputes

Policy and declared purposes

Rule I, Section 2 requires liberal construction to further constitutional and statutory objectives.
Rule VIII, Section 1 declares the policy of certification of labor disputes for compulsory arbitration to ensure and maintain industrial peace based on social justice and national interest by having full, complete, and immediate settlement or adjudication of all labor disputes and relevant incidents of the certified issues.
Rule VII, Section 11 authorizes the Commission, in the exercise of its jurisdiction, to exert efforts toward amicable settlement.
The rules emphasize speedy fact-finding through reasonable means, consistent with due process and labor justice goals.

Core definitions and key terms

Rule II, Section 1 provides that terms and phrases defined in Article 212 of the Labor Code, as amended, have the same meanings when used in these rules.
Rule II, Section 1 defines “Regional Arbitration Branch” as any of the NLRC’s regional arbitration branches or sub-regional branches.

Parties, pleadings, and service rules

Rule III, Section 1 treats a complaint or petition as a pleading alleging the complainant/petitioner’s causes of action.
Rule III, Section 1 requires listing the names and addresses of all complainants or petitioners and respondents in the complaint/petition.
Rule III, Section 1 requires the complaint/petition to be signed under oath by the complainant/petitioner with a declaration of non-forum (as stated in the rule’s requirement).
Rule III, Section 1 requires that if a party has more than one cause of action arising out of the same relationship, all causes of action be included in one complaint/petition.
Rule III, Section 2 requires naming the initiating party as “Complainant” or “Petitioner”, and the opposing party as “Respondent,” with the full names of all real parties in interest stated in the caption and decisions/resolutions/orders.

Filing, service, and proof of service

Rule III, Section 3 requires filing pleadings with the appropriate docketing unit of the Regional Arbitration Branch or the Commission, as applicable.
Rule III, Section 3 requires that the filing party serve opposing parties with a copy of the pleading and its supporting documents.
Rule III, Section 3 provides that no pleading is considered without proof of service to the opposing parties except when filed simultaneously during a schedule set before the Labor Arbiter.
Rule III, Section 4(a) requires personal service of notices and copies of resolutions/orders by a bailiff or duly authorized public officer within three (3) days from receipt, or service by registered mail or private courier.
Rule III, Section 4(b) requires decisions and final awards to be served on both parties and their counsel/representative by registered mail or private courier; it also provides a service rule for personal seeking of service through inquiry.
Rule III, Section 4(c) requires the server to submit a return within two (2) days stating the server’s name, persons served, date of receipt, and it must be attached to the records; if by courier/mail, the addressee name and date of receipt must be shown.
Rule III, Section 5 makes the return prima facie proof of the facts indicated; it also provides that service by registered mail/private courier is complete upon receipt.
Rule III, Section 5 provides that if the addressee fails to claim the mail within five (5) days from the date of first notice of postmaster, service takes effect after such time.

Appearances and authority to bind

Rule III, Section 6(a) presumes a lawyer appearing for a party is properly authorized and requires inclusion of the Attorney’s Roll Number, PTR, IBP numbers for the current year, and MCLE compliance in pleadings and motions.
Rule III, Section 6(b) allows an anon-lawyer to appear only if one of the listed conditions is met, including self-representation, representation of a legitimate labor organization with required certifications and resolutions, representation of members of such organization within the employer’s establishment with required certifications, accredited legal aid office representation with proof of accreditation, or authorized representation as owner/president of a corporation/establishment with required authorization proof and board resolutions/instruments.
Rule III, Section 6(c) provides that appearances by a non-lawyer contrary to the section are not recognized before the Labor Arbiter or the Commission.
Rule III, Section 6(d) allows appearances orally or in writing, requiring complete name and office address of counsel/authorized representative in the record and proper notification to the adverse party.
Rule III, Section 6(e) requires filing a notice of change of address, with copy furnished to the adverse party and counsel/representative, if any.
Rule III, Section 6(f) provides that any change or withdrawal of counsel/authorized representative must be made according to the Rules of Court.
Rule III, Section 7 provides that counsel/authorized representatives can bind clients in procedural matters but cannot, without a special power of attorney or express consent, enter into a compromise agreement discharging a client’s claim fully or partly.

Venue, assignment, consolidation, disposition

Rule IV, Section 1(a) allows filing of cases within the Regional Arbitration Branch having jurisdiction over the workplace of the complainant or petitioner.
Rule IV, Section 1(a) defines “workplace” as where the employee is regularly assigned at the time the cause of action arose, including where the employee is supposed to report back after temporary detail/assignment/travel; for field/ambulant/itinerant workers, workplace is where they regularly receive salaries/wage/work instructions and report results to the employer.
Rule IV, Section 1(b) requires that where two (2) or more branches have jurisdiction, the branch that first acquired jurisdiction excludes the others.
Rule IV, Section 1(c) deems the issue of improper venue waived if not objected to before filing position papers.
Rule IV, Section 1(d) allows transfer/change of venue by written agreement or by Commission/Labor Arbiter order upon motion by the proper party in meritorious cases.
Rule IV, Section 1(e) allows cases involving overseas Filipino workers to be filed where the complainant resides or where any respondent’s principal office is situated, at the option of the complainant.
Rule IV, Section 2(a) requires that complaints/petitions filed with the docketing unit be immediately raffled and assigned to a Labor Arbiter from receipt.
Rule IV, Section 2(b) makes the Executive Labor Arbiter responsible for immediate raffle/assignment and forwarding subsequent pleadings/motions.
Rule IV, Section 2(c) requires forwarding subsequent pleadings/motions to the Labor Arbiter within twenty-four (24) hours from receipt.
Rule IV, Section 3 mandates consolidation when multiple cases/complaints pending before different Labor Arbiters in the same Regional Arbitration Branch involve the same employer and common principal causes of action, or the same parties with different causes of action; the consolidated cases are disposed of by the Labor Arbiter to whom the first case was assigned.
Rule IV, Section 3 provides that objections to consolidation are resolved by the Executive Labor Arbiter, and the order resolving the motion/objection is inappealable.
Rule IV, Section 4(a) treats when a case is assigned to a Labor Arbiter, the entire case and all incidents are considered assigned and disposed of in the same proceedings to avoid multiplicity.
Rule IV, Section 4(a) requires, upon Labor Code procedures for assumption/jurisdiction over a strike/lockout by the Secretary and certification to the Commission, that parties inform the Secretary/Commission of all directly related cases pending before any Regional Arbitration Branch, and that the concerned Labor Arbiter forward the entire records within two (2) days for proper disposition.

Labor arbiter proceedings and case management

Rule V, Section 1(a) establishes the original and exclusive jurisdiction of Labor Arbiters over enumerated disputes involving all workers, whether agricultural or non-agricultural, including:
- Unfair labor practice cases;
- Termination disputes;
- Wage/time/conditions disputes filed with a claim for reinstatement when applicable;
- Claims for actual, moral, exemplary and other forms of damages arising from employer-employee relations;
- Violations of Article 264 of the Labor Code, including questions on the legality of strikes and lockouts;
- Employer-employee relation claims (excluding employee compensation, social security, Medicare, and maternity benefits) involving an amount exceeding Five Thousand Pesos (P5.000.00);
- Wage distortion disputes in unorganized establishments not voluntarily settled under Republic Act No. 6727;
- Enforcement of compromise agreements for non-compliance under Article 227 of the Labor Code;
- Overseas deployment money claims involving Filipino workers, including damages as provided by Section 10 of RA 8042, as amended by RA 10022;
- Other cases provided by law.
Rule V, Section 1(a) directs that cases arising from interpretation/implementation of collective bargaining agreements and cases involving interpretation/enforcement of company personnel policies be disposed of by referring them to grievance machinery and voluntary arbitration as provided in the agreements.
Rule V, Section 2 characterizes proceedings before Labor Arbiters as non-litigious; technicalities of law/procedure in courts do not strictly apply, subject to due process.
Rule V, Section 2 authorizes Labor Arbiters to use reasonable means to ascertain facts speedily, including ocular inspection and examination of well-informed persons.
Rule V, Section 3(a) requires the Labor Arbiter to issue summons within two (2) days from receipt of the complaint or amended complaint, attaching a copy of the complaint/petition and annexes if any.
Rule V, Section 3(a) requires summons to specify the date/time/place of the mandatory conciliation and mediation conference in two (2) settings.
Rule V, Section 4 sets summons service by a bailiff/duly authorized officer within three (3) days from receipt, or by registered mail/private courier authorized by the Commission; special circumstances may follow the Rules of Court.
Rule V, Section 4 requires return of service within two (2) days, stating server name, persons served, date of receipt, and it must be attached to the records.
Rule V, Section 5(a) prohibits the allowed pleadings/motions from being acted upon or elevated to the Commission, including:
- Motion to dismiss except for lack of jurisdiction over the subject matter, improper venue, res judicata, prescription, and forum shopping;
- Motion for a bill of particulars;
- Motion for new trial;
- Petition for Relief from Judgment;
- Motion to declare respondent in default;
- Motion for reconsideration of any decision or order of the Labor Arbiter;
- Appeals from interlocutory orders (including denial of specified motions and orders in execution-related contexts);
- Appeals from issuance of a certificate of finality;
- Appeals from orders issued in execution proceedings;
- Other pleadings/motions intended to circumvent these provisions.
Rule V, Section 6(a) permits the respondent to file a motion to dismiss before the mandatory conciliation/mediation conference date on the grounds permitted under Rule V, Section 5(a); the Labor Arbiter resolves it through a written order.
Rule V, Section 6(a) provides that an order denying a motion to dismiss or suspending its resolution until final determination is not appealable.
Rule V, Section 7(a) prohibits a motion to dismiss after the period provided in Rule V, Section 6(a).
Rule V, Section 8(a) requires the mandatory conciliation and mediation conference to aim to:
- Amicably settle on a fair compromise;
- Determine real parties in interest;
- Determine necessity of amending the complaint and including all causes of action;
- Define and simplify issues;
- Enter admissions/stipulations of facts;
- Thresh out preliminary matters.
Rule V, Section 8(a) mandates that the Labor Arbiter personally presides and may be assisted by a Labor Arbitration Associate.
Rule V, Section 8(b) requires continuous conciliation and mediation efforts throughout the mandatory conferences.
Rule V, Section 8(b) requires any agreement entered into to be reduced to writing and signed by parties and their counsel or authorized representatives.
Rule V, Section 8(c) requires the Labor Arbiter to approve the compromise after explaining terms and consequences, especially to complainants, and ensuring it is freely/voluntarily made and not contrary to law, morals, and public policy.
Rule V, Section 8(d) states that a compromise agreement duly entered in accordance with the section is final and binding and has the force/effect of a judgment rendered by the Labor Arbiter.
Rule V, Section 8(e) requires the mandatory conciliation/mediation conference to be terminated within thirty (30) calendar days from the date of the first conference, except for justifiable grounds.
Rule V, Section 8(f) allows postponement only on meritorious grounds and when filed at least three (3) days before the scheduled hearing.
Rule V, Section 9(a) requires the Labor Arbiter to proceed with the other purposes of the conference if parties fail to agree on settlement.
Rule V, Section 10(a) provides dismissal without prejudice if the complainant/petitioner fails to appear during both settings despite due notice.
Rule V, Section 10(a) provides that if the respondent fails to appear in the first conference, the second conference proceeds; if respondent still fails to appear after due summons, respondent is considered to have waived the right to file position paper, the Labor Arbiter terminates the conference, directs filing of verified position paper and submission of evidence, and then renders decision based on the evidence on record.
Rule V, Section 11(a) requires simultaneous verified position papers with supporting documents/affidavits within ten (10) calendar days from termination of the mandatory conciliation and mediation conference.
Rule V, Section 11(b) allows amendment of the complaint/petition after filing position papers only with leave of the Labor Arbiter.
Rule V, Section 11(c) requires position papers to cover only claims/causes of action in the complaint or amended complaint, with supporting documents including affidavits of witnesses that take the place of direct testimony, excluding claims amicably settled.
Rule V, Section 11(d) allows a reply within ten (10) days from receipt of the adverse party’s position paper on a date agreed upon in a schedule before the Labor Arbiter; replies must not allege/prove new causes of action or facts not raised in the original pleadings/position paper.
Rule V, Section 12(a) requires the Labor Arbiter, immediately after submission of position papers or reply, to determine motu proprio the need for a hearing or clarificatory conference, and authorizes clarificatory questions including possible subpoena/relevant documentary evidence if needed for determination.
Rule V, Section 13(a) requires the Labor Arbiter to personally conduct the hearing or clarificatory conference and take full control; it authorizes limited testimonial evidence with cross-examination and limits evidence to relevant matters.
Rule V, Section 13(b) requires the Labor Arbiter to produce a written summary of proceedings in consultation with parties, signed by parties, forming part of the records.
Rule V, Section 14 mandates continuous hearing/clarificatory conference preparation and generally prohibits postponement/continuance except on meritorious grounds subject to expeditious disposition; it requires termination of hearing/clarificatory conference within thirty (30) calendar days from the initial clarificatory conference.
Rule V, Section 14 provides ex-parte proceedings if parties fail to appear during hearing/clarificatory conference despite due notice, followed by submission for decision.
Rule V, Section 14 sets an aggregate limit for overseas Filipino workers: mandatory conciliation/mediation plus merits/hearing/clarificatory conference must not exceed sixty (60) days, reckoned from date the Labor Arbiter acquires jurisdiction over respondents.
Rule V, Section 15 deems the case submitted for decision upon position papers/replies filing or lapse of the period to submit them, unless Labor Arbiter calls a hearing/clarificatory conference; after termination, the case is submitted for decision.
Rule V, Section 16(a) allows voluntary inhibition of a Labor Arbiter with written legal justifications.
Rule V, Section 16(a) allows inhibition upon motion of a party on grounds of relationship within the fourth civil degree of consanguinity or affinity with adverse party or counsel, or on question of partiality or other justifiable grounds; the motion is resolved within five (5) days; orders granting/denying inhibition are inappealable.
Rule V, Section 17(a) requires Labor Arbiter to decide within thirty (30) calendar days without extension after submission for decision, even absent stenographic notes; overseas Filipino worker cases must be decided within ninety (90) calendar days after filing of the complaint.
Rule V, Section 18(a) requires decisions/orders to be clear and concise and to state: facts, issues, applicable laws/rules, conclusions and reasons, and specific remedy; monetary awards must contain the amount awarded.
Rule V, Section 18 requires if reinstatement is ordered: it must state reinstatement is immediately executory and direct employer to submit a compliance report within ten (10) calendar days from receipt.
Rule V, Section 19(a) provides that if no appeal is filed within the time under Article 223 of the Labor Code and Section 1, Rule VI, the decision/order becomes final and executory after ten (10) calendar days from receipt by counsel/authorized representative or by parties if not assisted by counsel.
Rule V, Section 19(a) requires the Labor Arbiter to issue a certificate of finality upon expiration of the period; it also allows certificate issuance after sixty (60) calendar days from date of mailing when proof/return cards/certifications are unavailable.
Rule V, Section 20(a) allows revival/re-opening of a dismissed-without-prejudice case within ten (10) calendar days from receipt of dismissal notice; otherwise, remedy is re-filing.
Rule V, Section 20(a) allows a party declared to have waived the right to file position paper to file a motion under oath to set aside the waiver at any time after notice and before case submission for decision upon proper showing that failure to appear was due to justifiable and meritorious grounds.

Appeals to the Commission

Rule VI, Section 1(a) provides that Labor Arbiter decisions/awards/orders become final and executory unless appealed within ten (10) calendar days from receipt; decisions/resolutions of the Regional Director under Article 129 must be appealed within five (5) calendar days.
Rule VI, Section 1(a) provides that if the last day falls on Saturday, Sunday or holiday, the last day to perfect the appeal is the first working day after.
Rule VI, Section 1(a) prohibits motions/requests for extension to perfect an appeal.
Rule VI, Section 2(a) limits appeal grounds to:
- Prima facie evidence of abuse of discretion;
- Fraud or coercion, including graft and corruption;
- Purely questions of law; and/or
- Serious errors in findings of fact causing grave or irreparable damage or injury.
Rule VI, Section 3(a) requires filing the appeal in the Regional Arbitration Branch or Regional Office where the case was heard/decided.
Rule VI, Section 4(a) requires appeal perfection by:
- Timely filing within the reglementary period;
- Verification by the appellant personally under Section 4, Rule 7 of the Rules of Court;
- A memorandum of appeal stating grounds, arguments, relief prayed for, and date received;
- Three (3) legibly typewritten or printed copies;
- Payment of required appeal fee and legal research fee, with proof of payment as part of record;
- Posting of a cash or surety bond as provided in Section 6;
- Proof of service upon the other parties.
Rule VI, Section 4(b) provides that a mere notice of appeal without complying with the other requisites does not stop the running of the appeal perfection period.
Rule VI, Section 4(c) allows appellee to file an answer/reply within ten (10) calendar days from receipt; failure to file may be construed as waiver.
Rule VI, Section 4(d) requires the Commission, upon perfection, to limit review and decision to the specific issues elevated on appeal.
Rule VI, Section 5(a) requires paying the prevailing appeal fee and legal research fee to the Regional Arbitration Branch/Regional Office of origin, with the official receipt forming part of the records.
Rule VI, Section 6(a) conditions employer perfection of appeal from a monetary award upon posting a bond equivalent to the monetary award exclusive of damages and attorney’s fees, in the form of cash deposit or surety bond.
Rule VI, Section 6(a) requires surety bonds to be issued by a reputable bonding company duly accredited by the Commission or the Supreme Court, with specified accompanying documents including joint declaration under oath, indemnity agreement, proof of security deposit/collateral (checks not acceptable), Insurance Commission certificate, SEC certificate, Supreme Court accreditation/authority, and notarized board resolution showing authorized signatories.
Rule VI, Section 6 allows the Commission through the Chairman to blacklist a bonding company on justifiable grounds notwithstanding Supreme Court accreditation.
Rule VI, Section 6 provides that cash/surety bonds are valid and effective from date of deposit/posting until final disposition/termination or satisfaction of the award, and the condition is deemed incorporated in surety bond terms.
Rule VI, Section 6 requires furnishing appellee with a certified true copy of the surety bond and supporting documents so appellee can verify genuineness and immediately report irregularities to the Commission.
Rule VI, Section 6 requires dismissal of the appeal if the Commission finds bond irregular or not genuine, and it authorizes censure, reasonable fine/penalty, and potential blacklisting of the bonding company.
Rule VI, Section 6 prohibits entertaining motions to reduce bond except on meritorious grounds and upon posting of a bond in a reasonable amount related to the monetary award.
Rule VI, Section 6 provides that filing a motion to reduce bond without complying with the requisites does not stop the appeal period.
Rule VI, Section 7(a) requires appellate records to include an index listing originals and essential items, including complaint, pleadings/motions, minutes/transcripts if any, decisions/orders/resolutions and proof of service if available, award computation, memorandum of appeal and reply/answer with proof of service if available, official receipt of appeal fee, and appeal bond if any.
Rule VI, Section 8(a) requires transmittal of records to the Commission within forty-eight (48) hours after filing the appeal.
Rule VI, Section 9(a) states that once an appeal is filed, the Labor Arbiter loses jurisdiction, and all pleadings/motions on the appealed case must be addressed to and filed with the Commission, subject to immediate reinstatement pending appeal under Section 6 of Rule XI.
Rule VI, Section 10(a) provides that no appeal from an interlocutory order shall be entertained; to discourage frivolous or dilatory appeals, the Commission may censure/cite in contempt or impose reasonable fine/penalty after hearing.
Rule VI, Section 11(a) applies the appeal rules in these rules to appeals to the Commission from decisions/orders of other offices/agencies appealable to the Commission under law.

Commission proceedings and internal structure

Rule VII, Section 1(a) grants the Commission exclusive, original, and appellate jurisdiction in accordance with law.
Rule VII, Section 2(a) provides that the Commission is composed of the Chairman and twenty three (23) Commissioners, unless otherwise provided by law.
Rule VII, Section 2(b) provides that the Commission en banc sits only for promulgating rules governing hearings/disposition by Divisions and Regional Arbitration Branches, for formulation of policies affecting administration/operations, and may temporarily or on an emergency basis allow cases within a Division’s jurisdiction to be heard by another Division if the docket allows and the transfer does not expose litigants to unnecessary additional expense.
Rule VII, Section 2(c) provides the Commission exercises adjudicatory and other powers through eight (8) Divisions, each consisting of one member from the public sector as Presiding Commissioner and one member each from the workers and employers sectors.
Rule VII, Section 2(c) assigns territorial exclusivity over appealed cases:
- Divisions First through Sixth for Luzon;
- Seventh Division for Visayas;
- Eighth Division for Mindanao, including the Autonomous Region for Muslim Mindanao.
Rule VII, Section 2(d) sets headquarters: Commission and Divisions for Luzon have main offices in the National Capital Region; the Seventh and Eighth Divisions in Cebu and Cagayan de Oro, respectively.
Rule VII, Section 3(a) provides that the Chairman presides over Commission en banc and acts as Presiding Commissioner of the First Division; in effective absence/incapacity, the Presiding Commissioner of the Second Division acts as Acting Chairman.
Rule VII, Section 4(a) requires a quorum of a majority of all members for Commission en banc; majority concurrence is required for en banc decisions