Revised Rules of the NLRC Labor Arbitration

Authority, seal, and interpretive framework

The National Labor Relations Commission uses a circular seal inscribed with “National Labor Relations Commission,” and “Republic of the Philippines,” and featuring the coat of arms of the Ministry of Labor and Employment.
Terms and phrases defined in Article 212 of the Labor Code are given the same meanings when used in these rules, as far as practicable.
“Commission” in these rules refers only to the NLRC en banc or to any of its Divisions.
In the absence of an applicable provision, the pertinent provisions of the Revised Rules of Court and prevailing jurisprudence may be applied by analogy or suppletorily when practicable and convenient to achieve expeditious labor justice.

Parties, captions, summons, service

The party initiating a case in the Commission or any Regional Arbitration Branch is called the complainant or petitioner, and the opposing party is the respondent.
The captions of original pleadings, resolutions, orders, and decisions, and the necessary summons, notices, and processes must state the full names of all real parties in interest, whether natural or juridical persons or authorized entities.
The caption format includes: Republic of the Philippines, Ministry of Labor and Employment, National Labor Relations Commission, Regional Arbitration Branch No. ______, City/Province, the names of the complainant/petitioner and respondent, an NLRC Case No. with Mo. No. Yr., and the nature of the action (e.g., “Unfair Labor Practice,” “Money Claims,” “Termination Cases”).
If a complainant or petitioner has more than one cause of action against the same respondent arising out of the same relationship, all causes of action must be joined in one complaint or petition.
Upon assignment of a case to the Labor Arbiter, the Labor Arbiter must issue the required notification and summons immediately after receiving notice of assignment.
After receipt of a notice or summons, all pleadings concerning the case must be filed in the central docketing unit of the Regional Arbitration Branch or District where such notice or summons originated.
Parties filing pleadings must serve opposing parties with copies of the pleadings in the manner provided by the rules, and must file proof of such service with the pleadings.
Notices or summons and copies of orders, resolutions, or decisions must be served personally by the bailiff or duly authorized public officer, or by registered mail, within five (5) days from receipt by the serving officer.
If a party is represented by counsel or an authorized representative, service must be made on the latter.
The bailiff or serving officer must submit a return within five (5) days from the date of service, stating his name, mode(s) of service, persons served, and date of receipt; if no service was effected, the officer must state the reason.
The return is prima facie proof of the facts stated therein; service by registered mail is complete upon receipt by the addressee or his agents.

Appearances, authorization, and representatives

Attorneys appearing for a party are presumed properly authorized for the purpose.
A non-lawyer may appear before the Commission or any Labor Arbiter only if:
- the non-lawyer represents himself as a party to the case;
- the non-lawyer represents an organization or its members, and presents written proof of authorized representative status; or
- the non-lawyer is a duly accredited member of the free legal aid staff of the Ministry of Labor and Employment or of an accredited legal aid office of the Ministry of Justice or the Integrated Bar of the Philippines in cases referred thereto.
Appearances may be made orally or in writing, and the complete office address must be recorded and the adverse party or counsel/representative properly advised.
Any change in counsel’s/representative’s address must be filed with the case record and furnished to the adverse party or counsel.
Attorneys and other representatives may bind clients in all matters of procedure, but they cannot, without a special power of attorney or express consent, enter into a compromise agreement with the opposing party in full or partial discharge of a client’s claim.

Venue, assignment, consolidation, initial steps

Cases within Labor Arbiters’ authority may be filed in the Regional Arbitration Branch having jurisdiction over the workplace of the complainant/petitioner.
If two or more Regional Arbitration Branches have jurisdiction over the workplace of the complainant/petitioner, the branch that first acquires jurisdiction excludes the others.
Improper venue is deemed waived if not objected to before or at the time of filing of position papers.
The venue may be changed or transferred to another Regional Arbitration Branch by written agreement of the parties or when the Commission orders on motion by the proper party in meritorious cases.
A complainant not assisted by counsel or representative, or without a prepared written complaint, must be assisted by a complaint officer of the Regional Arbitration Branch in preparing the complaint.
The docket section must transmit all complaints and petitions to the Executive Labor Arbiter within twenty-four (24) hours from receipt.
All pleadings subsequent to filing must be transmitted within twenty-four (24) hours from receipt to the Labor Arbiter assigned to the case.
Within the same Regional Arbitration Branch, if there are pending cases involving the same employer and issues or the same parties with different issues, the case filed last must be consolidated with the first to avoid unnecessary costs or delay; disposal is by the Labor Arbiter to whom the first case was assigned.
Within forty-eight (48) hours from receipt of transmitted cases, the Executive Labor Arbiter must assign cases by raffle to different Labor Arbiters.
The Executive Labor Arbiter may assume jurisdiction or assign cases without raffle in exceptional cases, including impending or actual strike or lockout, violence attending a labor dispute, disputes causing or likely to cause public disorder or inconvenience, or places where holding a raffle is not practicable.
When a case is assigned to a Labor Arbiter, the entire case and all incidents are considered assigned to him and must be disposed of in the same proceeding to avoid multiplicity of suits or proceedings.
If the Minister of Labor and Employment assumed jurisdiction over a strike or lockout dispute or certified it to the Commission, parties must immediately inform the Minister or the Commission of all cases between them pending before any Regional Arbitration Branch; proceedings before the Labor Arbiter concerning such cases must cease and await instructions.

Labor Arbiter proceedings and decision timing

Within two (2) days from receipt of an assigned case, the Labor Arbiter must summon the parties for an initial conference/hearing to:
- amicably settle the case by a fair compromise;
- determine the real parties in interest;
- define and simplify the issues; and
- thresh out other preliminary matters.
The initial conference/hearing notice or summons must specify the hearing date, time, and place and be accompanied by a copy of the complaint.
Agreements on whole or part of the dispute must be reduced to writing and signed by the parties before the Labor Arbiter.
A settlement must be approved only after the Labor Arbiter is satisfied it was voluntarily entered and after explaining terms and consequences.
A compromise agreement made not in the presence of the Labor Arbiter may be approved only if the Labor Arbiter confronts the parties and is satisfied the parties understand the terms and entered freely and voluntarily.
A compromise agreement duly entered under this rule is final and binding, and the approving order has the effect of a judgment rendered by the Labor Arbiter in the final disposition of the case.
During the initial conference/hearing or immediately thereafter, the Labor Arbiter must require simultaneous submission of verified position papers covering only issues raised in the complaint, with supporting documents then available and witness affidavits taking the place of direct testimony.
Parties must not allege or present evidence to prove facts not referred to and causes of action not included in the complaint, position papers, affidavits, and other documents.
Parties must furnish each other copies of position papers and supporting affidavits and documents.
Immediately after submission of position papers and supporting proofs, the Labor Arbiter must determine whether formal hearing or investigation is necessary; at this stage, he may elicit pertinent facts or information (including documentary evidence) from any party or witness to complete facts as far as possible.
The Labor Arbiter must actively participate in preparation of stipulations of fact to abbreviate proceedings and suggest what facts parties need not prove.
If no formal hearing is necessary after position papers and supporting documents, the Labor Arbiter must inform parties with reasons and request acknowledgment by signing the minutes; the decision must be rendered within fifteen (15) working days thereafter.
If formal hearing is necessary, the Labor Arbiter must set dates and must render the decision within thirty (30) working days from the date the case is submitted for decision.
The Labor Arbiter must exert efforts and take positive steps toward resolving the dispute through conciliation at all cases and at any stage.
Labor Arbiter proceedings are non-litigious; technicalities of law and procedure and strict court evidence admissibility and sufficiency rules do not apply, subject to due process.
The Labor Arbiter may use reasonable means to ascertain facts speedily, including ocular inspection and examination of well-informed persons.
The Labor Arbiter must personally conduct the hearing.
Except as provided by law, the Labor Arbiter controls the order of presentation, examines parties and witnesses, limits questions to clarifying points of law or fact, and limits evidence to matters relevant and necessary for a just and speedy disposition.
As a general rule, the party initiating the case presents evidence first.
Only relevant, pertinent, and material questions necessary to enlighten the Labor Arbiter are allowed during cross-examination.
If the complainant/petitioner who was duly notified fails to appear at a hearing, two absences may be sufficient cause to dismiss the case without prejudice; upon proper justification shown by motion, the Labor Arbiter must call a second hearing.
Dismissal for a second time due to unjustified non-appearance after proper notification is with prejudice.
If the respondent does not appear despite due notice during the complainant’s presentation of evidence, the complainant may present evidence ex parte subject to cross-examination by the respondent at the next hearing.
After completion of the complainant’s evidence, another notice of hearing must be issued to receive the respondent’s evidence, warning that failure to appear will be construed as submission for resolution without presenting evidence.
If the respondent fails to appear during his turn to present evidence despite due notice, the case is submitted for decision based on evidence so far presented.
A party may petition to revive or reopen a case dismissed without prejudice within ten (10) working days from receipt of notice of dismissal; otherwise, the only remedy is to refile.
Postponements or continuances may be allowed only upon meritorious grounds and always subject to expeditious disposition; the Labor Arbiter must set two or more hearing dates in advance when postponements/continuances occur.
Proceedings need not be recorded by stenographers; the Labor Arbiter must make a written summary of proceedings including the substance of the evidence presented, forming part of the record, and the written summary must be signed by the parties.
A motion to dismiss on the grounds that the Labor Arbiter has no jurisdiction or that the cause of action is barred by prior judgment or prescription must be immediately acted upon if facts strongly indicate dismissal.
If a motion to dismiss does not strongly indicate dismissal, it must be disposed of in the final determination of the case and must not interrupt or delay proceedings.
Labor Arbiter decisions must be clear and concise and must include:
- facts of the case;
- issues involved;
- applicable law or rules;
- conclusions and reasons; and
- specific remedy or relief granted.
Decisions involving monetary awards must also include the amount awarded, computed before rendering, including accrued back wages if any.
No motions for reconsideration of any order or decision of a Labor Arbiter are given due course.

Appeals to the Commission

Labor Arbiter decisions or orders are final and executory unless appealed to the Commission by any or both parties within ten (10) calendar days from receipt of notice.
The appeal may be made within ten (10) calendar days on the grounds that:
1. there is prima facie evidence of abuse of discretion on the part of the Labor Arbiter;
2. the decision or order was secured through fraud or coercion, or graft and corruption;
3. the appeal is purely on question of law; or
4. serious errors in findings of fact were committed which, if not corrected, would cause grave and irreparable damage or injury to the appellant.
The appeal must be filed in five (5) legibly typewritten copies with the Regional Arbitration Branch of origin.
In appeals to the Commission, the appealing party is the appellant and the adverse party is the appellee, while the case title and number remain as below.
The appellant must pay an appeal fee of seventy pesos (P70.00) to the Regional Arbitration Branch of origin.
To perfect the appeal, the appeal must:
- be filed within the reglementary period;
- be under oath with proof of payment of the required appeal fee; and
- be accompanied by a memorandum of appeal stating grounds and arguments and the date the appellant received the decision or order, with proof of service on the other party.
The appellee may file a reply or opposition in the proper Regional Arbitration Branch within ten (1) calendar days from receipt of the appeal.
Failure of the appellee to file a reply/opposition within the period is a waiver.
Once the appeal is perfected, issues not raised on appeal become final and executory, and the Commission limits itself to reviewing and deciding specific issues elevated on appeal.
No motion or request for extension of time to perfect an appeal is entertained.
Within forty-eight (48) hours after the reply/opposition is filed or after expiration of the period to file it, the Regional Arbitration Branch of origin transmits the entire record, memorandum of appeal, proof of service, and proof of payment of appeal fee to the Executive Director of the Commission.
Case records must contain, among others, a complete narration of what transpired in arbitration stage in the form of minutes, including all original pleadings, notices, proof of service of the decision/order/award, and other papers, consecutively numbered.
Only records of cases on appeal properly numbered with complete minutes are accepted by the Executive Director of the Commission.
Appeal rules covering appeals from Labor Arbiters also apply to appeals to the Commission from decisions or orders of other offices or agencies appealable to the Commission under law.
To discourage frivolous or dilatory appeals, the Commission may impose a reasonable penalty, including fine or censure.

Commission jurisdiction, proceedings, execution

The Commission en banc decides, in the exercise of original and exclusive jurisdiction:
- injunction cases;
- contempt cases committed against the Commission or any of its members; and
- cases certified to the Commission by the Minister of Labor and Employment.
The Commission may assign the hearing and reception of evidence in these cases to any Commissioner or Labor Arbiter.
The Commission exercises exclusive appellate jurisdiction over all cases decided by Labor Arbiters and over all cases declared by law to be appealable thereto.
Cases cognizable by the Commission en banc in appellate jurisdiction include:
- cases where national security or social and economic stability is threatened;
- contempt cases on appeal;
- appealed cases assigned to any Divisions of complicated nature or involving intricate questions of law where, by majority vote, they are referred to the Commission en banc; and
- any appealed case where the Chairman or Vice-Chairman determines en banc disposition is imperative due to policy implications or other justifiable grounds.
Appealed cases not in the enumeration are distributed more or less equally by raffle, assignment, or otherwise among the Divisions for resolution as directed by the Vice-Chairman.
The Commission sits en banc for its rule-making function and may sit en banc or in three (3) divisions for adjudicatory functions.
The Minister of Labor and Employment or his duly authorized representative acts as Chairman when the Commission sits en banc.
The Vice-Chairman acts as Presiding Commissioner of the First Division and is Administrator of the Commission; when the Chairman is absent or delegated, the Vice-Chairman presides over en banc deliberations.
A quorum for deciding any matter before the Commission en banc is the presence of majority of all members.
A majority vote of the members constituting quorum is required to promulgate an en banc decision or resolution.
In a tie, if no decision or resolution is reached within the period required to resolve, after absent member(s) are given chance to participate and vote, the side on which the Chairman casts his vote is deemed the decision of the Commission.
A quorum for a Division is at least two (2) members; concurring votes of at least two (2) members have the force and effect of a decision or resolution.
If a Division does not arrive at a majority vote, the case is elevated to the Commission en banc for resolution.
The Chairman may convene and preside over a Division session to consider any case and participate in deliberations when this best serves labor justice, but he does not vote unless acting as Presiding Commissioner in the absence of the regular Presiding Commissioner.
If a Division is not fully constituted, members present may request a member of another Division to participate in deliberations and vote.
A decision must be promulgated within five (5) days after the Commission or Division reaches a decision.
A dissenting opinion must be filed within the period prescribed for deciding or resolving the appeal; otherwise, it is not considered part of case records.
Motions for reconsideration of Commission orders, resolutions, or decisions are not entertained except for palpable or patent errors, must be under oath, filed within ten (10) calendar days from receipt, with proof of service on the adverse party within the reglementary period, and only one such motion may be entertained.
Motions for reconsideration of a Division order/resolution/decision must be resolved by the Division of origin.
The Commission and Labor Arbiter may issue preliminary injunctions or restraining orders in ordinary cases pending before the Commission when sworn allegations establish acts may, if not enjoined forthwith, cause grave or irreparable damage or render a decision ineffectual; if the Commission requires a bond, the writ becomes effective only upon fixing and approval of the bond to answer damages if petitioner is not entitled.
Labor Arbiters may exercise ancillary injunctive power in cases pending before them to preserve the rights of parties during pendency.
In strikes and lockouts, no permanent injunction is granted against prohibited acts under Article 265 except after due notice and hearing.
A preliminary injunction or restraining order in strikes or lockouts may be granted only when:
- the petition is properly verified and shows facts entitling petitioner to the relief;
- there are findings that the respondent or its agents have threatened or committed and are continuing to commit prohibited acts under Article 265; and
- after due and personal notice to the respondent, a hearing is held where petitioner presents evidence and respondents present evidence through counter-affidavit in a summary manner.
If a petitioner alleges under oath that without an ex parte temporary restraining order substantial and irreparable injury to persons or property will be unavoidable and the Commission finds urgent necessity, an ex parte restraining order may be issued.
An ex parte restraining order under the strike/lockout rule is valid for a period not exceeding twenty (20) days from effectivity, and parties must present evidence to substantiate their positions in the main petition during that period.
The Commission may delegate reception of evidence for injunction applications to a Labor Arbiter who conducts hearings in accessible places and submits recommendations for further disposition.
No ex parte restraining order is issued unless petitioner posts a bond in an amount fixed by the Commission sufficient to recompense enjoined parties for loss, expense, or damage from improvident or erroneous issuance.
Defiance of an injunction/resolution order enjoining illegal acts authorizes sanctions necessary under circumstances, including deputization of police authorities with jurisdiction for enforcement.
Execution issues upon final disposition orders/resolutions/decisions after parties were furnished copies and after expiration of the appeal period if no appeal is perfected; the Labor Arbiter of origin issues a writ of execution requiring the sheriff or proper officer to execute it, motu proprio or upon motion.
During the appeal period and before perfection, execution may issue on proper motion when records show judgment cannot be secured unless executed; execution may be stayed by the losing party by filing and approval of a supersedes bond adequate to protect the prevailing party.
Execution in cases of reinstatement ordered for workers unlawfully dismissed due to employer unfair labor practice must issue during the appeal period and even during pendency of the appeal; monetary award execution does not issue during appeal, but if it is issued upon showing judgment cannot be secured unless done, it may be stayed pending appeal upon filing and approval of a supersedes bond of adequate amount by the issuing authority.
Pending appeal, no execution issues for implementation of a Labor Arbiter order except:
- reinstatement decisions in unfair labor practice cases; and
- the situation allowing execution during appeal period before perfection upon proper motion and hearing before the Commission or hearing officer designated by it.
Commission decisions, resolutions, or orders become executory after ten (10) calendar days from receipt.
If a motion for reconsideration is filed under Section 9, Rule X, the decision becomes executory after ten (10) calendar days from receipt of the resolution on the motion.
Filing a petition before the Supreme Court seeking review does not stay execution unless otherwise ordered by the Supreme Court.
In situations requiring further computation of judgment amount not covered by Section 15, Rule VII, no execution issues until the computation is approved by the Labor Arbiter after parties are duly notified and heard.
Enforcement of writs must follow strictly the Sheriff’s Manual, which forms part of the rules.

Certified cases and automatic effects

Certification of labor disputes for compulsory arbitration aims to ensure and maintain industrial peace based on social justice and national interest by ensuring full and complete settlement or adjudication of all labor disputes between the parties, including issues relevant to or incidents of certified issues.
Certified cases are cases certified to the Commission for compulsory arbitration under Article 264 (g) of the Labor Code.
Upon receipt of a certification order, the Vice-Chairman handles the case or immediately assigns it to a Commissioner for conciliation and/or reception of evidence.
The Vice-Chairman or assigned Commissioner may conciliate and/or receive evidence personally, or designate a Labor Arbiter to do so on his behalf.
After proceedings, the Vice-Chairman or assigned Commissioner submits a report and recommendation to the Commission en banc for discussion and action.
The Commission en banc must decide or resolve the certified dispute within thirty (30) days from submission for resolution.
Certification automatically enjoins the intended or impending strike or lockout.
If a strike or lockout has already taken place at certification, striking/locked out employees must immediately return to work, and the employer must immediately resume operations and readmit all workers under the same terms and conditions prevailing before the strike or lockout.
All cases between the same parties in the Ministry already filed or may be filed that are relevant to or proper incidents of the certified cases must be considered subsumed or absorbed and decided by the Commission en banc.
The Commission en banc decision on the certified case is final and immediately executory unless restrained by proper authorities.
Non-compliance with an assumption or certification order of the Minister of Labor and Employment or a Commission return-to-work order is considered an illegal act committed in the course of the strike or lockout.
Upon non-compliance, the Minister or Commission may impose sanctions provided by law, including authorizing hiring of replacements for non-complying workers.
When non-compliance is by employers, workers reporting for work are entitled to all benefits under the law, including backwages from the time the offer to return to work was made in compliance with the order.

Contempt, sanctions, and final ancillary rules

The Commission or any Labor Arbiter may summarily adjudge guilty of direct contempt any person committing misconduct in the presence of, or so near as to obstruct or interrupt, proceedings before the Chairman/member/Labor Arbiter, including disrespect, refusal to be sworn, refusal to answer as witness, or refusal to subscribe to an affidavit or deposition when lawfully required.
Direct contempt against the Commission or any member is punished by a fine not exceeding two hundred (P200.00) pesos, or imprisonment not exceeding five (5) days, or both.
Direct contempt against any Labor Arbiter is punished by a fine not exceeding one hundred (P100.00) pesos, or imprisonment not exceeding one (1) day, or both fine and imprisonment.
A person adjudged guilty of direct contempt by a Labor Arbiter may appeal within five (5) days from notice of the judgment to the Commission, and execution is suspended pending resolution upon filing of a bond conditioned on abiding by and performing the judgment if the appeal is decided against him.
A Commission judgment on direct contempt is immediately executory and inappealable.
The Labor Arbiter may cite persons for indirect contempt under the manner and grounds prescribed under Rule 71 of the Revised Rules of Court.

Commission administration, records, certified copies

The Executive Director serves as Secretary to the Commission under direct supervision of the Vice-Chairman.
All pleadings and papers required or authorized to be filed in the Commission must be filed in the Executive Director’s office, except where the matter is being heard elsewhere, in which case they may be filed in the office of the Labor Arbiter commissioned to hear the matter.
Official Commission records are open to the public during regular office hours, except confidential reports/records/communications that cannot be divulged without violating private rights or prejudicing public interest.
The Executive Director keeps custody of the Commission seal and books for recording proceedings, including records, files, and exhibits.
The Executive Director prepares the Commission and Division hearing/session calendar, attends sessions, and enters proceedings in a Minutes Book.
The Executive Director receives and files pleadings and other papers, indicating the filing date and time.
The Executive Director certifies the date and hour of promulgation of orders, decisions, and resolutions, and the manner the parties were notified.
The Executive Director keeps a General Docket with numbered pages, entering all original and appealed cases consecutively in the order received, including dates and hours of pleadings filed, orders/decisions/resolutions entered, and other actions.
The Executive Director keeps a Book compiling copies of Commission orders, resolutions, and decisions by promulgation date, and a chronological Book of entries of all final orders, resolutions, and decisions.
The Executive Director issues certified copies under the Commission seal of any paper/record/decision/resolution/order/entry in his office upon request and after payment of standard fees, with a pauper litigant