Legal basis and amendment to Labor Code
- Republic Act No. 10396 amends Article 228 of Presidential Decree No. 442, as amended, otherwise known as the Labor Code of the Philippines.
- The amendment inserts a new Article 228 into the Labor Code to strengthen conciliation-mediation as a voluntary mode of dispute settlement.
- Republic Act No. 10396 bases its coverage on “all issues arising from labor and employment,” subject to the specific statutory exceptions.
Policy and dispute-settlement model
- The law requires mandatory conciliation-mediation for covered labor and employment disputes.
- The law allows pre-termination of conciliation-mediation and referral/endorsement to the appropriate labor adjudication or agency office.
- The law allows parties, by agreement, to resolve unresolved issues through voluntary arbitration after conciliation-mediation.
Coverage and when conciliation-mediation is required
- Article 228(a) requires that all issues arising from labor and employment are subject to mandatory conciliation-mediation.
- The mandatory requirement applies except as provided in Title VII-A, Book V of this Code, as amended, or as may be excepted by the Secretary of Labor and Employment.
- The labor arbiter or the appropriate DOLE agency or office with jurisdiction shall entertain only endorsed or referred cases by the duly authorized officer.
- Article 228 covers disputes over issues arising from labor and employment, handled through the labor adjudication mechanisms under the Labor Code system.
Core procedure: mandatory conciliation-mediation
- Article 228(a) makes conciliation-mediation the required step for disputes covered by the rule.
- The case may be entertained by the labor arbiter or the appropriate DOLE agency or office only when the matter is endorsed or referred by the duly authorized officer.
- Article 228(a) ensures that the jurisdictional handling of labor disputes is conditioned on endorsement or referral after the conciliation-mediation process.
Party control: pre-termination and referral
- Article 228(b) allows any or both parties to pre-terminate the conciliation-mediation proceedings.
- After pre-termination, either party may request referral or endorsement to the appropriate DOLE agency or office with jurisdiction over the dispute.
- If both parties so agree, the unresolved issues may be referred to voluntary arbitration.
Implementing rules and regulations
- Section 2 directs the Secretary of Labor and Employment to promulgate the necessary rules and regulations to implement Republic Act No. 10396.
Repeal, amendment, and effect on inconsistent laws
- Section 3 repeals, amends, or modifies Presidential Decree No. 442 (the Labor Code), and all other acts, laws, presidential issuances, rules and regulations that are inconsistent with Republic Act No. 10396, accordingly.
- Section 3 contains the operative repealing clause covering inconsistency only, while incorporating the amendment to Article 228 as the principal change to the Labor Code structure.