Title
Strengthening Conciliation-Mediation in Labor Cases
Law
Republic Act No. 10396
Decision Date
Mar 14, 2013
Republic Act No. 10396 strengthens conciliation-mediation as a mandatory mode of dispute settlement for all labor cases in the Philippines, requiring the Secretary of Labor and Employment to promulgate rules and regulations for its implementation.

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.

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