Title
Strengthening NLRC operations
Law
Republic Act No. 10741
Decision Date
Jan 12, 2016
The amendment to the Labor Code of the Philippines strengthens the National Labor Relations Commission by reorganizing its composition, defining its powers, and establishing the qualifications and appointment process for its members.

Law Summary

Organizational Setup and Jurisdiction

  • The Commission may sit en banc or in eight divisions of three members each.
  • En banc sessions only for promulgating rules, regulations, and policy formulation.
  • Eight divisions exercise adjudicatory functions; 6 cover National Capital Region and Luzon, and the 7th and 8th cover Visayas and Mindanao.
  • Temporary transfer of cases allowed to manage docket loads without extra expense to litigants.
  • Divisions have exclusive appellate jurisdiction within territorial scope.

Decision-Making and Internal Procedures

  • Decisions require concurrence of two Commissioners in a division.
  • If a division lacks members, Chairman designates additional Commissioners from other divisions.
  • Mandatory consultation among division members before assigning opinions.
  • Certification of consultation must be issued and attached to case records.

Leadership and Administrative Supervision

  • Chairman serves as Presiding Commissioner of first division.
  • Other public sector Commissioners serve as Presiding Commissioners of divisions 2 to 8.
  • Acting Chairman role falls to second division Presiding Commissioner if Chairman is absent or incapacitated.
  • Chairman oversees administration and personnel including labor arbiters.

Support Staff and Commission Attorneys

  • Executive Clerk assists en banc and divisional sessions with Deputy Clerks assigned per division.
  • Number of Commission Attorneys capped at five per Commissioner; they must be Philippine Bar members with labor relations experience.
  • Commission Attorneys receive salaries corresponding to Salary Grade 26 and benefits.

Appointment and Qualifications of Commissioners and Labor Arbiters

  • Chairman and Commissioners must be Philippine Bar members with 15 years legal practice and 5 years in labor-management relations.
  • Labor Arbiters must have 10 years legal practice and 5 years labor relations experience.
  • All hold office during good behavior until age 65, extendable to 70 upon recommendation.
  • President appoints Chairman, Commissioners, and Labor Arbiters; labor arbiter appointments based on Commission recommendations and subject to Civil Service Law.
  • Vacancies in divisions filled by nominees from the same sector as the predecessor.

Staffing and Compensation

  • Chairman appoints staff subject to Civil Service Law.
  • Salaries, benefits, and emoluments of Commission personnel may be upgraded as per law.

Renumbering and Technical Provisions

  • Articles 213 and 215 renumbered as Articles 220 and 222 under Department Advisory Order No. 01, Series 2015.

Separability Clause

  • Unconstitutional provisions do not affect validity of the rest of the Act.

Repealing Clause

  • Labor Code provisions and other laws inconsistent with this Act are repealed, amended, or modified accordingly.

Effectivity

  • The Act takes effect 15 days after publication in the Official Gazette or a newspaper of national circulation.

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