Title
Rationalizing NLRC composition and functions
Law
Republic Act No. 9347
Decision Date
Jul 27, 2006
Republic Act No. 9347 amends the Labor Code of the Philippines to rationalize the composition and functions of the National Labor Relations Commission, ensuring competence, transparency, and adequate compensation for its members, while repealing or modifying inconsistent laws to enhance its effectiveness in resolving labor disputes.

Law Summary

Administrative Supervision and Staffing

  • Chairman has exclusive administrative supervision over the Commission, regional branches, personnel, including Labor Arbiters.
  • Executive Clerk assists the Commission en banc; Deputy Executive Clerks assist each division.
  • Commission Attorneys assist in appellate and adjudicatory duties; their term coincides with Commissioners they serve.
  • Commission Attorneys must be Philippine Bar members with at least one year experience in labor-management relations.
  • Salaries and benefits of Commission Attorneys correspond to Salary Grade 26; staffing limited to three per office.
  • Labor Arbiters are barred from serving concurrently as Commission Attorneys or being detailed to Commissioners' offices.

Headquarters, Branches, and Extension Units

  • Divisions 1-6 headquartered in Metropolitan Manila.
  • Division 7 located in Cebu City; Division 8 in Cagayan de Oro City.
  • The Commission must establish regional branches aligned with Department of Labor and Employment regional offices, subregional branches, and provincial extension units.
  • Number of Labor Arbiters shall meet operational efficiency needs.

Appointment and Qualifications

  • Chairman and Commissioners must be Philippine Bar members, with 15 years legal practice and at least 5 years labor-management experience.
  • Labor Arbiters must be Philippine Bar members with 10 years practice and 5 years labor-management experience.
  • Officials serve during good behavior until age 65, removable for cause or incapacity.
  • Presidential extension of service up to 70 years possible upon Commission's recommendation.
  • President appoints Chairman, Commissioners, and Labor Arbiters; sector nomination relevant for Commissioners' appointments.
  • Labor Arbiters appointed upon Commission en banc recommendation and are subject to Civil Service Law.
  • Labor Arbiters holding office in their resident region are deemed appointed therein.
  • Commission Chairman appoints staff/employees per service needs, subject to Civil Service Law and salary law compliance.

Salaries, Benefits, and Emoluments

  • Chairman and Commissioners have rank, salary, allowances, retirement, and benefits equivalent to Presiding Justice and Associate Justices of the Court of Appeals.
  • Labor Arbiters receive salaries and benefits equivalent to Judges of the Regional Trial Courts.
  • Implementation of salary provisions must not diminish existing salaries or benefits.

Implementation, Separability, and Effectivity

  • The establishment of additional divisions is a temporary measure effective for up to three years.
  • If any part of the Act is declared invalid or unconstitutional, remaining provisions remain unaffected.
  • The Act repeals inconsistent provisions of the Labor Code and related laws.
  • The Act takes effect 15 days after publication in the Official Gazette or two national newspapers, whichever comes earlier.

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