Title
Creation of National Labor Relations Commission
Law
Presidential Decree No. 21
Decision Date
Oct 14, 1972
Presidential Decree No. 21 establishes the National Labor Relations Commission (NLRC) with jurisdiction over employee-employer relations and the power to resolve disputes and grievances, ensuring fair labor practices and collective bargaining in the Philippines.

Jurisdiction of the Commission

  • Original and exclusive jurisdiction over employee-employer relations, including disputes and grievances potentially leading to strikes and lockouts as defined by Republic Act No. 875.
  • Jurisdiction over all strikes overtaken by Proclamation No. 1081.
  • Authority over all pending cases in the Bureau of Labor Relations.

Requirement to Exhaust Grievance Procedures Before Commission Intervention

  • Parties must first exhaust grievance procedures outlined in collective bargaining agreements (CBAs) or mutually agreed dispute resolution methods.
  • Complainants must provide proof of failure to settle disputes through these methods before raising issues to the Commission.

Voluntary Arbitration Before Commission Jurisdiction

  • The Commission or its representatives must offer parties an opportunity for voluntary arbitration before exercising jurisdiction.
  • If parties fail to agree on an arbitrator, the Commission may appoint one or act as arbitrator itself.

Decisions, Appeals, and Mediation Outside Greater Manila

  • Commission decisions are immediately executory.
  • Appeals may be filed with the Secretary of Labor, who must decide within five days.
  • Secretary of Labor's decisions are appealable to the President.
  • Outside Greater Manila, the Commission can designate representatives to mediate, conciliate, or conduct fact-finding, with findings submitted within five days.

Mandatory Arbitration Clause in Collective Bargaining Agreements

  • All CBAs must include a provision for a voluntary arbitrator (individual or committee) to resolve disputes arising from CBAs.
  • Existing CBAs lacking such provisions must be amended and reported to the Commission.
  • All lockouts are declared illegal.

Powers of the Commission

  • Power to administer oaths.
  • Authority to issue subpoenas and subpoena duces tecum.
  • Power to hold persons in contempt for refusal to comply with orders.

Designation of Assistants and Personnel

  • Secretary of Labor shall, on Commission recommendation, appoint mediators, fact-finders, representation officers, and other necessary personnel from the Department of Labor.

Rules of Procedure and Case Resolution Timeline

  • The Commission shall promulgate procedural rules to ensure all cases are resolved or terminated within 30 days of filing.
  • It will issue rules governing collective bargaining.

Enforcement and Penalties

  • The President, upon recommendation, may order arrest and detention of persons held in contempt for non-compliance with Commission subpoenas, orders, or decisions.
  • Violations of the Decree and its implementing rules are subject to these enforcement measures.

Restrictions on Employer Actions Without Clearance

  • Employers cannot shut down establishments or dismiss/terminate regular employees (with at least one year of service) without written clearance from the Secretary of Labor.

Repeal of Inconsistent Laws

  • Any existing laws, orders, or regulations inconsistent with this Decree are repealed upon its promulgation.

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