Revised guidelines on voluntary arbitration fees

The resolution is promulgated pursuant to Republic Act No. 6715, which authorizes the Council to recommend guidelines on the use of the Special Voluntary Arbitration Fund, particularly on subsidy.
It amends Resolution No. 2, s. 1995 (Guidelines on the Fees and in the Processing of Payment of Subsidy Entitlement for Regular Voluntary Arbitration Cases).
It revises prior guidelines originally promulgated 18 December 1992, amended 6 August 1993, and further amended 11 August 1995.

The resolution recognizes the need to review the schedule of fees to assess reasonableness in view of increasing costs of professional service and other arbitration expenses.
The resolution directs policy toward removing the burden of cost from workers and unions to promote acceptance of voluntary arbitration.
The resolution provides for simplified procedures for processing subsidy requests to make the Special Voluntary Arbitration Fund more accessible to parties, particularly the union.

The subsidy covers all arbitration cases whether involving unionized or non-unionized establishments.
The subsidy includes cases involving individual workers not represented by a duly recognized union, provided the cases do not fall under Expedited Voluntary Arbitration Proceedings and do not fall under the Free Legal Aid and Voluntary Arbitration Services Program (FLAVAS).
The subsidy is available for regular voluntary arbitration cases subject to the exclusions stated.

The subsidy is payable to the voluntary arbitrator, except that it is payable to the Chairman and its members in the case of a panel of voluntary arbitrators.
In cases where the subsidy is for reimbursement of amounts paid to the arbitrator by either party, the subsidy is paid to the union or the company, depending on which party made the payment.
Requests for subsidy entitlement must be filed with the appropriate Regional Branch.
Supporting documents required for processing a request include:
- (a) Request for Subsidy Entitlement Form
- (b) Copy of Decision/Award containing information on whether it is under FLAVAS or under Expedited or Regular VA proceedings, including the date the case was submitted to voluntary arbitration, the number of hearings, and the date it was submitted for resolution
- (c) If advance payment was made by either or both parties, proof of partial/full payment to the voluntary arbitrator for reimbursement
- (d) If the arbitrator limits his/her fee to the amount of subsidy, only a copy of the decision or award and a certification under oath that the arbitrator limits the fee to the subsidy and does not charge any other fees to the parties

As a rule, the subsidy is Ten Thousand Pesos (P10,000.00) for all types of voluntary arbitration cases, except where specific higher or reduced amounts apply.
For cases involving two or more issues in rights dispute cases, the subsidy is P15,000.00 per case.
For bargaining deadlock, regardless of the number of issues, the subsidy is P15,000.00.
If a case is settled, withdrawn, or dismissed for lack of interest before a decision is promulgated, the subsidy is:
- Full subsidy if two or more hearings were held; the application must be supported by a report issued by the arbitrator
- Twenty-five (25%) percent if withdrawn, settled, or dismissed after initial hearing; the application must be supported by a report issued by the arbitrator
- No subsidy if the case is settled or withdrawn before an initial hearing could be heard
If both parties avail of the subsidy, the applicable subsidy amount is applied equally to the share of both parties in the agreed fees of the arbitrator/s.
Where the fees are completely paid for by the SVAF, the arbitrator’s fee shall in no case be more than either (a) the claim of each party or (b) the subsidy provided in the guidelines.

The guidelines are required to be approved by the Secretary of Labor and Employment.
The National Conciliation and Mediation Board must observe and comply with the guidelines in administering the Special Voluntary Arbitration Fund and in using the voluntary arbitration subsidy.

Resolution No. 2, Series of 1995 is amended accordingly.
All other laws and resolutions inconsistent with this resolution are repealed.