Law Summary
Establishment and Purpose of the Office for Alternative Dispute Resolution (OADR)
- OADR was established by the ADR Act of 2004 as an attached agency to the Department of Justice (DOJ).
- Mandated to promote, develop, expand, monitor, study, and evaluate ADR usage in public and private sectors.
- Recommends legislative reforms to improve ADR practices in line with global standards.
Revocation and Transfer of ADR Authority
- EO No. 523 (s. 2006) initially vested ADR program management in the Office of the President.
- This order revokes EO No. 523 and transfers all ADR management and oversight powers over Executive Department agencies to the OADR.
Scope of OADR Authority
- Covers all executive departments, administrative offices, quasi-judicial agencies, and government-owned or controlled corporations (GOCCs).
- Powers include development, use, implementation, promotion, monitoring, coordination, expansion, evaluation, and studies of ADR programs.
- Includes provision of dispute resolution services, conducting ADR training, and managing ADR program systems.
Powers and Functions of the OADR
- Coordinate rule-making and implementation of ADR policies.
- Set professional and ethical standards for ADR practitioners through training and accreditation guidelines.
- Establish guidelines for the design, conduct, and management of ADR programs according to international best practices.
- Monitor and evaluate agency compliance with ADR standards.
- Mandate agencies to establish or adjust ADR programs to comply with OADR issued standards.
- Require submission of information on ADR programs, decisions, awards, or settlements, ensuring confidentiality.
- Coordinate with the Judiciary on court-annexed ADR programs.
- Publish annual ADR status reports on OADR’s website.
- Assist agencies with ADR training resources.
Mandatory Promotion and Use of ADR
- All Executive Department agencies are required to promote use of ADR methods such as arbitration, mediation, conciliation, and early neutral evaluation.
Reporting Requirements for Agencies
- Agencies must designate senior and alternate officials responsible for ADR program management.
- Initial status reports to OADR within three months after the order's effectivity.
- Semi-annual or periodic reporting thereafter as required by OADR.
Contents of Agency Reports
- Review of ADR procedures to reduce delays, institutionalize ADR prior to litigation, facilitate self-representation, and expand non-lawyer participation.
- Recommendations for statutory amendments to enhance ADR effectiveness and settlement at agency level.
- Proposals for program establishment, monitoring, and practitioner accreditation improvements.
- Suggestions for other programs or standards to advance ADR and party autonomy.
Annual Reporting to the President
- OADR shall submit an annual implementation report to the President via the Executive Secretary.
Budget and Funding
- Agencies must allocate budgetary funds annually for development, management, and operation of their ADR programs.
Non-Applicability to Katarungang Pambarangay System
- This order does not cover the Katarungang Pambarangay System nor modify its jurisdiction under the Local Government Code.
- However, ADR trainings related to this system require prior approval from OADR.
OADR Jurisdiction Beyond the Executive Department
- The order does not limit OADR’s mandate over ADR activities in other sectors, including the private sector, as provided by law.
Repeal and Separability Clauses
- EO No. 523 (s. 2006) and inconsistent issuances are revoked.
- Invalidity of any provision does not affect the remaining provisions, which remain effective.
Effectivity of the Order
- The order became effective fifteen days after its publication in a newspaper of general circulation.