Labor Law: Book V; Title II; Chapter I Creation and Composition (Arts. 220-223)

Book V

Labor Relations

Title II

National Labor Relations Commission

Chapter I

Creation and Composition

Arts. 220-223

Q: What is NLRC? What does it do?
Q: What is the composition of the NLRC? 
Q: What matters does it decide en banc and what in division level? 


Art. 220. National Labor Relations Commission. 

There shall be a National Labor Relations Commission which shall be attached to the Department of Labor and Employment solely for program and policy coordination, composed of a Chairman and twenty-three (23) members.

Eight (8) members each shall be chosen only from among the nominees of the workers and employers organizations, respectively. The Chairman and the seven (7) remaining members shall come from the public sector, with the latter to be chosen preferably from among the incumbent labor arbiters.

Upon assumption into office, the members nominated by the workers and employers organizations shall divest themselves of any affiliation with or interest in the federation or association to which they belong.

The Commission may sit en banc or in eight (8) divisions, each composed of three (3) members. The Commission shall sit en banc only for purposes of promulgating rules and regulations governing the hearing and disposition of cases before any of its divisions’ and regional branches and formulating policies affecting its administration and operations. The Commission shall exercise its adjudicatory and all other powers, functions and duties through its divisions. Of the eight (8) divisions, the first, second, third, fourth, fifth and sixth divisions shall handle cases coming from the National Capital Region and other parts of Luzon, and the seventh and eighth divisions, cases from the Visayas and Mindanao, respectively: Provided, That the Commission sitting en banc may, on temporary or emergency basis, allow cases within the jurisdiction of any division to be heard and decided by any other division whose docket allows the additional workload and such transfer will not expose litigants to unnecessary additional expense. The divisions of the Commission shall have exclusive appellate jurisdiction over cases within then respective territorial jurisdiction.

The concurrence of two (2) Commissioners of a division shall be necessary for the pronouncement of judgment or resolution. Whenever the required membership in a division is not complete and the concurrence of two (2) Commissioners to arrive at a judgment or resolution cannot be obtained, the Chairman shall designate such number of additional Commissioners from the other divisions as may be necessary.

The conclusions of a division on any case submitted to it for decision shall be reached in consultation before the case is assigned to a member for the writing of the opinion. It shall be mandatory for the division to meet for purposes of the consultation ordained therein. A certification to this effect signed by the Presiding Commissioner of the division shall be issued, and a copy thereof attached to the record of the case and served upon the parties.

The Chairman shall be the Presiding Commissioner of the first division, and the seven (7) other members from the public sector shall be the Presiding Commissioners of the second, third, fourth, fifth, sixth, seventh and eighth divisions, respectively. In case of the effective absence or incapacity of the Chairman, the Presiding Commissioner of the second division shall be the Acting Chairman.

The Chairman, aided by the Executive Clerk of the Commission, shall have exclusive administrative supervision over the Commission and its regional branches and all its personnel, including the Labor Arbiters.

The Commission, when sitting en banc, shall be assisted by the same Executive Clerk, and, when acting thru its Divisions, by said Executive Clerk for its first division and seven (7) other Deputy Executive Clerks for the second, third, fourth, fifth, sixth, seventh and eighth Divisions, respectively, in the performance of such similar or equivalent functions and duties as are discharged by the Clerk of Court and Deputy Clerks of Court of the Court of Appeals.

The Commission and its eight (8) divisions shall be assisted by the Commission Attorneys in its appellate and adjudicatory functions whose term shall be coterminous with the Commissioners with whom they are assigned. The Commission Attorneys shall be members of the Philippine Bar with at least one (1) year experience or exposure in the field of labor-management relations. They shall receive annual salaries and shall be entitled to the same allowances and benefits as those falling under Salary Grade twenty-sis (SG 26). There shall be as many Commission Attorneys as may be necessary for the effective and efficient operation of the Commission but in no case more than five (5) assigned to the Office of the Chairman and each Commissioner.

Art. 221. Headquarters, Branches and Provincial Extension Units. 
The Commission and its first, second, third, fourth, fifth and sixth divisions shall have their main offices in Metropolitan Manila, and the Seventh and Eight divisions in the Cities of Cebu and Cagayan de Oro, respectively. The Commission shall establish as many regional branches as there are regional offices of the Department of Labor and Employment, sub-regional branches or provincial extension units. There shall be as many Labor Arbiters as may be necessary for the effective and efficient operation of the Commission.

Art. 222. Appointment and Qualifications. 
The Chairman and other Commissioners shall be members of the Philippine Bar and must have been engaged in the practice of law in the Philippines for at least fifteen (15) years, with at least five (5) years experience or exposure in the field of labor-management relations, and shall preferably be residents of the region where they shall hold office. The Labor Arbiters shall likewise be members of the Philippine Bar and must have been engaged in the practice of law in the Philippines for at least ten (10) years, with at least five (5) years experience or exposure in the field of labor-management relations.

The Chairman, the other Commissioners and the Labor Arbiters shall hold office during good behavior until they reach the age of sixty-five (65) years, unless sooner removed for cause as provided by law or become incapacitated to discharge the duties of their office: Provided, however, That the President of the Republic of the Philippines may extend the services of the Commissioners and Labor Arbiters up to the maximum age of seventy (70) years upon the recommendation of the Commission en banc.

The Chairman, the Division Presiding Commissioners and other Commissioners shall all be appointed by the President. Appointment to any vacancy in a specific division shall come only from the nominees of the sector which nominated the predecessor. The Labor Arbiters shall also be appointed by the President, upon the recommendation of the Commission en banc, and shall be subject to the Civil Service Law, rules and regulations.

The Chairman of the Commission shall appoint the staff and employees of the Commission and its regional branches as the needs of the service may require, subject to the Civil Service Law, rules and regulations, and upgrade their current salaries, benefits and other emoluments in accordance with law.


Art. 223. Salaries, benefits and other emoluments. 
The Chairman and members of the Commission shall have the same rank, receive an annual salary equivalent to, and be entitled to the same allowances, retirement and benefits as, those of the Presiding Justice and Associate Justices of the Court of Appeals, respectively. Labor Arbiters shall have the same rank, receive an annual salary equivalent to and be entitled to the same allowances, retirement and other benefits and privileges as those of the judges of the regional trial courts. In no case, however, shall the provision of this Article result in the diminution of the existing salaries, allowances and benefits of the aforementioned officials.


Notes:
  • Art. 220. National Labor Relations Commission
    • Establishment and Composition
      • National Labor Relations Commission (NLRC) attached to the Department of Labor and Employment.
      • Composed of a Chairman and 23 Members.
    • Election of Members
      • Eight members each chosen from workers and employers organizations.
      • Chairman and seven members from the public sector, preferably incumbent labor arbiters.
      • Members must divest themselves of affiliations upon assuming office.
    • Structure and Jurisdiction
      • NLRC may sit en banc or in eight divisions, each with three members.
      • En banc sessions ─ promulgation of rules and regulations and formulating policies
      • Divisions ─ adjudication and all others powers
        • 1st to 6th Division ─ NCR and other parts of Luzon
        • 7th and 8th Division ─ Visayas and Mindanao
      • En banc can transfer cases between divisions on a temporary or emergency basis, ensuring additional workload does not burden litigants
      • Divisions hold exclusive appellate jurisdiction over cases within their respective territorial jurisdictions.
    • Concurrence and Decision Making
      • Two Commissioners of a Division required for judgments or resolutions.
      • If a division lacks the required concurrence, the Chairman can appoint additional Commissioners from other divisions.
      • Division conclusions on a case must be reached through mandatory consultation before assigning a member to write the opinion.
      • A certification, signed by the Presiding Commissioner of the division, is issued and attached to the case record, serving as notice to the involved parties.
    • Presiding Commissioners and Acting Chairman
      • Chairman is the Presiding Commissioner of the first division.
      • Other public sector members are Presiding Commissioners of the remaining divisions.
      • In the Chairman's absence, the Presiding Commissioner of the second division acts as Acting Chairman.
    • Administrative Supervision
      • Chairman, assisted by the Executive Clerk, has exclusive administrative supervision.
      • Supervision extends to regional branches, personnel, and Labor Arbiters.
    • Assistance and Equivalent Functions
      • When sitting en banc, the Commission is assisted by the Executive Clerk.
      • When acting through its divisions:
        • The first division is assisted by the same Executive Clerk.
        • The second to eighth divisions are each assisted by a Deputy Executive Clerk.
      • The Commission and its eight divisions are assisted by Commission Attorneys in appellate and adjudicatory functions.
        • Terms are coterminous with the Commissioners they are assigned to.
        • Must be members of the Philippine Bar with at least one year of experience in labor-management relations.
        • Annual salary = SG 26
        • The number of Commission Attorneys, not exceeding five, is determined based on the needs of the Commission, with a limit of five assigned to the Office of the Chairman and each Commissioner.
  • Art. 221. Headquarters, Branches and Provincial Extension Units. 
    • Main Office:
      • Commission and its 1st to 6th Divisions ─ Metropolitan Manila
      • 7th and 8th Divisions ─ Cities of Cebu and Cagayan de Oro, respectively.
    • Regional Branches:
      • The Commission will establish regional branches corresponding to the regional offices of the Department of Labor and Employment, along with sub-regional branches or provincial extension units.
    • Number of Labor Arbiters:
      • The number of Labor Arbiters will be determined based on the needs of the Commission for effective and efficient operation.
  • Art. 222. Appointment and Qualifications. 
    •  Chairman and other Commissioners:
      • Members of the Philippine Bar
      • At least 15 years of practice in Philippine law, with a minimum of 5 years in labor-management relations.
      • Preferably residents of the region where they will hold office.
    • Labor Arbiters:
      • Members of the Philippine Bar, 
      • At least 10 years of law practice, with 5 years in labor-management relations.
    • Term and Age Limit:
      • The Chairman, Commissioners, and Labor Arbiters serve until the age of 65, with the possibility of extension to 70 upon the President's recommendation and Commission en banc approval.
      • Removal can occur for causes provided by law or due to incapacity.
    • Appointment Process:
      • The President appoints the:
        • Chairman
        • Division Presiding Commissioners
        • other Commissioners and
        • Labor Arbiters
      • Vacancies in a specific division are filled from the nominees of the sector that nominated the predecessor.
      • Labor Arbiters are appointed by the President upon the Commission en banc's recommendation, and they are subject to the Civil Service Law.
    • Staff Appointment and Administration:
      • The Chairman of the Commission appoints staff and employees for the Commission and its regional branches.
      • Subject to the Civil Service Law, rules, and regulations.
    • Salaries, benefits, and emoluments are upgraded in accordance with the law and the needs of the service.
  • Art. 223. Salaries, benefits and other emoluments. 
    • Rank and Compensation:
      • The Chairman and members of the Commission have the same rank.
      • Annual Salary = Presiding Justice and Associate Justices of the Court of Appeals, respectively.
    • Allowances, Retirement, and Benefits:
      • They are entitled to the same allowances, retirement, and benefits as the mentioned officials from the Court of Appeals.
    • Labor Arbiters:
      • Labor Arbiters have the same rank as judges of the regional trial courts.
      • Annual salary equivalent to and enjoy the same allowances, retirement, benefits, and privileges = RTC Judges.
    • Protection of Existing Benefits:
      • The provision does not allow for the diminution of existing salaries, allowances, and benefits of the officials mentioned in the article

Amendments by R.A. No. 9347 and R.A No. 10741
  • As here worded Articles 220 to 223 reflect the amendments made by R.A. No. 9347 which, in accordance with Article VI of the Constitution, lapsed into law on July 27, 2006 without the signature of the President and took effect on August 26, 2006. 
  • Further amendments were recently made by RA. No. l0741 (January 12, 2016).
    • Also deleted by R.A. 10741 were the provisions that:
      • labor arbiters shall be appointed to a specific arbitration branch preferably in the region where they are residents
      • Labor Arbiters who are presently holding office in the region where they are residents shall be deemed appointed thereat
  • R.A. No. 9347 
    1. emphasizes that the NLRC is attached to the DOLE, "solely for program and policy coordination only"
    2. increased the NLRC divisions from five to eight
    3. increased commissioners from 15 to 24 (including one chairman)
    4. abolished the executive labor arbiter post while creating that of commission attorney
    5. made rank, salary and benefits of the commissioners the same as those of RTC judges
      • being granted the rank and pay of a judge or justice does not make a grantee a judge or justice
      • these titles pertain only to members of the judiciary who directly exercise judicial powers 
The NLRC: Overview
  • It is the principal government agency that hears and decides labor-management disputes γƒΌ country's labor court.
  • In deciding cases, the NLRC is independent from DOLE.
    • It is attached to DOLE only for purposes of policy coordination.
  • Although NLRC functions as a court, the law (Art. 227) wants NLRC to be more expeditious and less ties to technical rules that the regular courts.
    • This has to be so because most labor cases involve poor workers, most of whom perhaps survive hand-to-mouth wage and can hardly afford lawyers' services.
  • The NLRC has regional arbitration branchers or RABs.
    • The labor arbiters are the NLRC representatives in the country's various regions. 
    • Lawyers by profession, the arbiters arbitrate and decide disputes between the parties.
    • An arbiter's decision may be brought up or appealed to the NLRC division comprising the arbiter's region. The grounds for appeal are specified in Article 229.
      • LA Decision ➡ NLRC Division in Region
The Commission or a Division
  • The NLRC acts as a body:
    • whole Commission of 24 commissioners; or
    • any of the eight divisions, each with three commissioners.
  • The commission acts as a whole (en banc) in four instances:
    1. to promulgate rules and regulations governing the hearing and disposition of cases;
    2. to formulate policies affecting its administration and operations;
    3. to allow cases within the jurisdiction of any division to be heard and decided by another division
    4. to recommend appointment of a labor arbiter
  • Outside of these four instances, the acts of the commission are done through its divisions, including adjudication, i.e. the hearing and decision of cases.
  • An individual commission has no adjudicatory power.
    • He, alone, cannot hear and decide a dispute, although he may concur or dissent when his division decides a case.
Appellate and Original Jurisdiction
  • Each division has exclusive appellate jurisdiction over cases appealed from the labor arbiters within their respective territorial jurisdictions.
    • Divisions one to six handle cases from the National Capital Region and other parts of Luzon,
    • Divisions seven and eighth handle cases from Visayas and Mindanao.
  • But the NLRC, i.e., its divisions also possesses original jurisdiction.
  • This pertains to petitions for injunction (Art. 225) and to certified cases.
    • Certified cases refers to "national interest" labor disputes certified (or referred) to the Commission for compulsory arbitration under Art. 278(g) of the Labor Code. 
    • The certification of the case to the NLRC immediately stops the conduct of a strike or lockout even if there is objection to the certification order of the of a DOLE secretary. 
  • The order, to protect the people's interest, compels the continuation of business operation. 
    • Non-compliance with the certification order is considered illegal act. 
    • Upon the defiant employer, the NLRC may impose payment of back wages, damages, or other relief. 
    • Upon the defiant employees, the NLRC division may impose disciplinary action, including dismissal. Criminal prosecution is a further recourse.
  • The issue about "national interest" will arise again in Article 278.

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