CBA PROCESS OF CONTRACT

A contract executed upon request of either the employer or the exclusive bargaining representative of
the employees, incorporating the agreement reached after negotiations with respect to the following:

1. Wages;

2. Hours of work; and

3. All other terms and conditions of employment, including proposals for adjusting any grievance or
questions under the agreement (Davao Integrated Port Stevedoring Services v. Abarquez, G.R. No.
102132, 1993)

Note: CBA constitutes the law between the parties when freely and voluntarily entered into. The goal
of collective bargaining is the making of agreements that will stabilize business conditions and fix fair
standards of working conditions. (PI Manufacturing Inc. v. PI Manufacturing Supervisors and Foremen
Associations, G.R. No. 167217, 2008

Coverage of CBA It is a well-settled doctrine that the benefits of a CBA extend to the laborers and
employees in the collective bargaining unit, including those who do not belong to the chosen bargaining
labor organization. Otherwise, it would be a clear case of discrimination (PAL v. PALEA, G.R. 142399,
2008).

Commencement of Bargaining During Certification Year or within 12 months after the determination
and certification of the employees’ exclusive bargaining representative.

1. When a party desires to negotiate an agreement, it shall serve a written notice upon the other party
with a statement of its proposals the other party shall make a reply thereto not later than 10 calendar
days from the receipt of such notice;

2. Should differences arise on the basis of such notice and reply either party may request for a
conference which shall begin not later than 10 calendar days from the date of request.

3. If the dispute is not settled, the NCMB shall intervene upon the request of either or both parties or at
its own initiative and immediately call the parties to conciliation meetings. The NCMB shall have the
power to issue subpoenas requiring the attendance of the parties to such meetings. It shall be the duty
of the parties to participate fully and promptly in the conciliation meetings the NCMB may call.

4. During the conciliation proceedings in the NCMB, the parties are prohibited from doing any act which
may disrupt or impede the early settlement of the disputes; and

5. The NCMB shall exert all efforts to settle disputes amicably and encourage the parties to submit their
case to a voluntary arbitrator.

When There Is No Collective Bargaining Agreement (Labor Code, Art. 262) In absence of an agreement
OR other voluntary arrangement providing for a more expeditious manner of collective bargaining, it
shall be the duty of the employer AND the representatives of the employees to bargain collectively in
accordance with the provisions of this Code. The duty to bargain collectively where no CBA exists
involves the performance of a mutual obligation:

1. To meet and convene promptly and expeditiously in good faith for the purpose of negotiating an
agreement with respect to wages, hours of work, and all other terms and conditions of employment
including proposals for adjusting any grievances or questions arising under such agreement; and

2. To execute a contract incorporating such agreements, if requested by either party. (Labor Code, Art.
263

Automatic Renewal Clause

At the expiration of the freedom period, the employer shall continue to recognize the majority status of
the incumbent bargaining agent where no petition for certification election is filled. It shall be the duty
of both parties to keep the status quo and to continue in full force and effect the terms and conditions
of the existing agreement during the 60-day period and/or until a new agreement is reached by the
parties. (Labor Code, Art. 264)

Duty to Bargain Collectively when there is a Collective Bargaining Agreement (Labor Code, Art. 264)

General Rule: When there is a CBA, the duty to bargain also means that neither party shall terminate
nor modify such agreement during its lifetime.

Exception: 60 days before the CBA expires, either party may notify the other in writing that it wants to
terminate or modify the agreement. The CBA remains in full force and effect during the 60 day period
and until a new agreement is reached

2. Rules to retrogate the CBA before and after 6month

3. ULP

JURISDICTION OF THE LABOR

ARBITER AS DISTINGUISHED FROM THE REGIONAL DIRECTOR

In order that the causes of action under Art. 224(a) may prosper (and inferentially, in order that a LA
can exercise jurisdiction over cases thereon), an indispensable precondition must be met – the prior
existence of an EER between the parties. (Palomado v. NLRC, (G.R. No. 96520, 1996) A money claim
arising from employer-employee relations, except SSS, ECC/Medicare claims, is within the jurisdiction of:

Labor Arbiter

Claim, regardless of amount, is accompanied with a claim of reinstatement; or Claim exceeds P5,000,
whether or not there is a claim for reinstatement.

Regional Director
Money claim is not accompanied by reinstatement AND Claim does not exceed P5,000 (Labor Code, Art.
129

Jurisdiction over Contested Cases Forwarded from Regional Director to Labor Arbiter

(a) The employer contests the findings of the labor regulations officer and raises issues thereon;

(b) In order to resolve such issues, there is a need to examine evidentiary matters; and

(c) Such matters are not verifiable in the normal course of inspection. If all requisites are present, the
labor standard case falls under the exception clause under Art. 128(b), and the RD will need to endorse
the case to the appropriate LA. (Ex-Bataans Veterans Security Agency v. Secretary, G.R. No. 162396,
2007)

JURISDICTION OF THE LABOR ARBITER

(1) ULP (PRIORITY, RESOLVED WITHIN 30 CALENDAR DAYS FROM SUBMISSION FOR DECISION)

The LA has jurisdiction over the civil aspect of ULP. The criminal aspect is lodged with the regular courts.
(Labor Code, Art. 258) Violations of the CBA are not ULP unless the same are gross violations. (Labor
Code, Art. 274

The test of whether an employer has interfered with and coerced employees within the meaning of Art.
259 (a) is whether the employer has engaged in conduct which it may reasonably be said tends to
interfere with the free exercise of an employees’ rights, and it is not necessary that there be direct
evidence that any employee was in fact intimidated or coerced by statements of threats of the employer
if there is a reasonable inference that anti-union conduct of the employer does not have an adverse
effect on self-organization and collective bargaining. (Francisco Labor Laws, 1956, Vol. II p 323)

(2) TERMINATION DISPUTES Resolving Questions of Jurisdiction Between Labor Arbiter and Voluntary
Arbitrator General Rule: Complaints for illegal dismissal are within the original and exclusive
jurisdiction of the LA. Exception: The parties may submit the question of termination to voluntary
arbitration but this must be expressed in unequivocal language in their CBA. (Ace Navigation Co. v.
Fernandez, G.R. No. 197309, 2012) Termination of Corporate Officers The LA has jurisdiction over
the termination of corporate employees.

The RTC acting as a Special Commercial Court has jurisdiction over termination of corporate officers. A
person is a corporate officer if:

(a) The creation of the position is under the corporation’s charter or specifically mentioned in the by-
laws as a corporate officer position; and
(b) The election of the officer is by the directors or stockholders. The better policy in determining which
body has jurisdiction over a case would be to consider not only the status or relationship of the parties
but also the nature of the question that is the subject of their controversy. (Matling v. Coros, G.R. No.
157802, 2010) However: In Prudential Bank v. Reyes (G.R. No. 141093, 2001), it was held that an
employee who rose from the ranks is a regular employee and not a mere corporate officer.

(3) CLAIMS FOR WAGES, RATES OF PAY, HOURS OF WORK AND OTHER TERMS AND CONDITIONS OF
EMPLOYMENT – IF ACCOMPANIED WITH A CLAIM FOR REINSTATEMENT

The LA has jurisdiction to award not only the reliefs provided by labor laws, but also damages governed
by the Civil Code. The employee need only include his claim for damages in the illegal dismissal suit filed
with the LA. (Kawachi v. Del Quero, G.R. No. 163738, 2007) (

4) CLAIMS FOR ACTUAL, MORAL, EXEMPLARY AND OTHER FORMS OF DAMAGES ARISING FROM EER

5. CASES ARISING FROM PROHIBITED ACTIVITIES DURING STRIKES, INCLUDING QUESTIONS

LA vs. DOLE Secretary/NLRC Jurisdiction

General Rule: LA has jurisdiction in determining the legality or illegality of a strike or lockout. (NCMB
Primer on Strike, Picketing, and Lockout, No. 22)

Exception: In labor disputes involving industries indispensable to the national interest, the DOLE
Secretary (if there is an assumption of jurisdiction) or NLRC (if certified by the Secretary) has jurisdiction.

Industries Indispensable to the National Interest A. Hospital sector;

B. Electric power industry;

C. Water supply services, to exclude small water supply services such as bottling and refilling stations;

D. Air traffic control; and

E. Such other industries as may be recommended by the National Tripartite Industrial Peace Council.

(6) ALL OTHER CLAIMS ARISING FROM EER INVOLVING AN AMOUNT EXCEEDING P5,000 REGARDLESS OF
WHETHER ACCOMPANIED BY A CLAIM FOR REINSTATEMENT EXCEPT CLAIMS FOR ECC, SSS, MEDICARE,
& MATERNITY BENEFITS

Monetary claims arising from EER which do not exceed Php5,000 fall within the jurisdiction of the DOLE
Regional Director. (LC, Art. 129)
NOTE: A kasambahay’s claim, regardless of the amount, falls within the jurisdiction of the DOLE Regional
Office, and not the NLRC. (Batas Kasambahay, Sec. 37)

Art. 306 provides that “all money claims arising from EER shall be filed within 3 years from the time
the cause of action accrued, before the labor arbiter. But this prescriptive period is subject to
interruption through:

(a) Filing of an action;

(b) Written extrajudicial demand;

(c) Written acknowledgement of indebtedness. (IBC v. Panganiban, G.R. No. 151407, 2007)

A judgment in the form of a wage order for money claims which has become final and executory
prescribes in 10 years, pursuant to Art. 1144 of the Civil Code on prescription of judgments. (JK Mercado
& Sons v. Sto Tomas, G.R. No. 158084, 2008) DOLE certification that all mandatory wage increases and
other monetary benefits were all complied with by the employer is not sufficient proof to conclude
payment of the monetary claims of the employee, especially if the certification was issued based only on
documents submitted by the employer. (Dansart Security v. Bagoy, G.R. No. 168495, 2010)

(7) WAGE DISTORTION CASES IN UNORGANIZED ESTABLISHMENTS Note: In Organized Establishments:

(8) ALL MONETARY CLAIMS OF OFWS ARISING FROM EER OR BY VIRTUE OF ANY LAW OR CONTRACT
INVOLVING FILIPINO WORKERS FOR OVERSEAS DEPLOYMENT, INCLUDING CLAIMS FOR ACTUAL, MORAL,
EXEMPLARY AND OTHER FORMS OF DAMAGES (RA 8042) For the LA to have jurisdiction over money
claims of OFWs, a EER is not necessary, as the article also refers to “law” or “contract.” (see Santiago v.
C.F. Sharp, G.R. No. 162419, 2007) In order for the LA to assume jurisdiction over the money claim, the
OFW must have a certification from the POEA (PNB v. Cabansag, G.R. No. 157010, 2005)

(9) ENFORCEMENT OF COMPROMISE AGREEMENTS WHEN THERE IS NONCOMPLIANCE BY ANY OF THE

Termination of members of cooperatives is not cognizable by the LA (members are not employees) LA
has jurisdiction over illegal dismissal cases involving employees of cooperatives

LA Does NOT Have Jurisdiction Over

Intra-corporate disputes
ii. Cases involving corporate officers (because

they are not employees);

iii. Cases involving GOCCs with original charters;

iv. Cases involving entities immune from suit

(except when the entity performs proprietary

functions);

v. Local water districts (since they are quasi-public

corporations);

vi. Actions based on tort;

vii. Claim of a seaman for damages is under torts

(regular court has jurisdiction). (Tolosa v.

NLRC, G.R. No. 149578, 2003)

Money Claims: LA vs. VA’s Jurisdiction

(a) Money claims arose from EER; and

(b) Money claims arose from law or contracts other than a CBA

Appeal of LA’s Decision Appeal from the decision of the LA is brought by ordinary appeal to the NLRC
within 10 calendar days from receipt of the decision. (Vir-jen Shipping and Marine Services v. NLRC, G.R.
No. 58011-12, 1982

The 10-day period is reckoned from receipt by counsel of the final decision, order or award. This applies
to both appeals from the LA to NLRC and NLRC to CA. (Sy. v. Fairland Knitcraft, G.R. No. 182915, 2011)
This 10-day period is both mandatory and jurisdictional in nature. (Charter Chemical & Coating Corp v.
Tan, G.R. No. 163891, 2009)

NOTE: There is no appeal from the decision of the NLRC. The only way to elevate the case to the CA is by
way of special civil action of certiorari under Rule 65, Rules of Court. From the ruling of the CA, it may
be elevated to the SC by petition for review on certiorari under Rule 45 of the Rules of Civil Procedure.
(St. Martin Funeral Home v. NLRC, et al., G.R. No. 130866, 1998)

Grounds

1. Prima facie evidence of abuse of discretion on the part of LA;

3. Pure questions of law; and

4. Raised serious errors in the findings of facts which could cause grave or irreparable damage or injury
to the appellant. Additional Requirement:

In case of judgment involving a monetary award, employer (appellant) may perfect the appeal of the
LA’s decision only upon the posting of a cash or surety bond issued by a reputable bonding company
duly accredited by the NLRC in the amount equivalent to the monetary award in the judgment appealed
from.

MONEY CLAIMS NOT ARISING FROM EER Regular Courts have jurisdiction

MONEY CLAIMS ARISE FROM EER BUT BY VIRTUE OF IMPLEMENTATION OF CBA Voluntary Arbitrator has
jurisdiction

NOTE: EER is a jurisdictional requisite, absent of which, the NLRC has no jurisdiction to hear and decide
the case. (Hawaiian-Philippine Company v. Gulmatico, G.R. No. 106231, 1994

BUREAU OF LABOR RELATIONS

1. Inter-union and intra-union conflicts

2. All disputes, grievances or problems arising from or affecting labor-management relations in all
workplaces EXCEPT those arising from the implementation or interpretation of the CBA which shall be
the subject of grievance procedure and/or voluntary arbitration

3. Complaint involving federations, national unions, industry unions, its officers or member
organizations

Note: If there was implementation of reinstatement pending appeal, either through actual or payroll
reinstatement, and the employee received his/her salary for the period of such reinstatement, the said
amount received shall be deducted from the total amount of backwages due the employee, assuming
the final decision of the case awarded backwages to the employee.

An employee who was dismissed on the ground of AWOL due to incarceration, is entitled to
reinstatement and under the principle of “no work, no pay”, his full backwages shall only commence
from the time he is refused work after acquittal. (Standard Electric v. Standard Electric employees Union,
G.R. No. 166111, 2005)
Requirements To Perfect Appeal To National Labor Relations Commission Requisites

1. Filed within the reglementary period;

2. Memorandum of Appeal under oath;

3. Appeal fee;

4. Cash, property, or surety bond, if judgment involves monetary award; and

5. Proof of service to the adverse party.

Procedure 1

. File Memorandum of Appeal within 10 calendar days, counted from receipt of decision;

2. Other party can file an Answer within 10 calendar days from receipt of Memorandum of Appeal;

3. NLRC decides within 20 calendar days;

4. NLRC decision becomes final and executory 10 days after it is rendered. (subject to MR)

Self – executing with no need for a writ of execution – only applicable to order issued by Labor Arbiter.

Motion to Reduce Bond

General Rule: Motion to reduce bond does not toll the running of the period to perfect appeal.

If reinstatement is ordered in an illegal dismissal case, it is immediately executory even pending appeal.
This means that the perfection of an appeal shall stay the execution of the decision of the LA except
execution of the reinstatement pending appeal.

NATIONAL CONCILIATION AND MEDIATION BOARD

1. Conciliation

2. Mediation

3. Voluntary arbitration

DOLE SECRETARY

Art. 128. Visitorial and Enforcement Power. Power of the Sec. of Labor or his duly authorized
representative, including labor regulation officers to:

1. Have access to employer’s records and premises at any time of the day or night whenever work is
being undertaken therein

2. Right to copy records

3. To question any employee

5. Issue compliance orders to give effect to labor legislation based on the findings of employment and
enforcement officers or industrial safety engineers made in the course of inspection

6. Issue writs of execution to the appropriate authority for the enforcement of their orders, EXCEPT in
cases where the employer contests the findings of the labor employment and enforcement officer and
raises issues supported by documentary proofs which were not considered in the course of inspection –
in the latter case, the case will have to be forwarded to a Labor Arbiter

VOLUNTARY ARBITRATORS

1. Grievances arising from the implementation or interpretation of CBAs

2. Arising from interpretation or enforcement of company personnel policies

3. Wage distortion issues arising from the application of any wage orders in organized establishments

4. Arising from interpretation and implementation of the productivity incentive programs under RA 6971
5. Any other labor disputes upon agreement by the parties.

6. Hours of work (2lalabas)

7. Covered and excluded of title 1 booklet

8. Requirements of serious misconduct, fraud

Fraud or Willful Breach of Trust (Labor Code, Article 297[b]) Elements of Fraud or Willful Breach of
Trust

1. There must be an act, omission, or concealment;

2. The act, omission or concealment involves a breach of legal duty, trust, or confidence justly reposed;

3. It must be committed against the employer or his/her representative; and

4. It must be in connection with the employees’ work. (D.O. No. 147-15, Sec. 5.2[d])