xNEGROS METAL CORPORATION
xNEGROS METAL CORPORATION
vs.
ARMELO J. LAMAYO, Respondent.
Facts :
When the respondent lamayo was ask a question by his manager with regard the grinder
that he was using to his work and his manager finds it unsatisfactory wherein he was
suspended fo 3 days and when he reported to work he was again suspended for another
10 days for failing to signn the memorandum. After he served the suspension he was
informed that he was terminated and instructed him to draft a resignation letter which
resulter for him to file a complaint for illegal dismissal.
Petitioner contends that LA had no jurisdiction over the case since it must be first settled
before the companys grievance machinery under their CBA.
On petitioners appeal, NLRC set aside the ruling and held to disposed the case on
companys grievance procedure
CA set aside NLRCs decision and reinstated LAs decision and held that its LA’s
jurisdiction and not in the CBA but in labor statutes
Art. 217. Jurisdiction of the Labor Arbiters and the Commission. - (a) Except as otherwise
provided under this Code, the Labor Arbiters shall have original and exclusive jurisdiction
to hear and decide, within thirty (30) calendar days after the submission of the case by
the parties for decision without extension, even in the absence of stenographic notes, the
following cases involving all workers, whether agricultural or non-agricultural:
2. Termination disputes;
3. If accompanied with a claim for reinstatement, those cases that workers may file
involving wages, rates of pay, hours of work and other terms and conditions of
employment;
4. Claims for actual, moral, exemplary and other forms of damages arising from the
employer-employee relations;
5. Cases arising from any violation of Article 264 of this Code, including questions
involving the legality of strikes and lockouts; and
6. Except claims for Employees Compensation, Social Security, Medicare and maternity
benefits, all other claims arising from employer-employee relations, including those of
persons in domestic or household service, involving an amount exceeding five thousand
pesos (₱5,000.00) regardless of whether accompanied with a claim for reinstatement.
(b) The Commission shall have exclusive appellate jurisdiction over all cases decided by
Labor Arbiters.
(c) Cases arising from the interpretation or implementation of collective bargaining
agreements and those arising from the interpretation or enforcement of company
personnel policies shall be disposed of by the Labor Arbiter by referring the same to the
grievance machinery and voluntary arbitration as may be provided in said agreements.
(emphasis and underscoring supplied)
The Commission, its Regional Offices and the Regional Directors of the Department of
Labor and Employment shall not entertain disputes, grievances or matters under the
exclusive and original jurisdiction of the Voluntary Arbitrator or panel of Voluntary
Arbitrators and shall immediately dispose and refer the same to the Grievance Machinery
or Voluntary Arbitration provided in the Collective Bargaining Agreement. (emphasis and
underscoring supplied)
ART. 262. Jurisdiction over other labor disputes. - The Voluntary Arbitrator or panel of
Voluntary Arbitrators, upon agreement of the parties, shall also hear and decide all
other labor disputes including unfair labor practices and bargaining deadlocks.
(emphasis and underscoring supplied)
Under Art. 217, it is clear that a labor arbiter has original and exclusive jurisdiction
over termination disputes. On the other hand, under Article 261, a voluntary
arbitrator has original and exclusive jurisdiction over grievances arising from the
interpretation or enforcement of company policies.
In the present case, the CBA provision on grievance machinery being invoked by
petitioner does not expressly state that termination disputes are included in the ambit of
what may be brought before the company’s grievance machinery. The Court sustains the
Labor Arbiter’s ruling that respondent was illegally dismissed absent a showing that he
was accorded due process when he was summarily terminated.