COURT OF INDUSTRIAL RELATIONS

On 29 October 1936, the National Assembly through Commonwealth Act No. 103, created the Court of Industrial Relations (CIR), and vested therein jurisdiction over labor cases.

The CIR was placed under the executive supervision of the Department of Justice (Sec. 1, CA 103). The Court consisted of a Presiding Judge and four Associate Judges to be appointed by the President of the Philippines with the consent of the Commission on Appointments of the National Assembly.

The Judges of the Court were required to have the same qualifications as those provided in the Constitution for members of the Supreme Court. Their annual compensations were equal to that given the Judges of Court of First Instance.

Its jurisdiction, as amended by CA 254, 355, 559, 3035, among others, were: decide, investigate, and/or settle dispute arising between and/or affecting employers and employees or laborers; disputes arising between and/or affecting landlords and tenants or farm-laborers (tenancy disputes). Like the NLRC, the CIR adopted its own rules of procedure with the Rules of Court having a suppletory effect. Its decisions were reviewable by the Supreme Court by Petition for Certiorari on questions of law.

The powers of the CIR were enlarged by R.A. No. 875, otherwise known as Industrial Peace Act, and enacted on 15 June 1953, to include unfair labor practice issues; matters relating to labor disputes in industries indispensable to the national interest; questions concerning representation of employees; and claims under the minimum wage law and hours of work. It instituted free collective bargaining as the principal mode of labor dispute settlement.

THE INTERIM NLRC

On 14 October 1972, President Ferdinand E. Marcos, during Martial Law period and by virtue of Proclamation 1081, issued P.D. 21, creating, among others, an interim National Labor Relations Commission composed of three (3) members, with the Undersecretary of Labor or duly authorized representative as Chairman and the Director of Labor Relations and the Director of Labor Standards or their duly authorized representative, as members.

The Interim Commission exercised original and exclusive jurisdiction over all matters involving employer-employee relations including all disputes and grievances which may otherwise lead to strikes and lock-outs under R.A. 875; all strikes overtaken by Proclamation 1081; and all pending cases in the Bureau of Labor Relations.

The interim NLRC existed for two (2) years, until the passage of P.D. 442.

THE NLRC UNDER PRESIDENTIAL DECREE 442

Because of short and inadequate rules, most of the tempo of CIR proceedings under R.A. 875, was dictated by the Rules of Court often to the disadvantage of the working man. This was especially so in labor cases involving unfair labor practice (ULP) which was criminal in nature under the law.

It was for that reason that P.D. 442, abolishing the CIR and the Interim NLRC, was issued on November 1, 1974.

The NLRC, under P.D. 442, is under the administrative supervision of the Secretary of Labor and was composed of a Chairman representing the public, two members representing the workers and two members representing the employers (Art. 261, P.D. 442). The Commission has the exclusive appellate jurisdiction over all cases decided by the Labor Arbiters (which are under the administrative supervision of the Chairman) and compulsory arbitrators (Art. 265, P.D. 442).

The decisions of the Commission, although final and unappealable, can be elevated to the Supreme Court by petition for certiorari on questions of law; and in cases where national interest is involved, appealable to the Office of the President upon the recommendation of the Secretary of Labor (Art. 302, P.D. 442).

But before P.D. 442 became effective on November 1, 1974, it was further amended by P.D. 570-A on November 1, 1974 which provided the following features :

• The composition of the Commission was increased to seven members, enabling it to sit in two (2) Divisions. It was composed of a Chairman, two (2) members representing the public and two (2) members representing the employers. The Divisions were each chaired by a government representative.
• It added to the Commission the power "to enjoin any or all acts involving or arising from any case pending before it; which, if not restrained forthwith, may cause grave or irreparable damage to any of the parties to the case or seriously affect social or economic stability."
• The power of the Commission over strike and lockout disputes certified to it by the Minister of Labor and Employment; petitions for injunctions in strike and lockout disputes; and contempt cases involving the Commission itself or any of its members. It also exercised exclusive appellate jurisdiction over all cases decided by Labor Arbiters and case involving overseas Filipino workers decided by the Philippine Overseas Employment Administration (POEA).
• The original and exclusive jurisdiction of Labor Arbiters over ULP cases; those that workers may file involving wages, hours of work and other terms and conditions of employment; all money claims of the worker, including those based on non-payment or underpayment of wages, overtime compensation, separation pay and other benefits provided by law or appropriate agreement, except claims for employees' compensation, social security, medicare and maternity benefits; violation of labor standard laws; cases involving household services; termination cases; and cases arising from any violation of Art. 265 of the Labor Code, including questions involving the legality of strikes and lockouts.

Other amendatory laws passed affecting the NLRC were:

1. P.D. No. 643, effective January 21, 1975, which made decisions of the Commission appealable to the Secretary of Labor and the decisions of the latter in turn, appealable to the President of the Philippines;

2. P.D. No. 823, effective November 3, 1975, which allowed the Secretary of Labor to assume jurisdiction over cases pending before the Commission that had not been decided within the reglementary period;

3. P.D. No. 849, effective December 16, 1975, which granted to the Commission jurisdiction over strike disputes certified to it by the President of the Philippines or his duly authorized representative;

4. P.D. No. 850, effective December 16, 1975, which removed from the statement of jurisdiction of Labor Arbiters under Art. 216, the phrase, "violation of labor standard laws";

5. P.D. No. 1367, effective May 1, 1978, which further reduced to only three (3) the types of cases or matters subject to covered under jurisdiction over "moral and other forms of damages";

6. P.D. No. 1391, effective May 29, 1978, which removed the Labor Arbiters from the administrative supervisions of the Commission and integrated them into the Regional Offices of the Department of Labor; made the Secretary of Labor as Chairman of the Commission; increased the members of the Commission to ten (10) including the Secretary, in effect creating a 3rd Division of the Commission; made the Chairman of the 1st Division Vice-Chairman of the Commission; and eliminated appeals from the Commission to the Secretary of Labor.

7. P.D. No. 1691, effective May 1, 1980, which made decisions of the Bureau of Employment Services and the National Seaman's Board in cases involving Filipino workers appealable to the Commission, and restored to five (5) the types of cases subject to the jurisdiction of Labor Arbiters, removing the injunction against their entertaining claims for "moral or other forms of damages";

8. B.P. Blg. 70, effective May 1, 1980, which expressly authorized Labor Arbiters jurisdiction to grant claims for damages as an administrative relief in ULP cases;

9. B.Ps. Blg. 130 and 227, effective August 17, 1981 and May 31, 1982 respectively, defined the powers of the Commission in strike disputes and restored the administrative supervision of the Commission over the regional branches and the Labor Arbiters to the Commission as integral parts thereof."

THE NLRC UNDER EO'S 47 AND 252

Executive Order No. 47 enacted on 10 September 1986, further amended Articles 213, 214, 215 and 216 of the Labor Code. Under said Order, "the NLRC shall be composed of the Minister of Labor and Employment as ex-officio Chairman and nine (9) Commissioners. In the absence of the Minister, his "duly authorized Deputy Minister shall act as Chairman."

The Order further stated that "the Commission may sit en banc or in three divisions, each composed of three (3) members. It shall determine, by rules approved by the Chairman, the cases to be decided en banc and by a Division. The decision of a Division shall have the same force and effect as that of the Commission."

The Minister of Labor and Employment exercises administrative supervision over the Commission, its regional branches and their personnel. The Presiding Commissioner of the First Division shall act as Vice-Chairman of the Commission and shall be its day-to-day Administrator.

The objective of E.O. 47 was to professionalize the labor dispute settlement machinery and to clean up the organization of sectoral interests. To attain this, the positions of Commissioner, Executive Labor Arbiter and Labor Arbiter were upgraded requiring the appointees to be members of the bar. The Commissioners were required to have at least five (5) years experience in handling labor-management relations to qualify and the ELAs and LAs must have at least two (2) years experience in the same field.

Before, the NLRC was a tripartite body exercising a "tripartite approach' to the solution of labor disputes. The Minister of Labor and Employment as Chairman, a Vice-Chairman and two other Commissioners represented the public sector, three other Commissioners represented the act as such with the abolition of sectoral representations.

On 25 July 1987, because of the pressing need to "strengthen further the labor dispute settlement machinery and to prevent undue delays as well as to ensure the just and efficient resolution of labor cases, "E.O. 252 was issued, amending further Articles 213, 214 and 215 of P.D. 442.

Under E.O. 252, the Commission shall be composed of the Secretary of Labor and Employment and fifteen (15) Commissioners. The Commission may sit en banc or in five (5) Divisions, each composed of three (3) members. It shall determine, by rules approved by the Chairman, the cases it shall decide en banc and those which a Division shall decide. The decision of a Division shall have the force and effect of a decision of the Commission.

The tripartite approach that was abolished under E.O. 47 was restored under this E.O. 252.

THE NLRC UNDER R.A. 6715

Two years and 21 days after September 10, 1986, the NLRC again shed off its structural organization and composition with the enactment of Republic Act 6715 which took effect on March 21, 1989.

R.A. 6715 defined clearly the relationship between the Commission and the Department of Labor and Employment (DOLE) to that of being an attached agency of the Department "for program and policy" coordination only. The NLRC today has its own full time Chairman, (who is also the Presiding Commissioner of the First Division), and fourteen (14) Commissioners.

The Commission reverted to its tripartite composition taken away by Executive Order 47, giving back to the public, workers, and employers' sectors equal representation in its membership.

The three sectors are represented in the five Divisions of the Commission with the public sector representative acting as Presiding Commissioner.

The law also stipulates that the effect of a decision of each Division shall have the force and effect of a decision of the Commission.

The commission en banc sits 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 is regionalized. The First and Second Divisions, with main offices in Metro Manila, handling cases coming from the National Capital Region. The Third Division also with offices in Manila handles cases from Luzon except the NCR. The Fourth Division which sits in Cebu City handles cases from the Visayas, while the Fifth Division which sits in Cagayan de Oro City handles cases from Mindanao.

Under this new structure, the status of the Commission has been elevated similar to that of the Court of Appeals. In keeping with this raised status, the qualifications for the Chairman and members of the Commission have been raised, i.e., they must have been engaged in the practice of law in the Philippines for at at least 15 years with five (5) years experience or exposure in labor-management relations. The Chairman has a salary grade of 31 and grade 30 for Commissioners.

Likewise, the qualifications of the Executive Labor Arbiters and Labor Arbiters were also upgraded. They shall be members of the Philippine Bar and must have been engaged in the practice of law in the Philippines for at least seven (7) years, with at least three (3) years exposure in the field of labor-management relations.

To ensure the independence of the Commission, the Executive Labor Arbiters and the Labor Arbiters, now have security of tenure. Like members of the judiciary, they shall "hold office during good behavior" until they reach the age of 65.

The Chairman, Division Presiding Commissioners and other Commissioners, including Executive Labor Arbiters and Labor Arbiters shall all be appointed by the President, subject to Civil Service law, rules and regulation.

The jurisdiction of the Labor Arbiters and the Commission are specifically defined under Article 217 of the Labor Code as amended by R.A. 6715 and the latest, R.A. 8042 (vesting further jurisdiction to hear and decide labor disputes involving money claims of overseas Filipino workers).

In case of a judgment involving a monetary award, an appeal by the employer may be perfected only upon the posting of a cash or surety bond issued by a reputable bonding company (duly accredited by the Commission or the Supreme Court ) in the amount equivalent to the monetary award in the judgment appealed from.

R.A. 6715 has made the NLRC functionally and structurally, unique, closely comparable to the Court of Appeals. Functionally, because its duties are to review decisions of the Labor Arbiters and the POEA.

Structurally, because its decisions, like the CA, is appealable only to the SC by Petition for Certiorari on questions of law, and is attached to DOLE for "program and policy coordination only".

REPUBLIC ACT NO. 7700

     An act providing for concurrent jurisdiction between and among the First, Second and Third Divisions of the National Labor Relations Commission (to handle all appealed cases coming from Luzon including cases originating from the National Capital Region) to further ensure speedy disposition of cases, amending for this purpose Article 213 of Presidential Decree No. 442, as amended and for other purposes.

     The Fourth and Fifth Divisions, shall handle 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 their respective territorial jurisdiction."

REPUBLIC ACT NO. 8042

AN ACT TO INSTITUTE THE POLICIES OF OVERSEAS EMPLOYMENT AND ESTABLISH A HIGHER STANDARD OF PROTECTION AND PROMOTION OF THE WELFARE OF MIGRANT WORKERS, THEIR FAMILIES AND OVERSEAS FILIPINOS IN DISTRESS, AND FOR OTHER PURPOSES.

This Act is also known and cited as the "Migrant Workers and Overseas Filipinos Act of 1995."

SEC. 10. Money Claims. - Notwithstanding any provision of law to the contrary, the Labor Arbiters of the National Labor Relations Commission (NLRC) shall have the original and exclusive jurisdiction to hear and decide, within ninety (90) calendar days after the filing of the complaint, the claims arising out of an employer-employee relationship 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.

The liability of the principal/employer and the recruitment/placement agency for any and all claims under this section shall be joint and several. This provision shall be incorporated in the contract for overseas employment and shall be a condition precedent for its approval. The performance bond to be filed by the recruitment/placement agency, as provided by law, shall be answerable for all money claims or damages that may be awarded to the workers. If the recruitment/placement agency is a judicial being, the corporate officers and directors and partners as the case may be, shall themselves be jointly and solidarily liable with the corporation or partnership for the aforesaid claims and damages.

Such liabilities shall continue during the entire period or duration of the employment contract and shall not be affected by any substitution, amendment or modification made locally or in a foreign country of the said contract.

Any compromise/amicable settlement or voluntary agreement on money claims inclusive of damages under this section shall be paid within four (4) months from the approval of this settlement by the appropriate authority.

In case of termination of overseas employment without just, valid or authorized cause as defined by law or contract, the workers shall be entitled to the full reimbursement of his placement fee with interest of twelve percent (12%) per annum, plus his salaries for the unexpired portion of his employment contract or for three (3) months for every year of the unexpired term, whichever is less.

Noncompliance with the mandatory periods for resolutions of cases provided under this section shall subject the responsible officials to any or all of the following penalties:

1. The salary of any such official who fails to render his decision or resolution within the prescribed period shall be, or caused to be, withheld until the said official complies therewith;
2. Suspension for not more than ninety (90) days; or,
3. Dismissal from the service with disqualification to hold any appointive public office for five (5) years.

Provided, however, That the penalties herein provided shall be without prejudice to any liability which any such official may have incurred under other existing laws or rules and regulations as a consequence of violating the provisions of this paragraph.