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THIRTEENTH CONGRESS OF THE REPUBLIC 
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OF THE PHILIPPINES 
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First Regular Session 
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S E N A  
S. B. No. 
Introduced by Senator JINGGOY EJERCITO ESTRADA 
EXPLANATORY NOTE 
This measure was previously embodied under Senate Committee 
on Labor and Employment under Senate Committee Report No. 149 co- 
authored by seventeen (17) Senators after consolidating Senate Bill Nos. 
416, 849, 1975 and 1880 authored by Senators Drilon, Pimentel, Jr., 
Pangilinan and Revilla, Sr., respectively. Unfortunately, before said 
Committee Report could be deliberated upon, Congress adjourned fur the 
2004 national elections. 
An identical Bill was likewise passed by the House Committee on 
Labor and Employment and the Substitute Commieee Bill co-authored 
by fifty three (53) Representatives was referred to the House Committee 
on Appropriations for the funding provision. The Department of Budget 
and Management (DBM), in its letter dated January 9, 2004 addressed to 
Hon. Roland0 G. Andaya, Jr., Chairman of the House Appropriations 
Committee, stated therein that the DBM poses no objection to the passage 
of the Bill but for the meantime there are funds available for the creation 
of only one (1) Division. Unfortunately, the said funding certification 
came rather late since Congress adjourned a few weeks later for the 2004 
national elections. 
Moreover, both versions of the Senate and House bills were 
adopted and endorsed by the Congressional Oversight Committee on 
Labor and Employment (COCLE) in its Report to Congress proposing an 
omnibus amendment to the Labor Code. 
With the legislative history above-mentioned, this legislative 
measure has already been thoroughly discussed and deliberated on 
during the various public hearings conducted by both Houses of Congress 
and the latter has already determined the necessity and urgency in the 
passage of this proposed measure. 
This Measure is long overdue and its passage in this Congress 
cannot be overemphasized. Hence, approval of this legislation is earnestly 
sought. 
ADA 
Senator 


THIRTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
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Fivst Regular Session 
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S E N A T E  
S. B. No. 
I74 
lntroduced by: Senator JINGGOY EJERCITO ESTRADA 
AN ACT 
TO RATIONALIZE THE COMPOSITION AND FUNCTIONS OF THE 
NATIONAL LABOR RELATIONS COMMISSION, AMENDING FOR THIS 
PURPOSE ARTICLES 213, 214, 215, AND 216 OF P.D. 442, AS AMENDED, 
OTHERWISE KNOWN AS THE LABOR CODE OF THE PHILIPFINES. 
Be if enacted by the Senate and the House of Representafives of the Philippines in 
Congress assembled: 
SECTION 3. Article 213 of P.D. No. 442, as amended, otherwise known as 
the Labor Code of the Philippines, is hereby amended to read as follows: 
"ARTlCLE 213. 
National Labor Relafions 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 only, composed of the Chairman and TWENTY THREE (23) 
[fourteen (14)] Members. [Five (5)] 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) [four (4)] remaining members 
shall come from the public sector, with the latter to be chosen PREFERABLY 
from among the INCUMBENT LABOR ARBITERS AS recommendees of the 
Secretary of Labor and Employment. 
"Upon assumption into office, the members nominated by the workers 
and employers organizations shall divest themselves of any affiliation with or 
interest in the labor federation or labor association to which they belong. 


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"The Commission may sit en bnnc or in EIGHT (8) [five (5)] divisions, each 
composed of three (3) members. [Subject to the penultimate sentence of this 
paragraph, t] 
The Commission shall sit en bnnc 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) [five (5)] divisions, the first, second, [and] third, FOURTH, 
FIFTH AND SIXTH divisions shall handle cases coming from the NationaI 
Capital Region and the other parts of Luzon; and the SEVENTH AND EIGTH 
[fourth and fifth] divisions, cases from the Visayas and Mindanao, respectively; 
Provided, that the Commission sitting en bunc 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 jurisdictions. 
"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) [four (4)] other members from the public sector shall be the 
Presiding Commissioner of the second, third, fourth, [and] fifth, SIXTH, 
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SEVENTH AND EIGTH 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 [Executive Labor Arbiters 
and] Labor Arbiters. 
The Commission, when sitting en bnnc, shall be assisted by the same 
Executive Clerk and, when acting through its divisions, by said Executive Clerk 
for its first division and SEVEN (7) [four (4)] other Deputy Executive Clerks for 
the second, third, fourth, [and] fifth, SIXTH, SEVENTH AND EIGTH 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 CO-TERMINUS 
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 SIX (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 LESS THAN THREE (3) ASSIGNED TO THE OFFICE OF THE 
CHAIRMAN AND EACH COMMISSIONER. 
SEC. 2. 
Article 214 of the Labor Code is hereby amended to read as 
follows: 
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"ARTICLE 
214. Headquarters, Branches and Provincial Extension 
Units. The Commission and its First, Second, [and] Third, FOURTH, FIFTH 
AND SIXTH divisions shall have their main offices in Metropolitan Manila, and 
the SEVENTH AND EIGTH [Fourth and Fifth] 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. [Each regional branch shall be headed by an 
Executive Labor Arbiter.] 
SEC. 3. 
Article 215 of the Labor Code is hereby amended to read as 
follows: 
"ARTICLE 215. 
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 [Executive Labor Arbiters and] 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) [seven (7)] years, with at 
least FIVE (5) [three (3)] years experience or exposure in the field of labor- 
management relations. [Provided, however, that incumbent Executive Labor 
Arbiters and Labor Arbiters who have been engaged in the practice of law for at 
least five (5) years may be considered as already qualified for purposes of 
reappointment as such under this Act.] 
"The Chairman, [ and] the other Commissioners, AND the [Executive 
Labor Arbiters and] 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. 
"The Chairman, the Division Presiding Commissioners and other 
Commissioners shall be appointed by the President. [, subject to confirmation by 
the Commission on Appointments.] 
Appointment to any vacancy IN A 
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SPECIFIC DIVISION shall come ONLY from the nominees of the sector which 
nominated the predecessor. The pxecutive 
Labor Arbiters and] Labor Arbiters shall also be appointed by the President, 
upon recommendation of the Secretary of Labor and Employment, TO A 
SPECIFIC ARBITRATION BRANCH PREFERABLY IN THE REGION 
WHERE THEY ARE RESIDENTS, and shall be subject to the Civil Service Law, 
rules and regulations; PROVIDED, THAT THE LABOR ARBITERS WHO ARE 
PRESENTLY HOLDING OFFICE IN THE REGION WHERE THEY ARE 
RESIDENTS SHALL BE DEEMED APPOINTED THEREAT. 
"The Secretary of Labor and Employment shall, in consultation with the 
Chairman of the Commission, 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. 
SEC. 4. 
Article 216, as amended, is hereby further amended to read 
as follows: 
"ARTICLE 216. Salaries, benefits and emoluments. - 
The 
Chairman and members of the Commission shall HAVE THE SAME RANK, 
receive an annual salary [at least] equivalent to, and be entitled to the same 
allowances, RETIREMENT, and benefits as [.I Those of the Presiding Justice and 
Associates of the Court of Appeals, respectively. The [Executive Labor Arbiters] 
LABOR ARBITERS shall HAVE THE 
SAME RANI<, receive an annual salary [at least] equivalent to AND BE 
ENTITLED TO THE SAME RETIREMENT AND OTHER BENEFITS AS 
THOSE OF THE JUDGES OF THE REGIONAL TRIAL COURTS. [That of an 
Assistant Regional Director of the Department of Labor and Employment and 
shall be entitled to the same allowances and benefits as that of the Regional 
Director of the said Department. The Labor Arbiters shall receive an annual 
salary at least equivalent to, and be entitled to the same allowances and benefits 
as, that of an Assistant Regional Director of the Department of Labor and 
Employment.] In no case, however, shall the provisions of this Article result in 
the diminution of the existing salaries, allowances and benefits of the above- 
mentioned officials. 
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SEC. 5. 
Separability Clause. - 
If any part, section, or provision 
of this Act shall be held invalid or unconstitutional, the other provisions shall not 
be affected thereby. 
SEC. 6. 
Repealing Clause. - The pertinent provisions of P.D. 442, as 
amended, otherwise known as the Labor Code of the Philippines, and all other 
Acts, laws, executive orders, presidential issuances, rules and regulations or any 
part thereof which are inconsistent herewith are hereby deemed repealed or 
modified accordingly. 
SEC. 7. 
EfSecHvity. -This Act shall take effect fifteen (15) days after 
its complete publication in the Official Gazette or in at least two (2) national 
newpapers of general circulation, whichever comes earlier. 
Approved, 
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