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Republic of the Philippines | pate: 25 JUL 2015
HOUSE OF REPRESENTATIVES, ame
Quezon City, Metro Manila -
By:

SEVENTEENTH CONGRESS
First Regular Session

REGISTRATION UNIT
BILLS AND INDEX SERVICE

House Bill No. 286.4

Introduced by DIWA Party-list Representative Emmeline Y. Aglipay ~ Villar

EXPLANATORY NOTE

A speedy disposition of cases is not only a constitutional guarantee, it is an essential
element of both justice and peaceful relations. This is particularly true in the realm of
labor and employment, where the ability of a worker to bring home enough income to
feed his or her family, or the sustainability of an employer's business endeavor, can
hinge on a final resolution to a labor dispute.

While there are many factors that may be considered to expedite such proceedings.
rendering the decisions of Labor Arbiters directly appealable to the Court of Appeals,
rather than the National Labor Relations Commission, is one method that would
engender immediate results. A road map for such a change is provided by Senator
Miriam Defensor Santiago's Senate Bill No. 1848, filed in the sixteenth Congress,
which we are filing in the House with several substantive changes. This bill reduces by
one the layers of appellate review that a labor dispute may go through, while providing
for a smooth transition to the new procedural regime.

( Aamtac Ke kite
EMMELINE Y. AGLIPAY — VILLAR
Representative, DIWA Party-list



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

SEVENTEENTH CONGRESS
First Regular Session

House Bill No.1861

Introduced by DIWA Party-list Representative Emmeline Y. Aglipay ~ Villar

AN ACT ESTABLISHING THE REGIONAL COURTS OF LABOR
RELATIONS (RCLR) UNDER THE SUPERVISION OF THE SUPREME
COURT, THEREBY ABOLISHING THE NATIONAL LABOR RELATIONS
COMMISSION (NLRC)

Be it enacted by the Senate and House of Representatives of the Republic of the Philippines in
Congress assembled:

SECTION 1. Establishing the Regional Court of Labor Relations;
Abolishing the National Labor Relations Commission. - There is hereby established
the Regional Courts of Labor Relations (RCLR) under the supervision of the Supreme
Court, thereby abolishing the National Labor Relations Commission (NLRC). Alll
unexpended funds, properties, equipment, and records of the NLRC and such of its
personnel as may be necessary are hereby transferred to the Regional Courts of Labor
Relations under the administrative and fiscal supervision of the Supreme Court;
provided, that no Regional Courts of Labor Relations or Local Branches as defined
herein, shall be in operation until the end of the Qualification Period found in Section 3.

SECTION 2. Incumbent Labor Arbiters; Preference and Qualification. -
The incumbent Labor Arbiters shall be given special consideration should they apply as
Judges of the Regional Court of Labor Relations in the regions where they are residing
and holding office at the date of the effectivity of this Act, provided, that they shall have
duly completed the necessary courses of the Philippine Judicial Academy to qualify as
judges under Republic Act No. 8557 by the end of the Qualification Period; provided
‘further, that the Philippine Judicial Academy shall create a special batch/es and/or
curriculum to ensure that all interested incumbent labor arbiters have the chance to
complete the necessary courses before the end of the Qualification Period; provided
‘further, that Labor Arbiters who are unable to qualify within the Qualification Period


shall be deemed to have accepted retirement or separation pay under Section 6 of this
Act.

SECTION 3. Qualification Period. - This period shall be defined as twelve
months from the effectivity of this Act.

SECTION 4. Existing Regional Arbitration Branches converted to Regional
Courts of Labor Relations Local Branches. - The existing Regional Arbitration
Branches nationwide shall be converted to Local Branches of the Regional Courts of
Labor Relations without increasing the approved plantilla for Labor Arbiters nationwide.
‘The number of seats for the Judges of the Regional Courts of Labor Relations in each
Local Branch shall correspond to the number of plantilla positions for Labor Arbiters
there immediately preceding the implementation of this Act. Fach Local Branch shall be
headed by an Executive Judge of the Regional Courts of Labor Relations.

SECTION 5. Retirement or Separation of NLRC Commissioners. -
Consequent to the abolition of the NLRC, incumbent Commissioners who have attained
sixty (60) years of age and have rendered at least twenty (20) years in government
service, the last five (5) years of which shall have been continuously rendered as
Commissioner, shall be deemed compulsorily retired with full retirement gratuity and
pension pursuant to applicable laws. Those who lack any of the above qualifications
shall receive a separation pay equivalent to two (2) months’ salary for every year of
service in government.

SECTION 6. Optional Retirement or Severance Pay for an Incumbent
Labor Arbiter. -Incumbent Labor Arbiters who have attained the age of sixty (60)
years and have rendered at least twenty (20) years in government service, the last five
(5) years of which shall have been continuously rendered as Labor Arbiter, shall be
qualified for optional retirement. Those who lack any of the above qualifications and/or
have no intention to assume the position as Judges of the Regional Courts of Labor
Relations pursuant to Section 2 hereof, shall be entitled to a severance pay equivalent to
two (2) months' salary for every year of government service. The choice for severance
pay must be exercised within a period of sixty (60) calendar days after the effectivity of
this Act; otherwise, said option shall be deemed waived.

SECTION 7. Retirement Gratuity and Pension of Qualified Commissioners
and Labor Arbiters. - Commissioners who are qualified for compulsory retirement and
incumbent Labor Arbiters who are qualified for optional retirement pursuant to Section
3 and Section 4 of this Act shall, respectively, be entitled to the full retirement gratuity
and pension provided for under applicable laws.

SECTION 8. Subsequent Appointments to the Regional Courts of Labor
Relations. - Subject to Sections 2 and 4 of this Act, the President shall appoint Judges


to the Regional Courts of Labor Relations from a list of at least three (3) nominees
prepared by the Judicial and Bar Council for every vacant position; provided, that said
nominees shall meet the qualifications as those of the Judges of the Regional Trial
Courts. Such appointments need no confirmation.

SECTION 9. Parity in Rank, Salaries, Benefits, Other Emoluments, and
Retirement Gratuity. - Judges of the Regional Courts of Labor Relations shall have
the same rank, receive an annual salary equivalent to, and be entitled to the same
allowances, retirement gratuity, and other benefits and privileges as those of the Judges
of the Regional Trial Courts pursuant to applicable laws. They shall hold office during
good behavior until they reach the age or seventy (70) years, unless sooner removed for
cause as provided for by law or become incapacitated to discharge the duties of their
office.

SECTION 10. Jurisdiction of the Regional Courts of Labor Relations. - The
Regional Courts of Labor Relations shall have original and exclusive jurisdiction over
all cases enumerated under Article 217 of the Labor Code, as amended, including
complaints of Overseas Filipino Workers pursuant to Republic Act No. 8042, otherwise
known as the Migrant Workers and Overseas Filipinos Act of 1995. Other provisions of
the Labor Code not inconsistent with this Act shall continue to be applied.

“TION 11. Nature of Proceedings Before the Regional Courts of Labor
Relations. - Technical rules of procedure shall not be strictly applied to proceedings
before the Regional Courts of Labor Relations.

|ON 12. Applicability of the Alternative Dispute Resolution System
Law (ADR) in Labor Cases. -Any provision of law to the contrary notwithstanding,
pertinent provisions of the Alternative Dispute Resolution System (ADR) through the
use of voluntary arbitration, mediation, and conciliation process established under
Republic Act No. 9285 and other applicable laws currently being implemented in the
Regional Trial Courts shall likewise be applied in the resolution of labor cases before
the Regional Courts of Labor Relations.

SECTION 14. Appeal from the Regional Courts of Labor Relations. -An.
appeal may be taken from a judgment or final order that completely disposes of the case,
rendered by a Judge of the Regional Courts of Labor Relations, to the Court of Appeals
pursuant to the Rules of Court; provided, however, that the Supreme Court may
promulgate rules, and regulations specifically suited to the proceedings before the
Regional Courts of Labor Relations as a court with specialized jurisdiction.

SECTION 15. Personnel Retention or Movement; Position and Salary
Grade Reclassification. - Personnel assigned in the office of the Labor Arbiters shall
be retained and their position classification, salary grade, level, and benefits shall



correspondingly be adjusted to conform with the staffing pattern of the Regional Courts,
of Labor Relations. Subject to the personnel guidelines to be issued by the Supreme
Court, personnel in the NLRC with permanent appointments shall either be transferred
to the office of the Judges of the Regional Courts of Labor Relations to augment their
support staff or to the administrative offices in the Local Branches.

.ose for whom the transfer would require a transfer of residence and for this reason
decide against retention shall be entitled to separation pay in an amount to be
determined by the Department of Labor and Employment within ninety (90) days from
the approval of this Act.

SECTION 16. Personnel Separated from Service. -Personnel separated from
the service as a result of the implementation of this Act shall enjoy the rights and
protection provided them under existing laws and such other pertinent rules and
regulations. In any case, no lay-offs shall be effected until funds to cover the gratuity
and/or retirement benefits of those laid off are duly certified as available.

SECTION 17. Transitory Provision; Disposition of Pending Cases During
Winding-Up Period -All pending cases before the incumbent Labor Arbiters and the
Divisions of the NLRC shall be disposed of by them within the winding-up period of
not more than one hundred eighty (180) days. Thereafter, for cases before the Divisions
of the NLRC, all unresolved cases shall be deemed appealed to the Court of Appeals
pursuant to the Rules of Court and Records thereof shall be forwarded by the
Commission to the Court of Appeals. For unresolved cases of the incumbent Labor
Arbiters, their records shall be forwarded to the Interim Regional Courts of Labor
Relations under Section 18

SECTION 18. Transitory Provision; Disposition of Subsequent Cases
Before the Establishment of the Regional Courts of Labor Relations -Pending the
establishment and operation of the Regional Courts of Labor Relations, and the
appointment of designated judges, the Supreme Court shall designate Interim Regional
Courts of Labor Relations from among the branches of the Regional Trial Court;
provided, that at least sixteen such courts shall be designated in Luzon, two in the
Visayas, and two in Mindanao, with the selection of the locations of the courts taking
into account continuity of the services previously provided by the NLRC, as well as
geographic accessibility, case load of the RTC, and the major concentrations of labor
cases; provided finally, that after the initial designation of Interim Regional Courts of
Labor, the Supreme Court may designate additional Interipm Regional Courts of Labor

as the need arises.

SECTION 19. Appropriations; Funding Source. - The amount necessary for
the initial implementation of this Act shall be taken from the unexpended funds as a
result of the abolition of the NLRC. The fees collected and interests on deposits by the


Regional Courts of Labor Relations shall accrue to the funds provided for under
Republic Act No. 9227, as part of the funding source for special allowance of the
Judges of the Regional Courts of Labor Relations similar to that of that of the Judges of
the Regional Trial Courts. Any deficiency shall be sourced out of any funds in the
National Treasury not otherwise appropriated. Thereafter, such sums as may be
necessary for the continued implementation of this Act shall be included in the budget
of the Supreme Court for the succeeding General Appropriations Acts.

SECTION 20. Issuance of Implementing Guidelines. - The Supreme Court,
the Department of Labor and Employment, and the Secretary of Budget and
Management, shall issue the necessary guidelines for the proper implementation of this,
Act within ninety (90) days from approval hereof.

SECTION 21. Separability Clause. - If any provision, or part hereof, is held
invalid or unconstitutional, the remainder of the law or the provision/s not otherwise
affected shall remain valid and subsisting.

SECTION 22. Repealing Clause. -Any law, presidential decree or issuance,
executive order, letter of instruction, administrative order, rule or regulation contrary to
or inconsistent with the provisions of this Act is hereby repealed, modified, or amended
accordingly.

SECTION 23. Effectivity Clause.- This Act shall take effect thirty(30) days
afier its publication in the Official Gazette or at least two (2) newspapers of general
circulation.

Approved,