Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
First Regular Session

HOUSE BILL No. 7002

Introduced by HON. LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR.

AN ACT
CREATING ONE ADDITIONAL DIVISION IN THE NATIONAL LABOR
RELATIONS COMMISSION, INCREASING THE NUMBER OF
COMMISSIONERS FROM FOURTEEN (14) TO SEVENTEEN (17),
AMENDING FOR THE PURPOSE PRESIDENTIAL DECREE NO. 442, AS
AMENDED, OTHERWISE KNOWN AS THE LABOR CODE OF THE
PHILIPPINES, APPROPRIATING FUNDS THEREFOR, AND FOR OTHER
PURPOSES.

EXPLANATORY NOTE

This measure proposes the creation of an additional division for the National
Labor Relations Commission (NLRC) with the corresponding increase in the
number of commissioners, in order for them to better equipped in the proper
administration and implementation of labor rules and laws.

Recently, the Philippine Statistics Authority released its Latest Labor Force
Survey, indicating that the country's employment rate is now at 95.5% as of
October 2019. Meanwhile, unemployment rate has gone down to only 4.5%, the
lowest in the last 14 years.

NLRC is a quasi-judicial body tasked to promote and maintain industrial peace
by resolving labor and management disputes involving both local and overseas
workers through compulsory arbitration and alternative modes of dispute
resolution. Since its creation in the 1970s, the country's labor force is now
comparably bigger thanks to robust economic growth with more businesses and
trades being opened and expanded.

In 2018, the NLRC posted an overall disposition output of 48,770 cases through
compulsory arbitration, which consist of 37,073 (76%) original cases from the
regional arbitration branches and 11,733 (24%) appealed cases from the
commission proper.


With the growing number of workers in the country and the number of cases as
shown by the said statistics, the NLRC really has to expand in order to minimize
case backlogs and address labor disputes in a timely manner. This proposal
intends to update the three-decade-old Labor Code in order to keep abreast with
the changing conditions of the present time.

The immediate passage of this bill is most earnestly sought.

ay Al

LUIs IND “LRAY”/F. VILLAFUERTE JR.,


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
First Regular Session

HOUSE BILL NO. pute

Introduced by HON. LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR.

AN ACT
CREATING ONE ADDITIONAL DIVISION IN THE NATIONAL LABOR
RELATIONS COMMISSION, INCREASING THE NUMBER OF
COMMISSIONERS FROM FOURTEEN (14) TO SEVENTEEN (17),
AMENDING FOR THE PURPOSE PRESIDENTIAL DECREE NO. 442, AS
AMENDED, OTHERWISE KNOWN AS THE LABOR CODE OF THE
PHILIPPINES, APPROPRIATING FUNDS THEREFOR, AND FOR OTHER
PURPOSES.

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

Section 1. Title Il, Chapter |, Article 213 of Presidential Decree No. 442, as
amended, is hereby further amended to read as follows:

"Article 213. National Labor Relations Commission. There shall be
a National Labor Relations Commission which shall be attached to
the 6 Department of Labor and Employment for program and
policy coordination only, composed of a Chairman and
U }] SEVENTEEN (17) Members.

[Fiye {5)] SIX (6) members [each] shall be chosen from among the
nominees of the workers and employers’ organizations,
respectively. The Chairman and [thefour{4}]_ FIVE (5)
[remaining] members shall come from the public sector, with the
latter to be chosen from among the 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


affiiation with or interest in the federation or association to which
they belong.

The Commission may sit en banc or in [five-f5)} SIX (6) divisions,
each composed of three (3) members. Subject to the penultimate
sentences of this paragraph, the Commission shall sit en banc 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 [five(5)] SIX (6) divisions, the first, second and third
divisions shall handle cases coming from the National Capital
Region and the parts of Luzon; and the fourth, [and] fifth, AND
SIXTH divisions, 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 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 herein. 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 {four-f4)] FIVE other members from the public
sector shall be the Presiding Commissioners of the second, third,
fourth, [and] fifth, AND SIXTH 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 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 banc shall be assisted by the
same Executive Clerk and, when acting thru its Divisions, by [said]
THE Executive Clerks for the second, third, fourth, [and] fifth, AND
SIXTH 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."

Sec. 2. Title I, Chapter |, Article 214 of Presidential Decree No. 442, as
amended, is hereby further amended to read as follows:

“Article 214. Headquarters, Branches and Provincial Extension Units. The
Commission and its First, Second and Third divisions shall have their
main offices in Metropolitan Manila, and the Fourth, [and] Fifth, AND
SIXTH divisions in the Cities of Cebu, [and] Cagayan de Oro, AND
DAVAO 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. Funding. — The amounts necessary to carry out the provisions of this
Act shall be included in the General Appropriations Act of the year following its
enactment into law and thereafter.

Sec. 4. Upon the effectivity of this Act, all pending cases, except those which
have been submitted for resolution, shall be referred to the proper division of the
National Labor Relations Commission.

Sec. 5. Nothing in this Act shall be construed to allow the transfer, except in
cases of temporary assignment, of any member of the National Labor Relations
Commission to any place or station without such member's written consent, or to
undermine the security of tenure of its members, or alter the seniority in the
National Labor Relations Commission in accordance with existing laws.

Sec. 6. Separability Clause. If any portion or provision of this Act is declared
unconstitutional, the remainder of this Act or any provision thereof not affected
thereby shall remain in full force and effect.

Sec. 7. Repealing Clause. — All laws, presidential decrees, letters of
instruction, executive orders, rules, or regulations, or any part thereof
inconsistent with the provisions of this Act are hereby repealed or modified
accordingly.


Sec. 8. Effectivity. — This Act shall take effect after fifteen (15) days following
its publication in two (2) newspapers of general circulation.

Approved,