THIRTEENTH CONGRESS OF THE REPUBLIC ) 
OF THE PHILIPPINES 
1 
First Regular Session 
1 
Senate 
S.B. No. 
Introduced by Senator Francis N. Pangilinan 
EXPLANATORY NOTE 
This is a refilled Bill previously passed by the Senate Committee on Labor 
and Employment covered by Senate Committee Report No. 149 co-authored by 
seventeen (1 7) Senators after consolidating Senate Bills Nos. 41 6, 849, 1975 and 
1880 authored by Senators Franklin M. Drilon, pquilino Pimentel, Jr., Francis N. 
Pangilinan and Ramon B. Revilla, respectively. The said Committee Report No. 
149 was scheduled for plenary sponsorship when Congress adjourned for the 
2004 national elections. 
An identical Bill was likewise passed by the House Committee cri Labor 
and Employment and the Substituted Committee 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 the Congress adjourned a few 
weeks later for the 2004 national election. 
Both versions of the Senate and the 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, the present Bill 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. 
The bill is long overdue and its passage in the present Congress cannot be 
over emphasized. 
Hence, approval of his bill is earnestly sought. 


SENATE 
OFFICE W THE SECRETARY 
THIRTEENTH CONGRESS OF THE REPUBLIC ) 
'04 
NOV -3 All :I2 
OF THE PHILIPPINES 
1 
First Regular Session 
1 
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BY: 
Senate 
Q8 
S.B. No. 
Introduced by Senator Francis N. Pangilinan 
AN ACT 
TO RATIONALIZE THE COMPOSITION AND FUNCTIONS OF THE NATIONAL LABOR 
RELATIONS COMMISSION. AMENDING FOR THE PURPOSE ARTICLES 213, 214, 215, 
AND 216 OF P.D. 442, AS AMENDED, OTHERWISE KNOWN AS THE LABOR CODE OF 
THE PHILIPPINES. 
Be it enacted by the Senate and the House of Representatives of the Philippines 
in Congress assembled: 
SECTION 1. 
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: 
"Article 21 3. National Labor Relations Commission. - There 
shall be a National Labor Relations Commission which shall be 
attached to the Department of Labor and Employment SOLELY for 
the program and policy coordination only, composed of the 
Chairman and TWENTY THREE (23) [fourteen (14)j Members. EIGHT 
(8) [five (5)j 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 
recommended by 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 federation or association to 
which they belong. 
"This Commission may sit en banc or in EIGHT (8) [five (5)] 
divisions, each composed of three (3) members. [Subject to the 
penultimate sentence 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 EIGHT (8) [five (5)] divisions shall handle cases 
coming from the National Capital Region and other parts of Luzor,; 
and the SEVENTH and EIGHT [fourth and fifth] divisions, cases frorn 
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 maybe 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)1 other members from the 
public sector shall be the Presiding Commissioner of the second, 
third, fourth, [and] fifth, SIXTH, SEVENTH AND EIGHT 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 banc. 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 EIGHT 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 
Appeals. 
THE COMMISSION AND ITS EIGHT (8) DIVISIONS SHALL BE 
ASSISTED BY THE COMMISSION ATTORNEYS IN ITS APPELLATE AND 
WITH THE COMMISSIONERS WITH WHOMTHEY ARE ASSIGNED. THE 
COMMISSION ATTORNEYS SHALL BE MEMBERS OF THE PHILIPPINE BAR 
WITH AT LEAST ONE (1) YEAR EXPERIENCE OR EXPOSURE IN THE FIELD 
SALARIES AND SHALL BE ENTITLED TO THE SAME ALLOWANCES AND 
BENEFITS AS THOSE FALLING UNDER SALARY GRADE TWENTY SIX (SG 
26). THERE SHALL 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. 
ADJUDICATORY FUNCTIONS WHOSE TERM SHALL BE CO-TERMINUS 
OF LABOR-MANAGEMENT RELATIONS. THEY SHALL RECEIVE ANNUAL 


SEC. 2. 
Article 214 of the Labor Code is hereby amended to read as 
follows: 
ARTICLE 21 4. Headquarters, 
Branches 
and 
Provincial 
Extension Units. The Commission and its first, Second, [and] Third, 
FOURTH, FIFTH, AND SIXTH divisions in the Cities of Cebu and 
Cagayan de Oro, respectively. The Commission shall establish as 
many regional branches as there are 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 
Commisssion. 
[Each regional branch shall be headed by an 
Executive Labor Arbiter.] 
SEC. 3. 
Article 21 5 of the Labor code is hereby amended to read as 
follows: 
"ARTICLE 21 7. 
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 
hold office. TheIExecutive 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 SPECIFIC DIVISION shall come 
ONLY from the nominees of the sector which nominated the 
predecessor. The [Executive 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 WHERETHEY 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 21 6, as amended, is hereby further amended to read 
as follows: 
"ARTICLE 21 6. 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 RANK, 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 benefils 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. 
SEC. 5. 
Separability Clause. - If any part, section, or provision of this 
Act shall be held invalid or unconstitutional, the other provisions shall be affected 
thereby. 
SEC. 6. 
Repealing Clause. - 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. 
Effecfivity. - This Act shall take effect fifteen (151 days after 
its publication in the Official Gazette or in at least two (2) national newspapers of 
general circulation, whichever comes earlier. 
Approved