Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

Thirteenth Congress

First Regular Session

House Bill No.__ 869

Introduced by: Representative Faysah RPM Dumarpa

EXPLANATORY NOTE,

This is a refiled Bill previously authored by all the members of the Committee on
Labor and Employment which has already gone through the legislative process during the
Twelfth Congress of the Philippines. The Committee on Labor and Employment passed a
“Substitute Bill” co-authored by fifty-three (53) Representatives consolidating House
Bills Nos. 1804, 1928, 2035, 2383, 2474 and 2529 and the same was referred to the
Committee on Appropriations for funding purposes. The Department of Budget and
‘Management (DBM), in a letter dated January 9, 2004 addressed to the Hon. Rolando G.
Andaya, Jr., Chairman of the 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 one (1) Division only. Unfortunately, the said funding
certification from the DBM came rather late since Congress adjourned a few weeks later
for the 2004 national elections.

An identical Bill was likewise passed by the Senate Committee on Labor and
Employment covered by Senate Committee Report No. 149 co-authored by seventeen
(17) Senators. Said Committee Report No. 149, consolidating Senate Bill Nos. 416,
849, 1975 and 1880 authored by Senators Franklin M. Drilon, Aquilino Q. Pimentel, Jr.,
Francis M. Pangilinan and Ramon B. Revilla, respectively, was already scheduled for
plenary sponsorship when Congress adjourned for the 2004 national elections.

Significantly, the Senate-House Congressional Oversight Committee on Labor
and Employment (COCLE) adopted and endorsed both the Senate and the House
versions in its Report proposing omnibus amendments 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 Bill.

This Bill is long overdue, hence, its passage in the present Congress cannot be
overemphasized.

Approval of this bill, therefore, is earnestly sought.

Sind an
Rep. A Sart RPM DUMARPA


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

Thirteenth Congress
First Regular Session

House Bill No.__ 869

Introduced by: Rep. Faysah RPM Dumarpa

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 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 213. 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 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 federation or association to which they belong.

“The 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, t] ©The Commisison 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, the
first, second, [and] third, FOURTH, FIFTH AND SIXTH divisions shall
handle cases coming from the National 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 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 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, 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 banc, shall be assisted by the same
Executive Clerk and, when acting thru 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:

“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. |, suhject 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 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 |.] 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 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.


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. - 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. Effectivity. - This Act shall take effect fifteen (15)
days after its publication in the Official Gazette or in at least two (2) national

newpapers of general circulation, whichever comes earlier.

Approved.