13* CONGRESS OF THE REPUBLIC ) 
OF THE PHILIPPINES 
1 
*& 
,j!ji., 28 P 5 :d 1 
First Regular Session 
) 
6 
" 
S E N A T E  
I!LCEIVED t3v:""-.-..-~- 
i 
S.No. 
Introduced by Seiiator Aquilino Q. Pimentel, Jr. 
~~ 
EXPLANATORY NOTE 
"Labor justice is a labor of love." 
This self-evident truth has permeated in the desks and offices of our poor labor 
arbiters and the National Labor Relations Commission. 
Labor arbiters are the frontline magistrates in the administration of labor justice. 
But the important role that they play has been minisculed by the letter neglect of 
their welfare. 
They are underpaid. Their retirement benefits pale in comparison with other 
government officials. Yet, they are saddled with duties beyond their physical 
limitations. In 1995 alone, some 7,000 unresolved cases pending before the POEA 
were transferred to the labor arbiters for resolution. This stemmed from the 
passage of RA No. 8042 or the Migrant Workers and Overseas Filipinos Act which 
entrusted to the Iabor arbiters the speedy resolution of money claims of overseas 
Filipino workers. 
It is high time that our frontline arbiters be given their due. 
This bill intends to remedy the inequity suffered by the arbiters of labor justice 
and the commissioners of the NLRC. It will grant them due recognition to the vital 
role that they play not only in administering labor justice, but in the maintenance 
of industrial peace among employers and the work force. 
It is for this reason that this bill, which seeks to upgrade the salaries, allowances 
and retirement benefits of labor arbiters and the commissioners of the National 
Labor Relations Commission, is being filed. 
The passage of this bill is earnestly requested. 


’Or; <?Ji 
26 P5 41 
THIRTEENTH CONGRESS OF THE REPUBLIC ) 
4. 
OF THE PHILIPPINES 
1 
First Regular Session 
1 
I\EGEI\/ED BY : - 
- 
S E N A T E  
1 
S. B. No. 
Introduced by: 
Senator Aquilino Q. Pimentel, Jr. 
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 laown 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 (591 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 (31 
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 
Coqmission shall exercise its adjudicatory and all other powers, functions 
and /duties through its divisions. Of the EIGHT (8) [five (5)] divisions, 
the irst, 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 
1 
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. 
I 
“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. 
I 
“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 T E W  


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: 
I 
“ARTICLE 
2 14. 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 Qualzjkations. - 
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 (1 5) 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 
and1 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)J 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. Sdlaries, 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 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 lmown 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.