Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

Thirteenth Congress
First Regular Session

EXPLANATORY NOTE

This isa refiled Bill previously authored by all the members of the Commitee 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, tively, was
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.

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 eamestly sought.

ROSELLER L, BARINAGA
Representative, 2nd District
‘Zamboanga del Norte


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

Thirteenth Congress
First Regular Session
1612
House Bill No.

Introduced by: Rep. ROSELLER L. BARINAGA

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
bane only for purposes of promulgating rules and regulations goveming
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] di
Mindanao, respectively; Provided, that the Commit

sions, cases from the Visayas and

ion 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.