FU'TEENTH CONGRESS OF THE 
REPIJDLIC OF THE PHILIPPINES 
FiI'st Regular Session 
) 
) 
) 
SENATE 
S. No. 385 
,~ 
, 
:~=:=-______ ~n~E~~.!lced by Senat~r Antonio "Sonny" F. Trilla';~; I" -~=--=~i--__ 
EXPLANATORy NOTE 
In recognition of the judiciary's significant role in the country, Republic Act No. 9227 was 
signed in 2003, providing for additional compensation to jnstices, judges and all other positions 
in the judiciary in the form of special allowances. 
Attached to the Department of Labor and Employment for program and policy coordination, the 
National Labor Relations Commission (NLRC) is a quasi-judicial body tasked to expeditiously 
resolve labor disputes thm the process of mediation, conciliation and compulsory arbitration. Just 
like the judiciary, NLRC also plays a vital role in the govemment's program of promoting m1d 
maintaining industrial peace through dispensation of labor justice and development of eilective 
dispute settlement machinCly.1 
Under R.A. 9347, the NLRC Chairman, Commissioners and the Labor Arbiters have been 
entitled to the same allowances, retirement and benefits as those of the Presiding Justice and 
Associate Justices of the Court of Appeals. However, even with the passage of this law, the 
Commission's Chairman and members had not been able to receive the said allowances and 
benefits due.them under the law because oflack of funding. 
This problem is no different from the difficulties some other agencies are experiencing. Yet, with 
the passage of laws establishing Special Funds for particular agencies in the countly, such as the 
Granting of Special Allowances in Public Attorney's Office and Office of the Solicitor General 
under R.A. 9406 and R.A. 9417 respectively, problems brought about by funding are now one by 
one being resolved. 
In this light, a similar law that will address the NLRC's predicmnent through authorizing them to 
administer fund for their additional compensation is positively needed. 
Intending to implement the provision of Republic Act No. 9347 regarding salaries and other 
ClTIoluments of the NLRC's Chairman and members, this measure seeks to establish a National 
Labor Relations Commission Fund to be sourced from the legal and service fees prescribed, 
imposed and collected by the NLRC. 
In view ofthe foregoing, the immediate approval of this bill is earnestly sought. 
~l~ ,,~, 
F. TRILLANES IV 
Senator 
1 Data retTieved at h!tp:j/~wW,!1!rLdQl~,gQY.nh!j:JbrNln~.R!m"on 29 January 2009. 
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F'IJITEENTH CONGRESS OF' THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
) 
) 
) 
SENATE 
S.No. 385 
AN ACT 
I<~STABLISHING 
THE 
NATIONAL 
LABOR 
RELATIONS 
DlWELOPMENT FUND AND FOR OTHER PURPOSES 
COMMISSION 
Be in enacted by the Senate and HOllse of Representatives of the Philippines in Congress 
assembled: 
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SECTION 1. Decl{/r{/tion of Policy. - It is the policy of the State to maintain the 
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independence of the National Labor Relations Commission (NLRC) as a quasHudicial body 
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tasked with the speedy and impattial administration of labor, atld safeguard the integrity of its 
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officers and personnel in the discharge of their functions atld duties. 
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SEC. 2. Nation{/I L{/bor Re/(,tions Commission Development Fund. _. There is hereby 
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established the National Labor Relations Commission Development Fund. hereinafter referred to 
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as the Fund, to provide the Chairman, Commissioners and the Labor Arbiters with incentives 
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commensurate to their positions and functions, atld help ensure and guaratltee their independence 
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and integrity. The fund shall be derived from the legal fees prescribed, imposed and collected by 
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the NLRC as well as the increases in CUlTent fees and new fees which may be imposed. 
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The Fund shall be used to fil1atlce the special allowances, benefits and emoluments 
, 
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gratlled to the NLRC Chairman, Commissioners and Labor Arbiters under Section 4 of Republic 
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Act No. 9347 in relation to Sections 2 and 6 of Republic Act No. 9227, which grants special 
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allowances 10 justices of the Court of appeals atldjudges of the Regional Trial Courts. 
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SEC. 3. Administ,.atioll of Fund. - The NLRC Chail1uan shall administer and allocate 
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the Fund and shall have the exclusive power and duty to approve the disbursement and 
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expenditure of the Fund in accordance with the implementing lUles and regulations to be 
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promulgated under Section 4 of this Act. 
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The amount acclUing to the Fund shall be deposited in a special trust fund by the NLRC 
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Chairman or his duly authorized representative in an authorized government depository bank or 
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private bank owned or controlled by the Government, and the income or interest earned shall 
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likewise form part of the Fund, and submit the appropriate report in writing to the Chainnan of 
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the Commission on Audit and to the chaitman of the NLRC, copy furnished the members of the 
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Commission En Banc. 
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SEC. 
4. issuance of Implementing Guillelines. - The NLRC, together with the 
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Department of Labor and Employment and the Department of Budget and Management shall 
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issue the necessary rules and regulations for the effective implementation of this Act not later 
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than ninety (90) days from approval thereof. 
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SEC. 5. Sepurubility Clallse. - If any provision of this Act shall at any time be found to 
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be unconstitutional or invalid, the remainder thereof not affected by such declaration shall 
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remain in full force and effect. 
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SEC. 6. Repealing Clallse. - All laws, decrees, lUles or regulations inconsistent with the 
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provisions of this Act are hereby repealed Of modified accordingly. 
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SEC, 7. I!.]fectivi(v Clallse. -- This Act shall take effect after fifteen (15) days following 
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its complete publication in two (2) newspapers of general circulation. 
Approved, 
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