PRELIMINARY CONSIDERATIONS ON PROCEDURE AND

JURISDICITON
THE FOLLOWING SHALL BE CONSIDERED
LABOR TRIBUNAL:

IN DETERMINING JURISDICTION OF THE

FIRST: THE EXISTENCE OF THE EMPLOYER-EMPLOYEE

RELATIONSHIP
Existence of employer-employee relationship between the
parties, or a reasonable causal connection to such
relationship is a jurisdictional pre-requisite for the exercise
of jurisdiction
WHO THEN HAS THE POWER TO DETERMINE THE EXISTENCE
OF THE EMPLOYER-EMPLOYEE RELATIONSHIP?
1. Labor arbiter
2. NLRC
3. DOLE Secretary and DOLE Regional Directors1
4. Med Arbiter- because it is necessary and indispensable in
the exercise of its jurisdiction
5. The Social Security Commission2

not limited to claims arising from such relationship. Under

Sec. 10 of RA 8042, the LA may exercise jurisdiction over the
claims of OFWs arising out of an employer-employee
relationship, or by virtue of any law or contract
involving Filipino workers for overseas deployment
Medline Management vs Roslinda: heirs of the deceased
OFW has the personality to file and claim for the death
compensation, reimbursement of medical expenses,
damages and attorneys fees before the LA.

Other considerations:

LABOR DISPUTES ARE NOT SUBJECT TO BARANGAY

CONCILIATION
o As held in the case of Montoya vs Escayo as it would
only complicate and duplicate the proceedings

SECOND: THE REASONABLE CAUSAL CONNECTION RULE

In order to determine whether the case should be heard by the
regular courts or by the labor tribunal,
There should be a reasonable causal connection between
the claim asserted and the employer-employee relations
Absent such nexus, it is the regular courts that have
jurisdiction
EXCEPTION TO THE RULE:
As held in the case of Santiago vs CF Sharp Cew
Management Inc., In cases filed by the OFW absent the
employment relationship (as it had not yet commenced
because of the acts of the agent in preventing him to leave
the Philippines), the Labor Arbiter still has jurisdiction and

1 Peoples Broadcasting Service vs Seceetary of Labor. It was held in that case that the
determination by the DOLE Regional deirector and secrtary of the existence of the relationship,
in the exercise of their visitorial and enforcement power, is to the exclusion of the Labor Arbiter
and the NLRC

2 Republic of the Philippines vs Asiapro: involving the issue of coverage of the owners-members
of respondent Cooperative under the SSS

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pay, hours of work and other terms

and conditions of employment;
5. Claims for actual, moral, exemplary
and other forms of damages arising
from the employer-employee
relations;
6. Cases arising from any violation of
Article 264 of this Code, including
questions involving the legality of
strikes and lockouts; and

A. THE LABOR ARBITER

The an official in the Arbitration Branch of the NLRC

Powers of the Labor Arbiter:

1. To hear and decide cases over which they have jurisdiction
2. Contempt power
3. Power to conduct ocular inspection
Note that the labor arbiter no longer has injunctive powers as
removed by the rules. only the NLRC has such power.
JURISDICTION OF THE LABOR ARBITER
Exclusive Original Jurisdiction of the LA
(1) ART. 217:
1. Unfair labor practice cases;
2. Termination disputes;
3. If accompanied with a claim for
reinstatement, those cases that
workers
4. may file involving wages, rates of
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Exceptions to the
EOJ of the LA
(1) when the DOLE
Secretary
assumes
jurisdiction for
national interest
cases

But not: claims for Employees

Compensation, Social Security, Medicare
and maternity benefits, all other claims
arising from employer-employee relations,
including those of persons in domestic or
household service, involving an amount
exceeding five thousand pesos (P5,000.00)
regardless of whether accompanied with a
claim for reinstatement.
(2) Art. 124: involving legislated wage
increases and wage distortion in
unorganized establishments not
voluntary settled
if organized, when
if unorganized,
there is already a CBA when there are no
or Bargaining Union,
unions or CBA,
Voluntary Arbitrator
NCMB first. And if
and the grievance
it fails LA
machinery has
primary jurisdiction.-
then if that failed, the
LA
(3) Art. 128 (b) Notwithstanding the
provisions of Articles 129 and 217 of this
Code to the contrary, and in cases where
the relationship of employer-employee still
exists, the Secretary of Labor and
Employment or his duly authorized
representatives shall have the power to
issue compliance orders to give effect to the

(2) when the NLRC

exercises
compulsory
arbitration over
national interest
cases certified by
the DOLE
Secretary
(3) regarding the
interpretation and
the
implementation of
the CBA which
shall be referred
to the grievance
machinery and
voluntary
arbitration
(4) when the parties
agree to submit
their case to
Voluntary
Arbitrators

labor standards provisions of this Code and

other labor legislation based on the findings
of labor employment and enforcement
officers or industrial safety engineers made
in the course of inspection. The Secretary or
his duly authorized representatives shall
issue writs of execution to the appropriate
authority for the enforcement of their
orders, except in cases where the
employer contests the findings of the
labor employment and enforcement
officer and raises issues supported by
documentary proofs which were not
considered in the course of inspection.
(4) Art. 228. Enforcement of
Compromise Agreements. Any
compromise settlement, including those
involving labor standard laws, voluntarily
agreed upon by the parties with the
assistance of the Bureau or the regional
office of the Department of Labor, shall be
final and binding upon the parties. The
National Labor Relations Commission or any
court, shall not assume jurisdiction over
issues involved therein except in case of
non-compliance thereof or if there is prima
facie evidence that the settlement was
obtained through fraud, misrepresentation,
or coercion.
(5) Art. 262- A to issue writs of
execution to enforce decision of the
Voluntary Arbitrators or panel Upon
motion of any interested party, the
Voluntary Arbitrator or panel of Voluntary
Arbitrators or the Labor Arbiter in the region
where the movant resides, in case of the
absence or incapacity of the Voluntary
Arbitrator or panel of Voluntary Arbitrators,
for any reason, may issue a writ of
execution requiring either the sheriff of the
Commission or regular courts or any public

official whom the parties may designate in

the submission agreement to execute the
final decision, order or award.
(6) Sec. 10 of RA 8042. Money claims
arising out of employer-employee relations
or by virtue of any law or contract, involving
Filipino workers for overseas deployment,
including claims of death and disability
benefits and for actual, moral, exemplary,
and other forms of damages

Philippine
Overseas
Employment
Administration
(1) Recruitment
violations or
violations of license
of recruitment or
employment
agencies
(2) Disciplinary action
against foreign
principals or
employers or landbased OFWs and
seafarers

Although the
Compromise
Agreement was
entered into before
the Bureau of Labor
Relations, NCMB or
the Regional
Director, LA has
jurisdiction

Generally, it would
be the VA to issue
the writ of execution.
However, when not
present or
incapacitated, LA
may issue such

VA: However, if
there is an existing
CBA between foreign
employer and the
bargaining union of
the OFWs, it would
be the Voluntary
Arbitrator who will
have jurisdiction3

(7) over Unfair Labor Practices as to

the Civil aspect4:
ULP by employers
ULP by labor organizations
Only GROSS Violations of the
CBA
Union- Busting
(8) illegal dismissal cases
however, the following may also
exercise such power:
(1) Voluntary Arbitratorsif under

3 Ace Navigation Co. vs Fernandez (disability claim); and Estate of Dulay vs Aboitiz (claim of
death benefits)

4 as to the criminal aspect, only the regular courts has jurisdiction

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the CBA and by the agreement only

by the parties; note however that in
case of conflict between the
jurisdiction, it is the Labor arbiter
that shall prevail
(2) DOLE Secretary in exercise of his
assumption powers for cases of
national interest
(3) NLRC in national interest cases
certified to it for compulsory
arbitration by the DOLE Sec.
(9) Over Money Claims:
(1) any
(2) any money claim,
money
regardless of whether
claims,
accompanied with prayer for
regardless of reinstatement, exceeding
amount, with the amount of P5,000.00
prayer for
> must exceed the amount
reinstateme
P5000.00 and/or with
nt
reinstatement
>presuppo
>Regional Dir- less than 5k
ses that
without REINSTATEMENT
there was
terminatio
n
(10) LA has jurisdiction to award
claims for damages, attorneys fees to
the exclusion of other courts as held by
the case of Primero vs Intermediate
Appellate Court applicable also to OFWs
(11) Illegality or legality of strikes and
lockouts
In general, the employer or the
union, may file the proper petition
with the LA to seek a declaration of
the illegality thereof
Crimes falling under such cannot be
prosecuted by the LA

Third: Injunctive
reliefs may only be
issued by the NLRC if
the strike/lockout
involves illegal acts
Fourth: if national
interest caseSec.
of Labor or
certification by the
same for arbitration
by the NLRC, or the
president
Sixth: Voluntary
Arbitrators

Labor Arbiters and Voluntary Arbitrators

Labor Arbiters
Voluntary Arbitrators
Limited to those arising from
Interpretation and the
statutes or contracts other
implementation of the provisions
than the CBA
of the CBA

CrossJurisdictional
Nature
First: Filing of notice
of strike or Lockout is
with National
Conciliation and
Mediation Board
Second: Filing of
complaint of
illegality with the LA

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Labor Arbiters and Regional Directors

Labor Arbiters
(1) Money Claims
> amount
exceeding P5,000
>primary cause
of action is
illegal
dismissal- any
amount with
claim of
reinstatement

(2) visitorial and

enforcement
powers 128 (b)
note that this has

It is only when the

compliance order
or findings issued
by the Secretary

Regional Directors
Only with the following
requisites for money
claims only:
(1) claim must arise
from employeremployee
relationship
(2) does not seek
reinstatement
(3) aggregate
amount does
not exceed
5,000
Requisites; as the
duly authorized
representatives of
the DOLE Secretary
4

got nothing to
with the
aggregate amount

or the duly
authorized
representative or
labor inspectors
Are contested by
the employer and
raises issues
supported by
documentary
proofs which were
not considered in
the course of
inspection
Three elements
[Ex-Bataan
Veterans Security
Agency vs
Secretary of
Labor]:
(1) employer
contests the
findings of
labor
regulations
officer and
raises issues
thereon
(2) there is a need
to examine
evidentiary
matters
(3) not verifiable
by a normal
course of
inspection

(1) employeremployee
relationship
(2) made in the
course of
inspection by
the labor
inspectors
(3) employee have
not yet initiated
any claim or
complaint with
the DOLE
Regional
Director under
129 of the LC
note that the findings
of the Regional director
the Secretary made in
such power constitute
res judicata on NLRC
and the LA

Alien Parties
Generally, parties
have the right to
choose the law
applicable to their

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contract.

If with original
charters created
by law: basically
governed by the
Civil Service Law,
Rules and
Regulations

Exception:
By reason of
public interest
and Place of Most
significant
relationship5 with
the Philippines,
PH law may apply.
Employees of
Cooperatives

Domestic Workers/
Kasambahay
If the claim exceeds
P5,000.00LA
If the claim is less
than 5,000.00the
Regional Director

Monetary claims
(e.g., salaries,
wages, OT pay) and
illegal dismissal
issues only. But not
termination or
claims of
membership of
members thereof

minister is the
employee, is purely
a secular matter6 not
involving an
ecclesiastical affair7

Counter- Claims of
Employers vs
Employees
Jurisdiction of LA is
comprehensive
enough to include
claims of all forms
arising from the E-E
relationship,
including claims of
employer, which
must be asserted
before it. Otherwise,
it will not be passed
upon by the
reviewing court

Issues and Cases over which the LAs have no jurisdiction

(1) Claims for damages arising from breach of noncompete clause and other post-employment
prohibitions
In such cases, it would be the regular courts who would
have jurisdiction

What are the other issues or cases which the Labor Arbiters
have jurisdiction over as provided for in Jurisprudence?
Employees in
GOCCs
If without original
charters or those
established under
the SEC: the Labor

Code applies

Priests and
Ministers
When the issue is
a labor case and
the church is the
employer and the

5 Pakistan International Airlines vs Ople: the SC ruled that although the contract stated

that Pakistani law should apply and Pakistan Courts should have jurisdiction, the relationship is
affected with public interest, and there are multiple and substantive contacts with the
Philippines: (1) employees are Filipino residents; (2) the Airlines is a foreign resident here in PH
allowed to do business here; (3) contract is partially performed here.

6 Austria vs Hon. NLRC and Cebu Central Philippines Union Mission: When the minister
was not excommunicated or expelled from membership but was terminated from employment
based on the just causes provided in the Labor Code, it is secular and LA has jurisdiction

7 one that concerns doctrine, creed or form of worship of the chuc, or the adoption and

enforcement within a religious association of needful laws for the government of its members

(2) Claims for payment of cash advances, car, appliance,

and other personal loans
Generally, when the principal relief sought is to be
resolved by reference to general civil law and not by the
Labor Code, the regular courts have jurisdiction
a) Cash loans/advances- nature of simple collection
of a sum of money [Georg Grotjahn vs Hon.
Isnani]
b) Car loans- employers demanding amortization
from employees or the return of the cars to the
company is a normal debtor-creditor relationship
[Nestle Philippines vs NLRC)
c) Appliance loan- merely involves the enforcement
of a loan agreement [HSBC Staff Retirement Plan
vs Spouses Broqueza]
d) Loans from retirement fund [HSBC Staff
Retirement Plan vs Sps Broqueza]
(3) Dismissal of corporate officers and their monetary
claims
Nature of the controversy Test: (1) status of the party;
(3) nature of the question
it is an intra-corporate controversy and cognizable by
the regular courts
the Matling Doctrine
o regular employees- LA
o corporate officersRegular Courts
who are exclusively the following:
president, secretary, and treasurer,
and those provided in the by laws
Note that the BoD can no longer create
new corporate offices, more than who is
included in the by laws to prevent the
circumvention of the laws
o Note however that the status of an employee as
director and stockholder does not automatically
convert the action into an intra-corporate
controversy
Basis in determining whether employment
issue or intra-corporate controversy:
manner of the creation of the office
and not the services actually
performed
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Hence in the Matling case, the issue

was employment because he was initially
hired into the company as a bookkeeper
and only eventually acquired shares. His
appointment as director and officer was
due to his promotion in employment and
not by mere fact that he is a shareholder

(4) Issues involving the suspension of payment of debts

receivership and rehabilitation
Jurisdiction with the regular courts
Effect of suspension of payment of debts, or
liquidation on the jurisdiction of the LA:
(1) Jurisdiction of the LA will not be lost simply
because the assets of the employer are under
receivership or liquidation
(2) Merely suspends the exercise of the jurisdiction
because is it considered as a claim against the
corporation under rehabilitation
(3) it embraces all the phases of the suit. However,
when the process of rehabilitation is completed,
the Court should proceed to complete the
proceedings on suspended actions
a. even the execution of a decision are
included in those suspended during
rehabilitation, otherwise the execution will
be null and void
(4) it has not time limit. Suspension shall last up until
the termination of the receivership
(5) remedy to the labor claims is with the
Rehabilitation Receiver
(5) Cases involving entities immune from suit
Under generally accepted principles of international law,
immunity of a State and international organizations from
suit recognized
The LA and the NLRC has not jurisdiction over such cases
o Examples:
Asian Development Bank
United Nations and its instrumentalities
Joint Unites States Military Assistance Group
Exception to the Rule: when the immune entity is
exercising in its proprietary powers
6

US vs Hon. Rodrigo: function of the entity

otherwise immune from suit partakes of a nature of a
proprietary activity, such as restaurant services
offered at John Hay Air Station undertaken by the US
Government as a commercial activity for profit and
not in its government capacity, the case for illegal
dismissal filed by a Filipino cook working therein is
well within the jurisdiction of the LA
Estoppel does not lie to immune entities
o

(6) Cases falling under forum non conveniens

When Philippine Courts or LA chooses not to exercise
jurisdiction
Since it is the inconvenient forum
Considerations:
a. The Philippine Court is not one to which the parties
may conveniently resort
b. That the Philippine court is not in a position to make
an intelligent decision as to the law and as to the
facts
c. The Philippine court has no or has not likely to have
the power to enforce the decision
(7) Quasi-delict or tort cases
if the damages does not arise from the employer-employee
relationship, it would be the regular courts and not the LA or
NLRC
o Tolosa vs NLRC: damages against co-employees of
the deceased employee due to the formers
negligence is not within the jurisdiction of the LA or
the NLRC as there is no employer-employee
relationship

(8) Criminal and civil liabilities arising form violations of

certain provisions of the LC
Article 241. Rights and Conditions of membership. Criminal
and civil liabilities arising from violations of above rights and
conditions of membership shall continue to be under the
jurisdiction of ordinary courts.
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Art. 247. Criminal Aspects of ULP. No criminal prosecution

under this Title may be instituted without a final judgment finding
that an unfair labor practice was committed, having been first
obtained in the preceding paragraph. During the pendency of such
administrative proceeding, the running of the period of prescription
of the criminal offense herein penalized shall be considered
interrupted: Provided, however, that the final judgment in the
administrative proceedings shall not be binding in the criminal case
nor be considered as evidence of guilt but merely as proof of
compliance of the requirements therein set forth. (As amended by
Batas Pambansa Bilang 70, May 1, 1980 and later further amended
by Section 19, Republic Act No. 6715, March 21, 1989)
Art. 272. Penalties.
a. Any person violating any of the provisions of Article
264 of this Code shall be punished by a fine of not
less than one thousand pesos (P1,000.00) nor more
than ten thousand pesos (P10,000.00) and/or
imprisonment for not less than three months nor
more than three (3) years, or both such fine and
imprisonment, at the discretion of the court.
Prosecution under this provision shall preclude
prosecution for the same act under the Revised Penal
Code, and vice versa.
Art. 288. Penalties. Except as otherwise provided in this Code, or
unless the acts complained of hinge on a question of interpretation
or implementation of ambiguous provisions of an existing collective
bargaining agreement, any violation of the provisions of this Code
declared to be unlawful or penal in nature shall be punished with a
fine of not less than One Thousand Pesos (P1,000.00) nor more
than Ten Thousand Pesos (P10,000.00) or imprisonment of not less
than three months nor more than three years, or both such fine and
imprisonment at the discretion of the court.
In addition to such penalty, any alien found guilty shall be
summarily deported upon completion of service of sentence.
Any provision of law to the contrary notwithstanding, any criminal
offense punished in this Code, shall be under the concurrent
jurisdiction of the Municipal or City Courts and the Courts of First
Instance. (As amended by Section 3, Batas Pambansa Bilang 70)
7

(9) Constitutionality of CBA provisions

Halaguea Doctrine: it is the regular courts, not the LA
which has jurisdiction over such
(1) ordinary civil actiondeclaratory relief
(2) resolution of the issue not solely based on the Labor Code
but by the application of the Constitution and the
Convention on the Elimination of all Forms of Discrimination
Against Women (CEDAW)
(3) the employer-employee relationship is only incidental. The
obligations invoved in this case is that which provided by
the Constitution and the CEDAW

REINSTATEMENT PENDING APPEAL

Pioneer Texturizing Doctrine: an order of reinstatement issued
by the LA under Art. 233 of the LC is self executory or
immediately executory even pending appeal
When Automatic and
immediately executory
When order of reinstatement is
issued by the Labor arbiter only

When appeal stays execution

of reinstatement and writ
necessary
Writ of execution is necessary
when the reinstatement is
ordered by the NLRC in appeal,
or subsequently by the CA, or
the SC as the case may be

Options of the employer in reinstatement order:

(1) actual reinstatement- reinstatement of the employee to
his position which he occupies prior to his illegal dismissal
under the same terms and conditions prevailing prior to his
dismissal, or substantially equivalent

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(2) payroll reinstatement- employee reinstated without

requiring the employee to report back to work
Order of Reinstatement must containwrit of execution
must be issued motu proprio
(1) statement that order of reinstatement is immediately
executory
(2) report of compliance within 10 days by the employer from
receipt of the decision
What will happen if the employer refuses to comply with
the reinstatement order?
(1) liable for accrued salaries
(2) contempt after the sheriff has served the writ- to be filed by
the employee to the LA and not to institute another action
before the regular courts
When is the writ necessary?
(1) when the employer does not submit the report after 10 days
(2) employer refuses to reinstate the dismissed employee
Is the employer allowed to stay execution? NO. no such
remedy exists even pending appeal
When does this rule apply?
applies to all kinds of illegal dismissal, regardless of the
grounds
but if termination is legal and the reinstatement was merely
ordered for interest of justicesuch rule does not apply
when the previous position no longer existsemployee must
be reinstated in substantially equivalent position
o reinstatement to position lower in rank is not allowed
employment of employee somewhere shall not affect the
order of reinstatement
the CA or SC may issue TRO to suspend (suspend only) the
reinstatement pending appeal of the employee