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THE NEW RULES OF PROCEDURE OF THE NATIONAL LABOR RELATIONS COMMISSION

Pursuant to the provisions of Article 218 of Presidential Decree No. 442, as amended, otherwise known as the Labor Code of the Philippines, the following rules of procedure governing arbitration proceedings before the Labor Arbiters and the National Labor Relations Commission are hereby adopted and promulgated:

SECTION 1. Title of the Rules. — These Rules shall be known as the New Rules of Procedure of the National Labor Relations Commission.

SECTION 2. Construction. — These Rules shall be liberally construed to carry out the objectives of the Constitution and the Labor Code of the Philippines and to assist the parties in obtaining just, expeditious and inexpensive settlement of labor disputes.

SECTION 3. Suppletory application of Rules of Court and jurisprudence. — In the absence of any applicable provision in these Rules, and in order to effectuate the objectives of the Labor Code, the pertinent provisions of the Revised Rules of Court of the Philippines and prevailing jurisprudence may, in the interest of expeditious labor justice and whenever practicable and convenient, be applied by analogy or in a suppletory character and effect.

SECTION 1. Definitions. — The terms and phrases defined in Article 212 of the Labor Code, as amended, shall be given the same meanings when used herein.

As used herein, "Regional Arbitration Branch" shall mean any of the regional arbitration branches, sub-regional branches or provincial extension units of the Commission.

SECTION 1. Caption and Title. — (a) In all cases filed in the Commission or in any of its Regional Arbitration Branches, the party initiating the action shall be called the "Complainant" or "Petitioner", and the opposing party the "Respondent".

(b) The full names of all the real parties in interest, whether natural or juridical persons or entities authorized by law, shall be stated in the caption of the complaint or petition as well as in the decisions, awards or judgments.

(c) A party having more than one cause of action against the other party, arising out of the same relationship, shall join all of them in one complaint or petition.

SECTION 2. Issuance of Summons.— Immediately after receipt of a case assigned to him, the Labor Arbiter concerned shall issue the required notification and summons, attaching thereto a copy of the complaint/petition.

SECTION 3. Filing and Service of Pleadings. — All pleadings in connection with the case shall be filed with the appropriate docketing unit of the Regional Arbitration Branch; or the Commission as the case may be.

The party filing the pleadings shall serve the opposing party or parties with a copy thereof in the manner provided for in these Rules with proof of service thereof. chan robles virtual law library red

SECTION 4. Service of Notices and Resolutions. — (a) Notices or summons and copies of orders, resolutions or decisions shall be served on the parties to the case personally by the bailiff or duly authorized public officer within three (3) days from receipt thereof or by registered mail: Provided,  That where a party is represented by counsel or authorized representative, service shall be made on such counsel or authorized representative; provided further that in cases of decision and final awards, copies thereof shall be served on both the parties and their counsel; provided finally, that in case where parties are so numerous, service shall be made on counsel and upon such number of complainants as may be practicable, which shall be considered substantial compliance with Article 224 (a) of the Labor Code, as amended.

For the purposes of computing the period of appeal, the same shall be counted from receipt of such decisions, awards or orders by the counsel of record.

(b) The bailiff or officer personally serving the notice, order, resolution or decision shall submit his return within two (2) days from date of service thereof, stating legibly in his return, his name, the names of the persons served and the date of receipt, which return shall be immediately attached and shall form part of the records of the case. If no service was effected, the serving officer shall state the reason therefor in the return.

SECTION 5. Proof and completeness of service. — The return is prima facie proof of the facts indicated therein. Service by registered mail is complete upon receipt by the addressee or his agent; but if the addressee fails to claim his mail from the post office within five (5) days from the date of first notice of the postmaster, service shall take effect after such time.

SECTION 6. Appearances. — Attorney appearing for a party is presumed to be properly authorized for that purpose.

A non-lawyer may appear before the Commission or any Labor Arbiter only if:

(a) he represents himself as party to the case;

(b) he represents an organization or its members, provided that he shall be made to present written proof that he is properly authorized or;

(c) he is a duly-accredited member of any legal aid office duly recognized by the Department of Justice or the Integrated Bar of the Philippines in cases referred thereto by the latter.

Any change in the address of counsel/representative should be filed with the records of the case and furnished the adverse party or counsel.

Any change or withdrawal of counsel/representative shall be made in accordance with the Rules of Court.

SECTION 7. Authority to bind party. — Attorneys and other representatives of parties shall have authority to bind their clients in all matters of procedure; but they cannot, without a special power of attorney or express consent, enter into a compromise agreement with the opposing party in full or partial discharge of a client's claim.

SECTION 1. Venue. — (a) All cases which Labor Arbiters have authority to hear and decide may be filed in the Regional Arbitration Branch having jurisdiction over the workplace of the complaint/petitioner.

For purposes of venue, workplace shall be understood as the place or locality where the employee is regularly assigned when the cause of action arose. It shall include the place where the employee is supposed to report back after a temporary detail, assignment or travel. In the case of field employees, as well as ambulant or itinerant workers, their workplace is where they are regularly assigned, or where they are supposed to regularly receive their salaries/wages or work instructions from, and report the results of their assignment to, their employers.

(b) Where two or more Regional Arbitration Branches have jurisdiction over the workplace of the complainant or petitioner, the Branch that shall first acquire jurisdiction over the case shall exclude the others.

(c) When improper venue is not objected to before or at the time of the filing of position papers, such question shall be deemed waived.

(d) The venue of an action may be changed or transferred to a different Regional Arbitration Branch other than where the complaint was filed by written agreement of the parties or when the Commission or Labor Arbiter before whom the case is pending so orders, upon motion by the proper party in meritorious cases.

SECTION 2. Raffle and Assignment of Cases. — (a) All complaints and petitions received by the docket section of the Regional Arbitration Branch, shall be referred within twenty four (24) hours from receipt thereof to the Executive Labor Arbiter for raffle and assignment.

(b) Within forty-eight (48) hours from receipt of the cases referred to him by the docket officer, the Executive Labor Arbiter shall assign the same to the different Labor Arbiters by means of raffle. In exceptional cases, however, as when there is an impending or actual strike or lockout, or when a labor dispute is reportedly attended by violence, or is causing or likely to cause public disorder or inconvenience, or in places where holding a raffle is not practicable, the Executive Labor Arbiter may assume jurisdiction over such cases or assign the same to Labor Arbiters who, in his opinion, can effect immediate settlement or adjudication of the cases. chan robles virtual law library red

(c) All pleadings subsequent to the filing of the complaint shall be forwarded twenty four (24) hours from receipt thereof to the Labor Arbiter to whom the case is assigned.

SECTION 3. Consolidation of Cases.— Where there are two or more cases pending before different Labor Arbiters in the same Regional Arbitration Branch involving the same employer and issues, or the same parties with different issues, whenever practicable, the subsequent case/s shall be consolidated with the first to avoid unnecessary costs or delay. Such consolidated cases shall be disposed of the by the Labor Arbiter to whom the first case was assigned.

In case of objection to the consolidation, the same shall be resolved by the Executive Labor Arbiter.

SECTION 4. Disposition of Cases. — Subject to the provisions of Art 263 (g) of the Labor Code, as amended, when a cases is assigned to a Labor Arbiter, the entire case and any or all incidents thereto shall be considered assigned to him; and the same shall be disposed of in the same proceeding to avoid multiplicity of suits or proceedings.

When the Secretary of Labor and Employment has assumed jurisdiction over a strike or lockout dispute or certified the same to the Commission, the parties to such dispute shall immediately inform the Secretary or the Commission as the case may be, of all cases directly related to the disputes between them pending before any Regional Arbitration Branch, and the Labor Arbiter handling the same of such assumption or certification. Whereupon all proceedings before the Labor Arbiter concerning such cases shall be suspended and the Labor Arbiter shall await further instructions.

SECTION 1. Jurisdiction of Labor Arbiter. — The Labor Arbiters shall have original and exclusive jurisdiction to hear and decide all cases involving all workers, whether agricultural or non-agricultural as may be provided for by law.

SECTION 2. Mandatory Conference/Conciliation. — Within two (2) days from receipt of an assigned case, the Labor Arbiter shall summon the parties to a conference for the purpose of amicably settling the case upon a fair compromise or determining the real parties in interest, defining and simplifying the issues in the case, entering into admissions and/or stipulations of facts, and threshing out all other preliminary matters. The notice or summons shall specify the date, time and place of the preliminary conference/pre-trial and shall be accompanied by a copy of the complaint.

Should the parties arrive at any agreement as to the whole or any part of the dispute, the same shall be reduced to writing and signed by the parties and their respective counsels, if any, before the Labor Arbiter. The settlement shall be approved by the Labor Arbiter after being satisfied that it was voluntarily entered into by the parties and after having explained to them the terms and consequences thereof.

A compromise agreement entered into by the parties not in the presence of the Labor Arbiter before whom the case is pending shall be approved by him if, after confronting the parties, particularly the complainants, he is satisfied that they understand the terms and conditions of the settlement and that it was entered into freely and voluntarily by them and the agreement is not contrary to law, morals, and public policies.

A compromise agreement duly entered into in accordance with this Section shall be final and binding upon the parties and the Order approving it shall have the effect of a judgment rendered by the Labor Arbiter in the final disposition of the case.

The number of conferences shall not exceed three (3) settings and shall be terminated within thirty (30) calendar days from the date of the first conference.

SECTION 3. Submission of Position Papers/Memorandum. — Should the parties fail to agree upon an amicable settlement, either in whole or in part, during the conferences, the Labor Arbiter shall issue an order stating therein the matters taken up and agreed upon during the conferences and directing the parties to simultaneously file their respective verified position papers.

These verified position papers shall cover only those claims and causes of action raised in the complaint excluding those that may have been amicably settled, and shall be accompanied by all supporting documents including the affidavits of their respective witnesses which shall take the place of the latter's direct testimony. The parties shall thereafter not be allowed to allege facts, or present evidence to prove facts, not referred to and any cause or causes of action not included in the complaint or position papers, affidavits and other documents. Unless otherwise requested in writing by both parties, the Labor Arbiter shall direct both parties to submit simultaneously their position papers/memorandum with the supporting documents and affidavits within fifteen (15) calendar days from the date of the last conference, with proof of having furnished each other with copies thereof.

SECTION 4. Determination of Necessity of Hearing. — Immediately after the submission by the parties of their position papers/memorandum, the Labor Arbiter shall motu proprio determine whether there is need for a formal trial or hearing. At this stage, he may, at his discretion and for the purpose of making such determination, ask clarificatory questions to further elicit facts or information, including but not limited to the subpoena of relevant documentary evidence, if any from any party or witness.

SECTION 5. Period to Decide Case. — (a) Should the Labor Arbiter find it necessary to conduct a hearing, he shall issue an order to that effect setting the date or dates for the same which shall be terminated within ninety (90) days from initial hearing.

He shall render his decision within thirty (30) calendar days, without extension, after the submission of the case by the parties for decision, even in the absence of stenographic notes.

b) If the Labor Arbiter finds no necessity of further hearing after the parties have submitted their position papers and supporting documents, he shall issue an Order to that effect and shall inform the parties, stating the reasons therefor. In any event, he shall render his decision in the case within the same period provided in paragraph (a) hereof.

SECTION 6. Conciliation of Disputes. — In all cases, and at any stage of the proceedings, the Labor Arbiter shall exert all efforts and take positive steps toward resolving the dispute through conciliation.

SECTION 7. Nature of Proceedings. — The proceedings before a Labor Arbiter shall be non-litigious in nature. Subject to the requirements of due process, the technicalities of law and procedure and the rules obtaining in the courts of law shall not strictly apply thereto. The Labor Arbiter may avail himself of all reasonable means to ascertain the facts of the controversy speedily, including ocular inspection and examination of well-informed persons.

SECTION 8. Role of Labor Arbiter in Proceedings. — The Labor Arbiter shall personally conduct the conferences/hearings. Except as provided by law, the Labor Arbiter shall determine the order of presentation of evidence by the parties, subject to the requirements of due process. He shall take full control of the proceedings, examine the parties and their witnesses to satisfy himself with respect to the matters at issue, and may allow the parties or their counsel to ask questions only for the purpose of clarifying points of law or fact involved in the case. He shall limit the presentation of evidence to matters relevant to the issue before him and necessary for a just and speedy disposition of the case.

SECTION 9. Presentation of Evidence. — The party initiating the case shall be the first to present his evidence to support his case.

SECTION 10. Extent of Cross-Examination. — In the cross-examination of witnesses, only relevant, pertinent and material questions necessary to enlighten the presiding Labor Arbiter shall be allowed.

SECTION 11. Non-appearance of Parties at Conference/Hearings. — (a) Two (2) successive absences at a conference/hearing by the complainant or petitioner, who was duly notified thereof, may be sufficient cause to dismiss the case without prejudice. Where proper justification, however, is shown by proper motion to warrant the re-opening of the case, the Labor Arbiter shall call a second hearing and continue the proceedings until the case is finally decided. Dismissal of the case for the second time due to the unjustified non-appearance of the complainant or petitioner who was duly notified thereof shall be with prejudice.

b) In case of two (2) successive non-appearances by the respondent, despite due notice, during the complainant's presentation of evidence, the complainant shall be allowed to present evidence ex-parte, subject to cross-examination by the respondent, where proper, at the next hearing. Upon completion of such presentation of evidence for the complainant, another notice of hearing for the reception of the respondent's evidence shall be issued, with a warning that failure of the respondent to appear shall be construed as submission by him of the case for resolution without presenting his evidence.

c) In case of two (2) successive unjustified non-appearances by the respondent during his turn to present evidence, despite due notice, the case shall be considered submitted for decision on the basis of the evidence so far presented.

SECTION 12. Revival/Re-opening of Dismissed Case. — A party may file with the Labor Arbiter or Branch or Provincial Units of origin a petition to revive or re-open a case dismissed without prejudice, within ten (10) calendar days from receipt of notice to the order dismissing the same; otherwise, his only remedy shall be to re-file the case. chan robles virtual law library red

SECTION 13. Postponement of Hearing. — The parties and their counsel or representative appearing before a Labor Arbiter shall be prepared for continuos hearing. Postponements or continuances of hearing shall be allowed by the Labor Arbiter only upon meritorious grounds and subject always to the requirement of expeditious disposition of cases and the termination of hearings within ninety (90) calendar days. In the event of such postponements or continuances, the Labor Arbiter shall set two or more dates of hearing in advance.

SECTION 14. Records of Proceedings. — The proceedings before a Labor Arbiter need not be recorded by stenographers. He shall make a written summary of the proceedings, including the substance of the evidence presented, in consultation with the parties. The written summary shall be signed by the parties and shall form part of the records.

SECTION 15. Motion to Dismiss. — On or before the date set for the conference, the respondent may file a motion to dismiss. Any motion to dismiss on the ground of lack of jurisdiction, improper venue or that the cause of action is barred by prior judgment or by prescription, shall be immediately resolved by the Labor Arbiter by a written order. An order denying the motion to dismiss or suspending its resolution until the final determination of the case is not appealable.

SECTION 16. Contents of Decisions. — The decisions of the Labor Arbiter shall be clear and concise and shall include a brief statement of the (a) facts of the case; (b) issue/s involved; (c) applicable law or rules; (d) conclusions and the reasons therefor; and (e) specific remedy or relief granted.

In cases involving monetary awards, the decisions or orders of the Labor Arbiter must contain the amount awarded.

In case the decision includes an order of reinstatement, the Labor Arbiter shall direct the employer to immediately reinstate the dismissed or separated employee even pending appeal. The order or reinstatement shall indicate that the employee shall either be admitted back to work under the same terms and conditions prevailing prior to his dismissal or separation or, at the option of the employer, merely reinstated in the payroll.

SECTION 17. Motions for Reconsideration. — No motions for reconsideration of any order or decision of a Labor Arbiter shall be allowed.

SECTION 1. Periods of Appeal. — Decisions, awards or orders of the Labor Arbiter and the POEA Administrator shall be final and executory unless appealed to the Commission by any or both parties within ten (10) calendar days from receipt of such decisions, awards or orders of the Labor Arbiter or of the Administrator, and in case of a decision or of the Regional Director or his duly authorized Hearing Officer within five (5) calendar days from receipt of such decisions, awards or orders. If the 10th or 5th day, as the case may be, falls on a Saturday, Sunday or a holiday, the last day to perfect the appeal shall be the next working day. (As amended, on Nov. 7, 1991.)

SECTION 2. Grounds. — The appeal may be entertained only on any of the following grounds:

(a) If there is prima facie evidence or abuse of discretion on the part of the Labor Arbiter, Regional Director or duly authorized Hearing Officer of Administrator of POEA;

(b) If the decision, order or award was secured through fraud or coercion, including graft and corruption;

(c) If made purely on questions of law; and/or

(d) If serious errors in the findings of facts are raised which, if not corrected, would cause grave or irreparable damage or injury to the appellant.

A mere notice of appeal without complying with the other requisites aforestated shall not stop the running of the period for perfecting an appeal.

(b) The appellee may file with the Regional Arbitration Branch, Regional Office or in the POEA where the appeal was filed, his answer or reply to appellant's memorandum of appeal, not later than ten (10) calendar days from receipt thereof. Failure on the part of the appellee who was properly furnished with a copy of the appeal to file his answer or reply within the said period may be construed as a waiver on his part to file the same.

(c) Subject to the provisions of Article 218, once the appeal is perfected in accordance with these rules, the Commission may limit itself to reviewing and deciding specific issues that were elevated on appeal.

SECTION 4. Where Filed. — The appeal in five (5) legibly typewritten copies shall be filed with the respective Regional Arbitration Branch, the Regional Office, or the Philippine Overseas Employment Administration where the case was heard and decided.

SECTION 5. Appeal Fee.— The appellant shall pay an appeal fee of One hundred (P100.00) Pesos to the Regional Arbitration Branch, Regional Office, or to the Philippine Overseas Employment Administration and the official receipt of such payment shall be attached to the records of the case.

SECTION 6. Bond. — In case the decision of a Labor Arbiter POEA Administrator and Regional Director or his duly authorized hearing officer involves a monetary award, an appeal by the employer shall be perfected only upon the posting of a cash or surety bond issued by a reputable bonding company duly accredited by the Commission or the Supreme Court in an amount equivalent to the monetary award, exclusive of moral and exemplary damages and attorney's fees.

The employer as well as counsel shall submit a joint declaration under oath attesting that the surety bond posted is genuine and that it shall be in effect until final disposition of the case.

The Commission may, in meritorious cases and upon Motion of the Appellant, reduce the amount of the bond. (As amended by Nov. 5, 1993)

SECTION 7. No Extension of Period. — No motion or request for extension of the period within which to perfect an appeal shall be allowed.

SECTION 8. Immediate Transmittal of Records and Appeal. — Within forty-eight (48) hours after the filing of the reply or opposition of the appellee, or after the expiration of the period to file the same, the entire records of the case, together with the memorandum of appeal and the reply or answer thereto, if any, proofs of service, of payment of the appeal fee, and of the posting of the required bond, shall be transmitted by the Executive bond, shall be transmitted by the Executive Labor Arbiter, Regional Director or POEA Administrator to the appropriate Division of the Commission.

SECTION 9. Records of Cases. — The records of a case shall contain, among others, a complete narration of what transpired in the arbitration stage in the form of minutes, including all original pleadings, notices, transcripts of stenographic notes, if any, proof of service of the decision, order or award and other documents, which shall be chronologically arranged and appropriately paged.

SECTION 10. Period to Resolved Appeal. — The Commission shall resolve the appeal from the decision, order or award of the Labor Arbiter and the Administrator within twenty (20) calendar days from receipt of the answer of the appellee or upon the filing of the last pleading or memorandum required by this Rules. In case of appeal from the decision of the Regional Director or his duly authorized Hearing Officer, the same shall be resolved within ten (10) calendar days.

For this purpose, a case or motion shall be deemed submitted for resolution upon the filing of the last pleading or memorandum required.

SECTION 11. Frivolous or Dilatory Appeals. — To discourage frivolous or dilatory appeals, the Commission on Labor Arbiter may impose a reasonable penalty, including fine or censure, upon the erring parties.

SECTION 12. Appeals from decision of Other Agencies. — The rules provided herein governing appeals from the decisions or orders of Labor Arbiters shall apply to appeals to the Commission from decisions or orders of other offices or agencies appealable to the Commission according to law. (As amended on May 21, 1991)

SECTION 1. Jurisdiction of the Commission. — The Commission shall exercise exclusive, original, and appellate jurisdiction in accordance with law.

SECTION 2. Internal functioning of the Commission en banc and its Division. — The Commission composed of the Chairman and of fourteen (14) members shall sit en banc only for purposes of promulgating rules and regulations governing the hearing and disposition of cases before its Divisions and Regional Arbitration Branches, and for the formulation of policies affecting its administration and operations.

(b) Divisions. — Unless otherwise provided by law, the Commission shall exercise its adjudicatory and all other powers functions and duties through its five (5) Divisions. Each Division shall consist of one member from the public sector who shall act as the Presiding Commissioner and one member each from the workers and employers sectors, respectively.

Of the five (5) Divisions, the first and second Division shall have exclusive territorial jurisdiction over appeals of cases coming from the National Capital Region and the POEA; the Third Division, appealed cases from Luzon (Regions I, including the Cordillera Administrative Region II, III, IV except Metro Manila and V); Fourth Division, appealed cases from Visayas (Regions VI, VII, and VIII); and, the Fifth Division, appealed cases from Mindanao (Regions IX, X, XI and XII, including those from the Mindanao Autonomous Region).

(c) Headquarters, Branches and Provincial Units. — A provided by law the Commission and its First, Second and Third Divisions shall have their main office in Metropolitan Manila, and the Fourth and Fifth Divisions in the Cities of Cebu and Cagayan de Oro, respectively.

SECTION 3. The Chairman. — The Chairman, shall preside over all sessions of the Commission en banc. He is the Presiding Commissioner of the First Division. In case of the effective absence or incapacity of the Chairman, the Presiding Commissioner or the Second Division shall be the Acting Chairman.

The Chairman, aided by the Executive Clerk of the Commission, shall have administrative supervision over the Commission and its Regional Branches and all its personnel including the Executive Labor Arbiters and Labor Arbiters. chan robles virtual law library red

SECTION 4. Quorum and Vote. — (a) Commission en banc. The presence of a majority of all the members of the Commission shall be necessary to constitute a quorum to deliberate on and decide any matter before it. The vote or concurrence of majority of the members constituting a quorum shall constitute the decision or resolution of the Commission en banc.

(b) Division. — The presence of at least two (2) Commissioners of a Division shall constitute a quorum to decide any case/matter before it. The concurrence of two (2) Commissioners of a Division shall be necessary for the pronouncement of a 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 obtained, the Chairman shall designate such number of additional Commissioners from the other Divisions as may be necessary from the same sector.

(c) Role of Chairman in the Division. — The Chairman of the Commission may convene and preside over the session of any Division to consider any case pending before it and participate in its deliberations, if in his judgment his presence therein will best serve the interest of labor justice. He shall not, however, participate in the voting by the Division, except when he is acting as Presiding Commissioner of the Division in the absence of the regular Presiding Commissioner.

SECTION 5. Consultation. — The conclusions of a Division on any case/matter 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 the purpose of the consultation ordained herein.

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.

SECTION 6. Dissenting Opinion. — Should any member indicate his intention to write a dissenting opinion, he may file the same within the period prescribed for deciding or resolving the appeal; otherwise, such written dissenting opinion shall not be considered part of the records of the case.

SECTION 7. Inhibition. — Any Commissioner may inhibit himself from the consideration and resolution of any case/matter before the Division and shall so state in writing the legal or justifiable grounds therefor. In the event that a member inhibits himself, the case shall be raffled by the Executive Clerk or Deputy Executive Clerk to either of the two (2) remaining Commissioners.

SECTION 8. Abstention. — In such an event and the concurrence of two (2) Commissioners to arrive at a judgment or resolution cannot be obtained, Section 4 (b) par. 2 of this Rules shall apply.

SECTION 9. Consolidation of Cases. — Appealed cases involving the same parties/issues/and/or related questions of facts or of law shall be consolidated before the Commissioner to whom the case with the lowest number is assigned. Notice of the consolidation shall be given by the Executive Clerk or Deputy Clerk to the other members of the Division.

SECTION 10. Technical rules not binding. — The rules of procedure and evidence prevailing in courts of law and equity shall not be controlling and the Commission shall use every and all reasonable means to ascertain the facts in each case speedily and objectively, without regard to technicalities of law procedure, all in the interest of due process.

In any proceeding before the Commission, the parties may be represented by legal counsel but it shall be the duty of the Chairman, any Presiding commissioner or Commissioner to exercise complete control of the proceedings at all stages.

SECTION 11. Duty to conciliate and mediate. — In the exercise of its original jurisdiction, the Commission shall exert all efforts towards the amicable settlement of a labor dispute on or before the first hearing.

SECTION 12. Role of the Labor Arbiter Assigned to the Commission. — In the resolution of cases mentioned in Rule IX, the Commission shall be assigned by the Labor Arbiter who may be directed to study, review, hear and receive evidence and submit reports thereto.

SECTION 13. Form of Decision/Resolution/Order. — The Decision/Resolution shall state clearly and distinctly the findings of facts, issues and conclusions of law on which it is based and the relief granted, if any. If the decision or resolution involves monetary awards, the same shall contain the specific amount awarded as of the date the decision is rendered.

SECTION 14. Motions for Reconsideration. — Motions for reconsideration of any order, resolution or decision of the Commission shall not be entertained except when based on palpable or patent errors, provided that the motion is under oath and filed within ten (10) calendar days from receipt of the order, resolution or decision, with proof of service that a copy of the same has been furnished, within the reglementary period, the adverse party and provided further, that only one such motion from the same party shall be entertained.

SECTION 15. Period to Decide/Resolve, Certification thereto. — The Commission shall decide/resolve all cases/matters with the prescribed period.

In the event that a case/matter has not been decided/resolved within the prescribed period the Chairman/Presiding Commissioners shall certify why do decision/resolution has been issued within the said period and a copy thereof served upon the parties.

SECTION 1. Issuance of Writ. — (a) Execution shall issue upon an order, resolution or decision that finally disposes of the action or proceedings after the counsels of record and the parties shall have been furnished with copies of the decision in accordance with these Rules but only after the expiration of the period of appeal if no appeal has been duly perfected.

The Labor Arbiter, POEA Administrator or the Regional Director, or his duly authorized hearing officer of origin shall, motu proprio or upon motion of any interested party, issue a writ of execution on a judgment only within five (5) years from the date it becomes final and executory, so requiring the sheriff or duly deputized officer to execute the same. No motion for execution shall be entertained nor a writ be issued unless the Labor Arbiter is in possession of the records of the case which shall include an entry of judgment.

(b) Effect of bond. — The posting of a bond by the employer shall not stay the execution for reinstatement.

SECTION 2. Finality of decisions of the Commission. — (a) Finality of the decisions, resolutions or orders of the Commission. Except as provided in Rule XI, Section 10, the decisions, resolutions orders of the Commission/Division shall become executory after (10) calendar days from receipt of the same. (As amended on May 21, 1991)

(b) Effect of the filing of a motion for reconsideration. — Should there be a motion for reconsideration entertained pursuant to Section 14, Rule VII of these Rules, the decision shall be executory after ten (10) calendar days from receipt of the resolution on such motion.

(c) Entry of judgment. — Upon the expiration of the ten (10) calendar day period provided in Section 2(a) and (b) hereof, the order/resolution shall, immediately thereafter, be entered in the book of entry of judgment. (As amended on May 21, 1991)

SECTION 3. Computation. — The Labor Arbiter of origin in cases involving monetary awards and at all events as far as practicable, shall embody in any such decision or order the detailed and full amount awarded.

In the case of an employee who is unjustly dismissed his full backwages shall include allowances, and other benefits or their monetary equivalent computed from the time his compensation was withheld from him up to the time of his actual reinstatement.

In situations not covered by Section 16, Rule V, but where further computation of the judgment amount is necessary, no execution shall issue until after the computation shall have been approved by the Labor Arbiter after the parties shall have been duly notified and heard thereon.

SECTION 4. Enforcement of Writ. — In executing an order, resolution or decision, the sheriff or other officer acting as such, shall be guided strictly by the Sheriff's Manual which shall form part of these Rules, and in the absence of applicable rules, the Rules of Court.

SECTION 5. Designation of Special Sheriff's and Imposition of Fines. — The Chairman of the Commission may designate special sheriffs and take any measure under existing laws to ensure compliance with their decisions, orders or awards and those of Labor Arbiters, including the imposition of administrative fines which shall not be less than P500.00 nor more than P10,000.00.

SECTION 6. Stay of Execution. — Even of orders, or decisions/resolutions involving monetary awards issued or promulgated prior to the effectivity of Republic Act 6715 may be stayed upon the approval by the Commission of a sufficient supersedeas bond filed by the appellant.

SECTION 1. Policy and Purpose. — It is the declared policy and purpose of certification of Labor disputes for compulsory arbitration to ensure and maintain industrial peace based on social justice and national interest by having a full and complete settlement or adjudication of all labor disputes between the parties, as well as issues that are relevant to or incidents of the certified issues.

SECTION 2. Certified Labor Disputes. — Certified labor disputes are cases certified to the Commission for compulsory arbitration under Article 263(g) of the Labor Code.

SECTION 3. Role of the Chairman. — Upon receipt by the Commission of the certification order, the Chairman shall either personally handle the case or immediately assign the same to the appropriate Division of the Commission for conciliation and disposition, for this purpose, the Chairman or the assigned commissioner may, by himself, conciliate the parties and/or receive the evidence, or by written Order designate a Labor Arbiter to do the same for and in his behalf.

After the termination of the proceedings, the Chairman or the assigned Commissioner or Labor Arbiter, as the case maybe, shall immediately submit a report and recommendation to the appropriate Division of the Commission for discussion and resolution.

SECTION 4. Period to Resolve. — The Commission, sitting in the appropriate Division shall decide or resolve the certified dispute within thirty (30) calendar days from the date of the submission of the dispute for resolution.

SECTION 5. Effects of Certification. — (a) Upon certification, the intended or impending strike or lockout is automatically enjoined, notwithstanding the filing of any motion for reconsideration of the certification order nor the non-resolution of any such motion which may have been duly submitted to the Office of the Secretary of Labor and Employment. If a work stoppage has already taken place at the time of the certification, all striking or locked out employees shall immediately return to work and the employer shall immediately resume operations and readmit all workers under the same terms and conditions prevailing before the strike or lockout.

(b) All cases between the same parties except where the Certification Order specifies its issues submitted for arbitration that are already filed or may be filed that are relevant to or proper incidents of the certified case, shall be considered subsumed or absorbed by the certified case and shall be decided by the Commission, sitting in the appropriate Division.

Whenever a certified labor dispute involves a business entity with several workplaces located in different regions, the division having territorial jurisdiction over the principal office of the company shall acquire jurisdiction to decide such labor dispute, unless the certification order provides otherwise.

SECTION 6. Effects of Defiance. — Non-compliance with certification order of the Secretary of Labor and Employment or a return to work order of the Commission shall be considered an illegal act committed in the course of the strike or lock-out and shall authorize the Secretary of Labor and Employment or the Commission, as the case may be, to enforce the same under pain of loss of employment status or entitlement to full employment benefits from the locking-out employer or backwages, damages and/or other positive and/or affirmative reliefs, even to criminal prosecution against the liable party/ies.

The Commission may also seek the assistance of law enforcement agencies to ensure compliance/enforcement of its orders/resolutions.

SECTION 1. Direct contempt. — (a) The Chairman or Commissioner/s or any Labor Arbiter may summarily adjudge guilty of direct contempt any person committing any act of misbehavior in the presence of or so near the Chairman or any Commissioner or Labor Arbiter as to obstruct or interrupt the proceedings before the same, including disrespect toward said officials, offensive acts toward others, or refusal to be sworn or to answer as a witness or to subscriber to an affidavit or deposition when lawfully required to do so. If the offense is committed against the Commission or any member thereof, the same shall be punished by a fine not exceeding five hundred pesos (P500) or imprisonment not exceeding five (5) days, or both; and, if the offense is committed against any Labor Arbiter the same shall be punished by a fine not exceeding One Hundred Pesos (P100.00) or imprisonment not exceeding one (1) day, or both.

(b) Any person adjudged guilty of direct contempt by a Labor Arbiter may, within a period of five (5) calendar days from notice of the judgment, appeal the same to the Commission and the execution of said judgment shall be suspended pending resolution of the appeal upon the filing by said person of a bond on condition that he will abide by and perform the judgment should the appeal be decided against him. A judgment of the Commission on direct contempt shall be immediately executory and inappealable.

SECTION 2. Indirect Contempt. — The Commission or any Labor Arbiter may also cite any person for indirect contempt upon grounds and in the manner prescribed under Rule 71 of the Revised Rules of Court.

SECTION 1. Injunction in Ordinary Labor Disputes. — A preliminary injunction or a restraining order may be granted by the Commission through its divisions pursuant to the provisions of paragraph (e) of Article 218 of the Labor Code, as amended, when it is established on the bases of the sworn allegations in the petition that the acts complained of, involving or arising from any labor dispute before the Commission, which, if not restrained or performed forthwith, may cause grave or irreparable damage to any party or render ineffectual any decision in favor of such party.

If necessary, the Commission may require the petitioner to post a bond and writ of preliminary injunction or restraining order shall become effective only upon the approval of the bond which shall answer for any damage that may be suffered by the party enjoined, if it is finally determined that the petitioner is not entitled thereto.

The foregoing ancillary power may be exercised by the Labor Arbiters only as an incident to the cases pending before them in order to preserve the rights of the parties during the pendency of the case, but excluding labor disputes involving strike or lockout.

SECTION 2. Injunction in strikes or lockouts. — A temporary or permanent injunction may be granted by the Commission only after hearing the testimony of witness and with opportunity for cross-examination in support of the allegations of the complaint or petition made under oath, and testimony by way of opposition thereto, if offered, and only after a finding of fact by the Commission that:

(a) prohibited or unlawful acts have been threatened and will be committed unless restrained, but no injunction or temporary restraining order shall be issued by reason of any threat, prohibited or unlawful act, except against the person or persons, association or organization making the threat or committing the prohibited or unlawful act or actually authorizing or ratifying the same after actual knowledge thereof;

(b) substantial and irreparable injury to complainant's property will follow;

(c) as to each item or relief to be granted, greater injury will be inflicted upon the complainant by the denial of relief that will be inflicted upon defendants by the granting of relief;

(d) complainant has no adequate remedy at law; and

(e) the public officers charged with the duty to protect complainant's property are unable or unwilling to furnish adequate protection.

SECTION 4. Temporary Restraining Order; Requisites. — If the petitioner shall also allege that, unless a temporary restraining order shall be issued without notice, a substantial and irreparable injury to complaint's property will be unavoidable, such a temporary restraining order may be issued upon testimony under oath, or by affidavits of the petitioners witnesses, sufficient, if sustained, to justify the Commission in issuing a temporary injunction.

SECTION 5. Effectivity of a Temporary Restraining Order. — A temporary restraining order shall be effective for no longer than twenty (20) days and shall become void at the expiration of said twenty (20) days. During the said period, the parties shall be required to present evidence to substantiate their respective positions in the main petition.

SECTION 6. Surety Bond. — No temporary restraining order or temporary injunction shall be issued except on condition that complainant shall first file an undertaking with adequate security in an amount to be fixed by the Commission, which in no case shall be less than ten thousand pesos (P10,000.00) to recompose those enjoined for any loss, expense or damage caused by the improvident or erroneous issuance of such order or injunction, including all reasonable costs, together with a reasonable attorney's fee, and expense of defense against the order or against the granting of any injunctive relief sought in the same proceeding and subsequently denied by the Commission.

The undertaking herein mentioned shall be understood to constitute an agreement entered into by the complainant and the surety upon which an order may be rendered in the same suit or proceeding against said complainant and surety, upon a hearing to assess damages, of which hearing complainant and surety shall have reasonable notice, the said complainant and surety submitting themselves to the jurisdiction of the Commission for that purpose.

SECTION 7. Ordinary Remedy in Law or in Equity. — Nothing herein contained in this Rule shall deprive any party having a claim or cause of action under or upon such undertaking from electing to pursue his ordinary remedy by suit at law or in equity.

SECTION 8. Reception of Evidence; Delegation. — The reception of evidence for the application of a writ of injunction may be delegated by the Commission to any of its Labor Arbiters who shall conduct such hearings in such places as he may determine to be accessible to the parties and their witnesses and shall thereafter submit his report to the Commission within fifteen (15) days from such delegation.

SECTION 9. Ocular inspection. — The Chairman, any Commissioner, Labor Arbiter or their duly authorized representatives may at any time during working hours conduct an ocular inspection on any establishment, building, ship or vessel, place or premises, including any work, material implement, machinery, appliance or any object therein, and ask any employee, laborer or any person, as the case may be, for any information or data concerning any matter of question relative to the object of the petition.

The ocular inspection reports shall be submitted to the appropriate Division within twenty-four (24) hours from the conduct thereof.

SECTION 10. Effectivity of orders/resolutions; Effects of Defiance. — The order resolution enjoining the commission of illegal acts shall be immediately executory accordance with the terms thereof. In case of non-compliance with such Order or Resolution of the Commission enjoining the commission of illegal acts, the Commission shall impose such sanctions and/or issue such orders as may be necessary to implement the said Order or Resolution, including the enlistment of law enforcement agency having jurisdiction over the area for purpose of enforcing the same. (As amended on May 21, 1991)

SECTION 1. Seal of the Commission. — The seal of the National Labor Relations Commission shall be of standard size, circuit with the inscription, running from left and right on the upper outside edge, of the words "National Labor Relations Commission", and the lower outside edge, the words "Republic of the Philippines", with a design at the center containing the coat of arms of the Department of Labor and Employment.

SECTION 2. The Executive Clerk. — The Executive Clerk shall assist the Commission when sitting en banc and, when acting thru the First Division shall perform such similar or equivalent functions and duties as are discharged by the Clerk of Court of the Court of Appeals.

SECTION 3. Deputy Executive Clerks. — The Deputy Executive Clerks for the Second, Third, Fourth and Fifth Divisions shall assist the Commission when acting thru its Division and shall perform similar functions and duties as discharged by the Deputy Clerks of Court of Appeals and as enumerated herein functions of the Executive Clerk relative to their respective Divisions.

SECTION 4. Duties and Functions of the Executive Clerk/Deputy Executive Clerk. —

(a) Custody of Seal and Books. — He shall keep in his care and custody the Seal of the Commission, together with all the books necessary for the recording of the proceedings of the Commission, including the records, files and exhibits;

(b) Filing of Pleadings. — He shall receive and file all cases/pleadings and documents indicating thereon the date and time filed. All pleadings shall be filed in five (5) legibly typewritten copies in legal size;

(c) Raffle/Assignment of Cases. — He shall assign appealed cases for study/report strictly by raffle while cases of original jurisdiction may be assigned by raffle or as directed by the Chairman. In this connection, the raffle of cases for study/report must be attended by the duly designated representatives of the Members of the appropriate Division;

(d) Service of Processes, Order, Decisions. — He shall serve all parties and counsels processes, notices of hearings, copies of Decisions/Resolutions/Orders issued by the Commission by mail or by personal service and immediately attach the returns thereof to the records;

(e) Commission Calendar/Minutes Book. — He shall prepare the Commission/Division calendars of sessions, attend such sessions personally and immediately prepare the Minutes thereof. For this purpose, he shall keep a Minutes Book:

(f) General Docket. — The Executive Clerk shall keep a General Docket for the Commission, each page of which shall be numbered and prepared for receiving all the entries in a single page, and shall enter therein all original and appealed cases before it, numbered consecutively in the order in which they were received and, under the heading of each case, the date and hour of each pleading filed, of each order, decision or resolution entered, and of each other step or action taken in the case; so that, by reference to any single page, the history of the case may be known.

(g) Promulgation/promulgation book. — He shall promulgate Decisions/Final Resolutions on the same date the same is filed with his office and indicate the date and time of promulgation and attest the same by his signature on the first page thereof. He shall immediately furnish the Chairman with a copy of such decision/resolution/order with a summary of the nature thereof and the issue involved therein. He shall keep a Promulgation Book which indicates the date and time of promulgation, the case number, tittle of the case, the ponente, the nature of the Decision/Final Decision and the action taken by the Commission by quoting the disposition portion thereof. Notices of said Decision/Resolutions/Orders shall be sent in sealed envelopes to parties/counsels within forty eight (48) hours from promulgation;

(h) Entry of Judgment. — He shall keep a Book of Entry of Judgment, Orders, Resolutions and Decisions containing in chronological order the entries of all final Orders, Decision, Resolutions of the Commission. (As amended on May 21, 1991)

(i) Disposition/Remand of Records. — Upon entry of judgment, he shall immediately remand the records of the case to the Arbitration Branch of origin, the POEA Administrator or Regional Director or his duly authorized officer, as the case may be. The Records Section shall immediately post said records without delay within two (2) working days.

(j) Monthly Accomplishment Reports. — He shall submit a Monthly Accomplishment Report of the Commission/Division not later than the 7th day of the following month.

(k) Other functions. — He shall perform other functions as directed by the Chairman or the Commission en banc.

SECTION 6. Power to Administrator Oath. — The Chairman, Members of the Commission, the Executive Clerk, the Deputy Executive Clerks, the Executive Labor Arbiters, the Labor Arbiters, and other persons designated or commissioned by the Chairman of the Commission shall have the power to administer oath on all matters or proceedings related to the performance of their duties.

SECTION 7. Access to Commission Records. — All official records of the Commission shall be open to the public during regular office hours, except those kept by it in the nature of confidential reports, records or communications which cannot be divulged without violating private rights or prejudicing the public interest. Minutes of hearing/sessions may not be divulged until after promulgation of the Decision/Resolution.

SECTION 1. Effectivity. — These New Rules shall take effect fifteen (15) days after their publication in two (2) newspapers of general circulation.

(Sgd.) BARTOLOME S. CARALE
     Chairman

(Sgd.) ROMEO B. PUTONG              (Sgd.) EDNA BONTO-PEREZ
          Commissioner              Commissioner

(Sgd.) DOMINGO H. ZAPANTA          (Sgd.) ROGELIO I. RAYALA
         Commissioner               Commissioner

(Sgd.) ERNESTO G. LADRIGO III            (Sgd.) VICENTE S. E. VELOSO III
          Commissioner              Commissioner

(Sgd.) RUSTICO L. DIOKNO              (Sgd.) LOURDES C. JAVIER
         Commissioner               Commissioner

(Sgd.) IRENEO B. BERNARDO          (Sgd.) BERNABE S. BATUHAN
            Commissioner                      Commissioner

(Sgd.) IRENEA E. CENIZA         (Sgd.) OSCAR N. ABELLA
        Commissioner                   Commissioner

(Sgd.) MUSIC M. BUAT          (Sgd.) LEON G. GONZAGA, JR.
      Commissioner                     Commissioner

ATTESTED BY:

(Sgd.) RAUL E. DE LEON
Executive Clerk