part 2 - Chan Robles and Associates Law Firm

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Pre-Week Guide on Labor Law 2006 Bar Examinations Prof. Joselito Guianan Chan• Social Security System (SSS);• Government Service Insurance System (GSIS); and• Philippine Health Insurance Corporation (PHIC).JURISDICTION OF LABOR ARBITERS3. What is the nature of jurisdiction of Labor Arbiters?The jurisdiction is original and exclusive in nature.Labor Arbiters have no appellate jurisdiction.4. What are the cases falling under the jurisdiction of the Labor Arbiters?Labor Arbiters have jurisdiction over the following cases1. Unfair labor practice (ULP) cases;2. Termination disputes (or illegal dismissal cases);3. Cases that workers may file involving wages, rates of pay, hours of work andother terms and conditions of employment, if accompanied with claim forreinstatement;4. Claims for actual, moral, exemplary and other forms of damages arising from theemployer-employee relations;5. Cases arising from any violation of Article 264 of this Code, includingquestions involving the legality of strikes and lockouts; and6. Except claims for Employees’ Compensation, Social Security, Medicare andmaternity benefits, all other claims arising from employer-employee relations,including those of persons in domestic or household service, involving an amountexceeding five thousand pesos (P5,000.00) regardless of whether accompaniedwith a claim for reinstatement.5. What are the money claims over which Labor Arbiters have jurisdiction?Money claims falling within the original and exclusive jurisdiction of the Labor Arbitersmay be classified as follows:1. any money claim, regardless of amount, accompanied with a claim forreinstatement (which involves a termination case); or2. any money claim, regardless of whether accompanied with a claim forreinstatement, exceeding the amount of P5,000.00 per claimant (which does notnecessarily involve termination of employment).6. What is the effect of receivership or liquidation of business on the jurisdiction of LaborArbiters?The jurisdiction conferred upon Labor Arbiters and the NLRC would not be lost simplybecause the assets of a former employer had been placed under receivership or liquidation.7. What is the effect of rehabilitation receivership on monetary claims of workers?RUBBERWORLD (PHILS.), INC. VS. NLRC, ET AL., (G. R. No. 128003, July 26,2000) Rehabilitation receivership of a company issued by the SEC has the effect of suspendingall proceedings in all judicial or quasi-judicial bodies. The NLRC may not proceed with hearingof monetary claims. If already decided, the monetary awards cannot be executed. To proceedwith the labor proceedings is grave abuse of discretion.Only when there is liquidation that the monetary claims may be asserted. (ALEMAR’SSIBAL AND SONS, INC. VS. NLRC, ET AL. G. R. No. 114761, January 19, 2000) – Thesuspension of the proceedings is necessary to enable the rehabilitation receiver to effectivelyexercise its powers free from any judicial or extra-judicial interference that might unduly hinderthe rescue of the distressed company. Once the receivership proceedings have ceased and the2
Pre-Week Guide on Labor Law 2006 Bar Examinations Prof. Joselito Guianan Chanreceiver/liquidator is given the imprimatur to proceed with corporate liquidation, the SEC orderbecomes functus officio. Thus, there is no legal impediment for the execution of the decision ofthe Labor Arbiter for the payment of separation pay by presenting it with the rehabilitationreceiver and liquidator, subject to the rules on preference of credits.[See also RUBBERWORLD (PHILS.), INC. VS. NLRC, ET AL., (G. R. No.126773, April 14, 1999)].8. Do Labor Arbiters have jurisdiction over wage distortion cases?Labor Arbiters have jurisdiction over wage distortion cases only in unorganizedestablishments. In organized establishments, jurisdiction is vested with Voluntary Arbitrators.9. Do Labor Arbiters have jurisdiction over money claims of Overseas Filipino Workers(OFWs)?Labor Arbiters have jurisdiction over all monetary claims of Overseas Filipino Workersarising from employer-employee relationship or by virtue of any law or contract involvingFilipino workers for overseas deployment, including claims for actual, moral, exemplary andother forms of damages.(NOTE: The POEA continues to have jurisdiction over recruitment or pre-employmentcases which are administrative in nature, involving or arising out of recruitment laws, rules andregulations, including money claims arising therefrom or violation of the conditions for issuanceof license to recruit workers).10. How should the monetary claims of OFWs be computed?Skippers Pacific, Inc. vs. Mira, et al., (G. R. No. 144314, November 21, 2002) UnderSection 10, Republic Act No. 8042, the claim for unpaid salaries of overseas workers should bewhichever is less between salaries for unexpired portion of the contract or 3 months for everyyear of the remaining unexpired portion of the contract (in case contract is one year or more).11. Do Labor Arbiters have jurisdiction over legality of strikes and lockouts?Labor Arbiters have jurisdiction over the issue of legality of strikes and lockouts, except instrikes and lockouts in industries indispensable to the national interest, in which case, eitherNLRC (in certified cases) or DOLE Secretary (in assumed cases) has jurisdiction.12. Do Labor Arbiters have injunction power?It must be noted that the provision in the 1990 version of the NLRC Rules grantinginjunction power to the Labor Arbiters is no longer found in its 2002 version. It is opined that thisdeletion is correct since Article 218 of the Labor Code grants injunctive power only to the“Commission” which obviously refers to the NLRC’s various divisions and not to the LaborArbiter.13. Do Labor Arbiters have contempt powers?Yes. However, it must be noted that according to the 2003 case of Land Bank of thePhilippines vs. Listana, Sr., [G. R. No. 152611, August 5, 2003], quasi-judicial agencies thathave the power to cite persons for indirect contempt pursuant to Rule 71 of the Rules of Courtcan only do so by initiating them in the proper Regional Trial Court. It is not within theirjurisdiction and competence to decide the indirect contempt cases. These matters are still withinthe province of the Regional Trial Courts.14. Is termination dispute a grievable issue over which Labor Arbiters have no jurisdiction?It has long been settled that a termination dispute (illegal dismissal case) is not agrievable issue, hence, Labor Arbiters have jurisdiction thereover. In Atlas Farms, Inc. vs.NLRC, [G. R. No. 142244, November 18, 2002], the Supreme Court affirmed the earlier rulingsto this effect. Not only this. In the same Atlas Farms case, it was categorically ruled that given the3
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