Labor Relations

Certification Election

1. What is Certification Election?

Certification election is a process of determining through secret ballot the sole and exclusive
bargaining agent (SEBA) of all the employees in an appropriate bargaining unit for the purpose
of collective bargaining.

2. Where does a union file a petition for certification election (PCE)?

A PCE is filed at the Regional Office which issued the certificate of petitioning union’s
certificate of registration/certificate of creation of chartered local.

3. What are the requirements in filing a PCE?

Among the important requirements are the following:

a) A statement indicating any of the following:


o That the bargaining unit is unorganized or that there is no registered CBA
covering the employees in the bargaining unit;
o If there exists a duly registered CBA, that the petition is filed within the sixty-day
freedom period of such agreement;
o If another union had been previously recognized voluntarily or certified in a valid
certification, consent or run-off election, that the petition is filed outside the one-
year period from entry of voluntary recognition or conduct of certification or run-
off election and no appeal is pending thereon.

b) In an organized establishment, the signature of at least twenty-five (25%) percent of all

employees in the appropriate bargaining unit shall be attached to the petition at the time of its
filing (Section 4, Rule VIII, of the Department Order No. 40-03).

4. What happens after receipt of the PCE?

The petition will be raffled to the Med-Arbiter for preliminary conference to determine, among
others, the bargaining unit to be represented, the contending unions, and the possibility of
consent election.

5. What happens upon approval of the conduct of certification election by the Mediator-
Arbiter?
The PCE will be endorsed to an election officer for the conduct of pre-election conference
wherein the date, time and place of election will be identified, the list of challenged and eligible
voters will be made, as well as the number and location of polling places.

6.May a PCE be denied?

Yes, a PCE may be denied if:

a) it was filed before or after the freedom period of a registered CBA;

b) the petitioner union is not listed in the DOLE Registry of legitimate labor organization; or

c) the legal personality of the petitioner-union has been revoked or cancelled with finality.

7. Who will conduct the CE?

The DOLE Regional Office through the election officer conducts the certification election.

8.How is the SEBA determined?

The union that garners majority of the valid votes cast in a valid certification election shall be
certified as the SEBA.

9. May election protest be entertained?

Yes, but protest should have been first recorded in the minutes of the election proceedings.

10.What happens if the petitioner union fails to garner the majority of the valid votes cast?

There will be no SEBA, but another PCE may be filed one year thereafter.

11. What are the requisites for certification election in organized establishments?

Certification election in organized establishments requires that:

a) a petition questioning the majority status of the incumbent bargaining agent is filed before the
DOLE within the 60-day freedom period;

b) such petition is verified; and

c) the petition is supported by the written consent of at least twenty-five percent (25%) of all
employees in the bargaining unit.

12. What is the requirement for certification election in unorganized establishments?

Certification election in unorganized establishments shall “automatically” be conducted upon the
filing of a petition for certification election by an independent union or a federation in behalf of
the chartered local or the local/chapter itself.

13. May an employer file a PCE?

Yes, the employer may file a PCE if it is requested to bargain collectively.

14. May an employer extend voluntary recognition to a legitimate labor organization

without filing a PCE?

Yes, management may voluntarily recognize a union if there is no other union in the company
and if other requirements are complied with (Sec. 2, Rule 7 of D.O. 40-03).

15. What is the role of employer in certification election?

The employer shall not be considered a party to a petition for certification election, whether it is
filed by an employer or a legitimate labor organization, and shall have no right to oppose it. Its
participation shall be limited only to being notified or informed of petition for certification
election and submitting the certified list of employees or where necessary, the payrolls
(Employer as Bystander Rule).

Collective Bargaining

1. What is Collective Bargaining?

It is a process where the parties agree to fix and administer terms and conditions of employment
which must not be below the minimum standards fixed by law, and set a mechanism for
resolving their grievances.

2.What is Collective Bargaining Agreement (CBA)?

It is a contract executed upon request of either the employer or the exclusive bargaining
representative of the employees incorporating the agreement reached after negotiations with
respect to wages, hours of work and all other terms and conditions of employment, including
proposals for adjusting any grievances or questions under such agreement.

3.Is the ratification of the CBA by the majority of all the workers in the bargaining unit
mandatory?

Yes. The agreement negotiated by the employees’ bargaining agent should be ratified or
approved by the majority of all the workers in the bargaining unit.

4.Is there any exception to the requirement of mandatory ratification by the majority of all
the workers in the bargaining unit?
Yes. Ratification of the CBA by the employees in the bargaining unit is not needed when the
CBA is a product of an arbitral award by appropriate government authority or by a voluntary
arbitrator.

5.What constitutes CBA registration?

It is a process of determining whether the application for registration of a Collective Bargaining

Agreement complies with the Rules on CBA registration specifically Rule XVII of the
Department Order No. 40-03 or the Rules amending the Implementing Rules of Book V of the
Labor Code of the Philippines.

6.What is the effect of the CBA registration?

The registration of the CBA will bar a certification election except within the last sixty days
(freedom period) before the expiration of the five-year CBA.

7.What is the lifetime of a CBA?

With respect to representation aspect, the CBA lasts for 5 years. However, not later than 3 years
after the execution of the CBA, the economic provisions shall be renegotiated.

8.What is the freedom period?

It refers to the last sixty days immediately preceding the expiration of the five-year CBA. A
petition for certification election may be filed during the freedom period.

9.Where to file the application for CBA registration?

The application for CBA registration shall be filed at the Regional Office that issued the
certificate of registration or certificate of creation of chartered local of the labor union-party to
the agreement.

10.When to file the application for CBA registration?

The application for registration of the CBA shall be filed within thirty (30) days from the
execution of such CBA.

11.What are the requirements for CBA registration?

The following are the requirements for CBA registration (original and two (2) duplicate copies
which must be certified under oath by the representative of the employer and labor union
concerned):

a) The Collective Bargaining Agreement;

b) A statement that the Collective Bargaining Agreement was posted in at least two (2)
conspicuous places in the establishment concerned for at least five (5) days before its ratification;
and

c) A statement that the Collective Bargaining Agreement was ratified by the majority of the
employees in the bargaining unit of the employer concerned.

12.Is registration fee required?

Yes. The certificate of CBA registration shall be issued by the DOLE Regional Office only upon
payment of the prescribed registration fee.

13.How long will it take to process the CBA registration?

The application for CBA registration shall be processed within one day from receipt thereof.

14.What is the ground for denial of the CBA registration?

Failure of the applicant to complete the requirements for CBA registration but such denial is
without prejudice for the filing of another application for registration.

Labor Management Relations

Article XIII Sec. 3 of the Philippine Constitution on Labor-Management Relations, at a

Glance:

a) Full protection to labor, local and overseas, organized and unorganized;

b) Full employment and equality of employment opportunities for all;

c) Right of all workers to:

 self-organization, collective bargaining and negotiations;

 engage in peaceful concerted activities, including the right to strike in accordance with
law;
 security of tenure, humane conditions of work and a living wage; and
 participate in policy and decision making processes affecting their rights and benefits as
may to provided by law;

d) Promotion of the principle of shared responsibility between workers and employers;

e) Preferential use of voluntary modes in setting disputes, including conciliation.

f) Recognition of the right of labor to its just share in fruits of production; and
g) Right of enterprises to reasonable return of investment and to expansion and growth.

Article 211 of the Labor Code, as amended by R.A. 6715, on the State Policy on Labor
Relations:

a) To promote and emphasize the primacy of free collective bargaining and negotiations,
including voluntary arbitration, mediation and conciliation, as modes of settling labor or
industrial disputes;

b) To promote free trade unionism as an instrument for the enhancement of democracy and the
promotion of social justice and development;

c) To foster the free and voluntary organization of a strong and united labor movement;

d) To promote the enlightenment of workers concerning their rights and obligations as union
members and as employees;

e) To provide an adequate administrative machinery for the expeditious settlement of labor or

industrial disputes;

f) To ensure a stable but dynamic and just industrial peace; and

g) To ensure the participation of workers in decision and policy-making processes affecting their
rights, duties and welfare.

Right to Self-Organization

1.What is Right to self-organization?

It is the right of workers and employees to form, join or assist unions, organizations or
associations for purposes of collective bargaining and negotiation and for mutual aid and
protection. It also refers to the right to engage in peaceful concerted activities or to participate in
policy and decision-making processes affecting their rights and benefits.

2.What is Workers’ Association?

A workers’ association means any group of workers, including ambulant, intermittent, self-
employed, rural workers and those without definite employers, organized for mutual aid and
protection of its members or for any legitimate purpose other than collective bargaining.

3.Who may join a labor organization or workers’ association?

The following may join a labor organization:

  a) all employees employed in commercial, industrial and agricultural enterprises and in
religious, charitable, medical or educational institutions whether operating for profit or
not;

 b) government employees in the civil service;

 c) supervisory personnel;

 d) security personnel; and,

 e) aliens with valid working permit provided there are nationals of a country which grants
the same or similar rights to Filipino workers as certified by the Department of Foreign
Affairs (DFA).

4.Is there a required number of workers in an establishment for a union to be formed?

None, provided that the required 20% membership of the bargaining unit is complied with.

5.How do labor organizations and workers’ associations become legitimate?

Federation, national union or industry or trade union center or an independent union and
workers’ associations become legitimate upon issuance of the certificate of registration by the
Department of Labor and Employment (DOLE).

6.What are the rights of legitimate labor organizations?

A legitimate labor organization shall have the following rights:

 to act as a representative of its members for collective bargaining;

 to be certified as the exclusive representative of all the employees in an appropriate

collective bargaining unit for collective bargaining;

 to be furnished by the employer, upon written request, with annual audited financial
statements within 30 calendar days from date of receipt of the request, or within 60
calendar days before the expiration of the existing CBA, or during the collective
bargaining negotiation;

 to own property, real of personal, for the use and benefit of the labor organization and its
members; and

 to sue and be sued in its registered name; and (6) to undertake all other activities to
benefit the organization and its members, and other projects not contrary to law.

7.How are locals/chapters of federation or workers association created?

A duly registered federation or national union may directly create a local/chapter by issuing a
charter certificate indicating the establishment of the local/chapter. a duly registered workers’
association may also charter any of its braches upon filing of the documents prescribed in
chartering and creation of a local/chapter.

8.When does a local\chapter acquire legal personality?

The local/chapter shall acquire legal personality only for purposes of filing a petition for
certification election from the date the duly registered federation or national union issued a
charter certificate.

The local/chapter shall be entitled to all other rights and privileges of a legitimate labor
organization upon the submission of the following:

 charter certificate

 the names of the local/chapter’s officers, their addresses, and the principal office of the
local/chapter; and

 the chapter constitution and by-laws is the same as that of the federation, this fact shall be
indicated accordingly.

The Genuineness and appropriate execution of the supporting requirement shall be certified
under oath by the secretary or treasurer of the local/chapter and attested to by its president.

9.When may the Regional or BLR Director Inquire into the financial activities of a
legitimate labor organization?

The regional or BLR Director may inquire into the financial activities of any legitimate labor
organization and examine their books of accounts and other records to determine whether they
are complying with the law and the organization’s constitution and by-laws upon the filing of a
request or complaint for the conduct of an accounts examination by any member of the labor
organization, supported by the written consent of at least twenty (20%) percent of its total
membership ( Art. 274 of the Labor Code, as amended).

10.What are the grounds for the cancellation of union registration?

The grounds for the cancellation of union registration are:

a) misrepresentation, false statement or fraud in connection with the adoption or ratification of

the constitution and by-laws or amendments thereto, the minutes of ratification, and the list of
members who took part in the ratification;

b) misrepresentation, false statement or fraud in connection with the election of officers, minutes
of election of officers, and the list of voters; and
c) voluntary dissolution of the members. However, at least 2/3 of its general membership should
vote to dissolve the organization in a meeting called for that purpose and that the application to
cancel the registration is submitted by the board of the organization. It shall be attested to by the
president.

11.Who may file an intra/inter union complaint or petition?

Any legitimate labor organization or its concerned member(s) may file a complaint or petition
involving intra/inter-union disputes or issues. When the issue involves the entire membership of
the labor organization, the complaint or petition shall be supported by at least thirty percent
(30%) of its members.

Single Entry Approach (SEnA)

1. What is the Single Entry Approach (SEnA)?

Single Entry Approach is an administrative approach to provide a speedy, impartial, inexpensive

and accessible settlement procedure for all issues/complaints arising from employer-employee
relations to prevent them from ripening into full blown disputes. Under this approach, all labor
and employment disputes shall undergo a 30-day mandatory conciliation-mediation process to
effect settlement among the contending parties.

2. What are the issues subject to SEnA?

All issues arising from labor and employment which may include the following:

a) Termination or suspension of employment issues;

b) Claims for any sum of money, regardless of amount;

c) Intra-union and inter-union issues except petition for certification election, after exhaustion of
administrative remedies;

d) Unfair labor practices;

e) Closures, retrenchments, redundancies, temporary lay-offs;

f) OFW cases;

g) Occupational safety and health standards issues except those involving imminent danger
situation;

h) Issues arising from other labor and related issuances (OLRI)

i) Any other claims arising from employer-employee relationship; and

j) Cases falling under the administrative and quasi-judicial jurisdiction of all DOLE offices and
attached agencies, including NLRC.

3. What issues are not covered by SEnA?

The following issues are not covered by SEnA:

a) Notices of strikes or lockouts, or preventive mediation cases which shall remain with the
National Conciliation and Mediation Board (NCMB);

b) Issues arising from the interpretation or implementation of the collective bargaining

agreement and those arising from interpretation or enforcement of company personnel policies
which should be processed through the Grievance Machinery and voluntary arbitration; and

c) Issues involving violations of the following permits, licenses or registrations: (Alien

Employment Permit (AEP), PRPA authority or license, Working child permit (WCP) and
violations of Republic Act No.9231 (Anti-Child Labor Law), Registration under Department
Order No. 18-02, POEA issued licenses under the Migrant Workers’ Act, as amended,
Professional license issued by the PRC, TESDA accreditations; and Other similar permits,
licenses or registrations issued by the DOLE or its attached agencies).

4. Who may file a case under the SEnA?

Any aggrieved worker, union, group of workers or the employer may file a request for
assistance.

5. Where to file or request for SEnA?

Request for SEnA can be filed at the Single Entry Assistance Desk (SEAD) in the region where
the employer principally operates. In case of a union or federation representing a local chapter,
the request shall be made at the regional/provincial/ district office where the union or local
chapter is registered.

6. Where to file labor relations disputes?

Labor relations disputes, particularly illegal dismissals with or without claim for reinstatement,
unfair labor practices, strikes and lockouts and claims for damages, shall be filed with the Labor
Arbiter of the NLRC-Regional Arbitration Branch.

7. Does the action to question one’s dismissal prescribe?

Yes. The action prescribes after 4 years from the date of termination.

8. What is the period of prescription for ULP acts?

One year from the time the cause of action accrued.

9. Where to file union representation disputes?

Union representation disputes shall be filed at the DOLE Regional Office.

10. Where to file inter/intra-union disputes and cancellation of union registration?

Inter-union and intra-union disputes shall be filed at the DOLE Regional Office or Bureau of
Labor Relations.

11. Where to file disputes involving interpretation and implementation of CBA or company
personnel policies?

Disputes involving interpretation and implementation of CBA or company personnel policies

that are not resolved by the Grievance Machinery shall be filed at the NCMB Regional Branches.

12. Who has the jurisdiction to determine the legality or illegality of strike/lockout?

The Labor Arbiter at the NLRC-Regional Arbitration Branch determines questions involving the
legality or illegality of a strike/lockout upon the filing of a proper complaint and after due
hearing.

When the issue is of national interest, the Secretary of Labor and Employment may assume
jurisdiction or certify the dispute to the NLRC for compulsory arbitration (International
Pharmaceuticals, Inc. vs. Secretary of Labor, and Associated Labor Union, 205 SCRA 59,
January 9, 1992).

13. May a voluntary arbitrator determine the legality of a strike?

Yes. If the issue is voluntarily and jointly submitted by the parties to voluntary arbitration, the
question may be resolved by the voluntary arbitrator or panel of voluntary arbitrators.

Strikes and Lockout

1. What is alternative dispute resolution (ADR)?

Alternative Dispute Resolution means any process or procedure used to resolve a labor dispute
through conciliation, mediation, voluntary arbitration, or plant-level bipartite mechanisms, such
as labor-management cooperation (LMC) and grievance machinery.

2. What is conciliation-mediation?

Conciliation-mediation is a non-litigious, non-adversarial, less expensive and expeditious

mechanism in assisting the parties towards voluntarily reaching their own mutually acceptable
settlement to the labor dispute. Under this informal set-up, the parties arrive at an amicable
settlement without going through legal procedures.
3. Who can avail of conciliation and mediation services?

Any party to a labor dispute, whether an individual, union or management, can avail of the
conciliation mediation services at the National Conciliation and Mediation Board (NCMB) and
its Regional Branches thru a request for assistance, notice of preventive mediation or notice of
strike/lockout.

4. What are the issues that may be the subject of preventive mediation?

A preventive mediation may be filed by an individual, union or management on any issue arising
from violation of the right to self-organization, including issues for notice of strike or lockout, to
avoid the occurrence of actual labor disputes.

5. Suppose the issue on preventive mediation is not settled, what action may be taken?

The individual, union or management may file a notice of strike/lockout.

6. Who can file a notice of strike?

Unions that are certified as the sole and exclusive bargaining agent (SEBA) may file a notice of
strike at the NCMB Regional Branch. In the absence of a SEBA, a legitimate labor organization
may file but only on grounds of ULPs.

7. What are the valid issues/grounds that may be the subject of a notice of strike/lockout?

A notice of strike or lockout may be filed on grounds of unfair labor practice (ULP) or deadlock
in collective bargaining (CB).

8. May the union or management bring the case to voluntary arbitration?

Yes. Upon agreement, the parties may bring the matter for resolution before an accredited
voluntary arbitrator of their own choice, in which case the Notice is deemed automatically
withdrawn and dropped from the dockets.

9. What happens in case no settlement is reached?

The union/management may go on strike/lockout provided the following are complied with:

a) A request to the concerned NCMB regional branch to observe the conduct of the
strike/lockout vote;

b) Actual conduct of strike/lockout vote must be approved through secret ballot by the majority
of the union members/board of directors of the corporation or association or of the partners in a
partnership;
c) The result of the strike or lockout VOTE shall be submitted to the concerned NCMB-Regional
Branch;

d) The union must wait for the lapse of the 7-day mandatory strike ban period from the
submission of the strike/lockout vote results to give NCMB last ditch effort to effect settlement.

10. What are the periods to be observed before going on strike?

If the ground of the notice of strike is CB deadlock, the cooling-off period is 30 days. If ULP, 15
days. During these periods, the NCMB shall exert all efforts at the mediation and conciliation to
effect voluntary settlement. If Union Busting, the cooling-off period is dispensed with but the
mandatory 7-day Strike Ban period must be complied with.

11. When may a strike or lockout be declared illegal?

A strike or lockout may be declared illegal if any of the requirements for a valid strike or lockout
is not complied with. It may also be declared illegal if it is based on non-strikeable issues or if
the issues involved are already the subject of arbitration. During a strike or lockout, when either
of the parties commits prohibited acts or practices, the strike or lockout may be declared illegal.

12. Who has jurisdiction to determine the legality of strike or lockout?

In general, the Labor Arbiter in the appropriate Arbitration Branch of the NLRC has the power to
determine questions involving the legality or illegality of a strike or lockout upon the filing of a
proper complaint and after due hearing.

Where the matter of legality or illegality of a strike is raised in the dispute over which the
Secretary assumed jurisdiction or in compulsory arbitration, the same may be resolved by the
Secretary or the Commission, respectively. (IPI vs. Sec. of Labor and Associated Labor Unions,
G.R. No. 92981-83, January 9, 1992.)

13. Is conciliation-mediation still possible during actual strike or actual lockout?

Yes. Conciliation-mediation can still continue even during an actual strike or lockout to exhaust
all possible remedies and explore solutions mutually acceptable to both parties in resolving the
labor dispute.

14. What may the union do if the ground for notice of strike is ULP that involves dismissal
of union officers?

In case of dismissal of union officers, the 15-day cooling-off period shall not apply and the union
may declare a strike after observing the 7-day mandatory strike ban period which starts after
submission of the strike vote results.

15. What may happen if the dispute is considered to be imbued with national interest?
The Secretary of Labor and Employment may assume jurisdiction over the dispute or certify it to
the NLRC for compulsory arbitration.

16. Is conciliation-mediation still possible even if the dispute has already been assumed or
certified?

Yes. The duty to bargain collectively continues until all issues involved in the dispute have been
resolved and at any point during the pendency of the case at the Office of the Secretary or at the
NLRC, the parties can still submit the dispute to voluntary arbitration.

17. What is the effect of assumption of jurisdiction or certification for compulsory

arbitration?

The strike is enjoined and the striking workers after due notice are ordered to return to work
and the management to accept them while the Secretary of Labor or the NLRC resolves the
dispute.

18. What is the effect if the strikers refuse to obey the assumption/certification order?

The strike becomes a prohibited activity and the strike becomes illegal. The union officers or
members will be deemed dismissed from employment.

19. Can the employer file a petition to declare the strike illegal?

Yes. An employer may file a petition to declare the strike illegal at the NLRC-RAB where the
employer is located.

20. What is the consequence of an illegal strike?

When the strike is held illegal, only the union officers who knowingly participated will be
considered to have lost their employment status. The union members who knowingly
participated in the commission of illegal acts during the strike may be held liable.

21. What is a grievance?

A grievance is any question by either the employer or the union regarding the interpretation or
implementation of the collective bargaining agreement or interpretation or implementation of
company personnel policies or interpretation or implementation of the productivity incentive
programs or wage distortion issues or any claim by either party that the other party is in violation
of any provision of the CBA or company personnel policies.

22. What are the sources of a grievance?

a. Contract (Collective Bargaining Agreement)

b. Company Personnel Policies and Company Rules and Regulations

c. Company Productivity Incentive Programs

d. Law

e. Past practice

23. What are the types of grievances?

a. Rights disputes – pertain to any violations arising from rights established under collective
agreements, laws, rules and regulations and customary practices.

b. Interests disputes – are often referred to as bargaining deadlock issues which may also be
submitted to voluntary arbitration upon agreement of the parties.

c. Discipline cases – refer to violators of the usual norms or personnel conduct or behaviour of
employees.

24. What are the grounds for a grievance to exist?

a. There is a violation of the CBA provisions. (It arises out of interpretation or implementation of
CBA)

b. A worker has been treated unfairly by some decision or policy of the company. (It involves a
disciplinary action of management)

c. There is violation of law or health and safety regulation.

d. There is violation of a past practice.

e. There is a violation of employer responsibility.

f. Wage distortion issues.

g. Issues arising from the interpretation or implementation of the productivity incentive

programs.

25. Who can file/initiate a Grievance?

a. Aggrieved (individual) employee

b. Group of employees

c. The Union

d. Management or Employer
26. How is a grievance resolved?

The grievance is resolved through the grievance machinery or committee as provided for in the
CBA. The procedure may vary from CBA to CBA, but the ideal procedure shall be as follows:

a) An employee shall present the grievance or complaint orally or in writing to the shop steward;

b) If the grievance is valid, the shop steward shall immediately bring the complaint to the
employee’s immediate supervisor;

c) If no settlement is reached, the grievance shall be referred to the grievance committee which
shall have ten (10) days to decide the case. (Rule 19, Sec. 2. D.O. 40-03)

27. What happens if a grievance is not resolved?

The unresolved issue/s in the grievance shall be submitted to voluntary arbitration.

28. What is Voluntary Arbitration?

Voluntary Arbitration is a mode of settling labor-management dispute by which the parties select
a competent, trained and impartial person who decides on the merits of the case and whose
decision is final, executory and binding. It is the terminal step after the parties have exhausted
their grievance machineries.

29. Who is a voluntary arbitrator?

Any person who has been accredited by the Board as such, or any person named or designated in
the collective bargaining agreement by the parties as their voluntary arbitrator, or one chosen by
the parties with or without the assistance of the Board, pursuant to a selection procedure agreed
upon in the CBA or one appointed by the Board in case either of the parties to the CBA refuses
to submit to voluntary arbitration. The term includes panel of voluntary arbitrators.

30. What are the kinds of a voluntary arbitrator?

a. Permanent Arbitrator – the voluntary arbitrator specifically named or designated in the

collective bargaining agreement by the parties as their voluntary arbitrator.

b. Ad-hoc-arbitrator – the voluntary arbitrator chosen by the parties in accordance with the
established procedures in the CBA or the one appointed by the Board in case there is failure in
the selection or in case either of the parties to the CBA refuses to submit to voluntary arbitration.

31. What are the disputes/issues that may be submitted to voluntary arbitration?

a. All unresolved grievances arising from the interpretation or implementation of the collective
bargaining agreement. (Art. 261, Labor Code)
b. All unresolved grievances arising from the implementation or enforcement of company
personnel policies. (Art. 261, LC)

c. All wage distortion issues arising from the application of any wage orders in organized
establishments. (Art. 124, LC)

d. All unresolved grievances arising from the interpretation and implementation of the
productivity incentive programs RA 6971.

e. All other labor disputes including unfair labor practices. (Art. 262, LC)

f. Bargaining deadlocks (Art. 262,LC)

g. Assumed or certified “national interest cases” before or any stage of the compulsory
arbitration process (Art. 263[h], LC)

h. Illegal dismissal cases under Policy Instruction No. 56 dated April 6, 1993.

32. How does a voluntary Arbitrator or panel of Voluntary Arbitrators acquire jurisdiction
over a case?

Pursuant to DO 40-03 and Revised Procedural Guidelines on VA, a Voluntary Arbitrator or

panel of Voluntary Arbitrators acquire jurisdiction over a specific dispute upon receipt of the
following:

a. submission agreement signed by the parties;

b. notice to arbitrate signed by a party to a CBA with an agreement to arbitrate; or

c. appointment/designation as VA by the National Conciliation and Mediation Board (NCMB) in

either of the following circumstances:

 In the event the parties fail to select an arbitrator; or

 In the event that: a) a NTA is served; b) the CBA does not name in advance an arbitrator;
and c) the other party upon whom the notice is served does not reply favorably within
seven (7) days from receipt of such notice.

33. What is a Submission Agreement?

It is written agreement by the parties submitting their case for arbitration containing the issues,
the chosen arbitrator and stipulation to abide by and comply with the resolution, including the
cost of arbitration.
34. What is the remedy of a party who wants to submit to a Voluntary Arbitration despite
the refusal of the other party after exhaustion of grievance procedure but the grievance
remains unresolved?

Submit the case through a procedure called the Notice to Arbitrate.

35. What is a Notice to Arbitrate?

It is a formal demand made by one party to the other for the arbitration of a particular dispute in
case of refusal of one party to a CBA to submit to arbitration.

36. What is the procedure to a Notice to Arbitrate?

1. The Notice is served upon the unwilling party, copy furnished the permanent arbitrator
and the NCMB Regional Branch having jurisdiction over the workplace;
2. Upon receipt of a notice to arbitrate after the lapse of the seventh-day period within
which to respond, the permanent arbitrator/s shall immediately commence arbitration
proceedings.
3. In the absence of a permanent arbitrator in the CBA, the Board/Branch appoints a
voluntary arbitrator who shall immediately commence arbitration proceedings upon
receipt of such appointment.

37. What is the period required of a voluntary arbitrator or panel of voluntary arbitrators
to render an award or decision?

Unless the parties agree otherwise, a Voluntary Arbitrator or panel of voluntary arbitrators are
mandated to render an award or decision within 20 calendar days from date of submission for
decision.

38. May the parties to a case enter into an amicable settlement of their dispute pending
resolution by the arbitrator?

Yes. In the event that the parties finally settle their dispute during the pendency of the arbitration
proceedings, the terms of settlement shall be reduced into writing and shall be adopted as the
DECISION of the arbitrator.

39. What are the advantages of resorting to voluntary arbitration in the resolution of a
dispute?

a. Speedy

b. Fair

c. Finality of decisions

d. Economical for both in terms of time, money and resources

e. Alternative to Industrial Action

f. Non-litigious, non-adversarial, non-technical

g. Arbitrable issues are not strikeable as mandated by law

40. What is labor-management cooperation?

Labor-management cooperation is a state of relations where labor and management work hand in
hand to accomplish certain goals using mutually acceptable means. It provides schemes of
workers’ participation in decision making process through information sharing, discussion,
consultation and negotiations.

41. Is there a need for labor-management cooperation?

Yes, because labor and management are social partners sharing a common interest in the success
and growth of the enterprise and the economy to promote workers’ participation in decision-
making processes, create a labor relations climate conducive to productivity improvement,
improve the quality of working life and achieve and sustain economic growth.

42. What are the mechanisms to promote labor-management cooperation?

The following are the mechanisms:

a. direct participation mechanisms through small group activities like quality control circles or
productivity improvement circles;

b. indirect participation mechanisms through joint consultative bodies like labor-management

councils or committees;

combination of direct and indirect participation mechanisms like joint bodies and small group
activities.

Termination of Employment

1. What is the right to security of tenure?

The right to security of tenure means that a regular employee shall remain employed unless his
or her services are terminated for just or authorized cause and after observance of procedural due
process.

2. May an employer dismiss an employee? What are the grounds?

Yes. An employer may dismiss an employee on the following just causes:

a) serious misconduct;
 b) willful disobedience;

c) gross and habitual neglect of duty;

d) fraud or breach of trust;

e) commission of a crime or offense against the employer, his family or representative;

f) other similar causes.

3. Are there other grounds for terminating an employment? What are they?

Yes. The other grounds are authorized causes:

a) installation of labor-saving devices;

b) redundancy;

c) retrenchment to prevent losses;

d) closure and cessation of business; and

e) disease / illness.

4. Before terminating the services of an employee, what procedure should the employer
observe?

An employer shall observe procedural due process before terminating one’s employment.

5. What are the components of procedural due process?

A. In a termination for just cause, due process involves the two-notice rule:

a) A notice of intent to dismiss specifying the ground for termination, and giving said
employee reasonable opportunity within which to explain his or her side;

b) A hearing or conference where the employee is given opportunity to respond to the

charge, present evidence or rebut the evidence presented against him or her;

c) A notice of dismissal indicating that upon due consideration of all the circumstances,
grounds have been established to justify termination.

B. In a termination for an authorized cause, due process means a written notice of dismissal to
the employee specifying the grounds at least 30 days before the date of termination. A copy of
the notice shall also be furnished the Regional Office of the Department of Labor and
Employment (DOLE) where the employer is located.
6. What is the sanction if the employer failed to observe procedural due process in cases of
legal and authorized termination?

In cases of termination for just causes, the employee is entitled to payment of indemnity or
nominal damages in a sum of not more than 30,000 pesos (Agabon vs. NLRC, 442 SCRA 573);
in case of termination for authorized causes, 50,000 pesos (Jaka Food Processing vs. Darwin
Pacot, 454 SCRA 119).

7. May an employee question the legality of his or her dismissal?

Yes. The legality of a dismissal may be questioned before the Labor Arbiter of a Regional
Arbitration Branch of the National Labor Relations Commission (NLRC), through a complaint
for illegal dismissal. In establishments with a collective bargaining agreement (CBA), the
dismissal may be questioned through the grievance machinery established under the CBA. If the
complaint is not resolved at this level, it may be submitted to voluntary arbitration.

8. In cases of illegal dismissal, who has the duty of proving that the dismissal is valid?

The employer.

9. Suppose the employer denies dismissing the employee, who has the duty to prove that the
dismissal is without valid cause?

The employee must elaborate, support or substantiate his or her complaint that he or she was
dismissed without valid cause (Ledesma, Jr. vs. NLRC, 537 SCRA 358, October 19, 2007).

10. On what grounds may an employee question his or her dismissal?

An employee may question his or her dismissal based on substantive or procedural grounds.

The substantive aspect pertains to the absence of a just or authorized cause supporting the
dismissal.

The procedural aspect refers to the failure of the employer to give the employee the opportunity
to explain his or her side.

11. What are the rights afforded to an unjustly dismissed employee?

An employee who is dismissed without just cause is entitled to any or all of the following:

a) reinstatement without loss of seniority rights;

b) in lieu of reinstatement, an employee may be given separation pay of one month pay
for every year of service (Golden Ace Builders, et. al vs. Jose Talde, May 5, 2010, GR
No. 187200);
 c) full backwages, inclusive of allowances and other benefits or their monetary
equivalent from the time compensation was withheld up to the time of reinstatement;

d) damages if the dismissal was done in bad faith (Aurora Land Project Corp. vs
NLRC, 266 SCRA 48).

12. What is reinstatement?

Reinstatement means restoration of the employee to the position from which he or she has been
unjustly removed.

Reinstatement without loss of seniority rights means that the employee, upon reinstatement,
should be treated in matter involving seniority and continuity of employment as though he or she
had not been dismissed from work.

When a Labor Arbiter rules for an illegal dismissal, reinstatement is immediately executory even
pending appeal by the employer (Article 223 of the Labor Code, as amended).

13. In what forms may reinstatement pending appeal be effected?

Reinstatement pending appeal may be actual or by payroll, at the option of the employer.

14. What is meant by full backwages?

Full backwages refer to all compensations, including allowances and other benefits with
monetary equivalent that should have been earned by the employee but was not collected by him
or her because of unjust dismissal. It includes all the amounts he or she could have earned
starting from the date of dismissal up to the time of reinstatement.

15. What is separation pay?

In termination for authorized causes, separation pay is the amount given to an employee
terminated due to installation of labor-saving devices, redundancy, retrenchment, closure or
cessation of business or incurable disease.

Separation pay may also be granted to an illegally dismissed employee in lieu of reinstatement.

16. How much is the separation pay?

In cases of installation of labor-saving devices or redundancy, the employee is entitled to receive

the equivalent of one month pay or one month for every year of service, whichever is higher.

In cases of retrenchment, closure or cessation of business or incurable disease, the employee is

entitled to receive the equivalent of one month pay or one-half month pay for every year of
service, whichever is higher.
In case of separation pay in lieu of reinstatement, the employee is entitled to receive the
equivalent of one month pay for every year of service.

17. Is proof of financial losses necessary to justify retrenchment?

Yes. Proof of actual or imminent financial losses that are substantive in character must be proven
by the employer to justify retrenchment (Lopez Sugar Central vs. NLRC, 189 SCRA 179).

18. Are there other conditions before an employee may be dismissed on the ground of
redundancy?

Yes. It must be shown that there is:

a) Good faith in abolishing redundant position; and

b) Fair and reasonable criteria in selecting employees to be dismissed, such as but not
limited to less preferred status (e.g. temporary employee), efficiency and seniority
(Asian Alcohol Corp. vs. NLRC, 305 SCRA 416);

c) A one-month prior notice is given to the employee and DOLE Regional Office as
prescribed by law.

19. May the services of an employee be terminated due to disease?

Yes. The employer may terminate employment on ground of disease only upon the issuance of a
certification by a competent public health authority that the disease is of such nature or at such
stage that it cannot be cured within a period of six months even with proper medical treatment.

20. What is constructive dismissal?

Constructive dismissal refers to an involuntary resignation resorted to when continued

employment becomes impossible, unreasonable or unlikely; when there is a demotion in rank or
a diminution in pay; or when a clear discrimination, insensibility or disdain by an employer
becomes unbearable to an employee or an unwarranted transfer or demotion of a employee, or
other unjustified action prejudicial to the employee. The employer has to prove that such
managerial actions do not constitute constructive dismissal (Blue Dairy Corp. vs. NLRC, 314
SCRA 401)

21. May an employee be placed on floating status?

Yes, provided it is permitted under circumstances for a period of not more than six (6) months.
Beyond this period, floating status becomes constructive dismissal which entitles the employee
to separation pay (Phil. Industrial Security Agency Corp. vs. Virgilio Dapiton and NLRC, 320
SCRA 124)

22. When an employee resigned voluntarily, is he or she entitled to separation pay?

No. An employee is not entitled to separation pay when he or she resigns voluntarily, unless it is
a company practice or provided in the CBA (Hanford Philippines Inc. vs. Shirley Joseph, 454
SCRA 786, March 31, 2005).

23. Are quitclaims valid?

Yes, provided that these are voluntarily signed and the consideration is reasonable and is not
against the law or public policy. (More Maritime Agencies vs. NLRC, 307 SCRA 189)

Quitclaims entered into by union officers and some members do not bind those who did not sign
it (Liana’s Supermarket vs. NLRC, 257 SCRA 186).

Unfair Labor Practice

1. What is unfair labor practice (ULP)?

ULPs are offenses committed by the employer or labor organization which violate the
constitutional right of workers and employees to self-organization. ULP acts are inimical to the
legitimate interests of both labor and management, disrupt industrial peace and hinder the
promotion of healthy and stable labor-management relations. (Art. 248 of the Labor Code, as
amended)

2. What is the nature of ULP?

ULP is not only a violation of the civil rights of both labor and management, but also a criminal
offense against the State. Criminal ULP cases may be filed with the regular courts. No criminal
prosecution may be instituted, however, without a final judgment from the NLRC that an unfair
labor practice was committed.

3. What are some of the ULPs committed by an employer?

ULP by management are as follows:

a) Requiring as a condition of employment that a person or an employee shall not join a labor
organization or shall withdraw from one to which he belongs;

b) Contracting out services or functions being performed by union members when such will
interfere with, restrain, or coerce employees in the exercise of their right to self-organization;

c) Discrimination as regards to wages, hours of work, and other terms and conditions of
employment in order to encourage or discourage membership in any labor organization; and

d) Dismissal, discharge, prejudice or discrimination against an employee for having given or

being about to give testimony under the Labor Code. (Art. 248, 249 of the Labor Code, as
amended)
4. What are some ULPs committed by labor organizations?

A labor organization commits ULP by any of the following violations:

a) Restraint or coercion of employees in the exercise of their right to self-organization: However,

the labor organization shall have the right to prescribe its own rules with respect to the
acquisition or retention of membership; and

b) Causing or attempting to cause an employer to discriminate against an employee, including

discrimination against an employee with respect to whom membership in such organization has
been denied or terminating an employee on any ground other than the usual terms and conditions
under which membership or continuation of membership is made available to other members.

5. What are ULPs committed by both employers and labor organizations?

ULPs by both management and labor organizations are as follows:

a) Interference, restraint, or coercion of employees in the exercise of their right to self-

organization;

b) Violation of a collective bargaining agreement, when circumstances warrant;

c) Initiating, dominating, assisting or otherwise interfering with the formation or administration

of any labor organization, including the giving of financial or other support to it or its organizers
or supporters;

d) Violation of the duty to bargain collectively; and

e) Payment by employer of negotiation or attorney’s fees and acceptance by the union or its
officers or agents as part of the settlement of any issue in collective bargaining or any other
dispute (Art. 248, 249 of the Labor Code, as amended).

VCGP FAQs

1. What is a Voluntary Code of Good Practices (VCGP)?

Voluntary Code of Good Practices (VCGP) refers to a set of Guidelines or a set of voluntary
minimum standards on the social and employment aspects of the industry.

2. What can be covered under a VCGP?

A VCGP may deal with hiring and firing of employees; education and training; health and
safety; enforcement of labor standards or improvement of working conditions; dispute
settlement; social dialogue or in any area determined by the social partners (workers and
employers).
3. What is the objective of a VCGP?

It is to allow the industry social partners to voluntarily self-regulate their engagement and for the
government to assume a facilitative role.

4. How many VCGPs are there?

As of November 2013, there are 90 VCGPs developed nationwide.

5. What are the industries covered with VCGPs?

VCGPs have been developed in various industries, such as education, hospital, transport,
broadcast, hotel and restaurants, tourism, security and janitorial services, business process
outsourcing, banking, mining, construction, power, security, manufacturing, maritime, agri-
business and wood.

6. Where can I find a copy of these VCGPs?

The VCGPs can be found at the following links: www.blr.dole.gov.ph/index.php/vcgp-national-

level and www.blr.dole.gov.ph/index.php/vcgp-regional-level.

DO 18-A, series of 2011

Background

DO18-A, Series of 2011, is a product of 5 years attempt to amend DO18-02.

Extensive tripartite consultations with the following labor groups: APL, AFW, AGLO, BMP,
MAKABAYAN, FFW, TUCP, TUPAS, NAFLU, and LMLC, NCL, and AIHRWU, with the
employers groups through the ECOP and PALSCON.

Total of 6 tripartite consultations, in addition to separate sectoral and organizational sittings,

were conducted since July 2011 right after the reconstitution of the TIPC.

New Issuances

Strikes a balance between the need of business for numerical and functional flexibility, on one
hand, and observance of labor standards and workers’ rights, on the other.

Recognizes subcontracting as a legitimate business undertaking, and regulates it to induce

legitimate, responsible and ethical subcontracting, with enterprise competitiveness enhancement
and decent jobs in mind.
Track of Issuances

To curb abuses and ensure full compliance with workers’ rights to security of tenure, labor
standards, and occupational health and safety standards, by tightening the requirements to allow
only legitimate, responsible and ethical contractors to do subcontracting of jobs, work or services

To equally afford protection to the principal or “user enterprise” and the workers

To remove the litigiousness in the arrangement

Coverage

All parties to contracting or subcontracting which is define as an arrangement where a principal

or “user enterprise”, farms out the performance or completion of a specific job, work or service
of its business to a contractor or subcontractor or “third party” within a definite or predetermined
period, regardless of whether the job, work or service is to be performed or completed within or
outside the premises of the principal.

The contractor or subcontractor must be legitimate, (substantially capitalized, registered, not

LOC), employs its own employees to carry out the job, work or service covered by the Service
Agreement.

Ten (10) Essential Points

1. Recognizes subcontracting as a legitimate business undertaking, and regulates the “supply

side” to induce legitimate, responsible and ethical subcontracting
2. Prohibits contractors/subcontractors from engaging as private recruitment and placement
agencies to clearly establish E-E relationship in a legitimate subcontracting arrangement
with the subcontractor.
3. Prohibits labor-only contracting (and shifts the E-E relationship to the principal or “user
enterprise” in case of a finding of LOC).
4. Sets clear criteria for legitimate contracting or subcontracting by providing:

(a) Minimum standard to determine substantial capitalization (P3 Million paid up capital or net
worth);

(b) Proof of ownership or lease contract for the tools, equipment, machineries and work premises
that are actually and directly used for the subcontracted work or services must be shown, which is
subject to verification inspection;

(c) Registration with the DOLE; and

(d) Presence of “control test” element in employer-employee relationship between the
subcontractor and the employees deployed to carry out the subcontracted services

5. Directs mandatory registration of subcontractors by reiterating that non-registration will

give rise to presumption of LOC; provides a registration system with built-in mechanism
to detect and deter re-entry of cancelled registrant or recidivist violators of labor standards
with full disclosure requirement; and requires a P25,000.00 registration fee (for both new
& renewal of registration)
6. Increase intended to put value to the Certificate of Registration which stands as DOLE
guarantee to the “user enterprise” and to the workers that the registrant is a legitimate
subcontractor and substantially capitalized.
7. Reiterates the rights of the contractor’s employees, whether deployed or assigned as
reliever, seasonal, week-ender, temporary, or promo jobbers, to all the rights and privileges
as provided in the Labor Code, to include:

(a) safe and healthful working conditions;

(b) labor standards such as service incentive leave, rest days, overtime pay, holiday pay, 13th
month pay

(c) separation pay as may be provided in the Service Agreement or under the Labor Code;

(d) retirement benefits under the SSS, or retirement plans of the contractor, if there are any;

(e) social security and welfare benefits;

(f) self-organization, collective bargaining and peaceful concerted activities; and

(g) security of tenure.

8. Provides a summary proceedings for the cancellation of certificate of registration in case

of violation of the Rules.
9. Reiterates the right to security of tenure of the contractor’s employees and clearly set-out
the “due process” requirement in termination of employment to remove the litigiousness
in the process.
10. Ensures compliance by clarifying that the principal and subcontractor is subject to routine
inspection regardless of the number of employees and provides for tripartite engagement
in the region-based tripartite monitoring team in the implementation of DO 18-A, Series of
2011, with “opt-out” provision for voluntary compliance through TAV-Kapatiran and
Incentivizing Compliance Program.

DOLE-PNP-PEZA

1. What is the Joint DOLE-PNP-PEZA Guidelines?

The Joint DOLE-PNP-PEZA Guidelines or Joint Guidelines refers to the Joint DOLE-PNP-
PEZA Guidelines in the Conduct of PNP Personnel, Economic Zone Police and Security Guards,
Company Security Guards and Similar Personnel During Labor Disputes, which was jointly
issued by the DOLE, PNP and PEZA on 23 May 2011 to ensure proper coordination in
responding to cases of a strike/lockout/picket or any labor dispute within or outside the economic
zones.

2. What agency has the jurisdiction on resolving labor dispute?

The Department of Labor and Employment (DOLE) has sole and exclusive jurisdiction in
resolving labor disputes. Its attached agency, the National Conciliation and Mediation Board
(NCMB), exercises primary jurisdiction in the resolution of strikes, picketing or lockout or any
labor dispute through conciliation-mediation.

3. May the PEZA or PNP personnel intervene to resolve a labor dispute?

Philippine Economic Zone Authority (PEZA) may intervene, in close coordination with the
DOLE, to resolve a labor dispute in the economic zones through conciliation-mediation. The
Philippine National Police (PNP) or any of its personnel has no authority to resolve labor dispute
or determine whether a strike/lockout/picket is legal or illegal. The PNP is confined to ensuring
or maintaining peace and order.

4. What labor disputes are covered by the Joint DOLE-PNP-PEZA Guidelines?

It covers strikes, lockouts, picketing or any controversy or matter concerning terms and
conditions of employment or the association or representation of persons in negotiating, fixing,
maintaining, changing or arranging the terms and conditions of employment, regardless of
whether the disputants stand in the proximate relation of employer and employee.

5. Where is it applicable?

If the mobilization of PNP peacekeeping assistance is in relation to a strike/lockout/picket or any

labor dispute, the Joint DOLE-PNP-PEZA Guidelines applies regardless of location, whether it is
inside or outside the economic zone area.

6. What is the role of the PNP in strikes/lockouts/picketing or any labor disputes?

The PNP is limited only to the maintenance of peace and order, enforcement of laws and
implementation of legal orders of the duly constituted authorities during strike, lockout,
picketing or any labor dispute. It can be requested to render peace-keeping assistance during
labor disputes through a written request course through the DOLE.

7. Who can mobilize PNP peace-keeping assistance during a strike/lockout/picket or any

labor dispute?
The DOLE, or PEZA in coordination with the DOLE, or the parties to a labor dispute, may
request for PNP peace-keeping assistance during a strike/lockout/picket or any labor dispute,
subject to the requirement of the Joint Guidelines.

8. How should the request for PNP peace-keeping assistance be made?

Any request for assistance shall be made through the DOLE. A written request from the DOLE
and/or its Regional Office is required in mobilizing PNP peace-keeping assistance during
strike/picket/ lockout or any labor dispute. The request shall be made to the PNP Regional
Director, Provincial Director, or City Police Director, and shall specify the acts to be performed
or conducted by the PNP Team.

Parties to the dispute may request for assistance but the same is required to be in writing and
coursed through the DOLE, or through PEZA in coordination with the DOLE, if the dispute is
inside an economic zone area.

9. May the Economic Zone Police be mobilized as a peace-keeping assistance team during a
strike/lockout/picket or any labor dispute inside the economic zone?

Yes. The Economic Zone Police together with the PEZA Security Guards, upon a written request
from the DOLE and/or its Regional Office, may be formed into a peace-keeping team to ensure
peace and order. The request shall be made to the Head or Responsible Officer of the concerned
economic zone.

10. Who may request for Economic Zone Police peace-keeping assistance other than the
DOLE in case of a strike/lockout/ picket or labor dispute inside the economic zone?

Labor groups or the company management may request for Zone Police assistance through the
Economic Zone Office where the labor dispute is located. The Economic Zone Office shall
coordinate the request with the DOLE and/or its Regional Office.

11. When can the PNP or Economic Zone Police/PEZA Security Guards respond
strike/picket/lockout or any labor dispute without a written request from DOLE?

In case of actual violence in the area where the strike/picket/lockout or any labor dispute is, the
PNP or Economic Zone Police/PEZA Security Guards can respond even without a written
request from DOLE. But it shall immediately coordinate such response to the nearest DOLE
and/or PEZA Office.

12. Where shall the PNP or Economic Zone Police/PEZA Security Guards be stationed in
the exercise of their peace-keeping functions during picket/strike/lockout or any labor
dispute?

The PNP or Economic Zone Police/PEZA Security Guards shall stay outside the 50-meter radius
from the picket/strike/ lockout area in the exercise of their peace-keeping functions.
13. Who shall maintain the traffic if the 50-meter radius includes a public thoroughfare?

Traffic police shall ensure the free flow of traffic in case the 50-meter radius includes a public
thoroughfare.

14. What shall the members of the PNP or Economic Zone Police/PEZA Security Guards
peace-keeping team observe in exercising peace-keeping functions?

In the exercise of their peacekeeping functions, PNP personnel or Economic Zone Police/PEZA
Security Guards shall at all times be in proper uniform, without lethal weapons and firearms, and
with properly displayed nameplate. The peacekeeping team shall:

a. Exercise maximum tolerance and when called for by the situation or when all other peaceful
and non-violent means have been exhausted, may employ as a last resort only such means as
may be necessary and reasonable to prevent or repeal an aggression;

b. Observe courtesy and strict neutrality, bearing in mind that the parties to the labor dispute are
not their adversaries but their partners in the quest for industrial peace and human dignity;

c. Not deliberately inflict any physical harm upon strikers and/or picketers or any person
involved in the strike/lockout;

d. Not fraternize with any of the parties involved in the controversy, and shall not accept any
invitation from management personnel or union officials/personnel involved in the controversy;

e. Ensure that the strike-bound area, which is inside the 50-meter radius, is gun-free zone, to
include civilians and police personnel; and

f. Respect the Constitutional guarantee on the right of the people to be secured from
unreasonable searches and seizures.

15. When can the PNP peace-keeping team step inside the 50-meter radius from the
picket/strike/lockout area?

In case of actual violence arising from or not related to the labor dispute, the PNP peace-keeping
team can step inside the 50-meter radius.

16. What is the DOLE Inter-Agency Coordinating and Monitoring Committee (ICMC) for
labor dispute?

The DOLE Inter-Agency Coordinating and Monitoring Committee (ICMC) at the national or
local level is to be composed of DOLE, NCMB and National Labor Relations Commission
(NLRC) as core members. With DOLE Administrative Order No. 125, Series of 2012, issued on
27 February 2012, a Regional Inter-Agency Coordinating and Monitoring Committee (RICMC)
may be created by the DOLE Regional Consultative Council (RCC), motu proprio or upon a
recommendation by the NCMB Regional Branch. It may be case specific or permanent, if
warranted.

The RICMC shall be headed by the DOLE Regional Director and shall have as core members the
National Conciliation and Mediation Board (NCMB), National Labor Relations Commission
(NLRC), and Philippine National Police (PNP). The Philippine Economic Zone Authority
(PEZA) in case of a labor dispute inside the economic zone, and the Metropolitan Manila
Development Authority (MMDA) or similar authority in other areas, in case of a labor dispute
that will affect public transportation or public thoroughfares, shall be included in the RICMC.

Elected workers’ and employers’ representatives of RTIPC may also be invited to join the
RICMC. The RICMC membership may be expanded, on a case to case basis, to include the other
members of the RCC, local government unit, local chambers of commerce, NGOs and other
relevant agencies or stakeholders, when necessary.

17. What shall the ICMC/RICMC do to ensure the implementation of the Joint Guidelines?

The ICMC/RICMC shall take the lead to explore all remedies and avenues necessary and
feasible to peacefully settle a potential or actual strike, picket or lockout or any labor dispute. It
shall undertake the following:

a. Coordinate, when appropriate, with other government agencies, local government unit and
other relevant stakeholders;

b. Identify issues and recommend possible solutions/options to the parties to the labor dispute;

c. Mantain an open line of communication with management and workers’ representatives

through social dialogue and exhaustive conciliation-mediation towards the immediate settlement
of the labor dispute alongside or with the NCMB as the lead agency;

d. Identify the respective roles of the members of the ICMC/RICMC, including assigning a
spokesperson to handle media-related affairs and establishment of a command center in the strike
area where the RICMC may convene;

e. Ensure observance of the Joint DOLE-PNP-PEZA Guidelines; and

f. Facilitate a Tripartite Social Accord to govern the conduct of all parties involved in a particular
labor dispute pursuant to Section VII of the Joint DOLE-PNP-PEZA Guidelines, which provides:

 Enforcement of non-entry of scabs or individuals to replace strikers

 Enforcement of free ingress to and egress from employer’s premises
 Where the company involved in a strike or lockout is located inside a mall, hotel or
premises of a business enterprise, designation of a decent and reasonable space for
peaceful picketing and for strike/picket paraphernalia
 Safety from undue destruction of strike/picket paraphernalia
  Duty/responsibility of the union to lift the picket/strike after a lawful order, and dismantle
and remove the picket/strike paraphernalia from the area

The ICMC/RICMC, upon an assessment made by the NCMB, may recommend to

discontinue/withdraw the PNP peace- keeping team in the strike/lockout area.

18. How is maximum tolerance ensured?

The PNP in the ICMC/RICMC shall work closely with the PNP personnel on the ground or with
the peace-keeping team in ensuring that maximum tolerance and the Joint DOLE-PNP-PEZA
Guidelines is observed to ensure peace and order in the strike/lockout area.

19. What should be observed in the service of lawful orders or writs issued by DOLE,
courts or duly constituted authorities?

The DOLE Sheriff shall coordinate and dialogue with the workers and management before the
service of DOLE Order or Writ. The Sheriff shall coordinate with the PNP when violence is
imminent. When the Order/Writ is to be served inside an economic zone, the DOLE Sheriff shall
coordinate with the Economic Zone Office.

20. What is the difference between public economic zones and private economic zones?

Public economic zones are established and maintained by the government though the Philippine
Economic Zone Authority (PEZA) while private economic zones are established and maintained
by private individuals/enterprises.

21. Does PEZA exercise supervision and regulation over company security guards inside
economic zones?

PEZA allows its locator-companies to hire security guards from PEZA-accredited security
agencies and such security guards are subject to supervision and security regulations by PEZA.

22. What agency exercises supervision over PEZA police?

PEZA police are under the supervision of the economic zones.

23. May the workers join, form or assist in forming unions/ organizations inside economic
zones?

Workers in the economic zones may exercise their right to self-organization and collective
bargaining and they are allowed to join, form or assist in forming unions/organizations inside the
economic zones.

24. Does the Joint DOLE-PNP-PEZA Guidelines apply to private economic zones?
The Joint DOLE-PNP-PEZA Guidelines is to be observed inside and outside the economic
zones. For this purpose, the appropriate DOLE Regional Office shall forge a Memorandum of
Agreement (MOA) with the owner/administrator of special economic zones or air transport
authorities specifying the guidelines, responsibilities and coordination as stated in the Joint
Guidelines in resolving labor disputes.

25. Can the company security guards respond to strike, picket, lockout or any labor
dispute?

No. Under no circumstance shall company security guards initiate or assist in maintaining peace
and order during picket/strike/lockout or any labor dispute.

26. What is the available remedy against PEZA or DOLE personnel who violate the
provisions of the Joint Guidelines?

The aggrieved party may file an administrative complaint against DOLE personnel in accordance
with the DOLE Manual on Disposition of Administrative Cases and Revised Rules on
Administrative Cases in the Civil Service, and against economic zone police/personnel in
accordance with the PEZA Law and Civil Service Rules.

27. What is the available remedy against PNP personnel who violate the Joint Guidelines?

Complaints of violations against PNP personnel may be filed before the following:

a) PNP-Internal Affairs Service

b) National Police Commission

c) Chief of Police

d) PNP Provincial/City Director

e) PNP Regional Director

f) People’s Law Enforcement Board (PLEB)

g) Ombudsman

h) Civil Service Commission

28. What remedy can be availed of other than an administrative complaint?

Civil or criminal actions can be filed with separately, alternately, simultaneously or successively
before appropriate courts for violation of the provisions of the Revised Penal Code.
29. What shall the fiscals and other government prosecutors do before filing the
information in court of cases arising out of or related to a labor dispute?

The ICMC/RICMCshallensure observance of Circular No.15, Series of 1982 and Circular No. 9,
Series of 1986, issued by the Department of Justice, which require fiscals and other government
prosecutors to first secure clearance from the DOLE and/or the Office of the President “before
taking cognizance of complaints for preliminary investigation and the filing in court of the
corresponding information of cases arising out of or related to a labor dispute,” including cases
with “allegations of violence, coercion, physical injuries, assault upon a person in authority and
other similar acts of intimidation, obstructing the free ingress to and egress from a factory or
place of operation of the machines of such factory, or the employers’ premises”.

30. Can the strikers/picketers be arrested without a warrant of arrest?

No arrest/search and seizure arising from a labor dispute shall be made without a valid warrant.

In case of arrest pursuant to Section 5, Rule 113 of the Rules of Court on warrantless arrest, or
obstruction to public thoroughfares or ingress to and egress from employer’s premises, or
possession of deadly weapons in violation of Batas Pambansa Blg. 6, or possession of firearms
or explosives in violation of Presidential Decree No. 1866, as amended by Republic Act No.
8294, the ICMC/RICMC shall ensure that it is notified by the arresting officer within twenty-
four hours after the arrest and that the person arrested was delivered to the nearest police station
and held by reason of a case filed in court.