Jurisdiction of LA / NLRC-Part2

J. Paler 09.04.15

Labor dispute- includes 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.
Never equate labor dispute to the existence of employer-employee relationship.
NLRC- the jurisdiction of NLRC to issue injunction requires the existence of labor
dispute. if no labor dispute, NLRC has no jurisdiction to issue injunction or TRO but
regular courts.
Processes of settling labor dispute:
1. Conciliation- consists in the effort of a third party- someone other than the
immediate disputants, to assist the parties to end their dispute perhaps by
condoning each others fault or finding a give-and-take compromise.
2. Mediation- there is also a conciliation but a mediator, within his authority, takes a
more active role than a conciliator in searching for and formulating a solution.
3. Arbitration- is a dispute resolution mode more determinative than conciliation or
mediation but less formalistic or technical than litigation. An arbitrator, as in
conciliation and mediation, is a third party, not one of the disputants.
a. Compulsory- under the NLRC through its labor arbiters
b. Voluntary- by choice of the disputing parties as in negotiating a CBA
Voluntary Arbitration is Preferred over Compulsory Arbitration

VENUE (Labor Arbiter)

Workplace- place or locality where the employee is regularly assigned at the time the
cause of action arose
a. all cases which the Labor Arbiter have authority to hear and decide may be filed in the
regional arbitration branch having jurisdiction over the workplace of the
complainant or petitioner
b. where two or more Regional arbitration branch have jurisdiction over the workplace, the
branch which acquired jurisdiction first shall exclude the other.
c. when venue is not objected to before the filing of the position papers, it shall be
deemed waived.
d. cases involving OFW may be filed in the Regional Arbitration Branch where the
complainant resides or principal office of employer is situated, at the option of
complainant
always for the convenience of the worker who is economically disadvantaged
resort to barangay is not necessary for labor cases

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Art 224- Jurisdiction of Labor Arbiter and the Commission (memorize)

1. Unfair labor practice cases
2. Termination disputes;
3. If accompanied with a claim for reinstatement, those cases that workers may file
involving wages, rates of pay, hours of work and other terms and conditions of
employment;
4. Claims for actual, moral, exemplary and other forms of damages arising from the
employer-employee relations;
5. Cases arising from any violation of Article 264 of this Code, including questions
involving the legality of strikes and lockouts; and
6. Except claims for Employees Compensation, Social Security, Medicare and maternity
benefits, all other claims arising from employer-employee relations, including those of
persons in domestic or household service, involving an amount exceeding five thousand
pesos (P5,000.00) regardless of whether accompanied with a claim for reinstatement.

Requirement for NLRC to acquire jurisdiction: the existence of employer-employee

relationship
Except: Santiago vs Sharp (1st bar question- LA has jursidiction includes money
claims of OFW not only arising from employer-employee relationship but those which
arises by virtue of a contract)

I. UNFAIR LABOR PRACTICE

II. TERMINATION DISPUTES (EXCLUDING):
1. termination of corporate officers- intra-corporate controversy; jurisdiction is lodged
within the RTC (Espino vs NLRC),
if the corporate officer is at the same time an employee, the LA already has
jurisdiction (Mainland vs Movilla)
corporate officers- positions that are in the by-laws and positions that require the
approval of the board of directors
take note of Tabang vs NLRC compared to Mainland vs Movilla (in the book)
Factors in determining the jurisdiction: NLRC or RTC
status or relationship of the parties
the nature of the subject of controversy
nature of complainants work
length of service
manner of creation of the office
2. termination involving the interpretation of company policies

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must be resolved in the grievance machinery

the existence of a grievance machinery is a mandatory subject in the CBA.

Failure to obey would make one bargaining in bad faith

example: termination pursuant to a union security clause (except: Sanyo vs

Canizares)

3. involving religious matters which does not concern secular matters- related to the
practice of faith
III. MONEY CLAIMS
1. If the claim, regardless of amount, is accompanied with a claim of reinstatement
2. if the claim, whether or not accompanied with a claim for reinstatement, exceeds 5,000
per claimant- aggregate amount

- if exceeds 5,000, jurisdiction is with DOLE Regional Director

3. money claims of OFW except claims of refund of fees collected from migrant workers
from recruitment agencies- POEA
KASAMBAHAY LAW: regardless of amount, it falls within the jurisdiction of DOLE Regional
Director

Money Claims must have arisen from employment. Money claims which arise out of or

in connection with the employer-employee relationship or some aspect or incident of

such relationship (Smart vs Astorga)
no jurisdiction if the issue cannot be resolved by reference to the Labor Code or other
labor statutes (Grotjahn vs Isnani)
money claims limited to contracts of employments other than the CBA, if within CBA, it
is already within the jurisdiction of the grievance machinery

IV. CLAIMS FOR DAMAGES

-

Must arise out of employer-employee relationship, otherwise the jurisdiction will

be in the regular courts and not in the LA (Tolosa vs NLRC)

Counterclaims by the employer against the employee is also within the

jurisdiction of the LA

When the employee dismissed institutes proceedings before the LA, he should
make a claim for all said relief. He cannot prosecute his claim piecemeal,
separately and contemporaneously in a court of justice upon the same cause of
action or a part thereof. He cannot sue in two forums: one, before the LA for
reinstatement and recovery of backwages upon the theory that his dismissal

Jurisdiction of LA / NLRC-Part2

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was illegal; and two before a court of justice for recovery of moral damages
upon the theory that his dismissal was injurious or tortuous.
LA has NO jurisdiction over the following: these are issues which cannot be resolved with
reference to the Labor Code or any labor statute, but to the Civil Code!
Damages arising from:
a. Negligence of a co-worker
b. Breach of contract of employment
c. Malicious prosecution
d. Slanderous remarks of a corporate officer
-

Notice to the public that an employee is no longer connected with the

management does not entitle him to reliefs or damages because it is merely an
ordinary notice and is necessary to protect the business against loss or injury.

V. STRIKES AND LOCKOUTS

legality of strikes and lockouts

EXCEPT: criminal acts committed by strikers
VI. OTHER CASES

claims for attorneys fees from clients

enforcement or annulment of compromise agreements if the parties did not
substantially comply with the requirements

Art 128 (B) - contested cases; when the employer contests the findings of Labor
regulations officer and in order to resolve such issue, there is a need to examine
evidentiary matters and such matters is not verifiable in the ordinary course of
inspection

no jurisdiction over entities immune from suits (foreign governments) except if such
entities are exercising proprietary functions

wage distortion in an unorganized establishment not voluntary resolved under NCMB

tax deductions on company benefits
NLRC has NO JURISDICTION
1. Manila Hotel vs NLRC - doctrine of forum non conveniences
2. constitutionality of CBA provisions
3. NLRC has no power to issue injunction or TRO but has contempt powers