Introducing New Provisions and Amendments to the 2011 NLRC Rules of Procedure, as Amended

March 11, 2014

NLRC EN BANC RESOLUTION NO. 005-14

INTRODUCING NEW PROVISIONS AND AMENDMENTS TO THE 2011 NLRC RULES OF PROCEDURE, AS AMENDED

Pursuant to Article 218 (a) of the Labor Code, as amended, the National Labor Relations Commission, sitting en banc, RESOLVED TO ADOPT AND PROMULGATE, as it hereby adopts and promulgates new provisions and amendments to the "2011 NLRC Rules of Procedure," as follows:

RULE III

Pleadings, Notices and Appearances

1. Sections 3, 4 and 5, Rule III of the 2011 NLRC Rules of Procedure, as amended, are hereby amended to read as follows:

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

In the event that the pleadings are filed through registered mail or courier authorized by the Commission, the date of mailing shall be considered as the date of filing thereof.

The party filing a pleading shall serve the opposing parties with a copy and its supporting documents. No pleading shall be considered without proof of service to the opposing parties except if filed simultaneously during a schedule set before the Labor Arbiter.

Section 4. Service of Notices, Resolutions, Orders and Decisions. — a) Notices and copies of resolutions or orders, shall be served personally upon the parties by the bailiff or duly authorized public officer within three (3) days from his/her receipt thereof or by registered mail or courier authorized by the Commission;

b) In case of decisions and final awards, copies thereof shall be served on both parties and their counsel or representative by personal service, registered mail or courier authorized by the Commission; Provided that, in cases where a party to a case or his/her counsel on record personally seeks service of the decision upon inquiry thereon, service to said party shall be deemed effected as herein provided. Where parties are numerous, service shall be made on counsel and upon such number of complainants, as may be practicable and shall be considered substantial compliance with Article 224 (a) of the Labor Code, as amended.

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

c) The bailiff or officer serving the notice, order, or resolution shall submit his/her return within two (2) days from date of service thereof, stating legibly in his/her return his/her 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. In case of service by registered mail or by courier authorized by the Commission, the name of the addressee and the date of receipt of the notice, order or resolution shall be written in the return card or in the proof of service issued by the private courier. If no service was effected, the reason thereof shall be so stated.

Section 5. Proof and Completeness of Service. — The return is prima facie proof of the facts indicated therein. Service by registered mail or by courier authorized by the Commission is complete upon receipt by the addressee or his/her agent. If the addressee fails to claim his/her 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.

RULE V

Proceedings Before Labor Arbiters

2. Sections 4, 8, 9 and 21 Rule V of the 2011 NLRC Rules of Procedure, as amended, are hereby supplemented to read as follows:

Section 4. Service of Summons. — Summons shall be served personally upon the parties by the bailiff or a duly authorized public officer within three (3) days from his/her receipt thereof, or by registered mail, or by courier authorized by the Commission; Provided that in special circumstances, service of summons may be effected in accordance with the pertinent provisions of the Rules of Court. The bailiff or officer serving the summons shall submit his/her return within two (2) days from date of service thereof, stating legibly in his/her return his/her name, the names of the persons served and the date of receipt, which return shall be immediately attached to the records and shall be part thereof. If no service was effected, the reason thereof shall be stated in the return.

In case of service by registered mail or by courier authorized by the Commission, the names of the addressees and the dates of receipt of the summons shall be written in the return card or in the proof of service issued by the private courier. If no service was effected, the reason thereof shall be so stated.

Section 8. Mandatory Conciliation and Mediation Conference. — (a) The mandatory conciliation and mediation conference shall be called for the purpose of: (1) amicably settling the case upon a fair compromise; (2) determining the real parties in interest; (3) determining the necessity of amending the complaint and including all causes of action; (4) defining and simplifying the issues in the case; (5) entering into admissions or stipulations of facts; and (6) threshing out all other preliminary matters. The Labor Arbiter shall personally preside over and take full control of the proceedings and may be assisted by the Labor Arbitration Associate in the conduct thereof. Provided that, in areas where there is no Labor Arbiter assigned, conciliation and mediation may be conducted by a Labor Arbitration Associate, any other NLRC personnel with sufficient training and knowledge on conciliation and mediation, authorized by the Chairman or a duly authorized personnel of the Department of Labor and Employment pursuant to any Memorandum of Agreement executed for this purpose.

(b) Conciliation and mediation efforts shall be exerted by the Labor Arbiters or the said authorized personnel all throughout the mandatory conferences.

Any agreement entered into by the parties whether in partial or full settlement of the dispute shall be reduced into writing and signed by the parties and their counsel or the parties authorized representatives, if any.

(c) In any case, the compromise agreement shall be approved by the Labor Arbiter, if after explaining to the parties, particularly to the complainants, the terms conditions and consequences thereof, he/she is satisfied that they understand the agreement, that the same was entered into freely and voluntarily by them, and that it is not contrary to law, morals, and public policy.

(d) A compromise agreement duly entered into in accordance with this Section shall be final and binding upon the parties and shall have the force and effect of a judgment rendered by the Labor Arbiter.

(e) The mandatory conciliation and mediation conference shall, except for justifiable grounds, be terminated within thirty (30) calendar days from the date of the first conference.

(f) No motion for postponement shall be entertained except on meritorious grounds and when filed at least three (3) days before the scheduled hearing.

Section 9. Effect of Failure of Settlement. — If the parties fail to agree on an amicable settlement, either in whole or in part, during the mandatory conciliation and mediation conference, the Labor Arbiter or the said duly authorized personnel shall proceed to the other purposes of the said conference as enumerated in Section 8(a) hereof.

Section 21. Finality of the Decision or Order and Issuance of Certificate of Finality. —

(a) Finality of the Decision or Order of the Labor Arbiter. — If no appeal is filed with the Regional Arbitration Branch of origin within the time provided under Article 223 of the Labor Code, as amended, and Section 1, Rule VI of these Rules, the decision or order of the Labor Arbiter shall become final and executory after ten (10) calendar days from receipt thereof by the counsel or authorized representative or the parties if not assisted by counsel or representative.

(b) Certificate of Finality. — Upon expiration of the period provided in paragraph (a) of this Section, the Labor Arbiter shall issue a certificate of finality.

In the absence of return cards, certifications from the post office or courier authorized by the Commission or other proofs of service to the parties, the Labor Arbiter may issue a certificate of finality after sixty (60) calendar days from date of mailing.

RULE VI

Appeals

3. Section 9 of Rule VI of the 2011 NLRC Rules of Procedure, as amended, is hereby supplemented to read as follows:

Section 9. Filing of Appeal; Effect. — Without prejudice to immediate reinstatement pending appeal under Section 3 of Rule XI, once an appeal is filed, the Labor Arbiter loses jurisdiction over the case. All pleadings and motions pertaining to the appealed case shall thereafter be addressed to and filed with the Commission.

RULE VII

Proceedings Before the Commission

4. Sections 7 and 14, Rule VII of the 2011 NLRC Rules of Procedure, as amended, are hereby supplemented to read as follows:

Section 7. Inhibition. — No motion to inhibit the entire Division of the Commission shall be entertained. However, any Commissioner may inhibit himself/herself from the consideration and resolution of any case or matter before the Division and shall so state in writing the legal or justifiable grounds therefor. In the event that a member inhibits himself/herself, the case shall be raffled by the Executive Clerk or Deputy Executive Clerk to either of the two (2) remaining Commissioners. In case two (2) Commissioners in a Division inhibit themselves in a case or matter before it, the Chairman shall, as far as practicable, designate two (2) Commissioners from other Divisions representing the respective sector of the Commissioners who inhibited themselves.

Section 14. Finality of Decision of the Commission and Entry of Judgment. — a) Finality of the Decisions, Resolutions or Orders of the Commission. — Except as provided in Section 9 of Rule X, the decisions, resolutions or orders of the Commission shall become final and executory after ten (10) calendar days from receipt thereof by the counsel or authorized representative or the parties if not assisted by counsel or representative. 

b) Entry of Judgment. — Upon the expiration of the ten (10) calendar day period provided in paragraph (a) of this Section, the decision, resolution, or order shall be entered in a book of entries of judgment.

In the absence of return cards, certifications from the post office or the courier authorized by the Commission or other proofs of service to the parties, the Executive Clerk or Deputy Executive Clerk shall consider the decision, resolution or order as final and executory after sixty (60) calendar days from date of mailing.

RULE XI

Execution Proceedings

5. Sections 1, 9, 18 Rule XI of the 2011 NLRC Rules of Procedure, as amended, is hereby amended to read as follows:

Section 1. Execution upon Finality of Decision or Order. — (a) A writ of execution may be issued motu proprio or on motion, upon a decision or order that has become final and executory.

(b) If an appeal has been duly perfected and finally resolved by the Commission, a motion for execution may be filed before the Labor Arbiter, when the latter has possession of the case records or upon submission of certified true copies of the decisions or final order/s sought to be enforced including notice of decision or order and the entry of judgment, copy furnished the adverse party.

(c) Except that, as provided for in Section 19 of Rule V in relation to Section 9 of this Rule, and in those cases where partial execution is allowed by law, the Labor Arbiter shall retain duplicate original copies of the decision to be implemented and proof of service thereof for the purpose of immediate enforcement.

Section 9. Manner of Execution of Monetary Judgment. — (a) Upon the issuance of a writ of execution by the Labor Arbiter or the Commission, the Sheriff shall immediately furnish the losing party with a copy thereof by registered mail or by courier authorized by the Commission and enforce the judgment award in the following order:

(1) Cash bond

(2) Bank deposits

(3) Surety bond

(4) Should the cash bond or surety bond be insufficient, the Sheriff shall execute the monetary judgment by levying on the personal property, and if insufficient, the real property of the losing party not exempt from execution, sufficient to cover the judgment award, which may be disposed of for value at a public auction to the highest bidder.

(5) If the losing party has no properties or his/her properties are insufficient and the bonding company refuses to comply with the writ of execution, the sheriff shall proceed to levy on the personal property, and if insufficient, the real property of the bonding company, without prejudice to contempt proceedings against its president, officers or authorized representatives. Moreover, the bonding company shall be barred from transacting business with the Commission;

(b) If the bonding company refuses to pay or the bank holding the cash deposit of the losing party refuses to release the garnished amount despite the order or pertinent processes issued by the Labor Arbiter or the Commission, the president or the responsible officers or authorized representatives of the said bonding company or the bank who resisted or caused the non-compliance shall be either cited for contempt, or held liable for resistance and disobedience to a person in authority or the agents of such person as provided under the pertinent provision of the Revised Penal Code. This rule shall likewise apply to any person or party who unlawfully resists or refuses to comply with the break open order issued by the Labor Arbiter or the Commission.

For this purpose, the Labor Arbiter or the Commission may issue an order directing the sheriff to request the assistance of law enforcement agencies to ensure compliance with the writ of execution, orders or processes.

A bonding company cited for contempt, or for an offense defined and punishable under the pertinent provision of the Revised Penal Code shall be barred from transacting business with the Commission.

(c) Proceeds of execution shall be deposited with the Cashier of the concerned Division or Regional Arbitration Branch, or with an authorized depositary bank. Where payment is made in the form of a check, the same shall be payable to the Commission.

(d) For monetary judgment on cases involving overseas Filipino workers, the manner of execution shall be in accordance with Republic Act No. 10022(5a) (As amended by En Banc Resolution No. 11-12, Series of 2012)

(e) In case of voluntary tender of payment by the losing party and —

(1) in the presence of the prevailing party, it shall be effected before the Labor Arbiter or the Commission, as the case may be;

(2) in the absence of the prevailing party, it shall be effected by immediately depositing the same, in cash or in check, with the Cashier of the NLRC or authorized depositary bank and shall be released only upon order of the Commission or Labor Arbiter who issued the writ.

Payment in the form of check shall be in the name of the Commission.

Section 18. Restitution. — When the executed judgment is totally or partially reversed or annulled by the Court of Appeals or the Supreme Court with finalityand restitution is so ordered, the Labor Arbiter shall, on motion, issue such order of restitution of the executed award, except reinstatement wages paid pending appeal.

6. New Sections 19 and 20, Rule XI of the 2011 NLRC Rules of Procedure, as amended, are hereby introduced as follows:

Section 19. Examination of Losing Party When Judgment Unsatisfied. — When the return of a writ of execution issued against the property of a losing party shows that the judgment remains unsatisfied, in whole or in part, the prevailing party, at any time after such return is made, shall be entitled to an order from the labor arbiter who rendered the said judgment, requiring such losing party to appear and be examined concerning his/her property and income before such Labor Arbiter, at a specified time and place; and proceedings may thereupon be had for the application of the property and income of the losing party towards the satisfaction of the judgment.

Section 20. Enforcement of Attendance and Conduct of Examination. — A party or other person may be compelled, by an order or subpoena, to attend before the Labor Arbiter to testify as provided in the preceding section (examination of losing party's property/income), and upon failure to obey such order or subpoena or to be sworn and subscribe, or to answer as a witness, may be punished for contempt as in other cases in accordance with Section 2 of Rule IX. Examinations shall not be unduly prolonged, but the proceedings may be adjourned from time to time, until the same are completed. All examinations and answers before the Labor Arbiter must be under oath, and when a corporation or other juridical entity answers, it must be on the oath of an authorized officer or agent thereof.

RULE XII

Extraordinary Remedies

7. Sections 2, 9 and 13 Rule XII of the 2011 NLRC Rules of Procedure, as amended, are hereby supplemented to read as follows:

Section 2. Grounds. — The petition filed under this Rule may be entertained only if there is no appeal or any other plain, speedy and adequate remedy in the ordinary course of law, and based on any of the following grounds:

(a) If there is prima facie evidence of abuse of discretion on the part of the labor Arbiter;

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

(c) If a party by fraud, accident, mistake or excusable negligence has been prevented from taking an appeal;

(d) If made purely on questions of law; or

(e) If the order or resolution will cause injustice if not rectified.

Section 9. Effect of Filing of Petition. — Upon filing of the petition, the proceedings before the Labor Arbiter shall continue unless restrained. In case of execution, the proceedings in accordance with Rule XI of these Rules shall not be suspended, but no money collected or credit garnished may be released or properties levied upon be sold by public auction within fifteen (15) calendar days from the filing of the petition. If no temporary restraining order or writ of preliminary injunction is issued within the said period, the money collected or credit garnished shall be released and/or the properties levied upon sold by public auction and the proceeds of the sale applied, to satisfy the judgment.

In case of execution proceedings, the Labor Arbiter shall immediately inform in writing the Commission or the Division where the petition is pending of the satisfaction of the judgment, and, if circumstances warrant, the Commission shall dismiss the petition for being moot.

The records of the case shall not be elevated to the Commission unless otherwise ordered, in which case the execution proceeding shall continue pursuant to the first paragraph hereof, with the Labor Arbiter retaining copies of documents relevant and necessary for this purpose.

In the event of filing of a subsequent petition under this rule involving the same issues, the suspension of the release of money collected or credit garnished or the suspension of auction sale over properties levied upon under the first paragraph shall not apply. (As amended by En Banc Resolution No. 11-12, Series of 2012) n

Section 13. Resolution of Petition. — If the Commission finds that the allegations of the petition are true, it shall:

 

(a) render judgment for the relief prayed for or to which the petitioner is entitled; and/or

(b) grant a final injunction perpetually enjoining the Labor Arbiter or any person acting under his/her authority from the commission of the act/s or confirming the preliminary injunction.

However, the Commission may dismiss the petition if it finds the same to be patently without merit prosecuted manifestly for delay, that the questions raised therein are too unsubstantial to require consideration, or when an appeal or any other plain, speedy and adequate remedy in the ordinary course of law is available.

RULE XIII

Commission Seal and Records, and Powers and Duties of Commission Officials

8. Section 4, Rule XIII of the 2011 NLRC Rules of Procedure, as amended, is hereby amended to read as follows:

Section 4. Duties and Functions of the Executive Clerk and Deputy Executive Clerks. — (a) Custody of Seal and Books. — He/she shall keep in his/her 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/she shall receive and file all cases and pleadings and documents indicating thereon the date and time filed. All pleadings shall be filed in three (3) legibly typewritten copies in legal size;

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

(d) Service of Processes, Orders and Decisions. — He/she shall serve parties and counsel processes, notices of hearings, copies of decisions, resolutions or orders issued by the Commission by registered mail, by courier authorized by the Commission, or by personal service and immediately attach the returns or proofs of delivery thereof to the records;

(e) Commission Calendar and Minutes Book. — He/she shall prepare the Commission or Division calendars of sessions, attend such sessions personally and immediately prepare the minutes thereof. For this purpose, he/she 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 and Promulgation Book. — He/she shall promulgate decisions and final resolutions on the same date the same is filed with his/her office and indicate the date and time of promulgation and attest the same by his/her signature on the first page thereof. He/she shall immediately furnish the Chairman with a copy of such decision, resolution, or order with a summary of the nature thereof and the issue involved therein. He/she shall keep a promulgation book which indicates the date and time of promulgation, the case number, title of the case, the ponente, the nature of the decision or final resolution and the action taken by the Commission by quoting the dispositive portion thereof. Notices of said decisions, resolutions or orders shall be sent in sealed envelopes to parties and their counsel within forty-eight (48) hours from promulgation;

(h) Entry of Judgment. — He shall keep a book of entries of judgment, decisions, resolutions and orders containing in chronological order the entries of all final decisions, resolutions and orders of the Commission;

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

(j) Monthly Accomplishment Reports. — He/she shall submit a monthly accomplishment report of the Commission or Division not later than the 7th day of the following month;

(k) Other Functions. — He/she shall perform other functions as directed by the Chairman or the Commission En Banc.

The Chairman may authorize any personnel in the Division to perform functions as stated in paragraph (g) hereof.

Signed this 11th day of March 2014 at Aklan, Philippines.

(SGD.) GERARDO C. NOGRALESChairman

(SGD.) RAUL T. AQUINOPresiding Commissioner

(SGD.) ALEX A. LOPEZPresiding Commissioner

(SGD.) HERMINIO V. SUELOPresiding Commissioner

(SGD.) GRACE M. TANPresiding Commissioner

(SGD.) JOSEPH GERARD E. MABILOGPresiding Commissioner

(SGD.) VIOLETA O. BANTUGPresiding Commissioner

(SGD.) BARIO-ROD M. TALONPresiding Commissioner

(SGD.) PERLITA B. VELASCOCommissioner

(SGD.) ROMEO L. GOCommissioner

(SGD.) TERESITA D. CASTILLON-LORACommissioner

(SGD.) ERLINDA T. AGUSCommissioner

(SGD.) GREGORIO O. BILOG IIICommissioner

(SGD.) PABLO C. ESPIRITU, JR.Commissioner

(SGD.) ISABEL G. PANGANIBAN-ORTIGUERRACommissioner

(SGD.) NIEVES E. VIVAR-DE CASTROCommissioner

(SGD.) NUMERIANO D. VILLENACommissioner

(SGD.) ANGELO ANG PALAÑACommissioner

On leaveMERCEDES R. POSADA-LACAPCommissioner

(SGD.) DOLORES M. PERALTA-BELEYCommissioner

(SGD.) JULIE C. RENDOQUECommissioner

(SGD.) JOSE G. GUTIERREZCommissioner

On leave(SGD.) PROCULO T. SARMENCommissioner

(SGD.) DOMINADOR B. MEDROSO, JR.Commissioner

Attested by:

(SGD.) ELENITA F. CRUZExecutive Clerk of Court IV

n The last paragraph was inadvertently omitted in the May 30, 2014 issues of Malaya and The Manila Times and was corrected in an erratum published in Malaya and The Manila Times, both dated August 8, 2014.