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Also, the matters contained in the following were written in accordance with the law, rules, and jurisprudence prevailing at the time of writing and posting, and do not include any future developments on the subject matter under discussion.
AT A GLANCE:
The 2025 National Labor Relations Commission (NLRC) Rules introduce significant modifications to the procedural framework governing proceedings before the NLRC, particularly in Rules V to VII, streamlining processes from conciliation and mediation to appeals and execution of judgments.
In our previous discussion, we examined the salient features of Rules I to IV of the 2025 NLRC Rules. In this article, we turn our attention to Rules V to VII, highlighting the key changes and developments under these provisions.
Jurisdiction of Labor Arbiters
Section 1(h) of Rule V expands the Jurisdiction of Labor Arbiters to encompass issues involving non-compliance with compromise agreements or if there is prima facie evidence that the settlement was obtained through fraud, misrepresentation or coercion, pursuant to Article 233 [227] of the Labor Code, as amended.
Service of Summons
Under Section 4 of Rule V, summons shall be served upon the respondent/s as follows:
- Summons shall be served upon the respondent/s:
- Personally, by the bailiff or by a duly authorized public officer within three (3) working days from receipt thereof;
- By registered mail; or
- By courier authorized by the Commission.
- Such Service may be effected:
- by handing a copy of the summons to the respondent/s in person, or upon refusal to receive and/or to sign for it, by leaving a copy of the summons with the respondent/s after such refusal;
- by leaving a copy of the summons at the respondent/s’ residence to a person of at least eighteen (18) years of age and of sufficient discretion residing therein;
- by leaving a copy of the summons at the respondent/s’ regular/registered office or place of business with a competent person in charge thereof. A competent person includes, but is not limited to, one who customarily receives correspondences for the respondent/s; or
- by leaving a copy of the summons with any of the officers of the homeowners’ association or condominium corporation, or a security officer in charge of the community or the building where the respondent/s may be found, if entry is refused upon making the server’s authority and purpose known.
Take note that under Section 4(c) of Rule V, where the summons is improperly served and a lawyer makes a special appearance on behalf of the respondent/s to, among others, question the validity of the service of summons, the Labor Arbiter shall issue an order deputizing the said counsel to serve the summons upon the respondent/s.
Mandatory Conciliation and Mediation Conference
Section 8(a) and 8(e) of Rule V clarify that the Mandatory Conciliation and Mediation Conference consists of two (2) stages, to wit:
a. The mandatory conciliation and mediation conference shall be called for the purpose of amicably settling the case under a fair compromise agreement.
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e. If the parties fail to agree on an amicable settlement, either in whole or in part, the Labor Arbiter shall proceed to:
- determine the real parties-in-interest;
- determine the necessity of amending the complaint and including all causes of action;
- define and simplify the issues in the case;
- encourage them to enter into admissions or stipulations of facts; and
- thresh out all other preliminary matters.”
The first stage, under Section 8(a), focuses on the amicable settlement of the case through a fair compromise agreement.
If the parties fail to reach an amicable settlement, either in whole or in part, Section 8(e) provides for the second stage, wherein the Labor Arbiter shall proceed to determine the real parties-in-interest; determine the necessity of amending the complaint to include all causes of action; define and simplify the issues; encourage admissions or stipulations of facts; and thresh out all other preliminary matters.
Effect of Failure to File a Position Paper
Section 12 of Rule V provides that the failure to file a Position Paper produces different consequences depending on the party who failed to file,
1. First failure to file by the Complainant (Section 12(a))
If the complainant fails to file position paper while the respondent files the same, the complaint may be dismissed without prejudice, unless declared otherwise by the Labor Arbiter.
2. Second failure to file by the Complainant (Section 12(b))
If the complainant, in a second complaint filed against the same respondent and involving the same cause/s of action, again fails to file a position paper notwithstanding the absence of any position paper from the respondent, the complaint shall be dismissed with prejudice.
3. Failure to File by the Respondents (Section 12(c))
If the respondent fails to file a position paper, such failure shall be deemed a waiver of the right to submit the same, and the Labor Arbiter shall render decision on the basis of the evidence on record.
Grounds for Inhibition of a Labor Arbiter
Section 17 of Rule V states that no Labor Arbiter shall sit in any case in which he/she is pecuniarily interested as heir, legatee, creditor or otherwise, or is related to either party within the sixth degree of consanguinity or affinity, or to counsel within the fourth degree, computed according to the rules of the Civil Code, or in which he/she has been an executor, administrator, guardian, trustee or counsel, without the written consent of all parties-in-interest, signed by them and entered in the record.
A Labor Arbiter may, in the exercise of sound discretion or upon motion of a party, inhibit from further participation in a case, for just or valid reasons other than those mentioned above. Such motion shall be resolved within five (5) working days from the filing thereof.
In any case, the Labor Arbiter shall state in writing the legal justifications for the inhibition. An order denying or granting a motion for inhibition is unappealable.
Death of Parties
Section 20 of Rule V of the 2025 NLRC Rules provides that in case any of the parties dies during the pendency of the proceedings, such party may be substituted by the heirs. Enforcement of a final and executory judgment obtained by any of the parties shall be in accordance with Section 12, Rule XI of these Rules.
Memorandum of Appeal
Unlike the 2011 NLRC Rules, which required the filing of three (3) copies of the Memorandum of Appeal, the 2025 NLRC Rules reduced the requirement to two (2) copies of the Memorandum of Appeal and its attachments. This amendment simplifies procedural requirements and minimizes the use of paper.
Section 3(d) of Rule VI of the 2025 NLRC Rules states that the Memorandum of Appeal and its attachments, if there be any, shall be filed in two (2) legibly written or printed copies, and shall be accompanied by the following:
- Proof of payment of the required appeal fee, legal research fee and such other lawful fees;
- An appeal bond as provided under this Rule; and
- Proof of service thereof on the other party/ies.
Effect of Non-Compliance with the Requisites for Perfection of Appeal
The 2025 NLRC Rules now expressly provide that non-compliance with any of the requisites stated in Section 3 for the Perfection of Appeal shall result in the dismissal of the appeal for non-perfection. (Section 4, Rule VI)
Filing of an appeal in the wrong office
Section 5 of Rule VI provides that the appeal shall be filed only with the Regional Arbitration Branch or DOLE Regional Office of origin. Otherwise, the same shall not stop the running of the period for perfecting an appeal.
Hence, filing of the appeal in the wrong office shall not stop or toll the running of the period for perfecting an appeal.
Payment of Appeal Fee
Under Section 8 of Rule VI, the appellant/s shall pay the appeal fee, legal research fee, and other lawful fees, to the Regional Arbitration Branch or DOLE Regional Office of origin, or through the banking institution/s duly authorized by the NLRC to receive such payment. The original copy of the official receipt corresponding to such payment, or the corresponding deposit slip, shall form part of the record of the case. Payment of fees shall be made in cash, postal money order, certified checks or manager.
Accordingly, the 2025 NLRC Rules broadened the modes of payment for the appeal and other lawful fees to include banking institutions duly authorized by the NLRC to receive such payment.
Surety Bond
Section 11 of Rule VI of the 2025 NLRC Rules removed the collateral-related requirements for posting a surety bond, thereby reducing the financial burden on appellants and streamlining the process.
Under the 2025 NLRC Rules, the surety bond shall be issued by a reputable bonding company duly accredited by the NLRC, and shall be accompanied by original or certified true copies of the following:
- A joint declaration under oath by the employer, counsel and the bonding company attesting that the bond posted is genuine and shall be valid and effective from the date of posting until the Commission shall have finally decided, resolved or terminated the appeal, or the award shall have been satisfied;
- A notarized board resolution or corporate secretary’s certificate from the bonding company showing its authorized signatories and their specimen signatures.
Moreover, the appellant/s shall furnish the appellee/s a certified true copy of the surety bond accompanied by the aforementioned supporting documents. (Section 11, Rule VI)
Single-Entry Approach (SEnA) Referral Slip
In the 2025 NLRC Rules, the referral slip issued by the Single Entry Approach (SEnA) conciliator-mediator shall now form part of the record of the case brought on appeal to the Commission. (Section 17, Rule VI)
Succession of the Chairperson
In case of the effective absence or incapacity of the Chairperson, or when there is a vacancy in the Office of the Chairperson, the Presiding Commissioner of the Second Division shall serve as the Acting Chairperson. In the same eventuality, each of the Presiding Commissioners of the Third, Fourth, Fifth, Sixth, Seventh, or Eighth Division, in sequential order, shall serve as the Acting Chairperson. (Section 4, Rule VII)
Designating an Additional Division Member
Whenever the required membership in a division is not complete and the concurrence of two (2) members cannot be obtained to arrive at a judgment or resolution, the Chairperson shall designate, through an equitable process, such number of additional member/s belonging to the same sector from the other divisions as may be necessary, to sit in the Division. In the event that all the members of a division shall have inhibited themselves from resolving a case, the Chairperson may create a Special Division or assign the case to any of the other divisions. (Section 6 (a), Rule VII)
Grounds for Inhibition of Commissioners (Section 6(e), Rule VII)
A motion to inhibit the entire Division of the Commission shall be not given due course. No member shall sit in any case in which he/she is pecuniarily interested as heir, legatee, creditor or otherwise, or is related to either party within the sixth degree of consanguinity or affinity, or to counsel within the fourth degree, computed according to the rules of the Civil Code, or in which he/she has been an executor, administrator, guardian, trustee or counsel, without the written consent of all parties in interest, signed by them and entered upon the record.
A member may, in the exercise of sound discretion or upon motion of a party, inhibit from sitting in a case, for just or valid reasons other than those mentioned above. Such motion shall be resolved within five (5) working days from the filing thereof.
In any case, the member shall state in writing the legal justifications for the inhibition.
In the event that the member to whom the case was assigned inhibits, the case shall be raffled off by the Executive Clerk or Deputy Executive Clerk to either of the two (2) remaining members. Should two (2) members in a Division inhibit themselves in a case or matter before it, two (2) members from the other divisions representing the respective sectors of the members who inhibited shall be designated in accordance with Section 6(a) of Rule VII.
Execution of Judgment in Certified Cases
Upon finality of the judgment and issuance of the entry of judgment, the Commission, motu proprio or upon motion by the proper party, shall cause the execution of the judgment in the certified cases. (Section 6, Rule VIII)
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Alburo Alburo and Associates Law Offices specializes in business law and labor law consulting. For inquiries regarding legal services, you may reach us at info@alburolaw.com, or dial us at (02)7745-4391/ 09175772207/ 09778050020.
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