Labor Law
Labor Law
Labor Law
Section 8. The right of the people, including those employed in the public and private sectors, to form unions,
associations, or societies for purposes not contrary to law shall not be abridged.
Section 3. The State shall afford full protection to labor, local and overseas, organized and unorganized, and promote
full employment and equality of employment opportunities for all.
It shall guarantee the rights of all workers to self-organization, collective bargaining and negotiations, and peaceful
concerted activities, including the right to strike in accordance with law. They shall be entitled to security of tenure,
humane conditions of work, and a living wage. They shall also participate in policy and decision-making processes
affecting their rights and benefits as may be provided by law.
The State shall promote the principle of shared responsibility between workers and employers and the preferential
use of voluntary modes in settling disputes, including conciliation, and shall enforce their mutual compliance
therewith to foster industrial peace.
The State shall regulate the relations between workers and employers, recognizing the right of labor to its just share
in the fruits of production and the right of enterprises to reasonable returns to investments, and to expansion and
growth.
RIGHT TO SELF-ORGANIZATION
ARTICLE 253. [243] Coverage and Employees' Right to Self-Organization. 194 — All persons employed in
commercial, industrial and agricultural enterprises and in religious, charitable, medical, or educational institutions,
whether operating for profit or not, shall have the right to self-organization and to form, join, or assist labor
organizations of their own choosing for purposes of collective bargaining. Ambulant, intermittent and itinerant
workers, self-employed people, rural workers and those without any definite employers may form labor organizations
for their mutual aid and protection.
ARTICLE 257. [246] Non-Abridgment of Right to Self-Organization. 198 — It shall be unlawful for any person to
restrain, coerce, discriminate against or unduly interfere with employees and workers in their exercise of the right to
self-organization. Such right shall include the right to form, join, or assist labor organizations for the purpose of
collective bargaining through representatives of their own choosing and to engage in lawful concerted activities for
the same purpose for their mutual aid and protection, subject to the provisions of Article 264 199 of this Code.
ARTICLE 292. (c) Any employee, whether employed for a definite period or not, shall, beginning on his first day of
service, be considered as an employee for purposes of membership in any labor union.
ARTICLE 219. [212] Definitions. (e) "Employer" includes any person acting in the interest of an employer, directly
or indirectly. The term shall not include any labor organization or any of its officers or agents except when acting as
employer.
(f) "Employee" includes any person in the employ of an employer. The term shall not be limited to the employees of
a particular employer, unless the Code so explicitly states. It shall include any individual whose work has ceased as a
result of or in connection with any current labor dispute or because of any unfair labor practice if he has not obtained
any other substantially equivalent and regular employment..
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(w) “Independent Union” refers to a labor organization operating at the enterprise level that acquired legal personality
through independent registration under Article 234 of the Labor Code and Rule III, Section 2-A of these Rules.
(x) “Inter-Union Dispute” refers to any conflict between and among legitimate labor unions involving representation
questions for purposes of collective bargaining or to any other conflict or dispute between legitimate labor unions.
(y) “Interlocutory Order” refers to any order that does not ultimately resolve the main issue/s in a dispute.
(z) “Interpleader” refers to a proceeding brought by a party against two or more parties with conflicting claims,
compelling the claimants to litigate between and among themselves their respective rights to the claim, thereby
relieving the party so filing from suits they may otherwise bring against it.
(aa) “Intervention” refers to a proceeding whereby a person, labor organization or entity not a party to a case but may
be affected by a decision therein, formally moves to make himself/herself/itself a party thereto.
(bb) “Intra-Union Dispute” refers to any conflict between and among union members, including grievances arising
from any violation of the rights and conditions of membership, violation of or disagreement over any provision of the
union’s constitution and by-laws, or disputes arising from chartering or affiliation of union.
(cc) “Labor Organization” refers to any union or association of employees in the private sector which exists in whole
or in part for the purpose of collective bargaining, mutual aid, interest, cooperation, protection, or other lawful
purposes.
(dd) “Labor Relations Division” refers to the (1) Labor Organization and CBA Registration Unit and (2)
MedArbitration Unit in the Regional Office. The Labor Organization and CBA Registration Unit is in charge of
processing the applications for registration of independent unions, chartered locals, workers associations and
collective bargaining agreements, maintaining said records and all other reports and incidents pertaining to labor
organizations and workers’ associations. The Med-Arbitration Unit conducts hearings and decides certification
election or representation cases, inter/intra-union and other related labor relations disputes.
(ee) “Legitimate Labor Organization” refers to any labor organization in the private sector registered or reported with
the Department in accordance with Rules III and IV of these Rules.
(ff) “Legitimate Workers’ Association” refers to an association of workers organized for mutual aid and protection of
its members or for any legitimate purpose other than collective bargaining registered with the Department in
accordance with Rule III, Sections 2-C and 2-D of these Rules.
(gg) “Lockout” refers to the temporary refusal of an employer to furnish work as a result of a labor or industrial
dispute.
(hh) “Managerial Employee” refers to an employee who is vested with powers or prerogatives to lay down and execute
management policies or to hire, transfer, suspend, layoff, recall, discharge, assign or discipline employees.
(ii) “Med-Arbiter” refers to an officer in the Regional Office or in the Bureau authorized to hear and decide
representation cases, inter/intra-union disputes and other related labor relations disputes, except cancellation of union
registration cases.
(jj) “Merger” refers to a process where a labor organization absorbs another resulting in the cessation of the absorbed
labor organization’s existence, and the continued existence of the absorbing labor organization.
(kk) “National Union” or “Federation” refers to a group of legitimate labor unions in a private establishment organized
for collective bargaining or for dealing with employers concerning terms and conditions of employment for their
member unions or for participating in the formulation of social and employment policies, standards and programs,
registered with the Bureau in accordance with Rule III, Section 2-B of these Rules.
(ll) “Organized Establishment” refers to an enterprise where there exists a recognized or certified sole and exclusive
bargaining agent.
(mm) “Preventive Mediation Cases” refer to labor disputes which are the subject of a formal or informal request for
conciliation and mediation assistance sought by either or both parties or upon the initiative of the Board.
(nn) “Rank-and-File Employee” refers to an employee whose functions are neither managerial nor supervisory in
nature.
(oo) “Regional Director” refers to the Head of the Regional Office.
(pp) “Regional Office” refers to the office of the Department of Labor and Employment at the administrative regional
level.
(qq) “Registration” refers to the process of determining whether the application for registration of a union or workers’
association and collective bargaining agreement complies with the documentary requirements for registration
prescribed in Rules III, IV, and XVII of these Rules.
(rr) “Related Labor Relations Dispute” refers to any conflict between a labor union and the employer or any individual,
entity or group that is not a labor union or workers’ association.
(ss) “Run-off Election” refers to an election between the labor unions receiving the two (2) highest number of votes
in a certification or consent election with three (3) or more choices, where such a certified or consent results in none
Section 2. Who may join labor unions and workers’ associations. - All persons employed in commercial, industrial
and agricultural enterprises, including employees of government owned or controlled corporations without original
charters established under the Corporation Code, as well as employees of religious, charitable, medical or educational
institutions whether operating for profit or not, shall have the right to self-organization and to form, join or assist labor
unions for purposes of collective bargaining: provided, however, that supervisory employees shall not be eligible for
membership in a labor union of the rank-and-file employees but may form, join or assist separate labor unions of their
own. Managerial employees shall not be eligible to form, join or assist any labor unions for purposes of collective
bargaining. Alien employees with valid working permits issued by the Department may exercise the right to self-
organization and join or assist labor unions for purposes of collective bargaining if they are nationals of a country
which grants the same or similar rights to Filipino workers, as certified by the Department of Foreign Affairs. For
purposes of this section, any employee, whether employed for a definite period or not, shall beginning on the first day
of his/her service, be eligible for membership in any labor organization. All other workers, including ambulant,
intermittent and other workers, the self-employed, rural workers and those without any definite employers may form
labor organizations for their mutual aid and protection and other legitimate purposes except collective bargaining.
Cases:
S.S. Ventures Ventures is a PEZA-registered export Should the registration of the Union be
International firm with its principal place of business cancelled on the ground of
v. S.S. in Mariveles, Bataan. misrepresentation? No.
Ventures
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Labor Union, The Union filed a petition for The double entries are no more than
July 23, 2008 certification election which was “normal human error,” effected without
supported by 542 signatures of the rank- malice. Even the labor arbiter who found
and-file employees of Ventures. for Ventures sided with the Union in its
explanation on the absence of malice.
Ventures filed a petition for cancellation
of the certificate of registration of the The cancellation of a union’s registration
labor union, invoking the grounds set doubtless has an impairing dimension on
forth in Art. 239(a) of the Labor Code the right of labor to self-organization.
(misrepresentation, false statement or Accordingly, we can accord concurrence
fraud in the adoption/ratification of the to the following apt observation of the
constitution/by-laws/minutes of BLR: “[F]or fraud and misrepresentation
ratification/list of members). Ventures [to be grounds for] cancellation of union
alleged for arguments: registration under Article 239 [of the
(1) The Union maliciously included Labor Code], the nature of the fraud and
the names and forged the misrepresentation must be grave and
signatures of 82 former compelling enough to vitiate the consent
employees no longer connected of a majority of union members.”
with Ventures;
(2) The Union maliciously twice Determination of Union Membership is
entered the names of three an Internal Matter flowing from the
persons; Right to Self-Organization
(3) No organizational meetings and [T]he procedure for acquiring or losing
ratification actually took place; union membership and the
and determination of who are qualified or
(4) The Union’s application was not disqualified to be members are matters
supported by at least 20% of the internal to the union and flow from its
2,197 rank-and-file employees of right to self-organization.
Ventures, which is 418.
[T]he relevancy of the 82 individuals’
The Union filed an Answer with Motion active participation in the Union’s
to Dismiss. organizational meeting and the signing
ceremonies thereafter comes in only for
Seven months after its petition for purposes of determining whether or not
cancellation, Ventures filed a the Union, even without the 82, would
Supplemental Reply Memorandum. still meet what Art. 234(c) of the Labor
Ventures included 82 hand-written Code. Even subtracting the 82
statements of 82 employees who alleged employees from 542 leaves 460 union
that they were unwilling or harassed members, still within 440 or 20% of the
signatories to the attendance sheet of the maximum total of 2,202 rank-and-file
organizational meeting. employees.
Ventures filed a petition for certiorari Another factor which militates against
under Rule 65 before the Court of the veracity of the allegations in the
Appeals. The CA denied the petition for Sinumpaang Petisyon is the lack of
certiorari and the subsequent motion for particularities on how, when and where
reconsideration. Hence, this petition for respondent union perpetrated the alleged
review under Rule 45. fraud on each member. Such details are
crucial for in the proceedings for
cancellation of union registration on the
ground of fraud or misrepresentation,
what needs to be established is that the
specific act or omission of the union
deprived the complaining employees-
members of their right to choose.
Bystander Rule
A certification election is exclusively the
concern of employees and the employer
lacks the legal personality to challenge it.
In fact, jurisprudence frowns on the
employer’s interference in a certification
election for such interference unduly
creates the impression that it intends to
establish a company union.
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Technical Rules of Procedure May Be
Relaxed
Ventures’ allegations on forum shopping
and the procedural lapse supposedly
committed by the BLR in allowing a
belatedly filed motion for
reconsideration need not detain us long.
Suffice it to state that this Court has
consistently ruled that the application of
technical rules of procedure in labor
cases may be relaxed to serve the
demands of substantial justice. So it must
be in this case.
The 353 rank-and-file employees of A certification election is the process of
Holiday Inn conducted a certification determining the sole and exclusive
election where NUWHRAIN-MPHC bargaining agent of the employees in an
won 151 votes and HIMPHLU won 169 appropriate bargaining unit for purposes
votes. In view of the significant number of collective bargaining.
of 22 segregated votes, the Unions
referred the case to the Med-Arbiter to To be sure, the conduct of a certification
decide which among the votes would be election has a two-fold objective: to
opened and tallied. determine the appropriate bargaining
unit and to ascertain the majority
On March 10, 2006, the Med-Arbiter representation of the bargaining
ruled for the opening of 17 out of the 22 representative, if the employees desire to
segregated votes, consisting of 11 be represented at all by anyone. It is not
dismissed employees and six supposed simply the determination of who
supervisory employees of the hotel. between two or more contending unions
NUWHRAIN- won, but whether it effectively ascertains
Manila NUWHRAIN filed an appeal and on the will of the members of the bargaining
Pavilion Hotel August 9, 2005, the Secretary of Labor unit as to whether they want to be
Chapter v. and Employment (SOLE) affirmed the represented and which union they want
Secretary, July Med-Arbiter’s Order. The SOLE to represent them.
31, 2009 concluded that the certification of
HIMPHLU as the exclusive bargaining Collective bargaining, refers to the
agent was proper. The SOLE denied the negotiated contract between a legitimate
motion for reconsideration. labor organization and the employer
concerning wages, hours of work and all
The CA denied NUWHRAIN’s appeal other terms and conditions of
and motion for reconsideration and employment in a bargaining unit.
affirmed the ruling of the SOLE. Hence, Collective bargaining covers all aspects
this petition for review on certiorari. of the employment relation and the
resultant CBA negotiated by the certified
Court’s Issues: union binds all employees in the
(1) whether employees on bargaining unit. Hence, all rank and file
probationary status at the time of employees, probationary or permanent,
the certification elections should have a substantial interest in the selection
be allowed to vote, and (YES) of the bargaining representative. (Airtime
Specialists, Inc. v. Ferrer-Calleja)
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(2) whether HIMPHLU was able to
obtain the required majority for The significance of an employee’s right
it to be certified as the exclusive to vote in a certification election cannot
bargaining agent. (NO) thus be overemphasized. For he has
considerable interest in the
Issues Actually Discussed: determination of who shall represent
1. Are the Probationary Employees him in negotiating the terms and
eligible to vote? Yes. conditions of his employment.
The provision in the CBA disqualifying
probationary employees from voting Issue 1: Are Probationary Employees
cannot override the Constitutionally- eligible to vote? Yes.
protected right of workers to self- 1. The Code makes no distinction as to
organization, as well as the provisions of their employment status as basis for
the Labor Code and its Implementing eligibility in supporting the petition
Rules on certification elections and for certification election. The law
jurisprudence thereon. A law is read into, refers to “all” the employees in the
and forms part of, a contract. Provisions bargaining unit. All they need to be
in a contract are valid only if they are not eligible to support the petition is to
contrary to law, morals, good customs, belong to the “bargaining unit.”
public order or public policy. 2. Rule II, Sec. 2 of Department Order
No. 40-03, series of 2003, which
2. What is the reckoning date to amended Rule XI of the Omnibus
determine eligible voters in cases Rules Implementing the Labor Code,
when the order of the Med- provides that “any employee,
Arbiter is under review? The date whether employed for a definite
of finality of the SOLE’s order. period or not, shall beginning on the
In cases where a timely appeal has been first day of his/her service, be eligible
filed from the Order of the Med-Arbiter, for membership in any labor
the date when the Order of the Secretary organization.”
of Labor and Employment, whether
affirming or denying the appeal, Issue 2: What is the reckoning date to
becomes final and executory. [March 10, determine eligible voters in cases when
2006, not August 9, 2005] the order of the Med-Arbiter is under
review? The date of finality of the
3. Are the Supervisory Employees SOLE’s order.
eligible to vote? No. Rule XI, Sec. 5 of D.O. 40-03, on which
At the time the certification elections was the SOLE and the appellate court rely to
conducted, they had ceased to be part of support their position that probationary
the rank and file. employees hired after the issuance of the
Order granting the petition for the
4. Did HIMPHLU attain a majority conduct of certification election must be
vote? No. excluded, should not be read in isolation and
It is well-settled that under the so-called must be harmonized with the other
“double majority rule,” for there to be a provisions of D.O. Rule XI, Sec. 5 of
valid certification election, majority of D.O. 40-03.
the bargaining unit must have voted
AND the winning union must have In light of the provisions in Rule XI, and
garnered majority of the valid votes cast. prescinding from the principle that all
employees are, from the first day of their
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5. Is a run-off election proper? Yes. employment, eligible for membership in
Having declared that no choice in the a labor organization, it is evident that the
certification election conducted obtained period of reckoning in determining who
the required majority, it follows that a shall be included in the list of eligible
run-off election must be held to voters is, in cases where a timely appeal
determine which between HIMPHLU has been filed from the Order of the
and petitioner should represent the rank- Med-Arbiter, the date when the Order of
and-file employees. the Secretary of Labor and Employment,
whether affirming or denying the appeal,
becomes final and executory.
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employees the exercise of their collective
bargaining rights.”
ARTICLE 237. [231] Registry of Unions and File of Collective Bargaining Agreements. 179 — The Bureau shall
keep a registry of legitimate labor organizations.
Within thirty (30) days from the execution of a Collective Bargaining Agreement, the parties shall submit copies of
the same directly to the Bureau or the Regional Offices of the Department of Labor and Employment for registration
accompanied with verified proofs of its posting in two conspicuous places in the place of work and ratification by the
majority of all the workers in the bargaining unit. The Bureau or Regional Offices shall act upon the application for
registration of such Collective Bargaining Agreement within five (5) calendar days from receipt thereof. The Regional
Offices shall furnish the Bureau with a copy of the Collective Bargaining Agreement within five (5) days from its
submission.
The Bureau or Regional Office shall assess the employer for every Collective Bargaining Agreement a registration
fee of not less than one thousand pesos (P1,000.00) or in any other amount as may be deemed appropriate and
necessary by the Secretary of Labor and Employment for the effective and efficient administration of the Voluntary
Arbitration Program. Any amount collected under this provision shall accrue to the Special Voluntary Arbitration
Fund.
The Bureau shall also maintain a file, and shall undertake or assist in the publication of all final decisions, orders and
awards of the Secretary of Labor and Employment, Regional Directors and the Commission.
TITLE IV
Labor Organizations
CHAPTER I
Registration and Cancellation
ARTICLE 240. [234] Requirements of Registration. 182 — A federation, national union or industry or trade union
center or an independent union shall acquire legal personality and shall be entitled to the rights and privileges granted
by law to legitimate labor organizations upon issuance of the certificate of registration based on the following
requirements:
(a) Fifty pesos (P50.00) registration fee;
(b) The names of its officers, their addresses, the principal address of the labor organization, the minutes of the
organizational meetings and the list of the workers who participated in such meetings;
(c) In case the applicant is an independent union, the names of all its members comprising at least twenty percent
(20%) of all the employees in the bargaining unit where it seeks to operate;
(d) If the applicant union has been in existence for one or more years, copies of its annual financial reports; and
(e) Four copies of the constitution and by-laws of the applicant union, minutes of its adoption or ratification,
and the list of the members who participated in it.
ARTICLE 241. [234-A] Chartering and Creation of a Local Chapter. 183 — 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. The chapter shall acquire legal personality only for purposes of filing a petition for certification election from
the date it was issued a charter certificate.
The chapter shall be entitled to all other rights and privileges of a legitimate labor organization only upon the
submission of the following documents in addition to its charter certificate:
(a) The names of the chapter's officers, their addresses, and the principal office of the chapter; and
(b) The chapter's constitution and by-laws: Provided, That where the chapter's constitution and by-laws are the same
as that of the federation or the national union, this fact shall be indicated accordingly.
The additional supporting requirements shall be certified under oath by the secretary or treasurer of the chapter and
attested by its president.
ARTICLE 242. [235] Action on Application. — The Bureau shall act on all applications for registration within thirty
(30) days from filing.
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All requisite documents and papers shall be certified under oath by the secretary or the treasurer of the organization,
as the case may be, and attested to by its president.
ARTICLE 243. [236] Denial of Registration; Appeal. — The decision of the Labor Relations Division in the regional
office denying registration may be appealed by the applicant union to the Bureau within ten (10) days from receipt of
notice thereof.
ARTICLE 244. [237] Additional Requirements for Federations or National Unions. — Subject to Article 238, 184 if
the applicant for registration is a federation or a national union, it shall, in addition to the requirements of the preceding
Articles, submit the following:
Proof of the affiliation of at least ten (10) locals or chapters, each of which must be a duly recognized collective
bargaining agent in the establishment or industry in which it operates, supporting the registration of such applicant
federation or national union; and
The names and addresses of the companies where the locals or chapters operate and the list of all the members in each
company involved.
ARTICLE 245. [238] Cancellation of Registration. 185 — The certificate of registration of any legitimate labor
organization, whether national or local, may be cancelled by the Bureau, after due hearing, only on the grounds
specified in Article 239 hereof. 186
ARTICLE 246. [238-A] Effect of a Petition for Cancellation of Registration. 187 — A petition for cancellation of
union registration shall not suspend the proceedings for certification election nor shall it prevent the filing of a petition
for certification election.
In case of cancellation, nothing herein shall restrict the right of the union to seek just and equitable remedies in the
appropriate courts.
ARTICLE 247. [239] Grounds for Cancellation of Union Registration. 188 — The following may constitute grounds
for cancellation of union registration:
(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 statements or fraud in connection with the election of officers, minutes of the
election of officers, and the list of voters;
(c) Voluntary dissolution by the members.
ARTICLE 248. [239-A] Voluntary Cancellation of Registration. 189 — The registration of a legitimate labor
organization may be cancelled by the organization itself: Provided, That at least two-thirds of its general membership
votes, in a meeting duly called for that purpose to dissolve the organization: Provided, further, That an application to
cancel registration is thereafter submitted by the board of the organization, attested to by the president thereof.
ARTICLE 249. [240] Equity of the Incumbent. 190 — All existing federations and national unions which meet the
qualifications of a legitimate labor organization and none of the grounds for cancellation shall continue to maintain
their existing affiliates regardless of the nature of the industry and the location of the affiliates.
CHAPTER II
Rights and Conditions of Membership
ARTICLE 250. [241] Rights and Conditions of Membership in a Labor Organization. 191 — The following are the
rights and conditions of membership in a labor organization:
(a) No arbitrary or excessive initiation fees shall be required of the members of a legitimate labor organization
nor shall arbitrary, excessive or oppressive fine and forfeiture be imposed;
(b) The members shall be entitled to full and detailed reports from their officers and representatives of all
financial transactions as provided for in the constitution and by-laws of the organization;
(c) The members shall directly elect their officers in the local union, as well as their national officers in the
national union or federation to which they or their local union is affiliated, by secret ballot at intervals of five
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duly called for the purpose. The secretary of the organization shall record the minutes of the meeting
including the list of all members present, the votes cast, the purpose of the special assessment or fees and the
recipient of such assessment or fees. The record shall be attested to by the president.
(o) Other than for mandatory activities under the Code, no special assessments, attorney's fees, negotiation fees
or any other extraordinary fees may be checked off from any amount due to an employee without an
individual written authorization duly signed by the employee. The authorization should specifically state the
amount, purpose and beneficiary of the deduction; and
(p) It shall be the duty of any labor organization and its officers to inform its members on the provisions of its
constitution and by-laws, collective bargaining agreement, the prevailing labor relations system and all their
rights and obligations under existing labor laws.
For this purpose, registered labor organizations may assess reasonable dues to finance labor relations
seminars and other labor education activities.
Any violation of the above rights and conditions of membership shall be a ground for cancellation of union
registration or expulsion of officers from office, whichever is appropriate. At least thirty percent (30%) of
the members of a union or any member or members specially concerned may report such violation to the
Bureau. The Bureau shall have the power to hear and decide any reported violation to mete the appropriate
penalty.
Criminal and civil liabilities arising from violations of above rights and conditions of membership shall
continue to be under the jurisdiction of ordinary courts.
CHAPTER III
Rights of Legitimate Labor Organizations
ARTICLE 251. [242] Rights of Legitimate Labor Organizations. 192 — A legitimate labor organization shall have
the right:
(a) To act as the representative of its members for the purpose of collective bargaining;
(b) To be certified as the exclusive representative of all the employees in an appropriate bargaining unit for
purposes of collective bargaining;
(c) To be furnished by the employer, upon written request, with its annual audited financial statements, including
the balance sheet and the profit and loss statement, within thirty (30) calendar days from the date of receipt
of the request, after the union has been duly recognized by the employer or certified as the sole and exclusive
bargaining representative of the employees in the bargaining unit, or within sixty (60) calendar days before
the expiration of the existing collective bargaining agreement, or during the collective bargaining
negotiation;
(d) To own property, real or personal, for the use and benefit of the labor organization and its members;
(e) To sue and be sued in its registered name; and
(f) To undertake all other activities designed to benefit the organization and its members, including cooperative,
housing, welfare and other projects not contrary to law.
Notwithstanding any provision of a general or special law to the contrary, the income and the properties of legitimate
labor organizations, including grants, endowments, gifts, donations and contributions they may receive from
fraternal and similar organizations, local or foreign, which are actually, directly and exclusively used for their lawful
purposes, shall be free from taxes, duties and other assessments. The exemptions provided herein may be withdrawn
only by a special law expressly repealing this provision.
ARTICLE 292. [277] Miscellaneous Provisions. 226 — (a) All unions are authorized to collect reasonable
membership fees, union dues, assessments and fines and other contributions for labor education and research, mutual
death and hospitalization benefits, welfare fund, strike fund and credit and cooperative undertakings.
~o~
RULE III
REGISTRATION OF LABOR ORGANIZATIONS
Section 1. Where to file. - Applications for registration of independent labor unions, chartered locals, workers’
associations shall be filed with the Regional Office where the applicant principally operates. It shall be processed by
the Labor Relations Division at the Regional Office in accordance with Sections 2-A, 2-C, and 2-E of this Rule.
Applications for registration of federations, national unions or workers’ associations operating in more than one region
shall be filed with the Bureau or the Regional Offices, but shall be processed by the Bureau in accordance with
Sections 2-B and 2-D of this Rule.
Section 2. Requirements for application. - A. The application for registration of an independent labor union shall be
accompanied by the following documents: 1) the name of the applicant labor union, its principal address, the name of
its officers and their respective addresses, approximate number of employees in the bargaining unit where it seeks to
operate, with a statement that it is not reported as a chartered local of any federation or national union;
2) the minutes of the organizational meeting(s) and the list of employees who participated in the said meeting(s);
3) the name of all its members comprising at least 20% of the employees in the bargaining unit;
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4) the annual financial reports if the applicant has been in existence for one or more years, unless it has not collected
any amount from the members, in which case a statement to this effect shall be included in the application;
5) the applicant’s constitution and by-laws, minutes of its adoption or ratification, and the list of the members who
participated in it. The list of ratifying members shall be dispensed with where the constitution and by-laws was ratified
or adopted during the organizational meeting. In such a case, the factual circumstances of the ratification shall be
recorded in the minutes of the organizational meeting(s).
B. The application for registration of federations and national unions shall be accompanied by the following
documents:
1) a statement indicating the name of the applicant labor union, its principal address, the name of its officers and their
respective addresses;
2) the minutes of the organizational meeting(s) and the list of employees who participated in the said meeting(s);
3) the annual financial reports if the applicant union has been in existence for one or more years, unless it has not
collected any amount from the members, in which case a statement to this effect shall be included in the application;
4) the applicant union’s constitution and by-laws, minutes of its adoption or ratification, and the list of the members
who participated in it. The list of ratifying members shall be dispensed with where the constitution and by-laws was
ratified or adopted during the organizational meeting(s). In such a case, the factual circumstances of the ratification
shall be recorded in the minutes of the organizational meeting(s);
5) the resolution of affiliation of at least ten (10) legitimate labor organizations, whether independent unions or
chartered locals, each of which must be a duly certified or recognized bargaining agent in the establishment where it
seeks to operate; and
6) the name and addresses of the companies where the affiliates operate and the list of all the members in each
company involved.
Labor organizations operating within an identified industry may also apply for registration as a federation or national
union within the specified industry by submitting to the Bureau the same set of documents.
C. The application for registration of a workers’ association shall be accompanied by the following documents:
1) the name of the applicant association, its principal address, the name of its officers and their respective addresses;
2) the minutes of the organizational meeting(s) and the list of members who participated therein;
3) the financial reports of the applicant association if it has been in existence for one or more years, unless it has not
collected any amount from the members, in which case a statement to this effect shall be included in the application;
4) the applicant’s constitution and by-laws to which must be attached the names of ratifying members, the minutes of
adoption or ratification of the constitution and by-laws and the date when ratification was made, unless ratification
was done in the organizational meeting(s), in which case such fact shall be reflected in the minutes of the
organizational meeting(s).
D. Application for registration of a workers’ association operating in more than one region shall be accompanied, in
addition to the requirements in the preceding subsection, by a resolution of membership of each member association,
duly approved by its board of directors.
E. The report of creation of a chartered local shall be accompanied by a charter certificate issued by the federation or
national union indicating the creation or establishment of the chartered local.
(c) The local/chapter’s constitution and by-laws, provided that where the local/chapter’s constitution and
by-laws is the same as that of the federation or national union, this fact shall be indicated accordingly. All
of the foregoing supporting requirements shall be certified under oath by the Secretary or the Treasurer of
the local/chapter and attested by its President.
All chartered locals duly-registered prior to the effectivity of this amendatory issuance shall maintain their
legitimate status, with all rights and obligations appurtenant thereto.
Section 3. Notice of change of name of labor organizations; Where to file. - The notice for change of name of a
registered labor organization shall be filed with the Bureau or the Regional Office where the concerned labor
organization’s certificate of registration or certificate of creation of a chartered local was issued.
Section 4. Requirements for notice of change of name. - The notice for change of name of a labor organization shall
be accompanied by the following documents: (a) proof of approval or ratification of change of name; and (b) the
amended constitution and by-laws. Section 5. Certificate of Registration/Certificate of Creation of Chartered Local
for change of name. - The certificate of registration and the certificate of creation of a chartered local issued to the
labor organization for change of name shall bear the same registration number as the original certificate issued in its
favor and shall indicate the following: (a) the new name of the labor organization; (b) its former name; (c) its office
or business address; and (d) the date when the labor organization acquired legitimate personality as stated in its
original certificate of registration/certificate of creation of chartered local.
Section 6. Report of Affiliation with federations or national unions; Where to file. - The report of affiliation of an
independently registered labor union with a federation or national union shall be filed with the Regional Office that
issued its certificate of registration.
Section 7. Requirements of affiliation. - The report of affiliation of independently registered labor unions with a
federation or national union shall be accompanied by the following documents:
(a) resolution of the labor union’s board of directors approving the affiliation;
(b) minutes of the general membership meeting approving the affiliation;
(c) the total number of members comprising the labor union and the names of members who approved the affiliation;
(d) the certificate of affiliation issued by the federation in favor of the independently registered labor union; and
(e) written notice to the employer concerned if the affiliating union is the incumbent bargaining agent.
Section 8. Notice of Merger/Consolidation of labor organizations; Where to file. - Notice of merger or consolidation
of independent labor unions, chartered locals and workers’ associations shall be filed with and recorded by the
Regional Office that issued the certificate of registration/certificate of creation of chartered local of either the merging
or consolidating labor organization. Notice of merger or consolidation of federations or national unions shall be filed
with and recorded by the Bureau.
Section 9. Requirements of notice of merger. - The notice of merger of labor organizations shall be accompanied by
the following documents: (a) the minutes of merger convention or general membership meeting(s) of all the merging
labor organizations, with the list of their respective members who approved the same; and (b) the amended
constitution and by-laws and minutes of its ratification, unless ratification transpired in the merger convention, which
fact shall be indicated accordingly.
Section 10. Certificate of Registration. - The certificate of registration issued to merged labor organizations shall bear
the registration number of one of the merging labor organizations as agreed upon by the parties to the merger.
The certificate of registration shall indicate the following: (a) the new name of the merged labor organization; (b) the
fact that it is a merger of two or more labor organizations; (c) the name of the labor organizations that were merged;
Page 23 of 64 | 021022
(d) its office or business address; and (e) the date when each of the merging labor organizations acquired legitimate
personality as stated in their respective original certificate of registration.
Section 11. Requirements of notice of consolidation. - The notice of consolidation of labor organizations shall be
accompanied by the following documents:
(a) the minutes of consolidation convention of all the consolidating labor organizations, with the list of their respective
members who approved the same; and
(b) the amended constitution and by-laws, minutes of its ratification transpired in the consolidation convention or in
the same general membership meeting(s), which fact shall be indicated accordingly.
Section 12. Certificate of Registration. - The certificate of registration issued to a consolidated labor organization
shall bear the registration number of one of the consolidating labor organizations as agreed upon by the parties to the
consolidation. The certificate of registration shall indicate the following:
(a) the new name of the consolidated labor organization;
(b) the fact that it is a consolidation of two or more labor organizations;
(c) the name of the labor organizations that were consolidated;
(d) its office or business address; and
(e) the date when each of the consolidating labor organizations acquired legitimate personality as stated in their
respective original certificates of registration.
RULE IV
PROVISIONS COMMON TO THE REGISTRATION OF LABOR ORGANIZATIONS AND WORKERS
ASSOCIATION
Section 1. Attestation requirements. - The application for registration of labor unions and workers’ associations, notice
for change of name, merger, consolidation and affiliation including all the accompanying documents, shall be certified
under oath by its Secretary or Treasurer, as the case may be, and attested to by its President.
Section 2. Payment of registration fee. - A labor union and workers’ association shall be issued a certificate of
registration upon payment of the prescribed registration fee.
Section 3. Accompanying documents. - One (1) original copy and two (2) duplicate copies of all documents
accompanying the application or notice shall be submitted to the Regional Office or the Bureau.
Section 4. Action on the application/notice. - The Regional Office or the Bureau, as the case may be, shall act on all
applications for registration or notice of change of name, affiliation, merger and consolidation within ten (10) days
from receipt either by: (a) approving the application and issuing the certificate of registration/acknowledging the
notice/report; or (b) denying the application/notice for failure of the applicant to comply with the requirements for
registration/notice.
Section 5. Denial of Application/Return of Notice. - Where the documents supporting the application for
registration/notice of change of name, affiliation, merger and consolidation are incomplete or do not contain the
required certification and attestation, the Regional Office or the Bureau shall, within five (5) days from receipt of the
application/notice, notify the applicant/labor organization concerned in writing of the necessary requirements and
complete the same within thirty (30) days from receipt of notice. Where the applicant/labor organization concerned
fails to complete the requirements within the time prescribed, the application for registration shall be denied, or the
notice of change of name, affiliation, merger and consolidation returned, without prejudice to filing a new application
or notice.
Section 6. Form of Denial of Application/Return of Notice; Appeal. - The notice of the Regional Office or the Bureau
denying the application for registration/returning the notice of change of name, affiliation, merger or consolidation
shall be in writing stating in clear terms the reasons for the denial or return. The denial may be appealed to the Bureau
if denial is made by the Regional Office or to the Secretary if denial is made by the Bureau, within ten (10) days from
receipt of such notice, on the ground of grave abuse of discretion or violation of these Rules.
Section 7. Procedure on appeal. - The memorandum of appeal shall be filed with the Regional Office or the Bureau
that issued the denial/return of notice. The memorandum of appeal together with the complete records of the
application for registration/notice of change of name, affiliation, merger or consolidation, shall be transmitted by the
Section 8. Effect of registration. - The labor union or workers’ association shall be deemed registered and vested with
legal personality on the date of issuance of its certificate of registration or certificate of creation of chartered local.
Such legal personality may be questioned only through an independent petition for cancellation of union registration
in accordance with Rule XIV of these Rules, and not by way of collateral attack in petition for certification election
proceedings under Rule VIII.
Section 9. Effect of change of name. - The change of name of a labor organization shall not affect its legal personality.
All the rights and obligations of a labor organization under its old name shall continue to be exercised by the labor
organization under its new name.
Section 10. Effect of merger or consolidation. - Where there is a merger of labor organizations, the legal existence of
the absorbed labor organization(s) ceases, while the legal existence of the absorbing labor organization subsists. All
the rights, interests and obligations of the absorbed labor organizations are transferred to the absorbing organization.
Where there is consolidation, the legal existence of the consolidating labor organizations shall cease and a new labor
organization is created. The newly created labor organization shall acquire all the rights, interests and obligations of
the consolidating labor organizations.
RULE V
REPORTING REQUIREMENTS OF LABOR UNIONS AND WORKERS ASSOCIATIONS
Section 1. Reporting requirements. - It shall be the duty of every legitimate labor unions and workers associations to
submit to the Regional Office or the Bureau which issued its certificate of registration or certificate of creation of
chartered local, as the case may be, two (2) copies of each of the following documents: (a) any amendment to its
constitution and by-laws and the minutes of adoption or ratification of such amendments, within thirty (30) days from
its adoption or ratification;
(b) annual financial reports within thirty (30) days after the close of each fiscal year or calendar year;
(c) updated list of newly-elected officers, together with the appointive officers or agents who are entrusted with the
handling of funds, within thirty (30) days after each regular or special election of officers, or from the occurrence of
any change in the officers of agents of the labor organization or workers association;
(d) updated list of individual members of chartered locals, independent unions and workers’ associations within thirty
(30) days after the close of each fiscal year; and
(e) updated list of its chartered locals and affiliates or member organizations, collective bargaining agreements
executed and their effectivity period, in the case of federations or national unions, within thirty (30) days after the
close of each fiscal year, as well as the updated list of their authorized representatives, agents or signatories in the
different regions of the country.
As understood in these Rules, the fiscal year of a labor organization shall coincide with the calendar year, unless a
different period is prescribed in the constitution and by-laws.
The fiscal year of a labor organization shall coincide with the calendar year unless a different period is
provided in its constitution and by-laws.
Page 25 of 64 | 021022
RULE XIV
CANCELLATION OF REGISTRATION OF LABOR ORGANIZATIONS
Section 1. Where to file. - Subject to the requirements of notice and due process, the registration of any legitimate
independent labor union, chartered local and workers’ association may be cancelled by the Regional Director, or in
the case of federations, national or industry unions and trade union centers, by the Bureau Director, upon the filing of
an independent complaint or petition for cancellation.
In the case of federations, national or industry unions and trade union centers, the Bureau Director may
cancel the registration upon the filing of a petition for cancellation or application for voluntary dissolution
lN THE BUREAU OF LABOR RELATIONS.
Section 2. Who may file. - Any party-in-interest may commence a petition for cancellation of registration, except in
actions involving violations of Article 241, which can only be commenced by members of the labor organization
concerned.
Section 3. Grounds for cancellation. - The following shall constitute grounds for cancellation of registration of labor
organizations:
(a) misrepresentation, false statement or fraud in connection with the adoption or ratification of the constitution and
bylaws or amendments thereto, the minutes of ratification, the list of members who took part in the ratification of the
constitution and by-laws or amendments thereto, the minutes of ratification, the list of members who took part in the
ratification;
(b) failure to submit the documents mentioned in the preceding paragraph within thirty (30) days from adoption or
ratification of the constitution and by-laws or amendments thereto;
(c) misrepresentation, false statements or fraud in connection with the election of officers, minutes of the election of
officers, the list of voters, failure to submit these documents together with the list of the newly elected or appointed
officers and their postal address within thirty (30) days from election;
(d) failure to submit the annual financial report to the Bureau within thirty (30) days after the close of every fiscal
year and misrepresentation, false entries or fraud in the preparation of the financial report;
(e) acting as a labor contractor or engaging in the “cabo” system, or otherwise engaging in any activity prohibited by
law;
(f) entering into collective bargaining agreements which provide for terms and conditions of employment below
minimum standards established by law;
(g) commission of any of the acts enumerated under Article 241 of the Labor Code; provided that no petition for
cancellation based on this ground may be granted unless supported by at least thirty (30%) percent of all the members
of the respondent labor organization;
(h) asking for or accepting attorney’s fees or negotiation fees from the employer;
(i) other than for mandatory activities under the Labor Code, checking off special assessments or any other fees
without duly signed individual written authorizations of the members;
(j) failure to submit list of individual members to the Bureau once a year or whenever required by the Bureau;
(k) failure to comply with the requirements of registration prescribed under Rules III and IV.
Section 4. Action on the petition. - The petition shall be resolved by the Regional Director in accordance with Rule
XI, unless the petition is based on paragraphs (d) and (j) of the foregoing section or non-compliance with the labor
organization’s reportorial obligations, in which case the petition shall be acted upon pursuant to the following Rule.
(Renumbered by DO No. 40-F-03, s. 2008)
A new provision is hereby added as Section 4 under Rule XIV, to read as:
SECTION 4. VOLUNTARY CANCELLATION OF REGISTRATION: HOW MADE. - A LEGITIMATE LABOR
ORGANIZATION MAY CANCEL ITS REGISTRATION PROVIDED AT LEAST TWO THIRDS (2/3) OF ITS
GENERAL MEMBERSHIP VOTES TO DISSOLVE THE ORGANIZATION IN A MEETING DULY CALLED
FOR THAT PURPOSE AND AN APPLICATION TO CANCEL ITS REGISTRADON IS THEREAFTER
SUBMITTED BY THE BOARD OF THE ORGANIZATION TO THE REGIONAL/BUREAU DIRECTOR~ AS
THE CASE MAY BE. THE APPLICATION SHALL BE ATTESTED TO BY THE PRESIDENT OF THE
ORGANIZATION.
A new provision is hereby added as Section 6 under Rule XIV, to read as:
SECTION 6. PROHIBITED GROUNDS FOR CANCELLATION OF REGISTRATION. - THE JNCLUSION AS
UNION MEMBERS OF EMPLOYEES WHO ARE OUTSIDE THE BARGAINING UNIT SHALL NOT BE A
GROUND TO CANCEL THE UNION REGISTRATION. THE INELIGIBLE EMPLOYEES ARE
AUTOMATICALLY DEEMED REMOVED FROM THE LIST OF MEMBERSHIP OF THE UNION. THE
AFFILIATION OF THE RANK-AND-FILE AND SUPERVISORY UNIONS OPERATING WITHIN THE SAME
ESTABLISHMENT TO THE SAME FEDERATION OR NATIONAL UNION SHALL NOT BE A GROUND TO
CANCEL THE REGISTRATION OF EITHER UNION."
RULE XV
CANCELLATION OF REGISTRATION OF LABOR ORGANIZATIONS DUE TO NON-COMPLIANCE WITH
THE REPORTORIAL REQUIREMENTS (Re-titled by DO No. 40-F-03, s. 2008)
Section 1. When proper. - Where a registered labor organization in the private sector failed to submit the reports
required under Rule V for five (5) consecutive years despite notices for compliance sent by the Labor Relations
Division or the Bureau, the latter may cause the institution of the administrative process for cancellation of its
registration, upon its own initiative or upon complaint filed by any party-in-interest.
Section 2. Procedure. - The Labor Relations Division of the Regional Office shall make a report of the labor
organization’s noncompliance and submit the same to the Bureau for verification with its records. The Bureau shall
send by registered mail with return card to the labor organization concerned, a notice for compliance indicating the
documents it failed to submit and the corresponding period in which they were required, with notice to comply with
the said reportorial requirements and to submit proof thereof to the Bureau within ten (10) days from receipt thereof.
Where no response is received by the Bureau within thirty (30) days from the release of the first notice, another notice
for compliance shall be made by the Bureau, with warning that failure on its part to comply with the reportorial
requirements within the time specified shall cause the continuation of the proceedings for the administrative
cancellation of its registration.
Section 3. Publication of notice of cancellation of registration. - Where no response is again received by the Bureau
within thirty (30) days from release of the second notice, the Bureau shall cause the publication of the notice of
Page 27 of 64 | 021022
cancellation of registration of the labor organization in two (2) newspapers of general circulation. The Bureau may
conduct an investigation within the employer’s premises and at the labor organization’s last known address to verify
the latter’s existence.
Section 4. Cancellation of registration. - Where no response is received by the Bureau within thirty (30) days from
date of publication, or where the Bureau has verified the dissolution of the labor organization, it shall order the
cancellation of registration of the labor organization and cause its de-listing from the roster of legitimate labor
organizations.
Section 5. Conditions for administrative cancellation of certificate of registration. No registration of labor organization
shall be cancelled administratively by the Bureau due to noncompliance with the reportorial requirements unless:
(a) non-compliance is for a continuous period of five (5) years;
(b) the procedures laid down in this Rule were complied with; and (c) the labor organization concerned has not
responded to any of the notices sent by the Bureau, or its notices were returned unclaimed.
SECTION 1. NATIONAL REGISTRY. - THE BUREAU SHALL BE THE NATIONAL REGISTRY OF LABOR
ORGANIZATIONS AND COLLECTIVE BARGAINING AGREEMENTS. AS SUCH IT SHALL:
(a) MAINTAIN A NATIONAL REGISTRY;
(b) WITIIIN THE MONTH OF MARCH FOLLOWING THE END OF THE CALENDAR YEAR,
PUBLISH IN TI-IE DEPARTMENT OF LABOR AND EMPLOYMENT WEBSITE TI-IE LISTS OF
LABOR ORGANIZATIONSA ND FEDERATIONS WHICH HAV E COMPLIED WITH THE
REPORTORIAL REQUIREMENTS OF RULE V AND DELINQUENT LABOR ORGANIZATIONS;
(c) PUBLISH A LIST OF OFFICERS OF LABOR ORGANIZATIONS WITII CRIMINAL CONVICTION
BY FINAL JUDGMENT; AND
(d) VERIFY THE EXISTENCE OF A REGISTERED LABOR ORGANIZATION WITH NO
REGISTERED COLLECTIVE BARGAINING AGREEMENT AND WHICH HAS NOT BEEN
COMPLYING WITH THE REPORTORIAL REQUIREMENTS FOR AT LEAST FIVE YEARS. THE
VERIFICATION SHALL OBSERVE THE FOLLOWING PROCESS:
1) The Regional Office shall make a report of the labor organization's non-compliance and submit the same to the
Bureau for verification. The Bureau shall send by registered mail with return card to the labor organization concerned,
a notice for compliance indicating the documents it failed to submit and the corresponding period in which they were
required, with notice to comply with the said reportorial requirements and to submit proof thereof to the Bureau within
ten (10) days from receipt thereof. • Where no response is received by the Bureau within thirty (30) days from the
SERVICE of the first notice, IT SHALL SEND another notice for compliance, with warning that failure on its part to
comply with the reportorial requirements within the time specified shall cause ITS PUBLICATION AS A
NON~EXISTING LABOR ORGANIZATION IN THE DOLE WEBSITE.
2) Where no response is received by the Bureau within thirty (30) days from SERVICE of the second notice, the
Bureau shall PUBLISH the notice of NON-EXISTENCE OF THE LABOR ORGANIZATION/S IN THE DOLE
WEBSITE.
3) Where no response is received by the Bureau within thirty (30) days from date of publication, or where the Bureau
has verified the dissolution of the labor organization, it shall DELIST the labor organization from the roster of
legitimate labor organizations.
~o~
ARTICLE 240. [234] Requirements of Registration. 182 — A federation, national union or industry or trade union
center or an independent union shall acquire legal personality and shall be entitled to the rights and privileges granted
by law to legitimate labor organizations upon issuance of the certificate of registration based on the following
requirements:
(a) Fifty pesos (P50.00) registration fee;
(b) The names of its officers, their addresses, the principal address of the labor organization, the minutes of the
organizational meetings and the list of the workers who participated in such meetings;
(c) In case the applicant is an independent union, the names of all its members comprising at least twenty percent
(20%) of all the employees in the bargaining unit where it seeks to operate;
(d) If the applicant union has been in existence for one or more years, copies of its annual financial reports; and
ARTICLE 241. [234-A] Chartering and Creation of a Local Chapter. 183 — 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. The chapter shall acquire legal personality only for purposes of filing a petition for certification election from
the date it was issued a charter certificate.
The chapter shall be entitled to all other rights and privileges of a legitimate labor organization only upon the
submission of the following documents in addition to its charter certificate:
(a) The names of the chapter's officers, their addresses, and the principal office of the chapter; and
(b) The chapter's constitution and by-laws: Provided, That where the chapter's constitution and by-laws are the same
as that of the federation or the national union, this fact shall be indicated accordingly.
The additional supporting requirements shall be certified under oath by the secretary or treasurer of the chapter and
attested by its president.
ARTICLE 245. [238] Cancellation of Registration. 185 — The certificate of registration of any legitimate labor
organization, whether national or local, may be cancelled by the Bureau, after due hearing, only on the grounds
specified in Article 239 hereof. 186
ARTICLE 246. [238-A] Effect of a Petition for Cancellation of Registration. 187 — A petition for cancellation of
union registration shall not suspend the proceedings for certification election nor shall it prevent the filing of a petition
for certification election.
In case of cancellation, nothing herein shall restrict the right of the union to seek just and equitable remedies in the
appropriate courts.
ARTICLE 247. [239] Grounds for Cancellation of Union Registration. 188 — The following may constitute grounds
for cancellation of union registration:
(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 statements or fraud in connection with the election of officers, minutes of the
election of officers, and the list of voters;
(c) Voluntary dissolution by the members.
ARTICLE 248. [239-A] Voluntary Cancellation of Registration. 189 — The registration of a legitimate labor
organization may be cancelled by the organization itself: Provided, That at least two-thirds of its general membership
votes, in a meeting duly called for that purpose to dissolve the organization: Provided, further, That an application to
cancel registration is thereafter submitted by the board of the organization, attested to by the president thereof.
ARTICLE 252. [242-A] Reportorial Requirements. 193 — The following are documents required to be submitted to
the Bureau by the legitimate labor organization concerned:
(a) Its constitution and by-laws, or amendments thereto, the minutes of ratification, and the list of members who took
part in the ratification of the constitution and by-laws within thirty (30) days from adoption or ratification of the
constitution and by-laws or amendments thereto;
(b) Its list of officers, minutes of the election of officers, and list of voters within thirty (30) days from election;
(c) Its annual financial report within thirty (30) days after the close of every fiscal year; and (d) Its list of members at
least once a year or whenever required by the Bureau.
Failure to comply with the above requirements shall not be a ground for cancellation of union registration but shall
subject the erring officers or members to suspension, expulsion from membership, or any appropriate penalty.
Cases:
San Miguel SMCEU-PTGWO is the incumbent Registration requirements are intended
Corporation bargaining agent of the regular monthly- to afford a measure of protection to
Employees paid rank and file employees of the three unsuspecting employees who may be
Union- divisions of SMC (SMCSU, SMBP, and lured into joining unscrupulous or fly-
Philippine SMPP). It had been the certified by-night unions whose sole purpose is to
Transport and bargaining agent from 1987 to 1997.
Page 29 of 64 | 021022
General control union funds or use the labor
Workers SMPPEU–PDMP is registered as a organization for illegitimate ends.
Organization chapter of Pambansang Diwa ng
(SMCEU- Manggagawang Pilipino (PDMP). It filed What is the governing law? D.O. No. 9.
PTGWO) v. with the Med-Arbiter three separate The procedure for registration of a local
San Miguel petitions for certification election to or chapter of a labor organization is
Packaging represent SMPP, SMCSU, and SMBP. provided in Book V of the Implementing
Products The three petitions were dismissed on Rules of the Labor Code, as amended by
Employees the ground that the separate petitions Department Order No. 9 which took
Union- fragmented a single bargaining unit.
Pambansang effect on 21 June 1997, and again by
Diwa Ng Department Order No. 40 dated 17
Manggagawang SMCEU-PTGWO filed with the February 2003. The Implementing Rules
Pilipino DOLE-NCR a petition seeking the as amended by D.O. No. 9 should
(SMPPEU- cancellation of SMPPEU–PDMP’s govern the resolution of the petition at
PDMP), registration, accusing it of committing bar since respondent’s petition for
September 12, fraud and falsification and non- certification election was filed with the
2007 compliance with registration BLR in 1999; and that of petitioner on
requirements in obtaining its certificate 17 August 1999.
of registration. SMCEU-PTGWO also
claimed that PDMP is not a legitimate The applicable Implementing Rules
labor organization but a trade union enunciates a two-fold procedure for the
center, hence, it cannot directly create a creation of a chapter or a local. The first
local or chapter. involves the affiliation of an independent
union with a federation or national union
The DOLE-NCR Regional Director or industry union. The second, finding
dismissed the allegations but found that application in the instant petition,
SMPPEU–PDMP did not comply with involves the direct creation of a local or
the 20% membership requirement and, a chapter through the process of
thus, ordered the cancellation of its chartering.
certificate of registration.
When is a local/chapter given legal personality?
On appeal, the BLR reversed the The filing of the complete documentary
Regional Director’s ruling that the 20% requirements is the operative act that vests legal
membership is a requirement for personality upon a local/chapter.
respondent to attain legal personality as The Implementing Rules stipulate that a
a labor organization. Thereafter, local or chapter may be directly created
SMCEU-PTGWO filed a motion for by a federation or national union. A duly
reconsideration which was denied. constituted local or chapter created in
accordance with the foregoing shall
Thus, SMCEU-PTGWO filed a petition acquire legal personality from the date of
for certiorari under Rule 65 which was filing of the complete documents with
dismissed by the CA. The CA also the BLR. The issuance of the certificate
denied the motion for reconsideration. of registration by the BLR or the DOLE
Hence, this petition for review on Regional Office is not the operative act
certiorari under Rule 45. that vests legal personality upon a local
or a chapter under Department Order
No. 9. Such legal personality is acquired
SMCEU-PTGWO maintains that from the filing of the complete
SMPPEU–PDMP failed to meet this
20% membership requirement since it
Page 30 of 64 | Yong | Labor 2
based its membership on the number of documentary requirements enumerated
employees of a single division only, in Section 1, Rule VI.
namely, the SMPP. (a) charter certificate issued by the
federation or national union indicating
the creation or establishment of the
local/chapter;
(b) names of the local/chapter’s
officers, their addresses, and the
principal office of the local/chapter;
and
(c) local/chapter’s constitution and by-
laws)
Page 31 of 64 | 021022
registration is cancelled or revoked in an
independent action for cancellation.
Page 35 of 64 | 021022
The DOLE Regional Director ordered showing 26 employees and the list of union
the cancellation of the registration of the members showing 30. The difference is due
to the additional four members admitted
Union. two days after the organizational meeting as
attested to by their duly accomplished
Union Membership forms.
On appeal, the OIC of the BLR affirmed
4. It is enough to establish the fact of
the DOLE Regional Director. admission of the four that they had duly
signified such desire by accomplishing the
membership form.
In the motion for reconsideration, the 5. The difference between the number of 26
BLR Director set aside the order of the members, who ratified the Union’s
OIC, ordered that the Union shall constitution and by-laws, and the 25
remain in the roster of legitimate members shown in the certification of the
organizations, and denied the motion for Union secretary as having ratified it, is, as
shown by the factual antecedents, a
reconsideration of Eagle Ridge. typographical error.
6. The probative value of the affidavits of
retraction issued by six union members
The CA denied the petition for certiorari cannot overcome those of the supporting
and motion for reconsideration. Hence, affidavits of 12 union members and their
this petition for certiorari under Rule 65. counsel as to the proceedings and the
conduct of the organizational meeting on
December 6, 2005. The six affiants of the
affidavits of retraction were not presented in
a hearing before the Hearing Officer
(DOLE Regional Director), as required
under the Rules Implementing Book V of
the Labor Code covering Labor Relations.
Sec. 11, Rule XI of DO 40-03 specifically
requires: Any affidavit submitted without
the re-affirmation of the affiant during a
scheduled hearing shall not be admitted in
evidence[.]