a. Mandatory Conciliation-Mediation (RA 10396)

Mandatory Conciliation-Mediation (RA 10396)

Concept

RA 10396 makes conciliation-mediation mandatory for issues arising from labor and employment, subject to the exceptions stated in the amended Labor Code provision. The law describes conciliation-mediation as a voluntary mode of dispute settlement, but requires covered issues to undergo the process before the labor arbiter or appropriate DOLE agency or office entertains the case. The parties need not remain in the process until they reach an agreement: either or both may pre-terminate it and request referral or endorsement. (Rep. Act No. 10396 (amending Art. 228))¹ (Preamble, Rep. Act No. 10396)²

Governing provisions

RA 10396 amended Article 228 of the Labor Code. Paragraph (a) states the general requirement of mandatory conciliation-mediation and limits the cases that the labor arbiter or the DOLE agency or office with jurisdiction may entertain. Paragraph (b) gives the parties the option to pre-terminate the proceedings and specifies where unresolved issues may go next. (Rep. Act No. 10396 (amending Art. 228))¹

Requisites / Rules

• Coverage: the general rule applies to all issues arising from labor and employment, subject to the stated exceptions. The provision speaks in terms of issues, not merely the label given to a dispute. (Rep. Act No. 10396 (amending Art. 228))¹
• Entry to the proper forum: the labor arbiter or appropriate DOLE agency or office having jurisdiction shall entertain only cases endorsed or referred by the duly authorized officer. The endorsement or referral does not itself identify which forum has jurisdiction; the provision refers to the forum that has jurisdiction over the dispute. (Rep. Act No. 10396 (amending Art. 228))¹
• Pre-termination: any one party, or both parties, may pre-terminate conciliation-mediation and request referral or endorsement to the appropriate DOLE agency or office with jurisdiction. Agreement of both parties is not required for this step. (Rep. Act No. 10396 (amending Art. 228))¹
• Voluntary arbitration: unresolved issues may instead be referred to voluntary arbitration if both parties agree. Unlike pre-termination, this route expressly depends on mutual agreement. (Rep. Act No. 10396 (amending Art. 228))¹

Distinctions

Distinguish the mandatory submission of covered issues to conciliation-mediation from an obligation to settle. Article 228 provides a route out of the proceedings at the instance of any or both parties. Also distinguish a request for referral or endorsement to the agency or office with jurisdiction from referral of unresolved issues to voluntary arbitration: the latter requires both parties’ agreement. (Rep. Act No. 10396 (amending Art. 228))¹

Key doctrines

The operative sequence is conciliation-mediation for covered issues, followed, when requested upon pre-termination, by referral or endorsement to the forum with jurisdiction. The receiving labor arbiter or DOLE agency or office is directed to entertain only duly endorsed or referred cases. The provision separately preserves the parties’ agreed choice to submit unresolved issues to voluntary arbitration. (Rep. Act No. 10396 (amending Art. 228))¹

Exceptions

Article 228(a) expressly excepts matters provided for in Title VII-A, Book V of the Labor Code, as amended, and matters that the Secretary of Labor and Employment may except. The supplied provision does not enumerate the particular matters falling within either exception. (Rep. Act No. 10396 (amending Art. 228))¹

Bar tip

Ask first whether the labor issue is excepted; if not, identify the duly authorized officer’s endorsement or referral. Remember: either party may pre-terminate, but voluntary arbitration requires both parties’ agreement. (Rep. Act No. 10396 (amending Art. 228))¹