i. Jurisdiction

Jurisdiction of the Secretary of Labor and Employment (SOLE)

If the BLR Director inhibits himself in a case falling under the jurisdiction of the BLR, can be appealed to the SOLE. Additionally, the ff matters are under the SOLE’s jurisdiction:

• Art. 128 (a) – Jurisdiction over inspections & investigations (can also be exercised by the RD)
• Art. 128 (b) – Compliance orders for labor standards, including violations committed while EER existed even if it has since ended
• XPN: If ER contests the findings of the labor employment & enforcement officer & raises issues supported by documentary proofs which were not considered in the course of inspection (then the case will be with LA)
• NOTE: This power is often exercised through RD (see RD cases)
• There is no ceiling for the amount in this case.
• Jurisdiction over work stoppage orders when non-compliance with the law or IRRs poses grave & imminent danger to health & safety or workers in the workplace
• Within 24 hours: Hearing to decide if suspension order should be lifted
• If violation is ER’s fault: ER will pay wages during stoppage period
• Jurisdiction of SOLE for strikes or lockouts that involve national interest cases (SOLE may assume jurisdiction or certify) – regardless of decision, CA.
• Appeals from BLR decisions, where BLR exercises original jurisdiction.

Jurisdiction to hear cases over company-owned property

Both the LA and the NLRC have jurisdiction to hear cases over company-owned property although the LA has primary jurisdiction.

In Yupangco Cotton vs. CA (G.R. 126322, 2002), the Court held a third party whose property has been levied upon by a sheriff to enforce a decision against a judgment debtor is afforded with several alternative remedies to protect its interests. The third party may avail himself of alternative remedies cumulatively, and one will not preclude the third party from availing himself of the other alternative remedies in the event he failed in the remedy first availed of.

Thus, a third party may avail himself of the following alternative remedies:

• File a third party claim with the sheriff of the Labor Arbiter, and
• If the third party claim is denied, the third party may appeal the denial to the NLRC.

Even if a third party claim was denied, a third party may still file a proper action with a competent court to recover ownership of the property illegally seized by the sheriff.

Termination of Corporate Officers

The LA has jurisdiction over the termination of corporate employees.

The RTC acting as a Special Commercial Court has jurisdiction over termination of corporate officers.

Jurisdiction of Criminal Charge of ULP

The criminal charge is tried by the regular court with jurisdiction under the applicable penalty-based rules; the MTC and RTC do not have concurrent trial jurisdiction. Only substantial evidence is required in the labor case while proof beyond reasonable doubt is need in the criminal prosecution. Recovery of civil liability in the administrative proceedings shall bar recovery under the Civil Code.

LA Does NOT Have Jurisdiction Over

• Intra-corporate disputes
• Intra-corporate disputes concerning a corporate officer’s removal from office belong to the RTC acting as a Special Commercial Court under PD 902-A, Sec. 5, as transferred by RA 8799, Sec. 5.2; an officer’s distinct employment claims may fall within labor jurisdiction when an employer–employee relationship is established.
• Cases involving GOCCs with original charters;
• Cases involving entities immune from suit (except when the entity performs proprietary functions);
• Local water districts (since they are quasi-public corporations);
• Independent tort actions belong to the regular courts; the Labor Arbiter has jurisdiction over damages claims arising from the employer–employee relationship and connected with disputes within the Arbiter’s jurisdiction under Labor Code, Art. 224 [217](a)(4);
• Claim of a seaman for damages is under torts (regular court has jurisdiction). (Tolosa v. NLRC, G.R. No. 149578, 2003)

Money Claims: LA vs. VA’s Jurisdiction

• Money claims arose from EER; and
• Money claims arose from law or contracts other than a CBA

NOTE: EER is a jurisdictional requisite, absent of which, the NLRC has no jurisdiction to hear and decide the case. (Hawaiian-Philippine Company v. Gulmatico, G.R. No. 106231, 1994)

Remedy where no EER exists

Where no employer-employee relation exists between the parties and no issue is involved which may be resolved by reference to the Labor Code, other labor statutes, or any collective bargaining agreement, the regular courts have jurisdiction, allocated between the first-level courts and the RTC under the applicable rules.

The RTC has jurisdiction over the claim of an independent contractor to adjust the contractor’s fee. (Urbanes v. Secretary of Labor, G.R. No. 122791, 2003)

Criminal Liability

The regular courts shall have jurisdiction over any criminal action under Art. 272 of the Labor Code, but subject to the required clearance from DOLE on cases arising out of or related to a labor dispute pursuant to DOJ Circular No. 15 (1982), and Circular No. 9 (1986)