CHAPTER
I
Organization of the Court
Section 1. The Judge: his appointment, qualifications, compensation,
tenure. — There is hereby created a Court of Industrial Relations,
which shall have jurisdiction over the entire Philippines, to consider,
investigate, decide, and settle any question, matter, controversy or
dispute arising between, and/or affecting, employers and employees or
laborers, and landlords and tenants or farm-laborers, and regulate the
relations between them, subject to, and in accordance with, the
provisions of this Act. The Court shall keep a record of all its
proceedings and shall be presided over by-a Judge to be appointed by
the President of the Philippines with the consent of the Commission on
Appointments of the National Assembly. The Judge of the Court shall
hold office during good behavior until he reaches the age of seventy
years,-or becomes incapacitated to discharge the duties of his office
His qualifications shall be the same as those provided in the
Constitution for members of the Supreme Court and he shall receive an
annual compensation of ten thousand pesos and shall be entitled to
traveling expenses and per diems when performing official duties
outside of the City of Manila. The Department of Justice shall have
executive supervision over the Court.
Section 2. The oath of the judge. — Before entering
upon the discharge of the duties of his office, the Judge of the Court
shall take and subscribe an oath of office before an official
authorized by law to administer oaths, wherein he shall declare, in
addition to the matters prescribed in Sec. 23 of the Administrative
Code and in the Constitution of the Philippines, that he shall
faithfully and impartially perform the duties of his office, and that,
except in the discharge of his duties, he will not disclose to any
person any evidence or other matter brought before the Court.
Section 3. The Clerk of the Court; other personnel. —
The judge of the Court shall appoint and fix the compensation of the
Clerk of the Court, and of such other subject, employees, and technical
staff as may be necessary, subject to the Civil Service Laws, and
subject to the approval of the Secretary of Justice: Provided, however,
That the maximum yearly salary of the Clerk of the Court shall be five
thousand pesos.
CHAPTER II
Powers and Duties of the Court
Section 4. Strikes and lockouts. — The Court shall
take cognizance for purposes of prevention, arbitration, decision and
settlement, of any industrial or agricultural dispute causing or likely
to cause a strike or lockout, arising from differences as regards
wages, shares or compensation, hours of labor or conditions of tenancy
or employment, between employers and employees or laborers and between
landlords and tenants or farm-laborers, provided that the number of
employees, laborers or tenants or farm-laborers involved exceeds
thirty, and such industrial or agricultural dispute is submitted to the
Court by the Secretary of Labor, or by any or both of the parties to
the controversy and certified by the Secretary of Labor as existing and
proper to be dealt with by the Court for the sake of public interest.
In all such cases, the Secretary of Labor or the party or parties
submitting the disputes, shall clearly and specifically state in
writing the questions to be decided. Upon the submission of such a
controversy or question by the Secretary of Labor, his intervention
therein as authorized by law, shall cease.
The Court shall, before hearing the dispute and in the course of such
hearing, endeavor to reconcile the parties and induce them to settle
the dispute by amicable agreement. If any agreement as to the whole or
any part of the dispute is arrived at by the parties, a memorandum of
its terms shall be made in writing, signed and acknowledged by the
parties thereto before the Judge of the Court or any official acting in
his behalf and authorized to administer oaths or acknowledgments, or,
before a notary public. The memorandum shall be filed in the office of
the Clerk of the Court, and, unless otherwise ordered by the Court,
shall, as between the parties to the agreement, have the same effect,
and be deemed to be, a decision or award.
Section 5. Minimum wage and maximum "canon" or rental.
— Whenever conditions in a given industry or in a given locality so
warrant, and in the interest of public welfare and for the promotion of
industrial peace and progress, the President of the Philippines shall
direct the Court of Industrial Relations to investigate and study all
pertinent facts related to the industry concerned or to the industries
in a designated locality, with a view to determining the necessity and
fairness of fixing and adopting for such industry or locality a minimum
wage or share of laborers or tenants, or a maximum "canon" or rental to
be paid by the "inquilinos" or tenants or lessees to landowners.
In order to determine the necessity and fairness of adopting such
measures, and in order to arrive at a proper, just, and reasonable
minimum wage or share or maximum "canon" or rental, the Court shall
make a careful examination of the amount of capital invested in the
industry or industries concerned, insurance and transportation, market
prices, benefits or gains derived or losses suffered or expected, wages
and shares as well as other income of laborers and tenants, minimum
cost of living and labor conditions in general, and such other factors
and circumstances as may, in its opinion, be necessary to fairly and
adequately accomplish the purpose of the investigation.
After such an examination, and after the Court is satisfied of the
necessity and fairness of fixing and adopting a minimum wage or share
or maximum "canon" or rental for such locality or industry, it shall
tentatively fix such minimum wage or share or maximum "canon" or rental
as would give the workingmen a just compensation for their labor and an
adequate income to meet the essential necessities of civilized life,
and at the same time allow the capital a fair return on its investment.
When determining a minimum wage or share for laborers and tenants
engaged in a given industry, the Court may, in its discretion, taking
into account the conditions prevailing in the different localities
where such industry is carried on, fix different minimum wages or
shares, according to localities or fix different minimum wages or
shares according to the industries existing in that locality.
A minimum wage or share shall be determined and fixed for laborers
working by the hours, day or month, or by piecework, and for tenants
sharing in the crop or paid measurement unit. Unless otherwise
expressly provided in the order fixing a minimum wage, a minimum wage
in industrial or manufacturing enterprises shall be understood to be
fixed on the basis of eight hours daily labor, and employees and
laborers working in excess of such number of hours shall be entitled to
a proportionate increase in their wages.
The Court may, by so specifically providing in its order fixing a
minimum wage, exclude apprentices from the provisions thereof, but the
number of such apprentices in an industrial firm or labor establishment
shall not exceed twenty per centum of the total number of laborers
employed therein.
Insofar as possible, and when deemed necessary to better carry out the
provisions of this Act, the Court may classify or group the laborers
according to the kind and importance of the work and the amount or
degree of skill, training, experience and knowledge required and shall
fix for each class or group a minimum wage or compensation. In like
manner, it may classify or group the tenants or lessees according to
the kind of work they perform, the terms of the contract with the
landowners and the productivity of the lands or the maximum "canon" or
rental to be paid to the landowners.
After such minimum wage or share or maximum "canon" or rental has been
tentatively fixed by the Court, the Court shall order the publication
of such tentative decision in three successive issues of two newspapers
of general circulation in the locality or localities affected, one
published in English and another in Spanish. All parties not agreeing
to such tentative decision may, within forty-five days after the first
publication, submit to the Court their written objections. With due
consideration to such objections, and after the expiration of the
period given to question such tentative decision, the Court shall adopt
a final minimum wage or share or maximum "canon" or rental, which
shall, with the approval of the President of the Philippines, be
binding upon everyone concerned and shall have the force and effect of
law thirty days after the approval by the President duly promulgated in
an executive Proclamation.
CHAPTER III
Incidental Powers of the Court and Manner
of Conducting Investigations
Section 6. The power to issue subpoena, etc. — The
Judge of the Court shall have the power to administer oaths in matters
connected with the business of the Court; summon the parties to a
controversy before the Court, issue subpoena, require the attendance
and testimony of witnesses and the production of such books, papers,
contracts, records, statements of accounts, agreements and statements
as may be material to a just determination of the matter under
investigation, take testimony in any investigation or hearing conducted
in pursuance of the provisions of this Act, and delegate all such
powers to any board or person who shall act in behalf of the Court. Any
contempt of the orders of the Court in this regard shall be punished as
in other cases of contempt of Courts of First Instance.
Section 7. Where hearings may be held; and how. — The
Court shall have power to conduct hearing in any place for the
determination of a question, matter or controversy within its
jurisdiction, proceed to hear and determine the dispute in the absence
of any party thereto who has been summoned or served with notice to
appear, conduct its proceedings or any part thereof in public or in
private; adjourn its hearings or any part thereof in public or in
private; adjourn its hearings to any time and place, refer any
technical matter or matters of account to an expert and to accept his
report as evidence, direct parties to be joined or stricken out from
the proceedings, correct, amend or waive any error, defect or
irregularity, whether in substance or in form; extend any prescribed
time; give all such directions as it may deem necessary or expedient in
the determination of the dispute before it; and dismiss any master or
part of any matter, or refrain from hearing further or from determining
the dispute or part thereof, where it is trivial or where further
proceedings by the Court are not necessary or desirable.
Section 8. Assessors. — Employers and employees or
laborers and landlords and tenants or farm-laborers directly concerned
with any matter under or to be submitted to the consideration of the
Court may petition for the appointment of assessors, and the Court,
when satisfied of the interest of the petitioners in the controversy,
may appoint at any stage of the proceedings assessors not exceeding
three for the employer or landlords, and an equal number of assessors
for the employees, laborers or tenants, from the lists of candidates to
be submitted by the parties concerned. The assessors will serve without
compensation or allowance whatsoever.
Section 9. Boards of inquiry. — Whenever necessary in
his opinion, the President of the Philippines may appoint boards of
inquiry in different localities to assist the Court in the performance
of its duties under the provisions of Section five hereof. A local
board of inquiry shall be composed of the following members: not more
than six from among a list of nominees to be submitted by employers or
landlords, an equal number from a list submitted by the employees,
laborers, tenants or farm-laborers, and not more than three experts in
sociology, welfare work, labor problems or industrial and agricultural
economics and administration: Provided, That if within fifteen days
after requesting them to do so, the parties concerned fail to submit
the list of nominees above mentioned, the President may appoint in
their stead such persons as in his judgment may represent the parties
failing to submit such nominees. The chairman of the board shall be
designated by the President from among the experts. The majority of the
board shall constitute a quorum to do business, and the affirmative
vote of the majority of all the members present shall be necessary to
the approval of any proposition. The members of the board shall receive
no compensation but they shall be paid their traveling expenses. The
boards of inquiry shall be charged with the duty of investigating and
determining the facts in any given case, and their report and decision
shall be deemed as only advisory.
Section 10. Reference to public officials. — For
the sake of expediency and depending on the nature and extent of the
facts and questions involved, the Court may refer any industrial or
agricultural dispute, or any matter under consideration or advisement
by the Court under the provisions of section four hereof to a local
board of inquiry, a provincial fiscal, a justice of the peace or any
public official in any part of the Philippines for investigation,
report, and recommendation, and may delegate to such board or public
official such powers and functions as the said Court of Industrial
Relations may deem necessary; but such delegation shall not affect the
exercise by the Court itself of any of its powers of functions. When
delegation is made to a public official as above provided, he may, in
his discretion, appoint an equal number of assessors, not exceeding
three, from each of the lists submitted by the employers or landlords
and by the employees, laborers, tenants, or farm-laborers,
respectively, interested in the matter referred to him for
investigation. The assessors thus appointed shall serve without
compensation or allowance whatsoever. The Court may take into account
or set aside the recommendation of any such board or public official in
deciding the dispute and making its decision, award or order.
Section 11. Court authorized to seek help from other officers. - The
Court shall have the power to require the services of any Government
official or employee, to help it, without additional compensation, in
the performance of its duties.
Section 12. Power of inspection. — The Judge or any person authorized by
him in writing may at any time during working hours, enter any labor
establishment, building, place or premises in the performance of the
duties of the Court, and may inspect and view any work, material,
implement, machinery, appliances or any object therein.
CHAPTER IV
Award and Appeals
Section 13. Character of the award. — In making an award, order or
decision, under the provisions of section four of this Act, the Court
shall not be restricted to the specific relief claimed or demands made
by the parties to the industrial or agricultural dispute, but may
include in the award, order or decision any matter or determination
which may be deemed necessary or expedient for the purpose of settling
the dispute or of preventing further industrial or agricultural
disputes.
Section 14. Finality of award. — At the expiration of ten days from the
date of the award, order or decision, in cases brought under the
provisions of section four hereof, judgment shall be entered in
accordance therewith, unless during said ten days an aggrieved party
shall appeal therefrom to the Supreme Court of the Philippines by writ
of certiorari as hereinafter provided. The Supreme Court in its
discretion, may, in any case involving a question of law, upon petition
of the party aggrieved by the decision of the Court of Industrial
Relations and under rules and conditions that it may prescribe, require
by certiorari that said case be certified to it for review and
determination.
Section 15. Decision of Supreme Court. — Upon the final determination
and decision by the Supreme Court of the questions or issues raised in
the appeal, the Clerk of the Supreme Court shall immediately transmit
to the Clerk of the Court of Industrial Relations a certified copy of
the decision or judgment. Five days after receipt of said certified
decision or judgment by the Clerk of the Court of Industrial Relations
it shall immediately become conclusive, final and executory.
If exceptions to an award, order or decision of the Court are finally
sustained, judgment shall be entered setting aside the award, order or
decision, in whole or in part, but in such case the parties may agree
upon a judgment to be entered disposing of the subject matter of the
controversy, which shall have the same force and effect as judgment
entered, an award, order or decision.
Section 16. Preference given to labor cases. —
The Supreme Court shall hear cases arising out of, and brought under,
the provisions of this Act in preference to all other cases, and decide
them as soon as practicable.
Section 17. Limit of effectiveness of award. —
An award, order or decision of the Court shall be valid and effective
during the time herein specified. In the absence of such specification,
any party or both parties to a controversy may terminate the
effectiveness of an award, order or decision after three years have
elapsed from the date of said award, order or decision by giving notice
to that effect to the Court: Provided, however, That at any time during
the effectiveness of an award, order or decision, the Court may, on
application of an interested party, and after due hearing, alter,
modify in whole or in part, or set aside any such award, order or
decision, or reopen any question involved therein.
Section 18. Interpretation of award. — Whenever
a doubt shall arise as to the meaning or interpretation of an award,
order or decision of the Court of Industrial Relations, any interested
party may petition the Court to determine such meaning or
interpretation and the Court, upon receiving such petition, shall set a
date for the hearing of the case and shall dispose of the same as soon
as practicable.
CHAPTER V
General Provisions
Section 19. Implied condition in every contract of employment. — In
every contract of employment or tenancy, whether verbal or written, it
is an implied condition that when any dispute between the employer or
landlord and the employee, tenant or laborer has been submitted to the
Court of Industrial Relations for settlement or arbitration, pursuant
to the provisions of this Act, and pending award or decision by it, the
employee, tenant or laborer shall not strike or walk out of his
employment when so enjoined by the Court after hearing and when public
interest so requires, and if he has already done so, that he shall
forthwith return to it, upon order of the Court, which shall be issued
only after hearing when public interest so requires or when the dispute
cannot, in its opinion, be promptly decided or settled; and if the
employees, tenants or laborers fail to return to work, the Court may
authorize the employer or landlord to accept other employees, tenants
or laborers. A condition shall further be implied that while such
dispute is pending in the Court, the employer or landlord shall refrain
from accepting other employees, tenants or laborers, unless with the
express authority of the Court, and shall permit the continuation in
the service of his employees, tenants or laborers under the last terms
and conditions existing before the dispute arose: Provided, That within
fifteen days after the declaration of the strike, employers will not be
allowed to engage the services of strike breakers. A violation by the
employer or landlord or by the employee, tenant or laborer of such an
order or the implied contractual condition set forth in this section
shall constitute contempt of the Court, and shall be punishable as in
all other cases of contempt of a Court of First Instance.
Section 20. Rules of court. — The Court of Industrial Relations shall
adopt its rules of procedure and shall have such other powers as
generally pertain to a court of justice: Provided, however, That in the
hearing, investigation and determination of any question or controversy
and in exercising any duties and powers under this Act, the Court shall
act according to justice and equity and substantial merits of the case,
without regard to technicalities or legal forms and shall not be bound
by any technical rules of legal evidence but may inform its mind in
such manner as it may deem just and equitable.
Section 21. Unlawful for employer to discharge employee under certain
conditions. — It shall be unlawful for any employer to discharge or to
threaten to discharge, or in any other manner discriminate against, any
laborer or employee because such person has testified or is about to
testify, or because such employer believes that he may testify in any
investigation, proceeding or public hearing conducted by the Court or
any board of inquiry.
Section 22. Unlawful agreements. — Any agreement intended to avoid the
provisions of this Act shall be void.
CHAPTER VI
Damages and Penalties
Section 23. Civil liability. — Non-compliance with any of the terms of
the agreement of the parties as provided for in this Act, or, of the
award, order or decision, after it has become final, conclusive and
executory, may subject the offending party to liability for damages to
be recovered in an ordinary civil action.
Section 24. Criminal liability. — Any violation of the provisions of
this Act, or, of any order, award or decision of the Court of
Industrial Relations, shall be punished with a fine not exceeding one
thousand pesos or imprisonment not exceeding one month, or both in the
discretion of the Court. Any person who shall induce or cause somebody
to violate any provision of this Act or of any order, award or decision
of the Court shall be punished with a fine not exceeding two thousand
pesos or imprisonment not exceeding one year or both in the discretion
of the Court.
CHAPTER VII
Special Provisions
Section 25. Appropriation. — The sum of forty-five thousand pesos or so
much thereof as may be necessary, is hereby appropriated out of the
un-appropriated funds in the Philippine Treasury, for salaries, per
diems, traveling expenses purchase of materials and equipments and
other necessary sundry expenses that may be incurred in the carrying
out of the provisions of this Act up to the last day of December of
nineteen hundred and thirty-seven. The expenses for the succeeding
years shall be provided for in the current appropriations for such
years.
Section 26. Partial invalidity. — If for any reason, any section or
provision of this Act shall be questioned in any Court, and shall be
held to be unconstitutional or invalid, no other section or provision
of this Act shall be affected thereby.
Section 27. This Act shall take effect upon its approval.
APPROVED: October 29, 1936.
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