DOLE Amends Requirements for SEBA Certification

On 01 April 2022, the Department of Labor and Employment (“DOLE”) issued Department Order No. 40-J, series of 2022 to amend Rule VII of the Implementing Rules of Book V of the Labor Code of the Philippines. Rule VII pertains to the requirements for Sole and Exclusive Bargaining Agent (“SEBA”) Certification. The amendment covers only Section 1 until Section 4.1 of Rule VII.

Under the amendment, any legitimate labor organization may file a request for SEBA Certification in the Regional Office which issued its certification of registration or certificate of creation of chartered local. A copy of the certificate of registration or certificate of creation of chartered local shall be attached to the request which shall indicate:

1. The name, address, and contact details of the requesting union or local;
2. The name, address, and contact details of the company where it operates;
3. The bargaining unit sought to be represented;
4. The approximate number of employees in the bargaining unit; and
5. The statement of the existence/non-existence of the labor organization/Collective bargaining agreement.

Within one (1) day from submission, the Regional Director shall:

1. Determine whether the request is compliant with the preceding section and whether the bargaining unit sought to be represented is organized or not; and
2. Direct the management to submit a certified true copy of the payroll for the purposes of SEBA Certification pursuant to Section 4 of the Rule. The payroll shall be submitted by the management on or before the date of the first validation conference. The payroll shall indicate among others the position of the employee, date hired, and manner of payment of wages. 

If the request is deficient, the Regional Director shall notify the requesting union or local to comply within ten (10) working days from receipt of notice. Failure to comply within the prescribed period shall be deemed a withdrawal of the request. If sufficient, a validation conference shall be called.  

If the Regional Director finds the establishment unorganized with only one (1) legitimate labor organization, he/she shall call a conference within five (5) working days for the submission of the following:

1. The names of employees in the proposed covered bargaining unit (“CBU”) who signify their support for the certification, provided that said employees comprise at least majority of the number of employees in the CBU; and
2. Certification under oath by the President of the requesting union or local that all documents submitted are true and correct based on his/her personal knowledge.

The submission shall be presumed to be true and correct unless contested under oath by any member of the bargaining unit during the validation conference. For this purpose, the employer or any representative of the employer shall not be deemed a party-in-interest but only as a by-stander to the process of certification.

Should the management fail or refuse to provide the payroll during the validation conference, despite the directive by the Regional Director, the list of employees in the bargaining unit as certified under oath by the union president, or any similar document provided by the requesting union or local that may aid the Regional Director, shall be used in the validation conference. 

If the requesting union or local fails to complete the requirements without valid reason, the request shall be referred to the Election Officer for the conduct of certification election pursuant to Rule IX of the Rules. However, should the failure to complete the requirements be justifiable, the requesting union or local shall have ten (10) working days from notice to comply with the same. 

The validation proceedings shall not exceed a total of fifteen (15) working days from the date of the first validation conference. 

The Regional Director shall issue the SEBA Certification within three (3) working days if the documents are complete. The SEBA Certification shall be posted by the Regional Director and/or the requesting union or local for fifteen (15) consecutive days in at least two (2) conspicuous places in the establishment or CBU.

All rules, regulations, issuances, circulars, and administrative orders inconsistent with the above are repealed or modified accordingly.