LABOR LAW AND SOCIAL LEGISLATION > II. JURISDICTION & REMEDIES > H. Voluntary Arbitrator > 2. Remedies

Under Philippine labor law, voluntary arbitration is a mechanism for resolving labor disputes through mutual agreement between the parties, where a neutral third party (the Voluntary Arbitrator or VA) resolves issues outside the traditional labor courts. The remedies available under this system, as governed by relevant laws, jurisprudence, and administrative regulations, are as follows:

1. Nature of Remedies Issued by a Voluntary Arbitrator

Binding Decisions: Awards or decisions issued by a Voluntary Arbitrator are final, binding, and executory. These decisions have the same force and effect as final judgments of a court.
Execution of Awards: Remedies can include monetary awards (e.g., unpaid wages, separation pay, retirement benefits) or injunctive relief (e.g., reinstatement of employees or ceasing an illegal activity).
Specific Relief: The Voluntary Arbitrator may order compliance with collective bargaining agreements (CBAs), resolve deadlocks, or address violations of labor standards laws.

2. Scope of Remedies

Labor Standards and Benefits:
- Unpaid wages, overtime pay, holiday pay, and other statutory benefits.
- Claims for separation pay, retirement benefits, or back wages when warranted by the evidence.
CBA Enforcement:
- Compliance with provisions in CBAs, including economic and non-economic benefits.
- Resolving ambiguities in the interpretation of CBA terms.
Reinstatement:
- Ordering reinstatement of employees illegally dismissed.
- This remedy may include full back wages and other compensable benefits.
Non-Monetary Relief:
- Cease-and-desist orders to stop unfair labor practices or other violations.
- Recommendations for corrective actions to improve labor relations.

3. Process of Enforcement of VA Awards

Execution Through Labor Arbiters:
- Under Article 276 of the Labor Code (as amended), decisions of Voluntary Arbitrators are enforced by the Labor Arbiters of the National Labor Relations Commission (NLRC).
- The prevailing party may file a motion for execution before the NLRC for implementation.
Appeal and Judicial Review:
- Remedies are limited due to the final and binding nature of VA decisions.
- A petition for review may be filed with the Court of Appeals via a petition for certiorari under Rule 65 of the Rules of Court, alleging grave abuse of discretion amounting to lack or excess of jurisdiction by the Voluntary Arbitrator.
- The Supreme Court may also review VA decisions but typically only for exceptional issues of jurisdiction or grave abuse.

4. Grounds for Setting Aside or Modifying a VA Decision

Grave Abuse of Discretion:
- If the VA acted in a capricious, arbitrary, or whimsical manner.
Lack of Jurisdiction:
- If the matter resolved by the VA is outside the scope of voluntary arbitration as agreed upon by the parties.
Violation of Due Process:
- If a party is not afforded a reasonable opportunity to present its case.

5. Special Considerations in VA Remedies

Voluntary Arbitration Clause:
- The VA’s jurisdiction and authority derive from the arbitration agreement or the CBA’s arbitration clause. Any remedy must be within the bounds of the arbitration agreement.
Effectivity and Duration:
- Remedies typically take effect immediately unless otherwise specified in the award.
- Compliance may be time-bound or ongoing, depending on the nature of the relief.

6. Limitations on Remedies

No Punitive Damages:
- Voluntary Arbitrators cannot award punitive damages, as their role is limited to resolving labor disputes based on law, equity, and agreements.
Scope of Jurisdiction:
- Remedies are confined to labor-related issues agreed upon for arbitration. Matters such as criminal liability or purely civil disputes fall outside the VA’s authority.

7. Advantages of VA Remedies

Speed and Efficiency:
- Voluntary arbitration is often faster than formal court or NLRC proceedings.
Finality:
- Decisions are generally final and unappealable, ensuring speedy resolution of disputes.
Flexibility:
- Parties can design customized remedies suited to their specific needs or industry practices.

8. Practical Implications for Parties

Employers:
- Must ensure compliance with VA awards to avoid execution proceedings.
- Proactive negotiation during arbitration helps shape favorable remedies.
Employees:
- Remedies provide robust protection for rights, especially for CBA violations.
- Awareness of available remedies and procedural enforcement is crucial for full benefit.

9. Relevant Jurisprudence

San Miguel Corporation v. NLRC (G.R. No. 119293):
- Affirmed the finality and binding nature of VA awards.
Oceanic Bic Division v. Romero (G.R. No. 164476):
- Clarified that VA remedies are subject to limited review under Rule 65.
Globe Telecom, Inc. v. Florendo (G.R. No. 192529):
- Emphasized the enforceability of VA awards through NLRC mechanisms.

10. Procedural Framework

Initiation:
- Filing of a Request for Arbitration by one or both parties.
Arbitration Hearing:
- Presentation of evidence, witnesses, and legal arguments.
Award Issuance:
- Decision rendered based on the merits, CBA terms, and applicable labor laws.
Execution:
- Award executed via labor arbiters of the NLRC or enforcement through judicial processes.

In conclusion, remedies under voluntary arbitration provide a critical avenue for efficient and binding resolution of labor disputes. These remedies uphold labor rights while fostering cooperative labor-management relations.