Under the Labor Code, voluntary arbitration is a mode of settling labor disputes involving unresolved grievances arising from the interpretation or implementation of the Collective Bargaining Agreement (CBA) and those arising from the interpretation or enforcement of company personnel policies.

On Aug. 15, 2025, the Department of Labor and Employment (DoLE) issued Department Order No. 255, series of 2025, or the Revised Procedural Guidelines in the Conduct of Voluntary Arbitration Proceedings.

The guidelines introduced major amendments to the processes involved in voluntary arbitration. These guidelines clarified the acquisition of jurisdiction by the Voluntary Arbitrator (or the Panel of Voluntary Arbitrators, as the case may be), introduced new modes of submission to voluntary arbitration, provided for the digitization of the arbitration proceedings, and implemented a framework for walk-in settlements.

JURISDICTION
Under the 2021 Revised Procedural Guidelines in the Conduct of Voluntary Arbitration Proceedings, jurisdiction is acquired upon receipt of a Submission Agreement signed by both parties, or by the acceptance by the Voluntary Arbitrator/Panel of Voluntary Arbitrators of the Notice of Selection through raffle should there be no Submission Agreement. The 2025 Voluntary Arbitration Guidelines now provide that jurisdiction can also be acquired by the receipt and acceptance of any of the following:

1. Submission Agreement duly signed by both parties;

2. Notice to Arbitrate (when a Voluntary Arbitrator/Panel of Voluntary Arbitrators is named in the CBA, in the grievance machinery, or any similar mechanism); and,

3. Notice of Selection (should parties fail to select an arbitrator, or if there is no named arbitrator and the party upon whom the Notice to Arbitrate is served does not favorably reply within seven calendar days from receipt of such notice).

MODES OF SUBMISSION
Previously, the only mode of submission to voluntary arbitration under the 2021 Voluntary Arbitration Guidelines was the submission of a Notice to Arbitrate. With the 2025 Voluntary Arbitration Guidelines, the following modes were added:

1. Direct Submission: involves the automatic submission of unresolved grievances to voluntary arbitration, through the agreed selection procedure of the parties;

2. Referral from NCMB (National Conciliation and Mediation Board) after conciliation-mediation: referral of unresolved issues raised in an actual strike or lockout, notice of strike or lockout, preventive mediation, or request for assistance, upon agreement of the parties;

3. Referral from NLRC (National Labor Relations Commission) or DoLE: referral of cases initially filed with the Regional Arbitration Branches of the NLRC or the DoLE Regional Offices that fall within the exclusive and original jurisdiction of the Voluntary Arbitrator or Panel of Voluntary Arbitrators; and,

4. Referral of Request for Assistance: involves the pre-termination of the conciliation-mediation proceedings by either or both parties to a labor dispute and the referral of the unresolved issues to voluntary arbitration, upon agreement of the parties.

DIGITIZATION OF VOLUNTARY ARBITRATION PROCEEDINGS
Voluntary arbitration proceedings can now be digitally held, with the 2025 Voluntary Arbitration Guidelines allowing for the service of the notice of conference through electronic mail and the conduct of conferences through online platforms as may be agreed by the parties.

WALK-IN SETTLEMENTS
The 2025 Voluntary Arbitration Guidelines now allow for the parties in the submitted labor dispute to submit for confirmation the validity and finality of their settlement. In such cases, the Voluntary Arbitrator/Panel of Voluntary Arbitrators is mandated to perform due diligence to ensure the understanding by both parties of the settlement (particularly the worker) and its details and thereafter issue an Order adopting the terms of the settlement. This Order serves as a waiver of both parties to file an appeal.

The issuance of the 2025 Voluntary Arbitration Guidelines underscores the preference for settlement as an ideal outcome in labor disputes. Accordingly, employers and employees or unions should take note of the significant procedural changes in voluntary arbitration and evaluate their compliance with these updated requirements.

The views and opinions expressed in this article are those of the author. This article is for general informational and educational purposes only and not offered as and does not constitute legal advice or legal opinion.

Dominique S. Cadiz is an associate of the Labor and Employment department of the Angara Abello Concepcion Regala & Cruz Law Offices (ACCRALAW)

dcadiz@accralaw.com

8830-8000