Dear Atty. Angela,

My father was hired by a corporation as a seafarer for one of its vessels and there was no Collective Bargaining Agreement (CBA) between them. After a few years, he suffered a work-related injury in the ship, leaving him permanently disabled. The corporation refused to pay his disability and other benefits so we filed a case with the National Conciliation and Mediation Board, which referred it to a panel of voluntary arbitrators. Both parties entered into a submission agreement but the corporation argued that the panel did not have jurisdiction on the monetary claims and said it should be referred to the Labor Arbiter (LA). Is this correct?

Evan

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Dear Evan,

The Labor Code provides that money claims arising from employer–employee relations must be filed before the LA. This was likewise stated in Republic Act 8042 or the Migrant Workers and Overseas Filipinos Act for claims of overseas Filipino workers (OFWs). Voluntary arbitrators, on the other hand, handle disputes involving CBAs, company policies, and other matters that both parties agree to submit to them.

Here, there was no CBA between him and the corporation. Also, the corporation objected to the voluntary arbitrators’ authority claiming that the LA has jurisdiction.

In the case of Tandayag v. Magsaysay Maritime Corporation, et al., G.R. No. 256183 (19 May 2025), the Supreme Court explained that the submission agreement does not mean a party accepted the voluntary arbitrators’ jurisdiction, especially when it raised this as an issue from the start.

While voluntary arbitration is encouraged, “it must be categorical and unequivocal that both parties to the dispute agreed to be bound by the voluntary arbitrator.” Submission to arbitration by one side is not enough if the other side consistently objects.

As such, in the case of your father, the monetary aspect you wish to claim should be referred to the LA which is deemed to have jurisdiction over the matter.

Atty. Angela Antonio