4. CONTRACT BAR RULE.a. Concept.Under this rule, a petition for certification election may not be filed when a CBA

between the employer and a duly recognized or certified bargaining agent has been registered with the Bureau of Labor Relations (BLR) in accordance with the Labor Code.107 Where the CBA is duly registered, a petition for certification election may be filed only within the 60-day freedom period prior to its expiry.108   The purpose of this rule is to ensure stability in the relationship of the workers and the employer by preventing frequent modifications of any CBA earlier entered into by them in good faith and for the stipulated original period.109

b. Justifications for the rule.The reasons for this rule are as follows:1. Certification election may only be entertained within the 60-day freedom period.

Any petition filed before or after this period should be dismissed outright.1102. When there exists a CBA, it is the duty of both parties to keep the status quo and

to continue in full force and effect the terms and conditions thereof during the 60-day freedom period and/or until a new agreement is reached by them.111

3. At the expiration of the 60-day freedom period, the employer should continue to recognize the majority status of the incumbent bargaining agent where no petition for certification election challenging such majority status is filed by any other union.112

c. When contract bar rule does not apply.The contract-bar rule does not apply in the following cases:1. Where there is an automatic renewal provision in the CBA but prior to the date

when such automatic renewal became effective, the employer seasonably filed a manifestation with the Bureau of Labor Relations of its intention to terminate the said agreement if and when it is established that the bargaining agent does not represent anymore the majority of the workers in the bargaining unit.113

2. Where the CBA, despite its due registration, is found in appropriate proceedings that: (a) it contains provisions lower than the standards fixed by law; or (b) the documents supporting its registration are falsified, fraudulent or tainted with misrepresentation.114

3. Where the CBA does not foster industrial stability, such as contracts where the identity of the representative is in doubt since the employer extended direct recognition to the union and concluded a CBA therewith less than one (1) year from the time a certification election was conducted where the “no union” vote won. This situation obtains in a case where the company entered into a CBA with the union when its status as exclusive bargaining agent of the employees has not been established yet.115

4. Where the CBA was registered before or during the last sixty (60) days of a subsisting agreement or during the pendency of a representation case.116   It is well-settled that the 60-day freedom period based on the original CBA should not be affected by any amendment, extension or renewal of the CBA for purposes of certification election.117