Most motion estimation algorithms (optical flow, layered models) cannot handle large amount of occlusion in textureless regions, as motion is often initialized with no occlusion assumption despite that occlusion may be included in the final objective. To handle such situations, we propose a local layering model where motion and occlusion relationships are inferred jointly. In particular, the uncertainties of occlusion relationships are retained so that motion is inferred by considering all the possibilities of local occlusion relationships. In addition, the local layering model handles articulated objects with self-occlusion. We demonstrate that the local layering model can handle motion and occlusion well for both challenging synthetic and real sequences.