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Bond and Execution Rules NLRC

This document summarizes procedures for appeals and execution of decisions from the National Labor Relations Commission (NLRC) in the Philippines. It discusses: 1) Requirements for perfecting an appeal, including posting a bond in the amount of any monetary award from the Labor Arbiter or Regional Director's decision. 2) Procedures for motions for reconsideration, including timelines and limits. 3) Process for issuing a writ of execution once a decision becomes final, including priority of sources for collecting monetary judgments. 4) The sheriff's responsibilities in enforcing writs of execution, and consequences for non-compliance.

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Gerald Mesina
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1K views

Bond and Execution Rules NLRC

This document summarizes procedures for appeals and execution of decisions from the National Labor Relations Commission (NLRC) in the Philippines. It discusses: 1) Requirements for perfecting an appeal, including posting a bond in the amount of any monetary award from the Labor Arbiter or Regional Director's decision. 2) Procedures for motions for reconsideration, including timelines and limits. 3) Process for issuing a writ of execution once a decision becomes final, including priority of sources for collecting monetary judgments. 4) The sheriff's responsibilities in enforcing writs of execution, and consequences for non-compliance.

Uploaded by

Gerald Mesina
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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RULE VI APPEALS

SECTION 6. BOND. – In case the decision of the Labor Arbiter or the Regional Director
involves a monetary award, an appeal by the employer may be perfected only upon the posting
of a bond, which shall either be in the form of cash deposit or surety bond equivalent in amount
to the monetary award, exclusive of damages and attorney’s fees. In case of surety bond, the
same shall be issued by a reputable bonding company duly accredited by the Commission, and
shall be accompanied by original or certified true copies of the following: (a) a joint declaration
under oath by the employer, his/her counsel, and the bonding company, attesting that the bond
posted is genuine, and shall be in effect until final disposition of the case; (b) an indemnity
agreement between the employer-appellant and bonding company; (c) proof of security deposit
or collateral securing the bond: provided, that a check shall not be considered as an acceptable
security; and, (d) notarized board resolution or secretary’s certificate from the bonding company
showing its authorized signatories and their specimen signatures. The Commission through the
Chairman may on justifiable grounds blacklist an accredited bonding company. A cash or surety
bond shall be valid and effective from the date of deposit or posting, until the case is finally
decided, resolved or terminated, or the award satisfied. This condition shall be deemed
incorporated in the terms and conditions of the surety bond, and shall be binding on the
appellants and the bonding company.
The appellant shall furnish the appellee with a certified true copy of the said surety bond with all
the above-mentioned supporting documents. The appellee shall verify the regularity and
genuineness thereof and immediately report any irregularity to the Commission. Upon
verification by the Commission that the bond is irregular or not genuine, the Commission shall
cause the immediate dismissal of the appeal, and censure the responsible parties and their
counsels, or subject them to reasonable fine or penalty, and the bonding company may be
blacklisted. No motion to reduce bond shall be entertained except on meritorious grounds, and
only upon the posting of a bond in a reasonable amount in relation to the monetary award. The
mere filing of a motion to reduce bond without complying with the requisites in the preceding
paragraphs shall not stop the running of the period to perfect an appeal. (6a) (As amended by En
Banc Resolution No. 14-15, Series of 2015)

Rule VII – PROCEDURE IN NLRC


SECTION 14. FINALITY OF DECISION OF THE COMMISSION AND ENTRY OF
JUDGMENT. – (a) Finality of the Decisions, Resolutions or Orders of the Commission. –
Except as provided in Section 9 of Rule X, the decisions, resolutions or orders of the
Commission shall become final and executory after ten (10) calendar days from receipt
thereof by the counsel or authorized representative or the parties if not assisted by counsel or
representative. (b) Entry of Judgment. – Upon the expiration of the ten (10) calendar day period
provided in paragraph (a) of this Section, the decision, resolution, or order shall be entered in a
book of entries of judgment. In the absence of return cards, certifications from the post office or
the courier authorized by the Commission or other proofs of service to the parties, the Executive
Clerk or Deputy Executive Clerk shall consider the decision, resolution or order as final and
executory after sixty (60) calendar days from date of mailing. (14a) (As amended by En Banc
Resolution No. 05-14, Series of 2014)

SECTION 15. MOTIONS FOR RECONSIDERATION. – Motion for reconsideration of any


decision, resolution or order of the Commission shall not be entertained except when based on
palpable or patent errors; provided that, the motion is filed within ten (10) calendar days from
receipt of decision, resolution or order, with proof of service that a copy of the same has been
furnished, within the reglementary period, the adverse party; and provided further, that only one
such motion from the same party shall be entertained. (15a)

RULE XI EXECUTION PROCEEDINGS


SECTION 1. EXECUTION UPON FINALITY OF DECISION OR ORDER. –
(a) A writ of execution may be issued motu proprio or on motion, upon a decision or order that
has become final and executory. (b) If an appeal has been duly perfected and finally resolved by
the Commission, a motion for execution may be filed before the Labor Arbiter, when the latter
has possession of the case records or upon submission of certified true copies of the decisions or
final order/s sought to be enforced including notice of decision or order and the entry of
judgment, copy furnished the adverse party. (c) Except that, as provided for in Section 19 of
Rule V in relation to Section 9 of this Rule, and in those cases where partial execution is allowed
by law, the Labor Arbiter shall retain duplicate original copies of the decision to be implemented
and proof of service thereof for the purpose of immediate enforcement. (1a)
SECTION 8. ENFORCEMENT OF WRIT OF EXECUTION. – In executing a decision,
resolution or order, the Sheriff, or other authorized officer acting as Sheriff of the Commission,
shall serve the writ within three (3) days from receipt of the same, subject to the
requirements of Sections 15 and 16 of this Rule and shall be guided strictly by these Rules and
by the Manual on Execution of Judgment, which shall form part of these Rules. In the absence of
applicable rules, the Rules of Court, as amended, shall be applied in a suppletory manner. (7a)
SECTION 9. MANNER OF EXECUTION OF MONETARY JUDGMENT. – (a) Upon the
issuance of a writ of execution by the Labor Arbiter or the Commission, the Sheriff shall
immediately furnish the losing party with a copy thereof by registered mail or by courier
authorized by the Commission and enforce the judgment award, as far as practicable, in the
following order:
(1) Cash bond
(2) Bank deposits
(3) Suretybond
(4) Should the cash bond or surety bond be insufficient, the Sheriff shall execute the monetary
judgment by levying on the personal property, and if insufficient, the real property of the losing
party not exempt from execution, sufficient to cover the judgment award, which may be disposed
of for value at a public auction to the highest bidder.
(5) If the losing party has no properties or his/her properties are insufficient and the bonding
company refuses to comply with the writ of execution, the sheriff shall proceed to levy on the
personal property, and if insufficient, the real property of the bonding company, without
prejudice to contempt proceedings against its president, officers or authorized representatives.
Moreover, the bonding company shall be barred from transacting business with the Commission.
(As amended by En Banc Resolution No. 05-14, Series of 2014; En Banc Resolution No. 14-15,
Series of 2015)
(b) If the bonding company refuses to pay or the bank holding the cash deposit of the losing
party refuses to release the garnished amount despite the order or pertinent processes issued by
the Labor Arbiter or the Commission, the president or the responsible officers or authorized
representatives of the said bonding company or the bank who resisted or caused the non-
compliance shall be either cited for contempt, or held liable for resistance and disobedience to a
person in authority or the agents of such person as provided under the pertinent provision of the
Revised Penal Code. This rule shall likewise apply to any person or party who unlawfully resists
or refuses to comply with the break open order issued by the Labor Arbiter or the Commission.
For this purpose, the Labor Arbiter or the Commission may issue an order directing the sheriff to
request the assistance of law enforcement agencies to ensure compliance with the writ of
execution, orders or processes. A bonding company cited for contempt, or for an offense defined
and punishable under the pertinent provision of the Revised Penal Code shall be barred from
transacting business with the Commission.
(c) Proceeds of execution shall be deposited with the Cashier of the concerned Division or
Regional Arbitration Branch, or with an authorized depositary bank. Where payment is made in
the form of a check, the same shall be payable to the Commission.
(d) For monetary judgment on cases involving overseas Filipino workers, the manner of
execution shall be in accordance with Republic Act No. 10022. (As amended by En Banc
Resolution No. 11-12, Series of 2012)
(e) In case of voluntary tender of payment by the losing party and – (1) in the presence of the
prevailing party, it shall be effected before the Labor Arbiter or the Commission, as the case
may be; (2) in the absence of the prevailing party, it shall be effected by immediately depositing
the same, in cash or in check, with the Cashier of the NLRC or authorized depositary bank and
shall be released only upon order of the Commission or Labor Arbiter who issued the writ.
Payment in the form of check shall be in the name of the Commission. (5a)

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