Professional Documents
Culture Documents
The term “money claims” as used in Article 296 of the Labor Code is not confined to
those specifically recoverable under the Labor code but covers all money claims arising from
employer-employee relationship.
As long as the claim for damages arises from employer-employee relations, case will fall
under the jurisdiction of the Labor Arbiters. The claim does not necessarily refers to those filed
by employees against their employer - it includes claims or counterclaims filed by employer
against employees as long as the claim or counterclaim has a reasonable causal connection with
employer –employee relations.
A complaint to declare a strike illegal falls within the jurisdiction of the Labor Arbiters.
But a petition for injunction to restrain the strikers from obstructing the means of ingress to end
egress from the company premises does not fall under the Labor Arbiter’s jurisdiction - it will
fall under the jurisdiction of the National Labor Relations Commission.
“Art 124. Standards /Criteria for Minimum Wage Fixing – x x x Where the
application of any prescribed wage increase by virtue of law or wage order issued by any
Regional Board results in distortions of the wage structure within an establishment, the
employer and the union shall negotiate to correct distortions. x x x
In cases where there are no collective agreements or recognized labor unions, the
employers and workers shall endeavor to correct such distortions. Any dispute arising therefrom
shall be settled through the National Conciliation and Mediation Board and if it remains
unresolved after ten (10) calendar days of conciliation, shall be referred to the appropriate
branch of the National Labor Relations Commission (NLRC). It shall be mandatory for the
NLRC to conduct continuous hearings and decided the dispute within twenty (20) calendar
days from the time said dispute is submitted for compulsory arbitration.
Action to enforce or annual a compromise agreement falls within the jurisdiction of the
Labor Arbiter. Article 232 of the Labor Code authorizes the NLRC to take cognizance of cases
involving non-compliance with compromise agreements or those involving compromise
settlements obtained through misrepresentation, fraud or coercion.
Not every claim arising from the employer-employee relationship falls within the original
and exclusive jurisdiction of the labor Arbiters. By express provision of Article 223 (a) (6) of the
Labor Code, the following claims are excluded:
(a) Claims for employees consumption benefits – Claims for employees compensation
benefits are under the original and exclusive jurisdiction of the Social Security System, for
the private sector or the Government Service Insurance System, for the public sector [Sec. 1
Rule2, Rules of Procedure for the filing and disposition of employees Compensation
Claims].
(b) Claims for social security benefits, including maternity benefits- Claims for Social
Security Benefits, including maternity benefits, are under the jurisdiction of the Social
Security Commission.
(c) Claims for PhilHealth benefits -Claims pertaining to PhilHealth are under the jurisdiction
of the Philippine Health Insurance Corporation.
(d) Pure money claims of employees not exceeding P5,000.00 - These claims are
recognizable by the Regional Director of the Department of the Labor and Employment.
Compulsory arbitration does not embrace the whole adjudicatory process. It is confined
to the proceeding before the labor Arbiter. When a Labor Arbiter renders a decision, compulsory
arbitration is deemed terminated because by then the hearing and determination of the
controversy has ended. Any appeal raised by an aggrieved party from the Labor Arbiter’s
decision is no longer considered as arbitration since in appeal stage, The NLRC merely reviews
the Labor Arbiters decision for errors of fact or law and no longer duplicates the proceedings
before the Labor Arbiter. Thus, an agreement which stipulates that the employee shall be placed
in the payroll “pending resolution of the case by arbitration’’ should be understood to be limited
to the proceeding before the Labor Arbiter such that when the latter rendered his decision, the
employees can already be removed from the payroll.
The proceedings before the Labor Article are non-litigious in nature. The technicalities of
law and procedure and the rules obtaining in the courts of law are not strictly observed. Article
226 of the labor Code mandates that:
‘’ART 226. Technical Rules Not Binding and Prior Resort to Amicable Settlement - In
any proceeding before the Commission or any of the Labor Arbiters, the rules of evidence
prevailing in the courts of law or equity shall not be controlling and it is the spirit and
intention of this Code that the commission and its members and Labor Arbiters shall use every
and all reasonable means to ascertain the facts in each case speedily and objectively and without
regard to technicalities of law or procedure, all in the interest of due process. x x x”
Trial-type proceeding are not required. The Labor Arbiter can decide a case on the basis
of position papers. Therefore, a party cannot validly contend that the affidavit is hearsay simply
because the affiant were not presented for cross-examination because the rules of evidence are
not strictly observed in labor proceeding.
Submission of the Dispute before the Lupong Tagapayapa Not a Prerequisite
The provision of P.D. 1508 requiring the submission of disputes before the barangay
Lupong Tagapayapa prior to the filing with the court or other government offices are not
applicable to the labor cases.
General Rule - Only lawyers can appear before the Labor Arbiter or NLRC. Public policy
demands that legal work in representation of the parties-litigants should be entrusted only to
those possessing tested qualifications and who are sworn to observe the rules and ethics of the
profession as well as being subject to judicial disciplinary control for the protection of courts,
clients, and the public.
Exceptions - Article 227 of the Labor Code authorizes the appearance of non-lawyers:
Non-lawyers are not entitled to attorney’s fees. The reason is because attorney’s fees
presupposed the existence of attorney-client relationship. Such relationship cannot exist unless
the client’s representative is lawyer.
A lawyer- member of the Public Attorney’s Office is not entitled to attorney’s fees.
After the filing of the compliant, the case will be set for mandatory conciliation and
meditation conference for the purpose of:
Article 226 of the Labor Code mandates the labor Arbiter to exert all efforts towards the
amicable settlement of the labor dispute on or before the first hearing.
Under Article 232 of the labor code, any compromise settlement voluntarily agreed upon
by the parties with the assistance of the department of labor, is final and binding uponthe parties.
Thus:
The conclusiveness of a compromise is clearly ordained by the Article 232 of the Labor
Code which decrees that the NLRC or any court shall not assume jurisdiction over issues that
have been subject of compromise settlement, except:
A compromise is governed by the basic principle that the obligations arising from the
contracts have the force and effect of law between the parties.
a compromise cannot later be disowned or set aside merely because a party has changed
his mind;
a compromise cannot be set aside on the ground that the employee was constrained to
sign the same because of extreme necessity. “Dire necessity” is not an acceptable ground
of annulling a compromise specially when there is no showing that the employee had
been forced to enter into such compromise.
However, if the consideration for the compromise was very much less than the amount
which the employee was entitled, it may be set aside for being contrary to law, morals or public
policy. It should be stressed that only the employee, not his counsel, can impugn the
consideration of the compromise as being unconscionable.
Waiver of claims is a personal right which must be exercised personally by the employee
themselves. Where the compromise agreement was signed by only three (3) out of five days (5)
employees, the non-signatories are not bound by that amicable settlement.
A lawyer can validly enter into a compromise agreement in behalf of his client only:
A union cannot enter into a compromise in behalf of its members without the individual
consent of the affected members. A compromise agreement entered into by the union without the
individual consent of the union members concern in null and void.
Can a lawyer ask for the disapproval of the compromise on the ground that his fees was
reduced?
The fact that the compromise agreement reduced the award of attorney’s fees is not a
ground for the disapproval of the agreement. The right of a lawyer to attorney’s fees cannot have
a higher standing than the right of the client himself. Lawyer’s rights may not be invoked as a
ground for disapproving a compromise. The lawyer affected can always enforce his right in a
proper proceeding but said right may not be used to prevent the approval of the compromise.
Can the parties enter into a compromise after a final judgement has been rendered on the
case?
It is perfectly valid for the parties to enter into a compromise despites the fact that the
final judgement has already been rendered or even if the case is already in the process of
execution. This is impliedly authorized by the Article 2040 of Civil Code.
Quitclaim
Conformity of the employee’s counsel is not essential to the validity of quitclaims. There
is nothing in the Labor Code which required such conformity in order to make the quitclaim
valid.
Immediately after the submission by the parties of their position paper and reply, the Labor
Arbiter shall determine whether there is need for a hearing. As to whether or not a formal hearing
should be conducted is a matter that depends upon the sound discretion of the Labor Arbiter. It
cannot be demanded as a matter of right by the parties. The entire proceeding area subject to the
complete control of the Labor Arbiter.
The labor arbiter may be conduct a formal hearing:
(a) if there are factual issues that require formal presentation of evidence;
(b) if there are matters that need clarification.
Ocular Inspection
The labor Arbiter and the NLRC may also conduct ocular inspection for an enlightened
determination of the case. Article 225 of the labor code provided that:
ART. 225. Ocular Inspection- The Chairman, any commissioner, Labor Arbiter or duly
authorized representatives, may, at any time during working hours, conduct an ocular
inspection on any establishment, building, ship, or vessel, place or premises, including any
work, material, implement, machinery, appliance or any object therein and ask any employee,
laborer, or any person as the case may be for any information or data concerning any matter or
question relative to the object of the investigation.’’
The degree of proof required in arbitration proceedings is only substantial evidence. The
Labor Arbiter or the NLRC cannot require proof higher than substantial evidence.
Under article 223 of the Labor Code, labor arbiters are required to render the decision
within thirty (30) calendar days after the case is submitted for decision.
With regard to cases filed by the migrant workers, labor Arbiters are required to render a
decision within ninety (90) calendar days after filling of the compliant. This is provided for
section 10 of the Migrant Workers Act.
The prescribed period within which to decide a case is mandatory. This is expressly
provide in article 282 (i) of the Labor Code which reads as follows:
Art 282. Miscellaneous Provisions - (i) to ensure speedy labor justice, the periods
provided in this Code within which labor relations cases or matters should be rendered shall be
mandatory. For this purpose, a case or matter shall be deemed submitted for decision or
resolution upon the filing of the last pleading or memorandum required by the rules of the
Commissions or by the Commission itself of or the Labor Arbiter, or the Director of the Bureau
of Labor Relations or Med-Arbiter, or the Regional Director.’’
While the law declares the period to decide cases to be mandatory, it does not mean that
the decisions rendered after the prescribed period are invalid. Decisions rendered after the
prescribed period are still valid, but the Labor Arbiter concerned may be subjected to
administrative sanctions.
Section 10 of the Migrant Workers Act prescribed the following sanction for failure to
follow the prescribed period for deciding cases filed by migrant workers. Thus:
SEC 10. Money claims – Noncompliance with the mandatory periods of resolution of
cases provided under this section mandatory period for resolution of cases provided under this
section shall subject the responsible officials to any or all of the following penalties:
(a) The salary of any such official who fails to render his decision or resolution within
the period shall be, or caused to be, withheld until the said official complies
therewith;
(b) Suspension for not more than ninety (90) days; or
(c) Dismissal from the service with disqualification to hold any appointive public office
for (5) years.
Provided, however, that the penalties herein provided shall be without prejudice to any
liability which any such official may have incurred under other existing laws or rules and
regulations as a consequence of violating the provisions of this paragraph.”
ART 228. Appeal – x x x In any event, the decision of the Labor Arbiter reinstating a
dismissed or separated employee, insofar as the reinstatement aspect is concerned, shall
immediately be executory, even pending appeal. The employee shall either be admitted back to
work under the same terms and conditions prevailing prior to his dismissal or separation, or at
the option of the employer, merely reinstated in the payroll. The posting of a bond by the
employer shall not stay the execution for reinstatement provided herein.”
Compliance with the reinstatement order the Labor Arbiter’s decision may be in the form
of:
(a) Physical reinstatement, which means that the employee will be admitted back to work
under the same terms and conditions prevailing prior to his dismissal; or
(b) Payroll reinstatement, which means that although not physically admitted back to work,
the employee would be receiving his salary.
Who has the right to choose on whether the employees should be physically reinstated or be
reinstated in the payroll?
The right to choose on whether the employee should be physically reinstated or merely
reinstated on payroll is exclusively vested upon the employer. This is clear from the provision of
article 228 of the Labor Code.
Can the Labor Arbiter or the NLRC order the employer to reinstate the employee in the
payroll?
No. It is not within the power of the Labor Arbiter or the NLRC to impose upon the
employer to reinstate the employee in the payroll.
The right to choose belongs exclusively to the employer. Neither the Labor Arbiter nor
the NLRC can exercise this option on behalf of the employer.
No. Posting of bond will not excuse the employer from complying with the reinstatement
order of the Labor Arbiter during the pendency of the appeal. This is expressly provided for in
article 228 of the Labor Code.
Suppose the reinstatement order of the Labor Arbiter is reversed on appeal, what would be
the effect?
If the reinstatement order is reversed on appeal upon finding that the employee was
validly dismissed, the following are the consequences:
If the reinstatement was implemented - if reinstatement was carried out (whether physical
or in the payroll), the employer can put an end to such reinstatement once the judgment of the
NLRC becomes final and executory. If the employer opted to reinstate the employee in the
payroll, the employer can recover the salaries that he had paid to the employee.
If the reinstatement was not implemented – if the reinstatement was not carried out, the
legal effects will depend upon the following circumstances:
If the reinstatement was not enforced because of the employer’s refusal to reinstate the
employee without justifiable reason, the employer is liable to pay the salaries of the
employee reckoned from date when the employer is liable to pay the salaries of the
employee reckoned from the date when the employer (thru counsel) received the Labor
Arbiter’s decision until the finality of the judgment of the NLRC.
If the reinstatement was not carried out because of the employee’s refusal to
report for work after being directed to do so by the employer, the employer is not
liable to pay any salary because the employee is deemed to have waived his right
to reinstatement. Similarly, if the employee did not vigorously pursue his
reinstatement, i.e. did not do anything to compel the employer to reinstate him
during the pendency of the appeal, the employer is not liable to pay any salary
because the employee is deemed to have forfeited his right to reinstatement
through waiver or laches.
CHAPTER XXXIII
APPEAL
The proper remedy from an adverse decision of the Labor Arbiter is not a motion for
reconsideration but appeal. The rules do not allow motions for reconsideration but appeal. The
rules do not allow motion for reconsideration of any order or decision of the Labor Arbiter.
What is the reglementary period to appeal from decision of the labor arbiter?
The period to appeal is 10 calendar days. This is expressly provided for in article 228 of
the labor code which states that:
ART. 228. Appeal— Decisions, awards, or orders of the Labor Arbiter are final and
executory unless appealed to the Commission by any or both parties within ten (10) calendar
days from receipt of such decisions, awards, or orders.
If the appeal was filed beyond the 10-day reglementary period the judgment becomes
final and executory by the operation of law, and the NLRC would be deprived of jurisdiction to
entertain such appeal.
If the last day of filling falls on Saturday, Sunday, or holiday the appeal can be filed on
the next working day.
The reglementary period to appeal should be reckoned not from date of receipt of the
decision by the party but from the date of receipt by the counsel or representative on record. The
failure or the negligence of counsel to timely lodge an appeal binds the client.
Memorandum of appeal ;
Appeal fee;
Appeal bond, if there is monetary award other than moral and exemplary damages and
attorney’s fees; and
Proof of service to the adverse party.
A mere notice of appeal without complying with the other requisites for perfection of
appeal does not stop the running of the period for perfecting an appeal.
Appeal fee
(a) When the decision of the Labor Arbiter involves a monetary award; and
(b) When the appeal is made by the employer.
The appeal bond must be posted within the 10-days reglementary period to appeal,
otherwise, the appeal will not be perfected.
In the computation of appeal bond, moral and exemplary damages and attorney’s fees are
excluded.
The appeal bond may be in the form of cash or surety bond issued by reputable bonding
company duly accredited by the NLRC.
A real property bond has been held as substantial compliance with the requirement of
Article 228 of the Labor Code in line with the liberal interpretation accorded to the law. The
reason is because the real property bond will sufficiently protect the interests of the employees
should they finally prevail.
Proof of service
The law mandates the appellant to furnish the other party with:
However, the failure of the appellant to furnish the adverse party with a copy of the
memorandum of appeal is not a fatal defect but a mere formal lapse.
If there is no proof of service to the adverse party, the NLRC must inform the adverse
party of the appeal in order to give him an opportunity to be heard, otherwise, there would be a
violation of due process.
Period to decide appealed cases
The NLRC is required by law to decide appealed cases within twenty (20) calendar days
from receipt of the answer of the appellee.
Whenever the required membership in a division is not complete and the concurrence of
two (2) Commissioners to arrive at a judgment or resolution cannot be obtained, the Chairman
shall designate such number of additional Commissioners from other Divisions as may be
necessary.
Unlike decision of the Labor Arbiter, decisions of the NLRC may be the subject of a
motion for reconsideration which should be filed within (10) days from receipt (Sec. 15 Rule VII,
2011 NLRC Rules of Procedure). Filing of motion for reconsideration is in fact a condition sine
qua non filing of petition for certiorari. Only one motion for reconsideration from the same party
shall be entertained.
Decisions of the NLRC are subject to judicial review by means of a special civil action
for certiorari, which may be filed not later than sixty (60) days from notice of judgment, order or
resolution sought to be assailed. The petition for certiorari should be filed with the Court of
Appeals in strict observance of the doctrine of the hierarchy of courts.
The NLRC
The NLRC is the appellate body from decision of the Labor Arbiters and decisions
rendered by the Regional Director of the Department of Labor and Employment under the
Article 129 of the Labor Code. It is a 24-man tripartite body composed of representatives from
the public sector, workers’ sector and employer’s sector. It is headed by a Chairman who shall be
the Presiding Commissioner of the 1st Division. The Commissioners from the public sector shall
be the Presiding Commissioner of the other divisions.
The NLRC has eight (8) divisions, each composed of three (3) members. Of eight (8)
divisions, the 1st, 2nd, 3rd, 4th, 5th and 6th divisions handle cases coming from the NCR and other
parts of Luzon, while the 7th division handles cases from Visayas and the 8th division handles
cases from Mindanao.
The territorial divisions of the NLRC are designed merely for administrative efficiency.
They do not confer exclusive jurisdiction to each division. Therefore, a commissioner from
another division may be temporary assigned to another division in order to fill the gap brought
about by the retirement or temporary incapacity of a commissioner.
Term of office
The Commissioners of the NLRC shall hold office until the age of sixty-five (65) years.
The President of the Republic of the Philippines may extend the service of the Commissioners up
to the maximum age of seventy (70) upon of the recommendation of the NLRC En Banc.
Original jurisdiction-
(a) Cases certified to it by the SOLE pursuant to the article 268 (g) of the Labor Code;
and
(b) Injunction cases under the article 224(e) and 269 of the Labor Code.
(a) Cases decided by the DOLE Regional Director under the Article of 129 of the Labor
Code;
NOTE: Here, the period to appeal is five (5) calendar days from receipt of
the decision (Art. 129, Labor Code)
(b) Cases decided by the Labor Arbiter
NOTE: Here, the period to appeal is ten (10) calendar days (Art 223, Labor Code)
CHAPTER XXXIV
EXTRAORDINARY REMEDIES
Orders or resolutions by the Labor Arbiter which are not appealable, such as an order
denying a motion to quash writ of execution, an order denying for a motion of issuance of writ of
execution, or any order issued in the course of execution proceedings may be elevated to the
National Labor Relations Commission (NLRC) by way of petition for annulment of order
with application for the issuance of the temporary restraining order and/or injunction to enjoin
the Labor Arbiter, or any person acting under his/her authority, to desist from enforcing the
questioned or resolution.
Pending resolution of the petition, the NLRC, may issue, a temporary restraining order
ex-parte effective for non-extendable period of twenty (20) calendar days or a writ of
preliminary injunction effective for non-extendible period of sixty (60) calendar days from
service on the private respondent.
Unless otherwise declared by the NLRC, the issuance of temporary restraining order or
writ of preliminary injunction shall not suspends the proceeding before the Labor Arbiter or stay
the implementation of the writ execution -iIt shall only restrain or enjoin such particular acts as
therein decreed to be restrained or enjoined.
(a) Prima facie evidence of abuse of discretion on the part of the Labor Arbiter.
(b) Serious errors in the finding of facts are raised which, if not corrected, would cause
grave or irreparable damage or injury to the petitioner.
(c) Fraud, accident, mistake or excusable negligence or has been prevented from taking
an appeal;
(d) Pure questions of law; or
(e) If the order or resolution will cause injustice if not it rectified.
Period to file the petition
The petition should be filed within ten (10) calendar days from receipt of the questioned
order or resolution of the Labor Arbiter.
Formal Requisites
The petition shall be in the form of verified memorandum (with certificate of non-forum
shopping) stating the grounds relied upon, the arguments in support thereof, and the reliefs
prayed for.
The Labor Arbiter shall be jointly impleaded with the private respondent as public
respondent as a public respondent in a nominal capacity.
(a) The arbitral docket number and appeal docket number; and
(b) The material date showing the timeliness of the petition;
(a) Clear original or certified true copy of the questioned order or resolution and clear copies
of relevant documents and pleading should be attached to the petition;
(b) Proof of payment of the required fees;
(c) Proof of service upon the parties and the labor arbiters who issued the questioned oder
the resolution.
The mere filing of petition does not stop the proceedings before the Labor Arbiter unless
a restraining order or injunction is issued.
Execution proceedings shall not be suspended, but any money collected or credit
garnished shall not be released and properties levied upon shall not be sold within 15
calendar days from the filing of the petition.
If no temporary restraining order or writ of preliminary injunction is issued within the 15-
day period, the money collected or credit garnished shall be released and the properties
levied upon shall be sold by the public auction and the proceeds of the sale applied to satisfy
the judgment.
CHAPTER XXXV
INJUNCTION IN LABOR DISPUTES
In junction in labor disputes is not favored considering that it has not proved to be an
effective means of setting labor disputes The policy of the state is to encourage the parties to use
non-judicial process of negotiations in labor disputes may be issued only in cases of etreme
necessity based on legal grounds clearly established.
Ordinary Court cannot issue injunction in cases involving or growing out of labor
dispute. Article 258 of the labor code prohibits code prohibits courts from issuing injunction or
restraining orders in any case involving or growing out of labor disputes. Thus, a civil court
cannot issue an injunction to restrain the execution of a final and executor judgement of the
National Labor Relations commission Neither can a civil court enjoin striking employees from
obstructing the free ingress or egrees of an establishment.
Injunction in cases involving or growing out labor disputes may be only under the
following exceptional circumstances
(a) In case a lobor dispute causing or likely the couse a strike or lockout in un industry
indispensable to the national interest;
(b) In case of actual or threatened commission of any prohibited or unlawful acts, or when
necessary to require to performance of a particular act, which if not restrained in
performed forthwith, may cause grave or irreparable damage to any party or render
ineffectual and decision in favor of such party.
The injuctive power of the SOLE can be exercise only in labor dispute causing or likely
to cause a strike or lockout in industries indispensable to the nation interest. This is
expressly provided for inn article 268 of the labor code which provided that:
ART 268 Strikes picketing and lokous -xxx (g) When in his opinion exist a labor dispute
causingor likely to cause a strike or lockout in an industry in dispensable to the nation
interest, The secretary of Labor and Employment may assume jurisdiction over the dispute
and decide it or certification shall have the effect of automatically enjoining the impending
strike or lockout of specified in the assumption of certificate order. x x x If one has already
taken place at the time of assumption or certification, all striking or locked out employees
shall immediately return to work and the employees shall immediately resume operations and
readmit all workers under the same terms and conditions prevailing before the strike or
lockout. xxx
The grant of injunctive to the NLRC is set forth in article 224 of the labor code which
provides that:
ART 224 Powers of the Commission- The commission shall have the power and authority
x x x (e) To enjoin or restrain any actual or threatened commission of any or all prohibited or
un lawful acts or require the performance of a particular act in any labor dispute which if not
restrained or performed forthwith, may cause grave or irreparable damage to any party.xxx
The authority of the NLRC to issue injunction is, therefore, conditioned upon the
existence of a labor dispute. Without a labor dispute, the NLRC is devoid of jurisdiction to
issue an injunction.
The NLRC can issue a temporary or permanent injunction only upon proof that:
(a) Prohibited or unlawful acts have been threatened and will be committed and will
continued unless restrained;
(b) Substantial and irreparable injury to complaint’s property will follow;
An injury is considered irreparable when it cannot be adequately compensated in
damages due to the nature of the injury itself or the nature of the right or property injured or
when the exists no certain pecuniary standard for the measurement of damages.
(c) Greater injury will inflicted upon the complainant by denial or relief than will be inflicted
upon respondent by granting the relief;
(d) Complainant has no adequate remedy at law;
An “ adequate” remedy at law has been defined as one “ that affords relief with
reference the matter in controversy, which is appropriate to the particular
circumstances of the case.
(e) The public officers charged with duty to protect the complainant’s property are unable or
unwilling to furnish adequate protection.
The injunction order or decision shoud contain a factual finding on each of the
aforementioned requirements. Otherwise, the injunction will be declared null void for
lack of factual justification.
(a) Verified petition (with certificate of non-forum shopping) alleging the acts which,if
not restrained or performed forthwith, may cause grave or irreparable damage to any
party or render ineffectual any decision in favour of such party;
(b) Personal notice served to all known persons against whom relief is sought, including
the chief executive and other public officials charged with duty to protect
complainant’s property, in the province or city within which the unlawful acts have
been threatened or committed; and
(c) Hearing wherein the testimony of witnesses for both parties shall be taken with the
opportunity for cross-examination.
Injunction in labor disputes cannot, therefore, be issued ex parte. It should be
issued only after a strict and rigorous compliance with the aforementioned requirements.
Unless the statutory requirements are followed, the proceedings would be invalid and of
no effect.
ing When the strike is staged by employees who are not accorded the right to strike, like
managerial employees.
Additional, the NLRC can issue injunction against illegal acts committed during such
strike. For example, if the strikes obstruct the free egress form employer’s premises, the
NLRC can issue an injunction to compel such the strikers to remove such obstructions.
Injunction will not lie to restrain an employer from conducting disciplinary investigation
against an erring employee. In the very nature of things, investigation and imposition of
disciplinary action against erring employees is function that solely and exclusively belongs
to an employer. Such investigation cannot be thwarted or nullified by arguing the employer is
the accuser, prosecutor and judge at the same time.
Can the NLRC issue injunction to prevent an employer from dismissing as employee?
The NLRC issue injunction to restrain an employer from dismissing an employee. The
proper recourse of dismissed employee is not a petition for injunction but a compliant for
illegal dismissal. Without a compliant for illegal dismissal, there is no labor dispute.
A temporary restraining order is directive to maintain the status qou until the hearing of
an application or temporary injunction. Its purpose is merely to maintain the subject of the
controversy until there may be an opportunity to inquire or whether an injunction should be
granted,
Unlike an injunction, a temporary restraining order may be issued ex parte under the
following conditions:
(a) The petition should alleged that substantial and irreparable injury to petitioner’s
property will be unavoidable, unless a temporary restraining order is issued without
notice;
(b) the petitioner shoud present testimony under oath or affidavit of witness to prove
such substantial and
irreparable injury[ art labor code; Sec 6 rule x, 2011 NLRC Rules of procedure; and
(c) The petitioner should post a cash bond in the amount not less than fifty thousand
Pesos (P 50,000.00) or such higher amount as may be determined by the NLRC to
recompense those enjoined for any loss, expense or damage caused by the erroneous
issuance of such order or injunction.
When will a temporary restraining order issued by the NLRC become effective
CHAPTER XXXVI
This could be gleaned from article 229 of the labor Code as amended which reads as
follows:
This could be gleaned from article 229 of the labor Code as amended which reads
as follows:
ART. 229 Execution of Decision, Orders, or awards (a) The secretary of labor
employment or any Regional Director, the commission or any arbiters, or med-arbiter or
voluntary arbiter may, motu prior or on motion on judgement within five(5) years from date it
becomes final and executory, requiring a sheriff or duly deputized officer to execute or enforce
final decision, orders, or awards of the secretary of labor and employment or Regional Director,
The commission, the labor Arbiter or med-arbiter, or voluntary arbitors. In any case, It shall be
duty of the responsible officer to separately furnish immediately the counsel of record and parties
with copies of said decision. orders, or awards. on awards. failure to comply with the duty
prescribed herein shall such responsible officer to appropriate sanctions.
(b) The secretary of labor and employment, and the Chairman of the Commission may
designate special sheriffs and take any measure under existing laws to ensure compliance
with their decisions, orders awards and those of Labor Arbiters and voluntary arbitrators,
including the imposition of administrative fines which shall not be less than P 500.00nor
more than P10,000.00.
Execution shall issue only upon a judgement or order that finally disposes of an action or
proceeding, except in specific instances where the law provides for execution pending appeal.
The following judgement or orders are immediately executory even during the pendency of an
appeal or motion of reconsideration:
A judgement is final if there are no other matters left for determination. It become
executory:
(a) After the expiration of the period to appeal- if no appeal has been perfected; or
(b) After it s decided with finality on appeal- if an appeal has been perfected.
If there are matter left to be determine and settled, the judgement does not become final,
hence it cannot be enforced.
A judgement ordering payment of back wages without specifying the exact amount is not
a final judgement because it leaves something else to be done- the computation of back wages.
Hence, execution thereof cannot be done until the exact amount due is ascertained in a manner
whereof cannot be done until the exact amount due is ascertained in a manner wherein both
parties have been heard.
A final and executor judgement can be enforced only by means of writ of execution. This
is so because a judgement by itself, even if it attain the character of finality, is not self -
executory. It has to be enforced by means of execution. The writ of execution is to coercive
process that compels the losing party to comply with the judgement.
If the losing party does not voluntarily comply with the judgement, or if the labor arbiter
does not mutu propio issue a writ of execution. The prevailing (winning) party must file a motion
for issuance of writ execution before the lapse of five (5) years from entry of judgement of
issuance of certificate of finality, otherwise, the judgement will become dormant.
Pre-execution conference-
After the filing of the motion for issuance of writ execution, the labor arbiter will set the
matter for pre-execution conference to thresh out matters relevant to execution including the
final computation of monetary award. Any order that may be issued by the labor arbiter in the
pre-execution conference is not appealable. The remedy of the aggrieved party is to file a petition
for annulment of order before the National Labor Relations Commission for annulment of order
before the National Relations Commission.
The writ of execution will be issued only when an entry of judgement has already been
made. The writ of execution is effective for a period of five (5) years from issuance thereof.
Suppose the labor arbiter refuses to issue the writ of execution, what would be remedy? If
the writ of execution, what would be the remedy? If the labor arbiter refuses or unlawfully
neglects to issue the writ of execution, mandamus may be availed to compel the issuance of such
writ.
The sheriff serves the writ of execution upon the losing party or upon any day between by
the law to obey the same. It shall be served to any day between 8:00 PM except on Saturdays,
Sundays, and holidays. If the nature of the losing party’s business requires the implementation of
the writ beyond the said period the sheriff should secure a writer authorization from the NLRC or
labor arbiter who issued the writ.
Motion to quash writ execution
However, the mere filing of motion to quash, the order of denial may be elevated to the
National Labor Relations Commission (NLRC) by way a petition for annulment of order (with
application for temporary restraining order or injunction) on the following grouds:
Prima facie evidence of abuse of discretion on the part of the labor arbiter.
Fraud, accident, mistake or excusable negligence;
Pure question of law; or
If the order or resolution will cause injustice if not
Levy-
After serving the writ of execution, the sheriff will conduct a levy on the parties of the
losing party. Levy is done by serving a notice of levy the party against whom the levy is issued.
Notice of levy is manadatory.
The purpose of levy is to take the property into the custody of the law and thereby render
it liable to the lien of the execution, and put it out of the power of the losing party to divert it to
any other use or purpose.
Garnishment-
If money, goods or chattels in the possession of the third party , the sheriff will garnish
the same by serving a notice of garnishment to the third party who has possession or control of
such money, goods, chattels and/or any interest therein, belonging or owing to the losing party.
In the execution of money judgement, the garnishment of levy shall be done in the
following order:
In the execution of money judgement, the garnishment or levy shall be done in the
following order:
Cash bond
Bunk deposit
Surety bond
Personal properties- if the losing party has no bank deposits,or
Real properties- If the personal properties of the losing party are insufficient.
Suppose the property levied belong to another person, what would be the remedy? The
remedy is for that person to filed third party claim with the labor arbiter where the execution
proceeding is pending, within five (5) days from the last day of posting or publication of the
notice of execution sale. Failure to the file the third party claim within the 5-day period will
forever bar the third party from filing his claim. The third party claim is in the form of an
affidavit stating his title to property with the supporting evidence plus a bond equivalent to the
amount of the claim or judgement award, whichever is lower. The filing of the third party claim
automatically suspended the execution proceedings with respect to the properties subject of the
third party claim.
If the losing party refuses or prohibits the sheriff from entering the place where the
property subject of execution is located or kept, of break-open order with the labor arbiter where
the execution proceeding is pending. In addition, the winning party can file a motion to cite the
losing party in contempt.
Execution sale
After the levy, the levied property will be sold at public uaction to the highest bidder.
The execution sale. An execution sale without prior levy and notice of sale. An execution sale
without prior levy and notice of sale, in null and void, hence the purchaser cannot acquire title to
the property.
The purpose of a notice of sale is merely to invite bidders, and thus obtain of fair price
for the property. It is not intended to warn adverse claimants to present their claims to the the
property advertised the true owner is not estopped from thereafter asserting his title because the
failure to present it on or to appear at the sale.
The notice of sale in must be posted in three (3) public places for the following periods:
For perishable properties- for such period of time as sheriff may deem
reasonable
For other personal properties- for not less than five (5) days nor more than ten
(10) calendar days
For real properties- For twenty (20) calendar days.
If the assessed value of the property exceeds fifty
thousand pesos (P 50,000.00), the notice of sale must
also be published once a week for two (2) consecutive
weeks in a newspaper or general circulation in the
province or city. If there be one, or, in the absence
thereof, in a newspaper of general circulation.
The requirements concerning the posting of notice of sale must be strictly followed. Even slight
deviations therefrom will invalidated the notice and render the sale at least voidable.
If the sheriff sells the property at a time and place other than that designated in the notice
of sale and the purchaser at such sale is the judgment creditor(i.e., prevailing party), the sale is
void and no title to the property passes.
The requirements to post the notice of sale in the three (3) public places is not satisfied if
the notice is merely posted on different parts of the same building.
A public auction is a public sale of property to the highest bidder, by one licensed and
authorized for that purpose. The main purpose of auction sales is to obtain the best financial
returns for the owner of the property sold; and they are based on the purpose and policy in
obtaining the worth of property by free and fair competition among bidders; hence competition
among a number of bidders is necessary element.
Real property consisting of several known lots be sold separately or by parcels in order to
afford the judgement debtor(i.e losing party) an opportunity to redeem any of the parcels.
Personal property capable of manual delivery shall be sold within view of those attending
the sale and in such parcels as are likely to bring the highest price.
If the execution sale was tainted with fraud, mistake or irregularity resultingin injury
prejudice, the concerned party can:
(a) file a motion to set aside execution sale in the same suit which was ordered; or
(b) File the separate compliant
Neither the sheriff nor the duly designated officer holding the execution can become a
purchaser, much less can they be interested directly or indirectly in any purchase at such sale.
When the purchaser is the prevailing party, and no third-party claim has been filed, he
need not pay the amount of the judgement. It the price exceeds the amount of the judgement, the
prevailing party shall pay only the excess.
If a purchaser refuses to pay a the bid price placed by him, the shriff may again sell the
property to another highest bidder. The labor arbiter who issued the writ of execution may order
the refusing purchaser:
The sheriff may adjourn the execution sale from day to day if it becomes necessary to do
so for lack of time to complete the sale on the day fixed in the notice.
If the judgement is paid or satisfied before the conduct of execution sale, the sheriff
losses the power to make the sale because there is no more judgement to execute.
Upon payment of the purchase price, the property shall be delivered to the purchaser in
the following manner:
The shriff shall deliver the purchaser the property together with a certificate of sale, if desire by
the purchaser
For Personal Property not Capable of Manual Delivery- the shriff shall execute and
deliver to the purchaser a certificate sale.
For real Property – The sheriff shall give to the purchaser a certificate of sale containing:
The particular description of the real property sold;
The price paid for each distinct lot or parcel; and
The whole price paid by him.
The proceeds of the sale should be deposited by the sheriff with the cashier of the
concerned NLRC Division of Regional Arbitration Branch, or with an authorized depository
bank. The amount deposited can be released only upon order of the labor Arbiter concerned or
the NLRC.
Redemption
Losing party;
His successor in interest; or
By an redemptioner
Meaning of Redemptioner
A redemptioner who redeems the property should first prove his lien by submitting the
following documents to the sheriff or person from whom he seeks to redeem:
(a) A certified copy of the judgement or order under which he claims the right to redeem ; or,
he redeems upon mortgage or other liens, a memorandum of the record thereof, certified
by the register of deeds;
(b) A copy of any assignment necessary to established his claim, verified by the affidavit of
himself, or of a subscribing witness thereto;
(c) An affidavit by himself of his agent , showing the amount then actually due on the lien.
Time of Redemption
The losing party may redeem the property from the purchaser at any time within twelve
(12) months after the date of registration of the sale.
After the expiration of twelve (12) months, redemption may be made only by the
redemptioner who made redemption within said period.