Procedural Reform: Key Amendments to the 2025 NLRC Rules of Procedure (Part 3)

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Also, the matters contained in the following were written in accordance with the law, rules, and jurisprudence prevailing at the time of writing and posting, and do not include any future developments on the subject matter under discussion.

AT A GLANCE:

Rules IX to XI highlights developments relating to direct contempt, injunction proceedings, and execution of judgments.

In our previous discussion, we examined the procedural framework governing proceedings and appeals before the NLRC under Rules V to VIII.

In this article, we will focus on selected provisions under Rules IX to XI, highlighting developments relating to direct contempt, injunction proceedings, and execution of judgments.

Direct Contempt

Section 1 of Rule IX provides that any person may be summarily adjudged guilty of direct contempt for any misbehavior committed near, or in the presence of, whether physical or virtual, the Chairperson or any member of the Commission, or any Labor Arbiter, as to obstruct or interrupt the proceedings before the same.

This rule underscores the authority of the Commission and Labor Arbiters to maintain order and respect during proceedings before it.

Punishable Acts, Omissions, or Remarks

Any of the following may be punished for direct contempt:

Disrespect towards the Chairperson or any of the Commissioners or Labor Arbiters;
Offensive acts towards the said officials;
Use of intemperate language during the proceedings before the said officials;
Refusal to be sworn or to answer as a witness;
Refusal to subscribe an affidavit or a deposition when lawfully required to do so;
Refusal to sign, without any justifiable reason, the minutes of the proceedings even if present or the person concerned participated in the discussion/deliberation; and
Other circumstances analogous to the foregoing. (Section 1(a) of Rule IX)

Injunction Proceedings

Rule X of the 2025 NLRC Rules of Procedure governs the rules of procedure for Injunctions. Under Section 1, an order to enjoin or restrain any ongoing or threatened commission of any or all prohibited or unlawful acts, or to require the performance of a particular act, which, if not restrained or performed forthwith, may cause grave or irreparable damage to any party or render ineffectual any decision in favor of such party.

Summons in Injunction Proceedings

Upon receipt of the petition for injunction, the same shall be raffled off among the Divisions of the Commission. Within twenty-four (24) hours from receipt of the record, the Executive Clerk of Court/Deputy Executive Clerk of Court or in their absence, the Board Secretary, by authority of the Division concerned, shall issue the summons. Within forty-eight (48) hours from receipt thereof, the sheriff/bailiff/designated personnel of the Commission, shall serve the same, together with a copy of the petition and all the documents attached thereto, upon the respondent/s. (Section 4, Rule X)

Injunction in Labor Disputes

Section 6 of Rule X specifies the circumstances under which an injunction may be issued. Thus, in labor disputes, or during strikes or lockouts, an injunction may be issued against any person, association or organization:

threatening to commit any prohibited or unlawful act;
actually committing any prohibited or unlawful act;
omitting the performance of a particular required act; or
actually authorizing or ratifying any of the foregoing after actual knowledge thereof.

Cash Bond Requirement

Section 12 par. 2 of Rule X requires the posting of a cash bond within forty-eight (48) hours from receipt of the notice for the effectiveness of a Temporary Restraining Order (TRO) or a writ of preliminary injunction, to wit:

“xxx.

A corresponding notice to post a cash bond shall be issued by the Executive Clerk/Deputy Executive Clerk which shall state that the cash bond shall be posted within forty-eight (48) hours from receipt of the notice.

xxx

Should the applicant fail to post the bond within the prescribed period, the temporary restraining order or writ of preliminary injunction shall not take effect.”

Dissolution or Modification of the TRO or Preliminary Injunction

A temporary restraining order or a writ of preliminary injunction may be dissolved upon a verified motion, if:

it will cause substantial and irreparable damage to those enjoined; and
the applicant can be fully compensated for the damages that may be suffered.

No order of dissolution shall be issued and take effect except on the condition that the oppositor posts a counterbond within three (3) working days from notice of the order of dissolution. The counterbond, which shall be in cash and in an amount to be fixed by the Commission, shall in no case be less than the amount of the bond posted by the applicant and on the condition that all damages which the latter will suffer by the dissolution of the injunction shall be compensated. In case of failure to post the counterbond, the order of dissolution is automatically vacated.

The temporary restraining order or preliminary injunction shall remain in force pending the posting of the counterbond. (Section 15, Rule X)

Execution of Dormant Judgements

Section 3 of Rule XI provides for the execution of dormant judgements through an independent action. It states that after the lapse of the period stated in the immediately preceding section, the same decision, resolution, award or order shall become dormant, and may be enforced only by filing an independent action within a period of ten (10) years from the date it becomes final and executory.

Pre-Execution Conference

Section 7 of Rule XI states that when necessary, the Commission or the Labor Arbiter may conduct a pre-execution conference to thresh out matters relevant to execution including the final computation of the monetary award. The pre-execution conference shall not exceed fifteen (15) calendar days from the initial schedule, unless the parties agree to an extension.

Take note that it is also provided that any order issued by the Labor Arbiter in the pre-execution conference is not appealable.

Service of the Writ of Execution

Section 8 of Rule XI provides flexibility in the service of the writ of execution:

SECTION 8. Issuance, Contents and Effectivity of a Writ of Execution. — The writ of execution may be served at the address of the losing party or anywhere in the Philippines where the said party may be located.

Enforcement Against the Bonding Company

Section 9(c) of Rule XI states that the procedure when the losing party has no properties or their properties are insufficient and the bonding company refuses to comply with the writ of execution, the sheriff shall proceed against the bonding company’s escrow deposit. If the escrow deposit is also insufficient, the sheriff shall then levy upon the bonding company’s personal property, and if necessary, its real property. This is without prejudice to contempt proceedings against the bonding company’s president, officers or authorized representatives. Moreover, the bonding company’s certificate of accreditation may be suspended or revoked pursuant to existing regulations.

Effect of Reversal during Execution Proceedings

Section 17 of Rule XI clarifies that in the event that the judgment of the Commission is totally set aside or modified by the Court of Appeals, the execution proceedings shall be suspended insofar as consistent with the ruling of the Court of Appeals notwithstanding the pendency of a motion for reconsideration directed at such judgment.

However, the execution of the remaining portions of the judgment which are neither assailed nor affected by the reversal shall continue without delay.

Restitution of Judgment

Where the executed judgment is set aside, reversed, or modified with finality by the Court of Appeals or the Supreme Court, the Labor Arbiter shall upon motion, issue the order of restitution of the executed award.

Restitution shall not apply to reinstatement wages paid pending appeal. (Section 18, Rule XI)

Examination of the Judgment Obligor

Under Section 20 of Rule XI, the person in possession of money or property of the losing party shall not transfer or dispose of such money or property upon the service of the order of examination until the final resolution of the issue.

Piercing the Veil of Corporate Fiction During Execution

Piercing the Veil of Corporate Fiction is provided under Section 21 of Rule XI which gave the grounds for piercing the corporate veil during execution, to wit:

The prevailing party may file a verified motion to pierce the veil of corporate fiction during execution proceedings when the writ of execution cannot be enforced or satisfied against the losing party and there is evidence that:
1. The corporate fiction is used as a vehicle to evade payment or satisfaction of a judgment award;
2. The corporation is a mere alter ego or business conduit of the losing party, or was organized to make it an instrumentality, agency or adjunct of another corporation which is the losing party in a labor case;
3. The corporate entity is used to justify a wrong, protect a fraud, or defend a crime; or
4. Other analogous cases.
The verified motion under this Section shall:
1. state the circumstances and ground/s relied upon;
2. be supported by evidence that clearly warrants the piercing of the veil of corporate fiction; and
3. be accompanied by proof of service thereof upon all parties and the corporation sought to be pierced.

Alburo Alburo and Associates Law Offices specializes in business law and labor law consulting. For inquiries regarding legal services, you may reach us at info@alburolaw.com, or dial us at (02)7745-4391/ 09175772207/ 09778050020.

Procedural Reform: Key Amendments to the 2025 NLRC Rules of Procedure (Part 3)

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