SIXTEENTH CONGRESS OF THE REPUBLIC )

OF THE PHILIPPINES ) 08FeR 29 :
AP D015

Second Regular Session ) \ -s SIs Py

ed

HOUSE BILL NO. 5430

-list Representative JESULITO A. MANALO

Introduced by ANGKLA Party:

AN ACT AMENDING ARTICLE 223 OF PRESIDENTIAL DECREE NO.
442, AS AMENDED, OTHERWISE KNOWN AS THE LABOR CODE OF
THE PHILIPPINES, AND FOR OTHER PURPOSES

EXPLANATORY NOTE

This bill aims to put in order the existing systems and mechanisms governing
the immediately “final and executory” nature of decisions issued by the
National Labor Relations Commission (NLRC) and the National Conciliation
and Mediation Board (NCMB).

While there are established rules providing for extraordinary remedies to
parties aggrieved by execution proceedings, including restitution, there is
still, in reality, a great deal of difficulty that some parties continuously face in
these labor dispute resolutions. This particularly exists in situations where
after successfully obtaining a money judgment from the NLRC or NCMB, the
said judgment is reversed on appeal, and the laborer-claimant is mandated,
but is no longer able to return the judgment award to the principal.

As there is no other jurisdiction or legal system in the world, except in our
country that allows for the enforcement of a decision of a labor court in full,
despite the availability of further recourse to the appellate courts, this bill
now aims to address and resolve these prevailing labor issues.


The wisdom imparted by the Supreme Court in the case of Mansion Printing
Center, et. al. versus Diosdado Bitara, Jr. (G.R. No. 168120, 25 January 2012) is
instrumental to this proposed measure. The said Decision in part provides:

“The law in protecting the rights of the employees
authorizes neither oppression nor self-destruction of the
employer. It should be made clear that when the law tilts the
scale of justice in favor of labor, it is but a recognition of the
inherent economic inequality between labor and management.
The intent is to balance the scale of justice; to put the two
parties on relatively equal positions. There may be cases
where the circumstances warrant favoring labor over the
interests of management but never should the scale be so
tilted if the result is an injustice to the employer.”

To highlight the gravity of the inherent problem in restitution of monetary
judgments, the records of cases on monetary claims awarded to seafarers
alone from 2009 to 2013 are cited. The figures show that the number of cases
reversed or modified by the CA and the SC had increased to ninety-eight (98),
which translates to the amount of US$6,283,485.00 due to be returned by
seafarers to the ship owners. Of these cases, sixty-three (63) involving a total
value of US$3,892,769, have already been decided with finality. Out of the
said amount of US$6,283,485.00, only US$19,701.50 (in respect of three cases
where the amount to be returned to the ship owners was supposed to be
USD$177,791.50) were recorded to have been recovered or restituted in favor
of the principals who prevailed in their appeals.

The problem gains greater relevance considering the following factors: (a) the
complainant will insist on the execution of the NLRC or NCMB decision
despite the appeal; (b) even if the appellate courts overturn or modify the
NLRC or NCMB decision, there is little hope of recovering anything through
restitution; (c) more legal costs and expenses will be incurred in pursuing the
case through the appellate courts and in applying for restitution of the
judgment award,

Admittedly, the remedy of injunction is available upon elevation of the case to
the CA. However, there were only a few occasions wherein the CA timely
ruled on the applications for injunction, resolving the same unfavorably for
failure to prove the irreparable damage that will be brought about in the
enforcement of the NLRC or NCMB Decision.


Thusly, in order to strike a balance between the rights of the workers and
employers giving equal importance to the right of labor to its just share in the
fruits of production and the right of enterprises to reasonable returns to
investments, expansion and growth, it is submitted that the money judgment
‘be deposited to an Escrow Account, as sufficient to meet the requirements of
execution. In this manner, the laborers are assured of the availability of the
funds and monies due them, and at the same time, restitution, if proper, is

also guaranteed.
| JESULITO A.MANALO

\ Party-list Representative
\ ANGKLA


SIXTEENTH CONGRESS OF THE REPUBLIC )
OF THE PHILIPPINES: )

Second Regular Session )

HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 5430

Introduced by ANGKLA Party-list Representative JESULITO A. MANALO

AN ACT AMENDING ARTICLE 223 OF PRESIDENTIAL DECREE NO.
442, AS AMENDED, OTHERWISE KNOWN AS THE LABOR CODE OF
THE PHILIPPINES, AND FOR OTHER PURPOSES

Be it enacted by the Senate and the House of Representatives of the Philippines
in Congress assembled,

SECTION 1. Article 223 of Presidential Decree No. 442, as amended, shall be
read and amended as follows:

“Art, 223. 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, Such appeal may be entertained only on any of the following grounds:

a If there is prima facie evidence of abuse of discretion on the part of the
Labor Arbiter;

b. If the decision, order or award was secured through fraud or coercion,
including graft and corruption;

c. _ Ifmade purely on questions of law; and

d. If serious errors in the findings of facts are raised which would cause
grave or irreparable damage or injury to the appellant.


Incase of a judgment involving a monetary award, an appeal by the employer
may be perfected only upon the posting of a cash or surety bond issued by a
reputable bonding company duly accredited by the Commission in the
amount equivalent to the monetary award in the judgment appealed from

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.

To discourage frivolous or dilatory appeals, the Commission or the Labor
Arbiter shall impose reasonable penalty, including fines or censures, upon the
erring parties.

In all cases, the appellant shall furnish a copy of the memorandum of appeal
to the other party who shall file an answer not later than ten (10) calendar
days from receipt thereof.

The Commission shall decide all cases within twenty (20) calendar days from
receipt of the answer of the appellee. ANY PARTY MAY FILE A MOTION
FOR RECONSIDERATION ON THE GROUND OF PALPABLE OR PATENT
ERRORS WITHIN TEN (10) CALENDAR DAYS FROM RECEIPT OF THE
DECISION OF THE COMMISSION SOUGHT TO BE RECONSIDERED. The
decision or RESOLUTION of the Commission shall be final and executory
after ten (10) calendar days from receipt thereof by the parties. A WRIT OF
EXECUTION SHALL ISSUE ONLY UPON FILING WITH THE
COMMISSION OF A MOTION FOR EXECUTION BY THE PREVAILING
PARTY.

THE FINAL DECISION OR RESOLUTION OF THE COMMISSION OR OF
THE NATIONAL CONCILIATION AND MEDIATION BOARD (NCMB) IN
CONCILIATION OR MEDIATION PROCEEDINGS, MAY BE BROUGHT TO.
THE APPROPRIATE APPELLATE COURTS.

TO ENSURE THE RESTITUTION OF MONETARY AWARDS IN CASE THE
APPROPRIATE APPELLATE COURT ANNULS OR PARTIALLY OR
TOTALLY REVERSES THE MONETARY JUDGMENT, THE PROCEEDS OF
EXECUTION SHALL BE DEPOSITED IN AN ESCROW ACCOUNT WITH


AN ESCROW AGENT DESIGNATED BY THE NLRC OR THE NCMB. THE
PROCEEDS SHALL REMAIN IN OW UNTIL SUCH TIME THE
FINALITY OF THE DECISION SUED BY THE APPROPRIATE
APPELLATE COURT IS OBTAINED.

I

THE ABOVE PROCEEDS SHALL ONLY BE RELEASED AFTER ISSUANCE
OF AN ENTRY OF JUDGMENT BY THE APPROPRIATE APPELLATE
COURT AND UPON ISSUANCE BY THE NLRC OR THE NCMB, AFTER
MOTION OF THE PROPER PARTY, OF AN ORDER AUTHORIZING THE
RELEASE OF PROCEEDS OF EXECUTION. THE ORDER AUTHORIZING
THE RELEASE OF THE AMOUNT DEPOSITED IN ESCROW SHALL BE
DEEMED FINAL.

Any law enforcement agency may be deputized by the Secretary of Labor and
Employment or the Commission in the enforcement of decisions, awards or
orders.

SECTION 2. Repealing Clause. - All laws, decrees, executive orders or rules
and regulations inconsistent with this Act are hereby repealed, amended or
modified accordingly

SECTION 3. Effectivity. - This Act shall take effect after fifteen (15) days
following its publication in at least two (2) newspapers of general circulation.

Approved,