Title
2017 Amendments to 2011 NLRC Rules
Law
National Labor Relations Commission
Decision Date
Aug 10, 2017
The National Labor Relations Commission's August 2017 amendments to the 2011 Rules of Procedure introduce provisions for the substitution of deceased parties, penalties for direct and indirect contempt, and the ability to pierce the corporate veil to enforce judgment awards against corporations evading payment.

Q&A (NATIONAL LABOR RELATIONS COMMISSION)

Pursuant to Article 225 [218], paragraph (a) of the Labor Code of the Philippines, as amended, the NLRC has the power to promulgate rules and regulations governing hearing and disposition of cases.

In case any of the parties dies during the pendency of the proceedings, he or she may be substituted by his or her heirs. If a favorable judgment is obtained by the complainants, it shall be enforced in accordance with Section 11, Rule XI of the 2011 NLRC Rules of Procedure.

Direct contempt includes disrespectful acts or misbehavior committed near or in the presence of the Chairman, any member of the Commission, or any Labor Arbiter that obstruct or interrupt proceedings. Examples include use of intemperate language, offensive acts towards officials, refusal to be sworn or answer as a witness, refusal to subscribe an affidavit or deposition, refusal to sign proceedings minutes without justifiable reason, and other analogous circumstances.

Penalties for direct contempt include fines and/or imprisonment. Against the Commission, the fine may not exceed Php500 and imprisonment not more than 5 days. Against a Labor Arbiter, the fine may not exceed Php100 and imprisonment not more than 1 day. Refusal to pay fine results in subsidiary imprisonment of 1 day per Php100 fine.

A person adjudged in direct contempt by a Labor Arbiter may appeal to the Commission within five calendar days by filing a Memorandum of Appeal with grounds and proof of payment of Php500 appeal fee. However, the judgment of the Commission on direct contempt is immediately executory and unappealable.

Examples include misbehavior of NLRC officers/employees, disobedience or resistance to lawful writs/orders, unlawful interference with proceedings, improper conduct impeding justice, impersonating attorney or representative, failure to obey subpoena, use of derogatory or malicious statements in pleadings, public baseless malicious statements against the Commission or Labor Arbiter, and other analogous grounds.

The Commission or Labor Arbiter may motu proprio or upon motion issue an Order to Show Cause. Otherwise, such an action can only be commenced through a verified petition. The respondent may file a verified Answer or Comment within 10 calendar days from receipt.

A person adjudged guilty of indirect contempt may be fined Php1000 per act if committed against the Commission or member, or Php500 if against a Labor Arbiter. If it involves violation of injunction or failure to perform an act, the respondent may be liable for damages plus costs including interest. If contempt is a series of acts, fines apply per act or day.

The motion or petition shall be resolved within a non-extendible period of 15 calendar days from receipt of the verified Answer or after lapse of the period to file same.

Yes. The person adjudged guilty may appeal the Labor Arbiter's Order to the Commission within five calendar days by filing a Memorandum of Appeal stating grounds and paying Php500 appeal fee. The appeal does not suspend execution unless a cash bond equivalent to the fine is posted.

It is a procedure allowing a prevailing party during execution proceedings to file a verified motion to pierce corporate fiction when the judgment cannot be satisfied from the judgment debtor, showing that the corporation is used to evade payment or is an alter ego/conduit of judgment debtor or another corporation.

The verified motion must state the circumstances and grounds for piercing, be served on all parties and the corporation. The losing party and corporation may file comment/opposition within 5 calendar days. A hearing is held within 5 calendar days from receipt or lapse. The motion is resolved within 20 days from last hearing.

A Writ of Execution shall be issued against the pierced corporation to satisfy the judgment award.

Yes. Section 22 provides that the same procedure is applicable if properties of a judgment debtor were transferred to an individual to evade payment or satisfaction of a judgment award.


Analyze Cases Smarter, Faster
Jur helps you analyze cases smarter to comprehend faster, building context before diving into full texts. AI-powered analysis, always verify critical details.