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.

Substitution of Parties in Case of Death (Rule V, Section 20)

  • If a party dies during proceedings, the heirs may substitute the deceased party.
  • Enforcement of favorable judgment in such cases follows Section 11, Rule XI of the Rules.

Direct Contempt (Rule IX, Section 1)

  • Direct contempt includes acts committed near or in the presence of the NLRC Chairman, Commissioners, or Labor Arbiters that obstruct or interrupt proceedings.
  • Examples:
    • Use of intemperate language.
    • Offensive acts towards officials.
    • Refusal to be sworn or answer as witness.
    • Refusal to subscribe affidavits or sign minutes without justifiable reason.
  • Punishments:
    • Fine up to Php500.00 and imprisonment not exceeding 5 days if against the Commission or members.
    • Fine up to Php100.00 and imprisonment not exceeding 1 day if against a Labor Arbiter.
    • Refusal to pay fines results in subsidiary imprisonment (1 day per Php100 fine).
  • Procedure:
    • Immediate issuance of Order of Contempt and Commitment Order where applicable.
    • Deputization of security or police assistance for enforcement.
  • Remedies:
    • Appeal to the Commission within 5 calendar days with a Memorandum of Appeal and payment of Php500.00 appeal fee.
    • Execution of judgment suspended upon posting a bond of Php500.00.
    • Commission decisions on direct contempt are immediately executory and unappealable.

Indirect Contempt (Rule IX, Section 2)

  • Indirect contempt refers to misconduct not in direct presence of officials but which impedes justice.
  • Examples:
    • Misbehavior of NLRC officers or employees.
    • Disobedience or resistance to lawful orders, writs, or decisions.
    • Unlawful interference with processes or proceedings.
    • Unauthorized assumption of attorney or representative status.
    • Failure to obey subpoenas.
    • Use of derogatory or malicious statements in pleadings.
    • Baseless public statements undermining the administration of justice.
  • Initiation of Proceedings:
    • Motu proprio or motion of a party by the Commission or Labor Arbiter.
    • Verified petition if not initiated directly.
  • Respondent may file verified answer/comment within 10 calendar days.
  • Resolution period: 15 calendar days from receipt of answer/comment.
  • Punishments:
    • Fine of Php1,000 per act if against Commission or members.
    • Fine of Php500 per act if against Labor Arbiter.
    • Additional liability for damages where contempt involves violation of injunctions or omission of acts.
    • Fine imposed per each act in case of continued defiance.
  • Enforcement:
    • A writ of execution may be issued to enforce fines and damages.
  • Remedies:
    • Appeal to the Commission within 5 calendar days via Memorandum of Appeal and payment of Php500 appeal fee.
    • Execution of order not suspended unless a cash bond equivalent to the fine is posted.
    • Collected fines deposited in a Trust Fund.

Piercing the Corporate Veil (Rule XI, Sections 21 and 22)

  • A prevailing party may file a verified motion during execution proceedings to pierce corporate fiction when:
    • Corporate structure is used to evade judgment payment.
    • Corporation is alter ego, conduit, or instrumentality of judgment debtor.
    • Properties transferred to an individual to evade judgment.
  • Motion must state grounds and be served upon all parties and corporation sought to be pierced.
  • Procedure:
    • Comments/oppositions must be filed within 5 calendar days.
    • Hearing held within 5 calendar days after receipt of comments or lapse of filing period.
    • Resolution of motion within 20 days after last hearing.
  • If found proper, NLRC issues writ of execution against pierced corporation or individual for satisfaction of judgment.

Formal Attestation

  • The resolution was signed by all Commissioners, including the Chairman, and attested by the Acting Executive Clerk of Court.

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.