Manual of Instructions for NLRC Sheriffs

Purpose and construction standards

The Manual must be construed to attain a just, expeditious, and inexpensive execution of judgments of the National Labor Relations Commission (NLRC) or any of its Labor Arbiters.
The same execution objectives apply to decisions involving the Philippine Overseas Employment Administration (POEA) and the Supreme Court in proper cases.
In the absence of any applicable provision in the Manual, pertinent provisions of the Revised Rules of Court of the Philippines and prevailing jurisprudence may be applied by analogy and in a suppletory character to carry out the execution objectives, whenever practicable and convenient.

The sheriff: role, duties, and conduct

The sheriff is a public officer who exercises duties and functions within the limits of authority and jurisdiction defined by law.
The sheriff must serve all writs and execute all processes, and must carry into effect all decisions, orders, or awards of the NLRC or its Labor Arbiters, the POEA, and the Supreme Court in proper cases.
Only bonded sheriffs may serve writs of execution involving the taking, holding, or delivering of money or property in trust for the prevailing party.
The sheriff’s bond required by law is determined by the Commission and is conditioned, among others, for delivery or payment to the Government or entitled persons of all property or sums of money that may officially come into the sheriff’s control and custody.
The sheriff must conduct himself at all times in an upright manner.
The sheriff’s first and primary duty is to implement the writ of execution, and in doing so the sheriff must exert every reasonable effort to achieve the writ’s purpose.

Writ of execution: validity and required content

The writ of execution is an order directing the sheriff to enforce, implement, or satisfy final decisions, orders, or awards of the NLRC or its Labor Arbiters, the POEA, and the Supreme Court in proper cases.
A writ of execution is valid only for sixty (60) days from receipt by the sheriff or other proper officer.
The writ of execution must issue in the name of the Republic of the Philippines from the NLRC/Labor Arbiter, the POEA, or the Supreme Court in proper cases.
The writ must include the dispositive portion of the decision, order, or award sought to be executed.
For payment of a sum of money, the writ must require the sheriff to serve it on the losing party (or any person required by law to obey it) before satisfying the judgment:
- first from personal property, and
- if no sufficient personal property exists, then from real property.
For reinstatement, the writ must require service on the losing party (or person required by law to obey), and the losing party may be punished for contempt for disobedience of the decision, order, or award.

Execution of judgments: what may be levied

Only the properties of the losing party are subject to execution, except properties exempted by law, including the following:
- the losing party’s family home constituted under the Civil Code or Family Code, or the homestead where he resides, and land necessarily used in connection with it, subject to legal limits;
- necessary clothing of the losing party and family;
- household furniture and utensils necessary for housekeeping used for that purpose, which the losing party may select, with a value not exceeding the amount fixed by law;
- provisions for individual or family use sufficient for three (3) months;
- the professional libraries of specified professionals (attorneys, judges, physicians, pharmacists, dentists, engineers, surveyors, clergymen, teachers, and other professionals) not exceeding the amount fixed by law;
- so much of earnings for personal services within the month preceding the levy as is necessary for the support of the losing party’s family;
- all monies, benefits, privileges, or annuities accruing or growing out of life insurance;
- tools and instruments necessarily used in trade or employment valued not exceeding Three Thousand Pesos (P3,000.00);
- other properties specially exempted by law.
For a money judgment, the sheriff must enforce execution by:
- levying on all real and personal property of the losing party that may be disposed of for value and is not exempt; or
- levying on a sufficient amount of such property if there is sufficient property.
The sheriff must sell the levied property at public auction to the highest bidder and deposit proceeds with the Cashier of the NLRC or Cashier of the POEA, as the case may be.
Released proceeds are subject to release only upon orders from the Labor Arbiter, NLRC, or POEA that issued the writ.
If payments are made in checks, the checks must be issued in the name of the NLRC or POEA, as the case may be.
Any excess proceeds over the judgment and accruing costs must be delivered by the proper Cashier to the losing party or parties who own the sold property, unless the judgment or order directs otherwise.
When more property exists than sufficient, the sheriff must levy only on the part amply sufficient to satisfy the judgment and costs, within the sheriff’s view.
A losing party may satisfy execution voluntarily by tendering payment, by depositing the amount with the Cashier of the NLRC or POEA, and the deposit is released only upon orders of the Labor Arbiter or the NLRC/POEA that issued the writ.

Levy mechanics: personal, real, garnishment; effects

Levy is the act of taking possession and control by the sheriff or proper officer of sufficient property of the losing party to satisfy the decision, order, or award.
A sale not preceded by a valid levy is void, and the purchaser acquires no title.
A valid levy on personal property requires possession and control by the sheriff, including:
- for personal property capable of manual delivery: taking and safely keeping it after issuing the corresponding receipt;
- for stocks/shares or interests in stocks/shares: leaving with the president or managing agent a copy of the decision/order/award and a notice that the stock/interest is levied pursuant thereto;
- for debts and credits and personal property not capable of manual delivery: leaving with the person owing the debts, or having possession/control of the credits or property, or with the agent—(i) a copy of the decision/order/award and (ii) notice that the credits/debts and other property are levied;
- for the losing party’s interest in property of a decedent’s estate (heir/legatee/devisee): serving a copy of the decision/order/award and a notice of levy on the executor/administrator/other personal representative, and filing and serving copies on the clerk of court where the estate is settled and on the heir/legatee/devisee concerned.
If the property to be levied is in custodia legis, copies of the decision/order/award and notice must be filed with the proper court, and notice of levy must be served on the custodian of the property.
Garnishment is the levy of money, goods, or chattels and/or an interest therein belonging or owing to a losing party in the possession or control of a third party.
Garnishment is effected by serving notice to the third party (the garnishee) requiring him to hold the garnished property subject to further orders of the NLRC/Labor Arbiter and the POEA.
When garnished property consists of money deposited with a bank or third party, the Labor Arbiter orders that it be released only to the Cashier of the NLRC or POEA, as the case may be.
Real property may be levied in these ways:
- If the real property (or growing crops thereon) stands on the register of deeds records in the name of the party against whom levy is issued: file with the register of deeds a copy of the decision/order/award with a description and a notice that it is levied, and leave copies with the occupant if any; if under the land registration system, include certificate number and volume/page reference; the register of deeds must index levies under this paragraph in the name of both prevailing and losing party.
- If the real property (or growing crops thereon or interest therein) belongs to the party against whom levy is issued but is held by another person or stands on the records in another person’s name: file with the register of deeds a copy of the decision/order/award with a description and a notice; leave copies with the occupant if any and with other persons/agents found within the province or city or at the residence of either if within the province or city; if under the land registration system, include certificate number and volume/page reference; the register of deeds must index levies under this paragraph in the names of the prevailing party, losing party, and the person holding the property or whose name it stands under the records.
A levy on execution creates a lien in favor of the prevailing party over the losing party’s right, title, or interest in the property at the time of levy.
For debts and credits, persons holding credits or similar personal property belonging to the losing party, or owing debts to the losing party, become liable for the amount of such credits/debts/property until the levy is discharged or any judgment is satisfied, unless:
- such property is delivered or transferred, or
- such debts are paid,
  to the sheriff or other proper officer issuing the writ.

Third-party claims: affidavit, hearing, suspension, and bonds

A third party claim is a claim by a person not a party to the case who asserts title to or right to possession of the property levied upon.
When property is claimed by someone other than the losing party or his agent, the claimant must:
- make an affidavit stating grounds of title/right to possession; and
- file it with the sheriff, with copies served on the Labor Arbiter or proper officer issuing the writ and on the prevailing party.
Upon receipt of a third-party claim, proceedings regarding the execution are automatically suspended, and the Labor Arbiter or proper officer must:
- conduct a hearing with due notice to all parties concerned; and
- resolve validity of the claim within ten (10) working days from receipt.
The Labor Arbiter’s decision is appealable to the Commission within ten (10) working days from notice, and the Commission must resolve the appeal within the same ten (10) working days period.
Execution proceeds despite the third-party claim if the prevailing party posts an indemnity bond in a sum not less than the value of the property levied.
If there is disagreement on the value, the value is determined by the Labor Arbiter, NLRC, or POEA issuing the writ, as the case may be.
If the third-party claim is declared valid, the sheriff must immediately release the property to the third-party claimant and lift/discharge the levy.
If the third-party claim is found to have no factual or legal basis, the sheriff must proceed with execution as if no third-party claim had been filed.

Sale on execution: notice, auction rules, and conveyance

No sale on execution proceeds without notice of sale describing the property, its location, the date, time, place of sale, and the terms and conditions.
Notice requirements differ by property type:
- Perishable property: post written notice of time and place in three (3) public places in the municipality/city where sale is to take place for such time as the sheriff deems reasonable, considering the property’s character and condition.
- Other personal property: post similar notice in three (3) public places for not less than five (5) nor more than ten (10) days.
- Real property: post for twenty (20) days in three (3) public places in the municipality/city where property is situated; if the assessed value exceeds fifty thousand pesos (P50,000.00), publish a copy of the notice once a week for two (2) consecutive weeks in a newspaper published or with general circulation in the province/city (and if there are newspapers in English and/or Filipino, publication must be in one such newspaper).
- Written notice of the sale must be given to the losing party.
An officer who sells without the prescribed notice forfeits five thousand pesos (P5,000.00) to any party injured, in addition to actual damages, and both are recovered in a single proper action.
A person who willfully removes or defaces posted notice before the sale forfeits five thousand pesos (P5,000.00) to any person injured, recovered in any proper action.
Any execution sale without required notice is null and void and vests no title in the purchaser.
The losing party may prevent a sale at any time before sale by paying the amount required by the execution and the costs incurred.
Sales must be at public auction to the highest bidder, between 9:00 a.m. and 5:00 p.m.
After sufficient property is sold to satisfy execution, no more property shall be sold.
For real property consisting of several known lots, the sheriff sells separately, unless a third person requires separate sale of a portion claimed by him.
For personal property capable of manual delivery, it must be sold within view of those attending and in parcels likely to bring the highest price.
If the losing party is present, he may direct the order of selling real or personal property when several known lots or parcels are sellable advantageously separately.
Neither the sheriff nor his deputy may become a purchaser or have any direct or indirect interest in any purchase.
If a purchaser refuses to pay the bid amount, the sheriff may resell to the highest bidder and is not responsible for the resulting loss; the Labor Arbiter or proper officer may order payment of the loss with costs and may punish refusal for contempt if the order is disobeyed.
Loss payments benefit the person entitled to execution proceeds unless the execution is fully satisfied, in which case proceeds benefit the losing party.
When a purchaser refuses to pay, the sheriff may reject any subsequent bid from that person.
When the purchaser is the prevailing party and no third-party claim is filed, he need not pay if the bid does not exceed the judgment; otherwise he pays only the excess.
The sheriff may adjourn any sale upon written consent of the prevailing party and losing party to a date agreed upon in writing.
Without such agreement, the sheriff may adjourn sale from day to day if necessary to complete the sale on the day fixed in the notice.
Conveyance for personal property capable of manual delivery: upon payment, the sheriff must deliver the property and, if desired, execute and deliver a certificate of sale; the sale conveys all rights the losing party had in the property on the day of levy.
Conveyance for personal property not capable of manual delivery: upon payment, the sheriff executes and delivers a certificate of sale; the certificate conveys all rights the losing party had in the property on the day of levy.
Conveyance for real property:
- the sheriff gives the purchaser a certificate of sale containing (1) particular description, (2) price paid for each distinct lot/parcel, and (3) the whole price paid; and
- a duplicate certificate is filed with the Register of Deeds of the province/city where property is situated.
If property sold is claimed by a third party, the certificate of sale must indicate the third-party claim.

Redemption of real property and effects

Real property sold (or any part sold separately) may be redeemed from the purchaser within the redemption rules, by:
- the losing party or his successor in interest; or
- a creditor with a lien by attachment, judgment, or mortgage on the property (or part) subsequent to the judgment under which the property was sold; such creditor is called a redemptioner.
The losing party or redemptioner may redeem within twelve (12) months after registration of the sale by paying:
- the purchaser’s amount,
- plus one per cent (1%) per month interest up to the time of redemption,
- plus assessments or taxes the purchaser paid after purchase,
- plus (if purchaser is also a creditor with prior lien to the redemptioner’s lien other than the judgment) the amount of that other lien with interest.
After a redemption, property may again be redeemed within sixty (60) days after the last redemption, by paying:
- the last redemption amount,
- plus two per centum (2%), plus assessments/taxes paid after the last redemption by the last redemptioner, with interest on the paid amounts, and
- plus amounts of liens held by the last redemptioner prior to his own, with interest.
Successive redemptions may be made by any redemptioner from any previous redemptioner within sixty (60) days after the last redemption, using the same payment structure referencing the last redemption.
Written notice of any redemption must be given to the sheriff who made the sale and a duplicate filed with the Register of Deeds of the province/city.
If the redemptioner pays assessments/taxes or has or acquires any lien other than the lien under which redemption is made, notice of those items must be given and filed similarly.
If notice is not filed, the property may be redeemed without paying the assessments, taxes, or liens referenced by the missed notice.
If the losing party redeems, payments must follow the redemption requirements applicable to redemptioners; upon redemption, the effect of the sale terminates and the losing party is restored to his estate.
The person receiving redemption payment must execute and deliver a certificate of redemption acknowledged or approved before a notary public or other officer authorized to take conveyance acknowledgments.
The certificate of redemption must be filed and recorded with the Register of Deeds, and the Register of Deeds must note the record in the margin of the record of the certificate of sale.
Redemption payments may be made to the purchaser or redemptioner, or for him, to the sheriff who made the sale.
A redemptioner must produce and serve with the redemption notice to the sheriff or redemption payment party:
- a certified copy of the judgment/order under which the redemptioner claims the right to redeem, or a certified memorandum of the record if redeeming upon mortgage or other liens;
- a copy of any assignment necessary to establish the claim, verified by the affidavit of the redemptioner or subscribing witness;
- an affidavit showing the amount actually due on the lien at the time of redemption.
If no redemption is made within twelve (12) months after the sale, the purchaser or his assignee is entitled to conveyance and possession.
If redemption occurs and sixty (60) days pass after the last redemption without further redemption and notice, the last redemptioner or his assignee is entitled to conveyance and possession.
The losing party retains the entire twelve (12) month period from date of registration of sale to redeem.
The deed conveying the property is executed by the sheriff making the sale or his successor in office, with the same validity as if executed by the original sheriff.
Upon delivery of the deed, the purchaser or redemptioner (or assignee) is substituted and acquires the losing party’s right, title, interest, and claim as of the time of levy, except as against the losing party in possession where substitution becomes effective as of the deed date.
The sheriff must give possession to the purchaser or last redemptioner unless a third party actually holds the property adversely to the losing party.
If the purchaser (or assignee) fails to recover possession because of irregularities in the sale proceedings, reversal or setting aside of the judgment, exemption of the property from execution, or third-party vindication, the purchaser may in a proper action recover from the prevailing party the price paid with interest (or so much as has not been delivered to the losing party).
Alternatively, the purchaser may seek revival by motion after notice of the original judgment in the purchaser’s name for the full price with interest or so much as has been delivered to the losing party.
The revived judgment has the same force and effect as an original judgment would have as of the date of revival and has no further effect beyond that.

Sheriff return and enforcement limits

The writ of execution must be made returnable to the Labor Arbiter or proper officer who issued it at any time not less than ten (10) days nor more than sixty (60) days after receipt by the sheriff.
The sheriff must set forth in writing on the writ’s back the whole proceedings and file it with the Labor Arbiter or proper officer for preservation with case records.
Failure to make the return within the stated period subjects the sheriff to a fine of not less than PHP 500.00, or suspension for fifteen (15) days without pay, or both.
If the judgment/order is returned unsatisfied wholly or partially, the sheriff must not execute further unless an alias writ of execution is duly issued.
The sheriff must not accept or receive any deposit in trust with a condition that execution shall not issue pending appeal before the Supreme Court.
If the losing party (or his agent/representative) refuses or prohibits entry to the place where executed property is located or kept, the prevailing party may apply to the Labor Arbiter for a break-open order, and such order may be issued only after due notice and hearing.

Uniforms, assignments, storage, fees, and delegation

Sheriffs and deputy sheriffs must wear uniforms as prescribed by the Commission, wear badges, and carry identification cards controlled by the Commission for proper identification while enforcing the writ.
The Labor Arbiter or proper officer issuing the writs must conduct a raffle for purposes of assignment to sheriffs.
Levied property must be inventoried and stored in a bonded warehouse wherever available, or in a secured place determined by the sheriff with notice to and conformity of the losing party or third-party claimant.
If there is disagreement on storage, the matter is referred to the Labor Arbiter or proper officer who issued the writ for proper disposition.
Sheriffs must inform the Labor Arbiter or proper officer of corresponding storage fees, furnishing parties a copy of the inventory.
Storage fees are shouldered by the losing party.
Questions relating to writ enforcement must be referred immediately to the Labor Arbiter or proper officer who issued the writ for resolution.
Sheriffs and deputy sheriffs are entitled to reimbursements of actual expenses in accordance with Section 7 of Rule 141, as amended.
Sheriffs must be provided a cash advance of PHP 300.00 at the beginning of each month for transportation expenses, liquidated at month’s end through submission of statements of expenses and itineraries approved by the Labor Arbiter or proper officer issuing the writ.
Execution fees payable to the NLRC or POEA charged against the losing party are:
- For awards less than PHP 5,000.00: PHP 200.00;
- PHP 5,000.00 or more but less than PHP 20,000.00: PHP 400.00;
- PHP 20,000.00 or more but less than PHP 50,000.00: PHP 600.00;
- PHP 50,000.00 or more but less than PHP 100,000.00: PHP 800.00;
- PHP 100,000.00 or more but not exceeding PHP 150,000.00: PHP 1,000 plus PHP 10.00 for every PHP 1,000.00 in excess of PHP 150,000.00.
For reimbursement of actual expenses, sheriffs and deputy sheriffs must submit statements of expenses and travel itineraries to the Labor Arbiter or proper officer before enforcing the writ.
Where there are no regional or sub-regional arbitration branches, execution of judgment may be delegated by the Labor Arbiter or POEA that issued the writ to the City or Provincial Sheriffs as applicable.
The delegated sheriff must make his return to the Labor Arbiter or POEA within sixty (60) days from receipt of the writ.