Crucial failure

The timely payment of a cash or surety bond is a jurisdictional requirement for the perfection of the appeal by employers to the NLRC. If no bond is posted within the period to perfect the appeal, the case will be dismissed even if a motion to reduce the bond has been filed and yet unresolved. This is the ruling reiterated in this case of Raffy and Manny.

Raffy and Manny were hired by a manpower service corporation (TMS) to work at the food and beverage section of the casino gaming area of a five star hotel (HHM). On or before the end of each month, the hotel regularly informs Raffy and Manny and other employees of their next month shift assignment in appropriate memoranda posted on the hotel’s bulletin boards for guidance and compliance.

On November 28, 1997 when Raffy went to see the Food and Beverage Service Manager to secure permission to go on sick leave, he discovered that his shift assignment for December which had been previously posted was cancelled. Greatly alarmed, Raffy inquired from the manger and the latter said the cancellation was a management decision. Undaunted he still managed to talk to the General Manager (GM) who promised to call for him after working for his stay. But nothing more came out of that promise despite his several attempts to reach the GM.

Manny was likewise dismissed in a similar manner — without previous written notice and investigation, He just discovered to his amazement that his name was no longer in the December 1997 assignment schedule of the hotel.

So on January 8, 1998 Raffy and Manny filed a complaint for illegal dismissal against the hotel (HHM). The latter on the other hand denied the existence of employer-employee relationship with Raffy and Manny alleging that their employer was TMS.

But on May 27, 1999, the Labor Arbiter (LA) ruled that there was employer-employee relationship between them and held that Raffy and Manny were illegally dismissed. Accordingly the LA ordered HHM to reinstate them and pay them their back-wages, unpaid service charges and attorney’s fees.

On June 22, 1999, HHM appealed to the NLRC. But instead of posting the appeal bond it filed a Motion for Reduction of the Appeal Bond on June 28, 1999 as it was allegedly “suffering from the effects of financial recession and was in fact questioning the computation of the monetary award upon which the amount of the bond would be based.

On September 30, 1999 however, the NLRC dismissed HHM’s appeal for its failure to post a cash or surety bond within the period to perfect its appeal. HHM questioned this ruling contending that it timely filed before the NLRC its appeal of the LA’s decision and that it later filed the motion to reduce the bond. Thus it posited that the NLRC should have just resolved said motion instead of summarily dismissing its appeal. Was HHM correct?

No. Under the NLRC Revised Rules of Procedure (Rule VI, Section 6), no motion to reduce bond shall be entertained except on meritorious grounds and upon posting of a bond in a reasonable amount in relation to the monetary award.

The mere filing of a motion to reduce bond without posting any a bond in reasonable amount shall not stop the running of the period to perfect the appeal.

Liberal construction of this rule is allowed only in meritorious cases where the party involved demonstrates a willingness to abide by the rules by posting a partial bond.

The requirement that the employer post a cash or surety bond to perfect its/his appeal is apparently intended to assure the workers that if they prevail in the case, they will receive the money judgment in their favor upon the dismissal of the employer’s appeal. It is intended to discourage employers from using an appeal to delay or even evade their obligation to satisfy the employee’s just and lawful claims. Liberal construction of the rules shall not therefore be applied where it would render futile this very purpose (The Heritage Hotel Manila vs. NLRC et. al., G.R. 180478-79, September 3, 2009).

Note: Books containing compilation of my articles on Labor Law and Criminal Law (Vols. I and II) are now available. Call Tel. 7249445.

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E-mail at: jcson@pldtdsl.net –Jose C. Sison (The Philippine Star)