Issuances of the Department of Labor and Employment and its Attached Agencies

Section 1

(a) A writ of execution may be issued motu proprio or on motion, upon a decision or order that has become final and executory. (b) If an appeal has been duly perfected and finally resolved by the Commission, a motion for execution may be filed before the Labor Arbiter, when the latter has possession of the case records or upon submission of certified true copies of the decisions or final order/s sought to be enforced including notice of decision or order and the entry of judgment, copy furnished the adverse party. (c) Except that, as provided for in Section 19 of Rule V in relation to Section 9 of this Rule, and in those cases where partial execution is allowed by law, the Labor Arbiter shall retain duplicate original copies of the decision to be implemented and proof of service thereof for the purpose of immediate enforcement. (1a)

Section 1

Assumption of Jurisdiction of labor dispute which causes or likely to cause a strike or lockout in an industry indispensable to the national interest will be subject to the rules enunciated in Department Order No. 40-H-13, series of 2013, or any other rules/laws on assumption of jurisdiction that may be issued. 15 December 2017 Amended Rules on Employees' Compensation As amended by ECC Board Resolution No. 15-07-34, July 27, 2015 July 21, 1987 Statement of Authority By virtue of the powers vested upon the Employees' Compensation Commission under the Labor Code of the Philippines, the following Rules are hereby adopted to implement the provisions of Title II, Book IV of this Code.

Section 1

(a) An employee shall be entitled to an income benefit for permanent total disability if all of the following conditions are satisfied: (1) He has been duly reported to the System; (2) He sustains the permanent total disability as a result of injury or sickness; and (3) The System has been duly notified of the injury or sickness which caused his disability. (b) The following total disabilities shall be considered permanent: (1) Temporary total disability lasting continuously for more than 120 days, except as otherwise provided for in Rule X hereof; (2) Complete loss of sight of both eyes; (3) Loss of two limbs at or above the ankle or wrist; (4) Permanent complete paralysis of two limbs; (5) Brain injury resulting in incurable imbecility and insanity; and (6) Such cases as determined by the System and approved by the Commission.

Section 2

Pursuant to Art. 224 (now 230) of the Labor Code, as amended, a decision or order may be executed on motion within five (5) years from the date it becomes final and executory. After the lapse of such period, the judgment shall become dormant, and may only be enforced by an independent action before the Regional Arbitration Branch of origin and within a period of ten (10) years from date of its finality. (8a)

Section 2

Period of Entitlement. — (a) The full monthly income benefit shall be paid for all compensable months of disability. (b) After the benefit under the Employees' Compensation shall have ceased as provided under the preceding paragraph, and if the employee is otherwise qualified for benefit for the same disability under another law administered by the System, he shall be paid a benefit in accordance with the provisions of that law. This paragraph applies to contingencies which occurred prior to May 1, 1978. (c) Except as otherwise provided for in other laws, decrees, orders or letters of instructions, the monthly income benefit shall be guaranteed for 5 years and shall be suspended under any of the following conditions: (1) Failure to present himself for examination at least once a year upon notice by the System: 1.1. Compliance with the said requirement shall lift the suspension and the obligation of the System to return the suspended EC PTD benefits automatically arises. (as provided under EC Board Resolution No. 10-02-03, dated Feb. 26, 2010) (2) Failure to submit a quarterly medical report certified by his attending physician as required under Sec. 5 of Rule IV hereof; (3) Complete or full recovery from his permanent disability; or (4) Upon being gainfully employed.

Section 3

(a) In the case of the SSS: (1) Any employee entitled to permanent total disability benefit shall be paid by the System a monthly income benefit as defined in Sec. 9 (a), Rule VI of these Rules. (b) The number of months of paid coverage shall be the number of monthly contributions remitted to the System including contributions other than for Employees' Compensation if paid before March 31, 1975. The full monthly income benefit shall be paid for all compensable months of disability. (c) The first day preceding the semester of temporary total disability shall be considered for purposes of computing the monthly income benefit for permanent total disability.

Section 3

The perfection of an appeal shall stay the execution of the decision of the Labor Arbiter except execution for reinstatement pending appeal. (9a)

Section 4

A petition for certiorari with the Court of Appeals or the Supreme Court shall not stay the execution of the assailed decision unless a restraining order is issued by said courts. (10a)

Section 4

(a) Each dependent child, but not exceeding five, counted from the youngest and without substitution, shall be entitled to 10 percent of the monthly income benefit of the employee. These Rules shall not apply to causes of action which accrued before May 1, 1978.

Section 5

(a) The new amount of the monthly income benefit computed under these amended Rules shall be applicable to all contingencies occurring on or after January 1, 1980. However, for contingencies which occurred before May 1, 1978, the limitation of P12,000 or 5 years, whichever comes first, shall be enforced. In the case of the SSS, the present monthly income benefit of current pensioners shall be increased by 20 percent effective January 1, 1980. In case of the GSIS, the monthly income benefit of current pensioners shall be adjusted and recomputed to reflect the 20 percent increase over the benefit under PD 1146 effective January 1, 1980.

Section 5

In case a motion to lift Entry of Judgment is filed, the execution proceedings shall not be suspended and the records of the case shall not be elevated to the Commission unless ordered otherwise. (En Banc Resolution No. 11-12, Series of 2012)

Section 6

Except the benefit to dependent children under Section 4 of this Rule, the aggregate monthly benefit payable, in the case of the GSIS, shall in no case exceed the monthly wage or salary actually received by the employee as of the date of his permanent total disability.(ECC Resolution No. 2819, August 9, 1984).

Section 6

Within two (2) working days from receipt of a motion for the issuance of a writ of execution which shall be accompanied by a computation of a judgment award, if necessary, the Commission or the Labor Arbiter may schedule a pre-execution conference to thresh out matters relevant to execution including the final computation of monetary award. The pre-execution conference shall not exceed fifteen (15) calendar days from the initial schedule, unless the parties agreed to an extension. Any order issued by the Labor Arbiter in the pre-execution conference is not appealable, subject to the remedies available under Rule XII. (2a)

Section 7

The writ of execution shall issue in the name of the Republic of the Philippines signed by the Commission or Labor Arbiter ordering the Sheriff to execute the decision, order, or award of the Commission or Labor Arbiter, and must contain the complete name of the party, whether natural or juridical, against whom the writ of execution was issued, the dispositive portion thereof, the amount, if any, to be demanded, and all legal fees to be collected from the losing party or any other person required by law to obey the same. A writ of execution shall be effective for a period of five (5) years from date of entry of judgment or issuance of certificate of finality. (3a) (As amended by En Banc Resolution No. 11-12, Series of 2012; En Banc Resolution No. 06-18, Series of 2018)

Section 8

In executing a decision, resolution or order, the Sheriff, or other authorized officer acting as Sheriff of the Commission, shall serve the writ within three (3) days from receipt of the same, subject to the requirements of Sections 15 and 16 of this Rule and shall be guided strictly by these Rules and by the Manual on Execution of Judgment, which shall form part of these Rules. In the absence of applicable rules, the Rules of Court, as amended, shall be applied in a suppletory manner. (7a)

Section 9

(a) Upon the issuance of a writ of execution by the Labor Arbiter or the Commission, the Sheriff shall immediately furnish the losing party with a copy thereof by registered mail or by courier authorized by the Commission and enforce the judgment award, as far as practicable, in the following order: Cash bond Bank deposits Surety bond Should the cash bond or surety bond be insufficient, the Sheriff shall execute the monetary judgment by levying on the personal property, and if insufficient, the real property of the losing party not exempt from execution, sufficient to cover the judgment award, which may be disposed of for value at a public auction to the highest bidder. If the losing party has no properties or his/her properties are insufficient and the bonding company refuses to comply with the writ of execution, the sheriff shall proceed to levy on the personal property, and if insufficient, the real property of the bonding company, without prejudice to contempt proceedings against its president, officers or authorized representatives. Moreover, the bonding company shall be barred from transacting business with the Commission. (As amended by En Banc Resolution No. 05-14, Series of 2014; En Banc Resolution No. 14-15, Series of 2015) Cash bond Bank deposits Surety bond Should the cash bond or surety bond be insufficient, the Sheriff shall execute the monetary judgment by levying on the personal property, and if insufficient, the real property of the losing party not exempt from execution, sufficient to cover the judgment award, which may be disposed of for value at a public auction to the highest bidder. If the losing party has no properties or his/her properties are insufficient and the bonding company refuses to comply with the writ of execution, the sheriff shall proceed to levy on the personal property, and if insufficient, the real property of the bonding company, without prejudice to contempt proceedings against its president, officers or authorized representatives. Moreover, the bonding company shall be barred from transacting business with the Commission. (As amended by En Banc Resolution No. 05-14, Series of 2014; En Banc Resolution No. 14-15, Series of 2015) (b) If the bonding company refuses to pay or the bank holding the cash deposit of the losing party refuses to release the garnished amount despite the order or pertinent processes issued by the Labor Arbiter or the Commission, the president or the responsible officers or authorized representatives of the said bonding company or the bank who resisted or caused the non-compliance shall be either cited for contempt, or held liable for resistance and disobedience to a person in authority or the agents of such person as provided under the pertinent provision of the Revised Penal Code. This rule shall likewise apply to any person or party who unlawfully resists or refuses to comply with the break open order issued by the Labor Arbiter or the Commission. For this purpose, the Labor Arbiter or the Commission may issue an order directing the sheriff to request the assistance of law enforcement agencies to ensure compliance with the writ of execution, orders or processes. A bonding company cited for contempt, or for an offense defined and punishable under the pertinent provision of the Revised Penal Code shall be barred from transacting business with the Commission. (c) Proceeds of execution shall be deposited with the Cashier of the concerned Division or Regional Arbitration Branch, or with an authorized depositary bank. Where payment is made in the form of a check, the same shall be payable to the Commission. (d) For monetary judgment on cases involving overseas Filipino workers, the manner of execution shall be in accordance with Republic Act No. 10022. (As amended by En Banc Resolution No. 11-12, Series of 2012) (e) In case of voluntary tender of payment by the losing party and – in the presence of the prevailing party, it shall be effected before the Labor Arbiter or the Commission, as the case may be;in the absence of the prevailing party, it shall be effected by immediately depositing the same, in cash or in check, with the Cashier of the NLRC or authorized depositary bank and shall be released only upon order of the Commission or Labor Arbiter who issued the writ. in the presence of the prevailing party, it shall be effected before the Labor Arbiter or the Commission, as the case may be; in the absence of the prevailing party, it shall be effected by immediately depositing the same, in cash or in check, with the Cashier of the NLRC or authorized depositary bank and shall be released only upon order of the Commission or Labor Arbiter who issued the writ. Payment in the form of check shall be in the name of the Commission. (5a)

Section 10

Should the losing party, his agent or representative refuse or prohibit the sheriff or his authorized representative entry to the place where the property subject of execution is located or kept, the prevailing party may file a motion for a break open order with the Commission or Labor Arbiter concerned who, after due notice and hearing, shall resolve the same. (En Banc Resolution No. 11-12, Series of 2012)

Section 11

Where the complainant or respondent dies after the entry of judgment or issuance of certificate of finality, he/she may be substituted by his/her heirs. However, the liability of the substituting heirs of the respondent shall be up to the extent of the assets left by the decedent. Execution thereon may issue or one already issued may be enforced in accordance with the applicable provisions of this Rules.. (As amended by En Banc Resolution No. 01-17, Series of 2017; En Banc Resolution No. 06-18, Series of 2018) The sheriff shall submit to the Commission or Labor Arbiter a report before and after the sale. Proceeds of the sale should be deposited with the Cashier for proper disposition by the Commission or Labor Arbiter. (En Banc Resolution No. 11-12, Series of 2012)

Section 12

In case the decision includes an order of reinstatement, and the employer disobeys the directive under the second paragraph of Section 19 of Rule V or refuses to reinstate the dismissed employee, the Labor Arbiter shall immediately issue writ of execution, even pending appeal, directing the employer to immediately reinstate the dismissed employee either physically or in the payroll, and to pay the accrued salaries as a consequence of such non-reinstatement in the amount specified in the decision. The Labor Arbiter shall motu proprio issue a corresponding writ to satisfy the reinstatement wages as they accrue until actual reinstatement or reversal of the order of reinstatement. (En Banc Resolution No. 11-12, Series of 2012) The Sheriff shall serve the writ of execution upon the employer or any other person required by law to obey the same. If he/she disobeys the writ, such employer or person may be cited for contempt in accordance with Rule IX. (6a)

Section 13

A motion to quash shall be resolved by the Labor Arbiter within ten (10) working days from filing of said motion. The mere filing of a motion to quash shall not stay execution proceedings. (11a) (As amended by En Banc Resolution No. 11-12, Series of 2012)

Section 14

(a) If the property levied is claimed by any person other than the losing party, such person may file a third party claim not later than five (5) days from the last day of posting or publication of the notice of execution sale, otherwise the claim shall be forever barred. Such third party claim must comply with the following requirements: An affidavit stating title to property or right to the possession thereof and the property’s fair market value with supporting evidence; Payment of prevailing filing fee; and, In case the subject matter of the third party claim is a real property, posting of a refundable cash deposit of Twenty Thousand Pesos (P20,000) for the payment of republication of notice of auction sale. (As amended by En Banc Resolution No. 11-12, Series of 2012; En Banc Resolution No. 14-15, Series of 2015) (b) Where Filed. – The third party claim shall be filed with the Commission or Labor Arbiter where the execution proceeding is pending, with proof of service of copies thereof to the Sheriff and the prevailing party. (c) Effect of Filing and Posting of Bond. – The filing of a third party claim shall not suspend the execution proceedings with respect to the property subject of the third party claim, unless the third party claimant posts a cash or surety bond equivalent to the value of the levied property or judgment award, whichever is lower, and in accordance with Section 6 of Rule VI. The cash or surety bond shall be in lieu of the property subject of the third party claim. The cash or surety bond shall be valid and effective from the date of deposit or posting, until the third party claim is finally decided, resolved or terminated. This condition shall be deemed incorporated in the terms and conditions of the surety bond, and shall be binding on the third party claimant and the bonding company. The Labor Arbiter may require the posting of additional bond upon showing by the other party that the bond is insufficient. Upon approval of the bond, the Labor Arbiter shall issue an order releasing the levied property or a part thereof subject of the claim. (As amended by En Banc Resolution No. 14-15, Series of 2015) (d) Proceedings. – The propriety of the third party claim shall be resolved within ten (10) working days from submission of the claim for resolution. The decision of the Labor Arbiter is not appealable but may be elevated to the Commission and resolved in accordance with Rule XII hereof. In the event that the resolution of the third party claim is elevated to the Commission, the release of the bond shall be suspended. Pending resolution thereof, execution shall proceed against all other properties not subject of the third party claim. If the third party claim is denied with finality, the bond shall be made answerable in lieu of the property subject of the third party claim. (12a) (As amended by En Banc Resolution No. 14-15, Series of 2015)

Section 15

The writ of execution shall be returned to the Commission or Labor Arbiter immediately after the full satisfaction of the judgment award. The Sheriff enforcing the writ shall submit a report updating the Commission or Labor Arbiter who issued the writ of execution, whenever there is partial satisfaction or any development in the status of enforcement thereof. Failure on the part of the Sheriff to submit the report or return required under this Rule shall subject him/her to administrative fine under Rule XIV of this Rules. (13a, 14a) (As amended by En Banc Resolution No. 06-18, Series of 2018)

Section 16

The Chairman of the Commission may designate special Sheriffs and take any measure, under existing laws, to ensure compliance with the decisions, resolutions or orders of the Commission and those of Labor Arbiters. (15a)

Section 17

In case of total or partial reversal of judgment by the Court of Appeals, the execution proceedings shall be suspended insofar as the reversal is concerned notwithstanding the pendency of a motion for reconsideration on such judgment. However, where the judgment of the Court of Appeals is reversed by the Supreme Court, execution proceedings shall commence upon presentation of certified true copy of the decision and entry of judgment. (En Banc Resolution No. 11-12, Series of 2012)

Section 18

Where the executed judgment is totally or partially reversed or annulled by the Court of Appeals or the Supreme Court with finality and restitution is so ordered, the Labor Arbiter shall, on motion, issue such order of restitution of the executed award, except reinstatement wages paid pending appeal. (As amended by En Banc Resolution Nos. 11-12, Series of 2012 and 05-14, Series of 2014)

Section 19

When the return of a writ of execution issued against the property of a losing party shows that the judgment remains unsatisfied, in whole or in part, the prevailing party, at any time after such return is made, shall, upon motion, be entitled to an order from the handling Labor Arbiter who rendered the said judgment, requiring such losing party to appear and be examined concerning his/her property and income before such Labor Arbiter, at a specified time and place; and proceedings may thereupon be had for the application of the property and income of the losing party towards the satisfaction of the judgment. (n) (En Banc Resolution No. 05-14, Series of 2014; En Banc Resolution No. 06- 16, Series of 2016)

Section 20

A party or other person may be compelled, by an order of subpoena, to attend before the Labor Arbiter to testify as provided in the preceding section (examination of losing party’s property/income), and upon failure to obey such order or subpoena or to be sworn and subscribe, or to answer as a witness, may be punished for contempt as in other cases in accordance with Section 2 of Rule IX. Examinations shall not be unduly prolonged, but the proceedings may be adjourned from time to time, until the same are completed. All examinations and answers before the Labor Arbiter must be under oath, and when a corporation or other juridical entity answers, it must be on the oath of an authorized officer or agent thereof. (n) (En Banc Resolution No, 05-14, Series of 2014)

Section 21

(a) A prevailing party may file a verified motion to pierce the veil of corporate fiction during execution proceedings when the writ of execution could not be enforced or satisfied against the judgment debtor and there is evidence that: The corporate fiction is used as a vehicle to evade payment or satisfaction of a judgment award; or That corporation is a mere alter ego or business conduit of a judgment debtor, or was organized to make it an instrumentality, agency or adjunct of another corporation which is a respondent in a labor case; and Such other analogous cases. (b) The verified motion under this Section shall state the circumstances and ground/s relied upon that would warrant the piercing of the veil of corporate fiction of the subject corporation and be accompanied by a proof of service upon all parties to the case and the corporation sought to be pierced. (c) Proceedings. – Within five (5) calendar days from receipt of the motion, the losing party and the corporation sought to be pierced shall file their comment or opposition stating the grounds why the motion should be denied. Failure to do so shall be deemed as a waiver to file the same. A hearing shall be called within five (5) calendar days from the receipt of the comment/opposition or after the lapse of the period to file the same to determine the propriety of the motion. The motion shall be resolved within twenty (20) days from the date of last hearing. If the Labor Arbiter or the Commission finds that piercing of corporate veil is proper, a Writ of Execution shall be issued against the pierced corporation in order to satisfy the judgment award. (En Banc Resolution No. 14-17, Series of 2017)

Section 22

The procedure set forth in the preceding section shall likewise be applicable in the event that the properties of a judgment debtor were transferred to an individual to evade payment or satisfaction of a judgment award. (En Banc Resolution No. 14-17, Series of 2017)