Failure to Post the Full Amount of Bond in NLRC Case by the Employer may not Result in Non Perfection of Appeal

Posting of a cash bond or surety bond is one of the requisites to perfect an appeal from the decision of the Labor Arbiter in a labor case.

In the case of Nuda vs. LGTM Corporation, Inc., [G.R. No. 245835] the Supreme Court (SC) held that there is no dispute that respondents therein filed an appeal before the NLRC and complied with the other requirements for perfecting an appeal, save for the posting of the full amount of the bond.

However, the NLRC, upon filing of respondents’ appeal, required them to post the differential amount between the judgment award and the sum of money previously tendered by them to complete the correct amount of the supersedeas bond.

Respondents complied with the said order of the NLRC and paid the differential amount of PhP322,317.30. Accordingly, the SC found that the liberal application of the requirement on the timely filing of the full amount of the appeal or supersedeas bond is justified under the circumstances:

1. the posting of a PhP71,831.73 bond upon filing respondents’ appeal;
2. full payment of the supersedeas bond in compliance with the Order of the NLRC; and
3. merit in their appeal.

Article 229 [formerly Article 223] of the Labor Code governs the appeal

in labor cases:

ART. 229. [223] Appeal. – Decisions, awards, or orders of the Labor Arbiter

are final and executory unless appealed to the Commission by any or both

parties within ten (10) calendar days from receipt of such decisions, awards, or orders. x x x:

xxxx

In case of a judgment involving a monetary award, an appeal by the employer may be perfected only upon the posting of a cash or surety bond issued by a reputable bonding company duly accredited by the Commission in the amount equivalent to the monetary award in the judgment appealed from.

The mandatory nature of posting a bond in appeals from the arbiter to the NLRC is also highlighted in Section 4(b ), Rule VI of the NLRC Rules, which states that “[a] mere notice of appeal without complying with the other requisites aforestated shall not stop the running of the period for perfecting an appeal.”

This requirement for the perfection of an appeal is meant to assure workers that if they prevail in the case, the monetary award will be given to them upon the dismissal of the employer’s appeal. Meanwhile, this requirement discourages employers from using an appeal to delay, or even evade, their obligation to satisfy their employees’ just and lawful claims.

This notwithstanding, this Court, in several cases, has relaxed the stringent requirement whenever justified.

These cases include instances in which (1) there was substantial compliance with the [NLRC] Rules, (2) surrounding facts and circumstances constitute meritorious grounds to reduce the bond, (3) a liberal interpretation of the requirement of an appeal bond would serve the desired objective of resolving controversies on the merits, or (4) the appellants, at the very least, exhibited their willingness and/or good faith by posting a partial bond during the reglementary period.

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