Placing NLRC and NCMB awards in Escrow downplays labor claims

Every labor dispute involves two opposing parties the worker on one side and the management on the other.A bill proposed by the ANGKLA partylist, HB 5430, aimed to amend the labor code that will have significant impact on labor claims governing the immediately “final and executory” nature of decisions issued by the National Labor Relations Commission (NLRC) and the National Conciliation and Mediation Board (NCMB).

ANGKLA proposes that to ensure the restituition of monetary awards in case the appropriate appellate court annuls or partially or totally reverses the monetary judgment, the proceeds of execution shall be deposited in an escrow account with an escrow agent designated by the nlrc or the ncmb. the proceeds shall remain in escrow until such time the finality of the decision issued by the appropriate appellate court is obtained.. The proceeds shall only be released after issuance of an entry of judgment by the appropriate appellate court and upon issuance by the nlrc or the ncmb, after motion of the proper party, of an order authorizing the release of proceeds of execution. the order authorizing the release of the amount deposited in escrow shall be deemed final.

ANGKLA pointed out that the amendment is proper as the problem of the immediately “final and executory” nature of decisions gains greater relevance considering the following factors: (a) the complainant will insist on the execution of the NLRC or NCMB decision despite the appeal; (b) even if the appellate courts overturn or modify the NLRC or NCMB decision, there is little hope of recovering anything through restitution; (c) more legal costs and expenses will be incurred in pursuing the case through the appellate courts and in applying for restitution of the judgment award

And this bill, definitely, is not in favor of labor, proposed by a partylist that projects itself as a protector of seafarers’ interest, and labor as a whole.

In most instances, workers run after benefits that are denied to them. Labor litigation takes years before it reaches the supreme court. In cases of seafarers with medical conditions, some incur huge debts to sustain their medication. Others die before the decision by the Supreme Court is released.

Under the present NLRC rules, workers can receive the judgement award immediately after the NLRC decision becomes final and executory.

With the new bill, the worker will wait for longer years before they receive the award.  In such a scenario, the Supreme Court said that “the judgment becomes illusory..” Instead of an instrument of solicitude and justice, the SC stressed that the delay in execution becomes a tool of oppression and inequity.

Gorecho, Dennis (July 17, 2015). Placing NLRC/NCMB awards in Escrow downplays labor claims, Pinoy Marino Rights. Retrieved from

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