i. Perfection

When Appeal Bond May Be Reduced

While the posting of a cash or surety bond is indispensable to the perfection of an appeal in cases involving monetary awards from the decision of the LA, the Rules of Procedure of the NLRC nonetheless allows the reduction of the bond upon a showing of:

• The existence of a meritorious ground for reduction, and
• The posting of a bond in a reasonable amount in relation to the monetary award. (Philippine Touristers, Inc. and/or Alejandro R. Yague, Jr. v. Mas Transit Workers Union-Anglo-Kmu and its members, G.R. No. 201237, 2014).

Simultaneous filing of the motion to reduce bond and the posting of the reduced amounts to substantial compliance with Art. 223

Simultaneous filing of the motion to reduce bond and the posting of the reduced amounts to substantial compliance with Art. 229 [223]

While the bond requirement on appeals involving a monetary award has been relaxed in certain cases, this can only be done where there was substantial compliance with the rules or where the appellants, at the very least, exhibited willingness to pay by posting a partial bond. (Magdala Multipurpose v. KMLMS, G.R. 191138- 39, 2011).

Grounds

• Prima facie evidence of abuse of discretion on the part of LA;
• The decision, order or award was secured through fraud or coercion including graft and corruption;
• Pure questions of law; and
• Raised serious errors in the findings of facts which could cause grave or irreparable damage or injury to the appellant.

Additional Requirement: In case of judgment involving a monetary award, employer (appellant) may perfect the appeal of the LA’s decision only upon the posting of a cash or surety bond issued by a reputable bonding company duly accredited by the NLRC in the amount equivalent to the monetary award in the judgment appealed from.

REQUIREMENTS TO PERFECT APPEAL TO NATIONAL LABOR RELATIONS COMMISSION

Requisites

• Filed within the reglementary period;
• Memorandum of Appeal under oath;
• Appeal fee;
• Cash or surety bond, if the employer appeals a judgment involving a monetary award; and
• Proof of service to the adverse party.

Failure to Serve Copy of Memorandum of Appeal Not Jurisdictional

The mere failure of a party to serve his Memorandum of Appeal upon the opposing party does not bar the NLRC from giving due course to an appeal. Such failure is only treated as a formal lapse, an excusable neglect, and, hence, not a jurisdictional defect warranting the dismissal of an appeal. Instead, the NLRC should require the appellant to provide the opposing party copies of the notice of appeal and memorandum of appeal. (J. PB: Fernandez v. Botica Claudio, G.R. No. 205870, 2014)

No monetary award, no appeal bond required

If LA’s decision does not provide for a computation of the monetary award, no appeal bond is required to be filed.

When to file

Within 30 days from execution of the CBA. (Sec. 1, Rule XVII of D.O. 40-03)

Motion to Reduce Bond

General Rule: Motion to reduce bond does not toll the running of the period to perfect appeal.

Exception: See below (McBurnie v. Ganzon, G.R. Nos. 178034 & 178117, 2013)

McBurnie v. Ganzon Guidelines in Reduction of Appeal Bond

• The filing of a motion to reduce appeal bond shall be entertained by the NLRC subject to the following conditions:
• There is meritorious ground; and
• A bond in a reasonable amount is posted;
• For purposes of compliance with the second condition – bond in reasonable amount – a motion shall be accompanied by the posting of a provisional cash or surety bond equivalent to (10%) of the monetary award subject of the appeal, exclusive of damages and attorney's fees;
• Compliance with the foregoing conditions shall suffice to suspend the running of the 10- day reglementary period to perfect an appeal from the labor arbiter's decision to the NLRC;
• The NLRC retains its authority and duty to resolve the motion to reduce bond and determine the final amount of bond that shall be posted by the appellant, still in accordance with the standards of meritorious grounds and reasonable amount; and
• In the event that the NLRC denies the motion to reduce bond, or requires a bond that exceeds the amount of the provisional bond, the appellant shall be given a fresh period of 10 days from notice of the NLRC order within which to perfect the appeal by posting the required appeal bond.

NOTE: A substantial monetary award, even if it runs into millions, does not necessarily give the employer-appellant a ‘meritorious case’ and does not automatically warrant a reduction of the appeal bond. (Calabash Garments v. NLRC, G.R. No. 110827, 1996)

10% Appeal Bond is Provisional

The 10% requirement in McBurnie pertains to the reasonable amount which the NLRC would accept as the minimum of the bond that should accompany the motion to reduce bond in order to suspend the period to perfect an appeal under the NLRC rules. The 10% is based on the judgment award and should in no case be construed as the minimum amount of bond to be posted in order to perfect appeal. There is no room for a different interpretation when McBurnie made it clear that the percentage of bond set is provisional. (Sara Lee v. Macatlang, G.R. No. 180147, 2015)