In Philippine labor law, a victory at the Labor Arbiter level often comes with an order for immediate reinstatement. Under Article 229 (formerly 223) of the Labor Code, the reinstatement aspect of a decision is self-executory. This means that even if the employer appeals the case to the National Labor Relations Commission (NLRC), they are legally obligated to take the employee back—either physically or on payroll—pending the appeal.
However, theory often meets resistance in practice. When an employer refuses to open the doors, an employee must navigate a specific legal process to ensure the order doesn't remain a "paper victory."
1. The Nature of the Reinstatement Order
The moment a Labor Arbiter rules that an employee was illegally dismissed and orders reinstatement, two options are presented to the employer:
- Actual Reinstatement: The employee is admitted back to their previous position under the same terms and conditions.
- Payroll Reinstatement: If the employer has valid reasons not to admit the employee back physically (e.g., strained relations or the position no longer exists), they must still pay the employee's wages and benefits as if they were working.
Key Rule: The employer must choose one of these options and inform the Labor Arbiter of their choice within ten (10) days of receiving the decision.
2. Steps to Take When the Employer Refuses
If the employer ignores the order or refuses to comply, the employee should follow these procedural steps:
A. Motion for Issuance of a Writ of Execution
While the reinstatement order is "self-executory," you often need a Writ of Execution to compel the employer. You must file a motion before the Labor Arbiter of origin specifically asking for the enforcement of the reinstatement aspect.
B. The Role of the Sheriff
Once the Writ is issued, it is endorsed to an NLRC Sheriff. The Sheriff will:
- Serve the Writ of Execution to the employer.
- Demand that the employer reinstate the employee (physically or on payroll).
- If the employer still refuses, the Sheriff will submit a report to the Labor Arbiter.
C. Accrued Wages During the Refusal Period
One of the most powerful tools for the employee is the claim for accrued wages. If the employer refuses to reinstate you despite the order, they are liable to pay your salary from the time they received the decision until the case is finally resolved or the reinstatement is actually carried out.
- These wages are distinct from "backwages" (which cover the time between dismissal and the decision).
- Accrued wages can be collected through the garnishment of the employer's bank accounts.
3. Remedies Against a Defiant Employer
If the employer remains stubborn, the following legal avenues are available:
| Remedy | Description |
|---|---|
| Motion for Contempt | The NLRC or the Labor Arbiter can cite the employer for indirect contempt for disobeying a lawful order. |
| Garnishment of Accounts | The Sheriff can freeze the employer's bank accounts to satisfy the accrued payroll reinstatement wages. |
| Motion for Re-computation | As the case drags on during appeal, the employee should periodically file motions to re-compute the accrued wages to ensure the amount reflects the continued refusal to reinstate. |
4. Defenses Often Used by Employers (and How to Counter Them)
- "The position is filled": This is not a valid excuse. The employer must either create a substantially equivalent position or opt for payroll reinstatement.
- "Strained Relations": While "strained relations" can sometimes prevent physical reinstatement (leading to "separation pay in lieu of reinstatement"), this doctrine is strictly applied. It usually requires proof of deep-seated animosity, not just the mere filing of a labor case.
- "The company has closed": If the closure is bona fide, reinstatement may become impossible, but the employee may still be entitled to separation pay and backwages until the date of closure.
5. Important Jurisprudence
The Supreme Court has consistently held in cases like Pioneer Texturizing Corp. vs. NLRC that the "immediately executory" nature of reinstatement is a social justice measure. It is designed to provide the employee with the means of livelihood while the litigation continues. Even if the employer eventually wins the case on appeal, they cannot recover the wages paid to the employee under a payroll reinstatement order.
Summary of the Process
- Receive Decision containing the Reinstatement Order.
- Report for Work (with witnesses or a written letter of intent) to prove readiness to work.
- File Motion for Writ of Execution if the employer refuses.
- Coordinate with the Sheriff for the service of the Writ.
- Seek Garnishment if payroll reinstatement is not paid.
Would you like me to draft a template for a Letter of Intent to Return to Work that you can use to formally document your attempt to report for duty?