ALON 3 - 2013


NLRC Sheriff's manual on Execution of Judgment clarification on cash bonds

In the past few months we had observed an increase in phone calls from manning agents wherein the Sheriff of the NLRC had been at the Philippines Overseas Employment Administration (POEA) with the intention to garnish the manning agents performance bond (cash deposit with the POEA). While they do proceed to manning agents banks the increase of directly as a first port of call to the POEA caused concern. On investigating we identified that the NLRC during the November En-Banc session (this is where all the NLRC commissioners from all over the Philippines meet at the NLRC in Manila (NCR-National Capital Region), to discuss issues and policies and approved a specific manual of procedure for the Sheriff's of the NLRC entitled "Sheriff's Manual on Execution of Judgment".

The concern as high-lighted on page 5 was, the very specific order of what collateral the Sheriff should garnish;

b) In the event of failure or refusal of the losing party to pay the judgment award, the Sheriff shall enforce the judgment award in the following order:

1. Cash bond

2. Bank deposits

3. Surety bond

What was of concern is that several Sheriff's had interpreted the rules to mean the "cash bond" being the ESCROW (performance bond) at the POEA. However in a Memorandum from the Chairman of the NLRC it clarified that a cash bond is the actual "cash" appeal bond for a specific case placed with the cashier of the NLRC.

Therefore our advice to manning agents and ship owners remains the same, In the event that a Sheriff of the NLRC does turn up at their bank or the POEA in regards to garnishment related to a labour case, NLRC adverse decision handled by Pandiman they should;

Call us immediately and advise where the Sheriff is

We shall either meet with the Sheriff or talk to them over the phone advising:

  • That the funds are available shortly and settlement date is arranged

  • That they should be proceeding to the bonding company

If necessary we can meet with the manning agents bank and help explain the situation

Contact claimants counsel that there is no need for the sheriff to be pursuing the M/A, especially;

  • Where there is an appeal bond in place (LOU)

  • Settlement date arranged and funds arriving

  • Funds deposited with the cashier of the NLRC

Captain Andrew Malpass - President & GM

Pandiman Philippines, Inc.

ly and settlement date is arranged.


Staff Author