1

Prescription Story

I. Concepts:

Prescription – is the process of making a claim.

Prescriptive period - is the time allowed to make a claim. Beyond

this period, no claim can be made.

Example: if a money claim prescribes in 3 years, then no

claim can be brought beyond this period.

 The question is - when does the period start? It depends

on the kind of action involved.

Operation of Prescription – prescription of action is interrupted

when action is –

 Filed with the court;

 When there is extrajudicial demand by the creditors
 When there is written acknowledgement of debt by the
debtor

 Example – money claim

o Claim arose on month 1 – prescription begins to

run
o Extrajudicial demand made on month 10 –
running of prescription period stops
o Employer denies the demand on month 12 – the
prescription period again begins to run
o Worker files case before the NLRC on month 13 –
the prescription period again stops,.

The period during which prescription was running

should not go beyond 3 years; otherwise, the claim is
barred.
 2

Promissory estoppel - If the employer makes a

promise on when compliance with the obligation
would be made (i.e., payment of a benefit),

 The promise prevents him from filing making a

demand or filing a complaint
 Therefore, prescription does not begin to run
 Worker bears the burden of proving the promise
by clear and specific

II. Specific Applications

a. Offenses penalized under the LC – 3 years.

 See – Article 303 LC – any violation of the LC declared to

be unlawful or penal in nature

o except when otherwise declared or when act

hinges on interpretation of vague CBA provisions

 Accrues when offense is committed.

b. Unfair labor practice – within one (1) year from accrual

 Refers to ULP committed under Book V of the LC.

 Accrues when ULP is committed

c. Money claims arising from employer-employee relationship –

within 3 years from the time the cause of action accrued.

 Money claim arising frm E-E relationship – entitlements

to monetary benefits (1) arising under the Code; (2)
arising from special labor law; or (2) even under CBA.
 3

o Examples – claims for OT pay, holiday pay, SIL,

salary differentials; money claims of seafarers
under contract.

 Special Transitory Rules

a. Accruing before the effectivity of Labor Code –

within 1 year from the date of effectivity

b. workmen’s compensation claims before effectivity of

Code up to Dec 31, 1974 – not later than March 31,
1975

 Money claims to be filed with the proper entity

independently of the criminal action (to be instituted in
proper courts)

a. Pending determination of Money Claim in

(ii above), no civil action can be filed.

 ”When cause of action accrued” – cause of action has 3

elements

o the rights of the plaintiff

o the obligation on the part of the defendant
o act or omission by the defendant violating the
rights of the plaintiff

 When something is due from defendant to

the plaintiff – accrual occurs when the
defendant (employer) denies the benefits
due to the plaintiff (worker)

d. Claims for “injury to the rights” of a complainant – no rule under

the Labor Code – governed by the Civil Code – prescribes in 4
years under Article 1144 of Civil Code.
 4

aa. claim proceeds from the fact of injury

bb. this includes claims for backwages and damages in

illegal dismissal cases where injury to complainant
through termination of his property right to job takes
place.

o Backwages – (which is actual damages) run from

dismissal to the date of reinstatement

o Other monetary benefits due to the employee

had he not been dismissed, similarly run from
the date of dismissal up to reinstatement.

 This means that these monetary benefits

are granted not as money claim but as
damages consequent to the injury that
the complainant sustained.

 Distinguish this from a monetary claim

which prescribes in 3 years – recovery is
only for the 3 year period that has not
prescribed.

 Example – on a claim for incremental

wage increase based on tuition fee
increase – claim is from 2014 to
2018 – the only recoverable claim is
for 3 years (2016 to 2018)

cc. If worker files a complaint and withdraws it or if complaint

is dismissed, the effect is as if no complaint has been filed
at all – the halting of the prescriptive period that the filing
of the complaint brought about is erased; prescription
continued running.
 5

e. Laches – (sleeping on one’s rights) failure or neglect for an

unreasonable or unexplained time to do that which, exercising
due diligence, could or should have been done earlier.

 Defense vs. Laches – there is a valid reason for the

delay.

o a worker who could not bring a complaint for

illegal dismissal because he brought the matter to
grievance and proceedings there have not been
completed.