Sara Lee Phils. V.

Macatlang, January 14, 2015

Doctrine: In case of a judgment involving a monetary award, an appeal by the employer may be
perfected only upon the posting of a cash or surety bond issued by a reputable bonding
company duly accredited by the Commission in the amount equivalent to the monetary award
in the judgment appealed from.
Facts: Aris permanently ceased its operations on Oct. 9, 1995 and thereafter undertook to pay
its employees the benefits which accrued by virtue of the company’s closure and an additional
Benevolent Fund to the Union. When FAPI was incorporated on Oct. 26, 1995, former Aris
employees filed 63 separate complaints for illegal dismissal, alleging that FAPI was organized by
the management of Aris to continue the same business of Aris, thereby intending to defeat
their right to security of tenure. Sarah Lee Corporation (SLC), Sarah Lee Philippines (SLP) and
Cesar Cruz were impleaded as defendants being major stockholders of FAPI and officers of Aris,
respectively, and Emilinda D. Macatlang, et al. is captioned as the complainant.
The LA rendered judgment finding the dismissal of 5,984 complainants as illegal and awarding
them separation pay and other monetary benefits amounting to ₱3,453,664,710.86. The
Corporations filed their Notice of Appeal with Motion to Reduce Appeal Bond and To Admit
Reduced Amount with the NLRC, seeking to reduce the appeal bond to ₱1 Million each on the
grounds that it is impossible for any insurance company to cover such huge amount and that, in
requiring them to post in full the appeal bond would be tantamount to denying them their right
to appeal. Emilinda D. Macatlang, et al., opposed the motion by asserting that failure to comply
with the bond requirement is a jurisdictional defect since an appeal may only be perfected
upon posting of a cash bond equivalent to the monetary award provided by Article 223 of the
Labor Code.
The NLRC granted the reduction of the appeal bond and issued an Order directing the
Corporations to post an additional ₱4.5 Million bond, bringing the total posted bond to ₱9
Million. Emilinda D. Macatlang, et al., filed a petition for review before the CA insisting that the
appeal was not perfected due to failure of the Corporations to post the correct amount of the
bond which is equivalent to the judgment award. While the case was pending before the
appellate court, the NLRC prematurely issued an order setting aside the decision of the Labor
Arbiter for being procedurally infirmed. The CA reversed and set aside the decision of the NLRC
and deemed it reasonable under the circumstances of the case to order the posting of an
additional appeal bond of ₱1 Billion.
Issue: W/N the appeal bond of ₱4.5M is enough to perfect an appeal
Ruling: NO. Well-settled is the doctrine that appeal is not a constitutional right, but a mere
statutory privilege. Hence, parties who seek to avail themselves of it must comply with the
statutes or rules allowing it. The primary rule governing appeal from the ruling of the labor
arbiter is Article 223 of the Labor Code which provides:
Art. 223. Appeal. — Decisions, awards, or orders of the Labor Arbiter are final and executory
unless appealed to the Commission by any or both parties within 10 calendar days from receipt
of such decisions, awards, or orders. Such appeal may be entertained only on any of the
following grounds:
a. If there is prima facie evidence of abuse of discretion on the part of the Labor Arbiter;
b. If the decision, order or award was secured through fraud or coercion, including graft
and corruption;
c. If made purely on questions of law; and d. If serious errors in the findings of facts are
raised which would cause grave or irreparable damage or injury to the appellant.
In case of a judgment involving a monetary award, an appeal by the employer may be perfected
only upon the posting of a cash or surety bond issued by a reputable bonding company duly
accredited by the Commission in the amount equivalent to the monetary award in the
judgment appealed from.
Article 223, under Presidential Decree No. 442, was amended by Republic Act No. 6715 to
include the provision on the posting of a cash or surety bond as a precondition to the perfection
of appeal.
The requisites for perfection of appeal as embodied in Article 223, as amended, are: 1) payment
of appeal fees; 2) filing of the memorandum of appeal; and 3) payment of the required cash or
surety bond. These requisites must be satisfied within 10 days from receipt of the decision or
order appealed from.