EXECUTION PROCESS

OFFICERS AUTHORIZED TO ISSUE WRIT OF EXECUTION

1. Secretary of Labor and Employment or
2. any Regional Director,
3. the Commission or
4. any Labor Arbiter, or
5. Med-Arbiter or
6. Voluntary Arbitrator; and
7. Employee’s Compensation Commission

EXECUTION PROCESS

1. MOTION FOR ISSUANCE OF WRIT OF EXECUTION

- a final and executory judgment can be enforced only by means of a writ of execution.
- a final and executory judgment is not self-executory
- it is imperative for the winning party to file a motion for issuance of writ of execution

WHEN: effective within five (5) years from the date it becomes final and executory

NOTE:
After the lapse of 5 yrs. and before it is barred by the statute of limitations (10 yrs. form the date of
finality)
o judgment can no longer be enforced by motion
o it can only be enforced by filing a petition for the revival of judgment before the Regional
Arbitration Branch of Origin.

PETITION FOR THE REVIVAL OF JUDGMENT

- An independent original action
- A new judgment
- The revived judgment may be enforced by motion within 5 yrs. from the date of its entry and thereafter by
action before it is barred by the statute of limitations.

2. PRE-EXECUTION CONFERENCE
- Labor arbiter will set such conference to thresh out matters relevant to execution including the final
computation of monetary award

3. ISSUANCE OF WRIT OF EXECUTION

- The writ of execution will be issued only when an entry of judgment has already been made.
EFFECTIVITY: 5 yrs. from the date of entry of judgment or issuance of certificate of finality

NOTE: if writ of execution does not conform to the judgment= null and void- tantamount to deprivation of
property.

4. SERVICE OF WRIT OF EXECUTION

-Sheriff will serve the writ upon the losing party/ other person required by law to obey the same

WHEN: between 8:00am and 5:00 pm but not on Saturdays, Sundays, and Holidays

NOTE: If the business requires the implementation of the writ beyond 5:00pm- the sheriff must secure a
written authorization from the NLRC or Labor Arbiter who issued the writ.

5. NOTICE OF LEVY AND NOTICE OF GARNISHMENT

- Sheriff will levy on the properties of the losing party by serving a NOTICE OF LEVY or garnish the
properties which are in the hands of a third party by serving a NOTICE OF GARNISHMENT.

- Levy is the act of taking possession, actual or constructive, by the sheriff of sufficient property of the losing
party (not exempt from execution) to satisfy the judgment.

- Garnishment is the levy of money goods, chattels, or interest thereon, belonging or owing to the losing
party but in the possession of a third party.
 -
EXECUTION OF MONEY JUDGMENT: (CBS PR)
1. Sheriff should first garnish the cash bond.
2. If the cash bond is not sufficient, the Sheriff should garnish the bank deposits of the losing party.
3. If the losing party has no bank deposits, the Sheriff should garnish the surety bond.
4. If the surety bond is not sufficient, the personal properties of the losing party may be levied or garnished.
5. If the personal properties are not sufficient to satisfy the judgment, Sheriff can levy the real properties of the
losing party.

6. MOTION FOR ISSUANCE OF BREAK-OPEN ORDER —

- If the losing party refuses or prohibits the sheriff from entering the place where the property subject of
execution is located or kept, the remedy is for the winning party to file a Motion for Issuance of Break-
Open Order with the Labor Arbiter where the execution proceeding is pending.

7. THIRD-PART CLAIM
WHO: If the property levied does not belong to the losing party but to a third person, the remedy is for the
third person to file a third-party claim with the Labor Arbiter where the execution proceeding is
pending.

WHEN: The 3rd Party Claim should be filed with the Labor Arbiter where the execution proceeding is
pending, within five (5) days from the last day of posting or publication of the notice of execution
sale.

FAILURE TO FILE:
Failure to file the 3rd party claim within the five-day period will forever bar the third party from filing
his claim.

NOTE: The 3rd party claim is in the form of an affidavit stating the claimant's title to property with supporting evidence.

REAL PROPERTY
- If the subject matter of the 3rd party claim is a real property, the 3rd party claimant must post a cash
deposit (refundable) in the amount of P20,000.00 for the payment of republication of the notice of
auction sale.

SUSPEND EXECUTION PROCEEDINGS

- The filing of the 3rd party claim shall suspend the execution proceedings with respect to the properties
subject of the 3rd party claim, provided that the 3 rd party claimant posts a case or surety bond equivalent to
the value of the levied property or judgment award, whichever is lower.

EXECUTION SALE

REQUIREMENTS: prior levy and notice of sale

NOTE:
- Execution sale without prior levy and notice of sale is null and void, hence, the purchaser cannot acquire
title to the property.
- The sheriff who sells without notice of sale may be held liable for damages.

1. NOTICE OF SALE
- Must contain the following:
a. The description and location of the property to be sold;
b. The date, time and place of sale; and
c. The terms and conditions of the sale.

2. NOTICE OF SALE MUST BE POSTED

- Sheriff must post a notice of sale in 3 public places.
- PURPOSE: to invite bidders and thus obtain a fair price for the property.

NOTE:
- The posting requirements must be strictly followed.
- Slight deviations will invalidate the notice.
- Sale other than the designated place in the notice= sale is void and no title will be passed
- not satisfied if posted in 3 different parts of the same building.
 TYPE WHERE TO POST DURATION
For sale of personal municipality or city where the sale is about to take For perishable personal
properties place properties- for a reasonable period
as determined by the sheriff

For other personal properties-

from 5 to 10 calendar days.
For sale of real municipality or city where the property is situated. For 20 calendar days
properties
NOTE: If assessed value exceed Php50, 000.00,
the notice of sale must be published once a week
for 2 consecutive weeks in a newspaper of
general circulation in the province or city, if there be
one or, in the absence thereof, in a newspaper of
general circulation.

3. TIME OF SELLING
- Execution sale shall be done between 9:00am and 5:00pm.
- The sheriff may adjourn the execution sale from day to day if necessary.

4. MANNER OF SELLING
- Shall be done by public auction
- Sold to the highest bidder
NOTE: real property consisting of several known list shall be sold separately or by parcels to give to the
losing party an opportunity to redeem any of the parcels.

WINNING PARTY CAN BE A BUYER IN AN EXECUTION SALE

- Can be a purchaser in an execution sale, in which case, he need not pay the amount of the bid if the price
does not exceed the amount of the judgment.
- If the price exceeds the amount of judgment, he should give the excess to the losing party.

DISQUALIFIED TO BE BUYERS:
1. Sheriff;
2. Duly designated officer holding the execution

EFFECT IF BUYER REFUSES TO PAY THE BID PRICE

- Sheriff may again sell the property to another highest bidder
- Labor Arbiter who issued the writ of execution may order the refusing purchaser to pay the losses with costs
and punish him with contempt if he disobeys the order.

PROCEEDS OF THE SALE SHOULD BE DEPOSITED WITH THE NLRC CASHIER

- Proceeds of the sale should be deposited with the NLRC cashier or regional arbitration or with an
authorized bank.
- The amount deposited can only be released upon order of the Labor Arbiter concerned or the NLRC.

MOTION TO QUASH WRIT OF EXECUTION

- if the losing party feels that the writ of execution was wrongfully issued, he may file a motion to quash the
writ of execution.
- However, the mere filing of the motion to quash will not stay the execution proceedings.
- Thus, the Labor Arbiter is mandated to resolve the motion to quash within ten (10) working days from
submission of the motion for resolution.

The writ of execution is deemed wrongfully issued if:

1. It was issued before the judgment has become final and executory;
2. It was issued against the wrong party
3. It was issued without authority;
4. It varies or tends to vary the tenor of the judgment;
5. judgment debt has been paid;
6. The writ of execution has expired or
7. The judgment is not clear enough that there remains room for interpretation.

A motion to quash the writ of execution may also be filed when supervening events have rendered the execution
of the judgment unjust, inequitable, or impossible.
Under this situation, the losing party may ask for the modification of the judgment in order to harmonize the same
with justice and the facts. The reason is because the law exact compliance with the impossible.

SUPERVENING EVENTS THAT WILL FORESTALL THE RUNNING OF BACKWAGES

1. Death
- If the employees die during the pendency of the case, backwages cannot extend beyond the time of death.
RATIONALE: A worker can earn wages only when alive.
2. Physical or Mental Capacity
- If the employee becomes physically or mentally incapacitated during the pendency of the case, his
backwages will extend only up to the date of such incapacity.
RATIONALE: a worker can earn wages only when not totally and permanently incapacitated.
3. Attainment of Compulsory Retirement Age
- If the employee reaches the compulsory retirement age during the pendency of the case, his right to
backwages cannot go beyond the compulsory retirement age.
4. Permanent Closure of Establishment
- If the employer permanently closes his business during the pendency of the case, the backwages cannot
extend beyond the date of permanent closure.
5. Temporary Closure of Establishment
- Backwages do not accrue during temporary closure, as when the plant was not operating due to electrical
power interruption, machine repair or lack of raw materials.
6. Confinement in Prison
- Backwages do not accrue during the time when the employees were confined in prison because an
employee under the detention could not possibly render service to his employer and, therefore, could not
earn any salary.

REDEMPTION
- Means paying back or satisfying a party’s indebtedness rather than buying back or repurchasing.
- It is the payment of an obligation on something to be regained or recovered back again, rather than a sale,
purchase or exchange.

WHO CAN REDEEM

Real property sold on execution may be redeemed in whole or in part:
1. By the losing party or his successor in interest; or
2. By a redemptioner.

REDEMPTIONER
- Is a creditor having a lien by attachment, judgment or mortgage on the property sold, subsequent to the
judgment under which the property was sold.

REDEMPTIONER MUST PROVE LIEN

- A redemptioner who redeems the property should first prove his lien by submitting the following documents
to the sheriff:
1. Certified copy of the judgment-if the redemptioner redeems upon a judgment
2. Record of lien certified by the register of deeds- if the redemptioner redeems upon a mortgage or
other liens;
3. Affidavit of the redemptioner showing the amount they actually due on the lien.

WHEN TO REDEEM
- The losing party (judgment debtor) may redeem the property from the purchaser at any time within 12
months after the date of registration.
- After the expiration of 12 months, redemption may be made only by redemptioners from other
redemptioners who made redemption within said period.

AMOUNT TO BE PAID ON REDEMPTION

a. Amount of his purchase, plus interest of 1% per month up to the time of redemption;
b. Assessment or taxes which the purchaser may have paid thereon after purchase plus interest on the said
assessments or taxes at the rate 1% per month; and
c. If the purchaser is also a creditor having a lien prior to that of the redemptioner (other than the judgment
under which such purchase was made), the amount of such other lien, with interest.

SUCCESSIVE REDEMPTION
A property redeemed by a redemptioner may again be redeemed by another redemptioner within sixty (60) days after
the last redemption by paying the following:
 1. Amount paid in the last redemption plug 2% interest;
2. Assessment or taxes which the last redemptioner may have paid thereon after redemption by him
with interest on such assessment or taxes;
3. Amount of any liens held by said last redemptioner prior to his own with interest on such amount Of
liens.

NOTICE OF REDEMPTION
- Written notice of any redemption must be given to the sheriff who made the sale and a duplicate filed With the
Register of Deeds of the province or city.
- If any assessments or taxes were paid by the redemptioner or if he acquires, or has any lien other than that
upon which the redemption was made, notice thereof must in like manner be given to the sheriff and filed with
the Register of Deeds.
- If no such notice was given, the property may be redeemed without paying such assessments, taxes or liens.

CERTIFICATE OF REDEMPTION
- Upon redemption by the losing party, the person to whom the payment is made shall execute and deliver to
him notarized Certificate of Redemption. Such certificate must be filed and recorded in the Registry of
Deeds of the province or City in which the property is situated.

CONVEYANCE OF PROPERTY TO THE BUYER

1. For personal property— the sheriff shall deliver the property to the purchaser together with a certificate of
sale, upon payment of the price
2. For real property — the Sheriff shall give to the purchaser a certificate of sale containing:
a. a particular description of the real property sold;
b. the price paid for each distinct lot or parcel; and
c. the whole price paid by him
- The certificate of sale (in case of real property) is not an absolute transfer of the property — it merely
identifies the property, shows the price paid, and the date when the right to redemption has expired.
- The transfer is not perfected until the execution and delivery of the Deed of Conveyance.

WHEN TO EXECUTE THE DEED OF CONVEYANCE

- The Sheriff will execute the Deed of Conveyance if no redemption is made within 12 months after
the sale.
- If redemption has taken place, the sheriff shall execute the deed of conveyance (in favor of the last
redemptioner), after the lapse of sixty (60) days, if no other redemption has made and the time
of redemption has expired.

LIABILITIES OF A SHERIFF
- The sheriff may be held liable (administratively or for damages), if he carries out an execution in an
anomalous manner.
- Among the grounds for holding a sheriff liable are as follows:
(1) Enforcing execution on property belonging to a third party;
(2) Selling property of the losing party without notice;
(3) Unduly releasing the property attached;
(4) Enforcing execution on properties which are exempt from execution
(5) Negligence in carrying out execution.
(6) Failure to submit the return or writ of execution;
(7) Failure to submit Sheriff's report.

RESTITUTION
If the judgment that has been executed is reversed (totally or partially) by the Court of Appeals or the
Supreme Court, the remedy for the employer to file with the Labor Arbiter a Motion for Restitution. The
Labor Arbiter shall issue such order directing the employee to restitute the money or property that he
received, except the reinstatement wages paid pending appeal.

ART. 231. Contempt of the Seervtary Of Labor- In the of his powers under this Code, the Secretary of Labor
may hold any person in direct or indirect contempt and impose the appropriate penalties therefor.

POWER OF SECRETARY OF LABOR TO PUNISH FOR CONTEMPT

Under this provision, the Secretary of Labor and Employment can cite any person in contempt for
contumacious refusal to obey the writ of execution; contumacious refusal to obey a return to work order issued
in accordance with his assumption powers; or contumacious refusal to obey orders issued in the exercise of
his visitorial power.