Dear Atty. Kathy,

I filed a case against my former employer, Company X, for illegal dismissal. The Labor Arbiter ruled that I was illegally dismissed and ordered that I should be reinstated either to my former position in Company X or in the payroll. Company X did not reinstate me, based on the reason that they were still appealing the case to the higher courts. Is Company X correct?

Rae

Dear Rae,

As ruled by the Supreme Court in the case of Jose Leni Z. Solidum versus Smart Communications Inc., et al. (G.R. 206985, 28 February 2024), an order of reinstatement issued by the Labor Arbiter is self-executory or immediately executory even pending appeal. In fact, this right is statutorily enshrined in the Labor Code:

In any event, the decision of the Labor Arbiter reinstating a dismissed or separated employee, insofar as the reinstatement aspect is concerned, shall immediately be executory, even pending appeal. The employee shall either be admitted back to work under the same terms and conditions prevailing prior to his dismissal or separation or, at the option of the employer, merely reinstated in the payroll. The posting of a bond by the employer shall not stay the execution for reinstatement provided herein. (Article 229, Labor Code)

Further, the 2011 NLRC Rules of Procedure provides that the perfection of an appeal suspends the execution of the Labor Arbiter’s decision, with the exception of the reinstatement aspect pending appeal. Given the immediately executory nature of the decision, the employer is obligated to reinstate and compensate the dismissed employee throughout the appeal process until reversal by the higher court.

Based on the above, it is incorrect of Company X not to reinstate you based on the reason that they are still appealing the case, because an order of reinstatement issued by the Labor Arbiter is self-executory or immediately executory even pending appeal.

Therefore, if Company X failed to comply with the Labor Arbiter’s order of reinstatement, Company X will be obligated to pay your accrued salaries, allowances, benefits, incentives and bonuses as may be applicable. Such entitlement shall be computed from the date of receipt of the Labor Arbiter’s decision ordering the reinstatement, until a reversal of the order of reinstatement becomes final and executory, if any.

Atty. Kathy Larios