Article 229 [223] of the Labor Code: Appeal from the Labor Arbiter
The number in brackets, [223], is the article's number before the 2015 renumbering of the Labor Code.
Status: Amended
Amended
This provision has been amended. The text below is the current version.
- Amended by: Republic Act No. 6715
What does Article 229 [223] say?
Decisions, awards, or orders of the Labor Arbiter are final and executory unless appealed to the Commission by any or both parties within ten (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.
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.
To discourage frivolous or dilatory appeals, the Commission or the Labor Arbiter shall impose reasonable penalty, including fines or censures, upon the erring parties.
In all cases, the appellant shall furnish a copy of the memorandum of appeal to the other party who shall file an answer not later than ten (10) calendar days from receipt thereof.
The Commission shall decide all cases within twenty (20) calendar days from receipt of the answer of the appellee.
The decision of the Commission shall be final and executory after ten (10) calendar days from receipt thereof by the parties.
Any law enforcement agency may be deputized by the Secretary of Labor and Employment or the Commission in the enforcement of decisions, awards or orders.
Read the Labor Code on the DOLE website (it uses the article numbers before 2015)
What does it mean in plain language?
Article 229 (Article 223 before the 2015 renumbering) sets the rules for appealing a decision of a Labor Arbiter to the National Labor Relations Commission (NLRC). The appeal must be filed within ten calendar days from receipt of the decision, or the decision becomes final. An employer who appeals a money award must post a bond equal to that award. And if the Labor Arbiter ordered a dismissed worker reinstated, that order takes effect right away, even while the appeal is pending.
The opening paragraph and the four grounds read:
Decisions, awards, or orders of the Labor Arbiter are final and executory unless appealed to the Commission by any or both parties within ten (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.
Article 229 is the number after the 2015 renumbering of the Labor Code; Article 223 is the older number, still seen in decisions before 2015. Recent decisions write "Article 229 [223]" or "Article 229 (formerly Article 223)".
How does it work in real life?
Ramon: an appeal filed late
A Labor Arbiter rules that Ramon was illegally dismissed and orders backwages. Ramon's employer receives the decision on a Monday and files its appeal sixteen days later. The ten calendar days have passed. Under Article 229, a decision not appealed within that period is final and executory.
A bakery with no bond
A Labor Arbiter orders a bakery to pay its former baker a sum of money. The bakery files an appeal memorandum on time but posts no bond. Under Article 229 the employer's appeal from a money award is perfected only when the bond is posted, so the appeal is not perfected.
Joy: reinstated while the case goes on
A Labor Arbiter orders Joy reinstated, and her employer appeals. While the appeal is pending, the employer must either let Joy back to work or put her back on the payroll. If it does neither, it can be made to pay her salary for that period, as the Court said in Manila Doctors College.
What does this mean in practice?
- Count the ten days from the day the decision is received, not from the day it was signed.
- The ground for appeal must be one of the four in the article. A party who simply disagrees has to show which ground applies.
- An employer appealing a money award has to post a bond equal to the award; without it, the appeal is not perfected.
- A dismissed worker who won reinstatement does not have to wait for the appeal to end to be reinstated or paid.
- For how a labor case starts, see how to file a labor complaint. For what a dismissed worker can win, see remedies for illegal dismissal.
How long do you have to appeal to the NLRC?
Ten calendar days from the day you receive the decision, award or order. If no party appeals within that time, the Labor Arbiter's decision is "final and executory", which means it can be enforced.
Either side can appeal: the worker, the employer, or both.
On what grounds can a Labor Arbiter's decision be appealed?
Only on the four grounds in the article:
- there is prima facie evidence (evidence that is enough on its face) that the Labor Arbiter abused his or her discretion;
- the decision was obtained through fraud or coercion, including graft and corruption;
- the appeal raises only questions of law; or
- there are serious errors in the findings of facts that would cause grave or irreparable damage or injury to the party appealing.
Does the employer have to post an appeal bond?
Yes, if the decision orders the employer to pay money. The article says:
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.
The Supreme Court applies this strictly:
- In Malcaba v. ProHealth Pharma Philippines (2018), it said that in labor cases, "an appeal by an employer is perfected only by filing a bond equivalent to the monetary award."
- In The Redsystems Company v. Macalino (2022), the Court said appealing is optional, but a party who chooses to appeal must post the required bond. It added that "employer" here includes parties held solidarily liable with the employer for the money award, including a labor-only contractor. In that case, the contractor paid only the appeal and legal research fees and posted no bond, so its appeal was not perfected.
What happens to an order of reinstatement during the appeal?
It is carried out at once. The article says:
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.
So the employer has two choices: take the worker back to work on the same terms, or keep the worker on the payroll without actual work. Posting the bond does not stop the reinstatement. In Manila Doctors College v. Olores (2016), the Supreme Court said the employer "is duty-bound to reinstate the employee, failing which, the employer is liable instead to pay the dismissed employee's salary."
Reinstatement is the remedy given to an employee who was unjustly dismissed under [Article 294 [279]](/law/labor-code/article-294).
What else does Article 229 say?
The last paragraphs of the article, as amended by Republic Act No. 6715, also say that:
- the Commission or the Labor Arbiter shall impose a reasonable penalty, including fines or censures, to discourage frivolous or dilatory appeals;
- the party who appeals gives a copy of the memorandum of appeal to the other party, who answers within ten calendar days from receipt;
- the Commission decides within twenty calendar days from receipt of the answer, and its decision becomes final and executory ten calendar days after the parties receive it; and
- any law enforcement agency may be deputized by the Secretary of Labor and Employment or the Commission to enforce decisions, awards or orders.
The detailed steps of an NLRC appeal (forms, fees, how the memorandum is filed) are in the NLRC's own rules of procedure, which are not explained on this page.
Frequently asked questions
How many days do I have to appeal a Labor Arbiter's decision?
Ten calendar days from receipt of the decision, award or order. Article 229 [223] says the decision becomes final and executory unless it is appealed to the National Labor Relations Commission within that period.
What are the grounds for an appeal to the NLRC?
Article 229 lists four: prima facie evidence of abuse of discretion by the Labor Arbiter; a decision secured through fraud or coercion, including graft and corruption; a decision made purely on questions of law; and serious errors in the findings of facts that would cause grave or irreparable damage or injury to the appellant.
Does an employer need to post a bond to appeal?
Yes, when the decision includes a monetary award. Article 229 says the employer's appeal may be perfected only upon posting a cash or surety bond equal to the monetary award. In Malcaba v. ProHealth Pharma (2018), the Supreme Court said an employer's appeal is perfected only by filing a bond equivalent to the monetary award.
Does an appeal stop my reinstatement?
No. Article 229 says the reinstatement part of the Labor Arbiter's decision is immediately executory, even pending appeal. The employer either takes the worker back or puts the worker back on the payroll, and posting a bond does not stop the reinstatement.
Does the employee also need a bond to appeal?
The bond rule in Article 229 speaks of an appeal by the employer from a judgment with a monetary award. The article does not require a bond from an employee who appeals.
General information, not legal advice. For your case, ask a lawyer, the Public Attorney's Office (PAO) or the agency.
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