Court Administrator: Bond Required for Injunction on Wage Hike

A preliminary injunction cannot be issued or implemented without the required bond, according to Ma. Theresa Dolores C. Gomez-Estoesta, the Court Administrator of the Philippines. This clarification came during a House of Representatives Appropriations Committee hearing on the Judiciary’s proposed 2027 budget. The issue arose in response to a question from Party-list Rep. Elijah R. San Fernando, who is involved in a legal challenge that has suspended the planned P85 increase in the National Capital Region's minimum daily wage. The wage order was set to be implemented in two tranches, with the first P60 increase effective July 25 and an additional P25 on January 20, 2027. The initial P60 increase is currently suspended. Rep. San Fernando sought clarification on Section 4(b), Rule 58 of the Rules of Civil Procedure, which stipulates that a writ of preliminary injunction can only be issued upon approval of the requisite bond. Ms. Gomez-Estoesta explained that an injunction is a provisional remedy meant to cover damages the opposing party might incur if the injunction is enforced. Therefore, she stated, "It cannot be implemented or issued by the court" without the bond. In a specific case involving Pasig RTC, the injunction was issued on August 13 without the petitioners, Readycon Trading and Construction Corp. and R-II Builders, Inc., posting the prescribed bond. They had requested the court to reduce the bond amount or allow alternative arrangements. Labor groups, led by Kamanggagawa, have argued before the Supreme Court that courts lack jurisdiction to intervene in wage orders. The Supreme Court has ordered the involved parties to comment on the labor groups’ petition. This clarification by the Court Administrator is expected to guide workers and other parties involved in similar legal cases affecting their livelihoods and rights, emphasizing the procedural requirements for judicial intervention in economic matters.