Practice question
The agency’s bond is insufficient to satisfy the entire proved Section10 award. The agency claims that the bond’s available amount is automatically the maximum of its own statutory personal liability. No lawful release or limitation is established. Which is correct?
- Bond security does not by itself replace or cap the established statutory obligation
- Every bond limit automatically cancels the remaining debt
- The worker must donate the shortfall
- The foreign employer becomes immune too
- The award necessarily disappears when the bond is exhausted
Legal references
- RA8042 as amended by RA10022: https://lawphil.net/statutes/repacts/ra2010/ra_10022_2010.html Section7 amending Section10, covered claims and performance bond.
- Civil Code: https://lawphil.net/statutes/repacts/ra1949/ra_386_1949.html Articles1216–1217.
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