LABOR LAW

2010

PART I

TRUE OR FALSE. Explain your answer briefly.

1. Deeds of release, waivers and quitclaims are always valid and binding. (2%)

2. The relations between employer and employee are purely contractual in nature. (2%)

3. As a general rule, direct hiring of Overseas Filipino Workers (OFWs) is not allowed.
(2%)

II

a. Distinguish the terms “conciliation,” “mediation” and “arbitration.” (3%)

b. Differentiate “surface bargaining” from “blue-sky bargaining.” (2%)

III

A, single, has been an active member of the Social Security System for the past 20
months. She became pregnant out of wedlock and on her 7th month of pregnancy, she
was informed that she would have to deliver the baby through caesarean section
because of some complications. Can A claim maternity benefits? If yes, how many days
can she go on maternity leave? If not, why is she not entitled? (3%)

IV

A, a worker at ABC Company, was on leave with pay on March 31, 2010. He reported
for work on April 1 and 2, Maundy Thursday and Good Friday, respectively, both regular
holidays. Is A entitled to holiday pay for the two successive holidays? Explain. (3%)
V

Company XYZ has two recognized labor unions, one for its rank-and-file employees
(RFLU), and one for supervisory employees (SELU). Of late, the company instituted a
restructuring program by virtue of which A, a rank-and-file employee and officer of
RFLU, was promoted to a supervisory position along with four (4) other colleagues, also
active union members and/or officers. Labor Union KMJ, a rival labor union seeking
recognition as the rank-and-file bargaining agent, filed a petition for the cancellation of
the registration of RFLU on the ground that A and her colleagues have remained to be
members of RFLU. Is the petition meritorious? Explain. (3%)

VI

A is a member of the labor union duly recognized as the sole bargaining representative
of his company. Due to a bargaining deadlock, 245 members of the 500-strong union
voted on March 13, 2010 to stage a strike. A notice of strike was submitted to the
National Conciliation and Mediation Board on March 16, 2010. Seven days later or on
March 23, 2010, the workers staged a strike in the course of which A had to leave and
go to the hospital where his wife had just delivered a baby. The union members later
intimidated and barred other employees from entering the work premises, thus
paralyzing the business operations of the company.

A was dismissed from employment as a consequence of the strike.

a. Was the strike legal? Explain. (3%)

b. Was A’s dismissal valid? Why or why not? (3%)

VII

A was an able seaman contracted by ABC Recruitment Agency for its foreign principal,
Seaworthy Shipping Company (SSC). His employment contract provided that he would
serve on board the Almieda II for eight (8) months with a monthly salary of US$450. In
connection with his employment, he signed an undertaking to observe the drug and
alcohol policy which bans possession or use of all alcoholic beverages, prohibited
substances and un-prescribed drugs on board the ship. The undertaking provided that:
(1) disciplinary action including dismissal would be taken against anyone in possession
of the prohibited substances or who is impaired by the use of any of these substances,
and (2) to enforce the policy, random test sampling would be done on all those on board
the ship.

On his third month of service while the Almieda II was docked at a foreign port, a
random drug test was conducted on all members of the crew and A tested positive for
marijuana. He was given a copy of the drug test result. In compliance with the
company’s directive, he submitted his written explanation which the company did not
find satisfactory. A month later, he was repatriated to the Philippines.

Upon arrival in the Philippines, A filed with the National Labor Relations Commission
(NLRC) a complaint against the agency and the principal for illegal dismissal with a
claim for salaries for the unexpired portion of his contract.

a. Was A’s dismissal valid? Explain. (3%)

b. Is his claim for salaries for the unexpired portion of his contract tenable? Explain.
(3%)

VIII

ABC company and U labor union have been negotiating for a new Collective Bargaining
Agreement (CBA) but failed to agree on certain economic provisions of the existing
agreement. In the meantime, the existing CBA expired. The company thereafter refused
to pay the employees their midyear bonus, saying that the CBA which provided for the
grant of midyear bonus to all company employees had already expired. Are the
employees entitled to be paid their midyear bonus? Explain your answer. (3%)

IX

A was working as a medical representative of RX pharmaceutical company when he

met and fell in love with B, a marketing strategist for Delta Drug Company, a competitor
of RX. On several occasions, the management of RX called A’s attention to the
stipulation in his employment contract that requires him to disclose any relationship by
consanguinity or affinity with coemployees or employees of competing companies in
light of a possible conflict of interest. A seeks your advice on the validity of the company
policy. What would be your advice? (3%)

A, an employee of XYZ Cooperative, owns 500 shares in the cooperative. He has been
asked to join the XYZ Cooperative Employees Association. He seeks your advice on
whether he can join the association. What advice will you give him? (3%)

XI

Because of continuing financial constraints, XYZ, Inc. gave its employees the option to
voluntarily resign from the company. A was one of those who availed of the option. On
October 5, 2007, he was paid separation benefits equivalent to seven (7) months pay
for his six (6) years and seven (7) months of service with the company and he executed
a waiver and quitclaim.

A week later, A filed against XYZ, Inc. a complaint for illegal dismissal. While he
admitted that he was not forced to sign the quitclaim, he contended that he agreed to
tender his voluntary resignation on the belief that XYZ, Inc. was closing down its
business. XYZ, Inc., however, continued its business under a different company name,
he claimed.

Rule on whether the quitclaim executed by A is valid or not. Explain. (3%)

XII

On December 12, 2008, A signed a contract to be part of the crew of ABC Cruises, Inc.
through its Philippine manning agency XYZ. Under the standard employment contract of
the Philippine Overseas Employment Administration (POEA), his employment was to
commence upon his actual departure from the port in the point of hire, Manila, from
where he would take a flight to the USA to join the cruise ship “MS Carnegie.” However,
more than three months after A secured his exit clearance from the POEA for his
supposed departure on January 15, 2009, XYZ still had not deployed him for no valid
reason.

Is A entitled to relief? Explain. (3%)

XIII

A is employed by XYZ Company where XYZ Employees Union (XYZ-EU) is the

recognized exclusive bargaining agent. Although A is a member of rival union XYR-MU,
he receives the benefits under the CBA that XYZ-EU had negotiated with the company.

XYZ-EU assessed A a fee equivalent to the dues and other fees paid by its members
but A insists that he has no obligation to pay said dues and fees because he is not a
member of XYZ–EU and he has not issued an authorization to allow the collection.
Explain whether his claim is meritorious. (3%)

PART II

XIV

After working from 10 a.m. to 5 p.m. on a Thursday as one of 5,000 employees in a

beer factory, A hurried home to catch the early evening news and have dinner with his
family. At around 10 p.m. of the same day, the plant manager called and ordered A to fill
in for C who missed the second shift.

a. May A validly refuse the plant manager’s directive? Explain. (2%)

b. Assuming that A was made to work from 11 p.m. on Thursday until 2 a.m. on
Friday, may the company argue that, since he was two hours late in coming to
work on Thursday morning, he should only be paid for work rendered from 1 a.m.
to 2 a.m.? Explain? (3%)

XV

Samahang Manggagawa ng Terracota, a union of supervisory employees at Terracota

Inc., recently admitted a member of the company’s managerial staff, A, into the union
ranks.

a. Should A be a member of the supervisory union? Explain. (2%)

b. Assuming that A is ineligible to join the union, should the registration of

Samahang Manggagawa ng Terracota be cancelled? Explain. (3%)
XVI

On the first day of collective bargaining negotiations between rank-and-file Union A and
B Bus Company, the former proposed a P45/day increase. The company insisted that
ground rules for negotiations should first be established, to which the union agreed.
After agreeing on ground rules on the second day, the union representatives reiterated
their proposal for a wage increase. When company representatives suggested a
discussion of political provisions in the Collective Bargaining Agreement as stipulated in
the ground rules, union members went on mass leave the next day to participate in a
whole-day prayer rally in front of the company building.

a. The company filed a petition for assumption of jurisdiction with the Secretary of
Labor and Employment. The Union opposed the petition, arguing that it did not
intend to stage a strike. Should the petition be granted? Explain. (2%)

b. The Union contended that assuming that the mass leave will be considered as a
strike, the same was valid because of the refusal of the company to discuss the
economic provisions of the CBA. Rule on the contention. (2%)

c. Union member AA, a pastor who headed the prayer rally, was served a notice of
termination by management after it filed the petition for assumption of jurisdiction.
May the company validly terminate AA? Explain. (2%)

XVII

A was hired to work in a sugar plantation performing such tasks as weeding, cutting and
loading canes, planting cane points, fertilizing and cleaning the drainage. Because his
daily presence in the field was not required, A also worked as a houseboy at the house
of the plantation owner. For the next planting season, the owner decided not to hire A
as a plantation worker but as a houseboy instead. Furious, A filed a case for illegal
dismissal against the plantation owner. Decide with reason. (3%)

XVIII

Flight attendant A, five feet and six inches tall, weighing 170 pounds ended up weighing
220 pounds in two years. Pursuant to the long standing Cabin and Crew Administration
Manual of the employer airline that set a 147-pound limit for A’s height, management
sent A a notice to “shape up or ship out” within 60 days. At the end of the 60-day period,
A reduced her weight to 205 pounds. The company finally served her a Notice of
Administration Charge for violation of company standards on weight requirements.
Should A be dismissed? Explain. (3%)

XIX

Several employees and members of Union A were terminated by Western Phone Co.
on the ground of redundancy. After complying with the necessary requirements, the
Union staged a strike and picketed the premises of the company. The management
then filed a petition for the Secretary of Labor and Employment to assume jurisdiction
over the dispute. Without the benefit of a hearing, the Secretary issued an Order to
assume jurisdiction and for the parties to revert to the status quo ante litem.

a. Was the order to assume jurisdiction legal? Explain. (2%)

b. Under the same set of facts the Secretary instead issued an Order directing all
striking workers to return to work within 24 hours, except those who were
terminated due to redundancy. Was the Order legal? Explain. (3%)

XX

A, a driver for a bus company, sued his employer for nonpayment of commutable
service incentive leave credits upon his resignation after five years of employment. The
bus company argued that A was not entitled to service incentive leave since he was
considered a field personnel and was paid on commission basis and that, in any event,
his claim had prescribed. If you were the Labor Arbiter, how would you rule? Explain.
(6%)

XXI

A was approached for possible overseas deployment to Dubai by X, an interviewer of

job applicants for Alpha Personnel Services, Inc., an overseas recruitment agency. X
required A to submit certain documents (passport, NBI clearance, medical certificate)
and to pay P25,000 as processing fee. Upon payment of the said amount to the agency
cashier, A was advised to wait for his visa. After five months, A visited the office of
Alpha Personnel Services, Inc. during which X told him that he could no longer be
deployed for employment abroad. A was informed by the Philippine Overseas
Employment Administration (POEA) that while Alpha Personnel Services, Inc. was a
licensed agency, X was not registered as its employee, contrary to POEA Rules and
Regulations. Under POEA Rules and Regulations, the obligation to register personnel
with the POEA belongs to the officers of a recruitment agency.

a. May X be held criminally liable for illegal recruitment? Explain. (2%)

b. May the officers having control, management or direction of Alpha Personnel

Services, Inc. be held criminally liable for illegal recruitment? Explain. (3%)

XXII

A was recruited to work abroad by Speedy Recruitment Agency as a technician for a

Saudi Arabian construction firm, with a monthly salary of $650.00. When she got to the
construction site, the employer compelled her to sign another contract that referred her
to another employer for a salary of $350.00. She worked for the second employer and
was paid $350.00 until her two-year contract expired. Upon her return to the Philippines,
she filed a case against the agency and the two employers. May the agency validly
raise the defense that it was not privy to the transfer of A to the second employer?
Explain. (3%)

XXIII

A worked as a roomboy in La Mallorca Hotel. He sued for underpayment of wages

before the NLRC, alleging that he was paid below the minimum wage. The employer
denied any underpayment, arguing that based on long standing, unwritten policy, the
Hotel provided food and lodging to its housekeeping employees, the costs of which
were partly shouldered by it and the balance was charged to the employees. The
employees’ corresponding share in the costs was thus deducted from their wages. The
employer concluded that such valid deduction naturally resulted in the payment of
wages below the prescribed minimum. If you were the Labor Arbiter, how would you
rule? Explain. (3%)
XXIV

Rank-and-file workers from Peacock Feathers, a company with 120 employees,

registered their independent labor organization with the Department of Labor and
Employment (DOLE) Regional Office. Management countered with a petition to cancel
the union’s registration on the ground that the minutes of ratification of the union
constitution and by-laws submitted to the DOLE were fraudulent. Specifically,
management presented affidavits of ten (10) out of forty (40) individuals named in the
list of union members who participated in the ratification, alleging that they were not
present at the supposed January 1, 2010 meeting held for the purpose. The union
argued that the stated date of the meeting should have read “January 11, 2010,” instead
of “January 1, 2010,” and that, at any rate, the other thirty (30) union members were
enough to register a union. Decide with reason. (3%)

XXV

Company C, a toy manufacturer, decided to ban the use of cell phones in the factory
premises. In the pertinent Memorandum, management explained that too much texting
and phone-calling by employees disrupted company operations. Two
employeesmembers of Union X were terminated from employment due to violation of
the memorandum-policy. The union countered with a prohibitory injunction case (with
prayer for the issuance of a temporary restraining order) filed with the Regional Trial
Court, challenging the validity and constitutionality of the cell phone ban. The company
filed a motion to dismiss, arguing that the case should be referred to the grievance
machinery pursuant to an existing Collective Bargaining Agreement with Union X, and
eventually to Voluntary Arbitration. Is the company correct? Explain. (3%)
2011

Set A

(1) The union’s by-laws provided for burial assistance to the family of a member who
dies. When Carlos, a member, died, the union denied his wife's claim for burial
assistance, compelling her to hire a lawyer to pursue the claim. Assuming the wife wins
the case, may she also claim attorney's fees?

(A) No, since the legal services rendered has no connection to CBA negotiation.

(B) Yes, since the union should have provided her the assistance of a lawyer.

(C) No, since burial assistance is not the equivalent of wages.

(D) Yes, since award of attorney's fee is not limited to cases of withholding of wages.

(2) Pol requested Obet, a union officer and concurrently chairman of the company's
Labor-Management Council, to appeal to the company for a recomputation of Pol’s
overtime pay. After 5 p.m., his usual knock-off time, Obet spent two hours at the
Personnel Office, reconciling the differing computations of Pol’s overtime. Are those two
hours compensable?

(A) Yes, because Obet performed work within the company premises.

(B) No, since Obet’s action has nothing to do with his regular work assignment.

(C) No, because the matter could have been resolved in the labor-management council
of which he is the chairman.

(D) Yes, because the time he spent on grievance meetings is considered hoursworked.

(3) The Labor Code on retirement pay expands the term “one-half (½) month salary”
because it means

(A) 15 days' pay plus 1/12th of the 13th month pay and 1/12th of the cash value of
service incentive leave.

(B) 15 days' pay plus 1/12th of the 13th month pay and the cash equivalent of five days
service incentive leave.
(C) 15 days pay plus a full 13th month pay.

(D) 15 calendar days' pay per year of service plus allowances received during the
retirement year.

(4) A foreign guest in a luxury hotel complained that he lost certain valuable items in his
hotel room. An investigation by the hotel pointed to two roomboys as the most probable
thieves. May the management invoke “loss of confidence” as a just cause for dismissing
the roomboys?

(A) No, “loss of confidence” as reason for dismissal does not apply to rank and file
employees.

(B) No, “loss of confidence” applies only to confidential positions.

(C) Yes, “loss of confidence” is broad enough to cover all dishonest acts of employee.

(D) RIGHT ANSWER Yes, “loss of confidence” applies to employees who are charged
with the care and custody of the employer's property.

(5) Tower Placement Agency supplies manpower to Lucas Candy Factory to do work
usually necessary for work done at its factory. After working there for more than two
years under the factory manager’s supervision, the workers demanded that Lucas
extend to them the same employment benefits that their directly hired workers enjoyed.
Is their demand valid?

(A) Yes, since it was Lucas that actually hired and supervised them to work at itsfactory.

(B) No, since the agency workers are not employees of the client factory.

(C) Yes, since they have been working at the factory in excess of two years.

(D) No, since it was the placement agency that got them their jobs.
(6) Both apprenticeship and learnership are government programs to provide practical
on-the-job training to new workers. How do they differ with respect to period of training?.

(A) In highly technical industries, apprenticeship can exceed 6 months; learnership can
exceed one year.

(B) Apprenticeship cannot exceed 6 months; learnership can.

(C) Apprenticeship shall not exceed six months; while learnership shall not exceed three
months.

(D) The law lets the employer and the apprentice agree on the apprenticeship period;
but the law fixes learnership period at six months in non-technical industries.

(7) Venus Department Store decided to contract out the security services that its 10
direct-hired full-time security guards provided. The company paid the men separation
pay. With this move, the Store was able to cut costs and secure efficient outside
professional security services. But the terminated security guards complained of illegal
dismissal, claiming that regular jobs such as theirs could not be contracted out. Will their
complaint prosper?

(A) No. the management has the right to contract out jobs to secure efficient and
economical operations.

(B) Yes. They should be reinstated or absorbed by the security agency as its
employees.

(C) No. They are estopped from demanding reinstatement after receiving their
separation pay.

(D) Yes. The company cannot contract out regular jobs such as they had.
(8) Although both are training programs, apprenticeship is different from learnership in
that

(A) a learner may be paid 25% less than the legal minimum wage while an apprentice is
entitled to the minimum wage.

(B) apprenticeship has to be covered by a written agreement; no such formality is

needed in learnership.

(C) in learnership, the employer undertakes to make the learner a regular employee; in
apprenticeship, no such undertaking.

(D) a learner is deemed a regular employee if terminated without his fault within one
month of training; an apprentice attains employment status after six months of
apprenticeship.

(9) A golf and country club outsourced the jobs in its food and beverage department and
offered the affected employees an early retirement package of 1 ½ month’s pay for
each year of service. The employees who accepted the package executed quitclaims.
Thereafter, employees of a service contractor performed their jobs. Subsequently, the
management contracted with other job contractors to provide other services like the
maintenance of physical facilities, golf operations, and administrative and support
services. Some of the separated employees who signed quitclaims later filed complaints
for illegal dismissal. Were they validly dismissed?

(A) Yes. The jobs were given to job contractors, not to labor-only contractors, and the
dismissed employees received higher separation pay than the law required.

(B) No. The outsourcing and the employment termination were invalid since the
management failed to show that it suffered severe financial losses.

(C) No. Since the outsourcing of jobs in several departments entailed the separation of
many employees, the club needed the Secretary of Labor’s approval of its actions.

(D) No. Since the outsourced jobs were held by old-time regular employees, it was
illegal for the club to terminate them and give the jobs to others.
(10) Sampaguita Company wants to embark on a retrenchment program in view of
declining sales. It identified five employees that it needed to separate. The human
resource manager seems to recall that she has to give the five employees and the
DOLE a 30-day notice but she feels that she can give a shorter notice. What will you
advise her?

(A) Instead of giving a 30-day notice, she can just give a 30-day advanced salary and
make the separation effective immediately.

(B) So long as she gave DOLE a 30-day prior notice, she can give the employees a
shorter notice.

(C) The 30-day advance notice to the employee and the DOLE cannot be shortened
even with a 30-day advance salary.

(D) She can give a shorter notice if the retrenchment is due to severe and substantial
losses.

(11) Under the Labor Code, its provisions on working conditions, including the eight-
hour work day rule, do not apply to domestic helpers. Does it follow from this that a
domestic helper's workday is not limited by law?

(A) No, since a domestic helper cannot be required to work more than ten hours a day.

(B) Yes, since a domestic helper's hours of work depend on the need of the household
he or she works for.

(C) No, because a domestic helper is legally entitled to overtime pay after ten hours of
work.

(D) Yes, a domestic helper may be required to work twelve hours a day or beyond.
(12) Under the Labor Code on Working Conditions and Rest Periods, a person hired by
a high company official but paid for by the company to clean and maintain his staff
house is regarded as

(A) a person rendering personal service to another.

(B) a regular company employee.

(C) a family member.

(D) domestic helper.

(13) The union filed a notice of strike due to a bargaining deadlock. But, because the
Secretary of Labor assumed jurisdiction over the dispute, the strike was averted.
Meanwhile, the employer observed that the union engaged in a work slowdown.
Contending that the slowdown was in fact an illegal strike, the employer dismissed all
the union officers. The union president complained of illegal dismissal because the
employer should first prove his part in the slowdown. Is the union president correct?

(A) Yes, since the employer gave him no notice of its finding that there was a slowdown.

(B) Yes. The employer must prove the union president’s part in slowdown.

(C) No. When a strike is illegal, the management has the right to dismiss the union
president.

(D) No. As the union president, it may be assumed that he led the slowdown.

(14) The existing collective bargaining unit in Company X includes some fifty
“secretaries” and “clerks” who routinely record and monitor reports required by their
department heads. Believing that these secretaries and clerks should not be union
members because of the confidential nature of their work, the management
discontinued deducting union dues from their salaries. Is the management’s action
legal?

(A) No, only managers are prohibited from joining unions; the law does not bar
“confidential employees” from joining unions.
(B) No, “confidential employees” are those who assist persons who formulate,
determine, or enforce management policies in the field of labor relations.

(C) Yes, secretaries and clerks of company executives are extensions of the
management and, therefore, should not join the union.

(D) No, “confidential” employees are those who handle executive records and payroll or
serve as executive secretaries of top-level managers.

(15) Jose Lovina had been member of the board of directors and Executive Vice
President of San Jose Corporation for 12 years. In 2008, the San Jose stockholders did
not elect him to the board of directors nor did the board reappoint him as Executive Vice
President. He filed an illegal dismissal complaint with a Labor Arbiter. Contending that
the Labor Arbiter had no jurisdiction over the case since Lovina was not an employee,
the company filed a motion to dismiss. Should the motion be granted?

(A) No, the Labor Arbiter has jurisdiction over all termination disputes.

(B) Yes, it is the NLRC that has jurisdiction over disputes involving corporate officers.

(C) No, a motion to dismiss is a prohibited pleading under the NLRC Rules of
Procedure.

(D) Yes, jurisdiction lies with the regular courts since the complainant was a corporate
officer.

(16) An employee proved to have been illegally dismissed is entitled to reinstatement

and full backwages computed on the basis of his

(A) basic salary plus the regular allowances and the thirteenth month pay.

(B) basic salary plus the salary CBA increases during the pendency of his case.

(C) basic salary plus the increases mandated by wage orders issued during the
pendency of his case.

(D) basic salary at the time of dismissal.

(17) The meal time (lunch break) for the dining crew in Glorious Restaurant is either
from 10 a.m. to 11 a.m. or from 1:30 p.m. to 2:30 p.m., with pay. But the management
wants to change the mealtime to 11: a.m. to 12 noon or 12:30 p.m. to 1:30 p.m., without
pay. Will the change be legal?

(A) Yes, absent an agreement to the contrary, the management determines work hours
and, by law, meal break is without pay.

(B) No, because lunchbreak regardless of time should be with pay.

(C) Yes, the management has control of its operations.

(D) No, because existing practice cannot be discontinued unilaterally.

(18) The employees’ union in San Joaquin Enterprise continued their strike despite a
return to work order from the Secretary of Labor. Because of this defiance, the employer
dismissed the strikers. But the Labor Arbiter declared as illegal the dismissal of those
whose commission of unlawful acts had not been proved. They were ordered
immediately reinstated. The employer refused, however, to reinstate them on the
ground that the rule on immediate reinstatement applies only to terminations due to just
or authorized causes. Is the employer’s refusal justified?

(A) No, every employee found to have been illegally dismissed is entitled to immediate
reinstatement even pending appeal.

(B) Yes. The employer’s refusal is legal and justified as a penalty for defying the
secretary’s lawful order.

(C) Yes, the rule on immediate reinstatement does not apply to employees who have
defied a return-to-work order.

(D) No. The dismissal of the employees was valid; reinstatement is unwarranted.
(19) Llanas Corporation and Union X, the certified bargaining agent of its employees,
concluded a CBA for the period January 1, 2000 to December 31, 2004. But, long
before the CBA expired, members of Union Y, the minority union, showed
dissatisfaction with the CBA under the belief that Union X was a company union.
Agitated by its members, Union Y filed a petition for a Certification Election on
December 1, 2002. Will the petition prosper?

(A) No, such a petition can only be filed within the freedom period of the CBA.

(B) No, since a petition for certification can be filed only upon the expiration of the CBA.

(C) Yes, a certification is the right remedy for ousting a company union.

(D) Yes, employees should be allowed to cancel at the earliest opportunity a CBA that
they believed was obtained by a company union.

(20) Is it correct to say that under Philippine law a househelper has no right to security
of tenure?

(A) No, since a househelper can be dismissed only for just cause or when his agreed
period of employment ends.

(B) Yes, since it is the employer who determines the period of his service.

(C) Yes, since a househelper can be dismissed with or without just cause.

(D) No, since a househelper can be dismissed only for just cause, except when he has
been employed for a definite period not exceeding one year.
(21) Reach-All, a marketing firm with operating capital of P100,000, supplied sales
persons to pharmaceutical companies to promote their products in hospitals and
doctors' offices. Reach-All trained these sales persons in the art of selling but it is the
client companies that taught them the pharmacological qualities of their products.
Reach-All’s roving supervisors monitored, assessed, and supervised their work
performance. Reach-All directly paid their salaries out of contractor's fees it received.
Under the circumstances, can the sales persons demand that they be absorbed as
employees of the pharmaceutical firms?

(A) No, they are Reach-All’s employees since it has control over their work
performance.

(B) Yes, since they receive training from the pharmaceutical companies regarding the
products they will promote.

(C) No, since they are bound by the agency agreement between Reach-All and the
pharmaceutical companies.

(D) Yes, since Reach-All does does not qualify as independent contractoremployer, its
clients being the source of the employees’ salaries.

(22) Executive Order No. 180, which protects government employees, does NOT apply
to “high-level employees,” namely,

(A) presidential appointees.

(B) those performing policy-determining functions, excluding confidential employees and

supervisors.

(C) confidential employees and those performing policy-determining functions.

(D) elective officials.

(23) In the case of a househelper, reinstatement is not a statutory relief for unjust
dismissal because of the confidentiality of his or her job. Instead, the househelper shall
be paid

(A) an indemnity equivalent to 15 days' pay plus compensation already earned.

(B) a separation pay equivalent to one month's pay per year of service.

(C) a separation pay equivalent to one-half month's pay per year of service.

(D) 15 days' pay as indemnity plus wages lost from dismissal to finality of decision.

(24) The CBA for the period January 2007 to December 2009 granted the employees a
P40 per day increase with the understanding that it is creditable as compliance to any
future wage order. Subsequently, the regional wage board increased by P20 the
minimum wage in the employer’s area beginning January 2008. The management
claims that the CBA increase may be considered compliance even if the Wage Order
itself said that “CBA increase is not creditable as compliance to the Wage Order.” Is the
management's claim valid?

(A) Yes, since creditability of the CBA increase is the free and deliberate agreement and
intention of the parties.

(B) Yes, since the Wage Order cannot prejudice the management’s vested interest in
the provisions of the CBA.

(C) No, disallowing creditability of CBA pay increase is within the wage board's
authority.

(D) No, the CBA increase and the Wage Order are essentially different and are to be
complied with separately.
(25) When an employee works from 8 a.m. to 5 p.m. on a legal holiday falling on his rest
day, which of the following formulas do you use to compute for his day's wage on that
day?

(A) His regular daily wage multiplied by 200% plus 30% of the 200%

(B) His regular daily wage multiplied by 200%

(C) His regular daily wage plus 200%

(D) His daily regular wage

(26) The employees’ rights to organize and to bargain collectively are means of
exercising the broader right to participate in policy or decision-making processes. The
employees' right to participate in policy and decision making processes is available

(A) if a labor-management council exists.

(B) if a labor-management council does not exist.

(C) if a union exists and it agrees to the creation of a labor-management council.

(D) whether or not a labor-management council exists.

(27) If not used by the end of the year, the service incentive leave shall be

(A) carried over to the next year.

(B) converted to its money equivalent.

(C) forfeited.

(D) converted to cash and paid when the employee resigns or retires.

(28) An employee is NOT entitled to “financial assistance” in cases of legal dismissal

when the dismissal

(A) is based on an offense reflecting the depraved character of the employee.

(B) is based on serious misconduct or breach of the employer's trust.

(C) is grounded on any of the just causes provided by the Labor Code.
(D) when the employee has less than 10 years of service.

(29) In a work-related environment, sexual harassment is committed when

(A) the offender has authority, influence, or moral ascendancy over his subordinate
victim.

(B) the victim’s continued employment is conditioned on sexual favor from her.

(C) the female victim grants the demand for sexual favor against her will.

(D) the victim is not hired because she turned down the demand for sexual favor.

(30) Government employees may elect a union as their exclusive representative but this
right is not available to

(A) regular employees in government instrumentalities and agencies.

(B) employees of government-owned and -controlled corporations without original

charters.

(C) employees of government-owned-or-conrolled corporations with original charters.

(D) employees of provincial and local government units.

(31) Celia, an OFW that Moonshine Agency recruited and deployed, died in Syria, her
place of work. Her death was not work-related, it appearing that she had been
murdered. Insisting that she committed suicide, the employer and the agency took no
action to ascertain the cause of death and treated the matter as a “closed case.” The
worker's family sued both the employer and the agency for moral and exemplary
damages. May such damages be awarded?

(A) Yes, the agency and the employer’s uncaring attitude makes them liable for such
damages.

(B) Yes, but only the principal is liable for such damages since the agency had nothing
to do with Celia’s death.

(C) No, since her death is not at all work-related.

(D) No, since her death is not attributable to any act of the agency or the employer.

(32) When the employer or his representative hurls serious insult on the honor or
person of the employee, the law says that the employee

(A) may leave work after at least a five-day notice to the employer.

(B) may leave work at any time and file for constructive dismissal.

(C) may leave work without giving a 30-day notice to the employer.

(D) may abandon his job at once.

(33) A sugar mill in Laguna, capitalized at P300 million, suffered a P10,000.00 loss last
year. This year it dismissed three young female employees who gave birth in the last
three years. In its termination report to DOLE, the sugar mill gave as reason for the
dismissal “retrenchment because of losses.” Did it violate any law?

(A) Yes, the law on retrenchment, the sugar mill’s loses not being substantial.

(B) Yes, the law against violence committed on women and children.

(C) No, except the natural law that calls for the protection and support of women.

(D) No, but the management action confirms suspicion that some companies avoid
hiring women because of higher costs.

(34) “Piece rate employees” are those who are paid by results or other non-time basis.
As such they are NOT entitled to overtime pay for work done beyond eight hours if

(A) their workplace is away from the company's principal place of work.

(B) they fail to fill up time sheets.

(C) the product pieces they do are not countable.

(D) the piece rate formula accords with the labor department’s approved rates.
(35) An employer may require an employee to work on the employee's rest day

(A) to avoid irreparable loss to the employer.

(B) only when there is a state of calamity.

(C) provided he is paid an extra of at least 50% of his regular rate.

(D) subject to 24-hour advance notice to the employee.

(36) The State has a policy of promoting collective bargaining and voluntary arbitration
as modes of settling labor disputes. To this end, the voluntary arbitrator’s jurisdiction
has not been limited to interpretation and implementation of collective bargaining
agreements and company personnel policies. It may extend to “all other labor disputes,”
provided

(A) the extension does not cover cases of union busting.

(B) the parties agreed to such extended jurisdiction.

(C) the parties are allowed to appeal the voluntary arbitrator's decision.

(D) the parties agreed in their CBA to broaden his jurisdiction.

(37) Philworld, a POEA-licensed agency, recruited and deployed Mike with its principal,
Delta Construction Company in Dubai for a 2-year project job. After he had worked for a
year, Delta and Philworld terminated for unknown reason their agency agreement. Delta
stopped paying Mike's salary. When Mike returned to the Philippines, he sued both
Philworld and Delta for unpaid salary and damages. May Philworld, the agency, be held
liable?

(A) No, since Philworld, the recruitment agency, is not the employer liable for unpaid
wages.

(B) Yes, since the agency is equally liable with the foreign principal despite the
termination of their contract between them.

(C) Yes, since the law makes the agency liable for the principal’s malicious refusal to
pay Mike’s salary.
(D) No, since Mike did not get paid only after Delta and Philworld terminated their
contract.

(38) Melissa, a coffee shop worker of 5 months, requested her employer for 5 days'
leave with pay to attend to the case that she filed against her husband for physical
assault two weeks earlier. May the employer deny her request for leave with pay?

(A) Yes, the reason being purely personal, approval depends on the employer’s
discretion and is without pay.

(B) No, as victim of physical violence of her husband, she is entitled to five days paid
leave to attend to her action against him.

(C) No, the employer must grant the request but the leave will be without pay.

(D) Yes, since she is not yet a permanent employee.

(39) Quiel, a househelper in the Wilson household since 2006, resigned from his job for
several reasons. One reason was the daily 12-hour workday without any rest day. When
he left his job he had unpaid wages totaling P13,500.00 which his employer refused to
pay. He wants to claim this amount though he is not interested in getting back his job.
Where should he file his claim?

(A) He should file his claim with the DSWD, which will eventually endorse it to the right
agency.

(B) Since he has no interest in reinstatement, he can file his claim with the office of the
regional director of the Department of Labor.

(C) He should file his claim exceeding P5,000.00 with the office of the labor arbiters, the
regional arbitrators representing the NLRC.

(D) He should go to the Employee’s Compensation Commission.

(40) For labor, the Constitutionally adopted policy of promoting social justice in all
phases of national development means

(A) the nationalization of the tools of production.

(B) the periodic examination of laws for the common good.

(C) the humanization of laws and equalization of economic forces.

(D) the revision of laws to generate greater employment.

(41) To avail himself of paternity leave with pay, when must the male employee file his
application for leave?

(A) Within one week from the expected date of delivery by the wife.

(B) Not later than one week after his wife’s delivery or miscarriage

(C) Within a reasonable time from the expected deliver date of his wife.

(D) When a physician has already ascertained the date the wife will give birth.

(42) The constitution promotes the principle of shared responsibility between workers
and employers, preferring the settlement of disputes through

(A) compulsory arbitration.

(B) collective bargaining.

(C) voluntary modes, such as conciliation and mediation.

(D) labor-management councils.

(43) Which of the following is NOT a requisite for entitlement to paternity leave?

(A) The employee is cohabiting with his wife when she gave birth or had a miscarriage.

(B) The employee is a regular or permanent employee.

(C) The wife has given birth or suffered a miscarriage.

(D) The employee is lawfully married to his wife.

(44) Of the four grounds mentioned below, which one has been judicially affirmed as
justification for an employee’s refusal to follow an employer’s transfer order?

(A) A transfer to another location is not in the employee's appointment paper.

(B) The transfer deters the employee from exercising his right to self-organization.

(C) The transfer will greatly inconvenience the employee and his family.

(D) The transfer will result in additional housing and travel expenses for the employee.

(45) Of the four definitions below, which one does NOT fit the definition of “solo parent”
under the Solo Parents Welfare Act?

(A) Solo parenthood while the other parent serves sentence for at least one year.

(B) A woman who gives birth as a result of rape.

(C) Solo parenthood due to death of spouse.

(D) Solo parenthood where the spouse left for abroad and fails to give support for more
than a year.

(46) Albert and four others signed employment contracts with Reign Publishers from
January 1 to March 31, 2011 to help clear up encoding backlogs. By first week of April
2011, however, they remained at work. On June 30 Reign’s manager notified them that
their work would end that day. Do they have valid reason to complain?

(A) No, since fixed term employment, to which they agreed, is allowed.

(B) Yes, their job was necessary and desirable to the employer’s business and,
therefore, they are regular employees.

(C) Yes, when they worked beyond March without an extended fixed term employment
contract, they became regular employees.

(D) No, since the 3-month extension is allowed in such employment.

(47) A handicapped worker may be hired as apprentice or learner, provided

(A) he waives any claim to legal minimum wage.

(B) his work is limited to apprenticeable job suitable to a handicapped worker.

(C) he does not impede job performance in the operation for which he is hired.

(D) he does not demand regular status as an employee.

(48) The Secretary of Labor and Employment or his duly authorized representative,
including labor regulations officers, shall have access to employer's records and
premises during work hours. Why is this statement an inaccurate statement of the law?

(A) Because the power to inspect applies only to employer records, not to the premises.

(B) Because only the Secretary of Labor and Employment has the power to inspect, and
such power cannot be delegated.

(C) Because the law allows inspection anytime of the day or night, not only during work
hours.

(D) Because the power to inspect is already delegated to the DOLE regional directors,
not to labor regulations officers.

(49) In industrial homework, the homeworker does at his home the work that his
employer requires of him, using employer-supplied materials. It differs from regular
factory work in the sense that

(A) the workers are not allowed to form labor organizations.

(B) the workers' pay is fixed by informal agreement between the workers and their
employer.

(C) the workers are under very little supervision in the performance or method of work.

(D) the workers are simply called “homeworkers,” not “employees,” hence not covered
by the social security law.
(50) Which of the following grounds exempts an enterprise from the service incentive
leave law?

(A) The employees already enjoy 15 days vacation leave with pay.

(B) The employer's business has been suffering losses in the past three years.

(C) The employer regularly employs seven employees or less.

(D) The company is located in a special economic zone.

(51) Which of the following acts is NOT considered unfair labor practice (ULP)?

(A) Restraining employees in the exercise of the right to self-organization.

(B) Union's interference with the employee's right to self-organization.

(C) Refusal to bargain collectively with the employer.

(D) Gross violation of the collective bargaining agreement by the union.

(52) In computing for 13th month pay, Balagtas Company used as basis both the
employee’s regular base pay and the cash value of his unused vacation and sick
leaves. After two and a half years, it announced that it had made a mistake and was
discontinuing such practice. Is the management action legally justified?

(A) Yes, since 13th month pay should only be one-twelfth of the regular pay.

(B) No, since the erroneous computation has ripened into an established,
nonwithdrawable practice.

(C) Yes, an error is not a deliberate decision, hence may be rectified.

(D) No, employment benefits can be withdrawn only through a CBA negotiation.
(53) Where the petition for a certification election in an unorganized establishment is
filed by a federation, it shall NOT be required to disclose the

(A) names of the local chapter's officers and members.

(B) names and addresses of the federation officers.

(C) names and number of employees that initiated the union formation in the enterprise.

(D) names of the employees that sought assistance from the federation in creating the
chapter.

(54) Under the Limited Portability law, funds from the GSIS and the SSS maybe
transferred for the benefit of a worker who transfers from one system to the other. For
this purpose, overlapping periods of membership shall be

(A) credited only once.

(B) credited in full.

(C) proportionately reduced.

(D) equally divided for the purpose of totalization.

(55) Of the four tests below, which is the most determinative of the status of a legitimate
contractor-employer?

(A) The contractor performs activities not directly related to the principal's main
business.

(B) The contractor has substantial investments in tools, equipment, and other devices.

(C) The contractor does not merely recruit, supply, or place workers.

(D) The contractor has direct control over the employees’ manner and method of work
performance.
(56) X Company’s CBA grants each employee a 14th month year-end bonus. Because
the company is in financial difficulty, its head wants to negotiate the discontinuance of
such bonus. Would such proposal violate the “nondiminution rule” in the Labor Code?

(A) No, but it will certainly amount to negotiating in bad faith.

(B) Yes since the rule is that benefits already granted in a CBA cannot be withdrawn or
reduced.

(C) No, since the law does not prohibit a negotiated discontinuance of a CBA benefit.

(D) Yes, since such discontinuance will cancel the enjoyment of existing benefits.

(57) Night differential is differentiated from overtime pay in that

(A) while overtime pay is given for overtime work done during day or night, night
differential is given only for work done between 10:00 p.m. and 6:00 a.m.

(B) while overtime pay is paid to an employee whether on day shift or night shift, night
shift differential is only for employees regularly assigned to night work.

(C) while overtime pay is for work done beyond eight hours, night differential is added to
the overtime pay if the overtime work is done between 6:00 p.m. and 12 midnight.

(D) while overtime pay is 25% additional to the employee's hourly regular wage, night
differential is 10% of such hourly wage without overtime pay.

(58) Differentiate a “labor organization” from a “legitimate labor organization.”

(A) While the employees themselves form a “labor organization,” a “legitimate labor
organization” is formed at the initiative of a national union or federation.

(B) While the members of a “labor organization” consists only of rank and file
employees, a “legitimate labor organization” consists of both supervisory and rank and
file employees.

(C) While a “labor organization” exists for a lawful purpose, a “legitimate labor
organization” must, in addition, be registered with the labor department.
(D) While the officers in a “labor organization” are elected in an informal way, the
officers in “legitimate labor organization” are formally elected according to the union's
constitution and by-laws.

(59) The negotiating panels for the CBA of X Company established a rule that only
employees of the company will seat in each panel. In the next session, the management
panel objected to the presence of the union counsel. Still the negotiation proceeded. At
the next session, the management panel again objected to the presence of the union
counsel as a non-observance of the “no outsider” rule. The negotiation nonetheless
proceeded. Does the management panel's objection to the presence of the union
counsel constitute unfair labor practice through bad-faith bargaining?

(A) Yes, the management is harping on a non-mandatory matter instead of proceeding

with the mandatory subjects of bargaining.

(B) No, there is no bargaining in bad faith since the bargaining proceeded anyway.

(C) Yes, the management panel has no legal basis for limiting the composition of the
union negotiating panel.

(D) No, since it is the union that violates the ground rules fashioned by the parties, it is
the one negotiating in bad faith.

(60) Which of the following acts is NOT part of the regulatory and visitorial power of the
Secretary of Labor and Employment over recruitment and placement agencies? The
power to

(A) order arrest of an illegal recruiter

(B) inspect premises, books and records

(C) cancel license or authority to recruit

(D) garnish recruiter's bond

(61) Where there is a bargaining deadlock, who may file a notice of strike?

(A) The majority members of the bargaining unit.

(B) The recognized bargaining agent.

(C) Any legitimate labor organization in the employer’s business.

(D) The majority members of the bargaining union.

(62) When a recruitment agency fails to deploy a recruit without valid reason and
without the recruit's fault, the agency is obligated to

(A) reimburse the recruit's documentary and processing expenses.

(B) reimburse the recruit’s expenses with 6% interest.

(C) pay the recruit damages equivalent to one year’s salary.

(D) find another employer and deploy the recruit within 12 months.

(63) Which of the following is an essential element of illegal recruitment?

(A) The recruiter demands and gets money from the recruit but issues no receipt.

(B) The recruiter gives the impression that he is able to send the recruit abroad.

(C) The recruiter has insufficient capital and has no fixed address.

(D) The recruiter has no authority to recruit.

(64) A group of 15 regular rank-and-file employees of Bay Resort formed and registered
an independent union. On hearing of this, the management called the officers to check
who the union members were. It turned out that the members included the probationary
staff, casuals, and the employees of the landscape contractor. The management
contends that inclusion of non-regulars and employees of a contractor makes the
union’s composition inappropriate and its registration invalid. Is this correct?

(A) Yes, union membership should be confined to direct-hired employees of the

company.
(B) Yes, the “community of interest” criterion should be observed not only in the
composition of a bargaining unit but also in the membership of a union.

(C) Yes, a union must have community of interest; the non-regulars do not have such
interest.

(D) No, union membership may include non-regulars since it differs from membership in
a bargaining unit.

(65) Which is NOT a guideline for the dismissal of an employee on the ground of “loss
of confidence”?

(A) Loss of confidence may not be arbitrarily invoked in the face of overwhelming
evidence to the contrary.

(B) Loss of confidence as cause of dismissal should be expressly embodied in written

company rules.

(C) The employee holds a position of trust and confidence.

(D) Loss of confidence should not be simulated nor a mere afterthought to justify earlier
action taken in bad faith.

(66) Pedring, Daniel, and Paul were employees of Delibakery who resigned from their
jobs but wanted to file money claims for unpaid wages and 13th month pay. Pedring’s
claim totals P20,000.00, Daniel’s P3,000.00, and Paul’s P22,000.00. Daniel changed
his mind and now also wants reinstatement because he resigned only upon the
instigation of Pedring and Paul. Where should they file their claims?

(A) With the DOLE regional director for Pedring and Paul’s claims with no
reinstatement; with the labor arbiter for Daniel’s claim with reinstatement.

(B) With the Office of the Regional Director of the Department of Labor for all claims to
avoid multiplicity of suits.

(C) With a labor arbiter for all three complainants.

(D) With the DOLE Regional Director provided they are consolidated for expediency.
(67) In a scenario like typhoon Ondoy, who may be required by the employer to work
overtime when necessary to prevent loss of life or property?

(A) Health personnel

(B) Employees with first aid training

(C) Security and safety personnel

(D) Any employee

(68) The management and Union X in Atisan Mining entered into a CBA for 1997 to
2001. After 6 months, a majority of the members of Union X formed Union Y and sought
management recognition. The latter responded by not dealing with either union. But,
when the CBA’s economic provisions had to be renegotiated towards the end of the
term of the CBA, the management chose to negotiate with Union Y, the newer union.
Thus, Union X which negotiated the existing CBA charged the company with unfair
labor practice (ULP). The company argued that it committed no unfair labor practice
since the supposed violation had nothing to do with economic provisions of the CBA. Is
the management right?

(A) No. Refusal to comply with the CBA’s economic provisions is not the only ground for
ULP; a disregard of the entire CBA by refusing to renegotiate with the incumbent
bargaining agent is also ULP,

(B) Yes. No unfair labor practice was committed because the supposed violation has
nothing to do with economic provisions of the CBA.

(C) Yes. The management commits no ULP when it decided to renegotiate with the
numerically majority union.

(D) Yes. A CBA violation amounts to ULP only if the violation is “gross,” meaning
flagrant or malicious refusal to comply with the CBA’s economic provisions which is not
the case here.
(69) The apprenticeship program should be supplemented by theoretical instruction to
be given by

(A) the apprentice's school only where the apprentice is formally enrolled as a student.

(B) the employer if the apprenticeship is done in the plant.

(C) the civic organizations that sponsor the program.

(D) the Department of Labor and Employment.

(70) The Securities and Exchange Commission approved a merger that allowed Broad
Bank to absorb the assets and liabilities of EBank. Broad Bank also absorbed EBank’s
rank-and-file employees without change in tenure, salary, and benefits. Broad Bank was
unionized but EBank was not. The Broad Bank bargaining union requested the
management to implement the union security clause in their CBA by requiring the ex-
EBank employees to join the union. Does the union security clause in the Broad Bank
CBA bind the ex-EBank employees?

(A) No, since the ex-EBank employees were not yet Broad Bank employees when that
CBA was entered into.

(B) No, Broad Bank’s absorption of ex-EBank employees was not a requirement of law
or contract; hence, the CBA does not apply.

(C) Yes, Broad Bank’s absorption of ex-EBank employees automatically makes the
latter union members of Broad Bank’s bargaining union.

(D) Yes, since the right not to join a labor union is subordinate to the policy of unionism
that encourages collective representation and bargaining.

(71) The employer must observe both substantive and procedural due process when
dismissing an employee. If procedural due process is not observed, the dismissal will be
regarded as

(A) defective; the dismissal process has to be repeated.

(B) an abuse of employer's discretion, rendering the dismissal void.

(C) ineffectual; the dismissal will be held in abeyance.

(D) legal and valid but the employer will be liable for indemnity.

(72) Mario, an expert aircon technician, owns and manages a small aircon repair shop
with little capital. He employs one full-time and two part-time technicians. When they do
repair work in homes or offices, their clients do not tell them how to do their jobs since
they are experts in what they do. The shop is shabby, merely rented, and lies in a small
side street. Mario and the other technicians regard themselves as informal partners.
They receive no regular salary and only earn commissions from service fees that clients
pay. To what categories of workers do they fall?

(A) Labor-only contractors

(B) Job contractors

(C) Pakyaw workers

(D) Manpower agency contractors

(73) How often should the collected service charges be distributed to employees in
hotels and restaurants?

(A) Every end of the month

(B) Every two weeks

(C) Every week

(D) At the end of each work day

(74) Which of the following conditions justifies a licensed employment agency to charge
and collect fees for employment assistance?

(A) The recruit has submitted his credentials to the employment agency.

(B) The POEA has approved the agency's charges and fees.

(C) The agency's principal has interviewed the applicant for the job.

(D) The worker has obtained employment through the agency's efforts.
(75) During the CBA negotiation the management panel proposed a redefinition of the
“rank-and-file” bargaining unit to exclude “HR Specialist” in the human resource
department and “Analyst” in the research and development department. The union
panel objected since those affected have already been included in the bargaining unit
covered by the existing CBA and so could no longer be excluded. Is the union correct in
insisting that their exclusion would amount to bad faith on the part of the management
panel?

(A) No, efforts to modify an existing CBA do not constitute bad faith if such modification
does not diminish employment benefits.

(B) Yes, the proposed exclusion amounts to management’s violation of its duty to
bargain because it disregards the bargaining history between the parties.

(C) Yes, once the coverage of the bargaining unit has been contractually defined, it can
no longer be redefined.

(D) No, bargaining history is not the only factor that determines the coverage of the
bargaining unit; seeking its redefinition is not negotiating in bad faith.

2012

1. The workers worked as cargadores at the warehouse and ricemills of farm A for
several years. As cargadores, they loaded, unloaded and pilled sacks of rice
from the warehouse to the cargo trucks for delivery to different places. They were
paid by Farm A on a piece-rate basis. Are the workers considered regular
employees?

a. Yes, because Farm A paid wages directly to these workers without the
intervention of any third party independent contractor;
 b. Yes, their work is directly related, necessary and vital to the operations of
the farm;

c. No, because Farm A did not have the power to control the workers with
respect to the means and methods by which the work is to be
accomplished;

d. A and B.

2. The following are excluded from the coverage of Book III of the Labor Code of
the Philippines (Conditions of employment) except:

a. Field personnel;

b. Supervisors;

c. Managers;

d. Employees of government-owned and controlled corporations.

3. Work may be performed beyond eight (8) hours a day provided that:

a. Employee is paid for overtime work an additional compensation

wquivalent to his regular wage plus at least 25% thereof;

b. Employee is paid for overtime work an additional compensation equivalent

to his regular wage plus at least 30% thereof;

c. Employee is paid for overtime work an additional compensation equivalent

to his regular wage plus at least 20% thereof;

d. None of the above.

4. May the employer and employee stipulate that the latter’s regular or basic salary
already includes the overtime pay, such that when the employee actually works
overtime he cannot claim overtime pay?

a. Yes, provided there is a clear written agreement knowingly and freely

entered into by the employees;
 b. Yes, provided the mathematical result shows that the agreed legal wage
rate and the overtime pay, computed separately, are equal to or higher
than the separate amounts legally due;

c. No, the employer and employee cannot stipulate includes the overtime
pay;

d. A and B.

5. The following are instances where an employer can require an employee to work
overtime, except:

a. In case of actual or impending emergencies caused by serious accident,

fire, flood, typhoon, earthquake, epidemic or other disaster or calamity to
prevent loss of life and property, or imminent danger to public safety;

b. When the country is at war or when other national or local emergency has
been declared by the national assembly or the chief executive;

c. When there is urgent work to be performed on machines, installations, or

equipment or some other cause of similar nature;

d. Where the completion or contribution of the work started before the eight
hour is necessary to prevent serious obstruction or prejudice to the
business or operations of the employer.

6. Z owns and operates a carinderia. His regular employees are his wife, his two (2)
children, the family maid, a cook, two (2) waiters, a dishwasher and a janitor. The
family driver occasionally works for him during store hours to make deliveries. On
April 09, the dishwasher did not report for work. The employer did not give his
pay for that day. Is the employer correct?

a. No, because employees have a right to receive their regular daily wage
during regular holidays;

b. Yes, because April 09 is not regular holidays;

c. Yes, because of the principle of "a fair day’s wage for a fair day’s work";
 d. Yes, because he employs less than ten (10) employees.

7. For misconduct or improper behavior to be just cause for dismissal, the following
guidelines must be met, except:

a. It must be serious;

b. It must relate to the performance of the employee’s duties;

c. It should not be used as a subterfuge for causes which are improper,

illegal or unjustified;

d. It must show that the employee has become unfit to continue working for
the employer.

8. The Company lawyer sent a memo to the employee informing him of the specific
charges against him and giving him an opportunity to explain his side. In a
subsequent letter, the employee was informed that, on the basis of the results of
the investigation conducted, his written explanation, the written explanation of
other employees as well as the audit report, the management has decided to
terminate his employment. The employee contended that his termination was
illegal for lack of procedural due process. Is the employee’s contention correct?

a. No, the employee’s written explanation and written explanation of the

other employees were sufficient basis for the employer to terminate his
employment;

b. Yes, because the employer did not abide by the two-notice rule;

c. Yes, because he was not properly afforded the chance to explain his side
in a conference;

d. No, because the written notice of the cause of dismissal afforded him
ample opportunity to be heard and defend himself, and the written notice
of the decision to terminate him which states the reasons therefor,
complies with the two-notice rule.
9. The Supreme Court categorically declared that separation pay shall be allowed
as a measure of social justice only in those instances where the employee is
validly dismissed for cause other than:

a. Serious Misconduct;

b. Gross and habitual neglect of duties;

c. Willful disobedience to lawful orders;

d. Fraud or willful breach of trust.

10. K is a legitimate contractor hired by G for six (6) months. On the third month, G
remitted to K the salaries and wages of the employees. However, K absconded
with the money leaving the employees unpaid. The disgruntled employees
demanded from G the payment of their salaries. Is G liable?

a. No, because G has already remitted the employees’ salaries to K, validly

excusing G from liablity;

b. Yes, because he is jointly and solidarily liable for whatever monetary

claims the employees may have against K;

c. Yes, because of the principle of "a fair day’s wage for a fair day’s work";

d. B and C.

11. Corporation X is owned by L’s family. L is the President. M, L’s wife, occasionally
gives loans to employees of Corporation X. It was customary that loan payment
were paid to M by directly deducting from the employee’s monthly salary. Is this
practice of directly deducting payments of debts from the employee’s wages
allowed?

a. Yes, because where the employee is indebted to the employer, it is

sanctioned by the law on compensation under Article 1706 of the Civil
Code;

b. Yes, because it has already become customary such that no express

authorization is required;
 c. No, because an employee’s payment of obligation to a third person is
deductible from the employee’s wages if the deduction is authorized in
writing;

d. No, because Article 116 of the Labor Code absolutely prohibits the
withholding of wages and kickbacks. Article 116 provides for no exception.

12. Union X staged a strike in front of Company B because of A CBA deadlock.

During the strike, Company B hired replacement workers. Upon resuming their
employment, the strikers found that Company B hired replacement workers in
their place. Is Company B obliged to reinstate the returning workers?

a. No, because the strike caused work stoppage;

b. No, because it is a valid exercise of management prerogative;

c. Yes, because workers who go on strike do not lose their employment

status;

d. Yes, because workers are entitled to such retention every time during a
valid strike.

13. Which of the following is not a valid reason for a strike?

a. There is a bargaining deadlock;

b. There is a prevailing intra-union dispute;

c. The company engaged in unfair labor practice;

d. Theirs is a flagrant violation of CBA’s economic provisions.

14. Iya, 15 years old, signed up to model a clothing brand. She worked from 9am to
4pm on weekdays and 1pm to 6pm on Saturdays for two (2) weeks. She was
issued a child working permit under RA 9231. Which of the following statements
is the most accurate?

a. Working permit for Iya’s employment is not required because the job is not
hazardous;
 b. Her work period exceeds the required working hours for children aged 15
years old;

c. To require a 15-year old to work without obtaining the requisite working

permit is a form of child labor;

d. Iya, who was engaged in a work that is not child labor, is a working child.

15. Under employee’s compensation, the so-called "Theory of Increased Risks" is

relevant when:

a. There is a need to categorize a disability as permanent and total;

b. It is not clear as to how an injury was sustained;

c. The ailment or sickness is not classified as an occupational disease;

d. There is a prima facie finding that the employee had willful intention to hurt
himself.

16. Which of the frollowing injuries/death is not compensable?

a. Injuries sustained by a technician while at a field trip initiated by the Union

and sponsored by the Company;

b. Injuries received by a jani tor at a Union election meeting;

c. Death of a bank teller because of a bank robbery;

d. Death of a professor who was hit by a van on his way home from work.

17. The provisions of the Labor Code on the Working Conditions and Rest Periods of
employees are inapplicable to the following employees, except :

a. A supervisor in a fast food chain;

b. A family driver;

c. A laborer without any fixed salary, but receving a compensation

depending upon the result of his work;

d. A contractual employee.
18. Bugay, an employee with only six (6) months of service, was dismissed due to
redundancy. He is, under Art. 283 of the Labor Code, entitled to a separation pay
of:

a. One (1) month pay;

b. One (1) year pay, Art. 283 of the Labor Code being explicit that "a fraction
of at least six (6) months shall be considered one ( 1) whole year";

c. Six (6) months pay;

d. One (1) year and six (6) months pay, as Art. 4 of the Labor Code
mandates that "(a)ll doubts in the implementation and interpretation of this
Code xxx shall be resolved in favor of labor".

19. The power to suspend or cancel a license to recruit employees is vested on:

a. The Secretary of Labor and Employment;

b. The POEAAdministrator;

c. A and B 'concurrently;

d. Neither of them.

20. The State shall allow the deployment of overseas Filipino workers only in
countries where the rights of Filipino migrant workers are protected. Which of the
following is not a guarantee, on the part of the receiving country, for the
protection of the rights of OFW's?

a. It has existing labor and social laws protecting the rights of migrant
workers;

b. It promotes and facilitates re-integration of migrants into the national

mainstream;

c. It is a signatory to and/or ratifier of multilateral conventions, declarations or

resolutions relating to the protection of migrant workers;
 d. It has concluded a bilateral agreement or arrangement with the
government on the protection of the rights of overseas Filipino workers.

21. Which is not a procedural requirement for the correction of wage distortion in an
unorganized establishment?

a. Both employer and employee will attempt to correct the distortion;

b. Settlement of the dispute through National Conciliation and Mediation

Board (NCMB);

c. Settlement of the dispute through voluntary arbitration in case of failure to

resolve dispute through CBA dispute mechanism;

d. A and B.

22. In what situation is an employer permitted to employ a minor?

a. 16-year old child actor as a cast member in soap opera working 8 hours a
day, 6 days a week;

b. A 17-year old in deep sea-fishing;

c. A 17 -year old construction worker;

d. A 17-year old assistant cook in a family restaurant.

23. The most important factor in determining the existence of an employer-employee

relationship is the:

a. Power to control the method by which employees are hired and selected;

b. Power to control the manner by which employees are transferred from one
job site to another;

c. Power to control the results achieved by giving guidelines to the

employees;

d. Power to control the results to be achieved and the employee's method of

achieving the task.
24. A neighbor's gardener comes to you and asks for help because his employer
withheld his salary for two (2) months amounting to P4,000.00. Where will you
advise him to file his complaint?

a. Labor Arbiter;

b. DOLE Regional Director;

c. Conciliator/Mediator;

d. MTC Judge.

25. What is the nature of the liabilities of the local recruitment agency and its foreign
principal?

a. The local agency is jointly liable with the foreign principal; severance of
relations between the local agent and the foreign principal dissolves the
liability of the local agent recruiter;

b. Local agency is solidarily liable with the foreign principal; severance of

relations between the local agent and the foreign principal dissolves the
liability of the foreign principal. only;

c. Local agency is solidarily liable with the foreign principal; severance of

relations between the local agent and foreign principal does not affect the
liability of the foreign principal;

d. Local agency is jointly liable with the foreign principal; severance of the
relations between the local agent and the foreign principal does not affect
the liability of the local recruiter.

26. Which phrase is the most accurate to complete the statement - A private
employment agency is any person or entity engaged in the recruitment and
placement of workers:

a. for a fee, which is charged directly from the workers.

b. for a fee, which is charged directly from employers.

 c. for a fee, which is charged directly or indirectly from workers, employers or
both.

d. for a fee, which is charged from workers or employers, which covers both
local and overseas employment.

27. Who has jurisdiction over a money claim instituted by an overseas Filipino
worker?

a. Labor Arbiter;

b. National Labor Relations Commission;

c. Labor Arbiter concurrently with the regular courts.;

d. National Labor Relations Commission concurrently with the regular courts.

28. Which of the following is not a valid wage deduction?

a. Where the worker was insured with his consent by the employer, and the
deduction is allowed to recompense the employer for the amount paid by
him as the premium on the insurance;

b. When the wage is subject of execution or attachment, but only for debts
incurred for food, shelter, clothing and medical attendance;

c. Payment for lost or damaged equipment provided the deduction does not
exceed 25°/o of the employee's salary for a week;

d. Union dues.

29. Is the contractor a necessary party in a case where labor contracting is the main
issue and labor-only contracting is found to exist?

a. Yes, the contractor is necessary in the full determination of the case as he

is the purported employer of the worker;

b. Yes, no full remedy can be granted and executed without impleading the
purported contractor;
 c. No, the contractor becomes a mere agent of the employer-principal in
labor contracting;

d. No, the contractor has no standing in a labor contracting case.

30. Who among the following is not entitled to 13th month pay?

a. Stephanie, a probationary employee of a cooperative bank who rendered

six (6) months of service during the calendar year before filing her
resignation;

b. Rafael, the secretary of a Senator;

c. Selina, a cook employed by and who lives with an old maid and who also
tends the sari-sari store of the latter;

d. Roger, a house gardener who is required to report to work only thrice a

week.

31. Which type of employee is entitled to a service incentive leave?

a. managerial employees;

b. field personnel;

c. government workers;

d. part-time workers.

32. A wage order may be reviewed on appeal by the National Wages and
Productivity Commission under these grounds, except:

a. grave abuse of discretion;

b. non-conformity with prescribed procedure;

c. questions of law;

d. gross under or over-valuation.

 33. The following may file a Petition for Certification Election, except:

a. The employer;

b. The legitimate labor organization;

c. The Federation on behalf of the chapter;

d. The Workers' Association.

34. The following are grounds to deny the Petition for Certification Election, except:

a. The petitioning union is illegitimate or improperly registered;

b. Non-appearance for two consecutive schedules before the Med-Arbiter by

petitioning union;

c. The inclusion of members outside the bargaining unit;

d. Filed within an existing election bar.

35. In response to Company X's unfair labor practices, a union officer instructed its
members to stop working and walk out of the company premises. After three (3)
hours, they voluntarily returned to work.

Was there a strike and was it a valid activity?

a. Yes, it was a strike; yes, it was a valid activity;

b. Yes, it was a strike; no, it was not a valid activity;

c. No, it was not a strike; yes, it was a valid activity;

d. No, it was not a strike; no, it was not a valid activity.

36. Which of the following is not considered an employer by the terms of the Social
Security Act?

a. A self-employed person;

b. The government and any of its political subdivisions, branches or

instrumentalities, including corporations owned or controlled by the
government;

c. A natural person, domestic or foreign, who carries on in the Philippines,

any trade, business, industry, undertaking or activity of any kind and uses
the services of another person who is under his orders as regards the
employment;

d. A foreign corporation.

37. Jennifer, a receptionist at Company X, is covered by the SSS. She was pregnant
with her fourth child when she slipped in the bathroom of her home and had a
miscarriage. Meanwhile, Company X neglected to remit the required
contributions to the SSS. Jennifer claims maternity leave benefits and sickness
benefits. Which of these two may she claim?

a. None of them;

b. Either one of them;

c. Only maternity leave benefits;

d. Only sickness benefits.

38. H files for a seven-day paternity leave for the purpose of lending support to his
wife, W, who suffered a miscarriage through intentional abortion. W also filed for
maternity leave for five weeks. H and W are legally married but the latter is with
her parents, which is a few blocks away from H's house. Which of the following
statements is the most accurate?

a. Paternity leave shall be denied because it does not cover aborted babies;

b. Paternity leave shall be denied because W is with her parents;

 c. Maternity leave shall be denied because it does not cover aborted babies;

d. Maternity leave shall be denied because grant of paternity leave bars

claim for maternity leave.

39. Which of the following is not a privilege of a person with disability under the
Magna Carta for disabled persons?

a. At least 20%_ discount on purchase of medicines in all drugstores;

b. Free transportation in public railways;

c. Educational assistance in public and private schools through scholarship

grants;

d. A and C.

40. Which of the following is not a regular holiday?

a. New Year's Eve;

b. Eidil Fitr;

c. Father's Day;

d. lndepenaence Day.

41. Which is a characteristic of a labor-only contractor?

a. Carries an independent business different from the employer's;

b. The principal's liability extends to all rights, duties and liabilities under
labor standards laws including the right to self-organization;

c. No employer-employee relationship;

d. Has sufficient substantial capital or investment in machinery, tools or

equipment directly or intended to be related to the job contracted.
42. What is not an element of legitimate contracting?

a. The contract calls for the performance of a specific job, work or service;

b. It is stipulated that the performance of a specific job, work or service must

be within a definite predetermined period;

c. The performance of specific job, work or service has to be completed

either within or outside the premises of the principal;

d. The principal has control over the performance of a specific job, work or
service.

43. Which is a characteristic of the learner?

a. A person is hired as a trainee in an industrial occupation;

b. Hired in a highly technical industry;

c. Three (3) months practical on-the-job training with theoretical instruction;

d. At least 14 years old.

44. What is not a prerequisite for a valid apprenticeship agreement?

a. Qualifications of an apprentice are met;

b. A duly executed and signed apprenticeship agreement;

c. The apprenticeship program is approved by the Secretary of Labor;

d. Included in the list of apprenticeable occupation of TESDA.

45. Which is not a constitutional right of the worker?

a. The right to engage in peaceful concerted activities;

b. The right to enjoy security of tenure;

c. The right to return on investment;

d. The right to receive a living wage.

46. Employee-employer relationship exists under the following, except :

a. Jean, a guest relations officer in a nightclub and Joe, the nightclub owner;

b. Atty. Sin' Cruz, who works part-time as the resident in house lawyer of X
Corporation;

c. Paul, who works as registered agent on commission basis in an insurance

company; ·

d. Jack and Jill, who work in X Company, an unregistered Association.

47. With respect to legitimate independent contracting, an employer or one who

engages the services of a bona fide independent contractor is -

a. An indirect employer, by operation of law, of his contractor's employees;

he becomes solidarily liable with the contractor not only for unpaid wages
but also for all the rightful! claims of the employees under the Labor Code;

b. Treated as direct employer of his contractor's employees in all instances;

he becomes subsidiarily liable with the contractor only in the event the
latter fails to pay the employees' wages and for violation of labor standard
laws;

c. An indirect employer, by operation of law, of his contractor's employees;

he becomes solidarily liable with the contractor only in the event the latter
fails to pay the employees' wages and for violation of labor standard laws;

d. Treated as direct employer of his contractor's employees in all instances;

the principal becomes solidarily liable with the contractor not only for
unpaid wages but also for all the rightful claims of the employees under
the Labor Code;
48. Kevin, an employee of House of Sports, filed a complaint with the DOLE
requesting the investigation and inspection of the said establishment for labor law
violations such as underpayment of wages, non-payment of 13th month pay,
non-payment of rest day pay, overtime pay, holiday pay, and service incentive
leave pay. House of Sports alleges that DOLE has no jurisdiction over the
employees' claims where the aggregate amount of the claims of each employee
exceeds P5,000.00, whether or not accompanied with a claim for reinstatement.
Is the argument of House of Sports tenable?

a. Yes, Article 1 ~9 of the Labor Code shall apply, and thus, the Labor Arbiter
has jurisdiction;

b. No, Article 128 (b) of the Labor Code shall apply, and thus, the DOLE
Regional Director has jurisdiction;

c. Yes, if the claim exceeds P5,000.00, the DOLE Secretary loses

jurisdiction;

d. No, a voluntarily arbitrator has jurisdiction because the matter involved is a

grievable issue.

49. Which of the following is not compensable as hours worked?

a. Travel away from home;

b. Travel from home to work;

c. Working while on call;

d. Travel that is all in a day's work.

50. It is defined as any union or association of employees which exists in whole or in

part for the purpose of collective bargaining with employers concerning terms
and conditions of employment.

a. Bargaining representative;

b. Labor organization;
 c. Legitimate labor organization;

d. Federation.

51. This process refers to the submission of the dispute to an impartial person for
determination on the basis of the evidence and arguments of the parties. The
award is enforceable to the disputants.

a. Arbitration;

b. Mediation;

c. Conciliation;

d. Reconciliation.

52. The Regional Director or his representative may be divested of his enforcement
and visitorial powers under the exception clause of Article 128 of the Labor Code
and, resultantly, jurisdiction may be vested on the labor arbiter when three (3)
elements are present. Which of the following is not one of the three (3)
elements?

a. Employer contests the findings of the labor regulations officers and raises
issues thereon;

b. In order to resolve any issues raised, there is a need to examine

evidentiary matters;

c. The issues raised should have been verifiable during the inspection;

d. The evidentiary matters are not verifiable in the normal course of

inspection .

53. In what instances do labor arbiters have jurisdiction over wage distortion cases?

a. When jurisdiction is invoked by the employer and employees in organized

establishments;

b. When the case is unresolved by Grievance Committee;

 c. After the panel of voluntarily arbitrators has made a decision and the same
is contested by either party;

d. In unorganized establishments when the same is not voluntarily resolved

by the parties before the NCMM.

54. Is a termination dispute a grievable issue?

a. Yes, if the dismissal arose out of the interpretation or Implementation of

the CBA;

b. No, once there's actual termination, the issue is cognizable by a Labor

Arbiter;

c. Yes, it is in the interest of the parties that the dispute be resolved on the
establishment level;

d. No, a voluntary arbitrator must take cognizance once termination is made

effective.

55. Peter worked for a Norwegian cargo vessel. He worked as a deckhand, whose
primary duty was to assist in the unloading and loading of cargo and sometimes,
assist in cleaning the ship. He signed a five-year contract starting in 2009. In
2011, Peter's employers began treating him differently. He was often maltreated
and his salary was not released on time. These were frequently protested to by
Peter. Apparently exasperated by his frequent protestations, Peter's employer, a
once top official in China, suddenly told him that his services would be terminated
as soon as the vessel arrived at the next port, in Indonesia. Peter had enough
money to go back home, and immediately upon arriving, he filed a money claim
with the NLRC against his former employer's local agent. Will Peter's case
prosper?

a. Yes, he is entitled to full reimbursement of his placement fee, with' interest

at 12°/o per annum, plus salary for the unexpired portion of his
employment contract or for three (3) months for every year of the
unexpired portion, whichever is higher;
 b. Yes, he is entitled to full reimbursement of his placement fee, with interest
at 12% per annum, plus his salary for the unexpired portion of his
employment contract or for three (3) months for every year of the
unexpired portion, whichever is less;

c. Yes, he is entitled to his salaries for the unexpired portion of his

employment contract, plus full reimbursement of his placement fee with
interest at ·12°/o per annum;

d. Yes, he is entitled to his salaries for three (3) months for every year of the
unexpired portion of his employment contract, plus full reimbursement of
his placement fee with interest at 12°/o per annum.

56. The following are exempt from the rules on minimum wages, except:

a. Household or domestic helpers; .

b. Homeworkers engaged in needle work;

c. Workers' in duly registered establishment in the cottage industry;

d. Workers in the duly registered cooperative.

57. Which of the following is a right and/or condition of membership in a labor

organization?

a. No arbitrary or excessive initiation fees shall be required of the members

of a legitimate labor organization nor shall arbitrary, excessive or
oppressive fine and forfeiture be imposed;

b. The members shall be entitled to full and detailed reports from their
officers and representatives of all financial transactions as provided for in
the constitution and bylaws of the organization;

c. No labor organization shall knowingly admit as members or continue in

membership any individual who belongs to a subversive organization or
who is engaged directly or indirectly in any subversive activity;

d. All of the above.

58. Which phrase most accurately completes the statement - Members of
cooperatives:

a. can invoke the right to collective bargaining because it is a fundamental

right under the Constitution.

b. can invoke the right to collective bargaining because they are permitted by
law.

c. cannot invoke the right to collective bargaining because each member is

considered an owner.

d. cannot invoke the right to collective bargaining because they are expressly
prohibited by law.

59. Which of the following is not true in unfair labor practices committed by an
employer?

a. Unfair labor practices cannot be committed unless the union has been
formed and registered;

b. The commission of unfair labor practice requires an employer-employee

relationship;

c. The offense of unfair labor practice prescribes in one ( 1) year;

d. The list of unfair labor practices is exclusive.

60. Which of the following is correct with respect to the extent of the application of
security of tenure?

a. It applies to managerial and to all rank-and-file employees i f not yet

regular, but not to management trainees;

b. It applies to managerial and to all rank-and-file employees including those

under probation;

c. It applies to seasonal and project employees, if they are hired repeatedly;

 d. It applies to all kinds of employees except those employed on a part-time
basis.

61. Which of the following is not a procedural due process requirement in the
termination of an employee for just cause?

a. A written notice to the employee specifying the grounds for his

termination;

b. A written notice to the DOLE at least thirty (30) days before the effectivity
of termination;

c. A written notice to the employee stating that upon consideration of the

circumstances, grounds have been established to justify his termination;

d. An opportunity for the employee to present his evidence.

62. Under current jurisprudence, when the dismissal is for a just or authorized cause
but due process is not observed, the dismissal is said to be:

a. Void for denial of due process; hence, the employee should be reinstated;

b. Void for lack. of due process, the employee should be paid full
backwages;

c. Valid, for the dismissal is with just/authorized cause, but the employer
shall be liable for nominal damages;

d. Valid, even if due process is not observed, hence reinstatement should

not be ordered.

63. What is the quantum of evidence required in labor cases?

a. The degree of proof which produces the conclusion that the employee is
guilty of the offense charged in an unprejudiced mind;

b. Such amount of relevant evidence which a reasonable mind might accept

as adequate to justify a conclusion;
 c. That degree of proof which is greater in weight than the opposing party's
evidence;

d. Such evidence which must be highly and substantially more probable to

be true than not which convinces the trier of facts of its factuality.

64. Which of the following statements is the most accurate?

a. Domestic helpers with monthly income of at least P3,000.00 are

compulsory members of the SSS Law;

b. House helpers with monthly income of at least P2,000.00 are compulsory

members of the SSS Law;

c. Domestic helpers, 55 years of age and who worked for at least five (5)
years, are covered by the Retirement Pay Law under optional retirement,
in the absence of a CBA;

d. Domestic helpers in the personal service of another are not entitled to

13th month pay.

65. The decision of the Labor Arbiter in a labor dispute case is:

a. immediately executory;

b. requires a writ of execution;

c. is immediately executory insofar as the reinstatement of the employee is

concerned;

d. is stayed by the appeal of the employer and posting of appeal bond.

66. Which of the following is cognizable by the Bureau of Labor Relations Med-
Arbiters?

a. Unfair labor practice for violation of the CBA filed by the Workers Union of
Company X against Company X;

b. Claim for back wages filed by overseas contract worker Xena against her
Saudi Arabian employer;
 c. Contest for the position of MG Union President brought by Ka Joe, the
losing candidate in the recent union elections;

d. G contesting his removal as Chief Executive Officer of Company Z.

67. J refused to comply with his deployment assignment with K, a manning agency.
K filed a complaint against him for breach of contract before the Philippine
Overseas Employment Administration (POEA). The POEA penalized J with one
(1) year suspension from overseas deployment. On appeal, the suspension was
reduced to six (6) months by the Secretary of Labor. Is the remedy of appeal still
available to J and where should he file his appeal?

a. Yes, he can file an appeal before the Court of Appeals via a Petition for
Certiorari under rule 65;

b. Yes, he can file an appeal before the Supreme Court via a Petition for
Certiorari under Rule 65;

c. Yes, he can file an appeal before the Office of the President since this is
an administrative case;

d. Yes, he can file an appeal before the National Labor Relations

Commission because there is an employer-employee relationship.

68. R was employed as an instructor of Cruz College located in Santiago City,

lsabela. Pursuant to a stipulation in R's employment contract that the college has
the prerogative to assign R in any of its branches or tie-up schools as the
necessity demands, the college proposed to transfer him to llagan, a nearby
town. R filed a complaint alleging constructive dismissal since his re-assignment
will entail an indirect reduction of his salary or diminution of pay considering that
additional allowance will not be given to cover for board and lodging expenses.
R, however, failed to prove that allowances were given in similar instances in the
past. Is R's contention that he will suffer constructive dismissal in view of the
alleged diminution of benefit correct?
 a. Yes, such transfer should require an automatic additional allowance; the
non-granting of said allowance amounts to a diminution of benefit;

b. No, R failed to present evidence that the college committed to provide the
additional allowance or that they were consistently granting such benefit
as to have ripened into a practice which cannot be peremptorily
withdrawn. Hence, there is no violation of the rule against diminution of
pay;

c. No, R's re-assignment did not amount to constructive dismissal because

the college has the right to transfer R based on contractual stipulation;

d. B and C.

69. At what particular point does a labor organization acquire a legal personality?

a. On the date the agreement to organize the un1on is signed by the majority
of all its members;

b. On the date the application for registration is duly filed with the
Department of Labor.;

c. On the date appearing on the Certificate of Registration;

d. On the date. the Certificate of Registration is actually issued.

70. How many years of service is the underground mine employee required to have
rendered in order to be entitled to retirement benefits?

a. 5;

b. 10;

c. 15;

d. 20.
71. What is the prescriptive period of all criminal offenses penalized under the Labor
Code and the Rules Implementing the Labor Code?

a. 3 years;

b. 4 years;

c. 5 years;

d. 10 years.

72. What is the nature of employment of househelpers?

a. Seasonal;

b. Fixed-term;

c. Regular;

d. Probationary.

73. The appeal to the NLRC may be entertained only on any of the following
grounds, except:

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 fact and law;

d. If serious errors in the findings of facts are raised which would cause
grave or irreparable damage or injury to the appellant

74. The following are unfair labor practices of employers, except:

a. Interrogating its employees in connection with their membership in the

union or their union activities which hampers their exercise of free choice;

b. The grant of profit-sharing benefits to managers, supervisors and all rank-

and-file employees not covered by the CBA;
 c. The cessation of a company's operations shortly after the organization of a
labor union and the resumption of business barely a month after;

d. Withdrawal by the employer of holiday pay benefits stipulated under a

supplementary agreement with the union.

75. According to Article 78 of the Labor Code., a handicapped worker is one whose
earning capacity is impaired by the following, except :

a. Age;

b. Physical Deficiency;

c. Mental Deficiency;

d. Psychological Deficiency.

Part II

I.

a. Distinguish Labor-Only contracting and Job-Only contracting. (5%)

b. A deadlock in the negotiations for the collective bargaining agreement between

College X and the Union prompted the latter, after duly notifying the DOLE, to
declare a strike on November 5. The strike totally paralyzed the operations of the
school. The Labor Secretary immediately assumed jurisdiction over the dispute
and issued on the same day (November 5) a return to work order. Upon receipt
of the order, the striking union officers and members, on November 1, filed a
Motion for Reconsideration thereof questioning the Labor Secretary's assumption
of jurisdiction, and continued with the strike during the pendency of their motion.
On November 30, the Labor Secretary denied the reconsideration of his return to
work order and further noting the strikers' failure to immediately return to work,
terminated their employment. In assailing the Labor Secretary's decision, the
Union contends that:
 1. The Labor Secretary erroneously assumed jurisdiction over the dispute since
College X could not be considered an industry indispensable to national interest;

2. The strikers were under no obligation to immediately comply with the November
5 return to work order because of their then pending Motion for Reconsideration
of such order; and

3. The strike being legal, the employment of the striking Union officers and
members cannot be terminated. Rule on these contentions. Explain. (5%)

II.

In the Collective Bargaining Agreement (CBA) between Dana Films and its rank-and-file
Union (which is directly affiliated with MMFF, a national federation), a provision on the
maintenance of membership expressly provides that the Union can demand the
dismissal of any member employee who commits acts of disloyalty to the Union as
provided for in its Constitution and By-Laws. The same provision contains an
undertaking by the Union (MMFF) to hold Dana Films free from any and all claims of
any employee dismissed. During the term of the CBA, MMFF discovered that certain
employee-members were initiating a move to disaffiliate from MMFF and join a rival
federation, FAMAS. Forthwith, MMFF sought the dismissal of its employee-members
initiating the disaffiliation movement from MMFF to FAMAS. Dana Films, relying on the
provision of the aforementioned CBA, complied with MMFF's request and dismissed the
employees identified by MMFF as disloyal to it.

a. Will an action for illegal dismissal against Dana Films and MMFF prosper or not?
Why? (5%))

b. What are the liabilities of Dana Films and MMFF to the dismissed employees, i f
any? (5%)
III.

a. On August 01, 2008, Y, a corporation engaged in the manufacture of textile

garments, entered into a collective bargaining agreement with Union X in
representation of the rank and-file employees of the corporation. The CBA was
effective up to June 20, 2011. The contract had an automatic renewal clause
which would allow the agreement after its expiry date to still apply until both
parties would have been able to execute a new agreement. On May 10, 2011,
Union X submitted to Y's management their proposals for the negotiation of a
new CBA. The next day, Y suspended negotiations with Union X since Y had
entered into a merger with z,· a corporation also engaged in the manufacture of
textile garments. Z assumed all the assets and liabilities of Y. Union X filed a
complaint with the Regional Trial Court for specific performance and damages
with a prayer for preliminary injunction against Y and Z and Z filed a Motion to
Dismiss based on lack of jurisdiction. Rule on the Motion to Dismiss. (5%)

b. X was one of more than one hundred (100) employees who were terminated
from employment due to the closure of Construction Corporation A. The Cruz
family owned Construction Company A. Upon the closure of Construction
Company A, the Cruzes established Construction Company B. Both corporations
had the same president, the same board of directors, the same corporate
officers, and all the same subscribers. From the General Information Sheet filed
by both companies, it also showed that they shared the same address and/or
premises. . Both companies also hired the same accountant who prepared the
books for both companies.

X and his co-employees amended their Complaint with the Labor Arbiter to hold
Construction Corporation 8 joint and severally liable with Construction Company A for
illegal dismissal, backwages and separation pay. Construction Company 8 interposed a
Motion to Dismiss contending that they are juridical entities with distinct and separate
personalities from Construction Corporation A and therefore, they cannot be held jointly
and severally liable for the money claims of workers who are not their employees. Rule
on the Motion to Dismiss. Should it be granted or denied? Why? (5%)
IV.

a. Juicy Bar and Night Club allowed by tolerance fifty (50) Guest Relations Officers
(GROs) to work without compensation in its establishment under the direct
supervision of its Manager from 8:00 P.M. To 4:00 A.M. everyday, including
Sundays and holidays. The GROs, however, were free to ply their trade
elsewhere at anytime, but once they enter the premises of the night club, they
Were required to stay up to closing time. The GROs earned their keep
exclusively from commissions for food and drinks, and tips from generous
customers. In time, the GROs formed the Solar Ugnayan ng mga Kababaihang
lnaapi (SUKI), a labor union duly registered with DOLE. Subsequently, SUKI filed
a petition for Certification Election in order to be recognized as the exclusive
bargaining agent of its members. Juicy Bar and Night Club opposed the petition
for Certification Election on the singular ground of absence of employer-
employee relationship between the GROs on one hand and the night club on the
other hand. May the GROs form SUKI as a labor organization for purposes of
collective bargaining? Explain briefly. (5%)

b. A spinster school teacher took pity on one of her pupils, a robust and precocious
12-year old boy whose poor family could barely afford the cost of his schooling.
She lives alone at her house near the School after her housemaid had left. In the
afternoon, she lets the boy do various chores as cleaning, fetching water and all
kinds of errands after school hours. She gives him rice and P100.00 before the
boy goes home at 7:00 every night. The school principal learned about it and
charged her with violating the law which prohibits the employment of children
below 15 years of age. In her defense, the teacher stated that the work
performed by her pupil is not hazardous. Is her defense tenable? Why? (5%)

V.

The weekly work schedule of a driver is as follows: Monday, Wednesday, Friday - drive
the family car to bring and fetch the children to and from school. Tuesday, Thursday,
Saturday - drive the family van to fetch merchandise from suppliers and deliver the
same to a boutique in a mall owned by the family.
 a. Is the driver a house helper? (5%)

b. The same driver claims that for work performed on Tuesday, Thursday and
Saturday, he should be paid the minimum daily wage of a driver of a commercial
establishment. Is the claim of the driver valid? (5%)

VI.

a. For humanitarian reasons, a bank hired several handicapped workers to count

and sort out currencies. The handicapped workers knew that the contract was
only for a period of six-months and the same period was provided in their
employment contracts. After six months, the bank terminated their employment
on the ground that their contract has expired. This prompted the workers to file
with the Labor Arbiter a complaint for illegal dismissal. Will their action prosper?
Why or why not? (5%)

b. Mam-manu Aviation Company (Mam-manu) is a new airline company recruiting

flight attendants for its domestic flights. It requires that the applicant be single,
not more than 24 years old, attractive, and familiar with three (3) dialects, viz:
llonggo, Cebuano and Kapampangan. lngga, 23 years old, was accepted as she
possesses all the qualifications. After passing the probationary period, lngga
disclosed that she got married when she was 18 years old but the marriage was
already in the process of being annulled on the ground that her husband was
afflicted with a sexually transmissible disease at the time of the celebration of
their marriage. As a result of this revelation, lngga was not hired as a regular
flight attendant. Consequently, she filed a complaint against Mam-manu alleging
that the pre-employment qualifications violate relevant provisions of the Labor
Code and are against public policy. Is the contention of lngga tenable? Why?
(5%)
VII.

a. Inggu, an electronics technician, worked within the premises of Pit Stop, an auto
accessory shop. He filed a Complaint for illegal dismissal, overtime pay and other
benefits against Pit Stop. Pit Stop refused to pay his claims on the ground that
lnggu was not its employee but was an independent contractor . . It was common
practice for shops like Pit Stop to collect the service fees from customers and pay
the same to the independent contractors at the end of each week. The auto shop
explained that lnggu was like a partner who worked within its premises, using
parts provided by the shop, but otherwise lnggu was free to render service in the
other auto shops. On the other hand, lnggu insisted that he still was entitled to
the benefits because he was loyal to Pit Stop, it being a fact that he did not
perform work for anyone else. Is lnggu correct? Explain briefly. (5%)

b. The modes of determining an exclusive bargaining agreement are:

1. voluntary recognition

2. certification election

3. consent election

Explain briefly how they differ from one another. (5%)

VIII.

ABC Tomato Corporation, owned and managed by three (3) elderly brothers and two (2)
sisters, has been in business for 40 years. Due to serious business losses and financial
reverses during the last five (5) years, they decided to close the business.

a. As counsel for the corporation, what steps will you take prior to its closure? (3%)

b. Are the employees entitled to separation pay? (2%)

If the reason for the closure is due to old age of the brothers and sisters:

c. Is the closure allowed by law? (2%)

d. Are the employees entitled to separation benefits? (3%)

IX.

Dennis was a taxi driver who was being paid on the "boundary" system basis. He
worked tirelessly for Cabrera Transport Inc. for fourteen (14) years until he was eligible
for retirement. He was entitled to retirement benefits. During the entire duration of his
service, Dennis was not given his 13th month pay or his service incentive leave pay.

a. Is Dennis entitled to 13th month pay and service leave incentive pay? Explain.
(5%)

b. Since he was not given his 13th month pay and service incentive leave pay,
should Dennis be paid upon retirement, in addition to the salary equivalent to
fifteen (15) days for every year of service, the additional 2.5 days representing
one-twelfth (1/12) of the 13th month pay as well as the five (5) days representing
the service incentive leave for a total of 22.5 days? Explain. (5%)

X.

a. XYZ Manpower Services (XYZ) was sued by its employees together with its
client, ABC Polyester Manufacturing Company (ABC). ABC is one of the many
clients of XYZ. During the proceedings before the Labor Arbiter, XYZ was able to
prove that it had substantial capital of Three Million Pesos. The Labor Arbiter
ruled in favor of the employees because it deemed XYZ as a labor only
contractor. XYZ was not able to prove that it had invested in tools, equipment,
etc. Is the Labor Arbiter's ruling valid? Explain. (5%)

b. Does the performance by a contractual employee, supplied by a legitimate

contractor, of activities directly related to the main business of the principal make
him a regular employee of the principal? Explain. (5%)
2013

I.

Jose and Erica, former sweethearts, both worked as sales representatives for Magna, a
multinational firm engaged in the manufacture and sale of pharmaceutical products.
Although the couple had already broken off their relationship, Jose continued to have
special feelings for Erica.

One afternoon, Jose chanced upon Erica riding in the car of Paolo, a co-employee and
Erica's ardent suitor; the two were on their way back to the office from a sales call on
Silver Drug, a major drug retailer. In a fit of extreme jealousy, Jose rammed Paolo's car,
causing severe injuries to Paolo and Erica. Jose's flare up also caused heavy damage
to the two company-owned cars they were driving.

(A) As lawyer for Magna, advise the company on whether just and valid grounds exist to
dismiss Jose. (4%)

(B) Assuming this time that Magna dismissed Jose from employment for cause and you
are the lawyer of Jose, how would you argue the position that Jose's dismissal was
illegal? (4%)

II.

Gamma Company pays its regular employees P350.00 a day, and houses them in a
dormitory inside its factory compound in Manila. Gamma Company also provides them
with three full meals a day.

In the course of a routine inspection, a Department of Labor and Employment (DOLE)

Inspector noted that the workers' pay is below the prescribed minimum wage of P426.00
plus P30.00 allowance, and thus required Gamma Company to pay wage differentials.

Gamma Company denies any liability, explaining that after the market value of the
company-provided board and lodging are added to the employees' P350 cash daily
wage, the employees' effective daily rate would be way above the minimum pay
required by law. The company counsel further points out that the employees are aware
that their food and lodging form part of their salary, and have long accepted the
arrangement.

Is the company's position legally correct?(8%)

III.

Inter-Garments Co. manufactures garments for export and requires its employees to
render overtime work ranging from two to three hours a day to meet its clients'
deadlines. Since 2009, it has been paying its employees on overtime an additional 35%
of their hourly rate for work rendered in excess of their regular eight working hours.

Due to the slowdown of its export business in 2012, Inter-Garments had to reduce its
overtime work; at the same time, it adjusted the overtime rates so that those who
worked overtime were only paid an additional 25%instead of the previous 35%. To
replace the workers' overtime rate loss, the company granted a one-time 5% across-
the-board wage increase.

Vigilant Union, the rank-and-file bargaining agent, charged the company with Unfair
Labor Practice on the ground that (1) no consultations had been made on who would
render overtime work; and (2) the unilateral overtime pay rate reduction is a violation of
Article 100 (entitled Prohibition Against Elimination or Diminution of Benefits) of the
Labor Code.

Is the union position meritorious? (8%)

IV.

Bobby, who was assigned as company branch accountant in Tarlac where his family
also lives, was dismissed by Theta Company after anomalies in the company's
accounts were discovered in the branch Bobby filed a complaint and was ordered
reinstated with full backwages after the Labor Arbiter found that he had been denied
due process because no investigation actually took place.

Theta Company appealed to the National Labor Relations Commission (NLRC) and at
the same time wrote Bobby, advising him to report to the main company office in Makati
where he would be reinstated pending appeal Bobby refused to comply with his new
assignment because Makati is very far from Tarlac and he cannot bring his family to live
with him due to the higher cost of living in Makati.

(A) Is Bobby's reinstatement pending appeal legally correct? (4%)

(B) Advise Bobby on the best course of action to take under the circumstances. (4%)

V.

Cris filed a complaint for illegal dismissal against Baker Company. The Labor Arbiter
dismissed the complaint but awarded Cris financial assistance. Only the company
appealed from the Labor Arbiter's ruling. It confined its appeal solely to the question of
whether financial assistance could be awarded. The NLRC, instead of ruling solely on
the appealed issue, fully reversed the Labor Arbiter's decision; it found Baker Company
liable for illegal dismissal and ordered the payment of separation pay and full
backwages.

Through a petition for certiorari under Rule 65 of the Rules of Court, Baker Company
challenged the validity of the NLRC ruling. It argued that the NLRC acted with grave
abuse of discretion when it ruled on the illegal dismissal issue, when the only issue
brought on appeal was the legal propriety of the financial assistance award.

Cris countered that under Article 218(c) of the Labor Code, the NLRC has the authority
to "correct, amend, or waive any error, defect or irregularity whether in substance or in
form" in the exercise of its appellate jurisdiction.

Decide the case. (8%)

VI.

Because of the stress in caring for her four (4) growing children, Tammy suffered a
miscarriage late in her pregnancy and had to undergo an operation. In the course of the
operation, her obstetrician further discovered a suspicious-looking mass that required
the subsequent removal of her uterus (hysterectomy). After surgery, her physician
advised Tammy to be on full bed rest for six (6) weeks. Meanwhile, the biopsy of the
sample tissue taken from the mass in Tammy's uterus showed a beginning malignancy
that required an immediate series of chemotherapy once a week for four (4) weeks.
(A) What benefits can Tammy claim under existing social legislation? (4%)

(B) What can Roger-Tammy's 2nd husband and the father of her two (2) younger
children -claim as benefits under the circumstances? (4%)

VII.

Philippine Electric Company is engaged in electric power generation and distribution. It

is a unionized company with Kilusang Makatao as the union representing its rank-and-
file employees. During the negotiations for their expired collective bargaining agreement
(CBA), the parties duly served their proposals and counter-proposals on one another.
The parties, however, failed to discuss the merits of their proposals and counter-
proposals in any formal negotiation meeting because their talks already bogged down
on the negotiation ground rules, i.e., on the question of how they would conduct their
negotiations, particularly on whether to consider retirement as a negotiable issue.

Because of the continued impasse, the union went on strike. The Secretary of Labor
and Employment immediately assumed jurisdiction over the dispute to avert widespread
electric power interruption in the country. After extensive discussions and the filing of
position papers (before the National Conciliation and Mediation Board and before the
Secretary himself) on the validity of the union's strike and on the wage and other
economic issues (including the retirement issue), the DOLE Secretary ruled on the
validity of the strike and on the disputed CBA issues, and ordered the parties to execute
a CBA based on his rulings.

Did the Secretary of Labor exceed his jurisdiction when he proceeded to rule on the
parties' CBA positions even though the parties did not fully negotiate on their own? (8%)

VIII.

After thirty (30) years of service, Beta Company compulsorily retired Albert at age 65
pursuant to the company's Retirement Plan. Albert was duly paid his full retirement
benefits of one (1) month pay for every year of service under the Plan. Thereafter, out of
compassion, the company allowed Albert to continue working and paid him his old
monthly salary rate, but without the allowances that he used to enjoy.
After five (5) years under this arrangement, the company finally severed all employment
relations with Albert; he was declared fully retired in a fitting ceremony but the company
did not give him any further retirement benefits. Albert thought this treatment unfair as
he had rendered full service at his usual hours in the past five (5) years. Thus, he filed a
complaint for the allowances that were not paid to him, and for retirement benefits for
his additional five (5) working years, based either on the company's Retirement Plan or
the Retirement Pay Law, whichever is applicable.

(A) After Albert's retirement at age 65, should he be considered a regular employee
entitled to all his previous salaries and benefits when the company allowed him to
continue working? (4%)

(B) Is he entitled to additional retirement benefits for the additional service he rendered
after age 65? (4%)

IX.

Pablo works as a driver at the National Tire Company (NTC). He is a member of the
Malayang Samahan ng Manggagawa sa NTC, the exclusive rank-and-file collective
bargaining representative in the company. The union has a CBA with NTC which
contains a union security and a check-off clause. The union security clause contains a
maintenance of membership provision that requires all members of the bargaining unit
to maintain their membership in good standing with the union during the term of the
CBA under pain of dismissal. The check-off clause on the other hand authorizes the
company to deduct from union members' salaries defined amounts of union dues and
other fees. Pablo refused to issue an authorization to the company for the check-off of
his dues, maintaining that he will personally remit his dues to the union.

(A) Would the NTC management commit unfair labor practice if it desists from checking
off Pablo's union dues for lack of individual authorization from Pablo? (4%)

(B) Can the union charge Pablo with disloyalty for refusing to allow the check off of his
union dues and, on this basis, ask the company to dismiss him from employment? (4%)
X.

For ten (10) separate but consecutive yearly contracts, Cesar has been deployed as an
able-bodied seaman by Meritt Shipping, through its local agent, Ace Maritime Services
(agency), in accordance with the 2000Philippine Overseas Employment Administration
Standard Employment Contract (2000 POEA-SEC). Cesar's employment was also
covered by a CBA between the union, AMOSl.JP, and Meritt Shipping. Both the 2000
POEA-SEC and the CBA commonly provide the same mode and procedures for
claiming disability benefits. Cesar's last contract (for nine months) expired on July 15,
2013.

Cesar disembarked from the vessel M/V Seven Seas on July 16, 2013as a seaman on
"finished contract". He immediately reported to the agency and complained that he had
been experiencing spells of dizziness, nausea, general weakness, and difficulty in
breathing. The agency referred him to Dr. Sales, a cardio-pulmonary specialist, who
examined and treated him; advised him to take a complete rest for a while; gave him
medications; and declared him fit to resume work as a seaman.

After a month, Cesar went back to the agency to ask for re-deployment. The agency
rejected his application. Cesar responded by demanding total disability benefits based
on the ailments that he developed and suffered while on board Meritt Shipping vessels.
The claim was based on the certification of his physician (internist Dr. Reyes) that he
could no longer undertake sea duties because of the hypertension and diabetes that
afflicted him while serving on Meritt Shipping vessels in the last 10 years. Rejected once
again, Cesar filed a complaint for illegal dismissal and the payment of total permanent
disability benefits against the agency and its principal.

Assume that you are the Labor Arbiter deciding the case. Identify the facts and issues
you would consider material in resolving the illegal dismissal and disability complaint.
Explain your choices and their materiality, and resolve the case. (8%)
MULTIPLE CHOICE QUESTIONS

I. The parties to a labor dispute can validly submit to voluntary arbitration _________.
(1%)

(A) any disputed issue they may agree to voluntarily arbitrate

(B) only matters that do not fall within the exclusive jurisdiction of the Labor Arbiter

(C) any disputed issue but only after conciliation at the National Conciliation and
Mediation Board fails

(D) any disputed issue provided that the Labor Arbiter has not assumed jurisdiction over
the case on compulsory arbitration

(E) only matters relating to the interpretation or implementation of a collective

bargaining agreement

II. When there is no recognized collective bargaining agent, can a legitimate labor
organization validly declare a strike against the employer? (1%)

(A) Yes, because the right to strike is guaranteed by the Constitution and cannot be
denied to any group of employees.

(B) No, because only an exclusive bargaining agent may declare a strike against the
employer.

(C) Yes, because the right to strike is a basic human right that the country's international
agreements and the International Labor Organization recognize.

(D) Yes, but only in case of unfair labor practice.

(E) No, in the absence of a recognized bargaining agent, the workers' recourse is to file
a case before the Department of Labor and Employment.
III.

Mr. Del Carmen, unsure if his foray into business (messengerial service catering purely
to law firms) would succeed but intending to go long-term if he hurdles the first year,
opted to open his operations with one-year contracts with two law firms although he also
accepts messengerial service requests from other firms as their orders come. He
started with one permanent secretary and six (6) messengers on a one-year, fixed-term,
contract.

Is the arrangement legal from the perspective of labor standards? (1%)

(A) No, because the arrangement will circumvent worker's right to security of tenure.

(B) No. If allowed, the arrangement will serve as starting point in weakening the security
of tenure guarantee.

(C) Yes, if the messengers are hired through a contractor.

(D) Yes, because the business is temporary and the contracted undertaking is specific
and time-bound.

(E) No, because the fixed term provided is invalid.

IV. Chito was illegally dismissed by DEF Corp. effective at the close of business hours
of December 29, 2009.

IV(1). He can file a complaint for illegal dismissal without any legal bar within
_________. (1%)

(A) three (3) years

(B) four (4) years

(C) five (5) years

(D) six (6) years

(E) ten (10) years

IV(2). If he has money claims against DEF Corp., he can make the claim without any
legal bar within _________. (1%)

(A) three (3) years

(B) four (4) years

(C) five (5) years

(D) six (6) years

(E) ten (10) years

V. After vainly struggling to stay financially afloat for a year, LMN Corp. finally gave up
and closed down its operations after its major creditors filed a petition for LMN's
insolvency and liquidation.

In this situation, LMN's employees are entitled to _________ as separation pay. (1%)

(A) one-half month pay for every year of service

(B) one month pay for every year of service

(C) one-half month pay

(D) one month pay

(E) no separation pay at all

VI. At age 65 and after 20 years of sewing work at home on a piece rate basis for PQR
Garments, a manufacturer-exporter to Hongkong, Aling Nena decided it was time to
retire and to just take it easy.

Is she entitled to retirement pay from PQR? (1%)

(A) Yes, but only to one month pay.

(B) No, because she was not a regular employee.

(C) Yes, at the same rate as regular employees.

(D) No, because retirement pay is deemed included in her contracted per piece pay.
(E) No, because homeworkers are not entitled to retirement pay.

VII. The minimum wage prescribed by law for persons with disability is __________.
(1%)

(A) 50% of the applicable minimum wage

(B) 75% of the applicable minimum wage

(C) 100% of the applicable minimum wage

(D) the wage that the parties agree upon, depending on the capability of the disabled.

(E) the wage that the parties agree upon, depending on the capability of the disabled,
but not less than 50% of the applicable minimum wage

VIII. What is the financial incentive, if any, granted by law to SPQ Garments whose
cutters and sewers in its garments-for-export operations are80% staffed by deaf and
deaf-mute workers? (1%)

(A) Additional deduction from its gross income equivalent to 25% of amount paid as
salaries to persons with disability.

(B) Additional deduction from its gross income equivalent to 50% of the direct costs of
the construction of facilities for the use of persons with disability.

(C) Additional deduction from its net taxable income equivalent to 5% of its total payroll

(D) Exemption from real property tax for one (1) year of the property where facilities for
persons with disability have been constructed.

(E) The annual deduction under (A), plus a one-time deduction under (B).
IX. Mr. Ortanez has been in the building construction business for several years. He
asks you, as his new labor counsel, for the rules he must observe in considering regular
employment in the construction industry.

You clarify that an employee, project or non-project, will acquire regular status if
__________. (1%)

(A) he has been continuously employed for more than one year

(B) his contract of employment has been repeatedly renewed, from project to project, for
several years

(C) he performs work necessary and desirable to the business, without a fixed period
and without reference to any specific project or undertaking

(D) he has lived up to the company's regularization standards

(E) All of the above.

X. Samahang Tunay, a union of rank-and-file employees lost in a certification election at

Solam Company and has become a minority union. The majority union now has a
signed CBA with the company and the agreement contains a maintenance of
membership clause.

What can Samahang Tunay still do within the company as a union considering that it
still has members who continue to profess continued loyalty to it? (1%)

(A) It can still represent these members in grievance committee meetings.

(B) It can collect agency fees from its members within the bargaining unit.

(C) It can still demand meetings with the company on company time.

(D) As a legitimate labor organization, it can continue to represent its members on non-
CBA-related matters.

(E) None of the above.

(F) All of the above.

XI. The members of the administrative staff of Zeta, a construction company, enjoy ten
(10) days of vacation leave with pay and ten (10) days of sick leave with pay, annually.
The workers' union, Bukluran, demands that Zeta grant its workers service incentive
leave of five (5) days in compliance with the Labor Code.

Is the union demand meritorious? (1%)

(A) Yes, because non-compliance with the law will result in the diminution of employee
benefits.

(B) Yes, because service incentive leave is a benefit expresslyprovided under and
required by the Labor Code.

(C) No, because Zeta already complies with the law.

(D) No, because service incentive leave is a Labor Code benefit that does not apply in
the construction industry.

(E) Yes, because Labor Code benefits are separate from those voluntarily granted by
the company.

XII. Upon the expiration of the first three (3) years of their CBA, the union and the
company commenced negotiations. The union demanded that the company continue to
honor their 30-day union leave benefit under the CBA. The company refused on the
ground that the CBA had already expired, and the union had already consumed their
union leave under the CBA.

Who is correct? (1%)

(A) The company is correct because the CBA has expired; hence it is no longer bound
to provide union leave.

(B) The company is correct because the union has already consumed the allotted union
leave under the expired CBA.

(C) The union is correct because it is still the bargaining representative for the next two
(2) years.
(D) The union is correct because union leaves are part of the economic terms that
continue to govern until new terms are agreed upon.

(E) They are both wrong.

XIII. Hector, a topnotch Human Resource Specialist who had worked in multinational
firms both in the Philippines and overseas, was recruited by ABC Corp., because of his
impressive credentials. In the course of Hector's employment, the company
management frequently did not follow his recommendations and he felt offended by this
constant rebuff.

Thus, he toyed with the idea of resigning and of asking for the same separation pay that
ABC earlier granted to two (2) department heads when they left the company.

To obtain a legal opinion regarding his options, Hector sent an email to ABC's retained
counsel, requesting for advice on whether the grant by the company of separation pay
to his resigned colleagues has already ripened into a company practice, and whether he
can similarly avail of this benefit if he resigns from his job.

As the company's retained legal counsel, how will you respond to Hector? (1%)

(A) I would advise him to write management directly and inquire about the benefits he
can expect if he resigns.

(B) I would advise him that the previous grant of separation pay to his colleagues
cannot be considered a company practice because several other employees had
resigned and were not given separation pay.

(C) I would advise him to ask for separation pay, not on account of company practice,
but on the basis of discrimination as he is similarly situated as the two resigned
department heads who were paid their separation pay.

(D) I would not give him any legal advice because he is not my client.

(E) I would maintain that his question involves a policy matter beyond the competence
of a legal counsel to give.
XIV. Aleta Quiros was a faculty member at BM Institute, a private educational institution.
She was hired on a year-to-year basis under the probationary employment period
provision of the Manual of Regulations for Private Schools. The terms and conditions of
her engagement were defined under her renewable yearly contract.

For reasons of its own, BM Institute no longer wanted to continue with Aleta's teaching
services. Thus, after the contract for her second year expired, BM Institute advised
Aleta that her contract would no longer be renewed. This advice prompted Aleta to file a
complaint for illegal dismissal against BM Institute.

Will the complaint prosper? (1%)

(A) Yes, because no just or authorized cause existed for the termination of her
probationary employment.

(B) Yes, because under the Labor Code, Aleta became a regular employee after 6
months and she may now only be dismissed for cause.

(C) No, because there was no dismissal to speak of. Her employment was automatically
terminated upon the expiration of her year-to-year fixed term employment.

(D) No, because BM Institute may dismiss its faculty members at will in the exercise of
its academic freedom.

(E) No, because Aleta was still on probationary employment.

XV. Robert, an employee of ABC Company, is married to Wanda. One day, Wanda
visited the company office with her three (3) emaciated minor children, and narrated to
the Manager that Robert had been squandering his earnings on his mistress, leaving
only a paltry sum for the support of their children. Wanda tearfully pleaded with the
Manager to let her have one half of Robert's pay every payday to ensure that her
children would at least have food on the table. To support her plea, Wanda presented a
Kasulatan signed by Robert giving her one half of his salary, on the condition that she
would not complain if he stayed with his mistress on weekends.

If you were the Manager, would you release one half of Robert's salary to Wanda? (1%)
(A) No, because an employer is prohibited from interfering with the freedom of its
employees to dispose of heir wages.

(B) Yes, because of Robert's signed authorization to give Wanda one half of his salary.

(C) No, because there is no written authorization for ABC Company to release Robert's
salary to Wanda.

(D) Yes, because it is Robert's duty to financially support his minor children.

(E) No, because Robert's Kasulatan is based on an illegal consideration and is of

doubtful legal validity.

XVI. Ricardo operated a successful Makati seafood restaurant patronized by a large

clientele base for its superb cuisine and impeccable service. Ricardo charged its clients
a 10% service charge and distributed 85% of the collection equally among its rank-and-
file employees, 10% among managerial employees, and 5% as reserve for losses and
break ages. Because of the huge volume of sales, the employees received sizeable
shares in the collected service charges.

As part of his business development efforts, Ricardo opened a branch in Cebu where
he maintained the same practice in the collection and distribution of service charges.
The Cebu branch, however, did not attract the forecasted clientele; hence, the Cebu
employees received lesser service charge benefits than those enjoyed by the Makati-
based employees. As a result, the Cebu branch employees demanded equalization of
benefits and filed a case with the NLRC for discrimination when Ricardo refused their
demand.

XVI(l) Will the case prosper? (1%)

(A) Yes, because the employees are not receiving equal treatment in the distribution of
service charge benefits.

(B) Yes, because the law provides that the 85% employees' share in the service charge
collection should be equally divided among all the employees, in this case, among the
Cebu and Makati employees alike.
(C) No, because the employees in Makati are not similarly situated as the Cebu
employees with respect to cost of living and conditions of work.

(D) No, because the service charge benefit attaches to the outlet where service charges
are earned and should be distributed exclusively among the employees providing
service in the outlet.

(E) No, because the market and the clientele the two branches are serving, are
different.

XVI(2). In order to improve the Cebu service and sales, Ricardo decided to assign some
of its Makati-based employees to Cebu to train Cebu employees and expose them to
the Makati standard of service. A chef and three waiters were assigned to Cebu for the
task. While in Cebu, the assigned personnel shared in the Cebu service charge
collection and thus received service charge benefits lesser than what they were
receiving in Makati.

If you were the lawyer for the assigned personnel, what would you advice them to do?
(1%)

(A) I would advise them to file a complaint for unlawful diminution of service charge
benefits and for payment of differentials.

(B) I would advise them to file a complaint for illegal transfer because work in Cebu is
highly prejudicial to them in terms of convenience and service charge benefits.

(C) I would advise them to file a complaint for discrimination in the grant of service
charge benefits.

(D) I would advise them to accept their Cebu training assignment as an exercise of the
company's management prerogative.

(E) I would advise them to demand the continuation of their Makati-based benefits and
to file a complaint under (B)above if the demand is not heeded.
XVII. Constant Builders, an independent contractor, was charged with illegal dismissal
and non-payment of wages and benefits of ten dismissed employees. The complainants
impleaded as co-respondent Able Company, Constant Builder's principal in the
construction of Able's office building. The complaint demanded that Constant and Able
be held solidarily liable for the payment of their backwages, separation pay, and all their
unpaid wages and benefits.

If the Labor Arbiter rules in favor of the complainants, choose the statement that best
describes the extent of the liabilities of Constant and Able. (1%)

(A) Constant and Able should be held solidarily liable for the unpaid wages and benefits,
as well as backwages and separation pay, based on Article 109 of the Labor Code
which provides that "every employer or indirect employer shall be held responsible with
his contractor or subcontractor for any violation of any provision of this Code."

(B) Constant and Able should be held solidarily liable for the unpaid wages and benefits,
and should order Constant, as the workers' direct employer, to be solely liable for the
backwages and separation pay.

(C) Constant and Able should be held solidarily liable for the unpaid wages and benefits
and the backwages since these pertain to labor standard benefits for which the
employer and contractor are liable under the law, while Constant alone – as the actual
employer - should be ordered to pay the separation pay.

(D) Constant and Able should be held solidarily liable for the unpaid wages and
benefits, and Constant should be held liable for their backwages and separation pay
unless Able is shown to have participated with malice or bad faith in the workers'
dismissal, in which case both should be held solidarily liable.

(E) The above statements are all inaccurate.

XVIII. The Pinagbuklod union filed a Petition for Certification Election, alleging that it
was a legitimate labor organization of the rank-and-file employees of Delta Company.
On Delta's motion, the Med Arbiter dismissed the Petition, based on the finding that
Pinagbuklod was not a legitimate labor union and had no legal personality to file a
Petition for Certification Election because its membership was a mixture of rank-and-file
and supervisory employees.

Is the dismissal of the Petition for Certification Election by the Med-Arbiter proper? (1%)

(A) Yes, because Article 245 of the Labor Code prohibits supervisory employees from
joining the union of he rank and file employees and provides that a union representing
both rank and file and supervisory employees as members is not a legitimate labor
organization.

(B) No, because the grounds for the dismissal of a petition for certification election do
not include mixed membership in one umon.

(C) No, because a final order of cancellation of union registration is required before a
petition for certification election may be dismissed on the ground of lack of legal
personality of the umon.

(D) No, because Delta Company did not have the legal personality to participate in the
certification election proceedings and to file a motion to dismiss based on the legitimacy
status of the petitioning union.
2014

I.

Linda was employed by Sectarian University (SU) to cook for the members of a religious
order who teach and live inside the campus. While performing her assigned task, Linda
accidentally burned herself. Because of the extent of her injuries, she went on medical
leave. Meanwhile, SU engaged a replacement cook. Linda filed a complaint for illegal
dismissal, but her employer SU contended that Linda was not a regular employee but a
domestic househelp. Decide. (4%)

II.

Lucy was one of approximately 500 call center agents at Hambergis, Inc. She was hired
as a contractual employee four years ago. Her contracts would be for a duration of five
(5) months at a time, usually after a onemonth interval. Her re-hiring was contingent on
her performance for the immediately preceding contract. Six (6) months after the
expiration of her last contract, Lucy went to Hambergis personnel department to inquire
why she was not yet being recalled to work. She was told that her performance during
her last contract was "below average." Lucy seeks your legal advice about her chances
of getting her job back. What will your advice be? (4%)

III.

Lolong Law Firm (LLF), which employs around 50 lawyers and 100 regular staff,
suffered losses for the first time in its history. The management informed its employees
that it could no longer afford to provide them free lunch. Consequently, it announced
that a nominal fee would henceforth be charged. Was LLF justified in withdrawing this
benefit which it had unilaterally been providing to its employees? (1%)

(A) Yes, because it is suffering losses for the first time.

(B) Yes, because this is a management prerogative which is not due to any legal or
contractual obligation.

(C) No, because this amounts to a diminution of benefits which is prohibited by the
Labor Code.
(D) No, because it is a fringe benefit that has already ripened into a demandable right.

IV.

Linis Manpower, Inc. (LMI) had provided janitorial services to the Philippine Overseas
Employment Administration (POEA) since March 2009. Its service contract was
renewed every three months. However, in the bidding held in June 2012, LMI was
disqualified and excluded. In 2013, six janitors of LMI formerly assigned at POEA filed a
complaint for underpayment of wages. Both LMI and POEA were impleaded as
respondents. Should POEA, a government agency subject to budgetary appropriations
from Congress, be held liable solidarily with LMI for the payment of salary differentials
due to the complainant? Cite the legal basis of your answer. (4%)

V.

Liwayway Glass had 600 rank-and-file employees. Three rival unions – A, B, and C ‒
participated in the certification elections ordered by the Med-Arbiter. 500 employees
voted. The unions obtained the following votes: A-200; B-150; C-50; 90 employees
voted "no union"; and 10 were segregated votes. Out of the segregated votes, four (4)
were cast by probationary employees and six (6) were cast by dismissed employees
whose respective cases are still on appeal. (10%)

(A) Should the votes of the probationary and dismissed employees be counted in the
total votes cast for the purpose of determining the winning labor union?

(B) Was there a valid election?

(C) Should Union A be declared the winner?

(D) Suppose the election is declared invalid, which of the contending unions should
represent the rank-and-file employees?

(E) Suppose that in the election, the unions obtained the following votes: A-250; B-150;
C-50; 40 voted "no union"; and 10 were segregated votes. Should Union A be certified
as the bargaining representative?
VI.

Lina has been working as a steward with a Miami, U.S.A.-based Loyal Cruise Lines for
the past 15 years. She was recruited by a local manning agency, Macapagal Shipping,
and was made to sign a 10-month employment contract everytime she left for Miami.
Macapagal Shipping paid for Lina’s round-trip travel expenses from Manila to Miami.
Because of a food poisoning incident which happened during her last cruise
assignment, Lina was not re-hired. Lina claims she has been illegally terminated and
seeks separation pay. If you were the Labor Arbiter handlingthe case, how would you
decide? (4%)

VII.

Non-lawyers can appear before the Labor Arbiter if: (1%)

(A) they represent themselves

(B) they are properly authorized to represent their legitimate labor organization or
member thereof

(C) they are duly-accredited members of the legal aid office recognized by the DOJ or
IBP

(D) they appear in cases involving an amount of less than Php5,000

VIII.

As a result of a bargaining deadlock between Lazo Corporation and Lazo Employees

Union, the latter staged a strike. During the strike, several employees committed illegal
acts. Eventually, its members informed the company of their intention to return to work.
(6%)

(A) Can Lazo Corporation refuse to admit the strikers?

(B) Assuming the company admits the strikers, can it later on dismiss those employees
who committed illegal acts?

(C) If due to prolonged strike, Lazo Corporation hired replacements, can it refuse to
admit the replaced strikers?
IX.

Luisa Court is a popular chain of motels. It employs over 30 chambermaids who, among
others, help clean and maintain the rooms. These chambermaids are part of the union
rank-and-file employees which has an existing collective bargaining agreement (CBA)
with the company. While the CBA was in force, Luisa Court decided to abolish the
position of chambermaids and outsource the cleaning of the rooms to Malinis Janitorial
Services, a bona fide independent contractor which has invested in substantial
equipment and sufficient manpower. The chambermaids filed a case of illegal dismissal
against Luisa Court. In response, the company argued that the decision to outsource
resulted from the new management’s directive to streamline operations and save on
costs. If you were the Labor Arbiter assigned to the case, how would you decide? (4%)

X.

Luisa was hired as a secretary by the Asian Development Bank (ADB) in Manila. Luisa’s
first boss was a Japanese national whom she got along with. But after two years, the
latter was replaced by an arrogant Indian national who did not believe her work output
was in accordance with international standards. One day, Luisa submitted a draft report
filled with typographical errors to her boss. The latter scolded her, but Luisa verbally
fought back. The Indian boss decided to terminate her services right then and there.
Luisa filed a case for illegal dismissal with the Labor Arbiter claiming arbitrariness and
denial of due process. If you were the Labor Arbiter, how would you decide the case?
(4%)

XI.

Lionel, an American citizen whose parents migrated to the U.S. from the Philippines,
was hired by JP Morgan in New York as a call center specialist. Hearing about the
phenomenal growth of the call center industry in his parents’ native land, Lionel sought
and was granted a transfer as a call center manager for JP Morgan’s operations in
Taguig City. Lionel’semployment contract did not specify a period for his stay in the
Philippines. After three years of working in the Philippines, Lionel was advised that he
was being recalled to New York and being promoted to the position of director of
international call center operations. However, because of certain "family reasons,"
Lionel advised the company of his preference to stay in the Philippines. He was
dismissed by the company. Lionel now seeks yo ur legal advice on: (6%)

(A) whether he has a cause of action

(B) whether he can file a case in the Philippines

(C) what are his chances of winning

XII.

Which of the following groups does not enjoy the right to selforganization? (1%)

(A) those who work in a non-profit charitable institution

(B) those who are paid on a piece-rate basis

(C) those who work in a corporation with less than 10 employees

(D) those who work as legal secretaries

XIII.

Don Luis, a widower, lived alone in a house with a large garden. One day, he noticed
that the plants in his garden needed trimming. He remembered that Lando, a 17-year
old out-of-school youth, had contacted him in church the other day looking for work. He
contacted Lando who immediately attended to Don Luis’s garden a nd finished the job
in three days. (4%)

(A) Is there an employer-employee relationship between Don Luis and Lando?

(B) Does Don Luis need to register Lando with the Social Security System (SSS)?

XIV.

Luisito has been working with Lima Land for 20 years. Wanting to work in the public
sector, Luisito applied with and was offered a job at Livecor. Before accepting the offer,
he wanted to consult you whether the payments that he and Lima Land had made to the
Social Security System (SSS) can be transferred or credited to the Government Service
Insurance System (GSIS). What would you advice? (4%)

XV.

Our Lady of Peace Catholic School Teachers and Employees Labor Union (OLPCS-
TELU) is a legitimate labor organization composed of vice principals, department heads,
coordinators, teachers, and non-teaching personnel of Our Lady of Peace Catholic
School (OLPCS).

OLPCS-TELU subsequently filed a petition for certification election among the teaching
and non-teaching personnel of OLPCS before the Bureau of Labor Relations (BLR) of
the Department of Labor and Employment (DOLE). The Med-Arbiter subsequently
granted the petition and ordered the conduct of a joint certification election for the
teaching and non-teaching personnel of OLPCS.

May OLPCS-TELU be considered a legitimate labor organization? (5%)

XVI.

Samahang East Gate Enterprises (SEGE) is a labor organization composed of the rank-
and-file employees of East Gate Enterprises (EGE), the leading manufacturer of all
types of gloves and aprons.

EGE was later requested by SEGE to bargain collectively for better terms and
conditions of employment of all the rank -and-file employees of EGE. Consequently,
EGE filed a petition for certification election before the Bureau of Labor Relations (BLR).

During the proceedings, EGE insisted that it should participate in the certification
process. EGE reasoned that since it was the one who filed the petition and considering
that the employees concerned were its own rankand-file employees, it should be
allowed to take an active part in the certification process.

Is the contention of EGE proper? Explain. (5%)

XVII.

Philhealth is a government-owned and controlled corporation employing thousands of

Filipinos. Because of the desire of the employees of Philhealth to obtain better terms
and conditions of employment from the government, they formed the Philhealth
Employees Association (PEA) and demanded Philhealth to enter into negotiations with
PEA regarding terms and conditions of employment which are not fixed by law. (4%)

(A) Are the employees of Philhealth allowed to self-organize and form PEA and
thereafter demand Philhealth to enter into negotiations with PEA for better terms and
conditions of employment?

(B) In case of unresolved grievances, can PEA resort to strikes, walkouts, and other
temporary work stoppages to pressure the government to accede to their demands?

XVIII.

The procedural requirements of a valid strike include: (1%)

(A) a claim of either unfair labor practice or deadlock in collective bargaining

(B) notice of strike filed at least 15 days before a ULP-grounded strike or at least 30
days prior to the deadlock in a bargaining grounded strike

(C) majority of the union membership must have voted to stage the strike with notice
thereon furnished to the National Conciliation and Mediation Board (NCMB) at least 24
hours before the strike vote is taken

(D) strike vote results must be furnished to the NCMB at least seven (7) days before the
intended strike

XIX.

Lincoln was in the business of trading broadcast equipment used by television and radio
networks. He employed Lionel as his agent. Subsequently, Lincoln set up Liberty
Communications to formally engage in the same business. He requested Lionel to be
one of the incorporators and assigned to him 100 Liberty shares. Lionel was also given
the title Assistant Vice-President for Sales and Head of Technical Coordination. After
several months, there were allegations that Lionel was engaged in "under the table
dealings" and received "confidential commissions" from Liberty’s clients and suppliers.
He was, therefore, charged with serious misconduct and willful breach of trust, and was
given 48 hours to present his explanation on the charges. Lionel was unable to comply
with the 48 -hour deadline and was subsequently barred from entering company
premises. Lionel then filed a complaint with the Labor Arbiter claiming constructive
dismissal. Among others, the company sought the dismissal of the complaint alleging
that the case involved an intra-corporate controversy which was within the jurisdiction of
the Regional Trial Court (RTC).

If you were the Labor Arbiter assigned to the case, how would you rule on the
company’s motion to dismiss? (5%)

XX.

Lito was anticipating the bonus he would receive for 2013. Aside from the 13th month
pay, the company has been awarding him and his other co-employees a two to three
months bonus for the last 10 years. However, because of poor over-all sales
performance for the year, the company unilaterally decided to pay only a one month
bonus in 2013. Is Lito’s employer legally allowed to reduce the bonus? (4%)

XXI.

An accidental fire gutted the JKL factory in Caloocan. JKL decided to suspend
operations and requested its employees to stop reporting for work. After six (6) months,
JKL resumed operations but hired a new set of employees. The old set of employees
filed a case for illegal dismissal. If you were the Labor Arbiter, how would you decide the
case? (4%)

XXII.

Despite a reinstatement order, an employer may choose not to reinstate an employee if:
(1%)

(A) there is a strained employer-employee relationship

(B) the position of the employee no longer exists

(C) the employer’s business has been closed

(D) the employee does not wish to be reinstated.

XXIII.

Luningning Foods engaged the services of Lamitan Manpower, Inc., a bona fide
independent contractor, to provide "tasters" that will check on food quality.
Subsequently, these "tasters" joined the union of rank -and-file employees of
Luningning and demanded that they be made regular employees of the latter as they
are performing functions necessary and desirable to operate the company’s business.
Luningning rejected the demand for regularization. On behalf of the "tasters", the union
then filed a notice of strike with the Department of Labor and Employment (DOLE). In
response, Luningning sought a restraining order from the Regional Trial Court (RTC)
arguing that the DOLE does not have jurisdiction over t he case since it does not have
an employer-employee relationship with the employees of an independent contractor. If
you were the RTC judge, would you issue a restraining order against the union? (4%)

XXIV.

Lanz was a strict and unpopular Vice-President for Sales of Lobinsons Land. One day,
Lanz shouted invectives against Lee, a poor performing sales associate, calling him,
among others, a "brown monkey." Hurt, Lee decided to file a criminal complaint for
grave defamation against Lanz. The prosecutor found probable cause and filed an
information in court. Lobinsons decided to terminate Lanz for committing a potential
crime and other illegal acts prejudicial to business. Can Lanz be legally terminated by
the company on these grounds? (4%)

XXV.

Lizzy Lu is a sales associate for Luna Properties. The latter is looking to retrench Lizzy
and five other sales associates due to financial losses. Aside from a basic monthly
salary, Lizzy and her colleagues receive commissions on the sales they make as well
as cost of living and representation allowances. In computing Lizzy’s separation pay,
Luna Properties should consider her: (1%)
(A) monthly salary only

(B) monthly salary plus sales commissions

(C) monthly salary plus sales commissions, plus cost of living allowance

(D) monthly salary plus sales commissions, plus cost of living allowance and
representation allowance

XXVI.

Liwanag Corporation is engaged in the power generation business. A stalemate was

reached during the collective bargaining negotiations between its management and the
union. After following all the requisites provided by law, the union decided to stage a
strike. The management sought the assistance of the Secretary of Labor and
Employment, who assumed jurisdiction over the strike and issued a return-to-work
order. The union defied the latter and continued the strike. Without providing any notice,
Liwanag Corporation declared everyone who participated in the strike as having lost
their employment. (4%)

(A) Was Liwanag Corporation’s action valid?

(B) If, before the DOLE Secretary assumed jurisdiction, the striking union members
communicated in writing their desire to return to work, which offer Liwanag Corporation
refused to accept, what remedy, if any, does the union have?

XXVII.

The jurisdiction of the National Labor Relations Commission does not include: (1%)

(A) exclusive appellate jurisdiction over all cases decided by the Labor Arbiter

(B) exclusive appellate jurisdiction over all cases decided by Regional Directors or
hearing officers involving the recovery of wages and other monetary claims and benefits
arising from employer-employee relations where the aggregate money claim of each
does not exceed five thousand pesos (Php5,000)

(C) original jurisdiction to act as a compulsory arbitration body over labor disputes
certified to it by the Regional Directors
(D) power to issue a labor injunction

2015

A. Rocket Corporation is a domestic corporation registered with the SEC, with 30% of
its authorized capital stock owned by foreigners and 70% of its authorized capital stock
owned by Filipinos. Is Rocket Corporation allowed to engage in the recruitment and
placement of workers, locally and overseas? Briefly state the basis for your answer.
(2%)

B. When does the recruitment of workers become an act of economic sabotage? (2%)

II

LKG Garments Inc. makes baby clothes for export. As part of its measures to meet its
orders, LKG requires its employees to work beyond eight (8) hours everyday, from
Monday to Saturday. It pays its employees an additional 35% of their regular hourly
wage for work rendered in excess of eight (8) hours per day. Because of additional
orders, LKG now requires two (2) shifts of workers with both shifts working beyond eight
(8) hours but only up to a maximum of four (4) hours. Carding is an employee who used
to render up to six (6) hours of overtime work before the change in schedule. He
complains that the change adversely affected him because now he can only earn up to
a maximum of four (4) hours' worth of overtime pay. Does Carding have a cause of
action against the company? (4%)

III

Benito is the owner of an eponymous clothing brand that is a top seller. He employs a
number of male and female models who wear Benito's clothes in promotional shoots
and videos. His deal with the models is that Benito will pay them with 3 sets of free
clothes per week. Is this arrangement allowed? (2%)
IV

Far East Bank (FEB) is one of the leading banks in the country. Its compensation and
bonus packages are top of the industry. For the last 6 years, FEB had been providing
the following bonuses across-the-board to all its employees:

(a) 13th month pay;

(b) 14th to 18th month pay;

(c) Christmas basket worth P6,000;

(d) Gift check worth P4,000; and

(e) Productivity-based incentive ranging from a 20% to 40% increase in gross monthly
salary for all employees who would receive an evaluation of "Excellent" for 3 straight
quarters in the same year.

Because of its poor performance over-all, FEB decided to cut back on the bonuses this
year and limited itself to the following:

(a) 13th month pay;

(b) 14th month pay;

(c) Christmas basket worth P4,000; and

(d) Gift check worth P2,000

Katrina, an employee of FEB, who had gotten a rating of "Excellent" for the last 3
quarters was looking forward to the bonuses plus the productivity incentive bonus. After
learning that FEB had modified the bonus scheme, she objected. Is Katrina's objection
justified? Explain. (3%)

Soledad, a widowed school teacher, takes under her wing one of her students, Kiko, 13
years old, who was abandoned by his parents and has to do odd jobs in order to study.
She allows Kiko to live in her house, provides him with clean clothes, food, and a daily
allowance of 200 pesos. In exchange, Kiko does routine housework, consisting of
cleaning the house and doing errands for Soledad. One day, a representative of the
DOLE and the DSWD came to Soledad's house and charged her with violating the law
that prohibits work by minors. Soledad objects and offers as a defense that she was not
requiring Kiko to work as the chores were not hazardous. Further, she did not give him
chores regularly but only intermittently as the need may arise. Is Soledad's defense
meritorious? (4%)

VI

Ador is a student working on his master's degree in horticulture. To make ends meet, he
takes on jobs to come up with flower arrangements for friends. His neighbor, Nico, is
about to get married to Lucia and needs a floral arranger. Ador offers his services and
Nico agrees. They shake hands on it, agreeing that Nico will pay Ador P20,000.00 for
his services but that Ador will take care of everything. As Ador sets about to decorate
the venue, Nico changes all of Ador's plans and ends up designing the arrangements
himself with Ador simply executing Nico's instructions.

(a) Is there an employer-employee relationship between Nico and Ador? (4%)

(b) Will Nico need to register Ador with the Social Security System (SSS)? (2%)

VII

Don Don is hired as a contractual employee of CALLHELP, a call center. His contract is
expressly for a term of 4 months. Don Don is hired for 3 straight contracts of 4 months
each but at 2-week intervals between contracts. After the third contract ended, Don Don
is told that he will no longer be given another contract because of "poor performance."
Don Don files a suit for "regularization" and for illegal dismissal, claiming that he is a
regular employee of CALLHELP and that he was dismissed without cause. You are the
Labor Arbiter. How would you decide the case? (4%)

VIII

Star Crafts is a lantern maker based in Pampanga. It supplies Christmas lanterns to

stores in Luzon, Metro Manila, and parts of Visayas, with the months of August to
November being the busiest months. Its factory employs a workforce of 2,000 workers
who make different lanterns daily for the whole year. Because of increased demand,
Star Crafts entered into a contractual arrangement with People Plus, a service
contractor, to supply the former with I 00 workers for only 4 months, August to
November, at a rate different from what they pay their regular employees. The contract
with People Plus stipulates that all equipment and raw materials will be supplied by Star
Crafts with the express condition that the workers cannot take any of the designs home
and must complete their tasks within the premises of Star Crafts.

Is there an employer-employee relationship between Star Crafts and the 100 workers
from People Plus? Explain. (4%)

IX

Din Din is a single mother with one child. She is employed as a sales executive at a
prominent supermarket. She and her child live in Quezon City and her residence and
workplace are a 15-minute drive apart. One day, Din Din is informed by her boss that
she is being promoted to a managerial position but she is now being transferred to the
Visayas. Din Din does not want to uproot her family and refuses the offer. Her boss is
so humiliated by Din Din's refusal of the offer that she gives Din Din successive
unsatisfactory evaluations that result in Din Din being removed from the supermarket.

Din Din approaches you, as counsel, for legal advice. What would you advise her? (4%)

Karina Santos is a famous news anchor appearing nightly in the country's most watched
newscast. She is surprised, after one newscast, to receive a notice of hearing before
the station's Vice-President for Human Resources and calls the VP immediately to ask
what was wrong. Karina is told over the phone that one of her crew filed a complaint
against her for verbal abuse and that management is duty-bound to investigate and give
her a chance to air her side. Karina objects and denies that she had ever verbally
assaulted her crew. The VP then informed her that pending the investigation she will be
placed on a 30-day preventive suspension without pay and that she will not be allowed
to appear in the newscast during this time.
Is the preventive suspension of Karina valid? Discuss the reasons for your answer. (4%)

XI

Rico has a temper and, in his work as Division Manager of Matatag Insurance,
frequently loses his temper with his staff. One day, he physically assaults his staff
member by slapping him. The staff member sues him for physical injuries. Matatag
Insurance decides to terminate Rico, after notice and hearing, on the ground of loss of
trust and confidence. Rico claims that he is entitled to the presumption of innocence
because he has not yet been convicted. Comment on Matatag's action in relation to
Rico's argument. (4%)

XII

Blank Garments, Inc. (BLANK), a clothing manufacturer, employs more than 200
employees in its manufacturing business. Because of its high overhead, BLANK
decided to sell its manufacturing business to Bleach Garments, Inc. (BLEACH) lock,
stock and barrel which included goodwill, equipment, and personnel. After taking on
BLANK's business, BLEACH reduces the workforce by not hiring half the workers
specifically the ones with seniority. BLANK and BLEACH are still discerned to be sister
companies with identical incorporators. The laid-off employees sue both BLANK and
BLEACH for unlawful termination.

(a) How would you decide this case? (4%)

(b) What is the "successor employer" doctrine? (2%)

XIII

Luisa is an unwed mother with 3 children from different fathers. In 2004, she became a
member of the Social Security System (SSS). That same year, she suffered a
miscarriage of a baby out of wedlock from the father of her third child. She wants to
claim maternity benefits under the SSS Act. Is she entitled to claim? (3%)
XIV

Luis, a PNP officer, was off duty and resting at home when he heard a scuffle outside
his house. He saw two of his neighbors fighting and he rushed out to pacify them. One
of the neighbors shot Luis by mistake, which resulted in Luis's death. Marian, Luis's
widow, filed a claim with the GSIS seeking death benefits. The GSIS denied the claim
on the ground that the death of Luis was not service-related as he was off duty when
the incident happened. Is the GSIS correct? (3%)

XV

Victor was hired by a local manning agency as a seafarer cook on board a luxury vessel
for an eight-month cruise. While on board, Victor complained of chronic coughing,
intermittent fever, and joint pains. He was advised by the ship's doctor to take complete
bed rest but was not given any other medication. His condition persisted but the degree
varied from day to day. At the end of the cruise, Victor went home to Iloilo and there had
himself examined. The examination revealed that he had tuberculosis.

(a) Victor sued for medical reimbursement, damages and attorney's fees, claiming that
tuberculosis was a compensable illness. Do you agree with Victor? Why or why not?
(2%)

(b) Due to his prolonged illness, Victor was unable to work for more than 120 days. Will
this entitle him to claim total permanent disability benefits? (2%)

XVI

The Alliance of Independent Labor Unions (AILU) is a legitimate labor federation which
represents a majority of the appropriate bargaining unit at the Lumens Brewery (LB).
While negotiations were ongoing for a renewal of the collective bargaining agreement
(CBA), LB handed down a decision in a disciplinary case that was pending which
resulted in the termination of the AILU's treasurer and two other members for cause.
AILU protested the decision, claiming that LB acted in bad faith and asked that LB
reconsider. LB refused to reconsider. AILU then walked out of the negotiation and
declared a strike without a notice of strike or a strike vote. AILU members locked in the
LB management panel by barricading the doors and possible exits (including windows
and fire escapes). LB requested the DOLE to assume jurisdiction over the dispute and
to certify it for compulsory arbitration.

The Secretary of Labor declined to assume jurisdiction, finding that the dispute was not
one that involved national interest. LB then proceeds to terminate all of the members of
the bargaining agent on the ground that it was unlawful to:

(1) barricade the management panel in the building, and (2) participate in an illegal
strike.

(a) Was AILU justified in declaring a strike without a strike vote and a notice of strike?
Why or why not? (3%)

(b) Was the Secretary of Labor correct in declining to assume jurisdiction over the
dispute? (2%)

(c) Was LB justified in terminating all those who were members of AILU on the two
grounds cited? (3%)

XVII

The Collective Bargaining Agreement (CBA) between Libra Films and its union, Libra
Films Employees' Union (LFEU), contains the following standard clauses:

1. Maintenance of membership;

2. Check off for union dues and agency fees; and

3. No strike, no lock-out.

While Libra Films and LFEU are in re-negotiations for an extension of the CBA, LFEU
discovers that some of its members have resigned from the union, citing their
constitutional right to organize (which includes the right NOT to organize). LFEU
demands that Libra Films institute administrative proceedings to terminate those union
members who resigned in violation of the CBA' s maintenance of membership clause.
Libra Films refuses, citing its obligation to remain a neutral party. As a result, LFEU
declares a strike and after filing a notice of strike and taking a strike vote, goes on
strike. The union claims that Libra Films grossly violated the terms of the CBA and
engaged in unfair labor practice.

(a) Are LFEU's claims correct? Explain. (4%)

(b) Distinguish between a "closed shop" clause and a "maintenance of membership"

clause. (2%)

(c) Distinguish between "union dues" and "agency fees." (2%)

XVIII

George is an American who is working as a consultant for a local IT company. The

company has a union and George wants to support the union. How far can George go
in terms of his support for the union? (3%)

XIX

What is the rule on the "equity of the incumbent"? (2%)

XX

A. XYZ Company and Mr. AB, a terminated employee who also happens to be the
President of XYZ Employees Union, agree in writing to submit Mr. AB's illegal dismissal
case to voluntary arbitration. Is this agreement a valid one? (3%)

B. XYZ Company and XYZ Employees Union (XYZEU) reach a deadlock in their
negotiation for a new collective bargaining agreement (CBA). XYZEU files a notice of
strike; XYZ Company proposes to XYZEU that the deadlock be submitted instead to
voluntary arbitration. If you are counsel for XYZEU, what advice would you give the
union as to the: (1) propriety of the request of XYZ Company, and (2) the relative
advantages/disadvantages between voluntary arbitration and compulsory arbitration?
(4%)

XXI

Philippine News Network (PNN) engages the services of Anya, a prominent news
anchor from a rival station, National News Network (NNN). NNN objects to the transfer
of Anya claiming that she is barred from working in a competing company for a period of
three years from the expiration of her contract. Anya proceeds to sign with PNN which
then asks her to anchor their nightly newscast. NNN sues Anya and PNN before the
National Labor Relations Commission (NLRC), asking for a labor injunction. Anya and
PNN object claiming that it is a matter cognizable by a regular court and not the NLRC.

(a) Is NNN's remedy correct? Why or why not? (3%)

(b) What are the grounds for a labor injunction to issue? (2%)

(c) Distinguish the jurisdiction of a Labor Arbiter from that of the NLRC. (3%)

XXII

Mario comes from a family of coffee bean growers. Deciding to incorporate his fledgling
coffee venture, he invites his best friend, Carlo, to join him. Carlo is hesitant because he
does not have money to invest but Mario suggests a scheme where Carlo can be the
Chief Marketing Agent of the company, earning a salary and commissions. Carlo agrees
and the venture is formed. After one year, the business is so successful that they were
able to declare dividends. Mario is so happy with Carlo's work that he assigns 100
shares of stock to Carlo as part of the latter's bonus.

Much later on, it is discovered that Carlo had engaged in unethical conduct which
caused embarrassment to the company. Mario is forced to terminate Carlo but he does
so without giving Carlo the opportunity to explain.

Carlo filed a case against Mario and the company for illegal dismissal. Mario objected
on the ground that the Labor Arbiter had no jurisdiction over the case as it would
properly be considered as an intra-corporate controversy cognizable by the RTC.
Further, Mario claimed that because Carlo's dismissal was a corporate act, he cannot
be held personally liable.

(a) As the Labor Arbiter assigned to this case, how would you resolve the jurisdiction
question. (3%)

(b) What is the rule on personal liability of corporate officers for a corporate act declared
to be unlawful? (2%)
2016

-I-

What are the requisites of a valid quitclaim? (5%)

-II-

Gregorio was hired as an insurance underwriter by the Guaranteed Insurance

Corporation (Guaranteed). He does not receive any salary but solely relies on
commissions earned for every insurance policy approved by the company. He hires and
pays his own secretary but is provided free office space in the office of the company. He
is, however, required to meet a monthly quota of twenty (20) insurance policies,
otherwise, he may be terminated. He was made to agree to a Code of Conduct for
underwriters and is supervised by a Unit Manager.

[a] Is Gregorio an employee of Guaranteed? Explain. (2.5%)

[b] Suppose Gregorio is appointed as Unit Manager and assigned to supervise several
underwriters. He holds office in the company premises, receives an overriding
commission on the commissions of his underwriters, as well as a monthly allowance
from the company, and is supervised by a branch manager. He is governed by the
Code of Conduct for Unit Managers. Is he an employee of Guaranteed? Explain. (2.5%)

-III-

Inggo is a drama talent hired on a per drama "participation basis" by DJN Radio
Company. He worked from 8:00 a.m. until 5:00 p.m., six days a week, on a gross rate of
P80.00 per script, earning an average of P20,000.00 per month. Inggo filed a complaint
before the Department of Labor and Employment (DOLE) against DJN Radio for illegal
deduction, non-payment of service incentive leave, and 13th month pay, among others.
On the basis of the complaint, the DOLE conducted a plant level inspection.

The DOLE Regional Director issued an order ruling that Inggo is an employee of DJN
Radio, and that Inggo is entitled to his monetary claims in the total amount of
P30,000.00. DJN Radio elevated the case to the Secretary of Labor who affirmed the
order. The case was brought to the Court of Appeals. The radio station contended that
there is no employer-employee relationship because it was the drama directors and
producers who paid, supervised, and disciplined him. Moreover, it argued that the case
falls under the jurisdiction of the NLRC and not the DOLE because Inggo's claim
exceeded P5,000.00.

[a] May DOLE make a prima facie determination of the existence of an employer-
employee relationship in the exercise of its visitorial and enforcement powers? (2.5%)

[b] If the DOLE finds that there is an employee-employer relationship, does the case fall
under the jurisdiction of the Labor Arbiter considering that the claim of inggo is more
than P5,000.00. Explain. (2.5%)

-IV-

Hagibis Motors Corporation (Hagibis) has 500 regular employees in its car assembly
plant. Due to the Asian financial crisis, Hagibis experienced very low car sales resulting
to huge financial losses. It implemented several cost-cutting measures such as cost
reduction on use of office supplies, employment hiring freeze, prohibition on
representation and travel expenses, separation of casuals and reduced work week. As
counsel of Hagibis, what are the measures the company . should undertake to
implement a valid retrenchment? Explain. (5%)

-V-

Asia Union (Union) is the certified bargaining agent of the rimk-and-file employees of
Asia Pacific Hotel (Hotel).

The Union submitted its Collective Bargaining Agreement (CBA) negotiation proposals
to the Hotel. Due to the bargaining deadlock, the Union, on December 20, 2014, filed a
Notice of Strike with the National Conciliation and Mediation Board (NCMB).
Consequently, the Union conducted a Strike Vote on January 14, 2015, when it was
approved.

The next day, waiters who are members of the Union came out of the Union office
sporting closely cropped hair or cleanly shaven heads. The next day, all the male Union
members came to work sporting the same hair style. The Hotel . prevented these
workers from entering the premises, claiming that they violated the company rule on
Grooming Standards.

On January 16, 2015, the Union subsequently staged a picket outside the Hotel
premises and prevented other workers from entering the Hotel. . The Union members
blocked the ingress and egress of customers and employees to the Hotel premises,
which caused the Hotel severe lack of manpower and forced the Hotel to temporarily
cease operations resulting to substantial losses.

On January 20, 2015, the Hotel issued notices to Union members, preventively
suspending them and charging them with the following offenses: (1) illegal picket; (2)
violation of the company rule on Grooming Standards; (3) illegal strike; and (4)
commission of illegal acts during the illegal strike. The Hotel later terminated the Union
officials and members who participated in the strike. The Union denied it engaged in an
illegal strike and countered that the Hotel committed an unfair labor practice (ULP) and
a breach of the freedom of speech.

[a] Was the picketing legal? Was the mass action of the Union officials and members an
illegal strike? Explain. (2.5%)

[b] Rule on the allegations of ULP and violation of freedom of speech. Explain. (2.5%)

-VI-

Pedro, a bus driver of Biyahe sa Langit Transport, was involved in a collision with a car,
damaging the bus. The manager accused him of being responsible for the damage and
was told to submit his written explanation within 48 hours. Pedro submitted his
explanation within the period. The day.after, Pedro received a notice of termination
stating that he is dismissed for reckless driving resulting to damage to company
property, effective immediately. Pedro asks you, as his counsel, if the company
complied with the procedural due process with respect to dismissal of employees.

[a] Explain the twin notice and hearing rule. (2.5%)

[b] Did the Biyahe sa Langit Transport comply with the prior procedural requirements for
dismissal? (2.5%)
-VII-

Forbes Country Club (Club) owns a golf course and has 250 rank-and-file employees
who are members of the Forbes Country Club Union (Union). The Club has a CBA with
the Union and one of the stipulations is a Union Security Clause, which reads: "All
regular rank-and-file employees who are members of the union shall keep their
membership in good standing as a condition for their continued employment during the
lifetime of this agreement."

Peter, Paul and Mary were the Treasurer, Assistant Treasurer, and Budget Officer of
the Union, respectively. They were expelled by the Board of Directors of the Union for
malversation. The Union then demanded that the Club dismiss said officials pursuant to
the Union Security Clause that required maintenance of union membership. The Club
required the three officials to show cause in writing why they should not be dismissed.
Later, the Club called the three Union officials for a conference regarding the charges
against them. After considering the evidence submitted by the parties and their written
explanations, the Club dismissed the erring officials. The dismissed officials sued the
Club and the Union for illegal dismissal because there was really no malversation based
on the documents presented and their dismissal from the Union was due to the fact that
they were organizing another union.

[a] Is the dismissal of Peter, Paul and Mary by the Club valid? (2.5%)

[b] If the expulsion by the Union was found by the Labor Arbiter to be baseless, is the
Club liable to Peter, Paul and Mary? Explain. (2.5%)

-VIII-

Differentiate learnership from apprenticeship with respect to the period of training, type
of work, salary and qualifications. (5%)

-IX-

Zienna Corporation (Zienna) informed the Department of Labor and Employment

Regional Director of the end of its operations. To carry out the cessation, Zienna sent a
Letter Request for Intervention to the NLRC for permission and guidance in effecting
payment of separation benefits for its fifty (50) terminated employees.

Each of the terminated employees executed a Quitclaim and Release before Labor
Arbiter Nocomora, to whom the case was assigned. After the erstwhile employees
received their separation pay, the Labor Arbiter declared the labor dispute dismissed
with prejudice on the ground of settlement. Thereafter, Zienna sold all of its assets to
Zandra Company (Zandra), which in tum hired its own employees.

Nelle, one of the fifty (50) terminated employees, filed a case for illegal dismissal
against Zienna. She argued that Zienna did not cease from operating since the
corporation subsists as Zandra. Nelle pointed out that aside from the two companies
having essentially the same equipment, the managers and owners of Zandra and
Zienna are likewise one and the same.

For its part, Zienna countered that Nelle is barred from filing a complaint for illegal
dismissal against the corporation in view of her prior acceptance of separation pay.

Is Nelle correct in claiming that she was illegally dismissed? (5%)

-X-

Lazaro, an engineer, organized a union in Garantisado Construction Corporation

(Garantisado) which has 200 employees. He immediately filed a Petition for Certification
Election, attaching thereto the signatures of 70 employees. Garantisado vehemently
opposed the petition, alleging that 25 signatories are probationary employees, while 5
are supervisors. It submitted the contracts of the 25 probationary employees and the job
description of the supervisors. It argued that if 30 is deducted from 70, it gives a balance
of 40 valid signatures which is way below the minimum number of 50 signatories
needed to meet the alleged 25% requirement. If you are the Director of Labor Relations,
will you approve the holding of a Certification Election. Explain your answer. (5%)

-XI-

Dion is an Accounting Supervisor in a trading company. He has rendered exemplary

service to the company for 20 years. His co-employee and kumpadre, Mac, called him
over the phone and requested him to punch his (Mac's) daily time card as he (Mac) was
caught in a monstrous traffic jam. Dion acceded to Mac's request but was later caught
by the Personnel Manager while punching. Mac's time card. The company terminated
the employment of Dion on the ground of misconduct. Is the dismissal valid and just?
Explain. (5%)

-XII-

Amaya was employed as a staff nurse by St. Francis Hospital (SFH) on July 8, 2014 on
a probationary status for six (6) months. Her probationary contract required, among
others, strict compliance with SFH's Code of Discipline.

On October 16, 2014, Dr. Ligaya, filed a Complaint with the SFH Board of Trustees
against Amaya for uttering slanderous remarks against the former. Attached to the
complaint was a letter of Minda, mother of a patient, who confirmed the following
remarks against Dr. Ligaya:

"Bakit si Dr. Ligaya pa ang napili mong 'pedia' eh ang tandatanda na n'un? E
makakalimutin na yun xx x Alam mo ba, kahit wala namang diperensya yung baby,
ipinapa-iso/ate nya?"

The SFH President asks you, being the hospital's counsel, which of these two (2)
options is the legal and proper way of terminating Amaya: a) terminate her for a just
cause under Article 288 of the Labor Code (Termination by Employer); or b) terminate
her for violating her probationary contract. Explain. (5%)

-XIII-

Matibay Shoe and Repair Store, as added service to its customers, devoted a portion of
its store to a shoe shine stand. The shoe shine boys were tested for their skill before
being allowed to work and given ID cards. They were told to be present from the
opening of the store up to closing time and were· required to follow the company rules
on cleanliness and decorum. They bought their own shoe shine boxes, polish, and rags.
The boys were paid by their customers for their services but the payment is coursed
through the store's cashier, who pays them before closing time. They were not
supervised in their work by any managerial employee of the store but for a valid
complaint by a customer or for violation of any company rule, they can be refused
admission to the store. Were the boys employees of the store? Explain. (5%)

-XIV-

Tess, a seamstress at Marikit Clothing Factory, became pregnant. Because of morning

sickness, she frequently absented herself from work and often came to the factory only
four (4) days a week. After two (2) months, the personnel manager told her that her
habitual absences rendered her practically useless to the company and, thus, asked her
to resign. She begged to be retained, citing her pregnancy as reason for her absences.
Tess asked for leave of absence but her request was denied. She went on leave
nevertheless. As a result, she was thus dismissed for going on leave without permission
of management.

Tess filed a complaint for illegal dismissal. The company's defense: she was legally
dismissed because of her numerous absences without leave and not because of her
pregnancy. On the other hand, Tess argues that her dismissal was an act of
discrimination, based as it was on her pregnancy which the company treated as a
disease. Whose position is meritorious-the company's or Tess'? Explain. (5%)

-XV-

Jim is the holder of a certificate of public convenience for a jeepney. He entered into a
contract of lease with Nick, whereby they agreed that the lease period is for one (1) year
unless sooner terminated by Jim for any of the causes laid down in the contract. The
rental is thirty thousand pesos (P30,000.00) monthly. All the expenses for the repair of
the jeepney, together with expenses for diesel, oil and service, shall be for the account
of Nick. Nick is required to make a deposit of three (3) months to answer for the
restoration of the vehicle to its good operating condition when the contract ends. It is
stipulated that Nick is not an employee of Jim and he holds the latter free and harmless
from all suits or claims which may arise from the implementation of the contract. Nick
has the right to use the jeepney at any hour of the day provided it is operated on the
approved line of operation.
After five (5) months of the lease and payment of the rentals, Nick became delinquent in
the payment of the rentals for two (2) months. Jim, as authorized by the contract, sent a
letter of demand rescinding the contract and asked for the arrearages. Nick responded
by filing a complaint with the NLRC for illegal dismissal, claiming that the contract is
illegal and he was just forced by Jim to sign it so he can drive. He claims he is really a
driver of Jim on a boundary system and the reason he was removed is because he
failed to pay the complete daily boundary , of one thousand (P1,000.00) for 2 months
due to the increase in the number of tricycles.

[a] Jim files a motion to dismiss the NLRC case on the ground that the regular court has
jurisdiction since the agreement is a lease contract. Rule on the motion and explain.
(2.5%)

[b] Assuming that Nick is an employee of Jim, was Nick validly dismissed?

-XVI-

In a case for illegal dismissal and non-payment of benefits, with prayer for Damages·,
Apollo was awarded the following: 1) P200,000.00 as back.wages; 2) P80,000.00 as
unpaid wages; 3) P20,000.00 as unpaid holiday pay; 4) PS,000.00 as unpaid service
incentive leave pay; 5) P50,000.00 as moral damages; and 6) P10,000.00 as exemplary
damages. Attorney's fees of ten percent (10%) of all the amounts covered by items 1 to
6 inclusive, plus interests of 6% per annum from the date the same were unlawfully
withheld, were also awarded.

[a] Robbie, the employer, contests the award of attorney fees amounting to 10% on all
the amounts adjudged on the ground that Article 111 of the Labor Code authorizes only
10% "of the amount of wages recovered". Rule on the issue and explain. (2.5%)

[b] Robbie likewise questions the imposition of interests on the amounts in question
because it was not claimed by Apollo, and the Civil Code provision on interests does not
apply to a labor case. Rule on the issue and explain. (2.5%)
-XVII-

Baldo, a farm worker on pakyaw basis, had been working on Dencio's land by
harvesting abaca and coconut, processing copra, and clearing weeds from year to year
starting January 1993 up to his death in 2007. He worked continuously in the sense that
it was done for more than one harvesting season.

[a] Was Dencio required to report Baldo for compulsory social security coverage under
the SSS law? Explain. (2.5%)

[b] What are the liabilities of the employer who fails to report his employee for social
security coverage? Explain. (2.5%)

-XVIII-

Empire Brands (Empire) contracted the services of Style Corporation (Style) for the
marketing and promotion of its clothing line. Under the contract, Style provided Empire
with Trade Merchandising Representatives (TMRs) whose services began on
September 15, 2004 and ended on June 6, 2007, when Empire terminated the
promotions contract with Style.

Empire then entered into an agreement for manpower supply with Wave Human
Resources (Wave). Wave owns its condo office, owns equipment for the use by the
TMRs, and has assets amounting to Pl,000,000.00. Wave provided the supervisors who
supervised the TMRs, who, in tum, received orders from the Marketing Director of
Empire. In their agreement, the parties stipulated that Wave shall be liable for the
wages and salaries of its employees or workers, including benefits, and protection due
them, as well as remittance to the proper government entities of all withholding taxes,
Social Security Service, and Philhealth premiums, in accordance with relevant laws.

As the TMRs wanted to continue working at Empire, they submitted job applications as
TMRs with Wave. Consequently, Wave hired them for a term of five (5) months, or from
June 7, 2007 to November 6, 2007, specifically to promote Empire's products.

When the TMRs' 5-month contracts with Wave were about to expire, they sought
renewal thereof, but were refused. Their contracts with Wave were no longer renewed
as Empire hired another agency. This prompted them to file complaints for illegal
dismissal, regularization, non-payment of service incentive leave and 13th month pay
against Empire and Wave.

[a] Are the TMRs employees of Empire? (2.5%)

[b] Were the TMRs illegally dismissed by Wave? (2.5%)

-XIX-

Filmore Corporation was ordered to pay P49 million to its employees by the Labor
Arbiter. It interposed an appeal by filing a Notice of Appeal and paid the corresponding
appeal fee. However, instead of filing the required appeal bond equivalent to the total
amount of the monetary award, Filmore filed a Motion to Reduce the Appeal Bond to
P4,000,000.00 but submitted a surety bond in the amount of P4.9 million. Filmore cited
financial difficulties as justification for its inability to post the appeal bond in full owing to
the shutdown of its operations. It submitted its audited financial statements showing a
loss of P40 million in the previous year. To show its good faith, Filmore also filed its
Memorandum of Appeal.

The NLRC dismissed the appeal for non-perfection on the ground that · posting of an
appeal bond equivalent to the monetary award is indispensable for the perfection of the
appeal and the reduction of the appeal bond, absent any showing of meritorious ground
to justify the same, is not warranted. Is the dismissal of the appeal correct? Explain.
(5%)

-XX-

Mario Brothers, plumbing works contractor, entered into an agreement with Axis
Business Corporation (Axis) for the plumbing works of its building under construction.
Mario Brothers engaged the services of Tristan, Arthur, and Jojo as plumber, pipe fitter,
and threader, respectively. These workers have worked for Mario Brothers in numerous
construction projects in the past but because of their long relationship, they were never
asked to sign contracts for each project. No reports to government agencies were made
regarding their work in the company.
During the implementation of the works contract, Axis suffered financial difficulties and
was not able to pay Mario Brothers its past billings. As a result, the three (3) employees
were not paid their salaries for two (2) months and their 13th month pay. Because Axis
cannot pay, Mario Brothers cancelled the contract and laid off Tristan, Arthur, and Jojo.
The 3 employees sued Mario Brothers and Axis for illegal dismissal, unpaid wages, and
benefits.

[a] Mario Brothers claims the 3 workers are project employees. It explains that the
agreement is, if the works contract is cancelled due to the fault of the client, the period
of employment is automatically terminated. Is the contractor correct? Explain. (2.5%)

[b] Can Axis be made solidarily liable with Mario Brothers to pay the unpaid wages and
13th month pay of Tristan, Arthur, and Jojo? Explain. (2.5%)

2017

A.

What are the accepted tests to determine the existence of an employer-employee

relationship? (5%)

B.

Applying the tests to determine the existence of an employer-employee relationship, is a

jeepney driver operating under the boundary system an employee of his jeepney
operator or a mere lessee of the jeepney? Explain your answer. (3%)
II.

Procopio was dismissed from employment for stealing his co-employee Raul's watch.
Procopio filed a complaint for illegal dismissal. The Labor Arbiter ruled in Procopio's
favor on the ground that Raul's testimony was doubtful, and, therefore, the doubt should
be resolved in favor of Procopio. On appeal, the NLRC reversed the ruling because
Article 4 of the Labor Code - which states that all doubts in the interpretation and
implementation of the provisions of the Labor Code, including the implementing rules
and regulations, shall be resolved in favor of labor - applied only when the doubt
involved the "implementation and interpretation" of the Labor Code; hence, the doubt,
which involved the application of the rules on evidence, not the Labor Code, could not
necessarily be resolved in favor of Procopio. Was the reversal correct? Explain your
answer. (3%)

III.

A.

Andrew Manning Agency (AMA) recruited Feliciano for employment by lnvictus

Shipping, its foreign principal. Meantime, AMA and lnvictus Shipping terminated their
agency agreement. Upon his repatriation following his premature termination, Feliciano
claimed from AMA and lnvictus Shipping the payment of his salaries and benefits for the
unserved portion of the contract. AMA denied liability on the ground that it no longer had
an agency agreement with lnvictus Shipping. Is AMA correct? Explain your answer.
(3%)

B.

As a rule, direct hiring of migrant workers is not allowed. What are the exceptions?
Explain your answer. (2.5%)

C.

Phil, a resident alien, sought employment in the Philippines. The employer, noticing that
Phil was a foreigner, demanded that he first secures an employment permit from the
DOLE. Is the employer correct? Explain your answer. (2.5%)
IV.

The Regional Tripartite Wages and Productivity Board (RTWPB) for Region 3 issued a
wage order on November 2, 2017 fixing the minimum wages for all industries
throughout Region 3.

(a) Is the wage order subject to the approval of the National Wages and Productivity
Commission before it takes effect? (2%)

(b) The law mandates that no petition for wage increase shall be entertained within a
period of 12 months from the effectivity of the wage order. Under what circumstances
may the Kilusang Walang Takot, a federation of labor organizations that publicly and
openly assails the wage order as blatantly unjust, initiate the review of the wage
increases under the wage order without waiting for the end of the 12-month period?
Explain your answer. (3%)

V.

A.

Percival was a mechanic of Pacific Airlines. He enjoyed a meal break of one hour.
However, during meal breaks, he was required to be on stand-by for emergency work.
During emergencies, he was made to forego his meals or to hurry up eating. He
demanded payment of overtime for work done during his meal periods. Is Percival
correct? Explain your answer. (3%)

B.

Distinguish a learner from an apprentice. (4%)

C.

Are there differences between a househelper and a homeworker? Explain your answer.
(4%)
VI.

A.

One of Pacific Airline's policies was to hire only single applicants as flight attendants,
and considered as automatically resigned the flight attendants at the moment they got
married. Is the policy valid? Explain your answer. (2.5%)

B.

Tarcisio was employed as operations manager and received a monthly salary of

₱25,000.00 through his payroll account with DB Bank. He obtained a loan from Roberto
to purchase a car. Tarcisio failed to pay Roberto when the loan fell due. Roberto sued to
collect, and moved to garnish Tarcisio's payroll account. The latter vigorously objected
and argued that salaries were exempt from garnishment. Is Tarcisio correct? Explain
your answer. (3%)

VII.

Dr. Crisostomo entered into a retainer agreement with AB Hotel and Resort whereby he
would provide medical services to the guests and employees of AB Hoteland Resort,
which, in turn, would provide the clinic premises and medical supplies. He received a
monthly retainer fee of ₱60,000.00, plus a 70% share in the service charges from AB
Hotel and Resort's guests availing themselves of the clinic's services. The clinic
employed nurses and allied staff, whose salaries, SSS contributions and other benefits
he undertook to pay. AB Hotel and Resort issued directives giving instructions to him on
the replenishment of emergency kits and forbidding the clinic staff from receiving cash
payments from the guests.

In time, the nurses and the clinic staff claimed entitlement to rights as regular
employees of AB Hoteland Resort, but the latter refused on the ground that Dr.
Crisostomo, who was their employer, was an independent contractor. Rule, with
reasons. (4%)
VIII.

Marciano was hired as Chief Engineer on board the vessel MN Australia. His contract of
employment was for nine months. After nine months, he was re-hired. He was hired a
third time after another nine months. He now claims entitlement to the benefits of a
regular employee based on his having performed tasks usually necessary and desirable
to the employer's business for a continuous period of more than one year. Is Marciano's
claim tenable? Explain your answer. (3%)

IX.

Section 255 (245) of the Labor Code recognizes three categories of employees,
namely: managerial, supervisory, and rank-and-file.

(a) Give the characteristics of each category of employees, and state whether the
employees in each category may organize and form unions. Explain your answer. (5%)

(b) May confidential employees who assist managerial employees, and who act in a
confidential capacity or have access to confidential matters being handled by persons
exercising managerial functions in the field of labor relations form, or assist, or join labor
unions? Explain your answer. (2.5%)

X.

A.

The labor sector has been loudly agitating for the end of labor-only contracting, as
distinguished from job contracting. Explain these two kinds of labor contracting, and
give the effect of a finding that one is a labor-only contractor. Explain your answers.
(4%)

B.

What are the grounds for validly terminating the services of an employee based on a
just cause? (5%)

C.
Give the procedure to be observed for validly terminating the services of an employee
based on a just cause? (4%)

XI.

A.

The modes of determining the exclusive bargaining agent of the employees in a

business are: (a) voluntary recognition; (b) certification election; and (c) consent
election. Explain how they differ from one another. (4%)

B.

Marcel was the Vice President for Finance and Administration and a member of the
Board of Directors of Mercedes Corporation. He brought a complaint for illegal
suspension and illegal dismissal against Mercedes Corporation, which moved to
dismiss the complaint on the ground that the complaint pertained to the jurisdiction of
the RTC due to the controversy being intracorporate based on his positions in the
corporation. Marcel countered that he had only been removed as Vice President for
Finance and Administration, not as a member of the Board of Directors. He also argued
that his position was not listed as among the corporate offices in Mercedes
Corporation's by-laws. Is the argument of Marcel correct? Explain your answer. (2.5%)

C.

State the jurisdiction of the Voluntary Arbitrator, or Panel of Voluntary Arbitrators in

labor disputes? (4%)

XII.

A.

Juanito initiated a case for illegal dismissal against Mandarin Company. The Labor
Arbiter decided in his favor, and ordered his immediate reinstatement with full
backwages and without loss of seniority and other benefits. Mandarin Company did not
like to allow him back in its premises to prevent him from influencing his co-workers to
move against the interest of the company; hence, it directed his payroll reinstatement
and paid his full backwages and other benefits even as it appealed to the NLRC.

A few months later, the NLRC reversed the ruling of the Labor Arbiter and declared that
Juanito's dismissal was valid. The reversal ultimately became final.

May Mandarin Company recover the backwages and other benefits paid to Juanito
pursuant to the decision of the Labor Arbiter in view of the reversal by the NLRC? Rule,
with reasons. (2.5%)

B.

Gene is a married regular employee of Matibay Corporation. The employees and

Matibay Corporation had an existing CBA that provided for funeral or bereavement aid
of ₱15,000.00 in case of the death of a legal dependent of a regular employee. His
widowed mother, who had been living with him and his family for many years, died;
hence, he claimed the funeral aid. Matibay Corporation denied the claim on the basis
that she had not been his legal dependent as the term legal dependent was defined by
the Social Security Law.

(a) Who may be the legal dependents of Gene under the Social Security Law? (2.5%)

(b) Is Gene entitled to the funeral aid for the death of his widowed mother? Explain your
answer. (2%)

C.

Rosa was granted vacation leave by her employer to spend three weeks in Africa with
her family. Prior to her departure, the General Manager of the company requested her
to visit the plant of a client of the company in Zimbabwe in order to derive best
manufacturing practices useful to the company. She accepted the request because the
errand would be important to the company and Zimbabwe was anyway in her itinerary.
It appears that she contracted a serious disease during the trip. Upon her return, she
filed a claim for compensation, insisting that she had contracted the disease while
serving the interest of her employer.
Under the Labor Code, the sickness or death of an employee, to be compensable, must
have resulted from an illness either definitely accepted as an occupational disease by
the Employees' Compensation Commission, or caused by employment subject to proof
that the risk of contracting the same is increased by working conditions.

Is the serious disease Rosa contracted during her trip to Africa compensable? Explain
your answer. (2.5%)

XIII.

A.

Given that the liability for an illegal strike is individual, not collective, state when the
participating union officers and members may be terminated from employment because
of the illegal strike. Explain your answer. (4%)

B.

A sympathetic strike is stoppage of work to make common cause with other strikers in
another establishment or business. Is the sympathetic strike valid? Explain your answer.
(1%)

C.

Due to business recession, Ballistic Company retrenched a part of its workforce.

Opposing the retrenchment, some of the affected employees staged a strike.
Eventually, the retrenchment was found to be justified, and the strike was declared
illegal; hence, the leaders of the strike, including the retrenched employees, were
declared to have lost their employment status.

Are the striking retrenched employees still entitled to separation pay under Sec. 298
(283) of the Labor Code despite the illegality of their strike? Explain your answer. (2%)

XIV.

Pursuant to his power under Sec. 278(g) (263(g)) of the Labor Code, the Secretary of
Labor assumed jurisdiction over the 3-day old strike in Armor Steel Plates, Inc., one of
the country's bigger manufacturers of steel plates, and ordered all the striking
employees to return to work. The striking employees ignored the order to return to work.

(a) What conditions may justify the Secretary of Labor to assume jurisdiction? (2.5%)

(b) What are the consequences of the assumption of jurisdiction by the Secretary of
Labor, and of the disobedience to the return to work? Explain your answer. (2.5%)

2018

I.

Narciso filed a complaint against Norte University for the payment of retirement benefits
after having been a part-time professional lecturer in the same school since 1974.
Narciso taught for two semesters and a summer term for the school year 1974-1975,
took a leave of absence from 1975 to 1977, and resumed teaching until 2003. Since
then, his contract has been renewed at the start of every semester and summer, until
November 2005 when he was told that he could no longer teach because he was
already 75 years old. Norte University also denied Narciso's claim for retirement
benefits stating that only full-time permanent faculty, who have served for at least five
years immediately preceding the termination of their employment, can avail themselves
of post-employment benefits. As part-time faculty member, Narciso did not acquire
permanent employment status under the Manual of Regulations for Private Schools, in
relation to the Labor Code, regardless of his length of service.

(a) Is Narciso entitled to retirement benefits? (2.5%)

(b) If he is entitled to retirement benefits, how should retirement pay be computed in the
absence of any contract between him and Norte University providing for such benefits?
(2.5%)
II

Nayon Federation issued a charter certificate creating a rank-and-file Neuman

Employees Union. On the same day, New Neuman Employees Union filed a petition for
certification election with the Department of Labor and Employment (DOLE) Regional
Office, attaching the appropriate charter certificate.

a) The employer, Neuman Corporation, filed a motion to dismiss the petition for lack of
legal personality on the part of the petitioner union. Should the motion be granted?
(2.5%)

b) The employer likewise filed a petition for cancellation of union registration against
New Neuman Employees Union, alleging that Nayon Federation already had a
chartered local rank-and-file union, Neuman Employees Union, pertaining to the same
bargaining unit within the establishment. Should the petition for cancellation prosper?
(2.5%)

III

Due to his employer's dire financial situation, Nicanor was prevailed upon by his
employer to voluntarily resign. In exchange, he demanded payment of salary
differentials, 13th month pay, and financial assistance, as promised by his employer.
Management promised to pay him as soon as it is able to pay off all was attack.
retrenched able His to rank-and-file widow, pay Nicanor Norie, employees. the filed
amount a money Five promised claim years against to later, him, and the Nicanor
company before died management before the National Labor Relations Commission
(NLRC), including interest on the amount of the unpaid claim. She also claimed
additional damages arguing that the supposed resignation letter was obtained from her
spouse through undue pressure and influence. The employer filed a motion to dismiss
on the ground that (A) the NLRC did not have jurisdiction over money claims, and (8)
the action has prescribed.

(a) Does the NLRC have jurisdiction to award money claims including interest on the
amount unpaid? (2.5%)
(b) Assuming that the NLRC has jurisdiction, has the action prescribed? (2.5%)

(c) May Nicanor's spouse successfully claim additional damages as a result of the
alleged undue pressure and influence? (2.5%)

IV

Natasha Shoe Company adopted an organizational streamlining program that resulted

in the retrenchment of 550 employees in its main plant. After having been paid their
separation benefits, the retrenched workers demanded payment of retirement benefits
under a CBA between their union and management. Natasha Shoe Company denied
the workers' demand.

(a) What is the most procedurally peaceful means to resolve this dispute? (2.5%)

(b) Can the workers claim both separation pay and retirement benefits? (2.5%)

Nelda worked as a chambermaid in Hotel Neverland with a basic wage of PhP560.00

for an eight-hour workday. On Good Friday, she worked for one (1) hour from 10:00 PM
to 11:00 PM. Her employer paid her only PhP480.00 for each 8-hour workday, and
PhP70.00 for the work done on Good Friday. She sued for underpayment of wages and
non-payment of holiday pay and night shift differential pay for working on a Good
Friday. Hotel Neverland denied the alleged underpayment, arguing that based on long-
standing unwritten tradition, food and lodging costs were partially shouldered by the
employer and partially paid for by the employee through salary deduction. According to
the employer, such valid deduction caused the payment of Nelda's wage to be below
the prescribed minimum. The hotel also claimed that she was not entitled to holiday pay
and night shift differential pay because hotel workers have to work on holidays and may
be assigned to work at night.

(a) Does the hotel have valid legal grounds to deduct food and lodging costs from
Nelda's basic salary? (2.5%)
(b) Applying labor standards law, how much should Nelda be paid for work done on
Good Friday? Show the computation in your test booklet and encircle your final answer.
(2.5%)

VI

A certification election was conducted in Nation Manufacturing Corporation, whereby

55% of eligible voters in the bargaining unit cast their votes. The results were as follows:

Union Nana : 45 votes

Union Nada: 40 votes

Union Nara : 30 votes

No Union : 80 votes

Union Nana moved to be declared as the winner of the certification election.

a) Can Union Nana be declared as the winner? (2.5%)

b) Assume that the eligibility of 30 voters was challenged during the pre-election
conference. The ballots of the 30 challenged voters were placed inside an envelope
sealed by the DOLE Election Officer. Considering the said envelope remains sealed,
what should be the next course of action with respect to the said challenged votes?
(2.5%)

VII

Nico is a medical representative engaged in the promotion of pharmaceutical products

and medical devices for Northern Pharmaceuticals, Inc. He regularly visits physicians'
clinics to inform them of the chemical composition and benefits of his employer's
products. At the end of every day, he receives a basic wage of PhP700.00 plus a
PhP150.00 "productivity allowance." For purposes of computing Nico's 13th month pay,
should the daily "productivity allowance" be included? (2.5%)
VIII

Nathaniel has been a salesman assigned by Newmark Enterprises (Newmark) for

nearly two years at the Manila office of Nutrition City, Inc. (Nutrition City). He was
deployed pursuant to a service agreement between Newmark and Nutrition City, the
salient provisions of which were as follows:

a) the Contractor (Newmark) agrees to perform and provide the Client (Nutrition City),
on a non-exclusive basis, such tasks or activities that are considered contractible under
existing laws, as may be needed by the Client from time to time;

b) the Contractor shall employ the necessary personnel like helpers, salesmen, and
drivers who are determined by the Contractor to be efficiently trained;

c) the Client may request replacement of the Contractor's personnel if quality of the
desired result is not achieved;

d) the Contractor's personnel will comply with the Client's policies, rules, and
regulations; and

e) the Contractor's two service vehicles and necessary equipment will be utilized in
carrying out the provisions of this Agreement.

When Newmark fired Nathaniel, he filed an illegal dismissal case against the wealthier
company, Nutrition City, Inc., alleging that he was a regular employee of the same. Is
Nathaniel correct? (2.5%)

IX

Sgt. Nemesis was a detachment non-commissioned officer of the Armed Forces of the
Philippines in Nueva Ecija. He and some other members of his detachment sought
permission from their Company Commander for an overnight pass to Nueva Vizcaya to
settle some important matters. The Company Commander orally approved their request
and allowed them to carry their firearms as the place they were going to was classified
as a "critical place." They arrived at the place past midnight; and as they were alighting
from a tricycle, one of his companions accidentally dropped his rifle, which fired a single
shot, and in the process hit Sgt. Nemesis fatally. The shooting was purely accidental. At
the time of his death, he was still legally married to Nelda, but had been separated de
facto from her for 17 years. For the last 15 years of his life, he was living in with Narda,
with whom he has two minor children. Since Narda works as a kasambahay, the two
children lived with their grandparents, who provided their daily support. Sgt. Nemesis
and Narda only sent money to them every year to pay for their school tuition.

Nelda and Narda, both for themselves and the latter, also on behalf of her minor
children, separately filed claims for compensation as a result of the death of Sgt.
Nemesis. The Line of Duty Board of the AFP declared Sgt. Nemesis' death to have
been "in line of duty", and recommended that all benefits due to Sgt. Nemesis be given
to his dependents. However, the claims were denied by GSIS because Sgt. Nemesis
was not in his workplace nor performing his duty as a soldier of the Philippine Army
when he died.

(a) Are the dependents of Sgt. Nemesis entitled to compensation as a result of his
death? (2.5%)

(b) As between Nelda and Narda, who should be entitled to the benefits? (2.5%)

(c) Are the minor children entitled to the benefits considering that they were not fully
dependent on Sgt. Nemesis for support? (2.5%)

Nonato had been continuously employed and deployed as a seaman who performed
services that were necessary and desirable to the business of N-Train Shipping,
through its local agent, Narita Maritime Services (Agency), in accordance with the 2010
Philippine Overseas Employment Administration Standard Employment Contract (2010
POEA-SEC). Nonato's last contract (for five months) expired on November 15, 2016.
Nonato was then repatriated due to a "finished contract." He immediately reported to the
Agency and complained that he had been experiencing dizziness, weakness, and
difficulty in breathing. The Agency referred him to Dr. Neri, who examined, treated, and
prescribed him with medications. After a few months of treatment and consultations,
Nonato was declared fit to resume work as a seaman. Nonato went back to the Agency
to ask for re-deployment but the Agency rejected his application. Nonato filed an illegal
dismissal case against the Agency and its principal, with a claim for total disability
benefits based on the ailments that he developed on board N-Train Shipping vessels.
The claim was based on the certification of his own physician, Dr. Nunez, that he was
unfit for sea duties because of his hypertension and diabetes.

a) Was Nonato a regular employee of N-Train Shipping? (2.5%)

b) Can Nonato successfully claim disability benefits against N-Train Shipping and its
agent Narita Maritime Services? (2.5%)

XI

Your favorite relative, Tita Nilda, approaches you and seeks your advice on her
treatment of her kasambahay, Noray. Tita Nilda shows you a document called a
"Contract of Engagement" for your review. Under the Contract of Engagement, Noray
shall be entitled to a rest day every week, provided that she may be requested to work
on a rest day if Tita Nilda should need her services that day. Tita Nilda also claims that
this Contract of Engagement should embody all terms and conditions of Noray's work as
the engagement of a kasambahay is a private matter and should not be regulated by
the State.

a) Is Tita Nilda correct in saying that this is a private matter and should not be regulated
by the State? (2.5%)

b) Is the stipulation that she may be requested to work on a rest day legal? (2.5%)

c) Are stay-in family drivers included under the Kasambahay Law? (2.5%)

XII

Nena worked as an Executive Assistant for Nesting, CEO of Nordic Corporation. One
day, Nesting called Nena into his office and showed her lewd pictures of women in
seductive poses which Nena found offensive. Nena complained before the General
Manager who, in turn, investigated the matter and recommended the dismissal of
Nesting to the Board of Directors. Before the Board of Directors, Nesting argued, that
since the Anti-Sexual Harassment Law requires the existence of "sexual favors," he
should not be dismissed from the service since he did not ask for any sexual favor from
Nena. Is Nesting correct? (2.5%)

XIII

Nicodemus was employed as a computer programmer by Network Corporation, a

telecommunications firm. He has been coming to work in shorts and sneakers, in
violation of the "prescribed uniform policy" based on company rules and regulations.
The company human resources manager wrote him a letter, giving him 10 days to
comply with the company uniform policy. Nicodemus asserted that wearing shorts and
sneakers made him more productive, and cited his above-average output. When he
came to work still in violation of the uniform policy, the company sent him a letter of
termination of employment. Nicodemus filed an illegal dismissal case. The Labor Arbiter
ruled in favor of Nicodemus and ordered his reinstatement with backwages. Network
Corporation, however, refused to reinstate him. The NLRC 1st Division sustained the
Labor Arbiter's judgment. Network Corporation still refused to reinstate Nicodemus.
Eventually, the Court of Appeals reversed the decision of the NLRC and ruled that the
dismissal was valid. Despite the reversal, Nicodemus still filed. a motion for execution
with respect to his accrued backwages.

(a) Were there valid legal grounds to dismiss Nicodemus from his employment? (2.5%)

(b) Should Nicodemus' motion for execution be granted? (2.5%)

XIV

Nelson complained before the DOLE Regional Office about Needy Corporation's failure
to pay his wage increase amounting to PhPS,000.00 as mandated in a Wage Order
issued by the Regional Tripartite Wages and Productivity Board. Consequently, Nelson
asked the DOLE to immediately issue an Order sustaining his money claim. To his
surprise, he received a notice from the DOLE to appear before the Regional Director for
purposes of conciliating the dispute between him and Needy Corporation. When
conciliation before the Regional Director failed, the latter proceeded to direct both
parties to submit their respective position papers in relation to the dispute. Needy
Corporation argued, that since Nelson was willing to settle for 75% of his money claim
during conciliation proceedings, only a maximum of 75% of the said money claim may
be awarded to him.

(a) Was DOLE's action to conduct mandatory conciliation in light of Nelson's complaint
valid? (2.5%)

(b) Should the Regional Director sustain Needy Corporation's argument? (2.5%)

XV

Nexturn Corporation employed Nini and Nono, whose tasks involved directing and
supervising rank-and-file employees engaged in company operations. Nini and Nono
are required to ensure that such employees obey company rules and regulations, and
recommend to the company's Human Resources Department any required disciplinary
action against erring employees. In Nextum Corporation, there are two independent
unions, representing rank-and-file and supervisory employees, respectively.

a) May Nini and Nono join a union? (2.5%)

b) May the two unions be affiliated with the same Union Federation? (2.5%)

XVI

Nagrab Union and Nagrab Corporation have an existing CSA which contains the
following provision: "New employees within the coverage of the bargaining unit who may
be regularly employed shall become members of Nagrab Union. Membership in good
standing with the Nagrab Union is a requirement for continued employment with Nagrab
Corporation." Nagrab Corporation subsequently acquired all the assets and rights of
Nuber Corporation and absorbed all of the latter's employees. Nagrab Union
immediately demanded enforcement of the above-stated CSA provision with respect to
the absorbed employees. Nagrab Corporation refused on the ground that this should
not apply to the absorbed employees who were former employees of another
corporation whose assets and rights it had acquired.

(a) Was Nagrab Corporation correct in refusing to enforce the CSA provision with
respect to the absorbed employees? (2.5%)
(b) May a newly-regularized employee of Nagrab Corporation (who is not part of the
absorbed employees) refuse to join Nagrab Union? How would you advise the human
resources manager of Nagrab Corporation to proceed? (2.5%)

XVII

Upon compliance with the legal requirements on the conduct of a strike, Navarra Union
staged a strike against Newfound Corporation on account of a collective bargaining
deadlock. During the strike, some members of Navarra Union broke the windows and
punctured the tires of the company-owned buses. The Secretary of Labor and
Employment assumed jurisdiction over the dispute.

(a) Should all striking employees be admitted back to work upon the assumption of
jurisdiction by the Secretary of Labor and Employment? Will these include striking
employees who damaged company properties? (2.5%)

(b) May the company readmit strikers only by restoring them to the payroll? (2.5%)

XVIII

Nestor and Nadine have been living in for the last 10 years without the benefit of
marriage. Their union has produced four children. Nadine was three months pregnant
with her 5th child when Nestor left her for another woman. When Nadine was eight
months pregnant with her 5th child, she applied for maternity leave benefits. Her
employer refused on the ground that this was already her 5th pregnancy and that she
was only living in with the father of her child, who is now in a relationship with another
woman. When Nadine gave birth, Nestor applied for paternity leave benefits. His
employer also denied the application on the same grounds that Nadine's employer
denied her application.

(a) Can Nadine's employer legally deny her claim for maternity benefits? (2.5%)

(b) Can Nestor's employer legally deny his claim for paternity benefits? (2.5%)
XIX

Northeast Airlines sent notices of transfer, without diminution in salary or rank, to 50

ground crew personnel who were front-liners at Northeast Airlines counters at the Ninoy
Aquino International Airport (NAIA). The 50 employees were informed that they would
be distributed to various airports in Mindanao to anticipate robust passenger volume
growth in the area. North Union, representing rank-and-file employees, filed unfair labor
practice and illegal dismissal cases before the NLRC, citing, among others, the
inconvenience of the 50 concerned employees and union discrimination, as 8 of the 50
concerned ground crew personnel were union officers. Also, the Union argued that
Northeast Airlines could easily hire additional employees from Mindanao to boost its
ground operations in the Mindanao airports.

a) Will the transfer of the 50 ground crew personnel amount to illegal dismissal? (2.5%)

b) Will the unfair labor practice case prosper? (2.5%)

XX

In Northern Lights Corporation, union members Nad, Ned, and Nod sought permission
from the company to distribute flyers with respect to a weekend union activity. The
company HR manager granted the request through a text message sent to another
union member, Norlyn.

While Nad, Ned, and Nod were distributing the flyers at the company assembly plant, a
company supervisor barged in and demanded that they cease from distributing the
flyers, stating that the assembly line employees were trying to beat a production
deadline and were thoroughly distracted. Norlyn tried to show the HR manager's text
message authorizing flyer distribution during work hours, but the supervisor brushed it
aside.

As a result, Nad, Ned, and Nod were suspended for violating company rules on
trespass and highly-limited union activities during work hours. The Union filed an unfair
labor practice (ULP) case before the NLRC for union discrimination.

a) Will the ULP case filed by the Union prosper? (2.5%)

b) Assume the NLRC ruled in favor of the Union. The Labor Arbiter's judgment included,
among others, an award for moral and exemplary damages at PhP50,000.00 each for
Nad, Ned, and Nod. should Northern be Lights given to Corporation the Union, and
argued not that individually any award to its of members. Is Northern Lights Corporation
correct? (2.5%)