1

I
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
 2

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%)
 3

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%)
-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-
 4

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
 5

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%)
 6

[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%)
-END
I
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%)
V
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
 7

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%)
X
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%)
 8

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,
 9

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%)
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%)
 10

(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.
 11

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
 12

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
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
 13

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
 14

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.
 15

(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.
 16

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.
 17

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.
-0-0-0-
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
 18

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
 19

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%)
- NOTHING FOLLOWS -
Bar Examination Questionnaire for Labor Law
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.
 20

(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.
 21

(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.
 22

(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
 23

(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
 24

(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.
 25

(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.
 26

(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.
 27

(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.
PART I
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
 28

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%)
X
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%)
 29

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
 30

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%)
NOTHING FOLLOWS
PART I
I
TRUE or FALSE. Answer TRUE if the statement is true, or FALSE if the statement is false. Explain your answer in not more than
two (2) sentences. (5%)
a. An employment contract prohibiting employment in a competing company within one year from separation is valid.
b. All confidential employees are disqualified to unionize for the purpose of collective bargaining.
c. A runaway shop is an act constituting unfair labor practice.
d. In the law on labor relations, the substitutionary doctrine prohibits a new collective bargaining agent from repudiating an
existing collective bargaining agreement.
e. The visitorial and enforcement powers of the DOLE Regional Director to order and enforce compliance with labor
standard laws can be exercised even when the individual claim exceeds P5,000.00.
II
a. Enumerate at least four (4) policies enshrined in Section 3, Article XIII of the Constitution that are not covered by Article 3
of the Labor Code on declaration of basic policy. (2%)
b. Clarito, an employee of Juan, was dismissed for allegedly stealing Juan’s wristwatch. In the illegal dismissal case instituted
by Clarito, the Labor Arbiter, citing Article 4 of the Labor Code, ruled in favor of Clarito upon finding Juan’s testimony
doubtful. On appeal, the NLRC reversed the Labor Arbiter holding that Article 4 applies only when the doubt involves
"implementation and interpretation" of the Labor Code provisions. The NLRC explained that the doubt may not
necessarily be resolved in favor of labor since this case involves the application of the Rules onEvidence, not the Labor
Code. Is the NLRC correct? Reasons. (3%)
III
Richie, a driver-mechanic, was recruited by Supreme Recruiters (SR) and its principal, Mideast Recruitment Agency (MRA), to
work in Qatar for a period of two (2) years. However, soon after the contract was approved by POEA, MRA advised SR to forego
Richie’s deployment because it had already hired another Filipino driver-mechanic, who had just completed his contract in Qatar.
Aggrieved, Richie filed with the NLRC a complaint against SR and MRA for damages corresponding to his two years’ salary under
the POEA-approved contract.
SR and MRA traversed Richie’s complaint, raising the following arguments:
a. The Labor Arbiter has no jurisdiction over the case; (2%)
b. Because Richie was not able to leave for Qatar, no employer-employee relationship was established between them; (2%)
and
c. Even assuming that they are liable, their liability would, at most, be equivalent to Richie’s salary for only six (6) months,
not two years. (3%).
Rule on the validity of the foregoing arguments with reasons.
IV
Diosdado, a carpenter, was hired by Building Industries Corporation (BIC), and assigned to build a small house in Alabang. His
contract of employment specifically referred to him as a "project employee," although it did not provide any particular date of
completion of the project.
Is the completion of the house a valid cause for the termination of Diosdado’s employment? If so, what are the due process
requirements that the BIC must satisfy? If not, why not? (3%)
V
a. Baldo was dismissed from employment for having beenabsent without leave (AWOL) for eight (8) months. It turned
outthat the reason for his absence was his incarceration after he was mistaken as his neighbor’s killer. Eventually acquitted
 31

and released from jail, Baldo returned to his employer and demanded reinstatement and full backwages. Is Baldo entitled to
reinstatement and backwages? Explain your answer. (3%)
b. Domingo, a bus conductor of San Juan Transportation Company, intentionally did not issue a ticket to a female passenger,
Kim, his long-time crush. As a result, Domingo was dismissed from employment for fraud or willful breach of trust.
Domingo contests his dismissal, claiming that he is not a confidential employee and, therefore, cannot be dismissed from
the service for breach of trust. Is Domingo correct? Reasons. (2%)
VI
Albert, a 40-year old employer, asked his domestic helper, Inday, to give him a private massage. When Inday refused, Albert
showed her Article 141 of the Labor Code, which says that one of the duties of a domestic helper is to minister to the employer’s
personal comfort and convenience.
a. Is Inday’s refusal tenable? Explain. (3%)
b. Distinguish briefly, but clearly, a "househelper" from a "homeworker." (2%)
VII
Johnny is the duly elected President and principal union organizer of the Nagkakaisang Manggagawa ng Manila Restaurant
(NMMR), a legitimate labor organization. He was unceremoniously dismissed by management for spending virtually 95% of his
working hours in union activities. On the same day Johnny received the notice of termination, the labor union went on strike.
Management filed an action to declare the strike illegal, contending that:
a. The union did not observe the "cooling-off period" mandated by the Labor Code; (2%) and
b. The union went on strike without complying with the strike-vote requirement under the Labor Code. (2%)
Rule on the foregoing contentions with reasons.
c. The Labor Arbiter found management guilty of unfair labor practice for the unlawful dismissal of Johnny. The decision
became final. Thereafter, the NMMR filed a criminal case against the Manager of Manila Restaurant. Would the Labor
Arbiter’s finding be sufficient to secure the Manager’s conviction? Why or why not? (2%)
VIII
Alexander, a security guard of Jaguar Security Agency (JSA), could not be given any assignment because no client would accept
him. He had a face only a mother could love. After six (6) months of being on "floating" status, Alexander sued JSA for
constructive dismissal. The Labor Arbiter upheld Alexander’s claim of constructive dismissal and ordered JSA to immediately
reinstate Alexander. JSA appealed the decision to the NLRC. Alexander sought immediate enforcement of the reinstatement order
while the appeal was pending.
JSA hires you as lawyer, and seeks your advice on the following:
a. Because JSA has no client who would accept Alexander, can it still be compelled to reinstate him pending appeal even if it
has posted an appeal bond? (2%)
b. Can the order of reinstatement be immediately enforced in the absence of a motion for the issuance of a writ of execution?
(2%)
c. If the order of reinstatement is being enforced, what should JSA do in order to prevent reinstatement? (2%)
Explain your answers.
IX
a. What is wage distortion? Can a labor union invoke wage distortion as a valid ground to go on strike? Explain. (2%)
b. What procedural remedies are open to workers who seek correction of wage distortion? (2%)
X
a. State briefly the compulsory coverage of the Government Service Insurance Act. (2%)
b. Can a member of a cooperative be deemed an employee for purposes of compulsory coverage under the Social Security
Act? Explain. (2%)

PART II
XI
TRUE or FALSE. Answer TRUE if the statement is true, or FALSE if the statement is false. Explain your answer in not more than
two (2) sentences. (5%)
a. Seafarers who have worked for twenty (20) years on board the same vessel are regular employees.
b. Employment of children below fifteen (15) years of age in any public or private establishment is absolutely prohibited.
c. Government employees have the right to organize and join concerted mass actions without incurring administrative
liability.
d. A waiver of the right to claim overtime pay is contrary to law.
e. Agency fees cannot be collected from a non-union member in the absence of a written authorization signed by the worker
concerned.
XII
In her State of the Nation Address, the President stressed the need to provide an investor-friendly business environment so that the
country can compete in the global economy that now suffers from a crisis bordering on recession. Responding to the call, Congress
passed two innovative legislative measures, namely: (1) a law abolishing the security of tenure clause in the Labor Code; and (2) a
law allowing contractualization in all areas needed in the employer’s business operations. However, to soften the impact of these
new measures, the law requires that all employers shall obtain mandatory unemployment insurance coverage for all their
employees.
The constitutionality of the two (2) laws is challenged in court. As judge, how will you rule? (5%)
XIII
 32

Atty. Renan, a CPA-lawyer and Managing Partner of an accounting firm, conducted the orientation seminar for newly-hired
employees of the firm, among them, Miss Maganda. After the seminar, Renan requested Maganda to stay, purportedly to discuss
some work assignment. Left alone in the training room, Renan asked Maganda to go out with him for dinner and ballroom dancing.
Thereafter, he persuaded her to accompany him to the mountain highway in Antipolo for sight-seeing. During all these, Renan told
Maganda that most, if not all, of the lady supervisors in the firm are where they are now, in very productive and lucrative posts,
because of his favorable endorsement.
a. Did Renan commit acts of sexual harassment in a work- related or employment environment? Reasons. (3%)
b. The lady supervisors in the firm, slighted by Renan’s revelations about them, succeeded in having him expelled from the
firm. Renan then filed with the Arbitration Branch of the NLRC an illegal dismissal case with claims for damages against
the firm. Will the case prosper? Reasons. (2%)
XIV
Jolli-Mac Restaurant Company (Jolli-Mac) owns and operates the largest food chain in the country. It engaged Matiyaga Manpower
Services, Inc. (MMSI), a job contractor registered with the Department of Labor and Employment, to provide its restaurants the
necessary personnel, consisting of cashiers, motorcycle delivery boys and food servers, in its operations. The Service Agreement
warrants, among others, that MMSI has a paid- up capital of P2,000,000.00; that it would train and determine the qualification and
fitness of all personnel to be assigned to Jolli- Mac; that it would provide these personnel with proper Jolli-Mac uniforms; and that
it is exclusively responsible to these personnel for their respective salaries and all other mandatory statutory benefits.
After the contract was signed, it was revealed, based on research conducted, that MMSI had no other clients except Jolli- Mac, and
one of its major owners was a member of the Board of Directors of Jolli-Mac.
a. Is the Service Agreement between Jolli-Mac and MMSI legal and valid? Why or why not? (3%)
b. If the cashiers, delivery boys and food servers are not paid their lawful salaries, including overtime pay, holiday pay, 13th
month pay, and service incentive leave pay, against whom may these workers file their claims? Explain. (2%)
XV
Among the 400 regular rank-and-file workers of MNO Company, a certification election was ordered conducted by the Med-Arbiter
of the Region. The contending parties obtained the following votes:
1. Union A - 70
2. Union B - 71
3. Union C - 42
4. Union D - 33
5. No union - 180
6. Spoiled votes - 4
There were no objections or challenges raised by any party on the results of the election.
a. Can Union B be certified as the sole and exclusive collective bargaining agent among the rank-and-file workers of MNO
Company considering that it garnered the highest number of votes among the contending unions? Why or why not? (3%)
b. May the management or lawyer of MNO Company legally ask for the absolute termination of the certification election
proceedings because 180 of the workers --- a clear plurality of the voters --- have chosen not to be represented by any
union? Reasons. (3%)
c. If you were the duly designated election officer in this case, what would you do to effectively achieve the purpose of
certification election proceedings? Discuss. (3%)
XVI
The Company and Triple-X Union, the certified bargaining agent of rank-and-file employees, entered into a Collective Bargaining
Agreement (CBA) effective for the period January 1, 2002 to December 31, 2007.
For the 4th and 5th years of the CBA, the significant
improvements in wages and other benefits obtained by the Union were:
1) Salary increases of P1,000 and P1,200 monthly, effective January 1, 2006 and January 1, 2007, respectively;
2) Vacation Leave and Sick Leave were adjusted from 12 days to 15 days annually for each employee;
3) Medical subsidy of P3,000 per year for the purchase of medicines and hospitalization assistance of P10,000 per year for
actual hospital confinement;
4) Rice Subsidy of P600 per month, provided the employee has worked for at least 20 days within the particular month;
and
5) Birthday Leave with Pay and Birthday Gift of P1,500.
As early as October 2007, the Company and the Union started negotiations to renew the CBA. Despite mutual good faith and
earnest efforts, they could not agree. However, no union filed a petition for certification election during the freedom period. On
March 30, 2008, no CBA had been concluded. Management learned that the Union would declare a bargaining deadlock on the next
scheduled bargaining meeting.
As expected, on April 3, 2008, the Union declared a deadlock. In the afternoon of the same day, management issued a formal
announcement in writing, posted on the bulletin board, that due to the CBA expiration on December 31, 2007, all fringe benefits
contained therein are considered withdrawn and can no longer be implemented, effective immediately.
a. When was the "freedom period" referred to in the foregoing narration of facts? Explain. (2%)
b. After April 3, 2008, will a petition for certification election filed by another legitimate labor union representing the rank-
and-file employees legally prosper? Reasons. (3%)
c. Is management’s withdrawal of the fringe benefits valid?
Reasons. (2%)
d. If you were the lawyer for the union, what legal recourse or action would you advise? Reasons. (3%)
XVII
 33

Alfredo was dismissed by management for serious misconduct. He filed suit for illegal dismissal, alleging that although there may
be just cause, he was not afforded due process by management prior to his termination. He demands reinstatement with full
backwages.
a. What are the twin requirements of due process which the employer must observe in terminating or dismissing an
employee? Explain. (3%)
b. Is Alfredo entitled to reinstatement and full backwages? Why or why not? (3%)
XVIII
a. Cite four (4) instances when an illegally dismissed employee may be awarded separation pay in lieu of reinstatement. (3%)
b. Explain the impact of the union security clause to the employees’ right to security of tenure. (2%)
-I-
a. Explain the automatic renewal clause of collective bargaining agreements. (3%)
b. Explain the extent of the workers right to participate in policy and decision-making process as provided under Article XIII,
Section 3 of the Philippine Constitution. Does it include membership in the Board of Directors of a corporation? (3%)
- II -
a. What issues or disputes may be the subject of voluntary arbiration under the Labor Code? (4%)
b. Can a dispute falling within the exclusive jurisdiction of the Labor Arbiter be submitted to voluntary arbiration? Why or
why not? (3%)
c. Can a dispute falling within the jurisdiction of a voluntary arbitrator be submitted to compulsory arbitration? Why or why
not? (3%)
- III -
Savoy Department Store (SDS) adopted a policy of hiring salesladies on five-month cycles. At the end of a saleslady's five-month
term, another person is hired as replacement. Salesladies attend to store customers, were SDS uniforms, report at specified hours,
and are subject to SDS workplace rules and regulations. Those who refuse the 5-month employment contract are not hired.
The day after expiration of her 5-month engagement, Lina wore her SDS white and blue uniform and reported for work but was
denied entry into the store premises. Agitated, she went on a hunger strike and stationed herself in front of one of the gates of SDS.
Soon thereafter, other employees whose 5-month term had also elapsed, joined Lina's hunger strike.
a. Lina and 20 other saleladies filed a complaint for illegal dismissal, conteding that they are SDS regular employees as they
performed activities usually necessary or desirable in the usual business or trade of SDS and thus, their constitutional right
to security of tenure was violated when they were dismissed without valid, just or authorized cause. SDS, in defense,
argued that Lina, et al. Agreed - prior to engagement - to a fixed period employment and thus waived their right to a full-
term tenure. Decide the dispute. (4%)
b. The owner of SDS considered the hunger strike staged by Lina, et al.., an eyesore and disruptive of SDS business. He
wrote the Secretary of Labor a letter asking him to assume jurisdiction over the dispute and enjoin the hunger "strike".
What answer will you give if you were the Secretary of Labor? (3%)
c. Assume that no fixed-term worker complained, yet in a routine inspection a labor inspector of the Regional Office of the
Labor Code's security of tenure provisions and recommended to the Regional Director the issuance a compliance order.
The Regional Director adopted the recommendation and issued a compliance order. Is the compliance order valid? Explain
your answer. (3%)
- IV -
Super Comfort Hotel employed a regular pool of "extra waiters" who are called or asked to report for duty when the Hotel's volume
of business is beyond the capacity of the regularly employed waiters to undertake. Pedro has been an "extra waiter" for more than
10 years. He is also called upon to work on weekends, on holidays and when there are big affairs at the hotel.
What is Pedro's status as an employee under the Labor Code? Why? Explain your answer fully. (6%)
-V-
The Pizza Corporation (PizCorp) and Ready Supply Cooperative (RSC) entered into a "service agreement" where RSC in
consideration of service fees to be paid by PizCorp's will exclusively supply PizCorp with a group of RSC motorcycle-owning
cooperative members who willhenceforth perform PizCorp's pizza delivery service. RSC assumes under the agreement --- full
obligation for the payment of the salaries and other statutory monetary benefits of its members deployed to PizCorp. The parties
also stipulated that there shall be no employer-employee relationship between PizCorp and the RSC members. However, if PizCorp
is materially prejudiced by any act of the delivery impose disciplinary sanctions on, including the power to dismiss, the erring RSC
member/s.
a. Is the contractual stipulation that there is no employer-employee relationship binding on labor officials? Why? Explain
fully. (3%)
b. Based on the test/s for employer-employee relationship, determine the issue of who is the employer of the RSC members.
(4%)
c. Assume that RSC has a paid-up capitalization of P1,000.000.00 Is RSC engaged in "labor only" contracting, permissible
job contracting or simply, recruitment? (3%)
- VI -
On the day that the Union could validly declare a strike, the Secretary of Labor issued an order assuming jurisdiction over the
dispute and enjoining the strike, or if one has commenced, ordering the striking workers to immediately return to work. The return-
to-work order required the employees to return to work within twenty-four hours and was served at 8 a.m. of the day the strike was
to start. The order at the same time directed the Company to accept all employees under the same terms and conditions of
employment prior to the work stoppage. The Union members did not return to work on the day the Secretary's assumption order was
served nor on the next day; instead, they held a continuing protest rally against the company's alleged unfair labor practices.
Because of the accompanying picket, some of the employees who wanted to return to work failed to do so. On the 3rd day, the
 34

workers reported for work, claiming that they do so in compliance with the Secretary's return-to-work order that binds them as well
as the Company. The Company, however, refused to admit them back sionce they had violated the Secretary's return-to-work order
and are now considered to have lost their employment status.
The Union officers and members filed a complaint for illegal dismissal arguing that there was no strike but a protest rally which is a
valid exercise of the workers constitutional right to peaceable assembly and freemdom of expression. Hence, there was no basis for
the termination of their employment.
You are the Labor Arbiter to whom the case was raffled. Decide, ruling on the following issues:
a. Was there a strike? (4%)
b. Were the employees simply exercising their constitutional right to petition for redness of their grievances? (3%)
c. What are the consequences, if any, of the acts of the employees? (3%)
- VII -
Tito Paciencioso is an employee of a foundry shop in Malabon, Metro Manila. He is barely able to make ends meet with his salary
of P4,000.00 a month. One day, he asked his employer to stop deducting from his salary his SSS monthly contribution, reasoning
out that he is waiving his social security coverage.
If you were Tito's employer, would you grant his request? Why? (6%)
- VIII -
Carol de la Cruz is the secretary of the proprietor of an auto dealership in quezon City. She resides in Caloocan City. Her office
hours start at 8 a.m. and end at 5 p.m. On July 30, 2008, at 7 a.m. while waiting for public transport at Rizal Avenue Extension as
has been her routine, she was sideswiped by a speeding taxicab resulting in her death. The father of Carol filed a claim for
employee's compensation with the Social Security System. Will the claim prosper? Why? (6%)
- IX -
Assume that in Problem 5, Mario, an RSC member disgusted with the non-payment of his night shift differential and overtime pay,
filed a complaint with the DOLE Regional Office against RSC and PizCorp. After inspection, it was found that indeed Mario was
not getting his correct differential and overtime pay and that he was declared an SSS member (so that no premiums for SSS
membership were ever remitted). On this basis, the Regional Director issued a compliance order holding PizCorp and RSC
solidarily liable for the payment of the correct differential and overtime pay and ordering PizCorp to report Mario for membership
with SSS and remit overdue SSS premiums.
Who has the obligation to report the RSC members for membership with the SSS, with the concomitant obligation to remit SSS
premiums? Why? (6%)
-X-
Pepe Santos was an international flight steward of Flysafe Airlines. Under FSA's Cabin Crew Administration Manual, Santos must
maintain, given his height and body frame, a weight of 150 to 170 pounds.
After 5 years as a flight steward, Santos began struggling with his weight; he weighed 200 lbs., 30 pounds over the prescribed
maximum weight. The Airline gave him a one-year period to attain the prescribed weight, and enrolled him in several wieght
reduction programs. He consistently failed to meet his target. He was given a 6-month grace period, after which he still failed to
meet the weight limit. FSC thus sent him a Notice of Administrative Charge for violation of company standards on weight
requirements. He stated in his answer that, for medical reasons, he cannot have a rapid weight loss. A clarificatory hearing was held
where Santos fully explained his predicament. The explanation did not satisfy FSA and so it decided to terminate Santos's service
for violation of company standards.
Santos filed a complaint for illegal dismissal, arguing that the company's weight requirement policy is unreasonable and that his
case is not a disciplinary but a medical issue (as one gets older, the natural tendency is to grow heavier). FSA defended its policy as
a valid exercise of management prerogative and from the point of view of passenger safety and extraordinarydiligence required by
law of common carriers; it also posited that Santos failure to achieve his ideal weight constituted gross and habitual neglect of duty,
as well as willful disobedience to lawful employer orders. The Labor Arbiter found the dismissal illegal for there was neither gross
and habitual neglect of duty nor willful disobedience.
Is the Labor Arbiter correct? Why or why not? Explain fully. (6%)
- XI -
Complaints had worked five (5) years as waitresses in a cocktail lounge owned by the respondent. They did not receive any salary
directly from the respondent but shared in all service charges collected for food and drinks to the extent of 75%. With respondent's
prior permission, they could sit with and entertain guest inside the establishment and appropriate for themselves the tips given by
guests. After five (5) years, the complaints individual shares in the collected service charges dipped to below minimum wage level
as a consequence of the lounge's marked business decline. Thereupon, complaints asked respondent to increase their share in the
collected service charges to 85% or the minimun wage level, whichever is higher.
Respondent terminated the services of the complainants who countered by filing a consolidated complaint for unlawful dismissal,
with prayer for 85% of the collected services or the minimum wage for the appropriate periods, whichever is higher. Decide. (6%)
- XII -
Arnaldo, President of "Bisig" Union in Femwear Company, readied himself to leave exactly at 5:00 p.m. which was the end of his
normal shift to be able to sed off his wife who was scheduled to leave for overseas. However, the General Manager required him to
render overtime work to meet the company's export quota. Arnaldo begged off, explaining to the General Manager that he had to
see off his wife who was leaving to work abroad. The company dismissed Arnaldo for insubordination. He filed a case for illegal
dismissal. Decide (6%)
- XIII -
The rank-and-file union staged a strike in the company premises which caused the disruption of business operations. The
supervisors union of the same company filed a money claim for unpaid salaries for the duration of the strike, arguing that the
supervisors' failure to report for work was not attributable to them. The company contended that it was equally faultless, for the
 35

strike was not the direct consequence of any lockout or unfair labor practice. May the company be held liable for the salaries of the
supervisor? Decide (6%)
- XIV -
"Puwersa", a labor federation, after having won in a certification election held in the company premises, sent a letter to respondent
company reminding it of its obligation to recognize the local union. Respondent company replied that through it is willing, the rank-
and-file employees had already lost interest in joining the local union as they had dissolved it. "Puwersa" argued that since it won in
a certification election, it can validly perform its function as a bargaining agent and represent the rank-and-file employees despite
the union's dissolution.
Is the argument of "Puwersa" tenable? Decide with reasons. (6%)
- NOTHING FOLLOWS -
-I-
(5 Points)
1.
a. What is the principle of codetermination?
b. What, if any, is the basis under the Constitution for adopting it?
- II -
(5 Points)
2.
a. Discuss the statutory restrictions on the employment of minors?
b. Maya househelp be assigned to non-household work?
- III -
(5 Points)
3.
a. Discuss the types of illegal recruitment under the Labor Code.
b. In initiating actions against alleged illegal recruiters, may the Secretary of Labor and Employment issue search and arrest
warrants?
- IV -
(5 Points)
4. Explain
a. The Globe Doctrine.
b. The Community of Interest Rule.
-V-
(5 Points)
May non-lawyers appear before the NLRC or Labor Arbiter? May they charge attorney's fee for such appearance provided it is
charged against union funds and in an amount freely agreed upon by the parties? Discuss fully.
- VI -
(5 Points)
Procedurally, how do you stay a decision, award or order of the Labor Arbiter? Discuss fully.
- VII -
(5 Points)
7.
a. May the NLRC or the courts take jurisdictional cognizance over compromise agreements/settlements involving labor
matters?
b. How sacrosanct are statements/data made at conciliation proceedings in the Department of Labor and Employment? What
is the philosophy behind your answer?
- VIII -
(5 Points)
Discuss in full the jurisdiction over the civil and criminal aspects of a case involving an unfair labor practice for which a charge is
pending with the Department of Labor and Employment.
- IX -
(5 Points)
Discuss the legal requirements of a valid strike.
-X-
(5 Points)
Discuss briefly the instances when non-compliance by the employer with a reinstatement order of an illegally dismissed employee
is allowed.
- XI -
(5 Points)
11.
a. A rule, when is retirement due?
b. When is retirement due for underground miners?
- XII -
(5 Points)
12.
a. How do you execute a labor judgment which, on appeal, had become final and executory? Discuss fully.
 36

b. Cite two instances when an order of execution may be appealed.

- XIII -
(5 Points)
May a decision of the Labor Arbiter which has become final and executory be novated through a compromise agreement of the
parties?
- XIV -
(5 Points)
AB, single and living-in with CD (a married man), is pregnant with her fifth child. She applied for maternity leave but her employer
refused the application because she is not married. Who is right? Decide.
- XV -
(5 Points)
Some officers and rank-and-file members of the union staged an illegal strike. Their employer wants all the strikers dismissed. As
the lawyer, what will you advise the employer? Discuss fully.
- XVI -
(5 Points)
A carpenter is employed by a private university in Manila. Is the carpenter a regular or a casual employee? Discuss fully.
- XVII -
(5 Points)
P.D. 1508 requires the submission of disputes before the Barangay Lupong Tagapamayapa prior to the filing of cases with the
courts or other government bodies. May this decree be used to defeat a labor case filed directly with the Labor Arbiter? Discuss
fully.
- XVIII -
(5 Points)
Inday was employed by mining company X to perform laundry service at its staffhouse. While attending to her assigned task, she
slipped and hit her back on a stone. Unable to continue with her work, she was permitted to go on leave for medication, but
thereafter she was not allowed to return to work. She filed a complaint for illegal dismissal but her employer X contended that Inday
was not a regular employee but a mere househelp. Decide.
- XIX -
(5 Points)
Cite five grounds for disciplinary action by the Philippine Overseas Employment Administration (POEA) against overseas workers.
- XX -
(5 Points)
AB, a non-resident American, seeks entry to the country to work as Vice-President of a local telecommunications company. You are
with the Department of Labor and Employment (DOLE). What permit, if any, can the DOLE issue so that AB can assume as Vice-
President in the telecommunications company? Discuss fully.
NOTHING FOLLOWS
-I-
1. What is the purpose of labor legislation? 2.5%
2. What is the concept of liberal approach in interpreting the Labor Code and its Implementing Rules and Regulations in
favor of labor? 2.5%
3. What property right is conferred upon an employee once there is an employer-employee relationship? Discuss briefly. 5%
- II -
Wonder Travel and Tours Agency (WTTA) is a well known travel agency and an authorized sales agent of the Philippine Air Lines.
Since majority of its passengers are overseas workers, WTTA applied for a license for recruitment and placement activities. It stated
in i.ts application that its purpose is not for profit but to help Filipinos find employment abroad.
Should the application be approved? 5%
- III -
Can an overseas worker refuse to remit his earnings to his dependents and deposit the same in the country where he works to gain
more interests? Explain. 5%
- IV -
For humanitarian reasons, a bank hired several handicapped workers to count and sort out currencies. Their employment contract
was for six (6) months. The bank terminated their employment on the ground that their contract has expired prompting them to file
with the Labor Arbiter a complaint for illegal dismissal. Will their action prosper? 5%
-V-
Can an employer and an employee enter into an agreement reducing or increasing the minimum percentage provided for night
differential pay, overtime pay, and premium pay? 5%
- VI -
1. When is there a wage distortion ?
2. How should a wage distortion be settled?
3. Can the issue of wage distortion be raised in a notice of strike?Explain. 10%
- VII -
Inday was employed by Herrera Home Improvements, Inc. (Herrera Home) as interior decorator. During the first year of her
employment, she did not report for work for one month. Hence, her employer dismissed her from the service. She filed with the
Labor Arbiter a complaint for illegal dismissal alleging she did not abandon her work and that in terminating her employment,
Herrera Home deprived her of her right to due process. She thus prayed that she be reinstated to her position.
 37

Inday hired you as her counsel. In preparing the position paper to be submitted to the Labor Arbiter, explain the standards of due
process which should have been observed by Herrera Home in terminating your client's employment. 5%
- VIII -
The modes of determining an exclusive bargaining agreement are:
a. voluntary recognition
b. certification election
c. consent election
Explain briefly how they differ from one another. 5%
- IX -
Armstrong Corporation, a foreign corporation, intends to engage in the exploration of Philippine natural resources. Mr. Antonio
Reyes offered the forest land he owns to the president of the corporation. May Armstrong Corporation enter into a financial and
technical assistance agreement (FTAA) with Mr. Reyes to explore, develop, and utilize the land? Explain. 5%
-X-
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.
1. As counsel for the corporation, what steps will you take prior to its closure? 2.5%
2. Are the employees entitled to separation pay? 2.5%
If the reason for the closure is due to old age of the brothers and sisters:
1. Is the closure allowed by law? 2.5%
2. Are the employees entitled to separation benefits? 2.5%
- XI -
As a result of bargaining deadlock between ROSE Corporation and ROSE Employees Union, its members staged a strike. During
the strike, several employees committed illegal acts. The company refused to give in to the union's demands. Eventually, its
members informed the company of their intention to return to work. 10%
1. Can ROSE Corporation refuse to admit all the strikers?
2. Assuming the company admits all the strikers, can it later on dismiss those employees who committed illegal acts?
3. If due to the prolonged strike, ROSE Corporation hired replacements, can it refuse to admit the replaced strikers?
- XII -
During their probationary employment, eight (8) employees were berated and insulted by their supervisor. In protest, they walked
out. The supervisor shouted at them to go home and never to report back to work. Later, the personnel manager required them to
explain why they should not be dismissed from employment for abandonment and failure to qualify for the positions applied for .
They filed a complaint for illegal dismissal against their employer.
As a Labor Arbiter, how will you resolve the case? 10%
- XIII -
1. Can a "no-union" win in a certification election? 2.5%
2. When does a "run-off" election occur? 2.5%
- XIV -
Determine whether the following minors should be prohibited from being hired and from performing their respective duties
indicated hereunder: 5%
1. A 17-year old boy working as a miner at the Walwaldi Mining Corporation.
2. An 11-year old boy who is an accomplished singer and performer in different parts of the country.
3. A 15-year old girl working as a library assistant in a girls' high school.
4. A 16-year old girl working as a model promoting alcoholic beverages.
5. A 17-year old boy working as a dealer in a casino.
- XV -
As a condition for her employment, Josephine signed an agreement with her employer that she will not get married, otherwise, she
will be considered resigned or separated from the service.
Josephine got married. She asked Owen, the personnel manager, if the company can reconsider the agreement. He told Josephine he
can do something about it, insinuating some sexual favors. She complained to higher authorities but to no avail. She hires you as her
counsel. What action or actions will you take? Explain. 5%
NOTHING FOLLOWS