LAB BEQs 2011-2012

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9. "oth apprenticeship and learnership are government

 programs to provide practical on-the-6ob training to new

wor+ers. :ow do they differ with respect to period of 

training.

A. 8n highly technical industries, apprenticeship can eceed 9

months; learnership can eceed one year.

". Apprenticeship cannot eceed 9 months; learnership can.

+. A""renticeshi" shall not eceed si months- while

learnershi" shall not eceed three months.

4. The law lets the employer and the apprentice agree on the

apprenticeship period; but the law fies learnership period at

si months in non-technical industries.

tore decided to contract out the security

services that its 1? direct-hired full-time security guards

 provided. The company paid the men separation pay. With this

move, the >tore was able to cut costs and secure efficient

outside professional security services. "ut the terminated

security guards complained of illegal dismissal, claiming that

regular 6obs such as theirs could not be contracted out. Will

their complaint prosper

A. o. the management has the right to contract o!t /os to

sec!re efficient and economical o"erations.

". #es. They should be reinstated or absorbed by the securityagency as its employees.

C. !o. They are estopped from demanding reinstatement after 

receiving their separation pay.

4. #es. The company cannot contract out regular 6obs such as

they had.

@. Although both are training programs, apprenticeship is

different from learnership in that  

A. a learner may be paid %*B less than the legal minimum

wage while an apprentice is entitled to the minimum wage.

". apprenticeship has to be covered by a written agreement; no

such formality is needed in learnership.

+. in learnershi", the em"loyer !nderta$es to ma$e th

learner a reg!lar em"loyee- in a""renticeshi", no s!c

!nderta$ing.

4. a learner is deemed a regular employee if terminate

without his fault within one month of training; an apprentic

attains employment status after si months of apprenticeship.

. A golf and country club outsourced the 6obs in its food an

 beverage department and offered the affected employees a

early retirement pac+age of 10 month’s pay for each year o

service. The employees who accepted the pac+age eecute

$uitclaims. Thereafter, employees of a servic

contractor performed their 6obs. >ubse$uently, th

management contracted with other 6ob contractors to provid

other services li+e the maintenance of physical facilities, go

operations, and administrative and support services. >ome

the separated employees who signed $uitclaims later file

complaints for illegal dismissal.

Were they validly dismissed

A. Yes. he /os were gi#en to /o contractors, not to lao

only contractors, and the dismissed em"loyees recei#e

higher se"aration "ay than the law re(!ired.

". !o. The outsourcing and the employment termination wer

invalid since the management failed to show that it suffere

severe financial losses.

C. !o. >ince the outsourcing of 6obs in several departmen

entailed the separation of many employees, the club needed th

>ecretary of (abor’s approval of its actions.

4. !o. >ince the outsourced 6obs were held by old-time regul

employees, it was illegal for the club to terminate them an

give the 6obs to others.

1?. >ampaguita Company wants to embar+ on a retrenchmen

 program in view of declining sales. 8t identified fiv

employees that it needed to separate. The human resourc

manager seems to recall that she has to give the five employe

and the 4'(D a ?-day notice but she feels that she can give

shorter notice. What will you advise her

A. 8nstead of giving a ?-day notice, she can 6ust give a ?-da

advanced salary and ma+e the separation effectiv

immediately.

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". >o long as she gave 4'(D a ?-day prior notice, she can

give the employees a shorter notice.

+. he '0day ad#ance notice to the em"loyee and the

DOL cannot e shortened e#en with a '0day ad#ance

salary.

4. >he can give a shorter notice if the retrenchment is due to

severe and substantial losses.

11. Ender the (abor Code, its provisions on wor+ing

conditions, including the eight-hour wor+ day rule, do not

apply to domestic helpers. 4oes it follow from this that a

domestic helper’s wor+day is not limited by law

A. o, since a domestic hel"er cannot e re(!ired to wor$ 

more than ten ho!rs a day.

". #es, since a domestic helper’s hours of wor+ depend on the

need of the household he or she wor+s for.

C. !o, because a domestic helper is legally entitled to overtime

 pay after ten hours of wor+.

4. #es, a domestic helper may be re$uired to wor+ twelve

hours a day or beyond.

1%. Ender the (abor Code on Wor+ing Conditions and Fest&eriods, 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 reg!lar com"any em"loyee.

C. a family member.

4. domestic helper.

1. The union filed a notice of stri+e due to a bargaining

deadloc+. "ut, because the >ecretary of (abor assumed

 6urisdiction over the dispute, the stri+e was averted.

 )eanwhile, the employer observed that the union engaged in a

wor+ slowdown. Contending that the slowdown was in fact an

illegal stri+e, the employer dismissed all the union officers.

The union president complained of illegal dismissal becaus

the employer should first prove his part in the slowdown.

the union president correct

A. #es, since the employer gave him no notice of its findin

that there was a slowdown.

B. Yes. he em"loyer m!st "ro#e the !nion "resident’s "a

in slowdown.

C. !o. When a stri+e is illegal, the management has the right

dismiss the union president.

4. !o. As the union president, it may be assumed that he le

the slowdown.

15. The eisting collective bargaining unit in Company

includes some fifty secretaries2 and cler+s2 who routine

record and monitor reports re$uired by their department head

 "elieving that these secretaries and cler+s should not be unio

members because of the confidential nature of their wor+, th

management discontinued deducting union dues from the

salaries. 8s the management’s action legal

A. !o, only managers are prohibited from 6oining unions; th

law does not bar confidential employees2 from 6oining union

B. o, )confidential em"loyees* are those who assi

"ersons who form!late, determine, or enforce managemen

"olicies in the field of laor relations.

C. #es, secretaries and cler+s of company eecutives a

etensions of the management and, therefore, should not 6oi

the union.

4. !o, confidential2 employees are those who hand

eecutive records and payroll or serve as eecutive secretarie

of top-level managers.

1*. Hose (ovina had been member of the board of directors an

Decutive =ice &resident of >an Hose Corporation for 1% year

8n %??@, the >an Hose stoc+holders did not elect him to th

 board of directors nor did the board reappoint him as Decutiv

=ice &resident. :e filed an illegal dismissal complaint with

(abor Arbiter. Contending that the (abor Arbiter ha

no 6urisdiction over the case since (ovina was not a

employee, the company filed a motion to dismiss. >hould th

motion be granted

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A. o, since a ho!sehel"er can e dismissed only for /!st

ca!se or when his agreed "eriod of em"loyment ends.

". #es, since it is the employer who determines the period of 

his service.

C. #es, since a househelper can be dismissed with or without

 6ust cause.

4. !o, since a househelper can be dismissed only for 6ust

cause, ecept when he has been employed for a definite period

not eceeding one year.

%1. Feach-All, a mar+eting firm with operating capital of 

&1??,???, supplied sales persons to pharmaceutical companies

to promote their products in hospitals and doctors’ offices.

 Feach-All trained these sales persons in the art of selling but

it is the client companies that taught them the pharmacological

$ualities of their products. Feach-All’s roving supervisors

monitored, assessed, and supervised their wor+ performance.

Feach-All directly paid their salaries out of contractor’s fees it

received. Ender the circumstances, can the sales persons

demand that they be absorbed as employees of the

 pharmaceutical firms

A. o, they are ReachAll’s em"loyees since it has control

o#er their wor$ "erformance.

". #es, since they receive training from the pharmaceutical

companies regarding the products they will promote.

C. !o, since they are bound by the agency agreement between

Feach-All and the pharmaceutical companies.

4. #es, since Feach-All does does not $ualify as independent

contractor- employer, its clients being the source of the

employees’ salaries.

%%. Decutive 'rder !o. 1@?, which protects government

employees, does !'T apply to high-level employees,2

namely,

A. presidential appointees.

". those performing policy-determining functions, ecluding

confidential employees and supervisors.

+. confidential em"loyees and those "erforming "olic

determining f!nctions.

4. elective officials.

%. 8n the case of a househelper, reinstatement is not a statutor

relief for un6ust dismissal because of the confidentiality of hor her 6ob. 8nstead, the househelper shall be paid

A. an indemnity e(!i#alent to 1% days’ "ay "l!

com"ensation already earned.

". a separation pay e$uivalent to one month’s pay per year o

service.

C. a separation pay e$uivalent to one-half month’s pay per ye

of service.

4. 1* days’ pay as indemnity plus wages lost from dismissal

finality of decision.

%5. The C"A for the period Hanuary %??< to 4ecember %??

granted the employees a &5? per day increase with th

understanding that it is creditable as compliance to any futu

wage order. >ubse$uently, the regional wage board increase

 by &%? the minimum wage in the employer’s area beginnin

Hanuary %??@. The management claims that the C"A increas

may be considered compliance even if the Wage 'rder itsesaid that C"A increase is not creditable as compliance to th

Wage 'rder.2 8s the management’s claim valid

A. Yes, since creditaility of the +BA increase is the fre

and delierate agreement and intention of the "arties.

". #es, since the Wage 'rder cannot pre6udice th

management’s vested interest in the provisions of the C"A.

C. !o, disallowing creditability of C"A pay increase is withi

the wage board’s authority.

4. !o, the C"A increase and the Wage 'rder are essential

different and are to be complied with separately.

%*. When an employee wor+s from @ a.m. to * p.m. on a leg

holiday falling on his rest day, which of the following formul

do you use to compute for his day’s wage on that day

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A. 3is reg!lar daily wage m!lti"lied y 2004 "l!s '04 of 

the 2004

". :is regular daily wage multiplied by %??B

C. :is regular daily wage plus %??B

4. :is daily regular wage

%9. The employees’ rights to organiKe and to bargain

collectively are means of eercising the broader right to

 participate in policy or decision-ma+ing processes. The

employees’ right to participate in policy and decision ma+ing

 processes is available

A. if a labor-management council eists.

". if a labor-management council does not eist.

C. if a union eists and it agrees to the creation of a labor-

management council.

D. whether or not a laormanagement co!ncil eists.

%yria, her place of wor+. :er death was no

wor+-related, it appearing that she had been murdere 8nsisting that she committed suicide, the employer an

the agency too+ no action to ascertain the cause of death an

treated the matter as a closed case.2 The wor+er’s family sue

 both the employer and the agency for moral and eempla

damages. )ay such damages be awarded

A. Yes, the agency and the em"loyer’s !ncaring attit!d

ma$es them liale for s!ch damages.

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". #es, but only the principal is liable for such damages since

the agency had nothing to do with Celia’s death.

C. !o, since her death is not at all wor+-related.

4. !o, since her death is not attributable to any act of the

agency or the employer.

%. When the employer or his representative hurls serious

insult on the honor or person of the employee, the law says that

the employee

A. may leave wor+ after at least a five-day notice to the

employer.

". may leave wor+ at any time and file for constructive

dismissal.

+. may lea#e wor$ witho!t gi#ing a '0day notice to the

em"loyer.

4. may abandon his 6ob at once.

. A sugar mill in (aguna, capitaliKed at &?? million,

suffered a &1?,???.?? loss last year. This year it dismissed

three young female employees who gave birth in the last three

years. 8n its termination report to 4'(D, the sugar mill gave

as reason for the dismissal retrenchment because of losses.2 4id it violate any law

A. Yes, the law on retrenchment, the s!gar mill’s loses not

eing s!stantial.

". #es, the law against violence committed on women and

children.

C. !o, ecept the natural law that calls for the protection and

support of women.

4. !o, but the management action confirms suspicion that

some companies avoid hiring women because of higher costs.

5. &iece rate employees2 are those who are paid by results or 

other non-time basis. As such they are !'T entitled to

overtime pay for wor+ done beyond eight hours if  

A. their wor+place is away from the company’s principal pla

of wor+.

". they fail to fill up time sheets.

C. the product pieces they do are not countable.

D. the "iece rate form!la accords with the la

de"artment’s a""ro#ed rates.

*. An employer may re$uire an employee to wor+ on th

employee’s rest day

A. to a#oid irre"arale loss to the em"loyer.

". only when there is a state of calamity.

C. provided he is paid an etra of at least *?B of his regula

rate.

4. sub6ect to %5-hour advance notice to the employee.

9. The >tate has a policy of promoting collective bargainin

and voluntary arbitration as modes of settling labor dispute

To this end, the voluntary arbitrator’s 6urisdiction has not bee

limited to interpretation and implementation of collectiv

 bargaining agreements and company personnel policies.

may etend to all other labor disputes,2 provided  

A. the etension does not cover cases of union busting.

B. the "arties agreed to s!ch etended /!risdiction.

C. the parties are allowed to appeal the voluntary arbitrator

decision.

4. the parties agreed in their C"A to broaden his 6urisdiction.

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A. !o, since &hilworld, the recruitment agency, is not the

employer liable for unpaid wages.

B. Yes, since the agency is e(!ally liale with the foreign

"rinci"al des"ite the termination of their contract etween

them.

C. #es, since the law ma+es the agency liable for the

 principal’s malicious refusal to pay )i+e’s salary.

4. !o, since )i+e did not get paid only after 4elta and

&hilworld terminated their contract.

@. )elissa, a coffee shop wor+er of * months, re$uested her 

employer for * days’ leave with pay to attend to the case that

she filed against her husband for physical assault two wee+s

earlier. )ay the employer deny her re$uest for leave with pay

A. #es, the reason being purely personal, approval depends on

the employer’s discretion and is without pay.

B. o, as #ictim of "hysical #iolence of her h!sand, she is

entitled to fi#e days "aid lea#e to attend to her action

against him.

C. !o, the employer must grant the re$uest but the leave will

 be without pay.

4. #es, since she is not yet a permanent employee.

. Luiel, a househelper in the Wilson household since %??9,

resigned from his 6ob for several reasons. 'ne reason was the

daily 1%-hour wor+day without any rest day. When he left his

 6ob he had unpaid wages totaling &1,*??.?? which his

employer refused to pay. :e wants to claim this amount

though he is not interested in getting bac+ his 6ob. Where

should he file his claim

A. :e should file his claim with the 4>W4, which will

eventually endorse it to the right agency.

". >ince he has no interest in reinstatement, he can file his

claim with the office of the regional director of the 4epartment

of (abor.

+. 3e sho!ld file his claim eceeding 5%,000.00 with the

office of the laor ariters, the regional aritrators

re"resenting the LR+.

4. :e should go to the Dmployee’s Compensatio

Commission.

5?. 7or labor, the Constitutionally adopted policy of promotin

social 6ustice in all phases of national development means  

A. the nationaliKation of the tools of production.

". the periodic eamination of laws for the common good.

+. the h!mani6ation of laws and e(!ali6ation of econom

forces.

4. the revision of laws to generate greater employment.

51. To avail himself of paternity leave with pay, when must th

male employee file his application for leave

A. Within one wee+ from the epected date of delivery by th

wife.

". !ot later than one wee+ after his wife’s delivery

miscarriage

+. 7ithin a reasonale time from the e"ected deli#er da

of his wife.

4. When a physician has already ascertained the date the wifwill give birth.

5%. The constitution promotes the principle of share

responsibility between wor+ers and employers, preferring th

settlement of disputes through

A. compulsory arbitration.

". collective bargaining.

+. #ol!ntary modes, s!ch as conciliation and mediation.

4. labor-management councils.

5. Which of the following is !'T a re$uisite for entitlemen

to paternity leave

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A. The employee is cohabiting with his wife when she gave

 birth or had a miscarriage.

B. he em"loyee is a reg!lar or "ermanent em"loyee.

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

4. The employee is lawfully married to his wife.

55. 'f the four grounds mentioned below, which one has been

 6udicially affirmed as 6ustification 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. he transfer deters the em"loyee from eercising his

right to selforgani6ation.

C. The transfer will greatly inconvenience the employee and

his family.

4. The transfer will result in additional housing and travel

epenses for the employee.

5*. 'f the four definitions below, which one does !'T fit the

definition of solo parent2 under the >olo &arents Welfare Act

A. >olo parenthood while the other parent serves sentence for 

at least one year.

". A woman who gives birth as a result of rape.

C. >olo parenthood due to death of spouse.

D. 8olo "arenthood where the s"o!se left for aroad and

fails to gi#e s!""ort for more than a year.

59. Albert and four others signed employment contracts with

Feign &ublishers from Hanuary 1 to )arch 1, %?11 to help

clear up encoding bac+logs. "y first wee+ of April %?11,

however, they remained at wor+. 'n Hune ? Feign’s manager 

notified them that their wor+ would end that day. 4o they have

valid reason to complain

A. !o, since fied term employment, to which they agreed,

allowed.

". #es, their 6ob was necessary and desirable to the employer

 business and, therefore, they are regular employees.

+. Yes, when they wor$ed eyond 9arch witho!t a

etended fied term em"loyment contract, they ecam

reg!lar em"loyees.

4. !o, since the -month etension is allowed in suc

employment.

5ecretary of (abor and Dmployment or his du

authoriKed representative, including labor regulations officershall have access to employer’s records and premises durin

wor+ hours. Why is this statement an inaccurate statement

the law

A. "ecause the power to inspect applies only to employ

records, not to the premises.

". "ecause only the >ecretary of (abor and Dmployment ha

the power to inspect, and such power cannot be delegated.

+. Beca!se the law allows ins"ection anytime of the day onight, not only d!ring wor$ ho!rs.

4. "ecause the power to inspect is already delegated to th

4'(D regional directors, not to labor regulations officers.

5. 8n industrial homewor+, the homewor+er does at his hom

the wor+ that his employer re$uires of him, using employe

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supplied materials. 8t differs from regular factory wor+ in the

sense that

A. the wor+ers are not allowed to form labor organiKations.

". the wor+ers’ pay is fied by informal agreement between the

wor+ers and their employer.

+. the wor$ers are !nder #ery little s!"er#ision in the"erformance or method of wor$.

4. the wor+ers are simply called homewor+ers,2 not

employees,2 hence not covered by the social security law.

*?. Which of the following grounds eempts an enterprise from

the service incentive leave law

A. he em"loyees already en/oy 1% days #acation lea#e with

"ay.

". The employer’s business has been suffering losses in the

 past three years.

C. The employer regularly employs seven employees or less.

4. The company is located in a special economic Kone.

*1. Which of the following acts is !'T considered unfair labor  practice /E(&

A. Festraining employees in the eercise of the right to self-

organiKation.

B. :nion’s interference with the em"loyee’s right to self

organi6ation.

C. Fefusal to bargain collectively with the employer.

4. Iross violation of the collective bargaining agreement bythe union.

*%. 8n computing for 1th month pay, "alagtas Company used

as basis both the employee’s regular base pay and the cash

value of his unused vacation and sic+ leaves. After two and a

half years, it announced that it had made a mista+e and was

discontinuing such practice. 8s the management action legal

 6ustified

A. #es, since 1th month pay should only be one-twelfth of th

regular pay.

B. o, since the erroneo!s com"!tation has ri"ened into a

estalished, non withdrawale "ractice.

C. #es, an error is not a deliberate decision, hence may b

rectified.

4. !o, employment benefits can be withdrawn only through

C"A negotiation.

*. Where the petition for a certification election in a

unorganiKed establishment is filed by a federation, it shall !'

 be re$uired to disclose the  

A. names of the local cha"ter’s officers and memers.

". names and addresses of the federation officers.

C. names and number of employees that initiated the unio

formation in the enterprise.

4. names of the employees that sought assistance from th

federation in creating the chapter.

*5. Ender the (imited &ortability law, funds from the I>8> an

the >>> maybe transferred for the benefit of a wor+er wh

transfers from one system to the other. 7or this purpos

overlapping periods of membership shall be

A. credited only once.

". credited in full.

C. proportionately reduced.

4. e$ually divided for the purpose of totaliKation.

**. 'f the four tests below, which is the most determinative o

the status of a legitimate contractor-employer

1

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A. The contractor performs activities not directly related to the

 principal’s main business.

". The contractor has substantial investments in tools,

e$uipment, and other devices.

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

wor+ers.

D. he contractor has direct control o#er the em"loyees’

manner and method of wor$ "erformance.

*9. G Company’s C"A grants each employee a 15th month

year-end bonus. "ecause the company is in financial difficulty,

its head wants to negotiate the discontinuance of such bonus.

Would such proposal violate the nondiminution rule2 in the

(abor Code

A. !o, but it will certainly amount to negotiating in bad faith.

". #es since the rule is that benefits already granted in a C"A

cannot be withdrawn or reduced.

+. o, since the law does not "rohiit a negotiated

discontin!ance of a +BA enefit.

4. #es, since such discontinuance will cancel the en6oyment of 

eisting benefits.

*till th

negotiation proceeded. At the net session, the managemen

 panel again ob6ected to the presence of the union counsel as

non-observance of the no outsider2 rule. The negotiatio

nonetheless proceeded. 4oes the management panel

ob6ection to the presence of the union counsel constitute unfa

labor practice through bad-faith bargaining

A. #es, the management is harping on a non-mandatory matt

instead of proceeding with the mandatory sub6ects o

 bargaining.

B. o, there is no argaining in ad faith since th

argaining "roceeded anyway.

C. #es, the management panel has no legal basis for limitin

the composition of the union negotiating panel.

4. !o, since it is the union that violates the ground rule

fashioned by the parties, it is the one negotiating in bad faith.

9?. Which of the following acts is !'T part of the regulator

and visitorial power of the >ecretary of (abor and Dmployme

over recruitment and placement agencies The power to  

1

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A. order arrest of an illegal recr!iter

". inspect premises, boo+s and records

C. cancel license or authority to recruit

4. garnish recruiter’s bond

91. Where there is a bargaining deadloc+, who may file a

notice of stri+e

A. The ma6ority members of the bargaining unit.

B. he recogni6ed argaining agent.

C. Any legitimate labor organiKation in the employer’s

 business.

4. The ma6ority members of the bargaining union.

9%. When a recruitment agency fails to deploy a recruit without

valid reason and without the recruit’s fault, the agency is

obligated to  

A. reim!rse the recr!it’s doc!mentary and "rocessing

e"enses.

". reimburse the recruit’s epenses with 9B interest.

C. pay the recruit damages e$uivalent to one year’s salary.

4. find another employer and deploy the recruit within 1%

months.

9. 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. he recr!iter gi#es the im"ression that he is ale to send

the recr!it aroad.

C. The recruiter has insufficient capital and has no fied

address.

4. The recruiter has no authority to recruit.

95. A group of 1* regular ran+-and-file employees of "a

Fesort formed and registered an independent union. '

hearing of this, the management called the officers to chec

who the union members were. 8t turned out that the membe

included the probationary staff, casuals, and the employees othe landscape contractor. The management contends th

inclusion of non-regulars and employees of a contractor ma+e

the union’s composition inappropriate and its registratio

invalid. 8s this correct

A. #es, union membership should be confined to direct-hire

employees of the company.

". #es, the community of interest2 criterion should b

observed not only in the composition of a bargaining unit b

also in the membership of a union.

C. #es, a union must have community of interest; the non

regulars do not have such interest.

D. o, !nion memershi" may incl!de nonreg!lars since

differs from memershi" in a argaining !nit.

9*. Which is !'T a guideline for the dismissal of an employe

on the ground of loss of confidence2

A. (oss of confidence may not be arbitrarily invo+ed in th

face of overwhelming evidence to the contrary.

B. Loss of confidence as ca!se of dismissal sho!ld

e"ressly emodied in written com"any r!les.

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

4. (oss of confidence should not be simulated nor a me

afterthought to 6ustify earlier action ta+en in bad faith.

99. &edring, 4aniel, and &aul were employees of 4eliba+er

who resigned from their 6obs but wanted to file money claim

for unpaid wages and 1th month pay. &edring’s claim tota

&%?,???.??, 4aniel’s &,???.??, and &aul’s &%%,???.??. 4ani

changed his mind and now also wants reinstatement because h

resigned only upon the instigation of &edring and &aul. Whe

should they file their claims

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A. With the 4'(D regional director for &edring and &aul’s

claims with no reinstatement; with the labor arbiter for 4aniel’s

claim with reinstatement.

". With the 'ffice of the Fegional 4irector of the 4epartment

of (abor for all claims to avoid multiplicity of suits.

+. 7ith a laor ariter for all three com"lainants.

4. With the 4'(D Fegional 4irector provided they are

consolidated for epediency.

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 procedural due process is not observed, the dismissal will be

regarded as

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

". an abuse of employer’s discretion, rendering the dismissal

void.

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

D. legal and #alid !t the em"loyer will e liale for

indemnity.

/)CLs

1. The wor+ers wor+ed as cargadors at the warehouse and ricmills of farm A for several years. As cargadors, they loaded

unloaded and piled sac+s of rice from the warehouse to th

cargo truc+s for delivery to different places. They were paid b

7arm A on a piece-rate basis. Are the wor+ers considereregular employee

a #es, because 7arm A paid wages directly to these wor+e

without the intervention of any third party independe

contractor; b #es, their wor+ is directly related, necessary and vital to th

operations of the farmJ

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c !o, because 7arm A did not have the power to control the

wor+ers with respect to the means and methods 1*y which the

wor+ is to be accomplished;

d A and "

%. The following are ecluded from the coverage of Title 8,

"oo+ 88 of (abor Code of the &hilippines /Conditions of 

Dmployment eceptJa 7ield personnel;

 b >upervisors;

c )anagers;

d Dmployees of government-owned and controlledcorporations.

. Wor+ may be performed beyond eight /@ hours a day

 provided thata Dmployee is paid for overtime wor+ an additional

compensation e$uivalent to his regular wage plus at least ?B

thereof,

 b Dmployee is paid for overtime wor+ an additionalcompensation e$uivalent td his regular wage plus at least ?B

thereof;

c Dmployee is paid for overtime wor+ an additional

compensation e$uivalent to his regular wage plus at least %?Bthereof,

d !one of the above

5. )ay the employer and employee stipulate that the latterMsregular or basic salary already includes the overtime pay, such

that when the employee actually wor+s overtime he cannot

claim overtime pay

a #es, provided there is a clear written agreement +nowinglyand freely entered into by the employee,

 b #es, provided the mathematical result shows that the agreed

legal wage rate and the overtime pay Computed separately, are

e$ual to or higher than the separate amounts legally due,

c !o, the employer and employee cannot stipulate t a/M theletterMs regularM 'r basic salary already includes the overtime

 pay

d A and 1

*. The following are instances where an employer can re$uire

an employee to wor+ overtime, ecept

a. 8n case of actual impending emergencies caused by seriousaccident, fire. 7lood, typhoon, earth$ua+e, epidemic or other 

disaster or calamity to prevent loss of live property, or 

imminent danger to public safety,

 b When the country is at war or when other national or localemergency has been declared by the national assembly or the

chief eecutive,

c When there is urgent wor+ to be performed on machines,

installations, or e$uipment, in order to avoid serious loss or damage to employer or some other cause of similar nature;

d Where the completion or continuation of the wor+ started

 before the eight hour is necessary to prevent serious

obstruction or pre6udice to the business or operation of theemployer.

9. N owns and operates a carinderia :is regular employees arehis wife, his two /% children, the family maid, a coo+, two /%

waiters, a dishwasher and a 6anitor. The family driver 

occasionally wor+s for him during store hours to ma+

deliveries. 'n April ?, the dishwasher did not report for wor

The employer did not give his pay for that day is the employe

correcta !o, because employees have a right to receive their regul

daily wage during regular holidays;

 b #es, because April ? is not a regular holiday;

c #es, because of the principle of Ma fair dayMs wage for a fadayMs wor+,

d #es, because he employs less than ten /1? employees.

>EIID>TD4 A!>WDF>J

/a !o legal employees have a right to receive their reguladaily wage during regular holiday OArt. 5, (abor Code, and

carenderia is not in the category of an ecluded or servic

establishmentP.

>EIID>TD4 A(TDF!AT8=D A!>WDFJ/d #es, because he employs less than ten /1? employees Oi.

if we are to consider a carenderia as a retail or servic

establishmentP.

upreme Court categorically declared that separatio pay shall be allowed as a measure of social 6ustice only

those instances where the employee is validly dismissed fo

cause other thanM

a. >erious )isconduct. b. Iross and habitual neglect of duties;

c. Willful disobedience to lawful orders;

d. 7raud or willful breach of trust.>EIID>TD4 A!>WDFJ

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a >erious )isconduct OTiraKona vs. &DT, 8nc., *CFA 9%*P

"ut Apacible /I.F. !o. 1WDF.

1?. Q is a legitimate contractor hired by I for si /9 months

'n the third month, I remitted to Q the salaries and wages of 

the employees :owever, Q absconded with the money leavingthe employees unpaid. The disgruntled employees demanded

from I the payment of their salaries 8s I liable

a. !o, because I has already remitted the employeesM salaries

to Q, validly ecusing I from liability b. #es, because he is 6ointly and solidarity liable for whatever 

monetary claims the employees may have against Q;

c. #es, because of the principle of Ra fair dayMs wage for a fair 

dayMs wor+M;d. " and C

11. Corporation G is owned by (Ms family ( is the &resident ),

(Ms wife, occasionally gives loans to employees of CorporationG. 8t was customary that loan payments were paid to ) by

directly deducting from the employeesM monthly salary is this

 practice of directly deducting payments of debts from the

employeeMs wages alloweda #es, because where the employee is indebted to the

employer, it is sanctioned by the law on compensation under 

Article 1

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%?. The >tate shall allow the deployment of overseas 7ilipino

Wor+ers only in countries where the rights of 7ilipino migrant

wor+ers are protected. Which of the following is not a

guarantee, on the part of the receiving country, for the protection of the rights of '7W’s

a. 8t has eisting labor and social laws protecting the rights of 

migrant wor+ersJ

 b. 8t promotes and facilitates re-integration of migrants into thenational mainstream, O>ec. 5 of FA @?5% as amended by >ec.

of FA 1??%%P

c. 8t is a signatory and3or ratifier of multilateral conventions,

declarations or resolutions relating to the protection of migrantwor+ers,

d. 8t has concluded a bilateral agreement or arrangement with

the government on the protection of the rights of overseas

7ilipino wor+ers.

%1. Which is not a procedural re$uirement for the correction of 

wage distortion in an unorganiKed establishment,

a. "oth employer and employee will attempt to correct thedistortion,

 b. >ettlement of the dispute through !ational Conciliation and

)ediation "oard /!C)",

c. >ettlement of the dispute through voluntary arbitration incase of failure to resolve dispute through C"A dispute

mechanism,

d. A and "

%%. 8n what situation is an employer permitted to employ a

minor

a. 19-year old child actor as a cast member in soap opera

wor+ing @ hours a day. 9 days a wee+, b. A 1

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c. The 7ederation on behalf of the chapter;

d. The Wor+erMs Association OArts. %*@ employer, %5%, %*9

/legitimate labor organiKation and %*< /7ederation which has

issued a Charter Certificate (abor CodeP

5. The following are grounds to deny the &etition for 

Certification Dlection, ecept

a. The petitioning union is illegitimate or improperlyregistered;

 b. !on-appearance for two consecutive schedules before the

)ed-Arbiter by petitioning union,

c. The inclusion of members outside the bargaining unitd. 7iled within an eisting election bar.

9. 8n response to Company GMs unfair labor practices, a union

officer instructed its members to stop wor+ing and wal+ out of the company premises. After three / hours, they voluntarily

returned to wor+. Was there a stri+e and was it a valid activity

a. #es, it was a stri+e; it was a valid activity,

 b. #es, it was a stri+e; !o, it was not a valid activity.c. !o, it was not a stri+e; yes, it was a valid activity;

d. !o, it was not a stri+e; no, it was not a valid activityU 

9. Which of the following is not considered an employer bythe terms of the >ocial >ecunty Act,

a. A self employed person;

 b. The government and any of its political subdivisions,

 branches or instrumentalities, including corporations owned or controlled by the government;

c. A natural persons, domestic or foreign, who carries on in

underta+ing or activity of any +ind and uses the services of 

another person who is under his orders as regards theemployment;

d. A foreign corporation

>>. >he was pregnant with her fourth child when she slippedin the bathroom of her home and had a miscarriage.

)eanwhile, Company G neglected to remit the re$uired

contributions to the >>> Hennifer claims maternity leave benefits and sic+ness benefits. Which of these two may she

claim

a. !one of them,

 b. Dither one of them;c. 'nly maternity leave benefits,

d. 'nly sic+ness benefits.

@. : files for a seven-day paternity leave for the purpose of lending support for his wife, W, who suffered a miscarriage

through intentional abortion W also filed for maternity leave

for five wee+s : and W are legally married but the latter is

with her parents, which is a few bloc+s away from :Ms house.Which of the following statements is the most accurate

a. &aternity leave shall be denied because it does not cover 

aborted babies;

 b &aternity leave shall be denied because W is with her parents,c. )aternity leave shall be denied because it does not cover 

aborted babies,

d. )aternity leave shall be denied because grant of paternityleave bars claim for maternity leave.

. Which of the following is not a privilege of a person wit

disability under the )agna Carta for disabled persons

a. At least %?B discount on purchase of medicines in a

drugstores; b. 7ree transportation in public railways;

c. Dducational assistance in public and pnvate schools throug

scholarship grants;

d. A and C

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

a. !ew #earMs Dve,

 b. Didil 7itr,c. 7atherMs 4ay;

d. 8ndependence 4ay

51. Which is a characteristic of a labor-only contractora. Carnes an independent business different from th

employerMs;

 b. The principalMs liability etends to all rights, duties an

liabilities under labor standards laws including the right to selorganiKation;

c. !o employer-employee relationship,

d. :as sufficient substantial capital or investment in machiner

tools or e$uipment directly or intended to be related to the 6ocontracted

5%. What is not an element of legitimate contracting

a. The contract calls for the performance of a specific 6ob, woror service;

 b. 8t is stipulated that the performance of a specific 6ob, wor

or service must be within a definite predetermined period;

c. The performance of a specific 6ob, wor+ or service has tcompleted either within or outside the premises of th

 principal,

d. The principal has control over the performance of a specif

 6ob, wor+ or service

5. Which is a characteristic of the learner

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

 b. :ired in a highly technical industry;c. Three / months practical on-the-6ob training wi

theoretical instruction,

d. At least 15 years old.

55. What is not a prere$uisites for a valid apprenticesh

agreement

a. Lualifications of an apprentice are met;

 b. A duly eecuted and signed apprenticeship agreement,c. The apprenticeship program is approved by the >ecretary o

(abor;

d. 8ncluded in the list of apprenticeable occupation of TD>4A

5*. Which is not a constitutional right of the wor+ers

a. The right to engage in peaceful concerted activities;

 b. The right to en6oy security of tenure;

c. The right to return on investment;d. The right t receive a living wage

59. Dmployees-employer relationship eist under thfollowing, eceptJ

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a. Hean, a guest relations officer in a nightclub and Hoe the

nightclub owner;

 b. Atty. >in CruK, who wor+s part-time as the resident in-house

lawyer of G CorporationJc. &aul, who wor+s as registered agent on commission basis in

an insurance company.

d. Hac+ and Hill, who wor+ in G Company, an unregistered

Association.

5ports, filed a complaintwith the 4'(D re$uesting the investigation and inspection of 

the said establishment for labor law violations such as

underpayment of wages, nonpayment of 1th month pay,

nonpayment of rest day pay, overtime day, holiday pay, andservice incentive leave pay :ouse of >ports alleges that

4'(D> has no 6urisdiction over the employeesM claims where

the aggregate amount of the claims of each employee eceeds&*, ??? ??, whether or not accompanied with a claim for reinstatement 8s the argument of :ouse of >ports tenableM

a. #es, Article 1% of the (abor Code shall apply, and thus, the

(abor Arbiter has 6urisdiction,

 b. !o, Article 1%@/b.of the (abor Code shall apply, and thus,the 4'(D Fegional 4irector has 6urisdiction,

c. #es, if the claim eceeds &*,??? ??, the 4'(D >ecretary

loses 6urisdiction,

d. !o, a voluntarily arbitrator has 6urisdiction because thematter involved is a givable issue,

5. Which of the following is not compensable as hours

wor+eda. Travel away from home,

 b. Travel from home to wor+,

c. Wor+ing while on call;

d. Travel that is all in a dayMs wor+.

*?. 8t is defined as any union or association of employees

which eists in whole or in part for the purpose of collective

 bargaining with employers concerning terms and conditions of employment.

a. "argaining representative;

 b (abor organiKation;

c. (egitimate labor organiKation,

d 7ederation

*1. This process refers to the submission of the dispute to aimpartial person for determination of the basis of the evidenc

and arguments of the parties The awards is enforceable to th

disputants

a. Arbitration, b. )ediation,

c. Conciliation,

d. Feconciliation

*%. The Fegional 4irector or his representative may b

divested of his enforcement and visitorial powers under th

eception clause of Article 1%@ of the (abor Code an

resultantly, 6urisdiction may be vested on the labor arbiter whethree / elements are present Which of the following is no

one of the three / elements

a. Dmployer contests the findings of the labor regulationofficers and raises issues thereon,

 b. 8n order to resolve any issues raised, there is a need

eamine evidentiary matters,

c. The issues raised should have been venfiable dunng thinspection,

d. The evidentiary matters are not verifiable in the norm

course of inspection

*. 8n what instances do labor arbiters have 6urisdiction ov

wage distortion cases

a. When 6urisdiction is invo+ed by the employer and employe

in organiKed establishments, b. When the case is unresolved by Irievance Committee,

c. After the panel of voluntarily arbitrators has made a decisio

and the same is contested by either party,

d. 8n unorganiKed establishments when the same is n

voluntarily resolved by the parties before the !C)".

*5. 8s a termination dispute a grievable issue

a. #es, if the dismissal arose out of the interpretation implementation of the C"A.

 b. !o, once thereMs actual termination, the issue is cogniKab

 by a (abor Arbiter,

c. #es, it is in the interest of the parties that the dispute bresolved on the establishment level;

d. !o, a voluntary arbitrator must ta+e cogniKance onc

termination is made effective.

**. &eter wor+ed for a !orwegian cargo vessel :e wor+ed as

dec+hand, whose primary duty was to assist in cleaning th

ship. :e signed a five-year contract starting in %??. 8n %?1

&eterMs employers began treating him differently. :e was oftemaltreated and his salary was not released on time These wer

fre$uently protested to by &eter Apparently easperated by h

fre$uent protestations, &eterMs employer, a once top official i

China, suddenly told him that his services would be terminateas soon as the vessel arrived at the net port, in 8ndonesia &et

had enough money to go bac+ home, and immediately upo

arriving, he tiled a money claim with the !(FC against hformer employerMs local agent Will &eterMs case prosper

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a. #es, he is entitled to full reimbursement of his placement fee,

with interest at 1%B per annum, plus salary for the unepired

 portion of his employment contract or for three / months for 

every year of the unepired portion, whichever is higher  b. #es, he is entitled to full reimbursement of his placement

fee, with interest at 1%B per annum, plus his salary for the

unepired portion of his employment contract for three /

months for every year of the unepired portion, whichever isless,

c. #es, he is entitled to his salaries for the unepired portion of 

his employment contract, plus full reimbursement of his

 placement fee with interest at 1%B per annumd. #es, he is entitled to his salaries for three / months for 

every year of the unepired portion of his unemployment

contract, plus full reimbursement of his placement fee with

interest at 1%B per annum.

*9. The following are eempt from the rules on minimum

wages, eceptJ

a. :ousehold or domestic helpers, b. :omewor+ers engaged in needle wor+;

c. Wor+ersM in duly registered establishment in the cottage

industry, Wor+ers in the duly registered cooperative.

d. Wor+ers in the duly registered cooperative.

*

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a. 8mmediately eecutor,

 b. Fe$uires a writ of eecution.

c. 8s immediately eecutory insofar as the reinstatement of the

employee is concerned,d. 8s stayed by the appeal of the employer and posting of 

appeal bond

99. Which of the following is cogniKable by the "ureau of (abor Felations )ed-Arbiters,

a. Enfair labor practice for violation of the C"A filed by the

Wor+ers Enion of Company G against Company G.

 b. Claim for bac+ wages filed by overseas contract wor+er Gena against her >audi Arabian employer,

c. Contest for the position of )I Enion &resident brought by

Qa Hoe, the losing candidate in the recent union elections,

d. I contesting his removal as Chief Decutive 'fficer of Company N.

9ecretary of (abor 8s the remedy of appeal still available to H and where

should he file his appeal,

a. #es, he can file an appeal before the Court of Appeals via a

&etition for Certiorari under Fule 9*. b. #es, he can file an appeal before the >upreme Court via a

 petition for certiorari under Fule 9*.

c. #es, he can file an appeal before the 'ffice of the &resident

since this is administrative caseJd. #es, he can file an appeal before the !ational (abor 

Felations Commission because there is an employer-employee

relationship.

9@. F was employed as an instructor of CruK College locatedin >antiago City, 8sabela. &ursuant to a stipulation in FMs

employment contract that the college has the prerogative to

assign F in any of its branches or tie-up schools as thenecessity demands, the college proposed to transfer hi to

8lagan, a nearby town. F filed a complaint alleging constructive

dismissal since his reassignment will entail an indirect

reduction of his salary or diminution of pay considering thatadditional allowance will not be given to cover for board and

lodging epenses. F, however, failed to prove that allowances

were given in similar instances in the past. 8s FMs contention

that he will suffer constructive dismissal in view of the allegeddiminution of benefit correct

a. #es, such transfer should re$uire an automatic additional

allowance; the non-granting of said allowance amounts to a

diminution of benefit; b. !o, F failed to present evidence that the college committed

to provide the additional allowance or that they were

consistently granting such benefit as to have ripened into a

 practice which cannot be peremptorily withdrawn. :ence, thereis no violation of the rule against diminution of pay;

c. !o, FMs re assignment did not amount to constructive

dismissal because the college has the right to transfer F basedon contractual stipulation;

d. " and C.

9. At what particular point does a labor organiKation ac$uire

legal personally

a. 'n the date the agreement to organiKe the union is signed bthe ma6onty of all its members,

 b. 'n the date the application for registration is duly filed wi

the 4epartment of (abor;

c. 'n the date appeanng on the Certificate of Fegistration.d. 'n the date the Certificate of Fegistration is actually issued

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c. )ental 4eficiencyJ

d. &sychological 4eficiency.

88AY;

>

>a? Disting!ish LaorOnly contracting and =oOnly

contracting. /*B>EIID>TD4 A!>WDFJ

(abor-only contractingJ

The contractor does not have substantial capital or investment

in the form of tools, e$uipment, machineries, wor+ premises,among others, and the employees of the contractor are

 performing activities, which are directly related to the main

 business of the principal. O>y, et al. vs. 7airland Qnitcraft Co.,

8nc., I.F. !os. 1@%1* V 1@9*@, 4ecember 1%, %?11P(egitimate Hob ContractingJ

The contractor has substantial capital and investment in the

form of tools, e$uipment, etc. and carries a distinct and

independent business and underta+es to perform the 6ob, wor+ or service on its own responsibility, according to its own

manner and method, and free from control and direction of the

 principal in all matters connected with the performance of the

wor+ ecept as to the results thereof ODscasinas vs. >hangri-laMs)actan 8sland Fesort, *@? >CFA 55 /%??P.

(abor-'nly Contracting is prohibited while Hob Contracting is

allowed by law.

A!'T:DF >EIID>TD4 A!>WDFJ1. Hob-'nly contracting is legal; whereas, (abor-'nly

contracted is prohibited by law.

%. 8n Hob-'nly contracting, the principal is only an indirect

employer; whereas, in (abor-'nly contracting, the principal becomes the direct employer of the employees of the labor-

only contractor.

. The liability of the principal in Hob-'nly contracting vis-a-

vis employees of 6ob-contractor is for a limited purpose only,

e.g. wages and violation of labor standard laws; whereas, theliability of the principal in (abor-'nly contracting is for a

comprehensive purpose and, therefore, the principal becomes

solidarily with the labor-only contractor for all the rightfulclaims of the employees.

5. 8n Hob-'nly contracting, no employer-employee relationship

eists between the principal and the employees of the 6ob

contractor; whereas, in (abor-'nly contracting, the law createsan employer-employee relationship between the principal and

the employees of the labor-only contractor.

>?  A deadloc+ on the negotiations for the collective bargaining agreement between College G and the Enion

 prompted the latter, after duly notifying 4'(D, to declare a

stri+e on !ovember * The stri+e totally paralyKed the

operations of the school The (abor >ecretary immediatelyassumed 6urisdiction over the dispute and issued on the same

day /!ovember * a return to wor+ order Epon receipt of the

order the stri+ing union officers and members. on !ovember ecretaryMs assumption of 6urisdiction, and continued

with the stri+e during the pendency of their motion 'n

 !ovember ?, the (abor >ecretary denied the reconsiderationof his return to wor+ order and further noting the stri+ersM

failure to immediately return to wor+, terminated their 

employment 8n assailing the (abor >ecretaryMs decision, th

Enion contends that @1? he Laor 8ecretary erroneo!sly ass!me

 /!risdiction o#er the dis"!te since +ollege co!ld not

considered an ind!stry indis"ensale to national interest,

>EIID>TD4 A!>WDFJ

The contention has no merit. There is no doubt that the on

going labor dispute at the school adversely affects the nationinterest. The on-going wor+ stoppage at the school undu

 pre6udices the students and will entail great loss in terms o

time, effort and money to all concerned. )ore importantly, th

school is engaged in the promotion of the physical, 8ntellectuand emotional well-being of the countryMs youth, matters th

are therefore of national interest. O>t. >cholasticaMs College

Fuben Toress,IF !o. 1??1*%, % Hune 1% citing &hilippin

>chool of "usiness Administration v. 'riel, IF. !o. @?95@, 1August 1@@, 195 >CFA 5?%P

A!'T:DF >EIID>TD4 A!>WDFJ

/1 The >ecretary of (abor correctly assumed 6urisdiction ov

the labor dispute because the school /College G is an 8ndustrindispensable to the national interest. This is so because th

administration of a school is engaged in the promotion of th

 physical, 8ntellectual and emotional well-being of the country

youth /&>"A vs. !oriel, 195 >CFA 5?% O1@@P./% An assumption order is eecutory in character and must b

strictly complied with by the parties even during the pendenc

of any petition /or )otion for Feconsideration $uestioning i

validity /"aguio Colleges 7oundation vs. !(FC, %%% >CF9?5 O1P; Enion of 7ilipro Dmployees vs. !estle &hilippine

8nc., 1 >CFA 9 O1?P

/ %95 of the (abor Code, as amended. />oiid "an

Corporation, etc., vs. >olid "an+ Enion, I.F. !o. 1*591, 1 !ovember %?1?. Thus, the union officers and members wh

defied the assumption order of the >ecretary of (abor a

deemed to have lost their employment status for havin

+nowingly participated in an illegal act. /Enion of 7illpr

Dmployees vs. !estle &hilippines, supra.@2? he stri$ers were !nder no oligation to immediate

com"ly with the ret!rn to wor$ order eca!se of their the

"ending 9otion for Reconsideration of s!ch order;>EIID>TD4 A!>WDFJ

This position of the union is flawed. Article %9 /? (abo

Code provides that R/such assumption shall have th

effect of automatically en6oining the intended or impendinstri+e . 8f one has already ta+en place at the time o

assumption, Mall stri+ing . . employees shall immediate

return to wor+.M R This means that by its very terms,

return-to-wor+ order is immediately effective and eecutornotwithstanding the filing of a motion for reconsideratio

O8bid., citing Eniversity of >to. Tomas v. !(FC, I.F. !o

@%?, 1@ 'ctober 1?; 1? >CFA

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held that defiance of the Assumption 'rder or a return-to-wor+ 

order by a stri+ing employee, whether a Enion 'fficer or a

 plain member, is an illegal act which constitutes a valid ground

for loss of employment status. 8t thus follows that the defiantstri+ers were validly dismissed.

>>.

8n the Collective "argaining Agreement /C"A between 4ana7ilms and its ran+-and-file Enion /which is directly affiliated

with ))77, a national federation a provision on the

maintenance of membership epressly provides that the Enion

can demand the dismissal of any member-employee whocommits acts of disloyalty to the Enion as provided for in its

Constitution and "y-(aws. The same provision contains an

underta+ing by the Enion /))77 to hold 4ana 7ilms free

from any and all claims of any employee dismissed 4uring theterm of the C"A, ))77 discovered that certain employee-

members were initiating disaffiliation movement from ))77

to 7A)A> 4ana 7ilms. relying on the provision of the

aforementioned C"A, complied with ))77Ms re$uest anddismissed the employees identified by ))77 as disloyal to it.>> a? 7ill an action for illegal dismissal against Dana ilms

and 99 "ros"er or notC 7hyC @%4?

>EIID>TD4 A!>WDFJ#es. While 4ana 7ilms, under the C"A, is bound to dismiss

any employee who is epelled by ))77 for disloyalty /upon

its written re$uest, this underta+ing should not be done hastily

and summarily. 4ue process is re$uired before a member can be dropped from the list of union members of good standing.

The companyMs dismissal of its wor+ers without giving them

the benefit of a hearing, and without in$uiring from the

wor+ers on the cause of their epulsion as union members,constitute bad faith. O(iberty Cotton )ills Wor+ers Enion, et.

al. vs. (iberty Cotton )ills , 8nc. et. al., IF !o. (-@? 7hat are the liailities of Dana ilms and 99 to

the dismissed em"loyees, if anyC @%4?>EIID>TD4 A!>WDFJ

4ana 7ilms is obliged /1 to reinstate the illegally dismissed

employees to their former positions without reduction in ran+,seniority and salary; and /% to 6ointly and severally pay the

dismissed employees bac+wages, without any reduction in pay

or $ualification. OAmada Fice v. !(FC, IF !o. 9@15>>.

>>>a? 'n August ?1, %??@, #, a corporation engaged in the

manufacture of tetile garments, entered into a collective bargaining agreement with Enion G in representation of the

ran+-and-file employees of the corporationU The C"A was

effective up to Hune %?, %?11 The contract had an automatic

renewal clause which would allow the agreement otter itsepiry date to still apply until both parties would have been

able to eecute a new agreement 'n )ay 1?, %?11, Enion G

submitted to #Ms management their proposals for the

negotiation of a new C"A The net day, # suspendednegotiations with Enion G since # had entered into a merger 

with N, a corporation also engaged in the manufacture of tetile

garments N assumed all the assets and liabilities of #. Enion Gfiled a complaint with the Fegional Trial Court for >pecific

&erformance and damages with a prayer for preliminary

in6unction against # and N and N filed a )otion to 4ismis

 based on lac+ of 6urisdiction. R!le on the 9otion to Dismi

/*B

>EIID>TD4 A!>WDFJThe )otion to 4ismiss must be granted. The claim against #

and N consists mainly of the civil aspect of the unfair labo

 practice charge referred to in Article %5< of the (abor Cod

Ender Article %5< of the Code, Rthe civil aspects of all caseinvolving unfair labor practices, which may include claims fo

damages and other affirmative relief, shall be under th

 6urisdiction of the labor arbiters.R /!ational Enion of "an

Dmployees vs. (aKaro IF !o. *951, Hanuary 1, 1@@"esides, what the parties have is a labor dispute as defined

Art. %1% /8 of the (abor Code Rregardless of whether th

disputants stand in the proimate relation of employer an

employeeR. "eing so, the FTC is prohibited by Art. %*5 of thCode from eercising 6urisdiction over the case.

>>>? G was one of more than one hundred /1?? employee

who were terminated from employment due to closure Construction Corporation A. The CruK family owne

Construction Company A. Epon the closure of th

Construction Company A, the CruKes established Constructio

Company ". "oth corporations had the same president, sam board of directors, the same corporate officers and the sam

subscribers. 7rom the Ieneral 8nformation >heet filed by bot

companies, it also showed that they shared the same addre

and3or premises. "oth companies also hired the samaccountant who prepared the boo+s for both companies.

G and his co-employees amended their Complaint with th

(abor Arbiter to hold Construction Company " 6oint an

severally liable with Construction Company A for illegdismissal, bac+wages and separation pay Constructio

Company " interposed a )otion to 4ismiss contending th

they are 6uridical entities with distinct and separa

 personalities from Construction A and therefore, they cannot b

held 6ointly and severally liable for the money claims owor+ers who are not their employees. R!le on the 9otion

Dismiss 8ho!ld it e granted or deniedC 7hyC @%4?

>EIID>TD4 A!>WDFJ4enied. The factual circumstancesJ that the businesses

Construction Company A and Construction Company " ar

related, that all of the employees of Company A are the sam

 persons manning and providing for auiliary services to uniof Company ", and that the physical plants, offices an

facilities are situated in the same compound - Hustify th

 piercing of the corporate veil of Company ". O8ndophil Teti

)ill Wor+ers Enion vs. Calica, %?* >CFA 9< /1%P. Thfiction of corporate entity can be disregarded when it is used t

 6ustify wrong or protect fraud. /Comple Dlectroni

Association v. !(FC, /IF !o. 1%11* @ 1%%19, Huly 1

1P.

>.

>a? Huicy "ar and !ight Club allowed by tolerance fifty /*?

Iuest Felations 'fficers /IF's to wor+ withocompensation in its establishment under the direct supervisio

of its )anager from @.?? & ) To 5?? A.). Dveryda

including >undays and :olidays. The IF's, however, werfree to ply their trade elsewhere at anytime, but once they ent

the premises of the night club, they were re$uired to stay up t

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closing time The IF's earned their +eep eclusively from

commissions for food and dnn+s, and tips from generous

customers. 8n time, the IF's formed the >olar Egnayan ng

mga Qababaihang 8naapi />EQ8, a labor union duly registeredwith 4'(D. >ubse$uently, >EQ8 filed a petition for 

Certification Dlection in order to be recogniKed as the eclusive

 bargaining agents of its members. Huicy "ar and !ight Club

opposed the petition on the singular ground of absence of employer-employee relationship between the IF's on the one

hand and the night club on the other hand. 9ay the EROs

form 8:F> as a laor organi6ation for "!r"oses of 

collecti#e argainingC "lain riefly. /*B>EIID>TD4 A!>WDFJ

#es. The IF's wor+ed under the direct supervision of the !ite

Club )anager for a substantial period of time. :ence, under 

Art. 1@, with or without compensation, the IF's are to bedeemed employees. As such, they are entitled to all the rights

and benefits granted to employees3wor+ers under the

Constitution and other pieces of labor legislation including the

right to form labor organiKations for purposes of collective bargaining. /Const., Art. G888, >ec. ; (abor Code, Art. %5.

>EIID>TD4 A(TDF!AT8=D A!>WDFJ

 !o. While the IF's are considered employees of Huicy "ar 

and !ight Club by fiction of law for purposes of labor andsocial legislation /AFT. 1@, (abor Code, Art. %5 of the

(abor Code however ecludes Rambulant, intermittent and

itinerant wor+ers and those without any definite

employersR such as the IF's here, from eercising Rthe rightto self-organiKation for purposes of collective bargainingR.

They can only Rform labor organiKation for their mutual aid

and protectionR.

>? A spinster school teacher too+ pity on one of her pupils,

a robust and precocious 1%-year old boy whose poor family

could barely afford the cost of his schooling. >he lives alone at

her house near the school after her housemaid had left 8n the

afternoon. she lets the boy do various chores as cleaning,fetching water and all +inds of errands after school hours >he

gives him rice and &1?? ?? before the boy goes home at s

her defense tenaleC 7hyC /*B>EIID>TD4 A!>WDFJ

The defense is not tenable. Children below fifteen /1* years of 

age shall not be employed eceptJ

When a child wor+s directly under the sole responsibility of his3her parents or legal guardian and where only members of 

his3her family are employed ; or 

% Where a childMs employment or participation in public

entertainment or information through cinema, theater, radio,television or other forms of media is essential .R />ection

1%, FA aturday -drive family van to fetch merchandise from suppliers and

deliver the same to a bouti$ue in a mall owned by the family

a? >s the dri#er a ho!sehel"erC /*B

>EIID>TD4 A!>WDF.

#es, insofar as concerns his wor+ on R)onday, Wednesday an

7ridayR, as he ministers to the personal comfort and en6oymeof his employerMs family during those days. OApe )inin

Company, 8nc. v. !(FC /I.F. !o. 5*1, April %%, 11, 1

>CFA %*1, %*5-%**P

 b The same driver claims that for wor+ performed on TuesdaThursday and >aturday. he should be paid the minimum dail

wage of a driver in a commercial establishment.  >s the clai

of the dri#er #alidC /*B

>EIID>TD4 A!>WDFJ#es, as during said days, he already wor+s not as a domest

servant but as a regular employee in his employerMs bouti$ue

a mall /Ape )ining Company, 8nc. vs. !(FC /supraP

>.

>a? 7or humanitarian reasons, a ban+ hired sever

handicapped wor+ers to count and sort out currencies. Th

handicapped wor+ers +new that the contract was only for  period of si-months and the same period was provided for

their employment contracts After si months. the ban

terminated their employment on the ground that their contra

has epired. This prompted the wor+ers to file with the laboarbiter a complaint for illegal dismissal. 7ill their actio"ros"erC 7hy or why notC /*B

>EIID>TD4 A!>WDFJ

 !o. An employment contract with a fied term terminates bits own terms at the end of such period. The same is valid if th

contract was entered into by the parties on e$ual footing an

the period specified was not designed to circumvent th

security of tenure of the employees. /"rent >chool v. Namor1@1 >CFA

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#es, 8nggaMs contention is tenable considering Art. 19 of the

(abor Code which prohibits discrimination against married

women.

>>.

>>a?  lnggu, an electronics technician, wor+ed within the

 premises of &it >top, an auto accessory shop. :e filed a

Complaint for illegal dismissal, overtime pay and other  benefits against &it >top. &it >top refused to pay his claims on

the ground that lnggu was not its employee but was an

independent contractor. 8t was common practice for shops li+e

&it >top to collect the service fees from customers and pay thesame to the independent contractors at the end of each wee+.

The autoshop eplained that 8nggu was li+e a partner who

wor+ed within its premises, using parts provided by the shop,

 but otherwise 8nggu was free to render service in the other autoshops. 'n the other hand, lnggu insisted that he was still

entitled to the benefits because he was loyal to &it >top, it

 being a fact that he did not perform wor+ for anyone else 8s

8nggu correct Dplain briefly. /*B>EIID>TD4 A!>WDFJ

#es. 8nggu is an employee of the &it >top. Article 1y, et.

al. v. Court of Appeals IF !o. 15%%, 7ebruary %>?  The modes of determining an eclusive bargaining

agreement are./1 voluntary recognition

/% certification election

/ consent electionDplain briefly how they differ from one another 

>EIID>TD4 A!>WDFJ

R=oluntary FecognitionR refers to the process by which a

legitimate labor union 8s recogniKed by the employer as theeclusive bargaining representative or agent 8n a bargaining

unit. >ec. 1, /bbb, Fule 1, "oo+ = /'mnibus Fules

8mplementing the (abor Code.

A!'T:DF >EIID>TD4 A!>WDFJ/1 =oluntary Fecognition is possible only in unorganiKed

establishments where there is only one legitimate labor 

organiKation and the employer voluntarily recogniKe the

representation status of such a unionJ whereas,/% Certification election is a process of determining the sole

and eclusive bargaining agent of the employees in an

appropriate bargaining unit for purposes of collective

 bargaining, which process may involve one, two or morelegitimate labor organiKations. 'n the other hand, / consent

election is an agreed one, the purpose being merely to

determine the 8ssue of ma6ority representation of all thewor+ers in the appropriate bargaining unit.

>EIID>TD4 A!>WDFJ

RCertification DlectionR refers to the process of determinin

through secret ballot the solo and eclusive representative o

the employees in an appropriate bargaining unit for purposes

collective bargaining or negotiation. A certification election ordered by the 4epartment. />ec. 1, /h, Fule 1, "oo+ =

'mnibus Fules 8mplementing the (abor Code.

>EIID>TD4 A!>WDFJ

RConsent DlectionR refers to the process of determining througsecret ballot the sole and eclusive representative of th

employees 8n an appropriate bargaining unit for purposes o

collective bargaining or negotiation. A consent election

voluntarily agreed upon by the parties, with or without thintervention by the 4epartment. O>ec. 1 /h, Fule 8, "oo+ =

'mnibus Fules.

>>>.

A"C Tomato Corporation owned and managed by three /

elderly brothers and two /% sisters, has been in business for 5

years 'ne to serious business losses and financial revers

during the last five /* years. they decided to close the businesa? As co!nsel for the cor"oration, what ste"s will yo! ta$

"rior to its clos!re, /B

>EIID>TD4 A!>WDFJ

8 will serve a written notice on both the wor+ers and thFegional 'ffice of the 4epartment of (abor and Dmploymen

at least one /1 month before the intended date of closur

/AFT. %@, (abor Code; and /% provide proof of A"C

serious business losses or financial reverses O"alasbas  !(FC, IF !o. @*%@9, August %5, 1%P? Are the em"loyees entitled to se"aration "ayC /%B

>EIID>TD4 A!>WDFJ

 !o. Where closure is due to serious business losses, nseparation pay is re$uired. O!orth 4avao )ining Corp.

 !(FC, %*5 >CFA ervices vs. !(FC, 5%

>CFA EIID>TD4 A!>WDFJ

#es. The determination to cease or suspend operations is  prerogative of management that the >tate usually does n

interfere with, as no business can be re$uired to continu

operating to simply maintain the wor+ers in employment. O>a

&edro :ospital of 4igos v. >ecretary of (abor,IF !o. 1?59%'ctober 11, 19; Dspina vs. CA, *1 >CFA %< /%??EIID>TD4 A!>WDFJ

#es. 8n case of cessation of operations of establishment ounderta+ing not due to serious business losses or financi

reverses, the separation pay shall be e$uivalent to one /

month pay or at least one-half /11% month pay for every yea

of service, whichever is higher. A fraction of at least si /9months shall be considered as one /1 whole year OAFT. %@

(abor CodeP.

>.

4ennis was a tai driver who was being paid on the Rboundar

system basis. :e wor+ed tirelessly for Cabrera Transport 8n

for fourteen /15 years until he was eligible for retirement. :was entitled to retirement benefits. 4uring the entire duratio

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of his service, 4ennis was not given his 1th month pay and

his service incentive leave paya? >s Dennis entitled to 1'G month "ay and ser#ice incenti#e

lea#e "ay, /*B>EIID>TD4 A!>WDFJ

 !o. A tai driver paid under the Rboundary systemR is not

entitled to a 1th month and a >8( pay. :ence, his retirement

 pay should be computed solely on the basis of his salary.>pecifically, >ec. /e of the Fules and Fegulations

8mplementing &.4. @*1 ecludes from the obligation of 1M

)onth &ay RDmployers of those who are paid on . boundaryR

 basis. 'n the other hand, >ec. 1 /d, Fule =, "oo+ 888 of the'mnibus Fules provides that those Remployees whose

 performance is unsupervised by the employerR are not entitled

to >ervice 8ncentive (eave. A tai driver paid under the

"oundary >ystem is an RunsupervisedR employee. b >ince he was not given his 1M month pay and service

incentive leave pay, should 4ennis be paid upon retirement, in

addition to the salary e$uivalent to fifteen /1* days for every

year of service, the additional %.* days representing one-twelfth /131% of the 1 month pay as well as the five days

representing the service incentive leave for a total of %%.* days."lain /*B

>EIID>TD4 A!>WDFJ !o. >ince he 8s not entitled to 1M month pay and >8(, his

retirement pay should be computed solely on the basis of his

salary. OFVD Transport v. (atag, IF !o. 1**%15, 7ebruary 1,

%??51

>.

>a?  G#N )anpower >ervices /G#N was sued by its

employees together with its client, A"C &olyester )anufacturing Company /A"C A"C is one of the many

clients of G#N 4uring the proceedings before the labor arbiter,

G#N was able to prove that it had substantial capital of Three

)illion &esos. The (abor Arbiter ruled in favor of the

employees because it deemed G#N as a labor-only contractor G#N was not able to prove that it had invested in tools,

e$uipment, etc. >s the Laor AriterGs r!ling #alidC "lain.

/*B>EIID>TD4 A!>WDFJ

#es. The presumption is that a contractor is a labor-only

contractor unless it is shown that it has substantial capital and

substantial investment in the form of tools, e$uipment,

machineries, wor+ premises and the li+e O>y, et al. vs. 7airlan

Qnitcraft Co., 8nc., I.F. !os. 1@%1* V 1@9*@, 4ecember 1

%?111 "esides, what Art. 1?9 of the Code defines is (abo

'nly Contracting and not Hob-Contracting. 8n mandating thR/there is labor-onlyM contracting where the person supplyin

wor+ers to an employer does not have substantial capital '

investment in the form of tools, e$uipment, machineries, wor

 premises, among othersR, the law is therefore clear that th presence of either handicap - Rsubstantial capital '

/substantial 8nvestment in the form of tools, e$uipment, /etc.

- is enough basis to classify one as a labor-only contractor.

A!'T:DF >EIID>TD4 A!>WDFJ !o, the (abor ArbiterMs ruling is not valid. Art. 1?9 of th

(abor Code provides that the contractor has Rsubstantial capit

or investmentR; The law did not say substantial capital an

investment. :ence, it is in the alternative; it is sufficient if thcontractor has one or the other, i.e., either the substanti

capital or the investment. And under 4epartment 'rder !o. 1

A, >eries of %?11, the amount of & million paid-up capital fo

the company is substantial capital.

>? Does the "erformance y a contract!al em"loye

s!""lied y a legitimate contractor, of acti#ities direct

related to the main !siness of the "rinci"al ma$e him reg!lar em"loyee of the "rinci"alC "lain. /*B

>EIID>TD4 A!>WDFJ

 !o. The element of an employeeMs Rperforming activities whic

are directly related to the principal business of such employerdoes not actually matter for such is allowed by Art. 1?< of th

(abor Code. An Rindependent contractor for the performanc

of any wor+, tas+, 6ob or pro6ectR such as >ecurity an

Hanitorial Agencies, naturally hire employees whose tas+s arnot directly related to the principal business of the compan

hiring them. #et, they can be labor-only contractors if the

suffer from either of the twin handicaps of Rsubstantial capital

R'FR Rsubstantial investment in the form of toolsR, and th

li+e. Conversely, therefore, the performance by a 6obcontractorMs employee of activities that are directly related t

the main business of the principal does not ma+e sa

employee a regular employee of the principal.’

-oo'oo-