J. DIOSDADO M.

PERALTA
Chairman
2014 Bar Examinations
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 10month employment contract everytime she left for Miami. Macapagal Shipping paid for Linas roundtrip travel expenses from Manila to Miami. Because of a food poisoning incident which happened
during her last cruise assignment, Lina was not re-hired. Lina claims she has been illegally terminated
and seeks separation pay. If you were the Labor Arbiter handlingthe case, how would you decide? (4%)
VII.
Non-lawyers can appear before the Labor Arbiter if: (1%)
(A) they represent themselves
(B) they are properly authorized to represent their legitimate labor organization or member
thereof
(C) they are duly-accredited members of the legal aid office recognized by the DOJ or IBP
(D) they appear in cases involving an amount of less than Php5,000
VIII.
As a result of a bargaining deadlock between Lazo Corporation and Lazo Employees Union, the latter
staged a strike. During the strike, several employees committed illegal acts. Eventually, its members
informed the company of their intention to return to work. (6%)
(A) Can Lazo Corporation refuse to admit the strikers?
(B) Assuming the company admits the strikers, can it later on dismiss those employees who
committed illegal acts?
(C) If due to prolonged strike, Lazo Corporation hired replacements, can it refuse to admit the
replaced strikers?
IX.
Luisa Court is a popular chain of motels. It employs over 30 chambermaids who, among others, help
clean and maintain the rooms. These chambermaids are part of the union rank-and-file employees
which has an existing collective bargaining agreement (CBA) with the company. While the CBA was in
force, Luisa Court decided to abolish the position of chambermaids and outsource the cleaning of the
rooms to Malinis Janitorial Services, a bona fide independent contractor which has invested in
substantial equipment and sufficient manpower. The chambermaids filed a case of illegal dismissal
against Luisa Court. In response, the company argued that the decision to outsource resulted from the

new managements 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. Luisas 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 Morgans operations in Taguig City. Lionelsemployment 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 Luiss 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 nonteaching personnel of OLPCS before the Bureau of Labor Relations (BLR) of the Department of Labor
and Employment (DOLE). The Med-Arbiter subsequently granted the petition and ordered the conduct
of a joint certification election for the teaching and non-teaching personnel of OLPCS.
May OLPCS-TELU be considered a legitimate labor organization? (5%)
XVI.
Samahang East Gate Enterprises (SEGE) is a labor organization composed of the rank-and-file
employees of East Gate Enterprises (EGE), the leading manufacturer of all types of gloves and aprons.
EGE was later requested by SEGE to bargain collectively for better terms and conditions of
employment of all the rank -and-file employees of EGE. Consequently, EGE filed a petition for
certification election before the Bureau of Labor Relations (BLR).
During the proceedings, EGE insisted that it should participate in the certification process. EGE
reasoned that since it was the one who filed the petition and considering that the employees concerned
were its own rankand-file employees, it should be allowed to take an active part in the certification
process.
Is the contention of EGE proper? Explain. (5%)
XVII.
Philhealth is a government-owned and controlled corporation employing thousands of Filipinos.
Because of the desire of the employees of Philhealth to obtain better terms and conditions of
employment from the government, they formed the Philhealth Employees Association (PEA) and
demanded Philhealth to enter into negotiations with PEA regarding terms and conditions of
employment which are not fixed by law. (4%)
(A) Are the employees of Philhealth allowed to self-organize and form PEA and thereafter
demand Philhealth to enter into negotiations with PEA for better terms and conditions of
employment?
(B) In case of unresolved grievances, can PEA resort to strikes, walkouts, and other temporary
work stoppages to pressure the government to accede to their demands?
XVIII.
The procedural requirements of a valid strike include: (1%)
(A) a claim of either unfair labor practice or deadlock in collective bargaining
(B) notice of strike filed at least 15 days before a ULP-grounded strike or at least 30 days prior
to the deadlock in a bargaining grounded strike
(C) majority of the union membership must have voted to stage the strike with notice thereon
furnished to the National Conciliation and Mediation Board (NCMB) at least 24 hours before

the strike vote is taken

(D) strike vote results must be furnished to the NCMB at least seven (7) days before the
intended strike
XIX.
Lincoln was in the business of trading broadcast equipment used by television and radio networks. He
employed Lionel as his agent. Subsequently, Lincoln set up Liberty Communications to formally
engage in the same business. He requested Lionel to be one of the incorporators and assigned to him
100 Liberty shares. Lionel was also given the title Assistant Vice-President for Sales and Head of
Technical Coordination. After several months, there were allegations that Lionel was engaged in "under
the table dealings" and received "confidential commissions" from Libertys 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 companys 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 Litos 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 employers 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 companys
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 Lizzys separation pay, Luna Properties should consider her: (1%)
(A) monthly salary only
(B) monthly salary plus sales commissions
(C) monthly salary plus sales commissions, plus cost of living allowance
(D) monthly salary plus sales commissions, plus cost of living allowance and representation
allowance
XXVI.
Liwanag Corporation is engaged in the power generation business. A stalemate was reached during the
collective bargaining negotiations between its management and the union. After following all the
requisites provided by law, the union decided to stage a strike. The management sought the assistance
of the Secretary of Labor and Employment, who assumed jurisdiction over the strike and issued a
return-to-work order. The union defied the latter and continued the strike. Without providing any
notice, Liwanag Corporation declared everyone who participated in the strike as having lost their
employment. (4%)
(A) Was Liwanag Corporations 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
---ooo0ooo--J. ARTURO D. BRION
Chairman
2013 Bar Examinations
ESSAY QUESTIONS
I.
Jose and Erica, former sweethearts, both worked as sales representatives for Magna, a multinational
firm engaged in the manufacture and sale of pharmaceutical products. Although the couple had already
broken off their relationship, Jose continued to have special feelings for Erica.
One afternoon, Jose chanced upon Erica riding in the car of Paolo, a co-employee and Erica's ardent
suitor; the two were on their way back to the office from a sales call on Silver Drug, a major drug
retailer. In a fit of extreme jealousy, Jose rammed Paolo's car, causing severe injuries to Paolo and
Erica. Jose's flare up also caused heavy damage to the two company-owned cars they were driving.
(A) As lawyer for Magna, advise the company on whether just and valid grounds exist to
dismiss Jose. (4%)
(B) Assuming this time that Magna dismissed Jose from employment for cause and you are the
lawyer of Jose, how would you argue the position that Jose's dismissal was illegal? (4%)
II.
Gamma Company pays its regular employees P350.00 a day, and houses them in a dormitory inside its
factory compound in Manila. Gamma Company also provides them with three full meals a day.
In the course of a routine inspection, a Department of Labor and Employment (DOLE) Inspector noted
that the workers' pay is below the prescribed minimum wage of P426.00 plus P30.00 allowance, and
thus required Gamma Company to pay wage differentials.
Gamma Company denies any liability, explaining that after the market value of the company-provided
board and lodging are added to the employees' P350 cash daily wage, the employees' effective daily
rate would be way above the minimum pay required by law. The company counsel further points out
that the employees are aware that their food and lodging form part of their salary, and have long
accepted the arrangement.
Is the company's position legally correct?(8%)
III.
Inter-Garments Co. manufactures garments for export and requires its employees to render overtime
work ranging from two to three hours a day to meet its clients' deadlines. Since 2009, it has been
paying its employees on overtime an additional 35% of their hourly rate for work rendered in excess of
their regular eight working hours.
Due to the slowdown of its export business in 2012, Inter-Garments had to reduce its overtime work; at
the same time, it adjusted the overtime rates so that those who worked overtime were only paid an
additional 25%instead of the previous 35%. To replace the workers' overtime rate loss, the company
granted a one-time 5% across-the-board wage increase.
Vigilant Union, the rank-and-file bargaining agent, charged the company with Unfair Labor Practice on

the ground that (1) no consultations had been made on who would render overtime work; and (2) the
unilateral overtime pay rate reduction is a violation of Article 100 (entitled Prohibition Against
Elimination or Diminution of Benefits) of the Labor Code.
Is the union position meritorious? (8%)
IV.
Bobby, who was assigned as company branch accountant in Tarlac where his family also lives, was
dismissed by Theta Company after anomalies in the company's accounts were discovered in the branch
Bobby filed a complaint and was ordered reinstated with full backwages after the Labor Arbiter found
that he had been denied due process because no investigation actually took place.
Theta Company appealed to the National Labor Relations Commission (NLRC) and at the same time
wrote Bobby, advising him to report to the main company office in Makati where he would be
reinstated pending appeal Bobby refused to comply with his new assignment because Makati is very far
from Tarlac and he cannot bring his family to live with him due to the higher cost of living in Makati.
(A) Is Bobby's reinstatement pending appeal legally correct? (4%)
(B) Advise Bobby on the best course of action to take under the circumstances. (4%)
V.
Cris filed a complaint for illegal dismissal against Baker Company. The Labor Arbiter dismissed the
complaint but awarded Cris financial assistance. Only the company appealed from the Labor Arbiter's
ruling. It confined its appeal solely to the question of whether financial assistance could be awarded.
The NLRC, instead of ruling solely on the appealed issue, fully reversed the Labor Arbiter's decision; it
found Baker Company liable for illegal dismissal and ordered the payment of separation pay and full
backwages.
Through a petition for certiorari under Rule 65 of the Rules of Court, Baker Company challenged the
validity of the NLRC ruling. It argued that the NLRC acted with grave abuse of discretion when it
ruled on the illegal dismissal issue, when the only issue brought on appeal was the legal propriety of
the financial assistance award.
Cris countered that under Article 218(c) of the Labor Code, the NLRC has the authority to "correct,
amend, or waive any error, defect or irregularity whether in substance or in form" in the exercise of its
appellate jurisdiction.
Decide the case. (8%)
VI.
Because of the stress in caring for her four (4) growing children, Tammy suffered a miscarriage late in
her pregnancy and had to undergo an operation. In the course of the operation, her obstetrician further
discovered a suspicious-looking mass that required the subsequent removal of her uterus
(hysterectomy). After surgery, her physician advised Tammy to be on full bed rest for six (6) weeks.
Meanwhile, the biopsy of the sample tissue taken from the mass in Tammy's uterus showed a beginning
malignancy that required an immediate series of chemotherapy once a week for four (4) weeks.
(A) What benefits can Tammy claim under existing social legislation? (4%)
(B) What can Roger-Tammy's 2nd husband and the father of her two (2) younger children
-claim as benefits under the circumstances? (4%)
VII.

Philippine Electric Company is engaged in electric power generation and distribution. It is a unionized
company with Kilusang Makatao as the union representing its rank-and-file employees. During the
negotiations for their expired collective bargaining agreement (CBA), the parties duly served their
proposals and counter-proposals on one another. The parties, however, failed to discuss the merits of
their proposals and counter-proposals in any formal negotiation meeting because their talks already
bogged down on the negotiation ground rules, i.e., on the question of how they would conduct their
negotiations, particularly on whether to consider retirement as a negotiable issue.
Because of the continued impasse, the union went on strike. The Secretary of Labor and Employment
immediately assumed jurisdiction over the dispute to avert widespread electric power interruption in
the country. After extensive discussions and the filing of position papers (before the National
Conciliation and Mediation Board and before the Secretary himself) on the validity of the union's strike
and on the wage and other economic issues (including the retirement issue), the DOLE Secretary ruled
on the validity of the strike and on the disputed CBA issues, and ordered the parties to execute a CBA
based on his rulings.
Did the Secretary of Labor exceed his jurisdiction when he proceeded to rule on the parties' CBA
positions even though the parties did not fully negotiate on their own? (8%)
VIII.
After thirty (30) years of service, Beta Company compulsorily retired Albert at age 65 pursuant to the
company's Retirement Plan. Albert was duly paid his full retirement benefits of one (1) month pay for
every year of service under the Plan. Thereafter, out of compassion, the company allowed Albert to
continue working and paid him his old monthly salary rate, but without the allowances that he used to
enjoy.
After five (5) years under this arrangement, the company finally severed all employment relations with
Albert; he was declared fully retired in a fitting ceremony but the company did not give him any further
retirement benefits. Albert thought this treatment unfair as he had rendered full service at his usual
hours in the past five (5) years. Thus, he filed a complaint for the allowances that were not paid to him,
and for retirement benefits for his additional five (5) working years, based either on the company's
Retirement Plan or the Retirement Pay Law, whichever is applicable.
(A) After Albert's retirement at age 65, should he be considered a regular employee entitled to
all his previous salaries and benefits when the company allowed him to continue working? (4%)
(B) Is he entitled to additional retirement benefits for the additional service he rendered after
age 65? (4%)
IX.
Pablo works as a driver at the National Tire Company (NTC). He is a member of the Malayang
Samahan ng Manggagawa sa NTC, the exclusive rank-and-file collective bargaining representative in
the company. The union has a CBA with NTC which contains a union security and a check-off clause.
The union security clause contains a maintenance of membership provision that requires all members
of the bargaining unit to maintain their membership in good standing with the union during the term of
the CBA under pain of dismissal. The check-off clause on the other hand authorizes the company to
deduct from union members' salaries defined amounts of union dues and other fees. Pablo refused to
issue an authorization to the company for the check-off of his dues, maintaining that he will personally
remit his dues to the union.
(A) Would the NTC management commit unfair labor practice if it desists from checking off
Pablo's union dues for lack of individual authorization from Pablo? (4%)

(B) Can the union charge Pablo with disloyalty for refusing to allow the check off of his union
dues and, on this basis, ask the company to dismiss him from employment? (4%)
X.
For ten (10) separate but consecutive yearly contracts, Cesar has been deployed as an able-bodied
seaman by Meritt Shipping, through its local agent, Ace Maritime Services (agency), in accordance
with the 2000Philippine Overseas Employment Administration Standard Employment Contract (2000
POEA-SEC). Cesar's employment was also covered by a CBA between the union, AMOSl.JP, and
Meritt Shipping. Both the 2000 POEA-SEC and the CBA commonly provide the same mode and
procedures for claiming disability benefits. Cesar's last contract (for nine months) expired on July 15,
2013.
Cesar disembarked from the vessel M/V Seven Seas on July 16, 2013as a seaman on "finished
contract". He immediately reported to the agency and complained that he had been experiencing spells
of dizziness, nausea, general weakness, and difficulty in breathing. The agency referred him to Dr.
Sales, a cardio-pulmonary specialist, who examined and treated him; advised him to take a complete
rest for a while; gave him medications; and declared him fit to resume work as a seaman.
After a month, Cesar went back to the agency to ask for re-deployment. The agency rejected his
application. Cesar responded by demanding total disability benefits based on the ailments that he
developed and suffered while on board Meritt Shipping vessels. The claim was based on the
certification of his physician (internist Dr. Reyes) that he could no longer undertake sea duties because
of the hypertension and diabetes that afflicted him while serving on Meritt Shipping vessels in the last
10 years. Rejected once again, Cesar filed a complaint for illegal dismissal and the payment of total
permanent disability benefits against the agency and its principal.
Assume that you are the Labor Arbiter deciding the case. Identify the facts and issues you would
consider material in resolving the illegal dismissal and disability complaint. Explain your choices and
their materiality, and resolve the case. (8%)
MULTIPLE CHOICE QUESTIONS
I. The parties to a labor dispute can validly submit to voluntary arbitration _________. (1%)
(A) any disputed issue they may agree to voluntarily arbitrate
(B) only matters that do not fall within the exclusive jurisdiction of the Labor Arbiter
(C) any disputed issue but only after conciliation at the National Conciliation and Mediation
Board fails
(D) any disputed issue provided that the Labor Arbiter has not assumed jurisdiction over the
case on compulsory arbitration
(E) only matters relating to the interpretation or implementation of a collective bargaining
agreement
II. When there is no recognized collective bargaining agent, can a legitimate labor organization validly
declare a strike against the employer? (1%)
(A) Yes, because the right to strike is guaranteed by the Constitution and cannot be denied to
any group of employees.
(B) No, because only an exclusive bargaining agent may declare a strike against the employer.
(C) Yes, because the right to strike is a basic human right that the country's international
agreements and the International Labor Organization recognize.

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

(E) No, in the absence of a recognized bargaining agent, the workers' recourse is to file a case
before the Department of Labor and Employment.
III.
Mr. Del Carmen, unsure if his foray into business (messengerial service catering purely to law firms)
would succeed but intending to go long-term if he hurdles the first year, opted to open his operations
with one-year contracts with two law firms although he also accepts messengerial service requests from
other firms as their orders come. He started with one permanent secretary and six (6) messengers on a
one-year, fixed-term, contract.
Is the arrangement legal from the perspective of labor standards? (1%)
(A) No, because the arrangement will circumvent worker's right to security of tenure.
(B) No. If allowed, the arrangement will serve as starting point in weakening the security of
tenure guarantee.
(C) Yes, if the messengers are hired through a contractor.
(D) Yes, because the business is temporary and the contracted undertaking is specific and timebound.
(E) No, because the fixed term provided is invalid.
IV. Chito was illegally dismissed by DEF Corp. effective at the close of business hours of December
29, 2009.
IV(1). He can file a complaint for illegal dismissal without any legal bar within _________.
(1%)
(A) three (3) years
(B) four (4) years
(C) five (5) years
(D) six (6) years
(E) ten (10) years
IV(2). If he has money claims against DEF Corp., he can make the claim without any legal bar
within _________. (1%)
(A) three (3) years
(B) four (4) years
(C) five (5) years
(D) six (6) years
(E) ten (10) years
V. After vainly struggling to stay financially afloat for a year, LMN Corp. finally gave up and closed
down its operations after its major creditors filed a petition for LMN's insolvency and liquidation.
In this situation, LMN's employees are entitled to _________ as separation pay. (1%)
(A) one-half month pay for every year of service

(B) one month pay for every year of service

(C) one-half month pay
(D) one month pay
(E) no separation pay at all
VI. At age 65 and after 20 years of sewing work at home on a piece rate basis for PQR Garments, a
manufacturer-exporter to Hongkong, Aling Nena decided it was time to retire and to just take it easy.
Is she entitled to retirement pay from PQR? (1%)
(A) Yes, but only to one month pay.
(B) No, because she was not a regular employee.
(C) Yes, at the same rate as regular employees.
(D) No, because retirement pay is deemed included in her contracted per piece pay.
(E) No, because homeworkers are not entitled to retirement pay.
VII. The minimum wage prescribed by law for persons with disability is __________. (1%)
(A) 50% of the applicable minimum wage
(B) 75% of the applicable minimum wage
(C) 100% of the applicable minimum wage
(D) the wage that the parties agree upon, depending on the capability of the disabled.
(E) the wage that the parties agree upon, depending on the capability of the disabled, but not
less than 50% of the applicable minimum wage
VIII. What is the financial incentive, if any, granted by law to SPQ Garments whose cutters and sewers
in its garments-for-export operations are80% staffed by deaf and deaf-mute workers? (1%)
(A) Additional deduction from its gross income equivalent to 25% of amount paid as salaries to
persons with disability.
(B) Additional deduction from its gross income equivalent to 50% of the direct costs of the
construction of facilities for the use of persons with disability.
(C) Additional deduction from its net taxable income equivalent to 5% of its total payroll
(D) Exemption from real property tax for one (1) year of the property where facilities for
persons with disability have been constructed.
(E) The annual deduction under (A), plus a one-time deduction under (B).
IX. Mr. Ortanez has been in the building construction business for several years. He asks you, as his
new labor counsel, for the rules he must observe in considering regular employment in the construction
industry.
You clarify that an employee, project or non-project, will acquire regular status if __________. (1%)
(A) he has been continuously employed for more than one year
(B) his contract of employment has been repeatedly renewed, from project to project, for several
years
(C) he performs work necessary and desirable to the business, without a fixed period and

without reference to any specific project or undertaking

(D) he has lived up to the company's regularization standards
(E) All of the above.
X. Samahang Tunay, a union of rank-and-file employees lost in a certification election at Solam
Company and has become a minority union. The majority union now has a signed CBA with the
company and the agreement contains a maintenance of membership clause.
What can Samahang Tunay still do within the company as a union considering that it still has members
who continue to profess continued loyalty to it? (1%)
(A) It can still represent these members in grievance committee meetings.
(B) It can collect agency fees from its members within the bargaining unit.
(C) It can still demand meetings with the company on company time.
(D) As a legitimate labor organization, it can continue to represent its members on non-CBArelated matters.
(E) None of the above.
(F) All of the above.
XI. The members of the administrative staff of Zeta, a construction company, enjoy ten (10) days of
vacation leave with pay and ten (10) days of sick leave with pay, annually. The workers' union,
Bukluran, demands that Zeta grant its workers service incentive leave of five (5) days in compliance
with the Labor Code.
Is the union demand meritorious? (1%)
(A) Yes, because non-compliance with the law will result in the diminution of employee
benefits.
(B) Yes, because service incentive leave is a benefit expresslyprovided under and required by
the Labor Code.
(C) No, because Zeta already complies with the law.
(D) No, because service incentive leave is a Labor Code benefit that does not apply in the
construction industry.
(E) Yes, because Labor Code benefits are separate from those voluntarily granted by the
company.
XII. Upon the expiration of the first three (3) years of their CBA, the union and the company
commenced negotiations. The union demanded that the company continue to honor their 30-day union
leave benefit under the CBA. The company refused on the ground that the CBA had already expired,
and the union had already consumed their union leave under the CBA.
Who is correct? (1%)
(A) The company is correct because the CBA has expired; hence it is no longer bound to
provide union leave.
(B) The company is correct because the union has already consumed the allotted union leave
under the expired CBA.
(C) The union is correct because it is still the bargaining representative for the next two (2)

years.
(D) The union is correct because union leaves are part of the economic terms that continue to
govern until new terms are agreed upon.
(E) They are both wrong.
XIII. Hector, a topnotch Human Resource Specialist who had worked in multinational firms both in the
Philippines and overseas, was recruited by ABC Corp., because of his impressive credentials. In the
course of Hector's employment, the company management frequently did not follow his
recommendations and he felt offended by this constant rebuff.
Thus, he toyed with the idea of resigning and of asking for the same separation pay that ABC earlier
granted to two (2) department heads when they left the company.
To obtain a legal opinion regarding his options, Hector sent an email to ABC's retained counsel,
requesting for advice on whether the grant by the company of separation pay to his resigned colleagues
has already ripened into a company practice, and whether he can similarly avail of this benefit if he
resigns from his job.
As the company's retained legal counsel, how will you respond to Hector? (1%)
(A) I would advise him to write management directly and inquire about the benefits he can
expect if he resigns.
(B) I would advise him that the previous grant of separation pay to his colleagues cannot be
considered a company practice because several other employees had resigned and were not
given separation pay.
(C) I would advise him to ask for separation pay, not on account of company practice, but on the
basis of discrimination as he is similarly situated as the two resigned department heads who
were paid their separation pay.
(D) I would not give him any legal advice because he is not my client.
(E) I would maintain that his question involves a policy matter beyond the competence of a
legal counsel to give.
XIV. Aleta Quiros was a faculty member at BM Institute, a private educational institution. She was
hired on a year-to-year basis under the probationary employment period provision of the Manual of
Regulations for Private Schools. The terms and conditions of her engagement were defined under her
renewable yearly contract.
For reasons of its own, BM Institute no longer wanted to continue with Aleta's teaching services. Thus,
after the contract for her second year expired, BM Institute advised Aleta that her contract would no
longer be renewed. This advice prompted Aleta to file a complaint for illegal dismissal against BM
Institute.
Will the complaint prosper? (1%)
(A) Yes, because no just or authorized cause existed for the termination of her probationary
employment.
(B) Yes, because under the Labor Code, Aleta became a regular employee after 6 months and
she may now only be dismissed for cause.
(C) No, because there was no dismissal to speak of. Her employment was automatically
terminated upon the expiration of her year-to-year fixed term employment.

(D) No, because BM Institute may dismiss its faculty members at will in the exercise of its
academic freedom.
(E) No, because Aleta was still on probationary employment.
XV. Robert, an employee of ABC Company, is married to Wanda. One day, Wanda visited the company
office with her three (3) emaciated minor children, and narrated to the Manager that Robert had been
squandering his earnings on his mistress, leaving only a paltry sum for the support of their children.
Wanda tearfully pleaded with the Manager to let her have one half of Robert's pay every payday to
ensure that her children would at least have food on the table. To support her plea, Wanda presented a
Kasulatan signed by Robert giving her one half of his salary, on the condition that she would not
complain if he stayed with his mistress on weekends.
If you were the Manager, would you release one half of Robert's salary to Wanda? (1%)
(A) No, because an employer is prohibited from interfering with the freedom of its employees to
dispose of heir wages.
(B) Yes, because of Robert's signed authorization to give Wanda one half of his salary.
(C) No, because there is no written authorization for ABC Company to release Robert's salary to
Wanda.
(D) Yes, because it is Robert's duty to financially support his minor children.
(E) No, because Robert's Kasulatan is based on an illegal consideration and is of doubtful legal
validity.
XVI. Ricardo operated a successful Makati seafood restaurant patronized by a large clientele base for
its superb cuisine and impeccable service. Ricardo charged its clients a 10% service charge and
distributed 85% of the collection equally among its rank-and-file employees, 10% among managerial
employees, and 5% as reserve for losses and break ages. Because of the huge volume of sales, the
employees received sizeable shares in the collected service charges.
As part of his business development efforts, Ricardo opened a branch in Cebu where he maintained the
same practice in the collection and distribution of service charges. The Cebu branch, however, did not
attract the forecasted clientele; hence, the Cebu employees received lesser service charge benefits than
those enjoyed by the Makati-based employees. As a result, the Cebu branch employees demanded
equalization of benefits and filed a case with the NLRC for discrimination when Ricardo refused their
demand.
XVI(l) Will the case prosper? (1%)
(A) Yes, because the employees are not receiving equal treatment in the distribution of service
charge benefits.
(B) Yes, because the law provides that the 85% employees' share in the service charge collection
should be equally divided among all the employees, in this case, among the Cebu and Makati
employees alike.
(C) No, because the employees in Makati are not similarly situated as the Cebu employees with
respect to cost of living and conditions of work.
(D) No, because the service charge benefit attaches to the outlet where service charges are
earned and should be distributed exclusively among the employees providing service in the
outlet.
(E) No, because the market and the clientele the two branches are serving, are different.

XVI(2). In order to improve the Cebu service and sales, Ricardo decided to assign some of its Makatibased employees to Cebu to train Cebu employees and expose them to the Makati standard of service.
A chef and three waiters were assigned to Cebu for the task. While in Cebu, the assigned personnel
shared in the Cebu service charge collection and thus received service charge benefits lesser than what
they were receiving in Makati.
If you were the lawyer for the assigned personnel, what would you advice them to do? (1%)
(A) I would advise them to file a complaint for unlawful diminution of service charge benefits
and for payment of differentials.
(B) I would advise them to file a complaint for illegal transfer because work in Cebu is highly
prejudicial to them in terms of convenience and service charge benefits.
(C) I would advise them to file a complaint for discrimination in the grant of service charge
benefits.
(D) I would advise them to accept their Cebu training assignment as an exercise of the
company's management prerogative.
(E) I would advise them to demand the continuation of their Makati-based benefits and to file a
complaint under (B)above if the demand is not heeded.
XVII. Constant Builders, an independent contractor, was charged with illegal dismissal and nonpayment of wages and benefits of ten dismissed employees. The complainants impleaded as corespondent 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.
-0-0-0MARTIN S. VILLARAMA, JR.
Chairperson
2012 Bar Examinations Committee
PLEASE CHECK THAT THIS SET CONTAINS TWENTY TWO (22) PAGES (INCLUDING
THIS PAGE).
WARNING: NOT FOR SALE OR UNAUTHORIZED USE
LABOR LAW
1. The workers worked as cargadores at the warehouse and ricemills of farm A for several years.
As cargadores, they loaded, unloaded and pilled sacks of rice from the warehouse to the cargo
trucks for delivery to different places. They were paid by Farm A on a piece-rate basis. Are the
workers considered regular employees?
a. Yes, because Farm A paid wages directly to these workers without the intervention of
any third party independent contractor;
b. Yes, their work is directly related, necessary and vital to the operations of the farm;
c. No, because Farm A did not have the power to control the workers with respect to the
means and methods by which the work is to be accomplished;
d. A and B.
2. The following are excluded from the coverage of Book III of the Labor Code of the Philippines
(Conditions of employment) except:
a. Field personnel;
b. Supervisors;
c. Managers;
d. Employees of government-owned and controlled corporations.
3. Work may be performed beyond eight (8) hours a day provided that:

a. Employee is paid for overtime work an additional compensation wquivalent to his

regular wage plus at least 25% thereof;
b. Employee is paid for overtime work an additional compensation equivalent to his regular
wage plus at least 30% thereof;
c. Employee is paid for overtime work an additional compensation equivalent to his regular
wage plus at least 20% thereof;
d. None of the above.
4. May the employer and employee stipulate that the latters regular or basic salary already
includes the overtime pay, such that when the employee actually works overtime he cannot
claim overtime pay?
a. Yes, provided there is a clear written agreement knowingly and freely entered into by the
employees;
b. Yes, provided the mathematical result shows that the agreed legal wage rate and the
overtime pay, computed separately, are equal to or higher than the separate amounts
legally due;
c. No, the employer and employee cannot stipulate includes the overtime pay;
d. A and B.
5. The following are instances where an employer can require an employee to work overtime,
except:
a. In case of actual or impending emergencies caused by serious accident, fire, flood,
typhoon, earthquake, epidemic or other disaster or calamity to prevent loss of life and
property, or imminent danger to public safety;
b. When the country is at war or when other national or local emergency has been declared
by the national assembly or the chief executive;
c. When there is urgent work to be performed on machines, installations, or equipment or
some other cause of similar nature;
d. Where the completion or contribution of the work started before the eight hour is
necessary to prevent serious obstruction or prejudice to the business or operations of the
employer.
6. Z owns and operates a carinderia. His regular employees are his wife, his two (2) children, the
family maid, a cook, two (2) waiters, a dishwasher and a janitor. The family driver occasionally
works for him during store hours to make deliveries. On April 09, the dishwasher did not report
for work. The employer did not give his pay for that day. Is the employer correct?
a. No, because employees have a right to receive their regular daily wage during regular
holidays;
b. Yes, because April 09 is not regular holidays;
c. Yes, because of the principle of "a fair days wage for a fair days work";
d. Yes, because he employs less than ten (10) employees.
7. For misconduct or improper behavior to be just cause for dismissal, the following guidelines
must be met, except:

a. It must be serious;
b. It must relate to the performance of the employees duties;
c. It should not be used as a subterfuge for causes which are improper, illegal or
unjustified;
d. It must show that the employee has become unfit to continue working for the employer.
8. The Company lawyer sent a memo to the employee informing him of the specific charges
against him and giving him an opportunity to explain his side. In a subsequent letter, the
employee was informed that, on the basis of the results of the investigation conducted, his
written explanation, the written explanation of other employees as well as the audit report, the
management has decided to terminate his employment. The employee contended that his
termination was illegal for lack of procedural due process. Is the employees contention correct?
a. No, the employees written explanation and written explanation of the other employees
were sufficient basis for the employer to terminate his employment;
b. Yes, because the employer did not abide by the two-notice rule;
c. Yes, because he was not properly afforded the chance to explain his side in a conference;
d. No, because the written notice of the cause of dismissal afforded him ample opportunity
to be heard and defend himself, and the written notice of the decision to terminate him
which states the reasons therefor, complies with the two-notice rule.
9. The Supreme Court categorically declared that separation pay shall be allowed as a measure of
social justice only in those instances where the employee is validly dismissed for cause other
than:
a. Serious Misconduct;
b. Gross and habitual neglect of duties;
c. Willful disobedience to lawful orders;
d. Fraud or willful breach of trust.
10.
K is a legitimate contractor hired by G for six (6) months. On the third month, G
remitted to K the salaries and wages of the employees. However, K absconded with the money
leaving the employees unpaid. The disgruntled employees demanded from G the payment of
their salaries. Is G liable?
a. No, because G has already remitted the employees salaries to K, validly excusing G
from liablity;
b. Yes, because he is jointly and solidarily liable for whatever monetary claims the
employees may have against K;
c. Yes, because of the principle of "a fair days wage for a fair days work";
d. B and C.
11.
Corporation X is owned by Ls family. L is the President. M, Ls wife, occasionally gives
loans to employees of Corporation X. It was customary that loan payment were paid to M by
directly deducting from the employees monthly salary. Is this practice of directly deducting
payments of debts from the employees wages allowed?
a. Yes, because where the employee is indebted to the employer, it is sanctioned by the law

on compensation under Article 1706 of the Civil Code;

b. Yes, because it has already become customary such that no express authorization is
required;
c. No, because an employees payment of obligation to a third person is deductible from
the employees wages if the deduction is authorized in writing;
d. No, because Article 116 of the Labor Code absolutely prohibits the withholding of
wages and kickbacks. Article 116 provides for no exception.
12.
Union X staged a strike in front of Company B because of A CBA deadlock. During the
strike, Company B hired replacement workers. Upon resuming their employment, the strikers
found that Company B hired replacement workers in their place. Is Company B obliged to
reinstate the returning workers?
a. No, because the strike caused work stoppage;
b. No, because it is a valid exercise of management prerogative;
c. Yes, because workers who go on strike do not lose their employment status;
d. Yes, because workers are entitled to such retention every time during a valid strike.
13.

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

a. There is a bargaining deadlock;
b. There is a prevailing intra-union dispute;
c. The company engaged in unfair labor practice;
d. Theirs is a flagrant violation of CBAs economic provisions.

14.
Iya, 15 years old, signed up to model a clothing brand. She worked from 9am to 4pm on
weekdays and 1pm to 6pm on Saturdays for two (2) weeks. She was issued a child working
permit under RA 9231. Which of the following statements is the most accurate?
a. Working permit for Iyas employment is not required because the job is not hazardous;
b. Her work period exceeds the required working hours for children aged 15 years old;
c. To require a 15-year old to work without obtaining the requisite working permit is a
form of child labor;
d. Iya, who was engaged in a work that is not child labor, is a working child.
15.
Under employees compensation, the so-called "Theory of Increased Risks" is relevant
when:
a. There is a need to categorize a disability as permanent and total;
b. It is not clear as to how an injury was sustained;
c. The ailment or sickness is not classified as an occupational disease;
d. There is a prima facie finding that the employee had willful intention to hurt himself.
16.

Which of the frollowing injuries/death is not compensable?

a. Injuries sustained by a technician while at a field trip initiated by the Union and
sponsored by the Company;

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

c. Death of a bank teller because of a bank robbery;
d. Death of a professor who was hit by a van on his way home from work.
17.
The provisions of the Labor Code on the Working Conditions and Rest Periods of
employees are inapplicable to the following employees, except :
a. A supervisor in a fast food chain;
b. A family driver;
c. A laborer without any fixed salary, but receving a compensation depending upon the
result of his work;
d. A contractual employee.
18.
Bugay, an employee with only six (6) months of service, was dismissed due to
redundancy. He is, under Art. 283 of the Labor Code, entitled to a separation pay of:
a. One (1) month pay;
b. One (1) year pay, Art. 283 of the Labor Code being explicit that "a fraction of at least six
(6) months shall be considered one ( 1) whole year";
c. Six (6) months pay;
d. One (1) year and six (6) months pay, as Art. 4 of the Labor Code mandates that "(a)ll
doubts in the implementation and interpretation of this Code xxx shall be resolved in
favor of labor".
19.

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

a. The Secretary of Labor and Employment;
b. The POEAAdministrator;
c. A and B 'concurrently;
d. Neither of them.

20.
The State shall allow the deployment of overseas Filipino workers only in countries
where the rights of Filipino migrant workers are protected. Which of the following is not a
guarantee, on the part of the receiving country, for the protection of the rights of OFW's?
a. It has existing labor and social laws protecting the rights of migrant workers;
b. It promotes and facilitates re-integration of migrants into the national mainstream;
c. It is a signatory to and/or ratifier of multilateral conventions, declarations or resolutions
relating to the protection of migrant workers;
d. It has concluded a bilateral agreement or arrangement with the government on the
protection of the rights of overseas Filipino workers.
21.
Which is not a procedural requirement for the correction of wage distortion in an
unorganized establishment?
a. Both employer and employee will attempt to correct the distortion;
b. Settlement of the dispute through National Conciliation and Mediation Board (NCMB);

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

dispute through CBA dispute mechanism;
d. A and B.
22.

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

a. 16-year old child actor as a cast member in soap opera working 8 hours a day, 6 days a
week;
b. A 17-year old in deep sea-fishing;
c. A 17 -year old construction worker;
d. A 17-year old assistant cook in a family restaurant.

23.
The most important factor in determining the existence of an employer-employee
relationship is the:
a. Power to control the method by which employees are hired and selected;
b. Power to control the manner by which employees are transferred from one job site to
another;
c. Power to control the results achieved by giving guidelines to the employees;
d. Power to control the results to be achieved and the employee's method of achieving the
task.
24.
A neighbor's gardener comes to you and asks for help because his employer withheld his
salary for two (2) months amounting to P4,000.00. Where will you advise him to file his
complaint?
a. Labor Arbiter;
b. DOLE Regional Director;
c. Conciliator/Mediator;
d. MTC Judge.
25.
What is the nature of the liabilities of the local recruitment agency and its foreign
principal?
a. The local agency is jointly liable with the foreign principal; severance of relations
between the local agent and the foreign principal dissolves the liability of the local agent
recruiter;
b. Local agency is solidarily liable with the foreign principal; severance of relations
between the local agent and the foreign principal dissolves the liability of the foreign
principal. only;
c. Local agency is solidarily liable with the foreign principal; severance of relations
between the local agent and foreign principal does not affect the liability of the foreign
principal;
d. Local agency is jointly liable with the foreign principal; severance of the relations
between the local agent and the foreign principal does not affect the liability of the local
recruiter.
26.

Which phrase is the most accurate to complete the statement - A private employment

agency is any person or entity engaged in the recruitment and placement of workers:
a. for a fee, which is charged directly from the workers.
b. for a fee, which is charged directly from employers.
c. for a fee, which is charged directly or indirectly from workers, employers or both.
d. for a fee, which is charged from workers or employers, which covers both local and
overseas employment.
27.

Who has jurisdiction over a money claim instituted by an overseas Filipino worker?
a. Labor Arbiter;
b. National Labor Relations Commission;
c. Labor Arbiter concurrently with the regular courts.;
d. National Labor Relations Commission concurrently with the regular courts.

28.

Which of the following is not a valid wage deduction?

a. Where the worker was insured with his consent by the employer, and the deduction is
allowed to recompense the employer for the amount paid by him as the premium on the
insurance;
b. When the wage is subject of execution or attachment, but only for debts incurred for
food, shelter, clothing and medical attendance;
c. Payment for lost or damaged equipment provided the deduction does not exceed 25/o of
the employee's salary for a week;
d. Union dues.

29.
Is the contractor a necessary party in a case where labor contracting is the main issue
and labor-only contracting is found to exist?
a. Yes, the contractor is necessary in the full determination of the case as he is the
purported employer of the worker;
b. Yes, no full remedy can be granted and executed without impleading the purported
contractor;
c. No, the contractor becomes a mere agent of the employer-principal in labor contracting;
d. No, the contractor has no standing in a labor contracting case.
30.

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

a. Stephanie, a probationary employee of a cooperative bank who rendered six (6) months
of service during the calendar year before filing her resignation;
b. Rafael, the secretary of a Senator;
c. Selina, a cook employed by and who lives with an old maid and who also tends the sarisari store of the latter;
d. Roger, a house gardener who is required to report to work only thrice a week.

31.

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

a. managerial employees;

b. field personnel;
c. government workers;
d. part-time workers.
32.
A wage order may be reviewed on appeal by the National Wages and Productivity
Commission under these grounds, except:
a. grave abuse of discretion;
b. non-conformity with prescribed procedure;
c. questions of law;
d. gross under or over-valuation.
33.

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

a. The employer;
b. The legitimate labor organization;
c. The Federation on behalf of the chapter;
d. The Workers' Association.

34.

The following are grounds to deny the Petition for Certification Election, except:
a. The petitioning union is illegitimate or improperly registered;
b. Non-appearance for two consecutive schedules before the Med-Arbiter by petitioning
union;
c. The inclusion of members outside the bargaining unit;
d. Filed within an existing election bar.

35.
In response to Company X's unfair labor practices, a union officer instructed its
members to stop working and walk out of the company premises. After three (3) hours, they
voluntarily returned to work.
Was there a strike and was it a valid activity?
a. Yes, it was a strike; yes, it was a valid activity;
b. Yes, it was a strike; no, it was not a valid activity;
c. No, it was not a strike; yes, it was a valid activity;
d. No, it was not a strike; no, it was not a valid activity.
36.
Which of the following is not considered an employer by the terms of the Social
Security Act?
a. A self-employed person;
b. The government and any of its political subdivisions, branches or instrumentalities,
including corporations owned or controlled by the government;
c. A natural person, domestic or foreign, who carries on in the Philippines, any trade,
business, industry, undertaking or activity of any kind and uses the services of another
person who is under his orders as regards the employment;
d. A foreign corporation.

37.
Jennifer, a receptionist at Company X, is covered by the SSS. She was pregnant with her
fourth child when she slipped in the bathroom of her home and had a miscarriage. Meanwhile,
Company X neglected to remit the required contributions to the SSS. Jennifer claims maternity
leave benefits and sickness benefits. Which of these two may she claim?
a. None of them;
b. Either one of them;
c. Only maternity leave benefits;
d. Only sickness benefits.
38.
H files for a seven-day paternity leave for the purpose of lending support to his wife, W,
who suffered a miscarriage through intentional abortion. W also filed for maternity leave for
five weeks. H and W are legally married but the latter is with her parents, which is a few blocks
away from H's house. Which of the following statements is the most accurate?
a. Paternity leave shall be denied because it does not cover aborted babies;
b. Paternity leave shall be denied because W is with her parents;
c. Maternity leave shall be denied because it does not cover aborted babies;
d. Maternity leave shall be denied because grant of paternity leave bars claim for maternity
leave.
39.
Which of the following is not a privilege of a person with disability under the Magna
Carta for disabled persons?
a. At least 20%_ discount on purchase of medicines in all drugstores;
b. Free transportation in public railways;
c. Educational assistance in public and private schools through scholarship grants;
d. A and C.
40.

Which of the following is not a regular holiday?

a. New Year's Eve;
b. Eidil Fitr;
c. Father's Day;
d. lndepenaence Day.

41.

Which is a characteristic of a labor-only contractor?

a. Carries an independent business different from the employer's;
b. The principal's liability extends to all rights, duties and liabilities under labor standards
laws including the right to self-organization;
c. No employer-employee relationship;
d. Has sufficient substantial capital or investment in machinery, tools or equipment directly
or intended to be related to the job contracted.

42.

What is not an element of legitimate contracting?

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

b. It is stipulated that the performance of a specific job, work or service must be within a
definite predetermined period;
c. The performance of specific job, work or service has to be completed either within or
outside the premises of the principal;
d. The principal has control over the performance of a specific job, work or service.
43.

Which is a characteristic of the learner?

a. A person is hired as a trainee in an industrial occupation;
b. Hired in a highly technical industry;
c. Three (3) months practical on-the-job training with theoretical instruction;
d. At least 14 years old.

44.

What is not a prerequisite for a valid apprenticeship agreement?

a. Qualifications of an apprentice are met;
b. A duly executed and signed apprenticeship agreement;
c. The apprenticeship program is approved by the Secretary of Labor;
d. Included in the list of apprenticeable occupation of TESDA.

45.

Which is not a constitutional right of the worker?

a. The right to engage in peaceful concerted activities;
b. The right to enjoy security of tenure;
c. The right to return on investment;
d. The right to receive a living wage.

46.

Employee-employer relationship exists under the following, except :

a. Jean, a guest relations officer in a nightclub and Joe, the nightclub owner;
b. Atty. Sin' Cruz, who works part-time as the resident in house lawyer of X Corporation;
c. Paul, who works as registered agent on commission basis in an insurance company;
d. Jack and Jill, who work in X Company, an unregistered Association.

47.
With respect to legitimate independent contracting, an employer or one who engages the
services of a bona fide independent contractor is a. An indirect employer, by operation of law, of his contractor's employees; he becomes
solidarily liable with the contractor not only for unpaid wages but also for all the
rightful! claims of the employees under the Labor Code;
b. Treated as direct employer of his contractor's employees in all instances; he becomes
subsidiarily liable with the contractor only in the event the latter fails to pay the
employees' wages and for violation of labor standard laws;
c. An indirect employer, by operation of law, of his contractor's employees; he becomes
solidarily liable with the contractor only in the event the latter fails to pay the employees'
wages and for violation of labor standard laws;
d. Treated as direct employer of his contractor's employees in all instances; the principal

becomes solidarily liable with the contractor not only for unpaid wages but also for all
the rightful claims of the employees under the Labor Code;
48.
Kevin, an employee of House of Sports, filed a complaint with the DOLE requesting the
investigation and inspection of the said establishment for labor law violations such as
underpayment of wages, non-payment of 13th month pay, non-payment of rest day pay,
overtime pay, holiday pay, and service incentive leave pay. House of Sports alleges that DOLE
has no jurisdiction over the employees' claims where the aggregate amount of the claims of each
employee exceeds P5,000.00, whether or not accompanied with a claim for reinstatement. Is the
argument of House of Sports tenable?
a. Yes, Article 1 ~9 of the Labor Code shall apply, and thus, the Labor Arbiter has
jurisdiction;
b. No, Article 128 (b) of the Labor Code shall apply, and thus, the DOLE Regional Director
has jurisdiction;
c. Yes, if the claim exceeds P5,000.00, the DOLE Secretary loses jurisdiction;
d. No, a voluntarily arbitrator has jurisdiction because the matter involved is a grievable
issue.
49.

Which of the following is not compensable as hours worked?

a. Travel away from home;
b. Travel from home to work;
c. Working while on call;
d. Travel that is all in a day's work.

50.
It is defined as any union or association of employees which exists in whole or in part
for the purpose of collective bargaining with employers concerning terms and conditions of
employment.
a. Bargaining representative;
b. Labor organization;
c. Legitimate labor organization;
d. Federation.
51.
This process refers to the submission of the dispute to an impartial person for
determination on the basis of the evidence and arguments of the parties. The award is
enforceable to the disputants.
a. Arbitration;
b. Mediation;
c. Conciliation;
d. Reconciliation.
52.
The Regional Director or his representative may be divested of his enforcement and
visitorial powers under the exception clause of Article 128 of the Labor Code and, resultantly,
jurisdiction may be vested on the labor arbiter when three (3) elements are present. Which of
the following is not one of the three (3) elements?

a. Employer contests the findings of the labor regulations officers and raises issues thereon;
b. In order to resolve any issues raised, there is a need to examine evidentiary matters;
c. The issues raised should have been verifiable during the inspection;
d. The evidentiary matters are not verifiable in the normal course of inspection .
53.

In what instances do labor arbiters have jurisdiction over wage distortion cases?
a. When jurisdiction is invoked by the employer and employees in organized
establishments;
b. When the case is unresolved by Grievance Committee;
c. After the panel of voluntarily arbitrators has made a decision and the same is contested
by either party;
d. In unorganized establishments when the same is not voluntarily resolved by the parties
before the NCMM.

54.

Is a termination dispute a grievable issue?

a. Yes, if the dismissal arose out of the interpretation or Implementation of the CBA;
b. No, once there's actual termination, the issue is cognizable by a Labor Arbiter;
c. Yes, it is in the interest of the parties that the dispute be resolved on the establishment
level;
d. No, a voluntary arbitrator must take cognizance once termination is made effective.

55.
Peter worked for a Norwegian cargo vessel. He worked as a deckhand, whose primary
duty was to assist in the unloading and loading of cargo and sometimes, assist in cleaning the
ship. He signed a five-year contract starting in 2009. In 2011, Peter's employers began treating
him differently. He was often maltreated and his salary was not released on time. These were
frequently protested to by Peter. Apparently exasperated by his frequent protestations, Peter's
employer, a once top official in China, suddenly told him that his services would be terminated
as soon as the vessel arrived at the next port, in Indonesia. Peter had enough money to go back
home, and immediately upon arriving, he filed a money claim with the NLRC against his
former employer's local agent. Will Peter's case prosper?
a. Yes, he is entitled to full reimbursement of his placement fee, with' interest at 12/o per
annum, plus salary for the unexpired portion of his employment contract or for three (3)
months for every year of the unexpired portion, whichever is higher;
b. Yes, he is entitled to full reimbursement of his placement fee, with interest at 12% per
annum, plus his salary for the unexpired portion of his employment contract or for three
(3) months for every year of the unexpired portion, whichever is less;
c. Yes, he is entitled to his salaries for the unexpired portion of his employment contract,
plus full reimbursement of his placement fee with interest at 12/o per annum;
d. Yes, he is entitled to his salaries for three (3) months for every year of the unexpired
portion of his employment contract, plus full reimbursement of his placement fee with
interest at 12/o per annum.
56.

The following are exempt from the rules on minimum wages, except:
a. Household or domestic helpers; .

b. Homeworkers engaged in needle work;

c. Workers' in duly registered establishment in the cottage industry;
d. Workers in the duly registered cooperative.
57.
Which of the following is a right and/or condition of membership in a labor
organization?
a. No arbitrary or excessive initiation fees shall be required of the members of a legitimate
labor organization nor shall arbitrary, excessive or oppressive fine and forfeiture be
imposed;
b. The members shall be entitled to full and detailed reports from their officers and
representatives of all financial transactions as provided for in the constitution and bylaws
of the organization;
c. No labor organization shall knowingly admit as members or continue in membership any
individual who belongs to a subversive organization or who is engaged directly or
indirectly in any subversive activity;
d. All of the above.
58.

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

a. can invoke the right to collective bargaining because it is a fundamental right under the
Constitution.
b. can invoke the right to collective bargaining because they are permitted by law.
c. cannot invoke the right to collective bargaining because each member is considered an
owner.
d. cannot invoke the right to collective bargaining because they are expressly prohibited by
law.

59.

Which of the following is not true in unfair labor practices committed by an employer?
a. Unfair labor practices cannot be committed unless the union has been formed and
registered;
b. The commission of unfair labor practice requires an employer-employee relationship;
c. The offense of unfair labor practice prescribes in one ( 1) year;
d. The list of unfair labor practices is exclusive.

60.
Which of the following is correct with respect to the extent of the application of security
of tenure?
a. It applies to managerial and to all rank-and-file employees i f not yet regular, but not to
management trainees;
b. It applies to managerial and to all rank-and-file employees including those under
probation;
c. It applies to seasonal and project employees, if they are hired repeatedly;
d. It applies to all kinds of employees except those employed on a part-time basis.
61.
Which of the following is not a procedural due process requirement in the termination of
an employee for just cause?

a. A written notice to the employee specifying the grounds for his termination;
b. A written notice to the DOLE at least thirty (30) days before the effectivity of
termination;
c. A written notice to the employee stating that upon consideration of the circumstances,
grounds have been established to justify his termination;
d. An opportunity for the employee to present his evidence.
62.
Under current jurisprudence, when the dismissal is for a just or authorized cause but due
process is not observed, the dismissal is said to be:
a. Void for denial of due process; hence, the employee should be reinstated;
b. Void for lack. of due process, the employee should be paid full backwages;
c. Valid, for the dismissal is with just/authorized cause, but the employer shall be liable for
nominal damages;
d. Valid, even if due process is not observed, hence reinstatement should not be ordered.
63.

What is the quantum of evidence required in labor cases?

a. The degree of proof which produces the conclusion that the employee is guilty of the
offense charged in an unprejudiced mind;
b. Such amount of relevant evidence which a reasonable mind might accept as adequate to
justify a conclusion;
c. That degree of proof which is greater in weight than the opposing party's evidence;
d. Such evidence which must be highly and substantially more probable to be true than not
which convinces the trier of facts of its factuality.

64.

Which of the following statements is the most accurate?

a. Domestic helpers with monthly income of at least P3,000.00 are compulsory members of
the SSS Law;
b. House helpers with monthly income of at least P2,000.00 are compulsory members of
the SSS Law;
c. Domestic helpers, 55 years of age and who worked for at least five (5) years, are covered
by the Retirement Pay Law under optional retirement, in the absence of a CBA;
d. Domestic helpers in the personal service of another are not entitled to 13th month pay.

65.

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

a. immediately executory;
b. requires a writ of execution;
c. is immediately executory insofar as the reinstatement of the employee is concerned;
d. is stayed by the appeal of the employer and posting of appeal bond.

66.

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

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

b. Claim for back wages filed by overseas contract worker Xena against her Saudi Arabian
employer;
c. Contest for the position of MG Union President brought by Ka Joe, the losing candidate
in the recent union elections;
d. G contesting his removal as Chief Executive Officer of Company Z.
67.
J refused to comply with his deployment assignment with K, a manning agency. K filed
a complaint against him for breach of contract before the Philippine Overseas Employment
Administration (POEA). The POEA penalized J with one (1) year suspension from overseas
deployment. On appeal, the suspension was reduced to six (6) months by the Secretary of Labor.
Is the remedy of appeal still available to J and where should he file his appeal?
a. Yes, he can file an appeal before the Court of Appeals via a Petition for Certiorari under
rule 65;
b. Yes, he can file an appeal before the Supreme Court via a Petition for Certiorari under
Rule 65;
c. Yes, he can file an appeal before the Office of the President since this is an
administrative case;
d. Yes, he can file an appeal before the National Labor Relations Commission because
there is an employer-employee relationship.
68.
R was employed as an instructor of Cruz College located in Santiago City, lsabela.
Pursuant to a stipulation in R's employment contract that the college has the prerogative to
assign R in any of its branches or tie-up schools as the necessity demands, the college proposed
to transfer him to llagan, a nearby town. R filed a complaint alleging constructive dismissal
since his re-assignment will entail an indirect reduction of his salary or diminution of pay
considering that additional allowance will not be given to cover for board and lodging expenses.
R, however, failed to prove that allowances were given in similar instances in the past. Is R's
contention that he will suffer constructive dismissal in view of the alleged diminution of benefit
correct?
a. Yes, such transfer should require an automatic additional allowance; the non-granting of
said allowance amounts to a diminution of benefit;
b. No, R failed to present evidence that the college committed to provide the additional
allowance or that they were consistently granting such benefit as to have ripened into a
practice which cannot be peremptorily withdrawn. Hence, there is no violation of the
rule against diminution of pay;
c. No, R's re-assignment did not amount to constructive dismissal because the college has
the right to transfer R based on contractual stipulation;
d. B and C.
69.

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

a. On the date the agreement to organize the un1on is signed by the majority of all its
members;
b. On the date the application for registration is duly filed with the Department of Labor.;
c. On the date appearing on the Certificate of Registration;

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

70.
How many years of service is the underground mine employee required to have rendered
in order to be entitled to retirement benefits?
a. 5;
b. 10;
c. 15;
d. 20.
71.
What is the prescriptive period of all criminal offenses penalized under the Labor Code
and the Rules Implementing the Labor Code?
a. 3 years;
b. 4 years;
c. 5 years;
d. 10 years.
72.

What is the nature of employment of househelpers?

a. Seasonal;
b. Fixed-term;
c. Regular;
d. Probationary.

73.
The appeal to the NLRC may be entertained only on any of the following grounds,
except:
a. If there is prima facie evidence of abuse of discretion on the part of the Labor Arbiter;
b. If the decision, order or award was secured through fraud or coercion, including graft
and corruption;
c. If made purely on questions of fact and law;
d. If serious errors in the findings of facts are raised which would cause grave or
irreparable damage or injury to the appellant
74.

The following are unfair labor practices of employers, except:

a. Interrogating its employees in connection with their membership in the union or their
union activities which hampers their exercise of free choice;
b. The grant of profit-sharing benefits to managers, supervisors and all rank-and-file
employees not covered by the CBA;
c. The cessation of a company's operations shortly after the organization of a labor union
and the resumption of business barely a month after;
d. Withdrawal by the employer of holiday pay benefits stipulated under a supplementary
agreement with the union.

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

a. Age;
b. Physical Deficiency;
c. Mental Deficiency;
d. Psychological Deficiency.
- NOTHING FOLLOWS HAND IN YOUR ANSWER SHEET.
THERE IS NO NEED TO RETURN THIS QUESTIONNAIRE TO HEAD WATCHER.
2012 BAR EXAMINATIONS
LABOR LAW
7 October 2012

3:30 P.M. - 5 P.M.

Set B
ESSAY TYPE QUESTIONS
INSTRUCTIONS

The following questionnaire consists of ten (1 0) questions (numbered I to X) contained in SIX (6)
pages.
Begin your answer to each numbered question on a separate page; an answer to a sub-question/s under
the same number n1ay be written continuously on the san1e page and succeeding pages until
completed.
Answer the question directly and concisely. Do not repeat the question. Write legibly.
HAND IN YOUR NOTEBOOK. THERE IS NO NEED TO RETURN THIS QUESTIONNAIRE TO
THE HEAD WATCHER.
GOODLUCK!!!
_____________________________________
MARTIN S. VILLARAMA, JR.
Chairperson
2012 Bar Examinations Committee
PLEASE CHECK THAT THIS SET CONTAINS SEVEN (7) PAGES (INCLUDING THIS
PAGE).
WARNING: NOT FOR SALE OR UNAUTHORIZED USE
I.
a. Distinguish Labor-Only contracting and Job-Only contracting. (5%)
b. A deadlock in the negotiations for the collective bargaining agreement between College X and
the Union prompted the latter, after duly notifying the DOLE, to declare a strike on November
5. The strike totally paralyzed the operations of the school. The Labor Secretary immediately
assumed jurisdiction over the dispute and issued on the same day (November 5) a return to work
order. Upon receipt of the order, the striking union officers and members, on November 1, filed
a Motion for Reconsideration thereof questioning the Labor Secretary's assumption of
jurisdiction, and continued with the strike during the pendency of their motion. On November

30, the Labor Secretary denied the reconsideration of his return to work order and further noting
the strikers' failure to immediately return to work, terminated their employment. In assailing the
Labor Secretary's decision, the Union contends that:
1. The Labor Secretary erroneously assumed jurisdiction over the dispute since College X
could not be considered an industry indispensable to national interest;
2. The strikers were under no obligation to immediately comply with the November 5
return to work order because of their then pending Motion for Reconsideration of such
order; and
3. The strike being legal, the employment of the striking Union officers and members
cannot be terminated. Rule on these contentions. Explain. (5%)
II.
In the Collective Bargaining Agreement (CBA) between Dana Films and its rank-and-file Union
(which is directly affiliated with MMFF, a national federation), a provision on the maintenance of
membership expressly provides that the Union can demand the dismissal of any member employee who
commits acts of disloyalty to the Union as provided for in its Constitution and By-Laws. The same
provision contains an undertaking by the Union (MMFF) to hold Dana Films free from any and all
claims of any employee dismissed. During the term of the CBA, MMFF discovered that certain
employee-members were initiating a move to disaffiliate from MMFF and join a rival federation,
FAMAS. Forthwith, MMFF sought the dismissal of its employee-members initiating the disaffiliation
movement from MMFF to FAMAS. Dana Films, relying on the provision of the aforementioned CBA,
complied with MMFF's request and dismissed the employees identified by MMFF as disloyal to it.
a. Will an action for illegal dismissal against Dana Films and MMFF prosper or not? Why? (5%))
b. What are the liabilities of Dana Films and MMFF to the dismissed employees, i f any? (5%)
III.
a. On August 01, 2008, Y, a corporation engaged in the manufacture of textile garments, entered
into a collective bargaining agreement with Union X in representation of the rank and-file
employees of the corporation. The CBA was effective up to June 20, 2011. The contract had an
automatic renewal clause which would allow the agreement after its expiry date to still apply
until both parties would have been able to execute a new agreement. On May 10, 2011, Union X
submitted to Y's management their proposals for the negotiation of a new CBA. The next day, Y
suspended negotiations with Union X since Y had entered into a merger with z, a corporation
also engaged in the manufacture of textile garments. Z assumed all the assets and liabilities of Y.
Union X filed a complaint with the Regional Trial Court for specific performance and damages
with a prayer for preliminary injunction against Y and Z and Z filed a Motion to Dismiss based
on lack of jurisdiction. Rule on the Motion to Dismiss. (5%)
b. X was one of more than one hundred (100) employees who were terminated from employment
due to the closure of Construction Corporation A. The Cruz family owned Construction
Company A. Upon the closure of Construction Company A, the Cruzes established Construction
Company B. Both corporations had the same president, the same board of directors, the same
corporate officers, and all the same subscribers. From the General Information Sheet filed by
both companies, it also showed that they shared the same address and/or premises. . Both
companies also hired the same accountant who prepared the books for both companies.
X and his co-employees amended their Complaint with the Labor Arbiter to hold Construction
Corporation 8 joint and severally liable with Construction Company A for illegal dismissal,

backwages and separation pay. Construction Company 8 interposed a Motion to Dismiss

contending that they are juridical entities with distinct and separate personalities from
Construction Corporation A and therefore, they cannot be held jointly and severally liable for
the money claims of workers who are not their employees. Rule on the Motion to Dismiss.
Should it be granted or denied? Why? (5%)
IV.
a. Juicy Bar and Night Club allowed by tolerance fifty (50) Guest Relations Officers (GROs) to
work without compensation in its establishment under the direct supervision of its Manager
from 8:00 P.M. To 4:00 A.M. everyday, including Sundays and holidays. The GROs, however,
were free to ply their trade elsewhere at anytime, but once they enter the premises of the night
club, they Were required to stay up to closing time. The GROs earned their keep exclusively
from commissions for food and drinks, and tips from generous customers. In time, the GROs
formed the Solar Ugnayan ng mga Kababaihang lnaapi (SUKI), a labor union duly registered
with DOLE. Subsequently, SUKI filed a petition for Certification Election in order to be
recognized as the exclusive bargaining agent of its members. Juicy Bar and Night Club opposed
the petition for Certification Election on the singular ground of absence of employer-employee
relationship between the GROs on one hand and the night club on the other hand. May the
GROs form SUKI as a labor organization for purposes of collective bargaining? Explain briefly.
(5%)
b. A spinster school teacher took pity on one of her pupils, a robust and precocious 12-year old
boy whose poor family could barely afford the cost of his schooling. She lives alone at her
house near the School after her housemaid had left. In the afternoon, she lets the boy do various
chores as cleaning, fetching water and all kinds of errands after school hours. She gives him rice
and P100.00 before the boy goes home at 7:00 every night. The school principal learned about it
and charged her with violating the law which prohibits the employment of children below 15
years of age. In her defense, the teacher stated that the work performed by her pupil is not
hazardous. Is her defense tenable? Why? (5%)
V.
The weekly work schedule of a driver is as follows: Monday, Wednesday, Friday - drive the family car
to bring and fetch the children to and from school. Tuesday, Thursday, Saturday - drive the family van
to fetch merchandise from suppliers and deliver the same to a boutique in a mall owned by the family.
a. Is the driver a house helper? (5%)
b. The same driver claims that for work performed on Tuesday, Thursday and Saturday, he should
be paid the minimum daily wage of a driver of a commercial establishment. Is the claim of the
driver valid? (5%)
VI.
a. For humanitarian reasons, a bank hired several handicapped workers to count and sort out
currencies. The handicapped workers knew that the contract was only for a period of six-months
and the same period was provided in their employment contracts. After six months, the bank
terminated their employment on the ground that their contract has expired. This prompted the
workers to file with the Labor Arbiter a complaint for illegal dismissal. Will their action
prosper? Why or why not? (5%)
b. Mam-manu Aviation Company (Mam-manu) is a new airline company recruiting flight
attendants for its domestic flights. It requires that the applicant be single, not more than 24 years

old, attractive, and familiar with three (3) dialects, viz: llonggo, Cebuano and Kapampangan.
lngga, 23 years old, was accepted as she possesses all the qualifications. After passing the
probationary period, lngga disclosed that she got married when she was 18 years old but the
marriage was already in the process of being annulled on the ground that her husband was
afflicted with a sexually transmissible disease at the time of the celebration of their marriage. As
a result of this revelation, lngga was not hired as a regular flight attendant. Consequently, she
filed a complaint against Mam-manu alleging that the pre-employment qualifications violate
relevant provisions of the Labor Code and are against public policy. Is the contention of lngga
tenable? Why? (5%)
VII.
a. Inggu, an electronics technician, worked within the premises of Pit Stop, an auto accessory
shop. He filed a Complaint for illegal dismissal, overtime pay and other benefits against Pit
Stop. Pit Stop refused to pay his claims on the ground that lnggu was not its employee but was
an independent contractor . . It was common practice for shops like Pit Stop to collect the
service fees from customers and pay the same to the independent contractors at the end of each
week. The auto shop explained that lnggu was like a partner who worked within its premises,
using parts provided by the shop, but otherwise lnggu was free to render service in the other
auto shops. On the other hand, lnggu insisted that he still was entitled to the benefits because he
was loyal to Pit Stop, it being a fact that he did not perform work for anyone else. Is lnggu
correct? Explain briefly. (5%)
b. The modes of determining an exclusive bargaining agreement are:
1. voluntary recognition
2. certification election
3. consent election
Explain briefly how they differ from one another. (5%)
VIII.
ABC Tomato Corporation, owned and managed by three (3) elderly brothers and two (2) sisters, has
been in business for 40 years. Due to serious business losses and financial reverses during the last five
(5) years, they decided to close the business.
a. As counsel for the corporation, what steps will you take prior to its closure? (3%)
b. Are the employees entitled to separation pay? (2%)
If the reason for the closure is due to old age of the brothers and sisters:
c. Is the closure allowed by law? (2%)
d. Are the employees entitled to separation benefits? (3%)
IX.
Dennis was a taxi driver who was being paid on the "boundary" system basis. He worked tirelessly for
Cabrera Transport Inc. for fourteen (14) years until he was eligible for retirement. He was entitled to
retirement benefits. During the entire duration of his service, Dennis was not given his 13th month pay
or his service incentive leave pay.
a. Is Dennis entitled to 13th month pay and service leave incentive pay? Explain. (5%)
b. Since he was not given his 13th month pay and service incentive leave pay, should Dennis be

paid upon retirement, in addition to the salary equivalent to fifteen (15) days for every year of
service, the additional 2.5 days representing one-twelfth (1/12) of the 13th month pay as well as
the five (5) days representing the service incentive leave for a total of 22.5 days? Explain. (5%)
X.
a. XYZ Manpower Services (XYZ) was sued by its employees together with its client, ABC
Polyester Manufacturing Company (ABC). ABC is one of the many clients of XYZ. During the
proceedings before the Labor Arbiter, XYZ was able to prove that it had substantial capital of
Three Million Pesos. The Labor Arbiter ruled in favor of the employees because it deemed XYZ
as a labor only contractor. XYZ was not able to prove that it had invested in tools, equipment,
etc. Is the Labor Arbiter's ruling valid? Explain. (5%)
b. Does the performance by a contractual employee, supplied by a legitimate contractor, of
activities directly related to the main business of the principal make him a regular employee of
the principal? Explain. (5%)
- NOTHING FOLLOWS 1.