This is Set A of the 2011 Bar Exams on Labor Law. The A.

A. Yes, since it was Lucas that actually hired and

answers are bolded. supervised them to work at its factory.
B. No, since the agency workers are not employees of
1. The union’s by-laws provided for burial assistance to the client factory.
the family of a member who dies. When Carlos, a C. Yes, since they have been working at the factory in
member, died, the union denied his wife’s claim for burial excess of two years.
assistance, compelling her to hire a lawyer to pursue the D. No, since it was the placement agency that got them
claim. Assuming the wife wins the case, may she also their jobs.
claim attorney’s fees?
A. No, since the legal services rendered has no 6. Both apprenticeship and learnership are government
connection to CBA negotiation. programs to provide practical on-the-job training to new
B. Yes, since the union should have provided her the workers. How do they differ with respect to period of
assistance of a lawyer. training?.
C. No, since burial assistance is not the equivalent of A. In highly technical industries, apprenticeship can
wages. exceed 6 months; learnership can exceed one year.
D. Yes, since award of attorney’s fee is not limited to B. Apprenticeship cannot exceed 6 months; learnership
cases of withholding of wages. can.
C. Apprenticeship shall not exceed six months;
2. Pol requested Obet, a union officer and concurrently while learnership shall not exceed three months.
chairman of the company’s Labor-Management Council, D. The law lets the employer and the apprentice agree
to appeal to the company for a recomputation of Pol’s on the apprenticeship period; but the law fixes
overtime pay. After 5 p.m., his usual knock-off time, Obet learnership period at six months in non-technical
spent two hours at the Personnel Office, reconciling the industries.
differing computations of Pol’s overtime. Are those two
hours compensable? 7. Venus Department Store decided to contract out the
A. Yes, because Obet performed work within the security services that its 10 direct-hired full-time security
company premises. guards provided. The company paid the men separation
B. No, since Obet’s action has nothing to do with his pay. With this move, the Store was able to cut costs and
regular work assignment. secure efficient outside professional security
C. No, because the matter could have been resolved in services. But the terminated security guards complained
the labor-management council of which he is the of illegal dismissal, claiming that regular jobs such as
chairman. theirs could not be contracted out. Will their complaint
D. Yes, because the time he spent on grievance prosper?
meetings is considered hours worked. A. No. the management has the right to contract out
jobs to secure efficient and economical operations.
3. The Labor Code on retirement pay expands the term B. Yes. They should be reinstated or absorbed by the
“one-half (½) month salary” because it means security agency as its employees.
A. 15 days’ pay plus 1/12th of the 13th month pay and C. No. They are estopped from demanding
1/12th of the cash value of service incentive leave. reinstatement after receiving their separation pay.
B. 15 days’ pay plus 1/12th of the 13th month pay D. Yes. The company cannot contract out regular jobs
and the cash equivalent of five days service such as they had.
incentive leave.
C. 15 days pay plus a full 13th month pay. 8. Although both are training programs, apprenticeship is
D. 15 calendar days’ pay per year of service plus different from learnership in that
allowances received during the retirement year. A. a learner may be paid 25% less than the legal
minimum wage while an apprentice is entitled to the
4. A foreign guest in a luxury hotel complained that he minimum wage.
lost certain valuable items in his hotel room. An B. apprenticeship has to be covered by a written
investigation by the hotel pointed to two roomboys as the agreement; no such formality is needed in learnership.
most probable thieves. May the management invoke C. in learnership, the employer undertakes to make
“loss of confidence” as a just cause for dismissing the the learner a regular employee; in apprenticeship, no
roomboys? such undertaking.
A. No, “loss of confidence” as reason for dismissal does D. a learner is deemed a regular employee if terminated
not apply to rank and file employees. without his fault within one month of training; an
B. No, “loss of confidence” applies only to confidential apprentice attains employment status after six months of
positions. apprenticeship.
C. Yes, “loss of confidence” is broad enough to cover all
dishonest acts of employee. 9. A golf and country club outsourced the jobs in its food
D. Yes, “loss of confidence” applies to employees and beverage department and offered the affected
who are charged with the care and custody of the employees an early retirement package of 1½ month’s
employer’s property. pay for each year of service. The employees who
accepted the package executed quitclaims. Thereafter,
5. Tower Placement Agency supplies manpower to employees of a service contractor performed their
Lucas Candy Factory to do work usually necessary for jobs. Subsequently, the management contracted with
work done at its factory. After working there for more other job contractors to provide other services like the
than two years under the factory manager’s supervision, maintenance of physical facilities, golf operations, and
the workers demanded that Lucas extend to them the administrative and support services. Some of the
same employment benefits that their directly hired separated employees who signed quitclaims later filed
workers enjoyed. Is their demand valid? complaints for illegal dismissal.
Were they validly dismissed? B. Yes. The employer must prove the union
president’s part in slowdown.
A. Yes. The jobs were given to job contractors, not C. No. When a strike is illegal, the management has the
to labor-only contractors, and the dismissed right to dismiss the union president.
employees received higher separation pay than the D. No. As the union president, it may be assumed that
law required. he led the slowdown.
B. No. The outsourcing and the employment termination
were invalid since the management failed to show that it 14. The existing collective bargaining unit in Company X
suffered severe financial losses. includes some fifty “secretaries” and “clerks” who
C. No. Since the outsourcing of jobs in several routinely record and monitor reports required by their
departments entailed the separation of many employees, department heads. Believing that these secretaries and
the club needed the Secretary of Labor’s approval of its clerks should not be union members because of the
actions. confidential nature of their work, the management
D. No. Since the outsourced jobs were held by old-time discontinued deducting union dues from their
regular employees, it was illegal for the club to terminate salaries. Is the management’s action legal?
them and give the jobs to others. A. No, only managers are prohibited from joining unions;
the law does not bar “confidential employees” from
10. Sampaguita Company wants to embark on a joining unions.
retrenchment program in view of declining sales. It B. No, “confidential employees” are those who
identified five employees that it needed to separate. The assist persons who formulate, determine, or enforce
human resource manager seems to recall that she has management policies in the field of labor relations.
to give the five employees and the DOLE a 30-day C. Yes, secretaries and clerks of company executives
notice but she feels that she can give a shorter notice. are extensions of the management and, therefore,
What will you advise her? should not join the union.
A. Instead of giving a 30-day notice, she can just give a D. No, “confidential” employees are those who handle
30-day advanced salary and make the separation executive records and payroll or serve as executive
effective immediately. secretaries of top-level managers.
B. So long as she gave DOLE a 30-day prior notice, she
can give the employees a shorter notice. 15. Jose Lovina had been member of the board of
C. The 30-day advance notice to the employee and directors and Executive Vice President of San Jose
the DOLE cannot be shortened even with a 30-day Corporation for 12 years. In 2008, the San Jose
advance salary. stockholders did not elect him to the board of directors
D. She can give a shorter notice if the retrenchment is nor did the board reappoint him as Executive Vice
due to severe and substantial losses. President. He filed an illegal dismissal complaint with a
Labor Arbiter. Contending that the Labor Arbiter had
11. Under the Labor Code, its provisions on working no jurisdiction over the case since Lovina was not an
conditions, including the eight-hour work day rule, do not employee, the company filed a motion to
apply to domestic helpers. Does it follow from this that a dismiss. Should the motion be granted?
domestic helper’s workday is not limited by law? A. No, the Labor Arbiter has jurisdiction over all
A. No, since a domestic helper cannot be required to termination disputes.
work more than ten hours a day. B. Yes, it is the NLRC that has jurisdiction over disputes
B. Yes, since a domestic helper’s hours of work depend involving corporate officers.
on the need of the household he or she works for. C. No, a motion to dismiss is a prohibited pleading under
C. No, because a domestic helper is legally entitled to the NLRC Rules of Procedure.
overtime pay after ten hours of work. D. Yes, jurisdiction lies with the regular courts since
D. Yes, a domestic helper may be required to work the complainant was a corporate officer.
twelve hours a day or beyond.
16. An employee proved to have been illegally dismissed
12. Under the Labor Code on Working Conditions and is entitled to reinstatement and full backwages computed
Rest Periods, a person hired by a high company official on the basis of his
but paid for by the company to clean and maintain his A. basic salary plus the regular allowances and the
staff house is regarded as thirteenth month pay.
A. a person rendering personal service to another. B. basic salary plus the salary CBA increases during the
B. a regular company employee. pendency of his case.
C. a family member. C. basic salary plus the increases mandated by wage
D. domestic helper. orders issued during the pendency of his case.
D. basic salary at the time of dismissal.
13. The union filed a notice of strike due to a bargaining
deadlock. But, because the Secretary of Labor assumed 17. The meal time (lunch break) for the dining crew in
jurisdiction over the dispute, the strike was Glorious Restaurant is either from 10 a.m. to 11 a.m. or
averted. Meanwhile, the employer observed that the from 1:30 p.m. to 2:30 p.m., with pay. But the
union engaged in a work slowdown. Contending that the management wants to change the mealtime to 11: a.m.
slowdown was in fact an illegal strike, the employer to 12 noon or 12:30 p.m. to 1:30 p.m., without pay. Will
dismissed all the union officers. The union president the change be legal?
complained of illegal dismissal because the employer A. Yes, absent an agreement to the contrary, the
should first prove his part in the slowdown. Is the union management determines work hours and, by law,
president correct? meal break is without pay.
A. Yes, since the employer gave him no notice of its B. No, because lunchbreak regardless of time should be
finding that there was a slowdown. with pay.
C. Yes, the management has control of its operations. can the sales persons demand that they be absorbed as
D. No, because existing practice cannot be discontinued employees of the pharmaceutical firms?
unilaterally. A. No, they are Reach-All’s employees since it has
control over their work performance.
18. The employees’ union in San Joaquin Enterprise B. Yes, since they receive training from the
continued their strike despite a return to work order from pharmaceutical companies regarding the products they
the Secretary of Labor. Because of this defiance, the will promote.
employer dismissed the strikers. But the Labor Arbiter C. No, since they are bound by the agency agreement
declared as illegal the dismissal of those whose between Reach-All and the pharmaceutical companies.
commission of unlawful acts had not been proved. They D. Yes, since Reach-All does does not qualify as
were ordered immediately reinstated. The employer independent contractor- employer, its clients being the
refused, however, to reinstate them on the ground that source of the employees’ salaries.
the rule on immediate reinstatement applies only to
terminations due to just or authorized causes. Is the 22. Executive Order No. 180, which protects government
employer’s refusal justified? employees, does NOT apply to “high-level employees,”
A. No, every employee found to have been illegally namely,
dismissed is entitled to immediate reinstatement A. presidential appointees.
even pending appeal. B. those performing policy-determining functions,
B. Yes. The employer’s refusal is legal and justified as a excluding confidential employees and supervisors.
penalty for defying the secretary’s lawful order. C. confidential employees and those performing
C. Yes, the rule on immediate reinstatement does not policy-determining functions.
apply to employees who have defied a return-to-work D. elective officials.
order.
D. No. The dismissal of the employees was valid; 23. In the case of a househelper, reinstatement is not a
reinstatement is unwarranted. statutory relief for unjust dismissal because of the
confidentiality of his or her job. Instead, the househelper
19. Llanas Corporation and Union X, the certified shall be paid
bargaining agent of its employees, concluded a CBA for A. an indemnity equivalent to 15 days’ pay plus
the period January 1, 2000 to December 31, 2004. But, compensation already earned.
long before the CBA expired, members of Union Y, the B. a separation pay equivalent to one month’s pay per
minority union, showed dissatisfaction with the CBA year of service.
under the belief that Union X was a company union. C. a separation pay equivalent to one-half month’s pay
Agitated by its members, Union Y filed a petition for per year of service.
a Certification Election on December 1, 2002. Will the D. 15 days’ pay as indemnity plus wages lost from
petition prosper? dismissal to finality of decision.
A. No, such a petition can only be filed within the
freedom period of the CBA. 24. The CBA for the period January 2007 to December
B. No, since a petition for certification can be filed only 2009 granted the employees a P40 per day increase
upon the expiration of the CBA. with the understanding that it is creditable as compliance
C. Yes, a certification is the right remedy for ousting a to any future wage order. Subsequently, the regional
company union. wage board increased by P20 the minimum wage in the
D. Yes, employees should be allowed to cancel at the employer’s area beginning January 2008. The
earliest opportunity a CBA that they believed was management claims that the CBA increase may be
obtained by a company union. considered compliance even if the Wage Order itself
said that “CBA increase is not creditable as compliance
20. Is it correct to say that under Philippine law a to the Wage Order.” Is the management’s claim valid?
househelper has no right to security of tenure? A. Yes, since creditability of the CBA increase is the
A. No, since a househelper can be dismissed only free and deliberate agreement and intention of the
for just cause or when his agreed period of parties.
employment ends. B. Yes, since the Wage Order cannot prejudice the
B. Yes, since it is the employer who determines the management’s vested interest in the provisions of the
period of his service. CBA.
C. Yes, since a househelper can be dismissed with or C. No, disallowing creditability of CBA pay increase is
without just cause. within the wage board’s authority.
D. No, since a househelper can be dismissed only for D. No, the CBA increase and the Wage Order are
just cause, except when he has been employed for a essentially different and are to be complied with
definite period not exceeding one year. separately.

21. Reach-All, a marketing firm with operating capital of 25. When an employee works from 8 a.m. to 5 p.m. on a
P100,000, supplied sales persons to pharmaceutical legal holiday falling on his rest day, which of the
companies to promote their products in hospitals and following formulas do you use to compute for his day’s
doctors’ offices. Reach-All trained these sales persons wage on that day?
in the art of selling but it is the client companies that A. His regular daily wage multiplied by 200% plus
taught them the pharmacological qualities of their 30% of the 200%
products. Reach-All’s roving supervisors monitored, B. His regular daily wage multiplied by 200%
assessed, and supervised their work C. His regular daily wage plus 200%
performance. Reach-All directly paid their salaries out of D. His daily regular wage
contractor’s fees it received. Under the circumstances,
26. The employees’ rights to organize and to bargain 32. When the employer or his representative hurls
collectively are means of exercising the broader right to serious insult on the honor or person of the employee,
participate in policy or decision-making processes. The the law says that the employee
employees’ right to participate in policy and decision A. may leave work after at least a five-day notice to the
making processes is available employer.
A. if a labor-management council exists. B. may leave work at any time and file for constructive
B. if a labor-management council does not exist. dismissal.
C. if a union exists and it agrees to the creation of a C. may leave work without giving a 30-day notice to
labor-management council. the employer.
D. whether or not a labor-management council D. may abandon his job at once.
exists.
33. A sugar mill in Laguna, capitalized at P300 million,
27. If not used by the end of the year, the service suffered a P10,000.00 loss last year. This year it
incentive leave shall be dismissed three young female employees who gave birth
A. carried over to the next year. in the last three years. In its termination report to DOLE,
B. converted to its money equivalent. the sugar mill gave as reason for the dismissal
C. forfeited. “retrenchment because of losses.” Did it violate any
D. converted to cash and paid when the employee law?
resigns or retires. A. Yes, the law on retrenchment, the sugar mill’s
loses not being substantial.
28. An employee is NOT entitled to “financial assistance” B. Yes, the law against violence committed on women
in cases of legal dismissal when the dismissal and children.
A. is based on an offense reflecting the depraved C. No, except the natural law that calls for the protection
character of the employee. and support of women.
B. is based on serious misconduct or breach of the D. No, but the management action confirms suspicion
employer’s trust. that some companies avoid hiring women because of
C. is grounded on any of the just causes provided by higher costs.
the Labor Code.
D. when the employee has less than 10 years of service. 34. “Piece rate employees” are those who are paid by
results or other non-time basis. As such they are NOT
29. In a work-related environment, sexual harassment is entitled to overtime pay for work done beyond eight
committed when hours if
A. the offender has authority, influence, or moral A. their workplace is away from the company’s principal
ascendancy over his subordinate victim. place of work.
B. the victim’s continued employment is conditioned B. they fail to fill up time sheets.
on sexual favor from her. C. the product pieces they do are not countable.
C. the female victim grants the demand for sexual favor D. the piece rate formula accords with the labor
against her will. department’s approved rates.
D. the victim is not hired because she turned down the
demand for sexual favor. 35. An employer may require an employee to work on
the employee’s rest day
30. Government employees may elect a union as their A. to avoid irreparable loss to the employer.
exclusive representative but this right is not available to B. only when there is a state of calamity.
A. regular employees in government instrumentalities C. provided he is paid an extra of at least 50% of his
and agencies. regular rate.
B. employees of government-owned and -controlled D. subject to 24-hour advance notice to the employee.
corporations without original charters.
C. employees of government-owned-or-conrolled 36. The State has a policy of promoting collective
corporations with original charters. bargaining and voluntary arbitration as modes of settling
D. employees of provincial and local government units. labor disputes. To this end, the voluntary arbitrator’s
jurisdiction has not been limited to interpretation and
31. Celia, an OFW that Moonshine Agency recruited and implementation of collective bargaining agreements and
deployed, died in Syria, her place of work. Her death company personnel policies. It may extend to “all other
was not work-related, it appearing that she had been labor disputes,” provided
murdered. Insisting that she committed suicide, the A. the extension does not cover cases of union busting.
employer and the agency took no action to ascertain the B. the parties agreed to such extended jurisdiction.
cause of death and treated the matter as a “closed C. the parties are allowed to appeal the voluntary
case.” The worker’s family sued both the employer and arbitrator’s decision.
the agency for moral and exemplary damages. May D. the parties agreed in their CBA to broaden his
such damages be awarded? jurisdiction.
A. Yes, the agency and the employer’s uncaring
attitude makes them liable for such damages. 37. Philworld, a POEA-licensed agency, recruited and
B. Yes, but only the principal is liable for such damages deployed Mike with its principal, Delta Construction
since the agency had nothing to do with Celia’s death. Company in Dubai for a 2-year project job. After he had
C. No, since her death is not at all work-related. worked for a year, Delta and Philworld terminated for
D. No, since her death is not attributable to any act of unknown reason their agency agreement. Delta stopped
the agency or the employer. paying Mike’s salary. When Mike returned to the
Philippines, he sued both Philworld and Delta for unpaid
salary and damages. May Philworld, the agency, be B. collective bargaining.
held liable? C. voluntary modes, such as conciliation and
A. No, since Philworld, the recruitment agency, is not the mediation.
employer liable for unpaid wages. D. labor-management councils.
B. Yes, since the agency is equally liable with the 43. Which of the following is NOT a requisite for
foreign principal despite the termination of their entitlement to paternity leave?
contract between them. A. The employee is cohabiting with his wife when she
C. Yes, since the law makes the agency liable for the gave birth or had a miscarriage.
principal’s malicious refusal to pay Mike’s salary. B. The employee is a regular or permanent
D. No, since Mike did not get paid only after Delta and employee.
Philworld terminated their contract. C. The wife has given birth or suffered a miscarriage.
D. The employee is lawfully married to his wife.
38. Melissa, a coffee shop worker of 5 months,
requested her employer for 5 days’ leave with pay to 44. Of the four grounds mentioned below, which one has
attend to the case that she filed against her husband for been judicially affirmed as justification for an employee’s
physical assault two weeks earlier. May the employer refusal to follow an employer’s transfer order?
deny her request for leave with pay? A. A transfer to another location is not in the employee’s
A. Yes, the reason being purely personal, approval appointment paper.
depends on the employer’s discretion and is without pay. B. The transfer deters the employee from exercising
B. No, as victim of physical violence of her husband, his right to self-organization.
she is entitled to five days paid leave to attend to her C. The transfer will greatly inconvenience the employee
action against him. and his family.
C. No, the employer must grant the request but the leave D. The transfer will result in additional housing and travel
will be without pay. expenses for the employee.
D. Yes, since she is not yet a permanent employee.
45. Of the four definitions below, which one does NOT fit
39. Quiel, a househelper in the Wilson household since the definition of “solo parent” under the Solo Parents
2006, resigned from his job for several reasons. One Welfare Act?
reason was the daily 12-hour workday without any rest A. Solo parenthood while the other parent serves
day. When he left his job he had unpaid wages totaling sentence for at least one year.
P13,500.00 which his employer refused to pay. He B. A woman who gives birth as a result of rape.
wants to claim this amount though he is not interested in C. Solo parenthood due to death of spouse.
getting back his job. Where should he file his claim? D. Solo parenthood where the spouse left for abroad
A. He should file his claim with the DSWD, which will and fails to give support for more than a year.
eventually endorse it to the right agency.
B. Since he has no interest in reinstatement, he can file 46. Albert and four others signed employment contracts
his claim with the office of the regional director of the with Reign Publishers from January 1 to March 31, 2011
Department of Labor. to help clear up encoding backlogs. By first week of April
C. He should file his claim exceeding P5,000.00 with 2011, however, they remained at work. On June 30
the office of the labor arbiters, the regional Reign’s manager notified them that their work would end
arbitrators representing the NLRC. that day. Do they have valid reason to complain?
D. He should go to the Employee’s Compensation A. No, since fixed term employment, to which they
Commission. agreed, is allowed.
B. Yes, their job was necessary and desirable to the
40. For labor, the Constitutionally adopted policy of employer’s business and, therefore, they are regular
promoting social justice in all phases of national employees.
development means C. Yes, when they worked beyond March without an
A. the nationalization of the tools of production. extended fixed term employment contract, they
B. the periodic examination of laws for the common became regular employees.
good. D. No, since the 3-month extension is allowed in such
C. the humanization of laws and equalization of employment.
economic forces.
D. the revision of laws to generate greater employment. 47. A handicapped worker may be hired as apprentice or
learner, provided
41. To avail himself of paternity leave with pay, when A. he waives any claim to legal minimum wage.
must the male employee file his application for leave? B. his work is limited to apprenticeable job suitable to a
A. Within one week from the expected date of delivery handicapped worker.
by the wife. C. he does not impede job performance in the
B. Not later than one week after his wife’s delivery or operation for which he is hired.
miscarriage D. he does not demand regular status as an employee.
C. Within a reasonable time from the expected
deliver date of his wife. 48. The Secretary of Labor and Employment or his duly
D. When a physician has already ascertained the date authorized representative, including labor regulations
the wife will give birth. officers, shall have access to employer’s records and
premises during work hours. Why is this statement an
42. The constitution promotes the principle of shared inaccurate statement of the law?
responsibility between workers and employers, A. Because the power to inspect applies only to
preferring the settlement of disputes through employer records, not to the premises.
A. compulsory arbitration.
B. Because only the Secretary of Labor and Employment 54. Under the Limited Portability law, funds from the
has the power to inspect, and such power cannot be GSIS and the SSS maybe transferred for the benefit of a
delegated. worker who transfers from one system to the other. For
C. Because the law allows inspection anytime of the this purpose, overlapping periods of membership shall
day or night, not only during work hours. be
D. Because the power to inspect is already delegated to A. credited only once.
the DOLE regional directors, not to labor regulations B. credited in full.
officers. C. proportionately reduced.
D. equally divided for the purpose of totalization.
49. In industrial homework, the homeworker does at his
home the work that his employer requires of him, using 55. Of the four tests below, which is the most
employer-supplied materials. It differs from regular determinative of the status of a legitimate contractor-
factory work in the sense that employer?
A. the workers are not allowed to form labor A. The contractor performs activities not directly related
organizations. to the principal’s main business.
B. the workers’ pay is fixed by informal agreement B. The contractor has substantial investments in tools,
between the workers and their employer. equipment, and other devices.
C. the workers are under very little supervision in C. The contractor does not merely recruit, supply, or
the performance or method of work. place workers.
D. the workers are simply called “homeworkers,” not D. The contractor has direct control over the
“employees,” hence not covered by the social security employees’ manner and method of work
law. performance.

50. Which of the following grounds exempts an 56. X Company’s CBA grants each employee a 14th
enterprise from the service incentive leave law? month year-end bonus. Because the company is in
A. The employees already enjoy 15 days vacation financial difficulty, its head wants to negotiate the
leave with pay. discontinuance of such bonus. Would such proposal
B. The employer’s business has been suffering losses in violate the “nondiminution rule” in the Labor Code?
the past three years. A. No, but it will certainly amount to negotiating in bad
C. The employer regularly employs seven employees or faith.
less. B. Yes since the rule is that benefits already granted in a
D. The company is located in a special economic zone. CBA cannot be withdrawn or reduced.
51. Which of the following acts is NOT considered unfair C. No, since the law does not prohibit a negotiated
labor practice (ULP)? discontinuance of a CBA benefit.
A. Restraining employees in the exercise of the right to D. Yes, since such discontinuance will cancel the
self-organization. enjoyment of existing benefits.
B. Union’s interference with the employee’s right to
self-organization. 57. Night differential is differentiated from overtime pay
C. Refusal to bargain collectively with the employer. in that
D. Gross violation of the collective bargaining agreement A. while overtime pay is given for overtime work
by the union. done during day or night, night differential is given
only for work done between 10:00 p.m. and 6:00 a.m.
52. In computing for 13th month pay, Balagtas Company B. while overtime pay is paid to an employee whether on
used as basis both the employee’s regular base pay and day shift or night shift, night shift differential is only for
the cash value of his unused vacation and sick leaves. employees regularly assigned to night work.
After two and a half years, it announced that it had made C. while overtime pay is for work done beyond eight
a mistake and was discontinuing such practice. Is the hours, night differential is added to the overtime pay if
management action legally justified? the overtime work is done between 6:00 p.m. and 12
A. Yes, since 13th month pay should only be one-twelfth midnight.
of the regular pay. D. while overtime pay is 25% additional to the
B. No, since the erroneous computation has ripened employee’s hourly regular wage, night differential is 10%
into an established, non- withdrawable practice. of such hourly wage without overtime pay.
C. Yes, an error is not a deliberate decision, hence may 58. Differentiate a “labor organization” from a “legitimate
be rectified. labor organization.”
D. No, employment benefits can be withdrawn only A. While the employees themselves form a “labor
through a CBA negotiation. organization,” a “legitimate labor organization” is formed
at the initiative of a national union or federation.
53. Where the petition for a certification election in an B. While the members of a “labor organization” consists
unorganized establishment is filed by a federation, it only of rank and file employees, a “legitimate labor
shall NOT be required to disclose the organization” consists of both supervisory and rank and
A. names of the local chapter’s officers and file employees.
members. C. While a “labor organization” exists for a lawful
B. names and addresses of the federation officers. purpose, a “legitimate labor organization” must, in
C. names and number of employees that initiated the addition, be registered with the labor department.
union formation in the enterprise. D. While the officers in a “labor organization” are elected
D. names of the employees that sought assistance from in an informal way, the officers in “legitimate labor
the federation in creating the chapter. organization” are formally elected according to the
union’s constitution and by-laws.
59. The negotiating panels for the CBA of X Company A. Yes, union membership should be confined to direct-
established a rule that only employees of the company hired employees of the company.
will seat in each panel. In the next session, the B. Yes, the “community of interest” criterion should be
management panel objected to the presence of the observed not only in the composition of a bargaining unit
union counsel. Still the negotiation proceeded. At the but also in the membership of a union.
next session, the management panel again objected to C. Yes, a union must have community of interest; the
the presence of the union counsel as a non-observance non-regulars do not have such interest.
of the “no outsider” rule. The negotiation nonetheless D. No, union membership may include non-regulars
proceeded. Does the management panel’s objection to since it differs from membership in a bargaining
the presence of the union counsel constitute unfair labor unit.
practice through bad-faith bargaining?
A. Yes, the management is harping on a non-mandatory 65. Which is NOT a guideline for the dismissal of an
matter instead of proceeding with the mandatory employee on the ground of “loss of confidence”?
subjects of bargaining. A. Loss of confidence may not be arbitrarily invoked in
B. No, there is no bargaining in bad faith since the the face of overwhelming evidence to the contrary.
bargaining proceeded anyway. B. Loss of confidence as cause of dismissal should
C. Yes, the management panel has no legal basis for be expressly embodied in written company rules.
limiting the composition of the union negotiating panel. C. The employee holds a position of trust and
D. No, since it is the union that violates the ground rules confidence.
fashioned by the parties, it is the one negotiating in bad D. Loss of confidence should not be simulated nor a
faith. mere afterthought to justify earlier action taken in bad
faith.
60. Which of the following acts is NOT part of the
regulatory and visitorial power of the Secretary of Labor 66. Pedring, Daniel, and Paul were employees of
and Employment over recruitment and placement Delibakery who resigned from their jobs but wanted to
agencies? The power to file money claims for unpaid wages and 13th month pay.
A. order arrest of an illegal recruiter Pedring’s claim totals P20,000.00, Daniel’s P3,000.00,
B. inspect premises, books and records and Paul’s P22,000.00. Daniel changed his mind and
C. cancel license or authority to recruit now also wants reinstatement because he resigned only
D. garnish recruiter’s bond upon the instigation of Pedring and Paul. Where should
61. Where there is a bargaining deadlock, who may file a they file their claims?
notice of strike? A. With the DOLE regional director for Pedring and
A. The majority members of the bargaining unit. Paul’s claims with no reinstatement; with the labor
B. The recognized bargaining agent. arbiter for Daniel’s claim with reinstatement.
C. Any legitimate labor organization in the employer’s B. With the Office of the Regional Director of the
business. Department of Labor for all claims to avoid multiplicity of
D. The majority members of the bargaining union. suits.
C. With a labor arbiter for all three complainants.
62. When a recruitment agency fails to deploy a recruit D. With the DOLE Regional Director provided they are
without valid reason and without the recruit’s fault, the consolidated for expediency.
agency is obligated to
A. reimburse the recruit’s documentary and 67. In a scenario like typhoon Ondoy, who may be
processing expenses. required by the employer to work overtime when
B. reimburse the recruit’s expenses with 6% interest. necessary to prevent loss of life or property?
C. pay the recruit damages equivalent to one year’s A. Health personnel
salary. B. Employees with first aid training
D. find another employer and deploy the recruit within 12 C. Security and safety personnel
months. D. Any employee

63. Which of the following is an essential element of 68. The management and Union X in Atisan Mining
illegal recruitment? entered into a CBA for 1997 to 2001. After 6 months, a
A. The recruiter demands and gets money from the majority of the members of Union X formed Union Y and
recruit but issues no receipt. sought management recognition. The latter responded
B. The recruiter gives the impression that he is able by not dealing with either union. But, when the CBA’s
to send the recruit abroad. economic provisions had to be renegotiated towards the
C. The recruiter has insufficient capital and has no fixed end of the term of the CBA, the management chose to
address. negotiate with Union Y, the newer union. Thus, Union X
D. The recruiter has no authority to recruit. which negotiated the existing CBA charged the company
with unfair labor practice (ULP). The company argued
64. A group of 15 regular rank-and-file employees of Bay that it committed no unfair labor practice since the
Resort formed and registered an independent union. On supposed violation had nothing to do with economic
hearing of this, the management called the officers to provisions of the CBA. Is the management right?
check who the union members were. It turned out that A. No. Refusal to comply with the CBA’s economic
the members included the probationary staff, casuals, provisions is not the only ground for ULP; a
and the employees of the landscape contractor. The disregard of the entire CBA by refusing to
management contends that inclusion of non-regulars renegotiate with the incumbent bargaining agent is
and employees of a contractor makes the union’s also ULP,
composition inappropriate and its registration invalid. Is
this correct?
B. Yes. No unfair labor practice was committed because A. Labor-only contractors
the supposed violation has nothing to do with economic B. Job contractors
provisions of the CBA. C. Pakyaw workers
C. Yes. The management commits no ULP when it D. Manpower agency contractors
decided to renegotiate with the numerically majority
union. 73. How often should the collected service charges be
D. Yes. A CBA violation amounts to ULP only if the distributed to employees in hotels and restaurants?
violation is “gross,” meaning flagrant or malicious refusal A. Every end of the month
to comply with the CBA’s economic provisions which is B. Every two weeks
not the case here. C. Every week
D. At the end of each work day
69. The apprenticeship program should be
supplemented by theoretical instruction to be given by 74. Which of the following conditions justifies a licensed
A. the apprentice’s school only where the apprentice is employment agency to charge and collect fees for
formally enrolled as a student. employment assistance?
B. the employer if the apprenticeship is done in the A. The recruit has submitted his credentials to the
plant. employment agency.
C. the civic organizations that sponsor the program. B. The POEA has approved the agency’s charges and
D. the Department of Labor and Employment. fees.
C. The agency’s principal has interviewed the applicant
70. The Securities and Exchange Commission approved for the job.
a merger that allowed Broad Bank to absorb the assets D. The worker has obtained employment through the
and liabilities of EBank. Broad Bank also absorbed agency’s efforts.
EBank’s rank-and-file employees without change in
tenure, salary, and benefits. Broad Bank was unionized 75. During the CBA negotiation the management panel
but EBank was not. The Broad Bank bargaining union proposed a redefinition of the “rank-and-file” bargaining
requested the management to implement the union unit to exclude “HR Specialist” in the human resource
security clause in their CBA by requiring the ex-EBank department and “Analyst” in the research and
employees to join the union. Does the union security development department. The union panel objected
clause in the Broad Bank CBA bind the ex-EBank since those affected have already been included in the
employees? bargaining unit covered by the existing CBA and so
could no longer be excluded. Is the union correct in
A. No, since the ex-EBank employees were not yet insisting that their exclusion would amount to bad faith
Broad Bank employees when that CBA was entered into. on the part of the management panel?
B. No, Broad Bank’s absorption of ex-EBank employees
was not a requirement of law or contract; hence, the A. No, efforts to modify an existing CBA do not constitute
CBA does not apply. bad faith if such modification does not diminish
C. Yes, Broad Bank’s absorption of ex-EBank employment benefits.
employees automatically makes the latter union B. Yes, the proposed exclusion amounts to
members of Broad Bank’s bargaining union. management’s violation of its duty to bargain because it
D. Yes, since the right not to join a labor union is disregards the bargaining history between the parties.
subordinate to the policy of unionism that C. Yes, once the coverage of the bargaining unit has
encourages collective representation and been contractually defined, it can no longer be redefined.
bargaining. D. No, bargaining history is not the only factor that
determines the coverage of the bargaining unit;
71. The employer must observe both substantive and seeking its redefinition is not negotiating in bad
procedural due process when dismissing an faith.
employee. If procedural due process is not observed,
the dismissal will be regarded as
A. defective; the dismissal process has to be repeated.
B. an abuse of employer’s discretion, rendering the
dismissal void.
C. ineffectual; the dismissal will be held in abeyance.
D. legal and valid but the employer will be liable for
indemnity.

72. Mario, an expert aircon technician, owns and

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