2021 Labor Law FAQs

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San Beda College Alabang School of Law

Centralized Bar Operations

Frequently Asked Questions

SYLLABUS FOR THE 2021 BAR EXAMINATIONS


LABOR LAW AND SOCIAL LEGISLATION

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SAN BEDA COLLEGE ALABANG


CENTRALIZED BAR OPERATIONS

FREQUENTLY ASKED QUESTIONS

Dr. Ulpiano P. Sarmiento III


Dean and Adviser

Atty. Anna Marie Melanie B. Trinidad


Vice Dean

Atty. Carlo D. Busmente


Prefect of Student Affairs

Atty. Roben B. Cadugo Jr.


Administrative Officer

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2021 CENTRALIZED BAR OPERATIONS


Christian Boy Benedict R. Tiangco
Overall Chairperson

Maria Angela Alexandria Albotra


Chairperson for Operations

Fiona Criscelle Federico


Chairperson for Academics

Angelica Felise Manalo


Jolykha Toa L. Sanchez
Deputy for Academics

Joseph Librojo
Chairperson for Academics Operation

Ma. Veronica Malabanan


Chairperson for Secretariat

Maria Concepcion Bañas


Chairperson for Finance

Kate Capulong
Chairperson for Logistics

Marie Czel Ongtangco


Chairperson for Recruitment and Membership

John Argie Mortel


Chairperson for Electronic Data Processing

Kurt Jairus Tañada


Chairperson for Communications

Anna Akiko Abad


Chairperson for Bar Mentoring Program

Louie Ann Someros


Chairperson for Bar Matters

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2021 LABOR LAW TEAM 2020 LABOR LAW TEAM

Mariel Basaran Ma. Isabel Soriano


Subject Head Subject Head

Raenielle Salas Rasper John Antonio


Assistant Subject Head Assistant Subject Head

Members Members
Medina, Gico Amiel S. Sta. Romana, Cathy
Moldez, Maria Salina M. Boncayao, Kaye
Oasan, Wendy Louise M. Perez, Debbie
Cabandong, Jordan C. Padre, David
Mendoza, Sarah Pauline S. Cariaga, Carla
Natividad, Genesis Joy A. Gomez, Jona
Macapagal, Gladys D. Castillo, Mike
Bello, Nerissa M. Deveras, Shai
Arevalo, Niño Jorge Y. Nato, Joie
Britanico, Christian Carlo P. Martinez, Raph
Ilano, Patricia Gaile M. Sabio, Alex
Magalang, Leymar
Ilano, Patricia
Purificacion, Celine
Natividad, Genesis

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I. FUNDAMENTAL PRINCIPLE
A. 1987 Constitution SUGGESTED ANSWER:
1. Enumerate at least four (4) policies (A) or (E), the employer and employee
enshrined in Section 3, Article XIII of the must deal with each other on more or
Constitution that are not covered by Article 3 less equal terms.
of the Labor Code on declaration of basic
policy. (Bar Question 2009) Employment contracts for a
fixed period cannot be said to be in
SUGGESTED ANSWER: circumvention of security of tenure. In
Under Section 3, Article XIII of the 1987 the case of Brent vs Zamora,
Constitution, the four (4) policies which are not parameters or criteria under which a
covered by Article 3 of the Labor Code on "term employment" cannot be said to
declaration of basic policy are: be in circumvention of the law on
(1) All workers shall have the right to peaceful security of tenure, namely:
concerted activities;
(2) Including the right to strike in accordance 1) The fixed period of employment was
with the law; knowingly and voluntarily agreed upon by the
(3) They shall be entitled to a living wage; parties without any force, duress, or improper
(4) They shall participate in policy and decision pressure being brought to bear upon the
making processes affecting their rights and employee and absent any other
benefits as may be provided by law; circumstances vitiating his consent; or
(5) The state shall promote the principle of
shared responsibility between workers and 2) It satisfactorily appears that the employer
employers. and the employee dealt with each other on
more or less equal terms with no moral
B. State Policy towards labor dominance exercised by the former or the
Security of Tenure latter.
1. Mr. Del Carmen, unsure if his foray into
business (messengerial service catering purely Right to self-organization and collective
to law firms) would succeed but intending to bargaining
go long-term if he hurdles the first year, opted 1. Philhealth is a government-owned and
to open his operations with one-year contracts controlled corporation employing
with two law firms although he also accepts thousands of Filipinos. Because of the
messengerial service requests from other firms desire of the employees of Philhealth
as their orders come. He started with one to obtain better terms and conditions
permanent secretary and six (6) messengers of employment from the government,
on a one-year, fixed-term, contract. Is the they formed the Philhealth Employees
arrangement legal from the perspective of Association (PEA) and demanded
labor standards? (Bar Question 2013) Philhealth to enter into negotiations
with PEA regarding terms and
(A) No, because the arrangement will conditions of employment which are
circumvent worker's right to security of tenure. not fixed by law. (Bar Question 2014)
(B) No. If allowed, the arrangement will serve
as a starting point in weakening the security of (a) Are the employees of Philhealth
tenure guarantee. allowed to self-organize and form PEA
(C) Yes, if the messengers are hired through a and thereafter demand Philhealth to
contractor. enter into negotiations with PEA for
(D) Yes, because the business is temporary better terms and conditions of
and the contracted undertaking is specific employment?
and time-bound.
(E) No, because the fixed term provided is SUGGESTED ANSWER: Yes. Employees
invalid. of Philhealth are allowed to self-
organize under Section 8, Article III and

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Section 3, Article XIII of the Constitution 2010, the Supreme Court explained the
which recognize the rights of all application of Article 4 of the Labor Code
workers to self-organization. They regarding doubts on respondent’s evidence
cannot demand, however, for better on the voluntariness of petitioner’s resignation.
terms and conditions of employment Thus, the High Court said: Another basic
for the same are fixed by law (Art. 244, principle is that expressed in Article 4 of the
Labor Code), besides, their salaries are Labor Code – that all doubts in the
standardized by Congress (Art. 276, interpretation and implementation of the
Labor Code). Labor Code should be interpreted in favor of
the working man. This principle has been
(B) In case of unresolved grievances, extended by jurisprudence to cover doubts in
can PEA resort to strikes, walkouts, and the evidence presented by the employer and
other temporary work stoppages to the employee. (Fujitsu Computer Products
pressure the government to accede to Corporation of the Philippines v. Court of
their demands? Appeals, 494 Phil. 697 [2005]) As shown above,
Peñaflor has, at very least, shown serious
SUGGESTED ANSWER: No. Since the doubts about the merits of the company’s
terms and conditions of government case, particularly in the appreciation of the
employment are fixed by law, clinching evidence on which the NLRC and
government workers cannot use the CA decisions were based. In such a contest of
same weapons employed by workers evidence, the cited Article 4 compels us to rule
in the private sector to secure in Peñaflor’s favor. Thus, we find that Peñaflor
concessions from their employers. was constructively dismissed given the hostile
(Blaquera vs. Alcala, G.R. Nos. 109406, and discriminatory working environment he
110642, 111494, 112056, 119597, found himself in, particularly evidenced by the
September 11, 1998). escalating acts of unfairness against him that
culminated in the appointment of another
Construction in favor of Labor HRD manager without any prior notice to him.
1. Procopio was dismissed from employment Where no less than the company’s chief
for stealing his co-employee Raul’s watch. corporate officer was against him, Peñaflor
Procopio filed a complaint for illegal dismissal. had no alternative but to resign from his
The Labor Arbiter ruled in Procopio’s favor on employment. (Unicorn Safety Glass, Inc. v.
the ground that Raul’s testimony was doubtful, Basarte, 486 Phil. 493 [2004]
and, therefore, the doubt should be resolved
in favor of Procopio. On appeal, the NLRC Alternative Answer:
reversed the ruling because Article 4 of the The reversal is not correct. It is a time-honored
Labor Code – which states that all doubts in rule that in controversies between a laborer
the interpretation and implementation of the and his master, doubts reasonably arising from
provisions of the Labor Code, including the the evidence, or in the interpretation of
implementing rules and regulations, shall be agreement and writings, should be resolved in
resolved in favor of labor – applied only when the former's favor (Lepanto Consolidated
the doubt involved the “implementation and Mining Company v. Dumapis, G.R. No. 163210,
interpretation” of the Labor Code; hence, the August 13, 2008, 562 SCRA 103). There appears
doubt, which involved the application of the to be serious doubts in the evidence on record
rules on evidence, not the Labor Code, could as to the factual basis of the charges against
not necessarily be resolved in favor of Procopio. These doubts should be resolved in
Procopio. Was the reversal correct? Explain his favor in line with the policy under the Labor
your answer. (Bar Question 2017) Code to afford protection to labor and
construe doubts in favor of labor (Asuncion v.
SUGGESTED ANSWER: NLRC, G.R. No. 129329, July 31, 2001, 362 SCRA
In Peñaflor v. Outdoor Clothing 56).
Manufacturing, G.R. No. 177114, January 21,

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Alternative Answer: being attributable to him, he may be


The reversal is not correct. Article 227(221) of considered to have apparent authority to
the Labor Code clearly provides that “the rules represent Alpha in recruitment for overseas
of evidence prevailing in courts of law shall not employment.
be controlling” in any proceeding before the
NLRC or the Labor Arbiters. Moreover, the (B) May the officers having control,
NLRC/Labor Arbiters are mandated to use management or direction of Alpha Personnel
every and all reasonable means to ascertain Services, Inc. be held criminally liable for illegal
the facts speedily and objectively and without recruitment? Explain.
regard to technicalities of law or procedure, SUGGESTED ANSWER:
all in the interest of due process. Yes, Alpha, being a licensed recruitment
agency, still has an obligation to A for
II.RECRUITMENT AND PLACEMENT processing his papers for overseas
A. Illegal Recruitment employment. Under Section 6(m) of Rep. Act.
1. A was approached for possible No. 8042 (Migrant Workers and Overseas
overseas deployment to Dubai by X, Filipinos Act), failure to reimburse expenses
an interviewer of job applicants for incurred by the worker in connection with his
Alpha Personnel Services, Inc., an documentation and processing for purposes
overseas recruitment agency. X of deployment, in cases where the
required A to submit certain deployment does not actually take place
documents (passport, NBI clearance, without the worker‘s fault, amounts to illegal
medical certificate) and to pay recruitment.
P25,000 as processing fee. Upon
payment of the said amount to the III. LABOR STANDARDS
agency cashier, A was advised to wait A. Conditions of Employment
for his visa. After five months, A visited Overtime Work
the office of Alpha Personnel Services, 1. Percival was a mechanic of Pacific
Inc. during which X told him that he Airlines. He enjoyed a one-hour
could no longer be deployed for meal break. However, during meal
employment abroad. A was informed breaks, he was required to be on
by the Philippine Overseas stand-by for emergency work.
Employment Administration (POEA) During emergencies, he was made
that while Alpha Personnel Services, to forego his meals or to hurry up
Inc. was a licensed agency, X was not eating. He demanded payment of
registered as its employee, contrary to overtime for work done during his
POEA Rules and Regulations. Under meal periods. Is Percival correct?
POEA Rules and Regulations, the Explain your answer. (Bar Question
obligation to register personnel with 2017)
the POEA belongs to the officers of a
recruitment agency. (Bar Question SUGGESTED ANSWER:
2010) Percival is correct. While as a rule the
eight hour period does not include the
(A) May X be held criminally liable for meal break however, in the case of
illegal recruitment? Explain. Percival he was required to forego his
meals or to hurry up eating. The meal
SUGGESTED ANSWER: period should therefore be considered
No, X performed his work with the knowledge compensable hours of work and a
that he works for a licensed recruitment work beyond eight hours. Percival is
agency. He is in no position to know that the therefore entitled to overtime time.
officers of said recruitment agency failed to (NOTE: The foregoing answer can be
register him as its personnel (People v. found in page 371 of the book entitled
Chowdury, 325 SCRA 572 [2000]). The fault not Principles and Cases Labor Standards

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and Social Legislation, First Edition 2015, and partially paid for by the employee
by Atty. Voltaire T. Duano.) through salary deduction. According
to the employer, such valid deduction
Alternative Answer: caused the payment of Nelda's wage
Percival is correct. Under Article 85 of to be 7 below the prescribed minimum.
the Labor Code and Book Ill, Rule I, The hotel also claimed that she was not
Section 7 of the Rules, it shall be the entitled to holiday pay and night shift
duty of every employer to give his differential pay because hotel workers
employees not less than sixty (60) have to work on holidays and may be
minutes time-off for their regular meals. assigned to work at night.
But where during the meal break, the (a) Does the hotel have valid
workers are required to stand by "for legal grounds to deduct
emergency work, such period is food and lodging costs
considered overtime (Pan American from Nelda's basic salary?
World Airways System (Phil.) v. Pan (Bar Question 2018)
American Employees Association, G.R.
No. L-16275, February 23, 1961, 1 SCRA SUGGESTED ANSWER:
527). (a) In Mabeza v. NLRC, (271 SCRA 670
[1997]), the Supreme Court established
three requirements before the value of
Alternative answer: “facilities” such as food and lodging
Percival is correct. All the time during may be deducted from an
which an employee is required to be employee’s wages: first, proof must be
on duty or to be at the employer's shown that such facilities are
premises or to be at a prescribed customarily furnished by the trade;
workplace, and all time during which second, the provision of deductible
an employee suffered or permitted to facilities must be voluntarily accepted
work is considered compensable in writing by the employee; and finally,
hours. Given that Percival's meal break facilities must be charged at fair and
was not one of complete rest, as he did reasonable value. In the case at hand,
not have the freedom to devote such the second and third requisites on
a period for his personal needs, the voluntary acceptance of deductible
same should be considered as facilities in writing, at fair and
compensable hours of work. reasonable value, was not established.

B. Wages ALTERNATIVE ANSWER:


1. Nelda worked as a chambermaid in (a) No. In Atok Big Wedge Association
Hotel Neverland with a basic wage of v. Atok Big Wedge Company, (G.R. No.
PhP560.00 for an eight-hour workday. L-7349, July 19, 1955), the Supreme
On Good Friday, she worked for one Court distinguished facilities from
(1) hour from 10:00 PM to 11 :00 PM. Her supplement. Supplements constitute
employer paid her only PhP480.00 for extra remuneration given to laborers
each 8-hour workday, and PhP70.00 above their wage. Facilities are items
for the work done on Good Friday. She of expense necessary for the laborer’s
sued for underpayment of wages and and his family’s existence and
non-payment of holiday pay and night subsistence. Board and lodging are
shift differential pay for working on a treated as supplements if the
Good Friday. Hotel Neverland denied company benefits from the employees
the alleged underpayment, arguing not going home anymore or not
that based on long-standing unwritten leaving his workstation to eat. Since
tradition, food and lodging costs were Nelda is a chambermaid, her board
partially shouldered by the employer

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and lodging should be treated as a generated sales. Such allowances are


supplement. in the nature of profit-sharing bonuses
or commissions that should be properly
(b) Applying labor standards law, how much excluded from the ambit of the term
should Nelda be paid for work done on Good “basic salary” for purposes of
Friday? Show the computation in your test computing 13th month pay due to
booklet and encircle your final answer. (2.5%) employees.

SUGGESTED ANSWER: ALTERNATIVE ANSWER:


(b) As an employee paid PhP 70 an Yes, the productivity allowance should
hour, Nelda was entitled to an be included in the computation of the
additional 100% of her hourly wage for 13th month pay. The said allowance is
working on a Good Friday, plus 10% for a fixed amount and made part of
night differential pay. Nelda should be Nico’s daily compensation, and as
paid a total of PhP 154.00 for working such this is 10 demandable and
that day. enforceable as a matter of right. The
“basic salary” of an employee for the
Bonus, 13th Month Pay purposes of computing the 13th month
1. Nico is a medical representative pay include all remuneration or
engaged in the promotion of earnings paid by his employer for
pharmaceutical products and services rendered but does not include
medical devices for Northern allowances and monetary benefits
Pharmaceuticals, Inc. He regularly visits which are not considered or
physicians' clinics to inform them of the integrated as part of the regular or
chemical composition and benefits of basic salary (Protacio v.
his employer's products. At the end of LayaMananghaya & Co., G.R. No.
every day, he receives a basic wage 168654, March 25, 2009).
of PhP700.00 plus a PhP150.00
"productivity allowance." For purposes Holiday Pay
of computing Nico's 13th month pay, 1. A, a worker at ABC Company, was
should the daily "productivity on leave with pay on March 31,
allowance" be included? (Bar 2010. He reported for work on April
Question 2018) 1 and 2, Maundy Thursday and
Good Friday, respectively, both
SUGGESTED ANSWER: regular holidays. Is A entitled to
No. The second paragraph of Section holiday pay for the two successive
5(a) of the Revised Guidelines holidays? Explain. (Bar Question
Implementing the 13th Month Pay Law 2010)
states that “employees who are paid a
fixed or guaranteed wage plus SUGGESTED ANSWER:
commission are also entitled to the Yes, A is entitled to holiday pay
mandated 13th month pay, based on equivalent to two hundred percent
their total earnings during the calendar (200%) of his regular daily wage for the
year, i.e., on both their fixed or two successive holidays that she
guaranteed wage and commission.” worked (Section 6[a], Rule IV, Book III of
However, the SC in Philippine the Omnibus Rule Implementing the
Duplicators, Inc. v. NLRC, 241 SCRA 380 Labor Code).
(G.R. No. 110068 February 15, 1995),
declared the aforesaid provision as null
and void with respect to those medical Wage Distortion
representatives who do not obtain
productivity allowances by virtue of

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1. What procedural remedies are (b) Assuming that Mrs. B is instead a clerk in X’s
open to workers who seek company with at least 30 regular employees,
correction of wage distortion? (2%) will her monetary claim prosper? Explain

SUGGESTED ANSWER: SUGGESTED ANSWER:


The Procedural Remedies of Wage Mrs. B’s monetary claim will prosper.
Distortion disputes are provided in Art. Under Art. 95 of the Labor Code (1), the
242 of the Labor Code, as follows: provision on the right to service
1. Organized establishment – incentive leave will not apply to
follow the grievance employees of establishments regularly
procedure as provided for in employing less than ten employees.
the CBA, ending in voluntary Since Mrs. B is now a clerk in X’s
arbitration. company with at least 30 regular
2. Unorganized establishment – employees, she does not fall on those
employer and workers, with the not covered by the said provision.
aid of the NCMB shall
endeavor to correct the wage Maternity Leave
distortion, and if they fail, to 1. Nestor and Nadine have been living in
submit the issue to the NLRC for for the last 10 years without the benefit
compulsory arbitration. of marriage. Their union has produced
four children. Nadine was three months
C. Leaves pregnant with her 5th child when
Service Incentive Leave Nestor left her for another woman.
When Nadine was eight months
1. Mrs. B, the personal cook in the pregnant with her 5th child, she
household of X, filed a monetary applied for maternity leave benefits.
claim against her employer, X, for Her employer refused on the ground
denying her service incentive that this was already her 5th
leave pay. X argued that Mrs. B did pregnancy and that she was only living
not avail of any service incentive in with the father of her child, who is
leave at the end of her one (1) year now in a relationship with another
of service and hence, not entitled woman. When Nadine gave birth,
to the said monetary claim. (Bar Nestor applied for paternity leave
Question 2019) benefits. His employer also denied the
application on the same grounds that
(a) Is the contention of X tenable? Nadine's employer denied her
Explain. application. (Bar Question 2018)

(a) Can Nadine's employer legally deny her


SUGGESTED ANSWER: claim for maternity benefits?
No. The contention of X is not tenable.
Under the Law, a service incentive SUGGESTED ANSWER:
leave may be converted into cash if it (a) Yes, Nadine is not entitled to
is not exhausted at the end of the year. maternity benefits since it is only
However, Mrs. B is not entitled to a available for the first four (4) deliveries
service incentive leave because she is or miscarriages. On the other hand, her
in personal service of x. Persons in employer cannot refuse on the ground
personal service of another are not that Nadine was only living with her
covered by the right to service partner since a valid marriage is not a
incentive leave. condition for the grant of maternity
leave benefits.

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(b) Can Nestor's employer legally deny his (b) states of RA 7877 states: “[I]n a
claim for paternity benefits? (2.5%) work-related or employment
environment, it is committed when
SUGGESTED ANSWER: sexual harassment results in an
(b) Yes, Nestor is not entitled to intimidating hostile or offensive
paternity benefits since it is only environment for the employee. In
available for the first four (4) deliveries Philippines Aeolus Automative United
or miscarriages of his legitimate spouse Corp. v. NLRC, (G.R. 124617, April 28,
with whom he is living with. 2000), the Supreme Court ruled that
the gravamen of the offense in sexual
Sexual Harassment in Work Environment harassment is not the violation of the
1. Nena worked as an Executive Assistant employee’s sexuality but the abuse of
for Nesting, CEO of Nordic power by the employer. In the Rayala
Corporation. One day, Nesting called case, (G.R. No. 155831, February 18,
Nena into his office and showed her 2008), sexual harassment was said to
lewd pictures of women in seductive be an imposition of misplaced
poses which Nena found offensive. superiority. The fact that no sexual
Nena complained before the General favor was asked by Nesting does not
Manager who, in turn, investigated the mean he did not violate R.A. 7877. His
matter and recommended the act of showing lewd pictures to a
dismissal of Nesting to the Board of subordinates is clearly sexual
Directors. Before the Board of Directors, harassment.
Nesting argued, that since the Anti-
Sexual Harassment Law requires the
existence of "sexual favors," he should
not be dismissed from the service since Working conditions for special groups of
he did not ask for any sexual favor from employees:
Nena. Is Nesting correct? (Bar Question
2018) Disabled Workers
1. For humanitarian reasons, a bank hired
SUGGESTED ANSWER: several handicapped workers to count
Nesting’s argument on lack of sexual and sort out currencies. Their
favor is incorrect. While his actions employment contract was for six (6)
require further proof of being a “sexual months. The bank terminated their
favor” in terms of criminal liability under employment on the ground that their
RA 7877, he may still be held liable contract had expired prompting them
under the just causes of termination in to file with the Labor Arbiter a
Article 297 of the Labor Code. In complaint for illegal dismissal. Will their
Villarama v. NLRC and Golden Donuts, action prosper? (Bar Question 2006)
(G.R. No. 106341, September 2, 1994),
the Supreme Court held that a SUGGESTED ANSWER:
managerial employee is bound by Their action will not prosper because
more exacting work ethics, with a high they are covered by the fixed term
standard of responsibility. Sexual employment contract which
harassment of a subordinate amounts automatically lapsed at the end of the
to “moral perversity” which provides a 6- month period (Brent School v.
justifiable ground for dismissal due to Zamora, G.R. No. 48494, February 5,
lack of trust and confidence. 1990; Art. 280, Labor Code). A contract
of employment for a definite period
ALTERNATIVE ANSWER: terminates on its own term at the end
Nesting is not correct. Section 3 of its period. It does not necessarily
paragraph a in relation to paragraph follow that the parties are forbidden

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from agreeing on a fixed period of time boy goes home at 7:00 every night. The
for the performance of activities school principal learned about it and
usually necessary and desirable in the charged her with violating the law
usual business of the employer which prohibits the employment of
(Pangilinan v. Gen. Milling, G.R. No. children below 15 years of age. In her
149329, July 12, 2004). defense, the teacher stated that the
work performed by her pupil is not
hazardous. Is her defense tenable?
Why? (Bar Question 2012)
ALTERNATIVE ANSWER:
Yes. Undeniably, handicapped SUGGESTED ANSWER:
workers are never on equal terms with The defense is not tenable. Children
the bank as employer. In Philippine below fifteen (15) years of age shall not
National Oil Company-Energy be employed except: (1) when a child
Development Corporation v. NLRC, works directly under the sole
G.R. No. 97747, March 31, 1993, the responsibility of his/her family are
Supreme Court set down two criteria employed xxx; or (2) where a child‘s
under which fixed contracts of employment or participation in public
employment do not circumvent entertainment or information through
security of tenure, to wit: 1. The fixed cinema, theater, radio, television or
period of employment was knowingly other form of media is essential xxx.‖
and voluntarily agreed upon by the (Section 12, R.A. No. 7610, as amended
parties, without any force, duress or by R.A. No. 9231).
improper pressure being brought to
bear upon the employee and about Kasambahays
any other circumstances vitiating his 1. Inday was employed by mining
consent; or 2. It satisfactorily appears company X to perform laundry service
that the employer and the employee at its staffhouse. While attending to her
dealt with each other on more or less assigned task, she slipped and hit her
equal terms with no moral dominance back on a stone. Unable to continue
whatever being exercised by the with her work, she was permitted to go
former on the latter. Even granting that on leave for medication, but thereafter
the handicapped workers and the she was not allowed to return to work.
bank agreed to term employment, it She filed a complaint for illegal
could not be said that they "dealt with dismissal but her employer X
each other on more or less equal terms contended that Inday was not a
with no moral dominance whatever regular employee but a mere
being exercised by the former over the househelp. Decide. (Bar Question
latter." 2007)

Minors SUGGESTED ANSWER:


1. A spinster school teacher took pity on Inday is a regular employee because
one of her pupils, a robust and she performs work that is usually
precocious 12-year old boy whose necessary and desirable in the business
poor family could barely afford the of the mining company. Services
cost of his schooling. She lives alone at rendered in a staff house of a
her house near the School after her company within the premises of a
housemaid had left. In the afternoon, company cannot be considered as
she lets the boy do various chores such household work. (Apex Mining
as cleaning, fetching water and all Company, Inc., v. NLRC., G.R. No.
kinds of errands after school hours. She 94951, April 22, 1991).
gives him rice and P100.00 before the

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2. Your favorite relative, Tita Nilda, approaches 21 of the Kasambahay Law allows both
you and seeks your advice on her treatment the employer and domestic worker to
of her kasambahay, Noray. Tita Nilda shows agree on certain arrangements to
you a document called a "Contract of offset, waive, or accumulate rest days,
Engagement" for your review. Under the subject to payment of appropriate
Contract of Engagement, Noray shall be wages and benefits.
entitled to a rest day every week, provided
that she may be requested to work on a rest (c) Are stay-in family drivers included under
day if Tita Nilda should need her services that the Kasambahay Law? (2.5%)
day. Tita Nilda also claims that this Contract of
Engagement should embody all terms and SUGGESTED ANSWER:
conditions of Noray's work as the engagement (c) No. Family drivers are not included
of a kasambahay is a private matter and under the Kasambahay Law. A
should not be regulated by the State. “Kasambahay” refers to any person
engaged in domestic work within an
employment relationship such as, but
(a) Is Tita Nilda correct in saying that this is a not limited to, the following: general
private matter and should not be regulated by househelp, nursemaid or “yaya”, cook,
the State? (2.5%) gardener, or laundry person, but shall
exclude any person who performs
SUGGESTED ANSWER: domestic work only occasionally or
(a) Tita Nilda is incorrect. The sporadically and not on an
relationship between Tita Nilda and occupational basis.
Noray is an employer-employee
arrangement that is regulated by the ALTERNATIVE ANSWER:
police power of the State. Through the (c) The Republic Act No. 10361 does
Batas Kasambahay (R.A. 10361), the not exclude family drivers from the
State recognizes this employment coverage of the Kasambahay law. It is
relationship and establishes minimum only in the Implementing Rules that the
labor standards for domestic workers, family drivers were excluded. Note that
toward decent employment and the Labor Code explicitly includes
income, enhanced coverage of social “family drivers and other persons in the
protection and respect for human personal service of another in the
rights, and strengthened social coverage of the Labor Code, and
dialogue. Also, since domestic workers hence, it is believed that the family
are generally working women in drivers should fall within the ambit of
vulnerable working conditions, the the Kasambahay Law. The exclusion of
State regulates domestic worker drivers in the Implementing Rules is
employment to prevent abuse and without basis.
exploitation and uphold the gender
rights of domestic workers. Domestic helper or househelper or
domestic servant shall refer to any
(b) Is the stipulation that she may be requested person, whether male or female, who
to work on a rest day legal? (2.5%) renders services in and about the
employer’s home and which services
SUGGESTED ANSWER: are usually necessary or desirable for
(b) Yes. Such a stipulation is legal as it the maintenance and enjoyment
states that Noray may only be thereof, and ministers exclusively to the
“requested” to work on a rest day, personal comfort and enjoyment of
thereby recognizing that the consent the employers’ family. Such definition
of Noray is needed in order to waive covers family drivers, domestic
her right to a weekly rest day. Section servants, laundry women, yayas,

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gardeners, houseboys and other similar returned to or repurchased by said contractor.


househelps (Apex Mining Company, (Art. 155, Labor Code).
Inc. v. NLRC, 196 SCRA 251 [1991]).
IV. POST EMPLOYMENT
Homeworker A. Employer – Employee Relationship
Test to determine existence:
1. Albert, a 40-year old employer, asked 1. A, B, and C were hired as resident-
his domestic helper, Inday, to give him doctors by MM Medical Center, Inc. In
a private massage. When Inday the course of their engagement, A, B,
refused, Albert showed her Article 141 and C maintained specific work
of the Labor Code, which says that one schedules as determined by the
of the duties of a domestic helper is to Medical Director. The hospital also
minister to the employer’s personal monitored their work through
comfort and convenience. Distinguish supervisors who gave them specific
briefly, but clearly, a "house helper" instructions on how they should
from a "homeworker." (Bar Question perform their respective tasks,
2009) including diagnosis, treatment, and
management of their patients.
SUGGESTED ANSWER:
Art. 141. – Domestic Helper – one who performs One day A, B, and C approached the
services in the employer's house which is Medical Director and inquired about
usually necessary or desirable for the the non-payment of their employment
maintenance and enjoyment thereof and benefits. In response, the Medical
includes ministering to the personal comfort Director told them that they are not
and convenience of the members of the entitled to any because they are mere
employer‘s household, including the services "independent contractors" as expressly
of a family driver. stipulated in the contracts which they
admittedly signed. As such, no
Art. 153. – Homeworker – is an industrial worker employer-employee relationship exists
who works in his/her home processing raw between them and the hospital.
materials into finished products for an
employer. It is a decentralized form of (a) What is the control test in
production with very limited supervision or determining the existence of an
regulation of methods of work. employer-employee? (Bar question
2019)
Employment; Homeworkers (2000)
Mrs. Josie Juan is the confidential secretary of SUGGESTED ANSWER:
the Chairman of the Board of the bank. She is
presently on maternity leave. In an (a) The control test constitutes the most
arrangement where the Chairman of the important index of existence of the
Board can still have access to her services, the existence of the employer-employee
bank allows her to work in her residence during relationship; it refers to the employer’s
her leave. For this purpose, the bank installed power to regulate how the work is
a fax machine in her residence, and gave her supposed to be done. Under the
a cellphone and a beeper. Is Mrs. Juan a "control test," an employment
homeworker under the law? Explain. (3%) relationship exists between a physician
and a hospital if the hospital controls
SUGGESTED ANSWER: No, she is actually an both the means and the details of the
office worker. She is not an industrial process by which the physician is to
homeworker who accepts work to be accomplish his task. (Nogales v.
fabricated or processed at home for a Capitol Medical Center, G.R. No.
contractor, which work, when finished, will be 142625, December 19, 2006, 511 SCRA

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204, 221 citing Diggs v. Novant Health, specific job, work or service within a
Inc., 628 S.E.2d 851 (2006). definite or predetermined period,
regardless of whether such job, work or
(b) Is the Medical Director’s reliance on the service is to be performed or
contracts signed by A, B, and C to refute the completed within or outside the
existence of an employer-employee premises of the principal. A person is
relationship correct? If not, are A, B, and C considered engaged in legitimate job
employees of MM Medical Center, Inc.? contracting or subcontracting if the
explain. following conditions concur:

SUGGESTED ANSWER: (a) The contractor or subcontractor


No. The medical director’s reliance on carries on a distinct and independent
the contracts signed by A, B and C will business and undertakes to perform
not refute the existence of the the job, work or service on its own
employer-employee relationship account and under its own
between the hospital and the former responsibility according to its own
because the power to control the manner and method, and free from
employees’ conduct will be the the control and direction of the
determining factor in the existence of principal in all matters connected with
such a relationship. Under the control the performance of the work except as
test, both the means to perform the to the results thereof;
work as well as the result is subject to
the authority of the employer. Thus, A, (b) The contractor or subcontractor
B and C are employees of the hospital. has substantial capital or investment;
and
Legitimate subcontracting as distinguished (c) The agreement between the principal and
from labor contracting contractor or subcontractor assures the
1. The labor sector has been loudly contractual employees entitlement to all labor
agitating for the end of labor-only and occupational safety and health
contracting, as distinguished from job standards, free exercise of the right to self-
contracting. Explain these two kinds of organization, security of tenure, and social
labor contracting, give the effect of a and welfare benefits.
finding that one is a labor-only
contractor. Explain your answers. (Bar In contrast, labor-only contracting, a
Question 2017) prohibited act, is an arrangement where the
contractor or subcontractor merely recruits,
SUGGESTED ANSWER: supplies or places workers to perform a job,
The Supreme Court in Polyfoam-RGC work or service for a principal. In labor-only
International Corporation vs. contracting, the following elements are
Concepcion, G.R. No. 172349, June 13, present:
2012 citing Sasan, Sr. v. National Labor (a) The contractor or subcontractor
Relations Commission 4th Division, G.R. does not have substantial capital or
No. 176240, October 17, 2008, 569 investment to actually perform the job,
SCRA 670 distinguished permissible job work or service under its own account
contracting or subcontracting from and responsibility; and
“labor-only” contracting, to wit: (b) The employees recruited, supplied
or placed by such contractor or
“Permissible job contracting or subcontractor are performing activities
subcontracting refers to an which are directly related to the main
arrangement whereby a principal business of the principal.”
agrees to put out or farm out to a
contractor or subcontractor the
performance or completion of a

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The following are the effects of finding that free from the control and direction of his
one is a labor only contractor: principal in all matters concerned with the
(1) Job-only Contracting is legal; performance of the work except as to the
whereas, Labor-Only Contracting is results thereof; and (2) the contractor has
prohibited by law. substantial capital or investment in the form of
(2) In Job-Only contracting, the tools, equipment machineries, work premises
principal is only an indirect employer; and other materials which are necessary in the
whereas, in Labor-only contracting, conduct of his business (Baguio v. NLRC, G.R
the principal becomes the direct Nos. 79004-08, October 4,1991, 202 SCRA 465)
employer of the employees of the
labor-only contractor. A finding that a contractor is a labor-only
(3) The liability of the principal in Job contractor is equivalent to a declaration that
Only Contracting vis-à-vis employees there is an employer-employee relationship
of the job-contractor is for a limited between the principal and the employees of
purpose only, e.g. wages and violation the labor-only contractor (Industrial Timber
of labor standard laws; whereas, the Corp. v. NLRC, G.R No. 83616, January 20,
liability of the principal in Labor-Only 1989, 169 SCRA 341). In such a case, the
Contracting is for a comprehensive person or intermediary shall be considered
purpose and, therefore, the principal merely as an agent of the employer, who shall
becomes solidarily with the labor-only be responsible to the workers in the manner
contractor for all the rightful claims of and extent as if the latter were directly
the employees. employed by him, (Sandoval Shipyards, Inc. V.
Prisco Pepito, G.R No. 143428, June 25, 2001,
In Job-Only contracting, no employer- 359 SCRA 555). The liability of the principal vis-
employee relationship exists between a-vis the employees of the labor-only
the principal and the employees of the contractor is comprehensive, i.e not only for
job contractor; whereas, in Labor-Only unpaid wages but for all claims under the
contracting, the law creates an Labor Code and ancillary laws (San Miguel
employer-employee relationship Corporation v MAERC Integrated Services;
between the principal and the Inc., G.R No. 144672, July 10, 2003. 405 SCRA
employees of the labor-only 579)
contractor.
Kinds of Employment:
Alternative Answer: Regular Employment
There is labor-only contracting where: 1. Super Comfort Hotel employed a
(1) the person supplying workers to an regular pool of "extra waiters" who are
employer does not have substantial called or asked to report for duty when
capital or investment in the form of the Hotel's volume of business is
tools, equipment, machineries, work beyond the capacity of the regularly
premises, among others; and (2) the employed waiters to undertake. Pedro
workers recruited and placed by such has been an "extra waiter" for more
person are performing activities which than 10 years. He is also called upon to
are directly related to the principal work on weekends, on holidays and
business of such employer (Baguio v. when there are big affairs at the hotel.
NLRC, G.R Nos 79004-08, October 4, What is Pedro's status as an employee
1991, 202 SCRA 465; Art.106, Labor under the Labor Code? Why? Explain
Code) your answer fully. (Bar Question 2008)
There is job contracting where: (1) the
contractor carries on an independent business SUGGESTED ANSWER:
and undertakes the contract work on his own Pedro has acquired the status of a
account under his own responsibility regular employee. Pedro has engaged
according to his own manner and method, to perform activities which are

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necessary or desirable to the usual considered as regular employees


business or trade of the employer. under Article 280 of the Labor Code.
Moreover, Pedro has been an ―extra Their employment is governed by the
waiter for more than 10 years. Any contracts they sign everytime they are
employee who has rendered service rehired and their employment is
for one year, whether continuous or terminated when the contract expires.
broken, shall be considered a regular Their employment is contractually fixed
employee with respect to the activities for a certain period of time. They fall
of which he is employed and his under the exception of Article 280
employment shall continue while such whose employment has been fixed for
activity exists (Art. 280, Labor Code). a specific project or undertaking the
completion or termination of which has
Alternative Answer: been determined at the time of
Pedro is a regular, but seasonal worker. engagement of the employee or
He is regular because as a waiter, he where the work or services to be
was engaged to perform activities performed is seasonal in nature and
which are usually necessary or the employment is for the duration of
desirable in the usual business or trade the season. We need not depart from
of employer Super Comfort Hotel. the rulings of the Court in the two
However, his security of tenure is aforementioned cases which indeed
coterminous with the seasonal need constitute stare decisis with respect to
for which he was hired (Art. 280, 1st the employment status of seafarers.
par., Labor Code)
Alternative Answer:
Contractual Employment No, Marciano's claim is not tenable.
1. Marciano was hired as Chief Engineer Seafarers are contractual employees
on board the vessel M/V Australia. His for a fixed term, governed by the
contract of employment was for nine contracts they sign. We should not
months. After nine months, he was re- depart from the rulings of the Supreme
hired. He was hired a third time after Court in Brent School, hic. v. Zamora
another nine months. He now claims (GSR. No. L-48494, February 5, 1990, 181
entitlement to the benefits of a regular SCRA 702); Coyoca v. NLRC (G.R. No.
employee based on his performed 113658, March 31, 1995, 243 SCRA 190);
tasks usually necessary and desirable and Millares v. NLRC (G.R. No. 110524,
to the employer’s business for a July 29, 2002, 385 SCRA 306), which
continuous period of more than one constitute stare decisis with respect to
year. Is Marciano’s claim tenable? the employment status of seafarers as
Explain. (Bar Question 2017) contractual employees, not regular
employees, notwithstanding
SUGGESTED ANSWER: performance of-usually necessary and
Marciano’s claim is not tenable. The desirable functions which exceed one
Supreme Court squarely passed upon year or continuous rehiring.
the issue in Millares v. NLRC, G.R. No.
110524, July 29, 2002, where one of the B. Termination by Employer
issues raised was whether seafarers are Substantive Due Process
regular or contractual employees (a) Just Cause
whose employment are terminated 1. Atty. Renan, a CPA-lawyer and
every time their contracts of Managing Partner of an accounting
employment expire. The Supreme firm, conducted the orientation
Court explained: [I]t is clear that seminar for newly-hired employees of
seafarers are considered contractual the firm, among them, Miss Maganda.
employees. They can not be After the seminar, Renan requested

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Maganda to stay, purportedly to I will serve notice to both the worker


discuss some work assignments. Left and the Regional Office of the
alone in the training room, Renan Department of Labor and
asked Maganda to go out with him for Employment, at least one (1) month
dinner and ballroom dancing. before the intended date of closure.
Thereafter, he persuaded her to (Art. 283, Labor Code); and (2) provide
accompany him to the mountain proof of ABC‘s serious business losses or
highway in Antipolo for sight-seeing. financial reverses (Balasbas v. NLRC,
During all these, Renan told Maganda G.R. No. 85286, August 24, 1992)
that most, if not all, of the lady
supervisors in the firm are where they Are the employees entitled to separation pay?
are now, in very productive and (2%)
lucrative posts, because of his
favorable endorsement. The lady SUGGESTED ANSWER:
supervisors in the firm, slighted by No, but in cases where closure is due to
Renan’s revelations about them, serious business losses, no separation
succeeded in having him expelled pay is required. (North Davao Mining
from the firm. Renan then filed with the Corp. v. NLRC, 254 SCRA 721; JAT
Arbitration Branch of the NLRC an General Services v. NLRC, 421 SCRA 78
illegal dismissal case with claims for [2004])
damages against the firm. Will the
case prosper? Reasons. (Bar Question Procedural Due Process
2009) 1. Alfredo was dismissed by
management for serious misconduct.
SUGGESTED ANSWER: He filed suit for illegal dismissal, alleging
No, the case for illegal dismissal with that although there may be just cause,
damages filed in the Office of Labor he was not afforded due process by
Arbiter will not prosper. Renan was management prior to his termination.
terminated for serious misconduct He demands reinstatement with full
which is a just cause under Art. 282 of backwages. What are the twin
the Labor Code. The act of Renan is requirements of due process which the
grave and aggravated in character, employer must observe in terminating
and committed in connection with his or dismissing an employee? Explain.
work (Echaverria v. Venutek Media, (Bar Question 2009)
516 SCRA 72 [2007]), and indicates that
he has become unfit to continue
working for his employer (Torreda v. SUGGESTED ANSWER:
Toshibe Info. Equipment, Inc. Phils., 515 The twin requirements of due process
SCRA 133 [2007]). are notice and hearing to be given to
the worker. There is likewise a two-
(b) Authorized Cause notice requirement rule, with the first
1. ABC Tomato Corporation, owned and notice pertaining to specific causes or
managed by three (3) elderly brothers grounds for termination and directive
and two (2) sisters, has been in business to submit a written explanation within a
for 40 years. Due to serious business reasonable period. ―The second
losses and financial reverses during the notice pertains to the notice of
last five (5) years, they decided to termination. Pursuant to Perez v.
close the business. As counsel for the Philippine Telegraph and Telephone
corporation, what steps will you take Company (G.R. N. 152048, 7 April
prior to its closure? (Bar Question 2012) 2009), the Court held that a hearing or
SUGGESTED ANSWER: conference is not mandatory, as long
as the employee is given ―ample

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opportunity to be heard‖, i.e. any was obtained from her spouse through
meaningful opportunity (verbal or undue pressure and influence. The
written) to answer the charges against employer filed a motion to dismiss on
him or her and submit evidence in the ground that (1) the NLRC did not
support of the defense, whether in a have jurisdiction over money claims,
hearing, conference, or some other and (2) the action has prescribed.
fair, just and equitable way.
(a) Does the NLRC have jurisdiction to
Illegal Dismissal award money claims including interest
No just or authorized cause on the amount unpaid? (Bar Question
1. Cite four (4) instances when an illegally 2018)
dismissed employee may be awarded
separation pay in lieu of reinstatement. SUGGESTED ANSWER:
(Bar question 2009) (a) The NLRC has jurisdiction over
money claims arising from an
SUGGESTED ANSWER: employer-employee relationship
These four instances are: (i) in case the where the amount claimed is in excess
establishment where the employee is of PhP 5,000, including interest,
to be reinstated has closed or ceased regardless of whether or not there is a
operations; (ii) where the company claim for reinstatement. (Sec. 10, RA
has been declared insolvent; (iii) 8042, as amended by RA 10022.
former position no longer exists at the
time of reinstatement for reason not (b) Assuming that the NLRC has jurisdiction,
attributable to the fault of the has the action prescribed?
employer; and (iv) where the
employee decides not to be SUGGESTED ANSWER:
reinstated as when he does not pray (b) In Accessories Specialists, Inc. v.
for reinstatement in his complaint or Alabama, (G.R. No. 168985, July 23,
position paper. 2008), the Supreme Court held that the
principle of promissory estoppel can
Money Claims arising from employer apply as a recognized exception to
employee relationship the three-year prescriptive period
1. Due to his employer's dire financial under Article 291 (now 306) of the
situation, Nicanor was prevailed upon Labor Code. Nicanor relied on the
by his employer to voluntarily resign. In promise of the employer that he would
exchange, he demanded payment of be paid as soon as the claims of
salary differentials, 13th month pay, retrenched employees were paid. If
and financial assistance, as promised not for this promise, there would have
by his employer. Management been no reason why Nicanor would
promised to pay him as soon as it is delay the filing 5 of the complaint.
able to pay off all retrenched rank- Great injustice would be committed if
and-file employees. Five years later, the employee’s claim were brushed
and before management was able to aside on mere technicality, especially
pay Nicanor the amount promised to when it was the employer’s action that
him, Nicanor died of a heart attack. His prevented Nicanor from filing the
widow, Norie. filed a money claim claims within the required period.
against the company before the
National Labor Relations Commission ALTERNATIVE ANSWER:
(NLRC), including interest on the (b) Yes, the action has unfortunately
amount of the unpaid claim. She also been prescribed as there is only a
claimed additional damages arguing three-year prescriptive period for
that the supposed resignation letter monetary claims under the Labor

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Code as in the case of retirement retirement benefits stating that only


benefits. full-time permanent faculty, who have
served for at least five years
(c) May Nicanor's spouse successfully claim immediately preceding the
additional damages as a result of the alleged termination of their employment, can
undue pressure and influence? avail themselves of post-employment
benefits. As a part-time faculty
SUGGESTED ANSWER: member, Narciso did not acquire
(c) Norrie failed to establish that permanent employment status under
Nicanor’s consent was vitiated when the Manual of Regulations for Private
he filed his resignation letter. In BMG Schools, in relation to the Labor Code,
Record v. Aparecio, (G.R. No. 153290, regardless of his length of service.
September 5, 2007), the SC ruled that
the matter of “financial assistance” (a) Is Narciso entitled to retirement benefits?
was an act of generosity on the part of (Bar Question 2018)
management. Under the
circumstances, Nicanor had the SUGGESTED ANSWER:
intention to resign. Once (a) As a part-time employee with fixed-
management had accepted the term employment, Narciso is entitled to
resignation, Nicanor could not retirement benefits. Book VI, Rule II of
unilaterally withdraw this voluntary act the Rules Implementing the Labor
of termination of employment. Code states that the rule on retirement
shall apply to all employees in the
ALTERNATIVE ANSWER: private sector, regardless of their
(c) No. In this case Nicanor voluntarily position, designation or status and
resigned. Burden of proof of the fact of irrespective of the method by which
dismissal, and of the alleged undue their wages are paid, except to those
pressure and influence, is upon specifically exempted. Part-time
Nicanor’s wife as claimant. Absent faculty members do not fall under the
such proof, the claim of damages must exemption. Based also on the
fail (Del Castillo, Malixi v. Mexicali Retirement Pay Law, and its
Philippines, G.R. No. 205061, June 8, Implementing Rules, part-time faculty
2016). members of private educational
institutions are entitled to full retirement
D. Termination by Employee benefits even if the services are not
Retirement continuous, and even if their contracts
1. Narciso filed a complaint against Norte have been renewed after their
University for the payment of mandatory age of retirement.
retirement benefits after having been
a part-time professional lecturer in the
same school since 1974. Narciso ALTERNATIVE ANSWERS:
taught for two semesters and a (a) Under Art 302 (287) of the Labor
summer term for the school year 1974- Code as amended by Republic Act
1975, took a leave of absence from No. 7641, part-timers are entitled to
1975 to 1977, and resumed teaching retirement benefits (De La Salle
until 2003. Since then, his contract has Araneta University v. Bernardo, G.R.
been renewed at the start of every No. 190809, February 13, 2017)
semester and summer, until November provided they comply with the
2005 when he was told that he could following conditions precedent for
no longer teach because he was optional retirement: a. That there is no
already 75 years old. Norte University retirement plan between the employer
also denied Narciso's claim for and the employee and b. The

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employee should have reached the Yes, workers decide whether they will
age of 60 years, and should have or will not become members of a labor
rendered at least 5 years of service organization. That's why a union's
with the employer. In this case, Narciso constitution and by-laws need the
is entitled to retirement benefits since members' adoption and ratification.
he reached the age of 75 years old Moreover, if they are members of a
and rendered service for more than 5 religious group whose doctrine forbids
years as a part timer; therefore entitled union membership, their right not to be
to retirement benefits. compelled to become union members
has been upheld. However, if the
(b) If he is entitled to retirement benefits, how worker is not a "religious objector" and
should retirement pay be computed in the there is a union security clause, he may
absence of any contract between him and be required to join the union if he
Norte University providing for such benefits? belongs to the bargaining unit. [Reyes
v. Trajano, 209 SCRA 484 (1992)].
SUGGESTED ANSWER:
(b) In the absence of any contract (i) Even employees of non-stock non-
providing for higher retirement profit organizations have the right to
benefits, private educational self-organization. This is explicitly
institutions, including Norte University, provided for in Art. 243 of the Labor
are obligated to set aside funds for the Code. A possible exception, however,
retirement pay of all its part-time are employee-members of non-stock
faculty members. A covered non-profit cooperatives.
employee who retires pursuant to the
Retirement Pay Law shall be entitled to (ii) ALIEN EMPLOYEES with valid work
retirement pay equivalent to at least permits in RP may exercise the right to
one-half (1/2) month salary for every self-organization on the basis of parity
year of service, a fraction of at least six or reciprocity, that is, if Filipino workers
(6) months being considered as one in the aliens' country are given the
whole year. One-half month salary same right. (Art. 269, Labor Code.]
shall mean fifteen (15) days plus one-
twelfth (1/12) of the 13th month pay 2. Do employees of a cooperative have
and the cash equivalent of not more a right to form a union? Explain briefly. (2%)
than five (5) days service incentive
leaves. In total, this should amount to SUGGESTED ANSWER:
22.5 days for every year of service (De Employees who are members of a
La Salle Araneta University v. Bernardo, cooperative cannot form a union
G.R. No. 190809, February 13, 2017) because, as members, they are
owners and owners cannot bargain
V. LABOR RELATIONS with themselves. However, employees
A. RIGHT TO SELF-ORGANIZATION who are not members of the
1. (1) Do workers have a right not to join cooperative can form a union. [San
a labor organization? (3%) Jose Electric Service Cooperative v.
Ministry of Labor, 173 SCRA 697 (1989)]
(2) Do the following workers have the
right to self organization?
Reasons/basis (2%) 3. A group of employees in XYZ Factory
a. Employees of non-stock, belonging to a religious sect, in conformity with
non-profit organizations? the teachings and dictates of their religion,
b. Alien employees? refused to join the labor union in the factory.
The labor union was able to negotiate a
SUGGESTED ANSWER: substantial wage increase in its collective

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bargaining agreement with management. A and C ‒ participated in the


provision therein stated that the wage certification elections ordered by the
increase would be paid to the members of the Med-Arbiter. 500 employees voted.
union only in view of a "closed shop" union The unions obtained the following
security clause in the new agreement. The votes: A-200; B-150; C-50; 90
members of the sect protested and employees voted "no union"; and 10
demanded that the wage increase be were segregated votes. Out of the
extended to them. The officers of the union segregated votes, four (4) were cast
countered by demanding their termination by probationary employees and six (6)
from the company pursuant to the "closed were cast by dismissed employees
shop" provision in the just-concluded CBA. (6%) whose respective cases are still on
appeal. (10%)
(a) Is the CBA provision valid?
(A) Should the votes of the probationary and
SUGGESTED ANSWER: dismissed employees be counted in the total
No, the CBA provision is not valid. The votes cast for the purpose of determining the
benefits of a CBA are extendible to all winning labor union?
employees regardless of their
membership in the union because to (B) Was there a valid election?
withhold the same from non-union
members would be to discriminate (C) Should Union A be declared the winner?
against them. (National Brewery &
(D) Suppose the election is declared invalid,
Allied Industries Labor Union of the
which of the contending unions should
Philippines v. San Miguel Brewery, Inc.,
represent the rank-and-file employees?
G.R. No. L-18170, August 31,1963)
(E) Suppose that in the election, the unions
(b) Should the company comply with the
obtained the following votes: A-250; B-150; C-
union's demand of terminating the members
50; 40 voted "no union"; and 10 were
of the religious sect?
segregated votes. Should Union A be certified
as the bargaining representative.
SUGGESTED ANSWER:
No. The right to join includes the right
SUGGESTED ANSWERS:
not to join by reason of religious beliefs.
Members of said religious sect cannot
A. Yes. The segregated votes should be
be compelled or coerced to join the
counted as valid votes. Probationary
labor union even when the union has a
employees are not among the
closed shop agreement with the
employees who are ineligible to vote.
employer; that in spite of any closed
Likewise, the pendency of the appeal
shop agreement, members of said
of the six dismissed employees
religious sect cannot be refused
indicates that they have contested
employment or dismissed from their
their dismissal before a forum of
jobs on the sole ground that they are
appropriate jurisdiction; hence, they
not members of the collective
continue to be employees for purposes
bargaining union. (Victoriano v.
of voting in a certification election
Elizalde Rope Workers' Union, G.R. No.
(D.O. 40-03).
L-25246, September 12,1974)
B. Yes. The certification election is valid
because it is not a barred election and
the majority of the eligible voters cast
B.COLLECTIVE BARGAINING AGREEMENT
their votes.
BARGAINING REPRESENTATION
C. No. Union A should not be declared
1. Liwayway Glass had 600 rank-and-file
the winner because it failed to garner
employees. Three rival unions – A, B,
a majority of the valid votes. The

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majority of 500 votes, representing the general membership meeting duly


valid votes, is 251 votes. Since Union A called for the purpose;
received 200 votes only, it did not win (2) Secretary's record of the minutes of
the election. the meeting; and
(3) Individual written authorization for
D. None of the participating unions can check-off duly signed by the
represent the rank-and-file employees employee concerned.
for purposes of collective bargaining (See also: Gabriel vs. Secretary of Labor, G.R.
because none of them enjoys majority No. 115949, March 16, 2000)
representative status.
COLLECTIVE BARGAINING
E. If the 10 votes were segregated on the
same grounds, Union A cannot still be 1. Jenson & Jenson (J & J) is a domestic
certified as the bargaining corporation engaged in the
representative because its vote of 250 manufacturing of consumer products.
is still short of the majority vote of 251. Its rank-and-file workers organized the
However, if the 10 votes were validly Jenson Employees Union (JEU), a duty
segregated, the majority vote would registered local union affiliated with
be 246 votes. Since Union A received PAFLU, a national union. After having
more than a majority vote then it won been certified as the exclusive
the election. bargaining agent of the appropriate
bargaining unit, JEU-PAFLU submitted
CHECK OFF, ASSESSMENT, AGENCY its proposals for a Collective Bargaining
FEES Agreement with the company.

1. What requisites must a Union comply In the meantime, a power struggle


with before it can validly impose occurred within the national union
special assessments against its PAFLU between its National President,
members for incidental expenses, Manny Pakyao, and its National
attorney's fees, representation Secretary General, Gabriel Miro. The
expenses and the like? (3%). (Bar representation issue within PAFLU is
Question 2001) pending resolution before the Office of
the Secretary of Labor.By reason of this
SUGGESTED ANSWER: intra-union dispute within PAFLU, J & J
The Labor Code (in Art. 241(n)) obstinately and consistently refused to
provides that "no special assessments offer any counter proposal and to
or other extraordinary fees may be bargain collectively with JEU-PAFLU
levied upon the members of a labor until the representation issue within
organization unless authorized by a PAFLU shall have been resolved with
written resolution of a majority of all the finality. JEU-PAFLU filed a Notice of
members at a general membership Strike. The Secretary of Labor
meeting duly called for the purpose." subsequently assumed jurisdiction over
the labor dispute (1999 Bar Question)
ANOTHER SUGGESTED ANSWER:
In the case of ABS-CBN Employees 1. Will the representation issue that has arisen
Supervisors Union vs. ABS-CBN involving the national union PAFLU, to which
Broadcasting Corp., and Union the duty registered local union JEU is affiliated,
Officers, G.R. No. 106518, March bar collective bargaining negotiation with J &
11,1999, the Supreme Court ruled that J? Explain briefly. (3%)
the following are the requisites:
(1) Authorization by a written resolution 2. Can the Secretary of Labor decide the labor
of the majority of all the members at dispute by awarding the JEU CBA Proposals as

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the Collective Bargaining Agreement of the Agreement of the parties because


parties? Explain briefly. (2%) when the Secretary of Labor (under
Article 263[g]) assumes jurisdiction over
SUGGESTED ANSWER: a labor dispute causing or likely to
1. The representation issue that has cause a strike or lockout in an Industry
arisen involving the national union indispensable to the national interest,
PAFLU should not bar collective the Secretary of Lai or exercises the
bargaining negotiation with J and J. It power of compulsory arbitration over
is the local union JEU that has the right the labor dispute, meaning, that as an
to bargain with the employer J and J, exception to the general rule, the
and not the national union PAFLU. It is Secretary of Labor now has the power
immaterial whether the representation to set. or fix wages, rates of pay, hours
issue within PAFLU has been resolved of work or terms and conditions of
with finality or not. Said squabble could employment by determining what
not possibly serve as a bar to any should be the CBA of the parties. (See
collective bargaining since PAFLU is Divine Word University vs. Secretary of
not the real party-in-interest to the Labor, 213 SCRA 759)
talks; rather, the negotiations are
confined to the corporation and the COLLECTIVE BARGAINING AGREEMENT
local union JEU. Only the collective 1. Explain the automatic renewal clause
bargaining agent, the local union JEU, in a collective bargaining agreement?
possesses the legal standing to (2%) [INCLUDE. ASKED IN 1999 AND
negotiate with the corporation. A duly 2001]
registered local union affiliated with a
national union or federation does not
lose its legal personality or SUGGESTED ANSWER:
Independence (Adamson and The "AUTOMATIC RENEWAL CLAUSE" in
Adamson, Inc. v. The Court of Industrial a CBA refers to that provision of the
Relations and Adamson and Adamson Labor Code (Article 253) which states
Supervising Union (FFW), 127 SCRA 268 that "It shall be the duty of both parties
[1984]). (to a CBA) to keep the status quo and
to continue in full force and effect the
ALTERNATIVE ANSWER: terms and conditions of the existing
What is involved in the case in the agreement during the 60-day
question is a corporation engaged in (freedom) period and/or until a new
the manufacturing of consumer agreement is reached by the parties."
products. If the consumer products
that are being manufactured are not UNFAIR LABOR PRACTICE
such that a strike against the company NATURE/ASPECT
cannot be considered a strike in an 1. Around 100 workers of a mill in a
industry indispensable for the national coconut plantation organized
interest, then the assumption of themselves for the purpose of
jurisdiction by the Secretary of Labor is promoting their common interest and
not proper. Therefore, he cannot welfare. The workers’ association
legally exercise the powers of prepared a petition for increasing the
compulsory arbitration in the labor daily pay of its members in compliance
dispute. with minimum wage rates for their
sector in the region, and for granting
2. Yes. It is within assumption power. benefits to which they are entitled
The Secretary of Labor can decide the under the law. However, the workers
labor dispute by awarding the JEU CBA became restless and anxious after the
proposals as the Collective Bargaining owner-manager threatened them with

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mass lay-off if the association would thoroughly distracted. Norlyn tried to show the
press for their demands. Most of its HR manager's text message authorizing flyer
members have worked in the mill for 10 distribution during work hours, but the
to 15 years with no improvement in supervisor brushed it aside.
working conditions and monetary
benefits. The leaders of the workers’ As a result, Nad, Ned, and Nod were
association approached you and suspended for violating
asked: what legal steps could they company rules on trespass and highly-limited
take to protect their security of tenure? union activities during work hours. The Union
What advice could you give them? filed an unfair labor practice (ULP) case before
(5%) [Bar Question 2004] the NLRC for union discrimination.

SUGGESTED ANSWER: (a) Will the ULP case filed by the Union prosper
I would advise them to register the
workers' association with the
Department of Labor and SUGGESTED ANSWER:
Employment. Then, have the workers' No. Unfair labor practice refers to acts
association file a ULP case against the that violate the workers’ right to
employer. organize. The prohibited acts are
related to the workers’ right to self-
ANOTHER SUGGESTED ANSWER: organization, and to the observance
The workers are entitled to the of the collective bargaining
constitution (Art. XIII, Sec. 3, 1987 agreement. Without this element, the
Constitution) and statutory (Art. 279, acts of the Northern Light Corporation
Labor Code) guarantees of security of in suspending Nad, Ned and Nod for
tenure. When this right to security of violating company rules (on trespass
tenure is violated, an action for illegal and highly-limited activities during
dismissal is an available remedy. If they work hours), even if unfair, are not
are dismissed because of union unfair labor practices (General Santos
activities, an action for unfair labor Coca-Cola Plant Free Workers Union-
practice can be filed (Sec. 3, Art. XIII, TUPAS v Coca-Cola Bottlers Phil. Inc.,
Constitution; Art. 243, Labor Code.) If GR No. 178647, February 13, 2009).
successful, the workers will be entitled
to full back wages, including money (b) Assume the NLRC ruled in favor of the
value of benefits, and reinstatement Union. The Labor Arbiter's judgment included,
without loss of seniority (Art. 279, Labor among others, an award for moral and
Code). exemplary damages at PhP50,000.00 each for
Nad, Ned, and Nod. Northern Lights
BY EMPLOYER Corporation argued that any award of
1. In Northern Lights Corporation, union damages should be given to the Union, and
members Nad, Ned, and Nod sought not individually to its members. Is Northern
permission from the company to distribute Lights Corporation correct? (2.5%)
flyers with respect to a weekend union activity.
The company HR manager granted the SUGGESTED ANSWER:
request through a text message sent to No. In Digitel Telecommunications
another union member, Norlyn. While Nad, Philippines, Inc. v. Digitel Employees
Ned, and Nod were distributing the flyers at Union (DEU), G.R. No. 184903-04,
the company assembly plant, a company October 10, 2012, the Supreme Court
supervisor barged in and demanded that they ruled that the award of moral and
cease from distributing the flyers, stating that exemplary damages in illegal dismissal
the assembly line employees were trying to cases (applicable to suspension)
beat a production deadline and were resulting from unfair labor practices

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may be made in individual or engagement subject to the outcome


aggregate amounts. If the offended of the strike.
parties can be identified, then
damages may be awarded PICKET
individually, such as in the case at 1. Asia Union (Union) is the certified bargaining
hand. agent of the rank-and-file employees of Asia
Pacific Hotel (Hotel).
STRIKE
1. As a result of a bargaining deadlock The Union submitted its Collective Bargaining
between Lazo Corporation and Lazo Agreement (CBA) negotiation proposals to
Employees Union, the latter staged a strike. the Hotel. Due to the bargaining deadlock,
During the strike, several employees the Union, on December 20, 2014, filed a
committed illegal acts. Eventually, its members Notice of Strike with the National Conciliation
informed the company of their intention to and Mediation Board (NCMB). Consequently,
return to work. (6%) the Union conducted a Strike Vote on January
14, 2015, when it was approved.
(A) Can Lazo Corporation refuse to admit the
strikers? The next day, waiters who are members of the
Union came out of the Union office sporting
(B) Assuming the company admits the strikers, closely cropped hair or cleanly shaven heads.
can it later on dismiss those employees who The next day, all the male Union members
committed illegal acts? came to work sporting the same hair style. The
Hotel . prevented these workers from entering
(C) If due to a prolonged strike, Lazo the premises, claiming that they violated the
Corporation hired replacements, can it refuse company rule on Grooming Standards.
to admit the replaced strikers? [INLCUDED
BECAUSE A SIMILAR QUESTION WAS ALSO On January 16, 2015, the Union subsequently
ASKED IN A DIFFERENT YEAR] staged a picket outside the Hotel premises
and prevented other workers from entering
SUGGESTED ANSWERS: the Hotel. . The Union members blocked the
(A) No. A strike is a temporary ingress and egress of customers and
stoppage of work only. Therefore, employees to the Hotel premises, which
strikers can go back to their work in the caused the Hotel severe lack of manpower
event of a voluntary abandonment of and forced the Hotel to temporarily cease
their strike. operations resulting in substantial losses.

(B) After admission, the company can On January 20, 2015, the Hotel issued notices
hold the strikers behind the illegalities to Union members, preventively suspending
accountable for their acts. If found to them and charging them with the following
have committed acts justifying a offenses: (1) illegal picket; (2) violation of the
dismissal, said employees can be company rule on Grooming Standards; (3)
terminated after due process. illegal strike; and (4) commission of illegal acts
during the illegal strike. The Hotel later
(C) No. The positions left behind by terminated the Union officials and members
strikers are deemed legally who participated in the strike. The Union
unoccupied. Moreover, the hiring of denied it engaged in an illegal strike and
replacement workers does not countered that the Hotel committed an unfair
terminate the employer-employee labor practice (ULP) and a breach of the
relationship because a strike is a freedom of speech.
temporary stoppage of work only.
[a] Was the picketing legal? Was the mass
Finally, replacement workers are
action of the Union officials and members an
deemed to have accepted their
illegal strike? Explain. (2.5%)

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SUGGESTED ANSWER: neither oppression nor self destruction


The picket was illegal. The right to of the employer. The right of the
picket as a means of communicating employer to dismiss its erring
the facts of a labor dispute is a phase employees is a measure of self
of freedom of speech guaranteed by protection (Filipro v. NLRC, G.R. No.
the constitution (De Leon v. National 70546, October 16, 1966). The power to
Labor Union 100 Phil 789 [19571). But dismiss an employee is a recognized
this right is not absolute. Article 278 of prerogative that is inherent in the
the Labor Code provides that no employee's right to freely manage and
person engaged in picketing shall ... regulate its business (Philippine
obstruct the free ingress to or egress Singapore Transport Service v. NLRC,
from the employer's premises for lawful G.R. No. 95449 [19971).
purposes or obstruct public
thoroughfares. The acts of the union It cannot be said that the hotel is guilty
members in blocking the entrance and of violating the union member's right to
exit of thE hotel which caused it to shut freedom of speech. The right to
down temporarily makes the picket freedom of expression is not absolute;
illegal. it is subject to regulation so that it may
not be injurious to the right of another
The actions of all the union members in or to society. As discussed, the union
cropping or shaving their head is member's act of cropping or shaving
deemed an illegal strike. In the their heads caused substantial losses to
National Union of Workers in the Hotel the hotel caused by the cessation of its
Restaurant and Allied Industries operations. The Supreme Court in one
(NUWHRAINAPL-IUF) Dusit Hotel Nikko case held that the union's violation of
Chapter v. Court of Appeals, G.R. No. the hotel grooming standards was
163942 November 11 2008, the clearly a deliberate and concerted
Supreme Court ruled that the act of action to undermine the authority of
the Union was not merely an expression and to embarrass the hotel and was,
of their grievance or displeasure but therefore, not a protected action. The
was, indeed, a calibrated and physical appearance of the hotel
calculated act designed to inflict employees directly reflect the
serious damage to the hotel's character and well-being of the hotel,
grooming standards which resulted in being a five-star hotel that provides
the temporary cessation and service to topnotch clients.
disruption of the hotel's operations. This
should be considered as an illegal
strike. ASSUMPTION OF JURISDICTION:
1. Pursuant to his power under Sec. 278(g)
(263(g)) of the Labor Code, the Secretary of
[b] Rule on the allegations of ULP and violation Labor assumed jurisdiction over the 3-day old
of freedom of speech. Explain. (2.5%) strike in Armor Steel Plates, Inc., one of the
country’s bigger manufacturers of steel plates,
SUGGESTED ANSWER: and ordered all the striking employees to
The Hotel is not guilty of ULP. The act of return to work. The striking employees ignored
the hotel in suspending and eventually the order to return to work.
dismissing the union officers who
concertedly antagonized and (a) What conditions may justify the Secretary
embarrassed the hotel management of Labor to assume jurisdiction? (2.5%)
and, in doing so, effectively disrupted
the operations of the hotel, is an act of SUGGESTED ANSWER:
self-preservation. The law in protecting
the rights of the laborer authorizes

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Pursuant to Article 263 (g) [now 278 immediately return to work and the
(g)], when a labor dispute causes or is employer shall immediately resume
likely to cause a strike or lockout in an operations and readmit all workers
industry indispensable to the national under the same terms and conditions
interest, the Secretary of Labor and prevailing before the strike.
Employment may assume jurisdiction c. At any point in time, the
over the dispute and decide it or parties are not prevented from
certify the same to the National Labor submitting the dispute to Voluntary
Relations Commission (NLRC) for Arbitration with the Secretary of Labor
compulsory arbitration. (Section 1, and Employment or his/her duly
Operational Guidelines of Department authorized representative as Voluntary
Order No. 40-G-03, Series of 2010, Arbitrator or Panel of Voluntary
dated February 24, 2011) Arbitrators. (Section 3, OperationaL
Guidelines of Department Order No.
For a valid exercise of the assumption 40-G-03, Series of 2010, dated February
of jurisdiction authority, any of the 24, 2011)
following conditions must be present:
a. Both parties have requested While the consequence of
the Secretary of Labor and disobedience to the return to work has
Employment to assume jurisdiction been ruled in the case of Manila Hotel
over the labor dispute; or Employees Association v. Manila Hotel
b. After a conference called by Corporation, G.R. No. 154591, March 5,
the Office of the Secretary of Labor 2007. In holding that defiance of the
and Employment on the propriety of assumption order or a return-to work
the issuance of the Assumption or order by a striking employee, whether
Certification Order, motu proprio or a union officer or a member, is an
upon a request or petition by either illegal act and, therefore, a valid
party to the labor dispute. In the said ground for loss of employment status.
conference. the parties shall also be
encouraged to amicably settle the More to the point, the Court has
dispute. (Section 2, Operational consistently ruled in a long line of cases
Guidelines of Department Order No. spanning severaL Decades that once
40-G-03, Series of 2010, dated February the SOLE assumes jurisdiction over a
24, 2011). labor dispute, such jurisdiction should
not be interfered with by the
(b). What are the consequences of the application of the coercive processes
assumption of jurisdiction by the Secretary of of a strike or lockout. Defiance of the
Labor, and of the disobedience to the return assumption order or a return-to work
to work? Explain your answer. (2.5%) order by a striking employee, whether
a union officer or a member, is an
SUGGESTED ANSWER: illegal act and, therefore, a valid
The consequences of assumption of ground for loss of employment status.
jurisdiction are as follows: (Grand Boulevard Hotel v. Genuine
a. If a strike or lockout has not Labor Organization of Workers in Hotel,
taken place, the parties are enjoined Restaurant and Allied Industries
to conduct any untoward action that (GLOWHRAIN), G.R. No. 153664, 18 July
may lead to a strike or lockout. 2003, 406 SCRA 688, 710; Telefunken
b. if a strike or lockout has Semiconductors Employees Union-FFW
already taken place, all striking and v. Court of Appeals, G.R. Nos. 143013-
locked out workers shall, within twenty- 14, 18 December 2000, 348 SCRA 565,
four (24) hours from receipt of an 582; Federation of Free Workers v.
Assumption or Certification Order,

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Inciong, G.R. No. 49983, 20 April 1982, Dencio is required to report Baldo for
208 SCRA 157, 165). compulsory social security coverage
under the SSS Law. From the facts
VII. SOCIAL LEGISLATION mentioned, Baldo is clearly an
COVERAGE AND EXCLUSION employee of Dencio. Considering the
1. X is a member of the Social Security System length of time that Baldo has worked
(SSS). In 2015, he died without any spouse or with Dencio, it may be justifiably
children. Prior to the semester of his death, concluded that he is engaged to
X had paid 36 monthly contributions. His perform activities necessary or
mother, M, who had previously been desirable in the usual trade or business
receiving regular support from X, filed a of Dencio and is therefore a regular
claim for the latter’s death benefits. employee. Length of service was used
by the Supreme Court in the case of
(a) Is M entitled to claim death benefits from Brotherhood Labor Unity Movement of
the SSS? Explain. (2.5%) the Philippines v. Zamora, (G.R. No.
485451 January 7, 1987), to pronounce
(b) Assuming that X got married to his girlfriend that the individual involved is a regular
a few days before his death, is M entitled to employee. Baldo, is thus, not a casual
claim death benefits from the SSS? Explain. or temporary employee, exempted
(2.5%) from the coverage of the SSS Law.

Suggested Answers: [b] What are the liabilities of the employer who
fails to report his employee for social security
A. Yes, M is entitled to claim the death coverage? Explain. (2.5%)
benefits. Being the mother of X, who
was single and died without an issue, SUGGESTED ANSWER:
she is elevated to the status of sole The employer is subject to the following
beneficiary (Sec. 8(k) R.A 8282) liabilities: It shall pay to the SSS
damages equivalent to the benefit
B. In view of the marriage of X to his which the employee would have been
girlfriend, M is deemed restored to her entitled had his name been reported
secondary beneficiary status. Hence, on time to the SSS, except that in case
X’s wife will be his primary beneficiary of pension benefits, the employer shall
until she remarries; provided, she was be liable to pay the SSS damages
living with him at the time of his death. equivalent to five years monthly
[Sec. 8(k), RA 828; Yolanda Signey v. pension; however, if the contingency
SSS, GR No. 173582, January 28, 2008] occurs within thirty (30) days from date
of employment, the employer shall be
2. Baldo, a farm worker on pakyaw basis, had relieved of his liability for damages
been working on Dencio's land by (Sec. 24 (a), R.A. 1161, as amended). It
harvesting abaca and coconut, processing shall pay the corresponding
copra, and clearing weeds from year to unremitted contributions and penalties
year starting January 1993 up to his death thereon (Sec.24 (b), R.A. 1161, as
in 2007. He worked continuously in the amended).
sense that it was done for more than one
harvesting season. 3. Gene is a married regular employee of
Matibay Corporation. The employee and
[a] Was Dencio required to report Baldo for Matibay Corporation had an existing CBA that
compulsory social security coverage under provided for funeral or bereavement aid of
the SSS law? Explain. (2.5%) P15,000.00 in case of the death of a legal
dependent of a regular employee. His
SUGGESTED ANSWERS: widowed mother, who had been living with

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him and his family for many years, died; hence, the Philippines in Nueva Ecija. He and some
he claimed the funeral aid. Matibay other members of his detachment sought
Corporation denied the claim on the basis that permission from their Company Commander
she had not been his legal dependents as the for an overnight pass to Nueva Vizcaya to
term legal dependent was defined by the settle some important matters. The Company
Social Security Law. Commander orally approved their request
and allowed them to carry their firearms as the
(a) Who may be the legal dependents of place they were going to was classified as a
Gene under the Social Security Law? (2.5%) "critical place." They arrived at the place past
midnight; and as they were alighting from a
SUGGESTED ANSWER: tricycle, one of his companions accidentally
Section 8 (e) of the Social Security Law dropped his rifle, which fired a single shot, and
provides that the dependents shall be in the process hit Sgt. Nemesis fatally. The
the following: shooting was purely accidental. At the time of
(1) The legal spouse entitled by law to his death, he was still legally married to Nelda,
receive support from the member; but had been separated de facto from her for
(2) The legitimate, legitimated or 17 years. For the last 15 years of his life, he was
legally adopted, and illegitimate child living in with Narda, with whom he has two
who is unmarried, not gainfully minor children. Since Narda works as a
employed, and has not reached kasambahay, the two children lived with their
twenty-one (21) years of age, or if over grandparents, who provided their daily
twenty-one (21) years of age, he is support. Sgt. Nemesis and Narda only sent
congenitally or while still a minor has money to them every year to pay for their
been permanently incapacitated and school tuition.
incapable of self-support, physically or
mentally; and Nelda and Narda, both for themselves and the
(3) The parent who is receiving regular latter, also on behalf of her minor children,
support from the member. separately filed claims for compensation as a
result of the death of Sgt. Nemesis. The line of
(b) Is Gene entitled to the funeral aid for the Duty Board of the AFP declared Sgt. Nemesis'
death of his widowed mother? Explain your death to have been "in line of duty” and
answer. (2%) recommended that all benefits due to Sgt.
Nemesis be given to his dependents. However,
SUGGESTED ANSWER: the claims were denied by GSIS because Sgt.
Gene is entitled to the funeral aid for Nemesis was not in his workplace nor
the death of his widowed mother performing his duty as a soldier of the
under CBA. This is because the said Philippine Army when he died.
CBA clearly provided for funeral or
bereavement aid of P15,000.00 in case (a) Are the dependents of Sgt. Nemesis
of the death of a legal dependent of a entitled to compensation as a result of his
regular employee. But in so far as the death? (2.5%)
SSS law is concerned, the only way that
Gene can recover is if he will qualify as SUGGESTED ANSWER:
the primary beneficiary of his widowed (a) The death of Sgt. Nemesis arose out
mother provided he has the restrictions of and in the course of his employment as a
on the definition of dependent soldier on active duty in the AFP and hence,
children. compensable. The concept of a “workplace”
cannot always be literally applied to a soldier
GOVERNMENT SERVICE INSURANCE SYSTEM on active duty. Sgt. Nemesis had permission to
go to Nueva Vizcaya and he and his
1. Sgt. Nemesis was a detachment non- companions had permit to carry their firearms
commissioned officer of the Armed Forces of which they could use to defend themselves

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when attacked. A soldier on active duty is 1. Your favorite relative, Tita Nilda,
really on duty 24 hours a day since he can be approaches you and seeks your
called upon anytime by his superiors, except advice on her treatment of her
when he is on vacation leave status, which kasambahay, Noray. Tita Nilda shows
Sgt. Nemesis was not, at the time of his death you a document called a "Contract of
(Hinoguin v. ECC, G.R. No. 8430, April 17, 1989). Engagement" for your review. Under
the Contract of Engagement, Noray
(b) As between Nelda and Narda, who should shall be entitled to a rest day every
be entitled to the benefits? (2.5%) week, provided that she may be
requested to work on a rest day if Tita
SUGGESTED ANSWER: Nilda should need her services that
(b) To be considered as a beneficiary, day. Tita Nilda also claims that this
the spouse must be the legal spouse Contract of Engagement should
and living with the employee at the embody all terms and conditions of
time of his death. Nelda, as the Noray's work as the engagement of a
surviving spouse who has been kasambahay is a private matter and
separated de facto from the should not be regulated by the State.
deceased employee, may still
however be entitled if the separation (a) Is Tita Nilda correct in saying that this is a
was due to the covered employee’s private matter and should not be regulated by
abandonment of the spouse without the State? (2.5%)
valid reason, or for other justifiable
reasons. Narda, not being a legitimate
spouse, is not entitled to the benefits; SUGGESTED ANSWER:
however, the ECC may act as referee (a) Tita Nilda is incorrect. The
and arbitrator between two (2) relationship between Tita Nilda and
claimants to help each other reach a Noray is an employer-employee
mutually acceptable compromise arrangement that is regulated by the
settlement of allocating the police power of the State. Through the
compensation among themselves and Batas Kasambahay (R.A. 10361), the
their dependent children (Samar State recognizes this employment
Mining Co. Inc. v. WCC, G.R. No. L- relationship and establishes minimum
29938-39, March 31, 1971). labor standards for domestic workers,
toward decent employment and
(c) Are the minor children entitled to the income, enhanced coverage of social
benefits considering that they were not fully protection and respect for human
dependent on Sgt. Nemesis for support? (2.5%) rights, and strengthened social
dialogue. Also, since domestic workers
SUGGESTED ANSWER: are generally working women in
(c) Being a dependent does not mean vulnerable working conditions, the
absolute dependency for the State regulates domestic worker
necessities of life, but rather, that the employment to prevent abuse and
claimant looked up to and relied on exploitation and uphold the gender
the contribution of the covered rights of domestic workers.
employee for his means of living as
determined by his position in life. One (b) Is the stipulation that she may be requested
need not be in the deceased’s to work on a rest day legal? (2.5%)
household in order to be a dependent.
(Malate Taxicab v. Del Villar G.R. No. L- SUGGESTED ANSWER:
7489, Feb. 29, 1956). (b) Yes. Such a stipulation is legal as it
states that Noray may only be
KASAMBAHAY “requested” to work on a rest day,

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thereby recognizing that the consent The NLRC has no jurisdiction. As to PNN,
of Noray is needed in order to waive there is no employer-employee
her right to a weekly rest day. Section relationship between itself and NNN;
21 of the Kasambahay Law allows both hence, the NLRC cannot hear and
the employer and domestic worker to resolve their dispute (Reasonable
agree on certain arrangements to Causal Connection Rule). As to Anya,
offset, waive, or accumulate rest days, the injunctive power of the NLRC is
subject to payment of appropriate ancillary in nature; hence, it requires a
wages and benefits. principal case which is absent. Besides,
the dispute between her and PNN is
(c) Are stay-in family drivers included under not resolvable solely thru the
the Kasambahay Law? (2.5%) application of the Labor Code, other
labor statutes, CBA or employment
SUGGESTED ANSWER: contract (Reference to Labor Law
(c) No. Family drivers are not included Rule).
under the Kasambahay Law. A
“Kasambahay” refers to any person (b) What are the grounds for a labor injunction
engaged in domestic work within an to issue? (2%)
employment relationship such as, but
not limited to, the following: general SUGGESTED ANSWER:
househelp, nursemaid or “yaya”, cook, The NLRC may issue an injunctive writ
gardener, or laundry person, but shall to enjoin an illegal activity under Art.
exclude any person who performs 279 of the Labor Code; as an ancillary
domestic work only occasionally or remedy to avoid irreparable injury to
sporadically and not on an the rights of a party in an ordinary labor
occupational basis. dispute pursuant to Rule X, 2011 NLRC
Rules of Procedure, as amended; and
to correct the Labor Arbiter’s grave
VIII. JURISDICTION AND REMEDIES abuse of discretion pursuant to Rule XII
LABOR ARBITER of the 2011 NLRC Rules of Procedure,
as amended.
1. Philippine News Network
(PNN)engages the services of Anya, a (c) Distinguish the jurisdiction of a Labor Arbiter
prominent news anchor from a rival station, from that of the NLRC (3%)
National News Network (NNN). NNN objects to
the transfer of Anya claiming that she is barred SUGGESTED ANSWER:
from working in a competing company for a As to jurisdiction, the LA can hear and
period of three years from the expiration of her resolve cases under Art. 224 of the
contract. Anya proceeds to sign with PNN Labor Code, money claims under Sec.
which then asks her to anchor their nightly 7 of R.A. 10022; and referred wage
newscast. NNN sues Anya and PNN before the distortion disputes in unorganized
National Labor Relations Commission establishments, as well as the
(NLRC),asking for a labor injunction. Anya and enforcement of compromise
PNN object, claiming that it is a matter agreements pursuant to the 2011 NLRC
cognizable by a regular court and not the Rules of Procedure, as amended. On
NLRC. the other hand, the NLRC reviews
decisions rendered by the LA;
(a) Is NNN's remedy correct? Why or why not? decisions or orders rendered by the RD
(3%) under Art. 129 of the Labor Code; and
conducts compulsory arbitration in
SUGGESTED ANSWER: certified cases. As to the power to issue
a labor injunction, the NLRC can issue

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an injunctive writ. On the other hand, resolve the motion and determine the
the Labor Arbiter cannot issue an final amount of bond that shall be
injunctive writ. posted by the appellant, still in
accordance with the standards of
REQUIREMENTS TO PERFECT APPEAL TO THE meritorious grounds and reasonable
NLRC amount. Should the NLRC later
determine that a greater amount or
1. Filmore Corporation was ordered to the full amount of the bond needs to
pay P49 million to its employees by the Labor be posted by the appellant, then the
Arbiter. It interposed an appeal by filing a party shall comply accordingly. The
Notice of Appeal and paid the corresponding appellant has ten (10) days from
appeal fee. However, instead of filing the notice of the NLRC order to perfect the
required appeal bond equivalent to the total appeal by posting the required appeal
amount of the monetary award, Filmore filed bond.
a Motion to Reduce the Appeal Bond to
P4,000,000.00 but submitted a surety bond in REINSTATEMENT AND/OR EXECUTION PENDING
the amount of P4.9 million. Filmore cited APPEAL
financial difficulties as justification for its
inability to post the appeal bond in full owing 1. Juanito initiated a case for illegal
to the shutdown of its operations. It submitted dismissal against Mandarin Company. The
its audited financial statements showing loss of Labor Arbiter decided in his favor, and
P40 million in the previous year. To show its ordered his immediate reinstatement with full
good faith, Filmore also filed its Memorandum backwages and without loss of seniority and
of Appeal. The NLRC dismissed the appeal for other benefits. Mandarin Company did not like
non-perfection on the ground that posting of to allow him back in its premises to prevent him
an appeal bond equivalent to the monetary from influencing his co-workers to move
award is indispensable for the perfection of against the interest of the company; hence, it
the appeal and the reduction of the appeal directed his payroll reinstatement and paid his
bond, absent any showing of meritorious full backwages and other benefits even as it
ground to justify the same, is not warranted. Is appealed to the NLRC. A few months later, the
the dismissal of the appeal correct? Explain. NLRC reversed the ruling of the Labor Arbiter
(5%) and declared that Juanito’s dismissal was
valid. The reversal ultimately became final.
SUGGESTED ANSWER: May Mandarin Company recover the
No. In McBurnie v. Ganzon (G.R. Nos. backwages and other benefits paid to Juanito
178034, 186984-85, October 17, 2013), pursuant to the decision of the Labor Arbiter in
NLRC made a serious error in denying view of the reversal by the NLRC? Rule, with
outright the motion to reduce the reasons. (2.5%)
bond. Once the motion to reduce the
appeal bond is accompanied by at SUGGESTED ANSWER:
least 10% of the monetary awards, Mandarin Company cannot recover
excluding damages and attorney's the back wages and other benefits
fees, the same shall provisionally be paid to Juanito pursuant to the
deemed the reasonable amount of decision of the Labor Arbiter despite
the bond in the meantime that an the reversal by the NLRC. The refund
appellant's motion is pending doctrine has already been reversed in
resolution by the Commission. Only Garcia v. Philippine Airlines, Inc., G. R.
after the posting of a bond in the No. 164856, July 20, 2009, where the
required percentage shall an Supreme Court then stressed that as
appellant's period to perfect an opposed to the abovementioned
appeal under the NLRC Rules be Genuino v. National Labor Relations
deemed suspended. The NLRC must Commission, G.R. Nos. 142732-33 &

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142753-54, December 4, 2007, 539 apply as a recognized exception to


SCRA 342 the social justice principles of the three-year prescriptive period
labor law outweigh or render under Article 291 (now 306) of the
inapplicable the civil law doctrine of Labor Code. Nicanor relied on the
unjust enrichment. promise of the employer that he would
be paid as soon as the claims of
NLRC retrenched employees were paid. If
1. Due to his employer's dire financial situation, not for this promise, there would have
Nicanor was prevailed upon by his employer been no reason why Nicanor would
to voluntarily resign. In exchange, he delay the filing of the complaint. Great
demanded payment of salary differentials, injustice would be committed if the
13th month pay, and financial assistance, as employee’s claim were brushed aside
promised by his employer. Management on mere technicality, especially when
promised to pay him as soon as it is able to pay it was the employer’s action that
off all retrenched rank-and-file employees. prevented Nicanor from filing the
Five years later, and before management was claims within the required period.
able to pay Nicanor the amount promised to
him, Nicanor died of a heart attack. His widow, ALTERNATIVE ANSWER:
Norie. filed a money claim against the (b) Yes, the action has unfortunately
company before the National Labor Relations been prescribed as there is only a
Commission (NLRC), including interest on the three-year prescriptive period for
amount of the unpaid claim. She also claimed monetary claims under the Labor
additional damages arguing that the Code as in the case of retirement
supposed resignation letter was obtained from benefits.
her spouse through undue pressure and
influence. The employer filed a motion to (c) May Nicanor's spouse successfully
dismiss on the ground that (A) the NLRC did claim additional damages as a result
not have jurisdiction over money claims, and of the alleged undue pressure and
(8) the action has prescribed. influence? (2.5%)

(a) Does the NLRC have jurisdiction to award SUGGESTED ANSWER:


money claims including interest on the (c) Norrie failed to establish that
amount unpaid? (2.5%) Nicanor’s consent was vitiated when
he filed his resignation letter. In BMG
SUGGESTED ANSWER: Record v. Aparecio, (G.R. No. 153290,
(a) The NLRC has jurisdiction over September 5, 2007), the SC ruled that
money claims arising from an the matter of “financial assistance”
employer-employee relationship was an act of generosity on the part of
where the amount claimed is in excess management. Under the
of PhP 5,000, including interest, circumstances, Nicanor had the
regardless of whether or not there is a intention to resign. Once
claim for reinstatement. (Sec. 10, RA management had accepted the
8042, as amended by RA 10022. resignation, Nicanor could not
unilaterally withdraw this voluntary act
(b) Assuming that the NLRC has jurisdiction, of termination of employment.
has the action prescribed? (2.5%)
ALTERNATIVE ANSWER:
SUGGESTED ANSWER: (c) No. In this case Nicanor voluntarily
(b) In Accessories Specialists, Inc. v. resigned. Burden of proof of the fact of
Alabama, (G.R. No. 168985, July 23, dismissal, and of the alleged undue
2008), the Supreme Court held that the pressure and influence, is upon
principle of promissory estoppel can Nicanor’s wife as claimant. Absent

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such proof, the claim of damages must


fail (Del Castillo, Malixi v. Mexicali SUGGESTED ANSWER:
Philippines, G.R. No. 205061, June 8, (b) The union may file a complaint for
2016). illegal lockout, with prayer for
immediate reinstatement. The refusal
DOLE SECRETARY; JURISDICTION of Liwanag Corporation to admit the
strikers back is an illegal lockout
1. Liwanag Corporation is engaged in because it is not preceded by
the power generation business. A stalemate compliance with prescribed pre-
was reached during the collective bargaining lockout procedure. If the lockout is
negotiations between its management and unreasonably prolonged, the
the union. After following all the requisites complaint may be amended to
provided by law, the union decided to stage charge constructive dismissal.
a strike. The management sought the
assistance of the Secretary of Labor and VISITORIAL AND ENFORCEMENT POWER
Employment, who assumed jurisdiction over
the strike and issued a return-to-work order. 1. Inggo is a drama talent hired on a per
The union defied the latter and continued the drama "participation basis" by DJN Radio
strike. Without providing any notice, Liwanag Company. He worked from 8:00 a.m. until 5:00
Corporation declared everyone who p.m., six days a week, on a gross rate of P80.00
participated in the strike as having lost their per script, earning an average of P20,000.00
employment. (4%) per month. Inggo filed a complaint before the
Department of Labor and Employment (DOLE)
(a) Was Liwanag Corporation’s action valid? against DJN Radio for illegal deduction, non-
payment of service incentive leave, and 13th
SUGGESTED ANSWER: month pay, among others. On the basis of the
(a) Yes, the action of Liwanag complaint, the DOLE conducted a plant level
Corporation is valid. The DOLE inspection. The DOLE Regional Director issued
Secretary can assume jurisdiction in an order ruling that Inggo is an employee of
the event of a labor dispute likely to DJN Radio, and that Inggo is entitled to his
result in a strike in an industry involving monetary claims in the total amount of
national interest,like energy P30,000.00. DJN Radio elevated the case to
production (Art. 263(g); D.O. 40-H-13). the Secretary of Labor who affirmed the order.
His AJO, once duly served on the The case was brought to the Court of Appeals.
union, will produce an injunctive The radio station contended that there is no
effect. Hence, if ignored, the union’s employer-employee relationship because it
strike would be illegal even if it may was the drama directors and producers who
have complied with prestrike paid, supervised, and disciplined him.
procedure. As a consequence, Moreover, it argued that the case falls under
Liwanag Corporation may declare all the jurisdiction of the NLRC and not the DOLE
the strikers as having lost their because Inggo's claim exceeded PS,000.00.
employment as a consequence of [a] May DOLE make a prima facie
their intransigence (Sarmiento v. Tuico, determination of the existence of an
27 June 1988). employer-employee relationship in the
exercise of its visitorial and enforcement
(b) If, before the DOLE Secretary powers? (2.5%)
assumed jurisdiction, the striking union
members communicated in writing SUGGESTED ANSWER:
their desire to return to work, which Yes. Pursuant to Article 128 (b) of the
offer Liwanag Corporation refused to Labor Code, the DOLE may do so
accept, what remedy, if any, does the where the prima facie determination
union have? of employer-employee relationship is

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35

for the exclusive purpose of securing Code, Section 4, Rule XIX, Book V,
compliance with labor standards Omnibus Rules Implementing the
provisions of said Code and other labor Labor Code)
legislation. The DOLE, in the exercise of
its visitorial and enforcement powers, 2. The interpretation or enforcement of
somehow has to make a company personnel policies which
determination of the existence of an remain unresolved after exhaustion of
employer-employee relationship. Such the grievance procedure; (Article 274
determination, however, cannot be [261], Labor Code, Section 4, Rule XIX,
coextensive with the visitorial and Book V, Omnibus Rules Implementing
enforcement power itself. Indeed, the Labor Code)
such determination is merely
preliminary, incidental and collateral 3. Wage distortion issues arising from
to the DOLE's primary function of the application of any wage orders in
enforcing labor standards provisions organized establishments; (par. 4,
(People's Broadcasting Bombo Radyo Article 124, Labor Code, Section 4, Rule
Phils., Inc. v. Secretary of Labor, G.R. XIX, Book V, Omnibus Rules
No. 179652, May 8, 2009). Implementing the Labor Code)

[b] If the DOLE finds that there is an employee- 4. The interpretation and
employer relationship, does the case fall under implementation of the productivity
the jurisdiction of the Labor Arbiter considering incentive programs under RA 6971.
that the claim of Inggo is more than P5,000.00.
Explain. (2.5%) 5. Upon agreement of the parties, shall
SUGGESTED ANSWER: also hear and decide all other labor
No. As held in the case of Meteoro v. disputes including unfair labor
Creative Creatures, Inc., G.R. No. practices and bargaining deadlocks.
171275, July 13, 2009, the visitorial and (Article 275. [262], Labor Code, Section
enforcement powers of the Secretary, 4, Rule XIX, Book V, Omnibus Rules
exercised through his representatives, Implementing the Labor Code)
encompass compliance with all labor
standards taws and other labor 6. Violations of a Collective Bargaining
legislation, regardless of the amount of Agreement, except those which are
the claims filed by workers; thus, even gross in character, shall no longer be
claims exceeding P5,000.00. treated as unfair labor practice and
shall be resolved as grievances under
VOLUNTARY ARBITRATOR the Collective Bargaining Agreement;
(Article 274. [261], Labor Code)
1. State the jurisdiction of the Voluntary
Arbitrator, or Panel of Voluntary Arbitrators in JURISDICTION OF THE RTC (INTRA-CORPORATE
labor disputes? (4%) DISPUTE)

SUGGESTED ANSWER: 1. Mario comes from a family of coffee


The voluntary arbitrator or panel of bean growers. Deciding to incorporate his
voluntary arbitrators shall have fledgeling coffee venture, he invites his best
exclusive and original jurisdiction to friend, Carlo, to join him. Carlo is hesitant
hear and decide all unresolved because he does not have money to invest
grievances arising from: but Mario suggests a scheme where Carlo can
be the Chief Marketing Agent of the
1. The implementation or interpretation company, earning a salary and commissions.
of the collective bargaining Carlo agrees and the venture is formed. After
agreements; (Article 274 [261], Labor one year, the business is so successful that they

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were able to declare dividends. Mario is so have to personally commit the


happy with Carlo's work that he assigns 100 illegality, or ratify it, or be guilty of bad
shares of stock to Carlo as part of the latter's faith or gross neglect in order to be
bonus. personally liable.

Much later on, it is discovered that Carlo had RETRENCHMENT


engaged in unethical conduct which caused
embarrassment to the company. Mario is 1. Hagibis Motors Corporation (Hagibis)
forced to terminate Carlo but he does so has 500 regular employees in its car assembly
without giving Carlo the opportunity to plant. Due to the Asian financial crisis, Hagibis
explain. experienced very low car sales resulting to
huge financial losses. It implemented several
Carlo filed a case against Mario and the cost-cutting measures such as cost reduction
company for illegal dismissal. Mario objected on use of office supplies, employment hiring
on the ground that the Labor Arbiter had no freeze, prohibition on representation and
jurisdiction over the case as it would properly travel expenses, separation of casuals and
be considered as an intra-corporate reduced work week. As counsel of Hagibis,
controversy cognizable by the RTC. Further, what are the measures the company should
Mario claimed that because Carlo's dismissal undertake to implement a valid
was a corporate act, he cannot be held retrenchment? Explain. (5%)
personally liable.
SUGGESTED ANSWER:
(a) As the Labor Arbiter assigned to this case, For a valid retrenchment, the following
how would you resolve the jurisdiction requisites must be complied with: (a)
question. (3%) the retrenchment is necessary to
SUGGESTED ANSWER: prevent losses and such losses are
(a) Carlo is an employee. Hence, as proven; (b) written notice to the
LA, I have the power to hear and employees and to the DOLE at least
resolve his complaint. one month prior to the intended date
Carlo is not a corporate officer of the of retrenchment; and (c) payment of
business organization involved, which is separation pay equivalent to one-
a corporation based on the fact that it month pay or at least one-half month
was incorporated, declared dividends pay for every year of service,
and issued shares of stock. Being the whichever is higher. Jurisprudential
Chief Marketing Agent only, and not standards for the losses which may
the corporate president, treasurer or justify retrenchment are: Firstly, the
secretary, he is a corporate employee. losses expected should be substantial
In fact, he was paid salaries and and not merely de minimis in extent. If
commissions, plus bonuses, for his the loss purportedly sought to be
personal services. forestalled by retrenchment is clearly
shown to be insubstantial and
(b) What is the rule on personal liability of inconsequential in character, the
corporate officers for a corporate act bonafide nature of the retrenchment
declared to be unlawful? (2%) would appear to be seriously in
question; secondly, the substantial loss
SUGGESTED ANSWER: must be reasonably imminent, as such
(b) Corporate officers are personally imminence can be perceived
accountable only as provided by Sec. objectively and in good faith by the
31 of the Corporation Code and not employer; thirdly, because of the
solely because they act in the interest consequential nature of retrenchment,
of the company (Carag v. NLRC, G.R. it must be reasonably necessary and is
No. 147590, 2 April 2007). Hence, they likely to be effective in preventing the

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expected losses, lastly; the alleged


losses if already realized, and the
expected imminent losses sought to be
forestalled, must be proved by
sufficient and convincing evidence
(Manatad v. Philippine Telegraph and
Telephone Corporation, G.R. No.
172363, March 7, 2008).

Hagibis should exercise its prerogative


to retrench employees in good faith. It
must be for the advancement of its
interest and not to defeat or
circumvent the employees' right to
security of tenure. Hagibis should use
fair and reasonable criteria, such as
status, efficiency, seniority, physical
fitness, age, and financial hardship for
certain workers in ascertaining who
would be dismissed and who would be
retained among the employees.

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