2011 Bar Examination Questionnaire for Labor Law (A) 15 days' pay plus 1/12th of the 13th month

1/12th of the 13th month pay and 1/12th of

Set A the cash value of service incentive leave.

(1) The union’s by-laws provided for burial assistance to the family of a (B) 15 days' pay plus 1/12th of the 13th month pay and the cash
member who dies. When Carlos, a member, died, the union denied his equivalent of five days service incentive leave.
wife's claim for burial assistance, compelling her to hire a lawyer to
pursue the claim. Assuming the wife wins the case, may she also claim (C) 15 days pay plus a full 13th month pay.
attorney's fees?
(D) 15 calendar days' pay per year of service plus allowances
(A) No, since the legal services rendered has no connection to received during the retirement year.
CBA negotiation.
(4) A foreign guest in a luxury hotel complained that he lost certain
(B) Yes, since the union should have provided her the assistance valuable items in his hotel room. An investigation by the hotel pointed to
of a lawyer. two roomboys as the most probable thieves. May the management
invoke “loss of confidence” as a just cause for dismissing the roomboys?
(C) No, since burial assistance is not the equivalent of wages.
(A) No, “loss of confidence” as reason for dismissal does not
(D) Yes, since award of attorney's fee is not limited to cases of apply to rank and file employees.
withholding of wages.
(B) No, “loss of confidence” applies only to confidential positions.
(2) Pol requested Obet, a union officer and concurrently chairman of the
company's Labor-Management Council, to appeal to the company for a (C) Yes, “loss of confidence” is broad enough to cover all
recomputation of Pol’s overtime pay. After 5 p.m., his usual knock-off dishonest acts of employee.
time, Obet spent two hours at the Personnel Office, reconciling the
differing computations of Pol’s overtime. Are those two hours (D) RIGHT ANSWER Yes, “loss of confidence” applies to
compensable? employees who are charged with the care and custody of the
employer's property.
(A) Yes, because Obet performed work within the company
premises. (5) Tower Placement Agency supplies manpower to Lucas Candy
Factory to do work usually necessary for work done at its factory. After
(B) No, since Obet’s action has nothing to do with his regular working there for more than two years under the factory manager’s
work assignment. supervision, the workers demanded that Lucas extend to them the same
employment benefits that their directly hired workers enjoyed. Is their
(C) No, because the matter could have been resolved in the demand valid?
labor-management council of which he is the chairman.
(A) Yes, since it was Lucas that actually hired and supervised
(D) Yes, because the time he spent on grievance meetings is them to work at itsfactory.
considered hoursworked.
(B) No, since the agency workers are not employees of the client
(3) The Labor Code on retirement pay expands the term “one-half (½) factory.
month salary” because it means
 (C) Yes, since they have been working at the factory in excess of (8) Although both are training programs, apprenticeship is different from
two years. learnership in that

(D) No, since it was the placement agency that got them their (A) a learner may be paid 25% less than the legal minimum wage
jobs. while an apprentice is entitled to the minimum wage.

(6) Both apprenticeship and learnership are government programs to (B) apprenticeship has to be covered by a written agreement; no
provide practical on-the-job training to new workers. How do they differ such formality is needed in learnership.
with respect to period of training?.
(C) in learnership, the employer undertakes to make the learner a
(A) In highly technical industries, apprenticeship can exceed 6 regular employee; in apprenticeship, no such undertaking.
months; learnership can exceed one year.
(D) a learner is deemed a regular employee if terminated without
(B) Apprenticeship cannot exceed 6 months; learnership can. his fault within one month of training; an apprentice attains
employment status after six months of apprenticeship.
(C) Apprenticeship shall not exceed six months; while learnership
shall not exceed three months. (9) A golf and country club outsourced the jobs in its food and beverage
department and offered the affected employees an early retirement
(D) The law lets the employer and the apprentice agree on the package of 1 ½ month’s pay for each year of service. The employees
apprenticeship period; but the law fixes learnership period at six who accepted the package executed quitclaims. Thereafter, employees
months in non-technical industries. of a service contractor performed their jobs. Subsequently, the
management contracted with other job contractors to provide other
(7) Venus Department Store decided to contract out the security services services like the maintenance of physical facilities, golf operations, and
that its 10 direct-hired full-time security guards provided. The company administrative and support services. Some of the separated employees
paid the men separation pay. With this move, the Store was able to cut who signed quitclaims later filed complaints for illegal dismissal. Were
costs and secure efficient outside professional security services. But the they validly dismissed?
terminated security guards complained of illegal dismissal, claiming that
regular jobs such as theirs could not be contracted out. Will their (A) Yes. The jobs were given to job contractors, not to labor-only
complaint prosper? contractors, and the dismissed employees received higher
separation pay than the law required.
(A) No. the management has the right to contract out jobs to
secure efficient and economical operations. (B) No. The outsourcing and the employment termination were
invalid since the management failed to show that it suffered
(B) Yes. They should be reinstated or absorbed by the security severe financial losses.
agency as its employees.
(C) No. Since the outsourcing of jobs in several departments
(C) No. They are estopped from demanding reinstatement after entailed the separation of many employees, the club needed the
receiving their separation pay. Secretary of Labor’s approval of its actions.

(D) Yes. The company cannot contract out regular jobs such as (D) No. Since the outsourced jobs were held by old-time regular
they had. employees, it was illegal for the club to terminate them and give
the jobs to others.
(10) Sampaguita Company wants to embark on a retrenchment program (C) a family member.
in view of declining sales. It identified five employees that it needed to
separate. The human resource manager seems to recall that she has to (D) domestic helper.
give the five employees and the DOLE a 30-day notice but she feels that
she can give a shorter notice. What will you advise her? (13) The union filed a notice of strike due to a bargaining deadlock. But,
because the Secretary of Labor assumed jurisdiction over the dispute,
(A) Instead of giving a 30-day notice, she can just give a 30-day the strike was averted. Meanwhile, the employer observed that the union
advanced salary and make the separation effective immediately. engaged in a work slowdown. Contending that the slowdown was in fact
an illegal strike, the employer dismissed all the union officers. The union
(B) So long as she gave DOLE a 30-day prior notice, she can president complained of illegal dismissal because the employer should
give the employees a shorter notice. first prove his part in the slowdown. Is the union president correct?

(C) The 30-day advance notice to the employee and the DOLE (A) Yes, since the employer gave him no notice of its finding that
cannot be shortened even with a 30-day advance salary. there was a slowdown.

(D) She can give a shorter notice if the retrenchment is due to (B) Yes. The employer must prove the union president’s part in
severe and substantial losses. slowdown.

(11) Under the Labor Code, its provisions on working conditions, (C) No. When a strike is illegal, the management has the right to
including the eight-hour work day rule, do not apply to domestic helpers. dismiss the union president.
Does it follow from this that a domestic helper's workday is not limited by
law? (D) No. As the union president, it may be assumed that he led the
slowdown.
(A) No, since a domestic helper cannot be required to work more
than ten hours a day. (14) The existing collective bargaining unit in Company X includes some
fifty “secretaries” and “clerks” who routinely record and monitor reports
(B) Yes, since a domestic helper's hours of work depend on the required by their department heads. Believing that these secretaries and
need of the household he or she works for. clerks should not be union members because of the confidential nature of
their work, the management discontinued deducting union dues from their
(C) No, because a domestic helper is legally entitled to overtime salaries. Is the management’s action legal?
pay after ten hours of work.
(A) No, only managers are prohibited from joining unions; the law
(D) Yes, a domestic helper may be required to work twelve hours does not bar “confidential employees” from joining unions.
a day or beyond.
(B) No, “confidential employees” are those who assist persons
(12) Under the Labor Code on Working Conditions and Rest Periods, a who formulate, determine, or enforce management policies in the
person hired by a high company official but paid for by the company to field of labor relations.
clean and maintain his staff house is regarded as
(C) Yes, secretaries and clerks of company executives are
(A) a person rendering personal service to another. extensions of the management and, therefore, should not join the
union.
(B) a regular company employee.
 (D) No, “confidential” employees are those who handle executive a.m. to 12 noon or 12:30 p.m. to 1:30 p.m., without pay. Will the change
records and payroll or serve as executive secretaries of top-level be legal?
managers.
(A) Yes, absent an agreement to the contrary, the management
(15) Jose Lovina had been member of the board of directors and determines work hours and, by law, meal break is without pay.
Executive Vice President of San Jose Corporation for 12 years. In 2008,
the San Jose stockholders did not elect him to the board of directors nor (B) No, because lunchbreak regardless of time should be with
did the board reappoint him as Executive Vice President. He filed an pay.
illegal dismissal complaint with a Labor Arbiter. Contending that the Labor
Arbiter had no jurisdiction over the case since Lovina was not an (C) Yes, the management has control of its operations.
employee, the company filed a motion to dismiss. Should the motion be
granted?
(D) No, because existing practice cannot be discontinued
unilaterally.
(A) No, the Labor Arbiter has jurisdiction over all termination
disputes.
(18) The employees’ union in San Joaquin Enterprise continued their
strike despite a return to work order from the Secretary of Labor.
(B) Yes, it is the NLRC that has jurisdiction over disputes Because of this defiance, the employer dismissed the strikers. But the
involving corporate officers. Labor Arbiter declared as illegal the dismissal of those whose
commission of unlawful acts had not been proved. They were ordered
(C) No, a motion to dismiss is a prohibited pleading under the immediately reinstated. The employer refused, however, to reinstate
NLRC Rules of Procedure. them on the ground that the rule on immediate reinstatement applies only
to terminations due to just or authorized causes. Is the employer’s refusal
(D) Yes, jurisdiction lies with the regular courts since the justified?
complainant was a corporate officer.
(A) No, every employee found to have been illegally dismissed is
(16) An employee proved to have been illegally dismissed is entitled to entitled to immediate reinstatement even pending appeal.
reinstatement and full backwages computed on the basis of his
(B) Yes. The employer’s refusal is legal and justified as a penalty
(A) basic salary plus the regular allowances and the thirteenth for defying the secretary’s lawful order.
month pay.
(C) Yes, the rule on immediate reinstatement does not apply to
(B) basic salary plus the salary CBA increases during the employees who have defied a return-to-work order.
pendency of his case.
(D) No. The dismissal of the employees was valid; reinstatement
(C) basic salary plus the increases mandated by wage orders is unwarranted.
issued during the pendency of his case.
(19) Llanas Corporation and Union X, the certified bargaining agent of its
(D) basic salary at the time of dismissal. employees, concluded a CBA for the period January 1, 2000 to
December 31, 2004. But, long before the CBA expired, members of
(17) The meal time (lunch break) for the dining crew in Glorious Union Y, the minority union, showed dissatisfaction with the CBA under
Restaurant is either from 10 a.m. to 11 a.m. or from 1:30 p.m. to 2:30 the belief that Union X was a company union. Agitated by its members,
p.m., with pay. But the management wants to change the mealtime to 11: Union Y filed a petition for a Certification Election on December 1, 2002.
Will the petition prosper?
 (A) No, such a petition can only be filed within the freedom period (B) Yes, since they receive training from the pharmaceutical
of the CBA. companies regarding the products they will promote.

(B) No, since a petition for certification can be filed only upon the (C) No, since they are bound by the agency agreement between
expiration of the CBA. Reach-All and the pharmaceutical companies.

(C) Yes, a certification is the right remedy for ousting a company (D) Yes, since Reach-All does does not qualify as independent
union. contractoremployer, its clients being the source of the employees’
salaries.
(D) Yes, employees should be allowed to cancel at the earliest
opportunity a CBA that they believed was obtained by a company (22) Executive Order No. 180, which protects government employees,
union. does NOT apply to “high-level employees,” namely,

(20) Is it correct to say that under Philippine law a househelper has no (A) presidential appointees.
right to security of tenure?
(B) those performing policy-determining functions, excluding
(A) No, since a househelper can be dismissed only for just cause confidential employees and supervisors.
or when his agreed period of employment ends.
(C) confidential employees and those performing policy-
(B) Yes, since it is the employer who determines the period of his determining functions.
service.
(D) elective officials.
(C) Yes, since a househelper can be dismissed with or without
just cause. (23) In the case of a househelper, reinstatement is not a statutory relief
for unjust dismissal because of the confidentiality of his or her job.
(D) No, since a househelper can be dismissed only for just cause, Instead, the househelper shall be paid
except when he has been employed for a definite period not
exceeding one year. (A) an indemnity equivalent to 15 days' pay plus compensation
already earned.
(21) Reach-All, a marketing firm with operating capital of P100,000,
supplied sales persons to pharmaceutical companies to promote their (B) a separation pay equivalent to one month's pay per year of
products in hospitals and doctors' offices. Reach-All trained these sales service.
persons in the art of selling but it is the client companies that taught them
the pharmacological qualities of their products. Reach-All’s roving (C) a separation pay equivalent to one-half month's pay per year
supervisors monitored, assessed, and supervised their work of service.
performance. Reach-All directly paid their salaries out of contractor's fees
it received. Under the circumstances, can the sales persons demand that
(D) 15 days' pay as indemnity plus wages lost from dismissal to
they be absorbed as employees of the pharmaceutical firms?
finality of decision.
(A) No, they are Reach-All’s employees since it has control over
(24) The CBA for the period January 2007 to December 2009 granted the
their work performance.
employees a P40 per day increase with the understanding that it is
creditable as compliance to any future wage order. Subsequently, the
regional wage board increased by P20 the minimum wage in the (D) whether or not a labor-management council exists.
employer’s area beginning January 2008. The management claims that
the CBA increase may be considered compliance even if the Wage Order (27) If not used by the end of the year, the service incentive leave shall
itself said that “CBA increase is not creditable as compliance to the Wage be
Order.” Is the management's claim valid?
(A) carried over to the next year.
(A) Yes, since creditability of the CBA increase is the free and
deliberate agreement and intention of the parties. (B) converted to its money equivalent.

(B) Yes, since the Wage Order cannot prejudice the (C) forfeited.
management’s vested interest in the provisions of the CBA.
(D) converted to cash and paid when the employee resigns or
(C) No, disallowing creditability of CBA pay increase is within the retires.
wage board's authority.
(28) An employee is NOT entitled to “financial assistance” in cases of
(D) No, the CBA increase and the Wage Order are essentially legal dismissal when the dismissal
different and are to be complied with separately.
(A) is based on an offense reflecting the depraved character of
(25) When an employee works from 8 a.m. to 5 p.m. on a legal holiday the employee.
falling on his rest day, which of the following formulas do you use to
compute for his day's wage on that day?
(B) is based on serious misconduct or breach of the employer's
trust.
(A) His regular daily wage multiplied by 200% plus 30% of the
200%
(C) is grounded on any of the just causes provided by the Labor
Code.
(B) His regular daily wage multiplied by 200%
(D) when the employee has less than 10 years of service.
(C) His regular daily wage plus 200%
(29) In a work-related environment, sexual harassment is committed
(D) His daily regular wage when

(26) The employees’ rights to organize and to bargain collectively are (A) the offender has authority, influence, or moral ascendancy
means of exercising the broader right to participate in policy or decision- over his subordinate victim.
making processes. The employees' right to participate in policy and
decision making processes is available
(B) the victim’s continued employment is conditioned on sexual
favor from her.
(A) if a labor-management council exists.
(C) the female victim grants the demand for sexual favor against
(B) if a labor-management council does not exist. her will.

(C) if a union exists and it agrees to the creation of a labor- (D) the victim is not hired because she turned down the demand
management council. for sexual favor.
(30) Government employees may elect a union as their exclusive (C) may leave work without giving a 30-day notice to the
representative but this right is not available to employer.

(A) regular employees in government instrumentalities and (D) may abandon his job at once.
agencies.
(33) A sugar mill in Laguna, capitalized at P300 million, suffered a
(B) employees of government-owned and -controlled corporations P10,000.00 loss last year. This year it dismissed three young female
without original charters. employees who gave birth in the last three years. In its termination report
to DOLE, the sugar mill gave as reason for the dismissal “retrenchment
(C) employees of government-owned-or-conrolled corporations because of losses.” Did it violate any law?
with original charters.
(A) Yes, the law on retrenchment, the sugar mill’s loses not being
(D) employees of provincial and local government units. substantial.

(31) Celia, an OFW that Moonshine Agency recruited and deployed, died (B) Yes, the law against violence committed on women and
in Syria, her place of work. Her death was not work-related, it appearing children.
that she had been murdered. Insisting that she committed suicide, the
employer and the agency took no action to ascertain the cause of death (C) No, except the natural law that calls for the protection and
and treated the matter as a “closed case.” The worker's family sued both support of women.
the employer and the agency for moral and exemplary damages. May
such damages be awarded? (D) No, but the management action confirms suspicion that some
companies avoid hiring women because of higher costs.
(A) Yes, the agency and the employer’s uncaring attitude makes
them liable for such damages. (34) “Piece rate employees” are those who are paid by results or other
non-time basis. As such they are NOT entitled to overtime pay for work
(B) Yes, but only the principal is liable for such damages since done beyond eight hours if
the agency had nothing to do with Celia’s death.
(A) their workplace is away from the company's principal place of
(C) No, since her death is not at all work-related. work.

(D) No, since her death is not attributable to any act of the agency (B) they fail to fill up time sheets.
or the employer.
(C) the product pieces they do are not countable.
(32) When the employer or his representative hurls serious insult on the
honor or person of the employee, the law says that the employee (D) the piece rate formula accords with the labor department’s
approved rates.
(A) may leave work after at least a five-day notice to the
employer. (35) An employer may require an employee to work on the employee's
rest day
(B) may leave work at any time and file for constructive dismissal.
(A) to avoid irreparable loss to the employer.
 (B) only when there is a state of calamity. (38) Melissa, a coffee shop worker of 5 months, requested her employer
for 5 days' leave with pay to attend to the case that she filed against her
(C) provided he is paid an extra of at least 50% of his regular husband for physical assault two weeks earlier. May the employer deny
rate. her request for leave with pay?

(D) subject to 24-hour advance notice to the employee. (A) Yes, the reason being purely personal, approval depends on
the employer’s discretion and is without pay.
(36) The State has a policy of promoting collective bargaining and
voluntary arbitration as modes of settling labor disputes. To this end, the (B) No, as victim of physical violence of her husband, she is
voluntary arbitrator’s jurisdiction has not been limited to interpretation and entitled to five days paid leave to attend to her action against him.
implementation of collective bargaining agreements and company
personnel policies. It may extend to “all other labor disputes,” provided (C) No, the employer must grant the request but the leave will be
without pay.
(A) the extension does not cover cases of union busting.
(D) Yes, since she is not yet a permanent employee.
(B) the parties agreed to such extended jurisdiction.
(39) Quiel, a househelper in the Wilson household since 2006, resigned
(C) the parties are allowed to appeal the voluntary arbitrator's from his job for several reasons. One reason was the daily 12-hour
decision. workday without any rest day. When he left his job he had unpaid wages
totaling P13,500.00 which his employer refused to pay. He wants to claim
(D) the parties agreed in their CBA to broaden his jurisdiction. this amount though he is not interested in getting back his job. Where
should he file his claim?
(37) Philworld, a POEA-licensed agency, recruited and deployed Mike
with its principal, Delta Construction Company in Dubai for a 2-year (A) He should file his claim with the DSWD, which will eventually
project job. After he had worked for a year, Delta and Philworld endorse it to the right agency.
terminated for unknown reason their agency agreement. Delta stopped
paying Mike's salary. When Mike returned to the Philippines, he sued (B) Since he has no interest in reinstatement, he can file his claim
both Philworld and Delta for unpaid salary and damages. May Philworld, with the office of the regional director of the Department of Labor.
the agency, be held liable?
(C) He should file his claim exceeding P5,000.00 with the office of
(A) No, since Philworld, the recruitment agency, is not the the labor arbiters, the regional arbitrators representing the NLRC.
employer liable for unpaid wages.
(D) He should go to the Employee’s Compensation Commission.
(B) Yes, since the agency is equally liable with the foreign
principal despite the termination of their contract between them. (40) For labor, the Constitutionally adopted policy of promoting social
justice in all phases of national development means
(C) Yes, since the law makes the agency liable for the principal’s
malicious refusal to pay Mike’s salary. (A) the nationalization of the tools of production.

(D) No, since Mike did not get paid only after Delta and Philworld (B) the periodic examination of laws for the common good.
terminated their contract.
 (C) the humanization of laws and equalization of economic (44) Of the four grounds mentioned below, which one has been judicially
forces. affirmed as justification for an employee’s refusal to follow an employer’s
transfer order?
(D) the revision of laws to generate greater employment.
(A) A transfer to another location is not in the employee's
(41) To avail himself of paternity leave with pay, when must the male appointment paper.
employee file his application for leave?
(B) The transfer deters the employee from exercising his right to
(A) Within one week from the expected date of delivery by the self-organization.
wife.
(C) The transfer will greatly inconvenience the employee and his
(B) Not later than one week after his wife’s delivery or miscarriage family.

(C) Within a reasonable time from the expected deliver date of his (D) The transfer will result in additional housing and travel
wife. expenses for the employee.

(D) When a physician has already ascertained the date the wife (45) Of the four definitions below, which one does NOT fit the definition of
will give birth. “solo parent” under the Solo Parents Welfare Act?

(42) The constitution promotes the principle of shared responsibility (A) Solo parenthood while the other parent serves sentence for at
between workers and employers, preferring the settlement of disputes least one year.
through
(B) A woman who gives birth as a result of rape.
(A) compulsory arbitration.
(C) Solo parenthood due to death of spouse.
(B) collective bargaining.
(D) Solo parenthood where the spouse left for abroad and fails to
(C) voluntary modes, such as conciliation and mediation. give support for more than a year.

(D) labor-management councils. (46) Albert and four others signed employment contracts with Reign
Publishers from January 1 to March 31, 2011 to help clear up encoding
(43) Which of the following is NOT a requisite for entitlement to paternity backlogs. By first week of April 2011, however, they remained at work.
leave? On June 30 Reign’s manager notified them that their work would end that
day. Do they have valid reason to complain?
(A) The employee is cohabiting with his wife when she gave birth
or had a miscarriage. (A) No, since fixed term employment, to which they agreed, is
allowed.
(B) The employee is a regular or permanent employee.
(B) Yes, their job was necessary and desirable to the employer’s
business and, therefore, they are regular employees.
(C) The wife has given birth or suffered a miscarriage.

(D) The employee is lawfully married to his wife.

 (C) Yes, when they worked beyond March without an extended (B) the workers' pay is fixed by informal agreement between the
fixed term employment contract, they became regular employees. workers and their employer.

(D) No, since the 3-month extension is allowed in such (C) the workers are under very little supervision in the
employment. performance or method of work.

(47) A handicapped worker may be hired as apprentice or learner, (D) the workers are simply called “homeworkers,” not
provided “employees,” hence not covered by the social security law.

(A) he waives any claim to legal minimum wage. (50) Which of the following grounds exempts an enterprise from the
service incentive leave law?
(B) his work is limited to apprenticeable job suitable to a
handicapped worker. (A) The employees already enjoy 15 days vacation leave with
pay.
(C) he does not impede job performance in the operation for
which he is hired. (B) The employer's business has been suffering losses in the past
three years.
(D) he does not demand regular status as an employee.
(C) The employer regularly employs seven employees or less.
(48) The Secretary of Labor and Employment or his duly authorized
representative, including labor regulations officers, shall have access to (D) The company is located in a special economic zone.
employer's records and premises during work hours. Why is this
statement an inaccurate statement of the law? (51) Which of the following acts is NOT considered unfair labor practice
(ULP)?
(A) Because the power to inspect applies only to employer
records, not to the premises. (A) Restraining employees in the exercise of the right to self-
organization.
(B) Because only the Secretary of Labor and Employment has the
power to inspect, and such power cannot be delegated. (B) Union's interference with the employee's right to self-
organization.
(C) Because the law allows inspection anytime of the day or
night, not only during work hours. (C) Refusal to bargain collectively with the employer.

(D) Because the power to inspect is already delegated to the (D) Gross violation of the collective bargaining agreement by the
DOLE regional directors, not to labor regulations officers. union.

(49) In industrial homework, the homeworker does at his home the work (52) In computing for 13th month pay, Balagtas Company used as basis
that his employer requires of him, using employer-supplied materials. It both the employee’s regular base pay and the cash value of his unused
differs from regular factory work in the sense that vacation and sick leaves. After two and a half years, it announced that it
had made a mistake and was discontinuing such practice. Is the
(A) the workers are not allowed to form labor organizations. management action legally justified?
 (A) Yes, since 13th month pay should only be one-twelfth of the (A) The contractor performs activities not directly related to the
regular pay. principal's main business.

(B) No, since the erroneous computation has ripened into an (B) The contractor has substantial investments in tools,
established, nonwithdrawable practice. equipment, and other devices.

(C) Yes, an error is not a deliberate decision, hence may be (C) The contractor does not merely recruit, supply, or place
rectified. workers.

(D) No, employment benefits can be withdrawn only through a (D) The contractor has direct control over the employees’ manner
CBA negotiation. and method of work performance.

(53) Where the petition for a certification election in an unorganized (56) X Company’s CBA grants each employee a 14th month year-end
establishment is filed by a federation, it shall NOT be required to disclose bonus. Because the company is in financial difficulty, its head wants to
the negotiate the discontinuance of such bonus. Would such proposal violate
the “nondiminution rule” in the Labor Code?
(A) names of the local chapter's officers and members.
(A) No, but it will certainly amount to negotiating in bad faith.
(B) names and addresses of the federation officers.
(B) Yes since the rule is that benefits already granted in a CBA
(C) names and number of employees that initiated the union cannot be withdrawn or reduced.
formation in the enterprise.
(C) No, since the law does not prohibit a negotiated
(D) names of the employees that sought assistance from the discontinuance of a CBA benefit.
federation in creating the chapter.
(D) Yes, since such discontinuance will cancel the enjoyment of
(54) Under the Limited Portability law, funds from the GSIS and the SSS existing benefits.
maybe transferred for the benefit of a worker who transfers from one
system to the other. For this purpose, overlapping periods of membership (57) Night differential is differentiated from overtime pay in that
shall be
(A) while overtime pay is given for overtime work done during day
(A) credited only once. or night, night differential is given only for work done between
10:00 p.m. and 6:00 a.m.
(B) credited in full.
(B) while overtime pay is paid to an employee whether on day
(C) proportionately reduced. shift or night shift, night shift differential is only for employees
regularly assigned to night work.
(D) equally divided for the purpose of totalization.
(C) while overtime pay is for work done beyond eight hours, night
(55) Of the four tests below, which is the most determinative of the status differential is added to the overtime pay if the overtime work is
of a legitimate contractor-employer? done between 6:00 p.m. and 12 midnight.
 (D) while overtime pay is 25% additional to the employee's hourly (D) No, since it is the union that violates the ground rules
regular wage, night differential is 10% of such hourly wage fashioned by the parties, it is the one negotiating in bad faith.
without overtime pay.
(60) Which of the following acts is NOT part of the regulatory and
(58) Differentiate a “labor organization” from a “legitimate labor visitorial power of the Secretary of Labor and Employment over
organization.” recruitment and placement agencies? The power to

(A) While the employees themselves form a “labor organization,” (A) order arrest of an illegal recruiter
a “legitimate labor organization” is formed at the initiative of a
national union or federation. (B) inspect premises, books and records

(B) While the members of a “labor organization” consists only of (C) cancel license or authority to recruit
rank and file employees, a “legitimate labor organization” consists
of both supervisory and rank and file employees. (D) garnish recruiter's bond

(C) While a “labor organization” exists for a lawful purpose, a (61) Where there is a bargaining deadlock, who may file a notice of
“legitimate labor organization” must, in addition, be registered strike?
with the labor department.
(A) The majority members of the bargaining unit.
(D) While the officers in a “labor organization” are elected in an
informal way, the officers in “legitimate labor organization” are
(B) The recognized bargaining agent.
formally elected according to the union's constitution and by-laws.
(C) Any legitimate labor organization in the employer’s business.
(59) The negotiating panels for the CBA of X Company established a rule
that only employees of the company will seat in each panel. In the next
session, the management panel objected to the presence of the union (D) The majority members of the bargaining union.
counsel. Still the negotiation proceeded. At the next session, the
management panel again objected to the presence of the union counsel (62) When a recruitment agency fails to deploy a recruit without valid
as a non-observance of the “no outsider” rule. The negotiation reason and without the recruit's fault, the agency is obligated to
nonetheless proceeded. Does the management panel's objection to the
presence of the union counsel constitute unfair labor practice through (A) reimburse the recruit's documentary and processing
bad-faith bargaining? expenses.

(A) Yes, the management is harping on a non-mandatory matter (B) reimburse the recruit’s expenses with 6% interest.
instead of proceeding with the mandatory subjects of bargaining.
(C) pay the recruit damages equivalent to one year’s salary.
(B) No, there is no bargaining in bad faith since the bargaining
proceeded anyway. (D) find another employer and deploy the recruit within 12
months.
(C) Yes, the management panel has no legal basis for limiting the
composition of the union negotiating panel. (63) Which of the following is an essential element of illegal recruitment?
 (A) The recruiter demands and gets money from the recruit but (D) Loss of confidence should not be simulated nor a mere
issues no receipt. afterthought to justify earlier action taken in bad faith.

(B) The recruiter gives the impression that he is able to send the (66) Pedring, Daniel, and Paul were employees of Delibakery who
recruit abroad. resigned from their jobs but wanted to file money claims for unpaid wages
and 13th month pay. Pedring’s claim totals P20,000.00, Daniel’s
(C) The recruiter has insufficient capital and has no fixed address. P3,000.00, and Paul’s P22,000.00. Daniel changed his mind and now
also wants reinstatement because he resigned only upon the instigation
(D) The recruiter has no authority to recruit. of Pedring and Paul. Where should they file their claims?

(64) A group of 15 regular rank-and-file employees of Bay Resort formed (A) With the DOLE regional director for Pedring and Paul’s claims
and registered an independent union. On hearing of this, the with no reinstatement; with the labor arbiter for Daniel’s claim with
management called the officers to check who the union members were. It reinstatement.
turned out that the members included the probationary staff, casuals, and
the employees of the landscape contractor. The management contends (B) With the Office of the Regional Director of the Department of
that inclusion of non-regulars and employees of a contractor makes the Labor for all claims to avoid multiplicity of suits.
union’s composition inappropriate and its registration invalid. Is this
correct? (C) With a labor arbiter for all three complainants.

(A) Yes, union membership should be confined to direct-hired (D) With the DOLE Regional Director provided they are
employees of the company. consolidated for expediency.

(B) Yes, the “community of interest” criterion should be observed (67) In a scenario like typhoon Ondoy, who may be required by the
not only in the composition of a bargaining unit but also in the employer to work overtime when necessary to prevent loss of life or
membership of a union. property?

(C) Yes, a union must have community of interest; the non- (A) Health personnel
regulars do not have such interest.
(B) Employees with first aid training
(D) No, union membership may include non-regulars since it
differs from membership in a bargaining unit. (C) Security and safety personnel

(65) Which is NOT a guideline for the dismissal of an employee on the (D) Any employee
ground of “loss of confidence”?
(68) The management and Union X in Atisan Mining entered into a CBA
(A) Loss of confidence may not be arbitrarily invoked in the face for 1997 to 2001. After 6 months, a majority of the members of Union X
of overwhelming evidence to the contrary. formed Union Y and sought management recognition. The latter
responded by not dealing with either union. But, when the CBA’s
(B) Loss of confidence as cause of dismissal should be expressly economic provisions had to be renegotiated towards the end of the term
embodied in written company rules. of the CBA, the management chose to negotiate with Union Y, the newer
union. Thus, Union X which negotiated the existing CBA charged the
(C) The employee holds a position of trust and confidence. company with unfair labor practice (ULP). The company argued that it
committed no unfair labor practice since the supposed violation had (A) No, since the ex-EBank employees were not yet Broad Bank
nothing to do with economic provisions of the CBA. Is the management employees when that CBA was entered into.
right?
(B) No, Broad Bank’s absorption of ex-EBank employees was not
(A) No. Refusal to comply with the CBA’s economic provisions is a requirement of law or contract; hence, the CBA does not apply.
not the only ground for ULP; a disregard of the entire CBA by
refusing to renegotiate with the incumbent bargaining agent is (C) Yes, Broad Bank’s absorption of ex-EBank employees
also ULP, automatically makes the latter union members of Broad Bank’s
bargaining union.
(B) Yes. No unfair labor practice was committed because the
supposed violation has nothing to do with economic provisions of (D) Yes, since the right not to join a labor union is subordinate to
the CBA. the policy of unionism that encourages collective representation
and bargaining.
(C) Yes. The management commits no ULP when it decided to
renegotiate with the numerically majority union. (71) The employer must observe both substantive and procedural due
process when dismissing an employee. If procedural due process is not
(D) Yes. A CBA violation amounts to ULP only if the violation is observed, the dismissal will be regarded as
“gross,” meaning flagrant or malicious refusal to comply with the
CBA’s economic provisions which is not the case here. (A) defective; the dismissal process has to be repeated.

(69) The apprenticeship program should be supplemented by theoretical (B) an abuse of employer's discretion, rendering the dismissal
instruction to be given by void.

(A) the apprentice's school only where the apprentice is formally (C) ineffectual; the dismissal will be held in abeyance.
enrolled as a student.
(D) legal and valid but the employer will be liable for indemnity.
(B) the employer if the apprenticeship is done in the plant.
(72) Mario, an expert aircon technician, owns and manages a small
(C) the civic organizations that sponsor the program. aircon repair shop with little capital. He employs one full-time and two
part-time technicians. When they do repair work in homes or offices, their
(D) the Department of Labor and Employment. clients do not tell them how to do their jobs since they are experts in what
they do. The shop is shabby, merely rented, and lies in a small side
(70) The Securities and Exchange Commission approved a merger that street. Mario and the other technicians regard themselves as informal
allowed Broad Bank to absorb the assets and liabilities of EBank. Broad partners. They receive no regular salary and only earn commissions from
Bank also absorbed EBank’s rank-and-file employees without change in service fees that clients pay. To what categories of workers do they fall?
tenure, salary, and benefits. Broad Bank was unionized but EBank was
not. The Broad Bank bargaining union requested the management to (A) Labor-only contractors
implement the union security clause in their CBA by requiring the ex-
EBank employees to join the union. Does the union security clause in the (B) Job contractors
Broad Bank CBA bind the ex-EBank employees?
(C) Pakyaw workers
 (D) Manpower agency contractors (C) Yes, once the coverage of the bargaining unit has been
contractually defined, it can no longer be redefined.
(73) How often should the collected service charges be distributed to
employees in hotels and restaurants? (D) No, bargaining history is not the only factor that determines
the coverage of the bargaining unit; seeking its redefinition is not
(A) Every end of the month negotiating in bad faith.

(B) Every two weeks

(C) Every week

(D) At the end of each work day

(74) Which of the following conditions justifies a licensed employment

agency to charge and collect fees for employment assistance?

(A) The recruit has submitted his credentials to the employment

agency.

(B) The POEA has approved the agency's charges and fees.

(C) The agency's principal has interviewed the applicant for the
job.

(D) The worker has obtained employment through the agency's

efforts.

(75) During the CBA negotiation the management panel proposed a

redefinition of the “rank-and-file” bargaining unit to exclude “HR
Specialist” in the human resource department and “Analyst” in the
research and development department. The union panel objected since
those affected have already been included in the bargaining unit covered
by the existing CBA and so could no longer be excluded. Is the union
correct in insisting that their exclusion would amount to bad faith on the
part of the management panel?

(A) No, efforts to modify an existing CBA do not constitute bad

faith if such modification does not diminish employment benefits.

(B) Yes, the proposed exclusion amounts to management’s

violation of its duty to bargain because it disregards the
bargaining history between the parties.