2014 BAR EXAMINATIONS

LABOR LAW (A) Yes, because it is suffering losses for the first time.

October 5, 2014 2:00P.M.- 6:00 P.M. (B) Yes, because this is a management prerogative which is not
due to any legal or contractual obligation.

J. DIOSDADO M. PERALTA (C) No, because this amounts to a diminution of benefits which is
Chairman prohibited by the Labor Code.
2014 Bar Examinations
(D) No, because it is a fringe benefit that has already ripened into
I. a demandable right.

Linda was employed by Sectarian University (SU) to cook for the IV.
members of a religious order who teach and live inside the campus.
While performing her assigned task, Linda accidentally burned herself. Linis Manpower, Inc. (LMI) had provided janitorial services to the
Because of the extent of her injuries, she went on medical leave. Philippine Overseas Employment Administration (POEA) since March
Meanwhile, SU engaged a replacement cook. Linda filed a complaint for 2009. Its service contract was renewed every three months. However, in
illegal dismissal, but her employer SU contended that Linda was not a the bidding held in June 2012, LMI was disqualified and excluded. In
regular employee but a domestic househelp. Decide. (4%) 2013, six janitors of LMI formerly assigned at POEA filed a complaint for
underpayment of wages. Both LMI and POEA were impleaded as
II. respondents. Should POEA, a government agency subject to budgetary
appropriations from Congress, be held liable solidarily with LMI for the
Lucy was one of approximately 500 call center agents at Hambergis, Inc. payment of salary differentials due to the complainant? Cite the legal
She was hired as a contractual employee four years ago. Her contracts basis of your answer. (4%)
would be for a duration of five (5) months at a time, usually after a
onemonth interval. Her re-hiring was contingent on her performance for V.
the immediately preceding contract. Six (6) months after the expiration of
her last contract, Lucy went to Hambergis personnel department to Liwayway Glass had 600 rank-and-file employees. Three rival unions –
inquire why she was not yet being recalled to work. She was told that her A, B, and C ‒ participated in the certification elections ordered by the
performance during her last contract was "below average." Lucy seeks Med-Arbiter. 500 employees voted. The unions obtained the following
your legal advice about her chances of getting her job back. What will votes: A-200; B-150; C-50; 90 employees voted "no union"; and 10 were
your advice be? (4%) segregated votes. Out of the segregated votes, four (4) were cast by
probationary employees and six (6) were cast by dismissed employees
III. whose respective cases are still on appeal. (10%)

Lolong Law Firm (LLF), which employs around 50 lawyers and 100 (A) Should the votes of the probationary and dismissed
regular staff, suffered losses for the first time in its history. The employees be counted in the total votes cast for the purpose of
management informed its employees that it could no longer afford to determining the winning labor union?
provide them free lunch. Consequently, it announced that a nominal fee
would henceforth be charged. Was LLF justified in withdrawing this (B) Was there a valid election?
benefit which it had unilaterally been providing to its employees? (1%)
 (C) Should Union A be declared the winner? employees committed illegal acts. Eventually, its members informed the
company of their intention to return to work. (6%)
(D) Suppose the election is declared invalid, which of the
contending unions should represent the rank-and-file employees? (A) Can Lazo Corporation refuse to admit the strikers?

(E) Suppose that in the election, the unions obtained the (B) Assuming the company admits the strikers, can it later on
following votes: A-250; B-150; C-50; 40 voted "no union"; and 10 dismiss those employees who committed illegal acts?
were segregated votes. Should Union A be certified as the
bargaining representative? (C) If due to prolonged strike, Lazo Corporation hired
replacements, can it refuse to admit the replaced strikers?
VI.
IX.
Lina has been working as a steward with a Miami, U.S.A.-based Loyal
Cruise Lines for the past 15 years. She was recruited by a local manning Luisa Court is a popular chain of motels. It employs over 30
agency, Macapagal Shipping, and was made to sign a 10-month chambermaids who, among others, help clean and maintain the rooms.
employment contract everytime she left for Miami. Macapagal Shipping These chambermaids are part of the union rank-and-file employees
paid for Lina’s round-trip travel expenses from Manila to Miami. Because which has an existing collective bargaining agreement (CBA) with the
of a food poisoning incident which happened during her last cruise company. While the CBA was in force, Luisa Court decided to abolish the
assignment, Lina was not re-hired. Lina claims she has been illegally position of chambermaids and outsource the cleaning of the rooms to
terminated and seeks separation pay. If you were the Labor Arbiter Malinis Janitorial Services, a bona fide independent contractor which has
handlingthe case, how would you decide? (4%) invested in substantial equipment and sufficient manpower. The
chambermaids filed a case of illegal dismissal against Luisa Court. In
VII. response, the company argued that the decision to outsource resulted
from the new management’s directive to streamline operations and save
Non-lawyers can appear before the Labor Arbiter if: (1%) on costs. If you were the Labor Arbiter assigned to the case, how would
you decide? (4%)
(A) they represent themselves
X.
(B) they are properly authorized to represent their legitimate labor
organization or member thereof Luisa was hired as a secretary by the Asian Development Bank (ADB) in
Manila. Luisa’s first boss was a Japanese national whom she got along
(C) they are duly-accredited members of the legal aid office with. But after two years, the latter was replaced by an arrogant Indian
recognized by the DOJ or IBP national who did not believe her work output was in accordance with
international standards. One day, Luisa submitted a draft report filled with
typographical errors to her boss. The latter scolded her, but Luisa
(D) they appear in cases involving an amount of less than
verbally fought back. The Indian boss decided to terminate her services
Php5,000
right then and there. Luisa filed a case for illegal dismissal with the Labor
Arbiter claiming arbitrariness and denial of due process. If you were the
VIII. Labor Arbiter, how would you decide the case? (4%)

As a result of a bargaining deadlock between Lazo Corporation and Lazo

Employees Union, the latter staged a strike. During the strike, several
 XI. job in three days. (4%)

Lionel, an American citizen whose parents migrated to the U.S. from the (A) Is there an employer-employee relationship between Don
Philippines, was hired by JP Morgan in New York as a call center Luis and Lando?
specialist. Hearing about the phenomenal growth of the call center
industry in his parents’ native land, Lionel sought and was granted a (B) Does Don Luis need to register Lando with the Social
transfer as a call center manager for JP Morgan’s operations in Taguig Security System (SSS)?
City. Lionel’semployment contract did not specify a period for his stay in
the Philippines. After three years of working in the Philippines, Lionel was XIV.
advised that he was being recalled to New York and being promoted to
the position of director of international call center operations. However,
Luisito has been working with Lima Land for 20 years. Wanting to work in
because of certain "family reasons," Lionel advised the company of his
the public sector, Luisito applied with and was offered a job at Livecor.
preference to stay in the Philippines. He was dismissed by the company.
Before accepting the offer, he wanted to consult you whether the
Lionel now seeks yo ur legal advice on: (6%)
payments that he and Lima Land had made to the Social Security
System (SSS) can be transferred or credited to the Government Service
(A) whether he has a cause of action Insurance System (GSIS). What would you advice? (4%)

(B) whether he can file a case in the Philippines XV.

(C) what are his chances of winning Our Lady of Peace Catholic School Teachers and Employees Labor
Union (OLPCS-TELU) is a legitimate labor organization composed of
XII. vice principals, department heads, coordinators, teachers, and non-
teaching personnel of Our Lady of Peace Catholic School (OLPCS).
Which of the following groups does not enjoy the right to
selforganization? (1%) OLPCS-TELU subsequently filed a petition for certification election
among the teaching and non-teaching personnel of OLPCS before the
(A) those who work in a non-profit charitable institution Bureau of Labor Relations (BLR) of the Department of Labor and
Employment (DOLE). The Med-Arbiter subsequently granted the petition
(B) those who are paid on a piece-rate basis and ordered the conduct of a joint certification election for the teaching
and non-teaching personnel of OLPCS.
(C) those who work in a corporation with less than 10 employees
May OLPCS-TELU be considered a legitimate labor organization? (5%)
(D) those who work as legal secretaries
XVI.
XIII.
Samahang East Gate Enterprises (SEGE) is a labor organization
Don Luis, a widower, lived alone in a house with a large garden. One composed of the rank-and-file employees of East Gate Enterprises
day, he noticed that the plants in his garden needed trimming. He (EGE), the leading manufacturer of all types of gloves and aprons.
remembered that Lando, a 17-year old out-of-school youth, had
contacted him in church the other day looking for work. He contacted EGE was later requested by SEGE to bargain collectively for better terms
Lando who immediately attended to Don Luis’s garden a nd finished the and conditions of employment of all the rank -and-file employees of EGE.
Consequently, EGE filed a petition for certification election before the the strike with notice thereon furnished to the National
Bureau of Labor Relations (BLR). Conciliation and Mediation Board (NCMB) at least 24 hours
before the strike vote is taken
During the proceedings, EGE insisted that it should participate in the
certification process. EGE reasoned that since it was the one who filed (D) strike vote results must be furnished to the NCMB at least
the petition and considering that the employees concerned were its own seven (7) days before the intended strike
rankand-file employees, it should be allowed to take an active part in the
certification process. XIX.

Is the contention of EGE proper? Explain. (5%) Lincoln was in the business of trading broadcast equipment used by
television and radio networks. He employed Lionel as his agent.
XVII. Subsequently, Lincoln set up Liberty Communications to formally engage
in the same business. He requested Lionel to be one of the incorporators
Philhealth is a government-owned and controlled corporation employing and assigned to him 100 Liberty shares. Lionel was also given the title
thousands of Filipinos. Because of the desire of the employees of Assistant Vice-President for Sales and Head of Technical Coordination.
Philhealth to obtain better terms and conditions of employment from the After several months, there were allegations that Lionel was engaged in
government, they formed the Philhealth Employees Association (PEA) "under the table dealings" and received "confidential commissions" from
and demanded Philhealth to enter into negotiations with PEA regarding Liberty’s clients and suppliers. He was, therefore, charged with serious
terms and conditions of employment which are not fixed by law. (4%) misconduct and willful breach of trust, and was given 48 hours to present
his explanation on the charges. Lionel was unable to comply with the 48
(A) Are the employees of Philhealth allowed to self-organize and -hour deadline and was subsequently barred from entering company
form PEA and thereafter demand Philhealth to enter into premises. Lionel then filed a complaint with the Labor Arbiter claiming
negotiations with PEA for better terms and conditions of constructive dismissal. Among others, the company sought the dismissal
employment? of the complaint alleging that the case involved an intra-corporate
controversy which was within the jurisdiction of the Regional Trial Court
(RTC).
(B) In case of unresolved grievances, can PEA resort to strikes,
walkouts, and other temporary work stoppages to pressure the
government to accede to their demands? If you were the Labor Arbiter assigned to the case, how would you rule
on the company’s motion to dismiss? (5%)
XVIII.
XX.
The procedural requirements of a valid strike include: (1%)
Lito was anticipating the bonus he would receive for 2013. Aside from the
13th month pay, the company has been awarding him and his other co-
(A) a claim of either unfair labor practice or deadlock in collective
employees a two to three months bonus for the last 10 years. However,
bargaining
because of poor over-all sales performance for the year, the company
unilaterally decided to pay only a one month bonus in 2013. Is Lito’s
(B) notice of strike filed at least 15 days before a ULP-grounded employer legally allowed to reduce the bonus? (4%)
strike or at least 30 days prior to the deadlock in a bargaining
grounded strike
XXI.
(C) majority of the union membership must have voted to stage
An accidental fire gutted the JKL factory in Caloocan. JKL decided to
suspend operations and requested its employees to stop reporting for Lobinsons decided to terminate Lanz for committing a potential crime
work. After six (6) months, JKL resumed operations but hired a new set and other illegal acts prejudicial to business. Can Lanz be legally
of employees. The old set of employees filed a case for illegal dismissal. terminated by the company on these grounds? (4%)
If you were the Labor Arbiter, how would you decide the case? (4%)
XXV.
XXII.
Lizzy Lu is a sales associate for Luna Properties. The latter is looking to
Despite a reinstatement order, an employer may choose not to reinstate retrench Lizzy and five other sales associates due to financial losses.
an employee if: (1%) Aside from a basic monthly salary, Lizzy and her colleagues receive
commissions on the sales they make as well as cost of living and
(A) there is a strained employer-employee relationship representation allowances. In computing Lizzy’s separation pay, Luna
Properties should consider her: (1%)
(B) the position of the employee no longer exists
(A) monthly salary only
(C) the employer’s business has been closed
(B) monthly salary plus sales commissions
(D) the employee does not wish to be reinstated.
(C) monthly salary plus sales commissions, plus cost of living
XXIII. allowance

Luningning Foods engaged the services of Lamitan Manpower, Inc., a (D) monthly salary plus sales commissions, plus cost of living
bona fide independent contractor, to provide "tasters" that will check on allowance and representation allowance
food quality. Subsequently, these "tasters" joined the union of rank -and-
file employees of Luningning and demanded that they be made regular XXVI.
employees of the latter as they are performing functions necessary and
desirable to operate the company’s business. Luningning rejected the Liwanag Corporation is engaged in the power generation business. A
demand for regularization. On behalf of the "tasters", the union then filed stalemate was reached during the collective bargaining negotiations
a notice of strike with the Department of Labor and Employment (DOLE). between its management and the union. After following all the requisites
In response, Luningning sought a restraining order from the Regional provided by law, the union decided to stage a strike. The management
Trial Court (RTC) arguing that the DOLE does not have jurisdiction over t sought the assistance of the Secretary of Labor and Employment, who
he case since it does not have an employer-employee relationship with assumed jurisdiction over the strike and issued a return-to-work order.
the employees of an independent contractor. If you were the RTC judge, The union defied the latter and continued the strike. Without providing
would you issue a restraining order against the union? (4%) any notice, Liwanag Corporation declared everyone who participated in
the strike as having lost their employment. (4%)
XXIV.
(A) Was Liwanag Corporation’s action valid?
Lanz was a strict and unpopular Vice-President for Sales of Lobinsons
Land. One day, Lanz shouted invectives against Lee, a poor performing (B) If, before the DOLE Secretary assumed jurisdiction, the
sales associate, calling him, among others, a "brown monkey." Hurt, Lee striking union members communicated in writing their desire to
decided to file a criminal complaint for grave defamation against Lanz. return to work, which offer Liwanag Corporation refused to
The prosecutor found probable cause and filed an information in court. accept, what remedy, if any, does the union have?
 XXVII.

The jurisdiction of the National Labor Relations Commission does not

include: (1%)

(A) exclusive appellate jurisdiction over all cases decided by the

Labor Arbiter

(B) exclusive appellate jurisdiction over all cases decided by

Regional Directors or hearing officers involving the recovery of
wages and other monetary claims and benefits arising from
employer-employee relations where the aggregate money claim
of each does not exceed five thousand pesos (Php5,000)

(C) original jurisdiction to act as a compulsory arbitration body

over labor disputes certified to it by the Regional Directors

(D) power to issue a labor injunction

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