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SURVIVAL NOTES IN LABOR LAW

Hon. Benedict G. Kato

Labor Arbiter (NLRC-NCR)
Professor of Law, Bar Reviewer, MCLE Lecturer

I
DEFINITIONS/CONCEPTS
Money Terms:

1. Wage Compression. When the wage gap (wage advantage) between wage groups is
seriously contracted by a wage order (merger of companies or CBA renegotiation), the
result is wage compression.
2. Wage Structure. In the exercise of management prerogative, an employer has the
right to assign wage rates to different positions based on rational considerations (length
of service, skill, talent, etc.). The system of compensation is a wage structure.
3. Wage Differential. It is the difference between a prescribed wage rate and the actual
wage paid by an employer. A wage differential arises from underpayment of wages.
3. Wage Distortion. It arises when: (a) there are 2 or more wage groups separated by
wage a gap/s; (b) the wage gap is either eliminated or compressed; and (c) the cause
of the elimination or compression is a wage order, merger or CBA (but not promotion).
4. Reinstatement Wages. When a reinstatement order is not complied with pending
appeal, and the employer is able to get a reversal decision, the period of the latter’s
appeal shall be compensated with reinstatement wages.
6. Full Backwages. (a) The full amount of basic wages, allowances and monetized
benefits which an employee would have received had he not been illegally dismissed;
((b) computed from date of withholding of salaries to date of reinstatement or finality of
judgment.
7. Limited Backwages. If the dismissed employee is not entirely faultless, his
backwages may either be withheld or limited (reduced).
8. Total Disability. Inability to resume one’s customary or usual work. It becomes
permanent if it is given a Grade 1 assignment or any of the circumstances listed by
jurisprudence qualifies it a total and permanent.
9. Equity Jurisdiction.

II
DISTINCTIONS

1. Two-Fold Test v. Four-Fold Test.

a. 2FT is used to determine employee’s entitlement to reinstatement wages; whereas,
4FT is used to determine employer-employee relationship.
b. Elements of 2FT: (a) delay or non-enforcement of reinstatement order; and (b)
delay or non-enforcement is due/not due to the fault of the employer. If at fault,
employer is liable to pay reinstatement wages. If not (e.g., corporate rehabilitation),
he is not liable.

Elements of 4FT: (a) selection; (b) payment of salaries; (c) power to dismiss; and
(d) control over means and methods.

2. Hold-Over Doctrine (HOD) v. Automatic Renewal Clause (ARC).

a. In HOD, the economic provisions of a CBA expire in years. If the new economic
provisions are agreed upon after 6 months from date of expiry and the parties do
not agree to retroact them to the day following date of expiry, the period in between
shall be governed by the old economic provisions in a hold-over capacity until date
agreed upon for the new economic provisions to take effect.

b. In ARC, the CBA per se expires in years. If no new CBA is perfected on time then the
old CBA will continue to apply because it is deemed to have been automatically
renewed.

3. Closed-Shop Agreement (CSA) v. Union Shop Agreement (USA)

 a. In a Closed Shop Agreement. The employer cannot hire new employees unless from
the union (EBR) membership.
b. In a Union Shop, the employer is allowed to hire outside the union membership as
long as the new employee will join the EBR within a reasonable time.

Note: CSA is more onerous or burdensome on the employer. It is grave abuse of

discretion for the SOLE exercising assumption power to impose on the employer a union
security clause more onerous than what was agreed upon in a failed CBA negotiation.

4. Organized Establishment (OE) v. Unorganized Establishment (UE).

a. OE if there is an EBR plus a CBA; whereas, UE if there is no EBR (hence, it is

impossible to have a CBA) or there may be an EBR but it has no CBA with the
company.
b. Uses of Distinction:
1. Resolution of Wage Distortion Disputes
2. Effectivity of CBAs
3. CE Petitions
4. CE Appeals
5.

5. Full Employment (FE) v. Over Employment (OE).

6. Wage Distortion (WD) v. Labor Market Distortion (LMD).

a. Concept:
b. Labor Dispute:
c. Resolution:

7. Collective Bargaining (CB) v. Collective Negotiations (CN).

a. CB is the function of an EBR; subject to jurisdictional preconditions (JP); its result is
a CBA.
b. CN is the function of any legitimate labor organization (LLO); not subject to JP; its
result is a CNA.

8. Home Worker (HW) v. Domestic Worker (DW).

a. Place of Work: For HW, at his home; whereas, for DW at the home of employer;
b. Relief for Illegal Dismissal: For HW, ; whereas, for DW __;
c. Daily Rest Period: For HW, no daily rest period; whereas, for DH, with daily rest
period of not less than hours;
d. Hours of Work: HW is not limited; whereas, DW is limited (PD 442 – 8 hours; NCC –
10 hours)
e. SSS. Philhealth & Pag-Ibig: HW is entitled only to SSS coverage c/o D.O. 5, s. 1995;
whereas, DH is entitled to SSS, Philhealth & Pag-Ibig coverage c/o RA 10361;

9. Night Work Pay (NWP) v. Nightshift Differential (NSD) .

a. Basis: NWP is based on rendition of 7 consecutive hours of service between 12mn
and 5 am; whereas, NSD is based on work rendered between 10 pm and 6 am.
b. Compensation: For NWP, ; whereas, for NSD, the compensation is 10% of the
basic salary (including OT pay unless otherwise agreed upon).
c. 13th Month Pay: NWP is included; whereas, NSD is not included.

10. Overtime (OT) v. Overload (OL).

a. Elements of OT : (i) work rendered beyond normal hours of work; (ii) within the
same work day.
b. Elements of OL: (i) work rendered beyond normal load; (ii) within normal hours
( hours per day for teachers).

Uses:
1. Neither OT nor OL can be included in the computation of 13 th month pay
because it is not part of basic salary.
2. Art. 88 ((OT cannot offset UT) applies only if: (a) there are at least 2 work
days involved; and (b) the elements of OT are present (especially
“same work day”).

11. Wages (W) v. Backwages (BW).

a. W is remuneration capable of being expressed in money payable under a contract of

employment for work done or to be done or services rendered or to be rendered
 including the reasonable value of facilities customarily provided by the employer;
whereas, BW are salaries that an employee would have earned had he not been
illegally dismissed.

b. Use: Only unpaid wages are covered by the Double Indemnity Law ; hence,
backwages cannot be doubled (Sapio v. Undaloc Construction, 2008).

12. Illegal Dismissal (IlD) v. Ineffectual Dismissal (InD).

An IlD is a dismissal without a just or authorized cause; whereas, an InD is a valid
dismissal with a just cause) without due process (Serrano Case). An InD warranted the
award of backwages instead of 1K indemnity only. No more InD under the Agabon
ruling. The penalty for violation of statutory due process is nominal damages.

13. Just Cause (JC) v. Authorized Cause (AC).

a. Analogous Causes: JC includes analogous causes; whereas, AC has no analogous
causes;
b. Due Process: JC requires 1st and 2nd notice plus ample opportunity to be heard in
between; whereas, AC requires 1 notice only.
c. Violation of Due Process: In JC dismissal s(P30K); whereas, in AC dismissals (P0K);
d. Separation Pay: In JC, it can be awarded as an alternative relief if dismissal is illegal;
whereas, in AC it is awarded as the main relief if the dismissal is valid.
e. Monetary Award: In JC, BW can be limited or entirely withheld; whereas, in AC
separation pay may be based on 1 month salary (redundancy and automation) or ½
month salary (retrenchment and losses not due to serious business losses).

14. Redundancy v. Retrenchment

Note: Preventive Retrenchment

Use:

15. Separation Pay (SP) v. Backwages (BW)

a. Computation: SP is based on last salary; whereas, BW is based on last salary,
allowances and monetary equivalent of benefits.
b. Interest: SP does not earn legal interest; whereas, BW earns legal interest (12%
before July 20 and 6% after).
c. Income Tax: SP is not subject to 5% tax; whereas, BW is subject to 5% tax.

16. Ordinary Atty’s Fees (OAF) v. Extraordinary Atty’s Fees (EAF)

a. Basis: OAF is based on contract/quantum meruit; whereas, EAF is based on law
(Art. 111, LC).
b. Nature: OAF is compensation for legal services; whereas, EAF is a penalty
imposed on an employer who compels his employee to litigate;
c. Limit: OAF can be more than 10%; whereas, EAF is limited to 10%.

17. Independent Registration (IR) v. Chartering (C)

a. LLO Status: In IR, upon issuance of CR; in C, upon submission of registration
requirements;
b. 20% Rule: In IR, list of union members representing at least 20% of the CBU sought
to the represented is required; in C, it is not required;
c. Right to File CE Petition: For LOs created thru IR, they can file CE petition only after
being issued CR; for those created thru C, they can file after issuance of charter
certificate.

18. Visitorial Power v. Adjudicatory Power

19. Learner v. Apprentice
20. Corporate Officer v. Corporate Employee
21. Conferment of Jurisdiction v. Acquisition of Jurisdiction.
22. Error of Judgment v. Error of Jurisdiction.
23. Labor Arbiter sitting as LA v. Labor Arbiter sitting as VA.
24.

III
PRINCIPLES AND POSTULATES

The Full Protection Clause

1. Protection Outside Art. 136, PD 442 (Star Paper Corp. vs. Simbol, et al., April 12,
2006). No Couples Policy: “Employees of this company shall not marry one another.”
 (1) “If they do, the wife shall resign or shall be deemed resigned”. This policy
violates Art. 136 as it amounts to disparate treatment) by reason of marriage (direct
discrimination; hence, the policy is void. (2) “If they do, one of them shall resign or
shall be deemed resigned.” This policy does not single out the wife; hence, it is valid
under Art. 136 for being facially neutral. But it is void under the Full Protection Clause
for its disparate impact (indirect discrimination).

2. Protection Outside Art. 291, PD 442 (Accessories Specialist, Inc. vs. Alabanza, July
23, 2008). Pursuant to Art. 291, money claims prescribe in 3 years. An unpaid
employee dies on his claim after 5 years of promises of payment. If the claim is
brought after 3 years, it is not prescribed under the Principle of Promissory Estoppel.
Elements: (1) employer makes a promise which induces belief or inaction; (2)
employee relies on the promise; and (3) his reliance on the promise is prejudicial to
him.

3. Protection Outside POEA-Approved Contract. (Datuman vs. First Cosmopolitan

Manpower & Promotion Services, Inc., Nov. 14, 2008). Under POEA rules, a recruiter’s
solidary liability with his foreign principal arises from violations of the terms of the POEA-
approved contract. If the contract sued upon is a second contract executed abroad
without the knowledge and consent of the recruiter, the latter is not liable. Exception:
the second contract is a continuing violation of the POEA-approved contract because the
OFW is forced to execute it with another employer to legalize her continuing stay
overseas as her first employer has violated the terms of her first contract.

4. Protection Outside Philippine Territory (Sim vs. NLRC, Oct. 2, 2007). Jurisdiction
over the person of a foreign employer is acquired thru service of summons on his local
agent. If no agent, acquisition of jurisdiction is impossible. Exception: both employee
and employer are Filipino nationals (Corazon Sim & Equitable Bank) entering into an
employment contract abroad (Italy). In the event of an illegal dismissal, Sec. 10 of RA
8042, as amended, allows the employee to sue before the Labor Arbiter. By virtue of
said provision, Philippine Labor Relations Law has become extra-territorial. Therefore,
the employer cannot interpose lex ex contractu, or law of the place of the contract.

5. Protection Outside the Substantial Evidence Rule (The Cate Case/GSIS vs. CA, Jan.
28, 2008). To be compensable, a disability arising from disease must be work-related,
i.e., the disease is occupational in nature. It is occupational if it is a listed disease. If
not listed, like Osteoblastic Osteosarcoma (not in Annex “A”, Employees Compensation
Act) , the resulting disability would not be compensable. Exception: the GSIS member
can adduce substantial evidence to prove work-connection. Exception to the exception:
if even medical science cannot explain the origin of Osteosarcoma, the condition to
show work-connection with substantial evidence is deemed not imposed, In fact, the
condition is void.

Note: Full protection means there is protection outside (1) statutory law (Star Paper
case & Alabanza case); (2) employment contract (Datuman case); (3) law of the place
of execution (Sim case); and (4) substantial evidence rule (Cate case).

Preferential Use of Voluntary Modes

Jurisdiction by Stipulation
(Vivero vs. CA, Oct. 24, 2000)

Jurisdiction over the subject matter of a case is conferred by law, e.g., Art. 217, PD 442
(Jurisdiction of the Labor Arbiter). Parties are not at liberty to stipulate where to litigate.
Exception: Parties to a CBA can stipulate to bring cases listed under Art. 217 to voluntary
arbitration. However, is must be by express stipulation. This is allowed by Sec. 3, Art. XIII of
the Constitution which requires preferential use of voluntary modes of settling labor disputes.

UPDATE: Q: Is the Compulsory Arbitration Clause in a CBA for the invocation by

the company against the union only and not against an individual union member?

A: In Halaguena, et al. vs. PAL, 2 Oct. 2009, it was held that the
petition of the female union members against PAL should not be referred to voluntary
arbitration because the union ____. Hence, it can be said that the arbitration clause could not
be invoked against a un ion member. But in Dulay (see seafarer’s case)

Just and Humane Conditions of Work

1. Anti-Sexual Harassment Act (RA 7877)

 Background: Women had no right to work. In the rare instances they were given work,
they had to answer with their dignity in a quid pro quo (I give, You give) relational set-
up. (I give you work if you sleep with me, cum 1 with me, etc...) RA 7877, which applies
to both sexes, punishes this practice. Sexual harassment is committed: (1) in a WET
env’t (work, education, training); (2) by Pastor TETE (pastors/priests, teachers,
employers, trainors, employees) with MIA (moral ascendancy, influence or authority);
(3) thru DRR 4 sexual favor (demand, request, requirement); (4) with promise of W–
COER (in a work env’t: continuing employment, other considerations, employment, re-
employment); or ET-GASHOS (in an education/training env’t: grade, allowance,
scholarship, honors, other considerations, stipend); (5) where the DRR 4 sexual favor
may either be ACCEPTED or REJECTED; (6) provided, the rejection turns the WET env’t
into a HOI env’t (hostile, offensive, intimidating); (7) as manifested by the victims’
SCD (segregation, classification, or discrimination).

Note: Acceptance of DRR is not a defense. What the law punishes is not the violation
of the sexuality of the offended party but abuse by the offender of his MIA.

Phil. Aeolus Automotive United Corp. vs. NLRC, April 28, 2000: Employer’s verbal
acts: “I luv u, I mis u… mwah, mwah, mwah” Physical acts: tatz hir, tatz dr. Reaction:
Rejection. Reaction to reaction: “If I have no space in your heart, you have no space in
my office” PLUS dismissal. Guilty: WET became HOI.

Atty. Susan Aquino vs. Justice Ernesto Acosta (CTA), April 2, 2002: Physical act:
beso beso, nothing else more. WET did not become HOI. Exonerated with a simple
admonition: “Nxt tym, b crcumspct. N do nt 4get 2 brsh ur teeth!”

Erlinda Alcuizar vs. Judge Emmanuel Carpio (RTC Davao), Aug. 7, 2007, en banc:
Physical acts: kissed stenographer, signalled to her to enter the CR to kiss inside; and
gave her P500.00 - no more!. WET did not become HOI. Evidence: stenographer
continued going inside the judge’s chamber. This was taken against her.

Digitel vs. Mariquit Soriano, June 26, 2006 (The Digitel Sex Scandal) : Effect of
delay on credibility of complaint. 11 months after resigning, following a superior’
act of poking her pussy 2 with his finger and another superior’s act of pressing her body
against his’ while dancing, Mariquit filed her complaint. Defense: Delay. Argument of
Mariquit: The delay of Miss Cortez in the Phil. Aeolus Automotive Case ( ) was 4 years,
yet it was not taken against her. Hers was 11 months only. SC: Mariquit’s case was
different. In the case of Miss Cortez, she was still employed. So it was reasonable not to
expect her to file her complaint while she was still employed; otherwise, she would
have lost her job sooner than she did. In Mariquit’s case, she resigned; hence, she had
nothing to protect anymore. Yet she incurred in delay. Note: When her pussy was being
poked, Mariquit did not run or slap Mr. Go. When Mr. Go asked for a dance, she did not
flee, although her pussy had been poked earlier. SC said this was against human
experience. Harry Roque sued the SC before the UN for rendering judgment against
the CEDAW. According to him (galit na naman si pogi), the SC based its judgment on
stereotyped human experience whereas the CEDAW requires elimination of
stereotyping. Note also: Mr. Go died while the criminal case against him was pending.
Lesson: Poke not a pussy. When it meows, you die!

Domingo vs. Rayala, Feb. 18, 2008 (The NLRC Sex Scandal): Evidence of DRR 4
Sexual Favor. Under the Three-fold Liability Rule, an act may result in 3 types of
liabilities: administrative, civil and criminal. To establish these liabilities, these are the
quanta of proof: substantial evidence, preponderance of evidence, and proof beyond
reasonable doubt – following order of appearance. Rayala, who was before the SC to
contest his dismissal for grave misconduct under Civil Service Law, cried: “Whr s d pruf
beyond reasonable doubt of my DRR? I jst tatzd hr shldr n sed “may bf k n?”; “bkit
laki2 balakang m?” Justice Nachura (ponente) answered: “Your case is administrative.
I’m just looking for substantial evidence. Based on the totality of the circumstances, I
find you liable for sexual harassment.“

NOTE: Sec. 4 of RA 7877 requires of WET institutions or establishments 2 things: (1)

adopt implementing guidelines; and (2) adopt a procedure for investigation. It is
observed that many of the implementing rules are patterned after American law.
Hence, just calling a woman “Babe” or rolling one’s tongue in front of a woman can
already constitute sexual harassment. Strictly speaking, however, the punishable acts
are “DRR for sexual favor”. Exempli Gratia: The implementing guidelines of the Phil.
National High School makes it possible for a student to commit sexual harassment

1
Come pala.
2
Legal term: citadel of virtue; Debatable term: private part.
 against a teacher. Strictly speaking, however, the offender must have “MIA”. Indeed,
what RA 7877 punishes is the abuse of MIA and not the violation of the sexuality of the
offended party (Phil. Aeolus Automotive case). Under American law, the gravamen of
the offense is unwanted attention of a sexual nature as “considered” by the
complainant. Hence, it is very subjective. In contrast, RA 7877 lays down objective
determinants. Caveat: In Domingo vs. Rayala, however, there was no direct proof of
DRR for sexual favor but Justice Nachura ruled that Rayala was liable because the work
environment of Domingo became HOI.

2. The Kasambahay Act

(1) A kasambahay renders domestic work and says “HelLau GarCya”. (Helper,
Laundry person, Gardener, Cook, Yaya) EXCEPT Jody Foster (children under
foster family arrangement who are given access to education plus allowance).
(2) The “K” rights are “13 Sleeps with Orgs then Rest and Rest “, inter alia. (13 th
month pay, service incentive leave (SIL), self-organization, 8 hours daily rest,
weekly rest period). Others: privacy, education, board & lodging, medical
attendance, no privileged communication when suing employer & just & humane
conditions (no massage).
(3) His/her hours of Work are:
if 15 – 17 years old (law says below 18) - 8 Hours only (absolutely no extra
work). If 18 & above - Not expressly provided.

Note: If, as provided by the Kasambahay Act, the monthly pay is fixed at
P2,500.00, or P2,000.00, or P1,000.00 – depending on place of work - then
normal hours of work must also be fixed. Therefore, it is either 8 hours (Art. 83,
PD 442 which is a special law) or 10 hours (Art. 1596, NCC which is a general
law). Which prevails? You know what to do. But before doing what you are
about to do, the first thing to do is to harmonize these laws. The Kasambahay
Act provides that the parties shall agree on hours of work. Either this is the
wisdom of the law or its accidental virtue. If the agreement is to fix normal hours
of work at 8 hours/day then the P2,500.00, or P2,000.00, or P1,500.00 would be
reasonable. If 10 hours, or more (but not in excess of 16 hours because the daily
rest must not be less than 8 hours) then the pay must be increased. With this,
there is no need for PDD 442 and NCC to quarrel.

3. RA 9231
Note: Under PD 442, (1) less than 15 cannot be employed except by parents or
guardian , provided opportunity for schooling is not impaired; provided further
that hours of work shall not exceed 4 hours on any given day and 20 hours a
week; whereas, (2) 15-18 can be employed provided with DOLE supervision and
child is not exposed to hazardous and deleterious work conditions; provided
further that hours of work shall not exceed 8 hours on any given day and 40
hours a week. This said, why is Ryzza Mae, who is less than 15, employed by a
juridical person such as GMA? RA 9231 allows it for public entertainment under
these conditions, inter alia: DOLE permit; opportunity for schooling not impaired;
cannot promote alcohol, cigarette, violence; cannot be employed underground,
in high-rise buildings, under water; cannot produce dynamites, etc…

Due Process Clause & Equal Protection Clause

Background Notes:

2009 Serrano Doctrine vs. RA 10022

(Operative Fact Doctrine vs. Raison d’etre ; Sec. 4(3), Art. VIII, Const’n; 2011 Yap vs.
Thenamaris )

Sec. 10, RA 8042: In the event of an illegal pre-termination of an OFW contract,

salaries for the un-worked portion of the contract must be paid. The money award shall either
be (a) number of months x salary, or (b) 3 months salary x the number of years there are in the
remaining months – whichever is lesser.

What is wrong with the formula? In the 2009 Serrano case, the SC held that it violated
the Due Process Clause and the Equal Protection Clause. How? As to the first, if letter (B) were
awarded for the reason that the contract is at least 1 year ( 1999 Marsaman ruling), salaries for
the excluded months will be taken away without rhyme or reason except that it is what RA
8042 provides – and nothing else more. Since salaries for those excluded months are property
to the OFW, they are deemed taken without due process of law. As to the second, RA 8042
makes a distinction between OFWs with less than 1 year or contract and those with at least 1
year then treats them differently as to amount of salaries. This is a classification. To be valid, it
must serve a State interest. Under the Strict Judicial Scrutiny Test, a classification and the
State interest it seeks to protect must have a necessary connection. In Serrano, the Solgen
revealed that the purpose of the law was to minimize the legal injury suffered by
recruiters/local agents who ended up dragged to court to answer for acts committed by their
foregoing principals, over which they had no control. This was not State but private interest;
hence, the classification was void.

Serrano was a perfect ruling, except that Congress re-enacted the formula in 2010 when
it passed RA 10022 (Sec.7). Which prevails now, case law or statutory law? In 2011, the SC
decided Yap vs. Thenamaris. It still applied the Serrano ruling. However, it cannot be said that
the SC upheld the primacy of Serrano over RA 10022. Truth is, it was not aware of the new law
because it was never pleaded. If Sec. 4(3), Art. VIII of the Constitution were applied, the only
way the Serrano ruling could be undone was for the SC to render a contrary ruling in a
decision rendered en banc. Congress cannot undo it by passing RA 10022.

Meantime, two (2) theories presented themselves for consideration, viz.: Operative
Fact Doctrine and Raison d’etre. Under the first, the re-enacted formula is valid and will
continue to produce legal effects until nullified, i.e., in a case similar to Serrano. Under the
second, the reason for the existence of the Serrano ruling must be kept in view at all times,
viz., the violation of the Due Process Clause and the Equal Protection Clause. Hence, what was
void in 2009 is still void up to now (view of Prof. Chan).

UPDATE: Sec. 7, RA 10022 is void for being violative of the Due Process Clause and
Equal Protection Clause as held in Serrano 2009 (Sameer vs. Cabiles, August 2014, J
Leonen). This writer has been applying Prof. Chan’s view in his decisions despite Sec.7, RA
10022. However, the NLRC stuck to RA 10022 and reversed this writer in one case. Sameer
is a vindication. Lesson: Law should not be applied mechanically.

Social Justice Clause

(Catchphrases for Essay Questions)

1. Meaning: “Social justice is the humanization of laws and equalization of social and
economic forces by the State so that justice in its rational and objectively secular
conception may at least be approximated.” ( Calalang vs. Williams, Dec. 2, 1940)

2. Postulate: The basis of labor law is police power; its purpose is social justice.

3. Application:
Pro Labor: Articles 4, 110, 106-109, 287, etc. (humanizing provisions of PD 442)
Pro Employer - “Social justice authorizes neither oppression nor self-destruction of an
employer.”
Balanced Application: “Justice is for the deserving, to be dispensed in the light of the
established facts and applicable law and doctrine.”

CIVIL LAW PRINCIPLES

Principle of Abuse of Rights (Edgardo Eviota vs. CA, July 29, 2003). Application: The right
to resign is one thing. It is quite another to exercise it in accordance with Art. 285, PD 442, by
giving the required 30-day notice. Eviota omitted service of the required notice, abusing of
his right to resign (Art. 19, NCC). Besides omitting the required notice before joining his new
employer, he uttered derogatory remarks against his first employer. Liable for civil damages.
RTC has jurisdiction.

Principle of Least Transmission of Rights (Gerlach vs. Reuters Ltd., Phil, Jan. 17, 2005).
Application: In the interpretation of a non-contributory retirement plan , where none of the
provisions of the NCC on the interpretation of gratuitous contracts applies, the construction
that will transmit the least rights and interests shall be adopted (Art. 1378, NCC).

Theory of Imputed Knowledge (SUNACE Int’l Mngt Services, Inc. vs. NLRC, Jan. 25, 2006).
Application: Knowledge of the agent is knowledge of his principal – not the other way around.

Unjust Enrichment. (see nlrc cases, Eligir v. PAL.)

The Necessitous Man. Orchard Golf & Country Club vs. Francisco, March 18, 2013.

Background: The operative fact in constructive dismissal is the employee’s act of quitting (Phil.
Japan Active Corp. vs. NLRC ), resigning ( ), foregoing with his job ( ), or ceasing to be
employed ( ). The bottomline is self-termination because continued employment has been
made impossible by the employer, or continued employment has become prejudicial to the
worker who is left with no option except to self-terminate (resign, forego, cease) to avoid
involuntary servitude. Note: In the Orchard case, the employee continued to report for work
(although she was demoted) and to receive her salaries (although reduced). In other words,
there was no complete severance of employer-employee relationship which is the touchstone of
dismissal. However, the SC ruled that she was constructively dismissed. Why: ill-treated by
her company which imposed on her suspension after suspension until she was finally demoted
from the position of Club Accountant to accounts officer, she had no option except to continue
working. She was a necessitous person. “Except to continue” is the exact opposite of
“except to forego”. But the SC is always correct and, in the few instances it is wrong, it is still
correct.

IV
EMPLOYER-EMPLOYEE RELATIONSHIP

Tests

1. Control Test (CT). Question to ask “Who is the master of the alleged employee’s
means and methods of performance?”
2. Economic Reality Test (ERT). Question to ask “Is the alleged employee economically
dependent on his alleged employer?” Contra-indications: he has other employers or
principals (PDI case, 2006).
3. Two-tiered Test. The ERT is used to confirm CT.
4. Ecclesiastical Affair Test, or Ministerial Exception Rule. If the dispute arises from
the relations between church and member (e.g. pastor), LA has jurisdiction if the
dispute is an employer-employee affair (dismissal for a just cause under Art. 282). If the
dispute is an ecclesiastical affair (e.g., suspension of the faculties of a priest for
preaching that Mary Magdalene was Jesus’ GF) then LA has no jurisdiction. An
ecclesiastical affair (as contrasted to employer-employee affair) has something to do
with: faith, religious belief, dogma, governance of the faithful, ordination, or ex-
communication (Austria vs. NLRC).

Note Art. 280 (desirable & necessary) is not a test of employer-employee relationship
but of regularity of employment. (Atok Big Wedge Mining Co. vs. Gison, Aug. 8, 2011 ).
One may be engaged to perform work necessary and desirable but it does not follow
that he is an employee. He may be an independent contractor. In this connection, Art.
157 which requires employers to provide medical services does not require
employment of doctors and nurses as regular employees. They may be engaged as
contractual employees only ( Cinco ruling).

Not employees: (a) PBA Referee; master of means and methods (Bernate vs. PBA,
Sept. 14, 2011); (b) Masiador/, Sentenciador of cockfights; experts in their own right
(Semblante, et al. vs. CA, Aug. 15, 2011).

Characteristics
(CRISI & I Relationship Full of Questions)

C - Contractual (Art. 1700, NCC)

R - Relation between Master & Servant (prerogative to adopt rules; can
dismiss for insubordination under Art. 282)
I - In personam (no successor employer, except: piercing the veil,
instrumentality rule, express agreement)
S - Shared-responsibility (Sec. 3, Art. XIII, Const’n)
I - Impressed with public interest (correlate to Art. 263g)
I - Inter-party. Employers and employees are left to themselves to resolve
their disputes with minimum State interference.
Q - Question of fact. Labor tribunals determine its factual existence.
Courts must respect and accord finality to their finings if based on
substantial evidence.
Q - Question of law. Law determines when it exists. Parties to a service
agreement cannot stipulate against its existence.

UPDATE: However, in Royal Home Marketing Corp. v. Alcantara, 28 July

2014, the SC held that parties can expressly agree: (a) against
employer-employee relationship (EER); and (b) on an exclusivity clause
(which does not amount to economic dependence since the worker can
offer his services to others not in competition with the company). SC did
not see EER because the complainant was not reported for SSS and Pag-
Ibig coverage and the respondent did not deduct income tax from his
commissions.
 V
TYPES OF EMPLOYEES AND THEIR RIGHTS

1. Night Workers. Workers who render not less than 7 consecutive hours of work
from 12mn to 5am in excess of prescribed limit. (Note: nightshift is 10 pm to 6 am).

Rights:

2. Home Workers. Those who work at home or about the premises of (their) home
in order to: (a) process or fabricate (PF) goods, articles or materials (GAM)
delivered to them by a principal with obligation to deliver the finished product to
the principal or distribute it in accordance with the latter’s instruction (DD); or (b)
to process or fabricate (PF) goods, articles or materials (GAM) sold to them by a
principal with obligation to sell to the latter the finished product.

Rights:

3. Domestic Workers (Kasambahay).

Rights:

4. Aliens

5. OFWs (domestic)

6. Seafarers

7. Learners

8. Apprentices

9. Handicapped

10.Disabled

11.Manager
12.Supervisor
13.Rank-n-File
14.Field Personnel
15.Piecerater
16.Worker paid on Task Basis
17.Worker Paid on Commission Basis (purely vs not purely)
18.Worker Paid on Pakyaw Basis
19.Relievers
20.Women
21.Minors
22.Teachers
23.Solo parent
24. Project.
25. Security guards
26. Corporate employees
27. Drivers

VI
JURISDICTION

A
Jurisdictional Tests

Reasonable Causal Connection Rule & Reference to Labor Law Rule. It is not enough
that the issue born of the allegations of the complaint and relief prayed for has a reasonable
causal connection to employer-employee relationship. For labor tribunals to have jurisdiction,
said issue must be resolvable thru the application of the labor Code, other labor statutes or
labor contracts. If other laws are needed to resolve it, the courts have jurisdiction.

Relationship Test & Nature of Controversy Test. In terminations, the first question to ask
is : Who are the disputants? Answer: (a) corporation & corporate officer (in general, RTC); (b)
corporation and corporate employee (in general, LA ). You do not stop here. Second question
to ask: What law is needed to resolve the issue born of the allegations of the complaint and
relief sought? Answer: (a) corporate law (RTC); (b) Labor Law (LA).

Relationship Test & Ecclesiastical Affair Test, supra.

B
Interplay of Jurisdiction

SOLE & BLR: Two Instances

1. SOLE to BLR. Inter-union disputes involving WACLIU (workers

associations, chapters, locals & independent unions) and intra-union disputes get
initiated before the DOLE RD. Appeal is to the BLR (Art. 226, PD 442). In Barles, et al.
vs. Bitonio, June 16, 1999, the appeal was taken to the SOLE who transmitted it to the
BLR. The appellant questioned the move as an abdication of appellate power in favor of
an inferior body. The SC ruled that it was BLR which had appellate jurisdiction.

2. BLR to SOLE. Petitions for the cancellation of union CRs are initiated with
the DOLE RD. Appeal from cancellation orders are taken to the BLR. In Heritage
Hotel Mla vs. NUWHRAIN-HHMSC, Jan 12, 2011, the BLR Director inhibited because
he used to be counsel for the respondent. The appeal was elevated to the SOLE who
resolved it. No grave abuse. SOLE can resolve the appeal in the exercise of her power
of control and supervision over the BLR.

DOLE RD (Art. 128, PD 442) and LA (Art. 217, PD 442).

1
Under Art. 128, the RD may be ousted of his jurisdiction on two grounds: (a) cessation
of employer-employee relationship, provided it takes place before he takes cognizance
of the dispute; and (b) the employer raises issues which are supported by documents
which were not considered in the course of summary inspection, although these were
verifiable. The result of ouster is the transmittal of the case to the LA for reception of
the ignored evidence via position paper, etc. On his own, the RD may also oust himself
for lack of jurisdiction due to cessation of employer-employee relationship by issuing a
referral order in favor of the LA’s jurisdiction. Note: The RD issued a referral order
which the employee challenged before the SOLE who ruled that the RD had jurisdiction.
When the case was transmitted back to the RD, the employer moved to dismiss on the
ground of res judicata. Allegedly, the order was more than 10 days old; hence, it
attained finality already. SC: a referral order is not a judgment on the merits; hence, it
cannot ripen to res judicata.

DOLE RD (Art. 128 & 129); LA (Art. 217) and NLRC (Arts. 218 & 223)
1
Appeals & Periods of Appeal. Appeals from the LA are taken to the NLRC within 10 days
by (a) filing of appeal memo; (b) posting of appeal bond; and (c) payment of docket
fee. Appeals from 129 decisions (P5K & below) are also taken to the NLRC by
performing same acts within the shorter period of 5 days. Both 217 and 129 appeals
are governed b y the same 2011 Rules of Procedure of the NLRC.
Appeals from 128 orders are taken to the SOLE within 10 days.

2
Motion to Reduce Appeal Bond. Under the NLRC Rules, the appellant employer has the
remedy of filing a motion to reduce appeal bond, subject to the posting of a reasonable
accompanying bond. This remedy is available for appeals taken from 217 and 129 but
not 128 because there is no equivalent remedy under the rules of the DOLE (Yanson vs.
Hon. Secretary, Feb. 11, 2008).

3
Employer-employee relationship. The determination of the factual existence of
employer-employee relationship is co-extensive with the RD’s/SOLE expanded visitorial
power. Therefore, the view that the RD makes a determination in a preliminary manner
only while the LA/ NLRC makes the final determination must be reviewed. (SC on MR in
Bombo Radyo case, March 6, 2012)

SOLE (Art. 263,g) and NLRC (Art. 218).

1
In national interest cases, or HEAT d WET BEDS 5R cases (hospital, energy, air traffic
control, transportation, water production, export, tire production, banking, education,
drugs & pharmaceuticals, support services, 5-star hotels, roof production), the SOLE
can assume jurisdiction. Either (a) he resolves the dispute himself; or (b) certifies it to
 the NLRC for compulsory arbitration. If certified to the NLRC, the case cannot be
dismissed by the NLRC on the ground that it does not involve a national interest. Only
the SOLE is given the prerogative to make a determination because Art. 263(g) uses the
term “if in his opinion”. The opinion of the NLRC is irrelevant.

2
If SOLE finds that there is employer-employee relationship, it takes cognizance of the
matter to the exclusion of the NLRC. The SOLE would have no jurisdiction only if
employer-employee relationship has already been terminated, or it appears upon review
that no employer-employee relationship existed at all. (People’s Broadcasting Service
vs. Sec. of the DOLE, March 6, 2012).

LA (Art. 217) and VA (Arts. 261 & 262).

1
Conferment of Jurisdiction. The rule is law vests jurisdiction over the subject
matter of a case. Parties cannot stipulate where to litigate. The LA’s original and
exclusive jurisdiction is defined by Art. 217. But by express stipulation in a CBA, his
cases can be brought to the VA (Art. 262). This is valid under Sec. 3, Art. XIII of the
Constitution which requires the preferential use of voluntary modes of settling labor
disputes (Vivero ruling).

2
Acquisition of Jurisdiction. The LA acquires jurisdiction thru the filing of a verified
complaint, subject to SEnA (single entry approach or mediation) as reinforced by RA
10396, March 14, 2013. The VA acquires jurisdiction as follows: (1) Both parties are
willing to comply with their contractual obligation to go to the VA - thru a Submission
Agreement; (2) one party is unwilling = thru service of a Notice to Arbitrate; (c) if both
parties are unwilling, thru the appointment of a VA.

Note: Notice to Arbitrate. Only the exclusive bargaining representative (EBR) can
serve it, not any union even if registered. Art. 255 which provides that, for purposes of
collective bargaining, the workers shall be represented by the EBR but without prejudice
to the right of a worker or group of workers to present their grievances to the employer
at any time does not include the right of such group of workers to serve a notice to
arbitrate (Tabigue, et al. vs. Int’l Copra Export Corp., Dec. 23, 2009).

RD and Med-Arbiter: Problems

1
Union A files a CE petition with the Med-Arb. Rival Union B moves to dismiss the petition
on the ground that Union A submitted falsified registration documents for which reason
its legal personality should be disregarded. This cannot be done as it constitutes a
collateral attack. Only direct attacks are allowed (D.O. 40-03). Why? The RD is the
office vested with the power to cancel CRs; hence, cancellation cannot be asked from
the Med-Arb.

2
Its motion to dismiss denied, Union B goes to the RD for CR cancellation. It returns to
the Med-Arb. with a motion to suspend the CE proceedings on the ground that its
complaint for cancellation is a prejudicial question. Motion to suspend should be
denied. No more prejudicial questions under D.O. 40-03 unlike under the Fortune
Tobacco case. CE shall proceed subject to the outcome of the cancellation proceedings.
If no cancellation, CBA negotiations will not be stopped also - but subject also to the
outcome f the cancellation proceedings. If, finally, the RD issues an order of
cancellation and it attains finality, the next move is to seek CBA deregistration with the
RD.

Note: RD has jurisdiction over: (1) CR cancellation; (2) CBA deregistration; (3)
complaints/petitions involving WACLIU, supra. (BLR has jurisdiction over FINTCAM cases:
federations, industry unions, national unions, trade unions & their chapters, affiliates
and members) ; (4) 128 & 129 cases; and (5) complaints for violation of apprenticeship
agreements that are first ventilated before the Plant Apprenticeship Committee (non-
exhaustion of administrative remedies rule applies) .

C
Updates on 2011 NLRC Rules of Procedure

Situationer 1. A, a seafarer, files a complaint for maximum disability benefits of

US$60,000.00 with the LA. LA grants the relief sought. The respondent manning
 agent takes appeal to the NLRC which affirms the LA’s decision. Likewise, it denies the
appellant’s MR. Unless the CA issues a TRO, the NLRC decision will become final and
executory, and judgment will be entered, after the lapse of 60 days (period for
certiorari). The case will then be transmitted back to the LA for execution.

Remedies:
1
Motion to Quash Writ of Execution. If denied, no appeal. The remedy is to petition for
the nullification of the writ of execution under Rule XII, infra.

2
Petition under Rule XII, 2011 Rules of Procedure of the NLRC. A verified petition based
on grave abuse of discretion , serious error/s, or any irregularity during the execution
stage which, if not corrected, will cause serious and irreparable damage and injury to
the petitioner must be filed in 10 days from receipt of order denying the motion to
quash. From date of filing, the Sheriff cannot enforce judgment within the next 15 days.
Thereafter, he can pursue execution, unless the NLRC issues a TRO.

Note: Execution will not be stopped by mere filing of (a) a petition for certiorari with the
CA; (b) a motion to quash with the LA; and (c) a petition for extraordinary remedy with
the NLRC. A TRO is required.

Situationer 2. Judgment is enforced due to non-issuance of a TRO. Later, the manning

agent gets a favorable decision from the CA which attains finality because the seafarer
is not interested in challenging the decision before the SC. After all, he has already
received his US$60,000.00.

Remedy:
File a motion for restitution with the LA (Sec. 18 , Rule XI, 2011 Rules). Do not run after
the lawyer’s fees in the same motion because the LA has no jurisdiction over him.
Serve him a demand letter. If he does not return his attorney’s fees, bring the matter
to the IBP. (This will not be asked in the BAR).

UPDATE: For a motion for restitution to prosper, the apellate court must order
restitution in its final decision (amendment via En Banc Res. 11-12, s. 2012 && 05-14, s.
2014).

Art. 18 ©, luna v. allado constrtuction, nlrc cases

VII
EVIDENCE IN LABOR PROCEEDINGS

A
Substantial Evidence Rule

1. Vessel Logbook, its entries constitute substantial evidence.

2. Company ID is evidence of employer-employee relationship and not just as security
measure.
3. Payroll sheets are not the best evidence of abandonment . Under the best evidence
rule, the original document must be produced to prove its contents. So if the entries of
the payroll sheets are not at issue then the invocation of the rule is misplaced.
(Tegimenta Chemical Phil vs. Oco, Feb. 27, 2013).
4. Affidavits cannot be trusted because the person preparing them reduces to writing
what is just communicated to him, using his language. (Eagle Ridge Golf and Country
Club vs. Court of Appeals, et al., G.R. No. 178989, 18 March 2010). Take note, however,
that Rule V of the 2011 Rules of Procedure of the NLRC requires testimonies to be
reduced to affidavits and attached to position papers. Take note also of the Judicial
Affidavit Rule.
5. Affidavit of Assumption of Responsibility. A seafarer is not privy to it; hence, it
dos not bind him. The original manning agent is still solidarily liable to him even if
another has fully assumed liability because of the undertaking of the original manning
agent, as required by law, to be solidarily liable for all violations of the contract of the
seafarer. (Skippers United Pacific, Inc. vs. Maguad, et al., Aug. 15, 2006)

6. Foreign Law must be proven as a fact; otherwise, it will be presumed to be the same
as Philippine law. (EDI-STAFF BUILDERS INT’L, INC. vs. NLRC, Oct. 26, 2007: Presumed
Identity Approach/Processual Presumption).
7. Evidence from Instigation. Evidence even of procured from instigation can be used
against an erring employee because instigation is a defense only in criminal
procceedings, not in labor proceedings (Roquero vs. PAL, April 22, 2003)

8. Graphology. The testimony of a handwriting expert is not needed to establish serious

misconduct because the erring employee’s liability is being determined in an
administrative proceeding only where the quantum of proof required is substantial
evidence only (Mitsubishi vs. Simon, et al., April 16, 2008)

9, Conspiracy. Conspiracy cannot be presumed. It should be established as clearly,

positively and convincingly as the act itself (Sargasco Construction & Dev’t Corp. vs.
NLRC, Feb. 9, 2010; Domingo vs. Rayala, March 2, 2008.)

10. Telex asking for a reliever is evidence of resignation by a seafarer ( ).

B
Three-fold Liability Rule & Totality of Circumstances Rule
(Domingo vs. Rayala, Feb. 18, 2008)

There was no direct evidence of DRR in Domingo vs. Rayala. But Justice Nachura considered
the totality of the circumstances in arriving at his finding of liability. There were nasty verbal
acts, as well as physical acts, like touching the complainant’s shoulder while dictating
something to her. These acts, taken in their entirety, amounted to substantial evidence.

C
Third Physician Rule
(Phil Hammonia Ship Agency, Inc. vs. Dumadag, J. Brion, June 26, 2013)

Note: The compensability of a seafarer’s disability resulting from illness or injury is governed
by (a) Art. 191, PD 442; (b) the POEA-SEC; and (c) medical evidence. Requisites: (a) work-
related; and (b) degree of disability ( whether Grade 1 (total & permanent), Grade 2, etc…) is
certified to by the company-designated physician.

Rules: (1) Within 3 days from medical repatriation, the seafarer must report to manning
agent. If phsycally impossible, notify the latter within the same period. Non-compliance
will bar claim. (2) Seafarer must submit himself to company-designated physician for
examination and treatment. Unjustifiable abandonment of treatment will disqualify
him. (3) Opinion of company-designated physician is controlling, subject to the right of
the seafarer to seek medical opinion elsewhere. (4) In case of conflict in medical
findings, the parties shall agree on a third physician whose findings will be final and
binding.

Brion ruling. Dumadag filed his complaint without first disclosing the medical findings
of his own physician. Due to his non-disclosure, the manning agent was not able to
avail of the third physician remedy. Hence, at the time he filed his complaint he had no
cause of action.

Note: Philman Marine Agency, Inc. vs. Cabanban, July 29, 2013. No cause of action if opinion
if personal physician is sought after filing of complaint.

D
Burden of Proof vs. Burden of Evidence

(1) For money claims: Employee must first set forth his claims with particularity, or
establish the credit clearly, before the burden of proving payment can be imposed
on the employer. Once some form of payment is presented, the burden of evidence
is shifted to the employee.
(2) For illegal dismissal: Employee must first establish the fact of his dismissal with
clear, positive and convincing evidence before the burden of proving the validity of
his dismissal can be imposed on the employer.

E
Doubts Arising From Evidence

Extent of the Liberal Interpretation Rule: Doubts and ambiguities arising from (a) PD
442 provisions; and ORILC provisions (Art. 4, PD 442); (b) labor contracts (Art. 1702, NCC);
and (c) evidence in labor proceedings (Duty Free Phil. V. Tria ; Marival Trading ruling, 2007).

VIII
MONEY CLAIMS
 Jurisdictional Rules

Reasonable Causal Connection Rule. The money claim must have reasonable causal
relation to employer-employee relationship. If it arises from some other relationship, like a civil
contract (e.g., Sonza vs. ABS-CBN), labor tribunals have no jurisdiction.

Reference to Labor Law Rule. Not all disputes arising from the affairs between employers
and employees are for labor tribunals to resolve. Only claims resolvable thru the application of
the Labor Code, other labor statutes, and labor contracts are under their jurisdiction.
Outside Jurisdiction of LA: (a) reimbursement of training expenses (U-BIX case); (b)
recovery of car , replevin (Astorga Case ); (c) damages arising from violation of Art. 19, NCC
(Eviota case); (d) damages arising from quasi delict (Tolosa case); ( e) cross-claim between
principal and service contractor (SSS case ); petition for declaratory relief to nullify a CBA
provision (Halaguena, et al. vs. PAL, Oct. 2, 2009). In all these cases, it was held that the issue
was resolvable thru the application of other laws.

Labor Standards Claims

Coverage:
Art. 80 (a) All employees in all establishments; (b) whether for profit or not; (c)
no distinction between daily-paid and monthly-paid; (d) except ur MOM,
GF & Western Police District.

Not Covered: MOM (Managerial employees, Officers/Members of managerial

staff; Members of the family of the employer dependent on him for
support)
GF (Gov’t employees, Field Personnel)
WPD, subject to “K” Law (Workers paid by result, Persons in the personal
service of another, Domestic workers).

Note: Under the Kasambahay Act, HelLauGarCya is now entitled to

weekly rest period (also 8 hours daily rest), SIL & OT)

Holiday Pay & 13th Month Pay

Pieceraters: Pro labor : Although workers paid by result, they are
entitled to holiday pay (Sec. 8(b), Rule IV, Bk III, ORILC + Labor Congress
of the Philippines ruling 1998. Pro employer: Not entitled for being
workers paid b y result (Art. 82, Villuga vs. NLRC, 1993 + Mark Roche Int”l,
1999). As to 13th month pay, they are entitled because the employers are
not exempt.

Paid on commission basis: Entitled to holiday pay and 13th month pay
IF receiving basic salary also. In computing 13 th month pay, commissions
shall be added if wage type (basis for commission is the performance of
the worker), but not if bonus type (incentive).

Paid on task basis. Not entitled to holiday pay and 13 th month pay. No
qualifications.

Hours of Work : Flexible Work Schedule (must be NeVoTe - Necessary, Voluntary &
Temporary). See Kasambahay notes.
Solo Parents Welfare Act. Can arrange with employer over time-in &
time-out. Can leave work to attend to dependent subject to these
conditions: (a) must come back to complete normal hours of work; (b)
cannot exercise right during core work hours; (c) right not available if it
will impair individual or company productivity.
DOLE Advisory 2, s. 2009: (a) Compressed Work Week; (b) Reduced
Work Days (subject to 6 months cap); (c) Rotation; (d) Broken Time; ( e)
Forced Leave.

Service Incentive Leave (A curious animal because it does not prescribe like other
claims do, Autobus ruling, 2006)
Options: (a) use 5 days vacation with pay; (b) monetize it after 1 year;
or (c) get money equivalent of all SILs upon retirement or separation (Art.
291 will not bar more than 3 years old SILs).
 Wage Distortion Adjustment

1
Wage Distortion: (a) 2/more wage groups (inter-wage group); (b) each wage group
has its wage rate based on some rational consideration; (c) wage gap/wage advantage
of one wage group over the other is either eliminated or compressed; and (d) the
elimination/compression is caused by a wage order, CBA renegotiation or merger of
companies.

2
Wage Distortion Adjustment.
WDA = Minimum Wage x Prescribed Increase
Actual Salary (of disadvantaged wage group)

Note: Add the result to the wage rate of the wage group that has lost its wage
advantage in order to restore it.

Attorney’s Fees

1
Masmud vs. NLRC, 2009. Ordinary Attorney’s Fees vs. Extraordinary Attorney’s Fees.
Extraordinary - species of damages awarded to worker for being compelled to litigate
and incur expenses; it is awarded to a worker; it is limited to 10% only (Art. 110).
Ordinary - compensation for legal services; it is paid by worker to his lawyer; its
amount is governed by agreement; in the absence of an agreement, Quantum Meruit
rule applies; hence, it can be more than 10%.

2
Exodus Int’l Construction Corp. Vs. Biscocho, Feb. 23, 2011. 10% attorney’s fees can be
awarded even if lawyer does not attend many stages of the proceedings. Reason: the
10% is not based on rendition of legal services but compulsion to litigate on the part of
the client.

Worker’s Preference (Art. 110). Requisites of first preference: (a) remaining funds
or properties cannot cover all outstanding credits; and (b) the unpaid claim is brought
in a bankruptcy or insolvency proceeding, or any proceeding of similar import (judicial
settlement of estate, but not extrajudicial foreclosure of mortgage).

Note: Art. 110 does not affect the order of preference established in Art. 2241 and
2242, NCC. Hence, the State and mortgagee are always ahead of the unpaid worker
(Peralta & DBP cases). Under Art. 2241, the unpaid worker is No. 6 only. Under Art.
2242, he is No. 3. What Art. 110 affects is Art. 2244 only under which the unpaid worker
is No. 2. No. 1 is funeral expenses. What the unpaid worker enjoys is a mere
preference; whereas, the State and mortgagee enjoy liens. The special nature of a lien
is that it attaches to a specific property. Therefore, Art. 110 cannot take away the
mortgaged property and deliver it to the unpaid worker, just as it cannot take away
taxable property to deliver it to the worker. These properties are protected for the
owners of the tax lien and mortgage lien .

Crew Claims
Disability Claims
See Third Physician Rule, supra.
Death Claims
Benefits: (a) US$50,000.00 as death benefits; (b) US$7,000.00 for every child not over
21 and unemployed; and (c) US$1,000.00 funeral expenses.
Requisites: (a) death is work-connected; and (b) it must occur during the effectivity of
contract. Note: Death occurred 6 months after repatriation. Not compensable (Sea
Power Shipping Ent., Inc. vs. Salazar, Aug. 28, 2013)

OFW Claims

Unpaid Salaries: Pre-terminated OFW Contracts (see Due Process Clause & Equal
Protection Clause, supra.)

OFW Waivers
Basic rule: Waivers are void for being contrary to public policy, but not when they
represent a fair and reasonable compromise and they are supported with substantial
consideration (Periquet vs. NLRC). For OFW waivers to be valid, they must: (a) be
written in a language understood by the OFW; (b) be witnessed by 2; (c) be notarized;
 (d) state the amount of the actual money claim; and (e) state the amount of the
compromised claim (to aid the courts in determining if substantial or unconscionable).

Retirement Benefits

Article 287. Formula: 22.5 days x average daily salary x length of service
Note: 22.5 days = 15 days (half month salary); 5 days (SIL); and 2.5 days (1/12 of
13th month pay). Always give the 15 days. But before giving the others, find out if the
retiree is entitled to SIL and 13 th month pay. If not, do not include 5 & 2.5. Example: a
taxi driver is paid on task basis according to the SC. As a worker paid by result, he is
not entitled to SIL; so take away the 5 days. He is not also entitled to 13 th month pay.
So take away the 2.5 days. (Refer to Diagram of Art. 82 & 13th Month Pay)

SSS. PD442 retirement benefits are “apart from “ SSS retirement benefits (Chan vs.
Rogelio, April 27, 2011). Employer cannot argue that an employee should not get two
retirement benefits for retiring just once.

Pag-Ibig. Pag-Ibig retirement benefits are substitute retirement benefits. Any difference
between PD442 computation and Pag-Ibig computation shall be paid by the employer (Sec. 21,
Pag-Ibig Fund Act).

SSS Claims

Beneficiaries. Bart was married to Celia who started cohabiting with another man.
They had a child, Isa, who died at an early age. Bart, in turn, cohabited with Libby with whom
he had 2 children, Dalawa and Tatlo - aged 24 and 22. Then he fathered 2 more children with
another woman, Delia. These children named Apat and Lima were aged 15 and 17. In time,
Bart died. Death benefits were claimed: (a) by Celia; (b) Libby and her 2 children; and (c)
Apat and Lima. Whose claim must be granted?

Deny: (a) Celia’s claim because, at the time of Bart’s death, she was not living with
him. (Qualifications of spouse: legitimate + living with); (b) Libby’s claim because she
may be living with Bart but she was not his legitimate spouse; (c) Dalawa & Tatlo’s
claim because, at the time of Bart’s death, they were above 21. (Qualifications of
children: below 21, unemployed, and unmarried).

Grant:Apat & Lima;s claim because, at the time of Bart;s death, they were below 21,
unemployed and unmarried.

Note: In the Sygney case, the first paramour presented a fake marriage contract.
When disqualified, she presented a waiver signed by the legitimate wife. Both were
dishonored. The 2 children of the second paramour were allegedly disqualified too
because, at the time of Bart’s death, they were not living with him. SC said “living with”
is not a requisite for children.

GSIS Claims
The AOO Rule (not a legal term; just a memory tool; do not use it in the Bar).
AOO (arose out of Employment). For disability or death arising from disease to be
compensable, the disease must be AOO, i.e., occupational in nature. It is occupational if listed
in Annex “A” of the Employees Compensation Act, as amended. If not listed, compensation can
be based on substantial evidence of work-connection with the use of the Increased Risk
Theory or Proximate Cause Theory. In the Cate case, the disease was unlisted. However,
Cate could not present medical evidence to comply with the substantial evidence rule. SC
ruled that his disability caused by Osteoblastic Osteosarcoma was compensable because even
medical science could not explain the origin of his disease

The ICO Rule. (same)

ICO (in the course of employment). For disability or death caused by injury/accident to
be compensable, the injury/accident must occur in the course of employment. If outside, not
compensable - subject to the so-called off-premises rules, e.g. Reasonable Nexus Rule.,

Reasonable Nexus Rule. Question to ask: Does the member’s absence from his place of
work have a reason able connection to his presence at the place of contingency
(injury/accident)? Answer: YES - compensable.

The answer is YES in the following:

(1) Hinoguin was assigned in Nueva Ecija. He was accidentally shot to death by a
fellow soldier in Nueva Vizcaya. Travel outside place of work was by authority of a
night pass given by his commander.
 (2) Nitura fell off a wooden bride outside camp. He was dispatched by his
commander to locate his fellow soldiers who went to a dance in an nearby town.
Besides, a soldier is deemed on 24-hour duty (24-Hour Duty Rule) . Unless on
leave of absence, he is deemed on duty wherever he is.
(3) Alvaran, assigned in Pasig as a jail guard, was shot to death by a fellow policeman
in Muntinlupa on the occasion of the investigation of his son whom he accompanied
to Muntinlupa. He was on a peacekeeping mission, not a personal mission.
(4) Rodrin. His mission order directed him to arrest criminal elements at Place A.
While proceeding to that place, he received reliable info that the criminals had
relocated to Place B. To reach the place, he and convoy had to drive thru a private
subdivision where he was shot to death by a security guard. Death compensable
under the Liberal Interpretation Rule.

The answer is NO in the following:

(1) Alegre, instead if manning the police precinct he was assigned to, ferried
passengers aboard his tricycle. He was shot to death by a fellow policeman. He was
on a purely personal mission.

(2) De la Rea. He was shot to death with a .45 caiber as he alighted from a passenger
jeep. At the time of his death, he was on official leave. 24-Hour Duty Rule does
not apply.

Limited Portability Law

What is portable? (a) service credits; and (b) contributions. A member carries them with
him when he moves from one system to the other (SSS to GSIS, vice versa). If he cannot avail
of a benefit by reason of insufficient length of service (and for this reason ONLY), his SSS
service credits and GSIS service credits can be combined so that he can avail thereof.

Gamogamo Case (Portability Law not applied). In 1963, Gamagamo joined the DOH as dental
aid. In 1967, he became Dentist 1. After 14 years, he joined a private company which PNOC
absorbed later. In his contract with PNOC, his years of service with the company were
aknowledged but not those with DOH. In time, PNOC floated a retrenchment package under
which he would have been paid 2 months salary for every year of service. However, his
application for retrenchment was denied. He continued working until he reached retirement
age. He was paid 1 month salary for every year of service. After retiring, he discovered that 2
of his co-employees were paid 2 months salary x length of service. He sued PNOC to recover 1
more month and his service credits under DOH, invoking the Limited Portability Law. Held:
Law not applicable because he was not disqualified from receiving SSS/GSIS benefits by
reason of lack of service credits.

IX
LAW ON RECRUITMENT

Modes of Commission
1
CUTE CPAs Have Cute Red Peanuts (Art. 13(b), PD 442) + No License/Authority
(Canvassing, Utilizing, Transporting, Enlisting, Contract, Promising, Advertizing,
Hiring, Contract, Referring, Procuring)
2
With License/Authority + Prohibited Act (Art. 34, PD 442 + RA 10022)

Bad Defenses

1. Pp. vs. Jamilosa, Non-Presentation of Receipts for Placement Fees, SC: no need; Art.
13(b) says “whether for profit or not”)
2. Rodolfo vs, People. Lack of Profit. SC: (same)
3. Pp. vs. Panis. 1 recruit only. SC: “ 2 or more” not an element; just a rule of evidence.
4. Pp. vs. Chua. POEA subsequently issued recruitment license. SC: License is
prospective only; hence, it cannot legitimize a recruitment done without license.
5. Pp. vs. Comila. Lack of Knowledge that his passengers were recruited by his wife. SC:
lack of knowledge is equivalent to defense of good faith which is not available in mala
prohibita prosecututions.
6. Pp. vs. Navarra. Less than 3 recruiters; hence, no economic sabotage. SC: there are
6 victims; hence, it may not be by a syndicate, but it is still economic sabotage because
it is large scale.
7. Pp. vs. Ocden
8. Improper Venue. Complainant has 2 options: file case with court having territorial
jurisdiction over place of commission; or with court having territorial jurisdiction over
place of residence at the time he was recruited.

Good Defenses
1. Visa Assistance (Darvin vs. CA)
2. Fault of Recruit that he was not deployed (RA 10022).
3. Local Recruitment. Note: RA 10022 says “abroad” whereas Art. 13(b) says local or
overseas. Later law prevails. Recruitment of domestic helpers governed by
Kasambahay Act.

X
TERMINATION DISPUTES
1. Fact of Dismissal
Control Test. No dismissal without pre-existence of employer-employee relationship.
Complete Severance Test. No dismissal without complete severabce of employer-
employee relationship.
Note: No complete severance in: (a) Art. 286 unless 6-month period of suspension of
business operations exceeded; (b) preventive suspension; (c) lockout; (d) on leave
without pay employees.

Overt Act Test. No dismissal unless the employer commits an overt act resulting in
actual termination or constructive termination.
Note: No overt act in: (a) resignation; (b) abandonment; (c) desertion by a seaman;
(d) expiration of contract; (e) completion of project.

2. Validity of Dismissal. Just/Authorized Cause ONLY.

3. Pre-termination Procedures.
(a) Probationary employees. If dismissal is grounded on -
Failure to qualify - Notices not required if regularization standards were ade
known upon hiring (PDI, 2007).
Just/Authorized cause - same procedures
Expiration - notices not required.
(b) Abandonment. Even if there is no intent to dismiss on the ground of
abandonment, notice to last known address requirement must still be complied
with. No distinction between abandonment as a ground for dismissal and
abandonment as a defense. (Tugade Bros. case)
(c) Union member. Employer to verify ground for expulsion first before complying
with its duty to dismiss per union security clause.
(d) Union officer. Employer may dismiss union officer upon demand of union
members even pending his investigation before the DOLE RD for misuse of
union funds (Tagaytay Country Club case). Proceedings before RD not
prejudicial question.
(e) Seaman. To be served charge sheet (equivalent of 1 st notice under Art. 282);
investigated; and served schedule of penalties (2nd notice under Art. 282).
Minutes of proceedings shall be registered with the vessel logbook (substantial
evidence) and transmitted to local agent in the Phil. (for its ready use in case of
litigation). This procedure may be dispensed with if its observance will endanger
either vessel or crew.

XI
SELF-ORGANIZATION

Coverage: STAKINGS (Security guards, Terminated employees, Aliens, Kasambahay, INC

members New employees Gov’t employees & Supervisors)

The Confidential Employee Rule. A reports to or assists B. Their relationship is fiduciary. A

is disqualified if: (a) B possesses labor relations information; and (b) A has access to said
information which access is inherent in his position. Not disqualified if: (a) A’s access is to
information which is not labor relations in nature (e.g., purely business); or (b) A’s access to
labor relations info is accidental only.

The Extension Rule under Art. 245. Main rule: Supervisors can organize but cannot join
the rank-n-file union. Extension rule - a union composed of rank-n-filers and one composed of
supervisors cannot join the same federation if (a) the members of the first are under the
supervision of the members of the second; and (b) the second conducts trade union activities
in the same establishment. Note: Under RA 9481, they can join the same federation as long
as they belong to the same establishment.

Cert. Election & CB-CN.

 1. Certification Elections
When Valid: Not barred Contract Bar. Certification Year Bar, or Deadlock Bar,
Negotiation Bar or Appeal Bar AND Major ELVOT CASVOT (majority
of the eligible voters casts its vote)
Who wins: Union with Major VOT VALVOT (majority vote of the valid votes)

2. Run-Off Election
(a) Valid CE;
(b) 3/more choices (including No Union);
(c) None got major VOT VALVOT;
(d) Total votes of participants (excluding No Union) is at least 50% of CASVOT;
(e) No election contest that would materially alter the CE result.

3. Collective Bargaining (CB) & Collective Negotiations (CN). Under Art. 255,
collective bargaining is the function of the EBR. But any group of workers can bring
their grievances to the employer (aspect of CN). CB is subject to jurisdictional
preconditions; CN is not. The end product of CB is a CBA; that of CN is a CNA. Art.
3, PD 442 CB guarantees CB but not CN which is found in Sec. 3, Art. XIII of the
Const’n only.

Rights of Exclusive Bargaining Representative (EBR)

1, Notice of Strike ;
2. Strike Vote;
3, Notice to Arbitrate

Law on Strikes
Factual Issue: 3 Elements (a) temporary stoppage of work; (b) concerted activity; and
(c) labor dispute.

Validity Issue: MISPAP Test (a) Means Test; (b) Injunction Test; (c) Statutory Prohibition
Test; (d) Procedure Test; (e) Agreement Test; (f) Purpose Test.

Collective Bargaining Agreements

1. Mandatory Provisions: Union Security Clause

When the SOLE crafts a CBA for the parties, following commenced but failed CBA
negotiations, stipulations already reached cannot just be disregarded. If the union security
clause agreed upon was a union shop, it is grave abuse of discretion if the SOLE changes it to
closed-shop because the latter is more onerous to the company. In a union-shop agreement,
the company can hire non-union members subject to the duty of the new hire to join the EBR.
In a closed-shop agreement, the company is under obligation to hire from the membership of
the EBR, regardless of qualifications vis-à-vis the actual manpower requirements of its
business. So, a closed-shop agreement is more onerous (Meralco cases).

2. Effectivity of Economic Provisions. CLUE: “Vol O, Vol U; Invol O, Invol U”

A. Voluntary CBAs (crafted by the parties):

1. Organized (6-month Rule applies):
(a) New eco provisions are perfected w/in 6 months following date of
expiration of old eco. Provisions - new eco provision will retroact to
the day following date of expiration.
(b) Outside 6 months, as agreed upon by the parties, e.g.:
(i) To retroact; or
(ii) To take effect on a later date. Period not covered by the
new agreement will continue to be governed by the old
provisions (Hold-Over Doctrine).
2. Unorganized
(a) SOLE will give parties the opportunity to agree on date of
effectivity;
(b) Absent agreement, date fixed by the SOLE.

B. Involuntary CBAs (crafted by the SOLE):

1. Organized (as agreed upon in the CBA, not the date of the CBA)
2. Unorganized (to take effect like a judicial decision)

XII
SPECIAL LAWS
Double Indemnity Law.
 Unpaid salary increase doubled + criminal prosecution. Payment does not bar
prosecution.
Magna Carta for Women
2 months full salary if woman undergoes surgical procedure by reason of a
gynecological disorder.
Magna Carta for Persons with Disability
Vilification/insulting of disabled now a crime.
Solo Parents Welfare Act
1
Solo Parent = Assumes parental responsibility alone bcoz IF NO DADS Undo
Coitus (Insanity, Family member, Nullity, Other person, Death, Abandonment, Detention,
Separation, Unmarried, Crime) PLUS Dependent who is less18 DULU (less than 18,
dependent, unmarried, living with & unemployed.
2
Rights: (a) 7 days parental leave; (b) against discrimination; and (c) flexible work
schedule.

XIII
MULTIPLE CHOICE QUESTIONS
(Mother MCQs)

001. The principles underlying PD 442 are the following:

1. Tripartism in national policy-making;

2. Labor relations must be responsive and responsible to
national development;
3. During national emergency, strikes or lockouts must give
way to arbitration;
4. Manpower development and employment; and
5. Global labor marketing.

True (T) or False (F):

1 2 3 4 5
(a) T T T T T
(b) T T T T F
(c) T T F T F
(d) T T F T T

Ans. (a) Prof. C. Azucena, IBP Journal, Vol. XXVI, 2000.

005. Of the following, whose employment is governed by P.D. 442 in a suppletory

manner only?
(a) a private teacher whose employment is primarily
governed by the Manual of Regulations for Private Schools;
(b) a government nurse whose hours of work are primarily
regulated by the Magna Carta of Public Health Workers;
(c) a self-employed who is primarily the master of his time,
means and methods;
(d) an OFW whose employment is primarily governed by the
Migrant Workers & Overseas Filipinos Act.

002. It is the type of Labor Law that is both remunerative and protective.
(a) Labor Standards Law;
(b) Labor Relations Law;
(c) Welfare Legislation;
(d) Social Legislation.

003. This provision of law renders Labor Relations Law extra-territorial.

(a) Sec. 10, Migrant Workers and Overseas Filipinos Act;
(b) Sec. 5, Magna Carta for Disabled Persons, as amended;
(c) Art. 211, Labor Code, as amended;
(d) Art. 277. Labor Code, as amended.

004. Labor Law is both substantive law and procedural law. Which of the
following gives chapter and verse to this postulate best?
 (a) Book III and Book V, Labor Code;
(b) Labor Standards Law and Labor Relations Law;
(c) Labor standards benefits and visitorial power;
(d) Art. 110 and Art. 128, P.D. 442.

005. How does Labor Standards Law (LSL) interplay with Labor Relations Law
(LRL)?
(a) LSL lays down pre-employment policies and LRL lays
down post-employment policies;
(b) LSL sets forth remunerative and protective rules and LRL
sets forth organizational and tenurial rules;
(c) LSL provides for minimum terms and conditions of
employment and LRL provides for mechanisms to improve them;
(d) LSL gives visitorial power and LRL gives compulsory
power.

007. We observe these principles in this jurisdiction:

1. Business survival and success. Labor benefits are not raw

materials; they are the product of business success. Therefore, the right
of enterprises to reasonable return on investment and to expansion and
growth must be promoted in order to ensure labor’s just share in the
fruits of production.

2. Workplace democracy and refocused unionism. The need for

business survival must be balanced by concern for the workers’ security
and concerns. The work environment must be non-adversarial to be
productive. This should be the product of the joint effort of the employer,
employees and the government.

3. Productivity. Wage rates should be based on productivity. For a

country to be competitive, the wage rates must be within the bounds of
productivity and reasonably relate to those of other countries.

4. Labor education. Through education, workers will know what their

employers owe them and what they do not.

These principles are known as:

(a) the fundamental labor relations principles;

(b) the core principles of employer-employee relationship;
(c) the 4 pillars of labor relations;
(d) the 4-fold nature of industrial relations.

009. Is employer-employee relationship a precondition for applying PD 442?

(a) Yes, relative to employment benefits; No, relative to illegal
recruitment.
(b) Yes, relative to ULPs under Art. 249; No, relative to ULPs under Art.
248;
(c) Yes, relative to post-employment rights; No, relative to pre-
employment rights;
(d) Yes, relative to visitorial power; No, relative to adjudicatory power.

014. The Principle of Shared-Responsibility translates best as follows:

(a) the duty of employers to pay a living wage requires the correlative
duty of employees to render adequate and efficient service;
(b) parties shall negotiate to resolve wage distortion disputes;
(c) wages shall be fixed thru collective bargaining;
(d) employees and workers shall not act oppressively against one
another.

015. A “no couples policy” that survives scrutiny under Art. 136 of the Labor
Code for being facially neutral may still be void under the Full Protection Clause
if –
 (a) it has a disparate impact;
(b) it has no legitimate business purpose;
(c) compliance therewith will not enhance the worker’s efficiency;
(d) it results in a forced resignation.

018. Stem: Security of tenure: Just or authorized cause.

Options:
(a) Just share in the fruits of production: company_performance;
(b) Self-organization: union busting;
(c) Living wage: illegal salary deductions;
(d) Humane conditions of work: sexual harassment.

Piolo is a worker. Therefore,

(a) he has the right to join a labor organization for collective
bargaining purposes;
(b) he has an employer with the obligation to pay him a living
wage;
(c) he has the right to equality of employment opportunities;
(d) he is entitled to a just share in the fruits of production.

Note: A worker is a member of the labor force. He is not

necessarily an employee.

022. Edu is the employer of Piolo. Therefore, the following are his obligations,
except:
(a) he must not dismiss Piolo but for a just or authorized cause;
(b) he must pay Piolo a living wage;
(c) he must give Piolo equal chance to be promoted;
(c) he must give Piolo an incentive pay from his net income as his just
share.

Employer-employee relationship is a contractual relationship. As such, it is

correct to argue that:
(a) it is governed by the Principle of Obligatory Force of Contracts;
hence, an employer should allow his probationary employee to complete
his probation before making a finding that he has failed to qualify;
(b) it is governed by the Principle of Freedom of Contracts; hence, an
employee can terminate it by resigning or quitting to avoid involuntary
servitude;
(c) it is governed by the Principle of Relativity of Contracts; hence, a
deceased employer’s surviving parents shall assume the latter’s
obligations;
(d) it generates the obligation to render personal service on the part of
the worker, and the obligation to pay wages on the part of the employer;
hence, it is a legal necessity justifying specific performance.

5. SYNTHESIS MCQS.

049. Labor contracts are governed by special laws (Art. 1700, New Civil Code),
more specifically by the Labor Code. In case of conflict between
provisions of this special law and provisions of the New Civil Code, which
is a general law, the former shall be given preferential application.
Therefore:

(a) a term employee performing work necessary or desirable to the

usual business of his employer is a regular employee (Art. 280, PD
442) who shall not be relieved upon expiration of his contract by
his employer relying on Art. 1306 of the New Civil Code;
(b) an unpaid worker, who is 6th in the order of preference under Art.
2241 of the New Civil Code, shall be 1 st by virtue of Art. 110 of the
Labor Code as long as he submits his unpaid claim in a bankruptcy
or insolvency proceeding;
 (c) only doubts arising from provisions of PD 442 and its implementing
rules shall be resolved in favor of labor (Art. 4, PD 442); hence,
those arising from labor contracts (Art. 1702, New Civil Code) shall
not be so resolved;
(d) an unpaid worker who is not 1 st in the order of preference
established by the New Civil Code can be 1 st under Art. 2244 of the
New Civil Code as long as he complies with the requisites of Art. 110 of
the Labor Code.

6. EVALUATION MCQs.

050. Employer-employee relationship is a contractual relationship. As such,

(a) it is a question of fact; hence, it can only be established with
documentary evidence;
(b) it is the source of obligations; hence, it creates a legal necessity
to give, to do or not to do;
(c) it is a question of intent; hence, its existence can be stipulated
against;
(d) it is a consensual relation; hence, it is must be entered into
freely, knowingly and voluntarily.

Which of the following principles in Sec. 3, Art. XIII of the Constitution is not
found in Art. 3 of the Labor Code?
(a) full employment;
(b) equality of employment opportunities;
(c) just and humane conditions of work;
(d) just share in the fruits of production.

A labor dispute can obtain even between strangers because:

(a) Art. 106, PD 442, makes it possible;
(b) the allegations of a complaint determine the existence of a labor
dispute;
(c) a labor dispute is a question of law;
(d) the disputants need not stand in the proximate relation of
employer and employee.
073. A person engaged in recruitment does not commit illegal recruitment if
licensed, unless:
(a) he is the subject of a prior complaint for illegal recruitment;
(b) he has issued a receipt for advance placement fee;
(c) he has not yet submitted his SPA to the POEA;
(d) he knew that deployment had become impossible.

074. Which of the following is a tenable defense in a criminal action for illegal
recruitment?
(a) lack of profit;
(b) dealing with 1 person only, instead of 2 or more;
(c) lack of knowledge that co-accused wife was recruiting;
(d) non-deployment is due to the fault of the job applicant.

075. Which of the following is an ineffective defense in a criminal action for

illegal recruitment?
(a) the employment promised is local;
(b) no distinct impression of authority to recruit;
(c) mere employee status;
(d) remittance of placement fee to a licensed recruiter.

Labor standards cover all employees in all establishments, whether for profit or
not, like:
(a) managerial employees; officers and members of the managerial
staff; and members of the family of the employer dependent on him for
support;
(b) government workers; and field personnel;
(c) workers paid by result; persons in the personal service of another;
and domestic workers;
 (d) learners; apprentices; and handicapped workers.

086. The Reasonable Causal Connection Rule requires –

(a) employer-employee relationship as basis for entitlement to labor
standards;
(b) that a labor standards claim must have reasonable causal
connection to employer-employee relationship for labor tribunals to have
jurisdiction;
(c) that a money claim must be resolvable under the Labor Code for
labor tribunals to have jurisdiction;
(d) that a money claim must at least be casually connected to
employer-employee relationship for the claimant to have a cause of
action.

087. Ree-Book is engaged in retail business and has 9 regular workers. These
workers are entitled to the following labor standards benefits, save:
(a) weekly rest period;
(b) night shift differential;
(c) holiday pay;
(d) overtime pay.

088. Ree-Bond sells hair spa materials and effects. It employs 3 regular store
helpers who are sometimes required to work past 10:00 pm when there
are late incoming deliveries. These workers are NOT entitled to nightshift
differential because:
(a) they are employees of an employer engaged in retail or service
with not more than 5 regular workers;
(b) they are employees of an employer engaged in retail or service
with less than 10 regular workers;
(c) they are persons in the personal service of another;
(d) they are workers paid on task basis.

089. Jim-Bond is not a manager, supervisor, family member dependent on the

employer for support, government worker, field personnel, worker paid by
result, person in the personal service of another or domestic worker. But
he is not entitled to service incentive leave (SIL) because:
1. his employer is giving him the equivalent of 5 SIL;
2. his employer is exempt;
3. he is one of the less than 10 regular workers of his employer.

(a) 1, 2 & 3 are all correct;

(b) 1 & 2 are correct; 3 is incorrect;
(c) 1 is correct; , 2 & 3 are incorrect;
(d) 1, 2, & 3 are incorrect.

2. COMPREHENSION MCQs.

090. The following benefits are labor standards, with the exception of:
(a) service incentive leave;
(b) service charges;
(c) overtime pay;
(d) premium pay.

091. Except by one of the following, which must be shaded, what Labor
Standards Law provides may be altered if favorable to workers:
(a) collective bargaining agreement;
(b) employment contract;
(c) practice or policy;
(d) strike.

3. APPLICATION MCQs.
092. A person who executes management policies is a –
A - (1) middle manager;
(2) first level manager;
 Who is not entitled to –
B - (1) holiday pay;
(2) weekly rest period.

Otherwise stated,
(a) A (1); B (1);
(b) A (2); B (2);
(c) A (1); B (2);
(d) A (2); B (1).

093. Alexis a commercial worker who regularly performs his work near his
house and away from the place of business of his employer. His hours
worked can not be ascertained with reasonable certainty. He is a –

A - (1) field personnel;

(2) homeworker;

Therefore, he is entitled to –
B - (1) meal period;
(2) overtime pay.

The correct match is:

(a) A (1); B (1);

(b) A (1); B (2);
(c) A (2); B (2);
(d) A (2); B (1).

4. ANALYSIS & SYNTHESIS MCQ.

094. Rigo has been driving a Victory Liner passenger bus the past 8 years.
His average daily take home pay is P500.00. He is retiring with 15 fellow
drivers in 2 days. What will be the basis for computing his retirement
benefits under Art. 287 of the Labor Code?
(a) 22.5 days;
(b) 20 days;
(c) 17.5 days;
(d) 15 days.

095. A solo parent is

A - (1) a woman left alone to take care of her baby;
(2) any person left alone or solo to discharge parental
responsibility;
Due to
B - (1) birth outside wedlock or private crime;
(2) among others, death, abandonment, separation,
detention;

As long as the dependent is

C - (1) less than 21, unmarried, unemployed and living with
the parent;
- (2) less than 18 unmarried, unemployed and living with
the parent.

A worker would possesses solo parent status, and would then be entitled
to flexible work schedule, if:
(a) A (1); B (1); C (1);
(b) A (2); B (2); C (1);
(c) A (2); B (2); C (2);
(d) A (1); B (1); C (2).
 Note: Change in the status of the dependent will affect solo parent
status.
Unlike a Compressed Work Week (CWW) schedule, Reduced Work Days (RWD)
schedule is subject to a 6-month cap. The reason is unlike in CWW, in RWD
____________________.
(a) the affected worker suffers income reduction;
(b) the affected worker cannot render overtime work to recoup lost
wages;
(c) the worker is deemed to have given his consent for 6 months only;
(d) the financial difficulties of the employer are relatively temporary.
Many years ago, Leo, who was on the 8:00 a.m to 5:00 p.m. workshift,
received P240.00 daily. On August 7, he reported for work at 9:00 a.m.
and retired at 5:00 p.m. On August 8, he reported at 8:00 a.m. and
retired at 6:00 p.m. upon the request of his employer. On August 9, he
reported at 7:00 a.m. to tender his resignation due to low pay. He asked
for his salaries for his 2 days of work. He waited until 10:00 a.m. Finally,
his employer gave his salaries as follows:

August 7 - P240.00 – P30.00 (undertime) = P210.00

August 8 - P240.00 + P30.00 (overtime) = P270.00
Total . . . . . . . . . . . . . . . . . . . . P480.00

Which of the following comments would you expess?

(a) the computation is wrong because it is not based on minimum
wage;
(b) the computation is unlawful because it violates Art. 88, PD 442;
(c) the computation is prohibited by the rule that overtime cannot
offset undertime;
(d) the computation is erroneous because it does not include the
waiting time from 8:00 a.m. to 10:00 a.m..

The CBA provides: “Nightshift differential (NSD) shall not be computed before
overtime (OT).” This means –
(a) the employees are not entitled to NSD;
(b) in computing OT pay, NSD pay shall not be integrated in the basic
salary;
(c) NSD shall be computed only after OT is computed;
(d) NSD shall only be computed after OT is computed.

Extra work is overtime work if:

A - (1) rendered beyond 8 hours of work;
(2) worked beyond normal hours of work; and

B - (1) rendered within a period of 24 hours;

(2) rendered within a particular day.

Or else, one renders overtime if:

(a) A (1); and B (1);
(b) A (1); and B (2);
(c) A (2); and B (2);
(d) A (2); and B (1).

3. APPLICATION MCQs.

109. Kirk is one of the 25 regular monthly-paid employees of the BNP, a

commercial bank. On August 8, 2009, after 8 months of work, he
reported for military duty to help track down Ghadafy in Mindanao.
Having succeeded in locating and capturing the erstwhile Libyan dictator,
he reported back to his bank and resumed doing the work he left behind
on his 39th birthday until he celebrated his next birthday. Which of the
following benefits is Kirk entitled to based on the foregoing facts?
(a) hazard pay;
(b) service incentive leave;
(c) vacation leave;
 (d) bounty.

110. One month following Kirk’s 40th birthday, his wife gave birth to their 5 th
child. The first 4 were quadruplets whom Kirk and Crisjointly took care of
at home. Is Kirk entitled to paternity leave?
(a) No. The law limits the benefit to 4 children only. Cris delivered her
5th child; hence, Kirk is disqualified;
(b) No. The law limits the benefit to 4 deliveries only. Cris delivered
the 5th time; hence, Kirk is disqualified;
(c) Yes. He is legally married to Cris with whom he cohabited;
(d) Yes. Cris had 2 deliveries only and her lawful husband continued to
live with her.

111. Cris died of a heart attack upon seeing the face of her 5 th child. He
looked exactly like Ghadafy. Is Kirk entitled to parental leave?
(a) Yes. He is now a solo parent by reason of the death of his wife Cris;
(b) Yes. But he must convert his parental leave to cash because he
has not yet used up his paternity leave;
(c) No. He has not yet exhausted his paternity leave; unless, he opts
to monetize his paternity leave;
(d) No. Kirk is not left alone or solo because of the presence of Inday,
his children’s longtime yaya.

Weekly Rest Period

1. KNOWLEDGE MCQ.

112. A covered worker who renders _________ is entitled to a rest day of

_____________.
(a) at least 1 month of work; 24 hours;
(b) 1 week of work, whether broken or continuous; 24 hours;
(c) 6 consecutive days of work; 24 consecutive hours;
(d) 6 days of work; 24 consecutive hours;

2. COMPREHENSION MCQ.

113. All employees in all establishments, whether for profit or not, are entitled
among others to a weekly rest period and overtime pay. Among others,
domestic workers are not so entitled. Therefore,
(a) a maid can be required to work 24/7;
(b) a maid shall work maximum of 8 hours daily for 7 days;
(c) a maid shall work maximum of 10 hours daily with 1 rest day at
her option;
(d) a maid shall work maximum of 12 hours daily and shall rest for 12
hours weekly.

Premium Pay

1. KNOWLEDGE MCQs & COMPREHENSION MCQs.

114. Premium pay is -

(a) a penalty imposed on employers for requiring work when work

should not be performed;
(b) a benefit a covered worker is entitled to as a matter of right;
(c) an imposition of law to discourage employers from requiring extra
work;
(d) a measure of extra compensation to encourage rendition of
services when the same are not supposed to be rendered.

Holiday Pay

1. KNOWLEDGE MCQs.
 115. A covered worker is entitled to holiday pay if he is present. on leave with
pay, or enjoying his rest day or regular holiday break on the day
immediately preceding–
(a) May 1;
(b) August 21;
(c) November 1;
(d) December 31.

116. If a regular holiday falls on a Tuesday, it shall be observed on :

(a) Monday;
(b) Tuesday;
(c) the day agreed upon in the CBA;
(d) the day convenient to employees.

Note: Holiday Economics Law repealed by Proc. 84.

117. Which of the following is a special day only?

(a) Rizal Day;
(b) Maundy Thursday;
(c) Good Friday;
(d) Black Saturday.

118. If 2 regular holidays fall on the same day, an employer cannot pay 1
holiday only because –
(a) he would be unduly permitted to reduce the number of regular
holidays on that day from 2 to 1;
(b) only law can set the number of regular holidays; an employer
cannot reduce the number set by law;
(c) the covered worker’s workday is deemed doubled by the 2
holidays;
(d) the Liberal Interpretation Rule forbids payment of 1 holiday only.

119. If a worker reports for work on a day on which 2 regular holidays fall, he
shall be entitled to 300% of his basic salary because–
(a) this was the advice of the DOLE in 1993;
(b) this was the advice of the DOLE in 1998;
(c) 300% is just and equitable;
(d) there is no law to apply; hence, general principles of justice shall
apply.

2. COMPREHENSION MCQs.

120. A rank-n-file employee who is monthly-paid _______________.

(a) is not entitled to holiday pay because he is paid all the days of the
month, including holidays;
(b) is entitled to holiday pay because the law does not distinguish
between monthly-paid and daily-paid employees;
(c) is not entitled to holiday pay if he is paid more than 26 days a
month;
(d) is entitled to holiday pay if he is paid less than 26 days a month.

121. A worker paid on task basis is entitled to the following benefits, except:
(a) holiday pay;
(b) meal period;
(c) rest day;
(d) SSS coverage.

3. APPLICATION MCQs.

122. Donald is paid P25 per piece or unit of work he produces, which piece or
unit is more or less replicated, regardless of the time he needs to produce it.
As such, he is entitled to:
(a) holiday pay;
(b) nightshift differential;
 (c) overtime pay;
(d) service incentive leave.

123. Donald is paid 5% of his gross sales of condoms. He is a worker paid by

result; hence, he is not covered by the holiday pay law. However, he
would be entitled to holiday pay if –
(a) his commission is less than 5% based on gross sales;
(b) he also receives basic monthly salary;
(c) he is one of more than 10 regular workers of his employer;
(d) his employer is not exempt.

4. ANALYSIS MCQs.

124. The Equitable Bank computes the SIL and OT of its monthly-paid
employees by dividing their total annual basic salaries with a certain
number of days in order to arrive at their average daily rates.
Sometimes, it uses 261 days as a divisor; sometimes 249 days. The use
of 249 days as divisor means:
(a) the bank deducts Saturdays, Sundays and regular holidays from
365 days;
(b) the hourly rate is higher; hence, OT pay is higher;
(c) the bank pays higher SIL because the average daily rate is higher;
(d) the bank does not pay its workers their holiday pay.

125. The VA held that Equitable Bank, using 249 as divisor in computing SIL,
failed to pay its monthly-paid employees their holiday pay. He then
awarded them holiday pay by using 261 as a divisor after increasing their
total annual salaries by 12 days. On appeal, the bank argued that if the
proper divisor was 261 then by using 249 it had overpaid its workers of
SIL; hence, it will give them holiday pay but they should reimburse the
excess SIL. Decide.
(a) I will dismiss the appeal. The excess SIL is deemed waived thru
company practice;
(b) I will affirm the VA. The Principle of Solutio indebiti does not apply
in labor cases;
(c) I will affirm the VA. There is no excess payment because when the
VA increased the divisor from 249 to 261, he also increased the
total annual salaries by 12 days;
(d) I will dismiss the appeal. There is no appeal from the decision of a
VA.

5. SYNTHESIS MCQS.

126. Piece-raters are workers paid by result; hence, they are not entitled to
holiday pay. So was the ruling of the Supreme Court in the 1993 Villuga
Case, which it reiterated in the 1999 Mark Roche International Case.
However, Sec. 8(b), Rule IV, Bk III of the ORILC entitles piece-raters to
holiday pay as held in the 1998 Labor Congress of the Philippines.
Resolve these conflicting rulings.
(a) Between Art. 82, PD 442, and Sec. 8(b), Rule IV, BK III of the
ORILC, the former must have preferential application;
(b) Sec. 8(b), Rule IV, Bk III of the ORILC exceeds the authority which
Art. 5, PD 442, grants the DOLE; hence, it is void for being
amendatory of PD 442;
(c) Sec. 8(b), Rule IV, BK III of the ORILC is valid and will continue to
produce legal effects until annulled;
(d) The 1999 Mark Roche International ruling is deemed to have
abandoned the 1998 Labor Congress of the Philippines ruling.

127. Rufo is on the 8:00 a.m. to 5:00 p.m. workshift. He is required to report
at exactly 8:00 a.m. to do the bundy and to report again at exactly 5:00
p.m. to do the same ritual. In between, he goes away to perform his work
5 kilometers away from the place of business of his employer where he
works alone and unsupervised. He claims holiday pay.
 (a) Rufo’s claim must be denied because he is a field personnel owing
to the distance of his place of work and lack of supervision;
(b) Rufo’s work schedule and compliance with reporting rules makes it
possible for his employer to ascertain his hours worked; hence, he
is entitled to holiday pay not being a field personnel;
(c) Rufo’s work schedule is not decisive of his non-field personnel
status because, in between 8:00 a.m. and 5:00 p.m., he is the
master of his time;
(d) there is a doubt generated by Rufo’s work schedule; hence, the
same should be resolved in his favor so as to entitle him to holiday
pay

6. EVALUATION MCQs.

128. Assertion (A): When a covered worker is absent on Wednesday, he would

be entitled to 1 regular holiday if and only if he reports for work on
Maundy Thursday or Good Friday.

Reason (R): To discourage workers from taking a long vacation beginning

Wednesday which is detrimental to employers’ interest.

(a) (A) is True, and (R) is the practical explanation for (A);
(b) (A) is True, but (R) is not the settled explanation for (A);
(c) (A) is False; hence, (R) is misplaced ;
(d) (A) is False but (R) could be a good explanation for (A) if it were
True.

Bonus

SYNTHESIS MCQS/EVALUATION MCQs.

129. Complaining of violation of the Principle of Non-Diminution of Benefits,

the employees of Philex Mining Co. wrote President Manny V. Pangilinan
to intervene. The latter, however, pointed out that the withheld bonuses
enjoyed the past 13 years were upon instructions of the receiver and
that Philex could not do anything. Is the principle violated?
(a) Yes. The bonuses have ripened into demandable rights;
(b) No. The bonuses are productivity incentives which can be
withheld depending on company performance;
(c) Yes. The receiver can withhold bonuses while a company is under
judicial monitoring as he attempts to resuscitate it;
(d) No. Once given and enjoyed for a considerable length of time,
bonuses cannot be unilaterally withheld.

13th Month Pay

1. KNOWLEDGE MCQs.

Mother MCQ.

130. All

A - (1) rank-n-file employees;

(2) private employees;
who are

B - (1) earning not more than P1K per

month;
(2) land-based;

are entitled to 13th Month Pay consisting of

C - (1) 1 month salary;

(2) 1/12th of the total annual basic salary.
 The coverage of the 13th Month Pay Law is:

A B C
(a) 2 1 1
(b) 1 2 1
(c) 2 2 2
(d) 1 2 2

131. Who of the following is entitled to 13th Month Pay?

(a) a family driver;
(b) a worker of a GOCC with original charter;
(c) a 1st level manager;
(d) a piece-rater.

2. COMPREHENSION MCQs.

132. “All employees in all establishments whether for profit or not” is to Labor
Standards; whereas, ____________________ is to 13th Month Pay.

(a) “all employees in the private sector”;

(b) “all minimum wage earners”;
(c) “all employees regardless of rank and salary rate”;
(d) “all land-based rank-n-file employees”.

3. APPLICATION MCQs.

133. Greg has been the private nurse of Katrina, a young widow suffering from
acute depression. He has also been assisting the patient’s psychiatrist
the past 6 months. Is he entitled to 13th Month Pay?
(a) Yes, because he is a land-based rank-n-file employee;
(b) No, because he is a person in the personal service of another;
(c) No, because he is a person paid on task basis;
(d) Yes, because he is the employee of the psychiatrist, not of Katrina.

4-5. ANALYSIS & SYNTHESIS MCQ.

134. Five (5) drivers of the Auto Bus, Inc. were able to enforce a favorable
judgment rendered in an illegal dismissal case they initiated against their
employer. Unable to garnish any bank account, the NLRC sheriff
proceeded to auction off one of the passenger buses of the company. The
5 drivers ended up as highest bidders. In due time, they became owners
of the said passenger bus which was eventually issued a green plate by
the Land Transportation Office after the company replaced the unit
subject of its Certificate of Public Convenience (CPC) with a newly
purchased unit. For their convenience, the 5 decided to operate their bus
as a school bus and engaged Alex to drive it. For the next 17 years, the 5
drove other passenger buses, sued their employers for illegal dismissal,
ended up owning auctioned buses, and engaged 11 more drivers to
service different schools. In the meantime, Alex who was receiving an
average daily salary of P500.00 reached 60 years of age after 18 years of
driving. How much retirement benefits, more or less, is Alex entitled to
under Art. 287 of the Labor Code:
(a) P202,500.00;
(b) P180,00000;
(c) P153,000.00;
(d) P135,000.00.

6. EVALUATION MCQs.

135. Rachel teaches at the College of Accountancy of the University of the

Cordilleras. She teaches 5 units daily from Monday to Friday. She also
teaches an additional 2-unit subject as a substitute on Tuesdays and
Thurdays by reason of a co-teacher taking a maternity leave.
 Rachel’s extra pay for teaching on Tuesdays and Thurdays is –

A - (1) overtime pay;

(2) overload pay.

In computing her 13th Month Pay, said extra pay shall be –

B - (1) included;
(2) excluded.

The reason is that said pay is –

C - (1) part of her basic salary;

(2) not part of her basic salary.

It is safe to say that:

(a) A(2); B(2); C(2);

(b) A(1); B(2); C(2);
(c) A(2); B(1); C(1);
(d) A(1); B(1); C(1).

C
Law On Wages

1. KNOWLEDGE MCQs.

Mother MCQ.

136. A wage is a

A - (1) remuneration;
(2) renumeration;

Capable of being expressed in

B - (1) legal tender;
(2) money;

In an amount that is
C - (1) commensurate;
(2) fixed or based on result;

For work done or to be done; or

D - (1) services rendered or to be rendered;
(2) services contracted or to be contracted;

Including the reasonable value of

E - (1) facilities;
(2) supplements.

Under Article 97, PD 442, a wage is:

A B C D E

(a) (2) (2) (2) (1) (1);

(b) (1) (1) (1) (2) (1);
(c) (1) (2) (1) (1) (2);
(d) (1) (2) (2) (1) (1).

2. COMPREHENSION MCQs.
 137. The question to ask in order to determine the facility status of an item of
expense is:
(a) Did the employer intend to deduct its value from wage?;
(b) Would the worker have necessarily spent a portion of his wage on
the item?;
(c) Is the item needed by the worker and his family?;
(d) Does the employer have a Facility Evaluation Permit?

Update: Requisites of a valid facility deduction

In order for the deduction of the value of a facility to be valid, (1) the
amount must be reasonable, (2) the facility must be customarily given;
and
(a) x x x
(b) y y y
(c) z z z
(d) the workers must voluntarily accept it in writing.
(SIL Int’l Cables Specialist, et al. vs. NLRC, et al, March 2, 2011)

138. It is the money delivered to Justice Dimaampao for his MCQ services.
(a) wage;
(b) salary;
(c) fee;
(d) pay.

3. APPLICATION MCQs.

139. The solidary liability of a principal to a worker whose rights have been
violated by the former’s job contractor extends to –
(a) backwages;
(b) unpaid wages;
(c) violation of safety laws;
(d) SSS coverage.

140. Nico filed a money complaint with the Office of the Labor Arbiter. Which
of the following claims can be doubled under the Double Indemnity Law?
(a) unpaid wages;
(b) unpaid 13th Month Pay;
(c) unpaid holiday pay;
(d) unpaid overtime pay.

141. The following must be settled with legal tender.

(a) payment for a piece of work;
(b) payment for a piece of advice;
(c) payment for appearance fee of a company lawyer;
(d) payment for the honorarium of a guest lecturer.

142. Which of the following should be considered in computing 13 th Month

Pay?
(a) P350.00 daily wage;
(b) P350.00 commission;
(c) P350.00 overtime pay;
(d) P350.00 overload pay.

4. ANALYSIS MCQs.

Mother MCQ on Wage Distortion

143. A wage distortion obtains when –

A - (1) a wage order, CBA renegotiation or merger of
companies;
(2) wage law;

Eliminates or compresses the –

 B - (1) wage advantage;
(2) wage rate;

Enjoyed by a ________ over another.

C - (1) wage group;

(2) more ranking worker.

In sum, there is a wage distortion in the following:

(a) A (1); B (1); C (1);
(b) A (2); B (2); C (2);
(c) A (1); B (2); C (1);
(d) A (2); B (1); C (2).

144. In 2008, Fuji had both regular and casual workers receiving different pay
rates. In 2010, all its employees became regular. Because of the
uniformity in pay, those who used to receive more complained of wage
distortion and demanded restoration of the lost wage gap. Decide.
(a) wage distortion is inter-wage group; hence, there is no wage
distortion to adjust because all of the workers are regular;
(b) the old regulars must receive more than the new regulars;
hence, Fuji should sub-classify its regular workers to avoid diminution of
benefits;
(c) there is a rational basis for adopting a wage structure under which
the old regulars should be paid a higher wage rate, viz., length of service;
(d) Fuji should grant an across the board increase to the old regulars
as a measure of equity.

5. SYNTHESIS MCQs.

145. An OFW whose salaries are not paid at all, or paid at irregular intervals,
may quit his work. Thereafter, he can sue his employer for constructive
dismissal because -
(a) violation by his employer of Philippine wage law makes his
continued employment impossible;
(b) the non-payment or irregular payment of his salaries makes his
continuing employment prejudicial to him;
(c) his employer commits an inhuman and unbearable act towards
him;
(d) his employer commits a crime against him under the Double
Indemnity Law.

146. The Labor Arbiter awards 10% attorney’s fee to Martin who sued Texas
Instruments to recover unpaid salaries and other benefits. This fee
belongs to:
(a) Martin’s lawyer because he is the attorney;
(b) Martin because it is awarded to him, not to his lawyer;
(c) Martin’s lawyer because he is behind Martin’s legal success;
(d) Martin because the fee is a species of civil damages.

147. The estate of Miguel, which succeeded to his business, is insolvent and
cannot meet all outstanding obligations with its remaining assets. The
unpaid creditors are as follows: Funeraria Paz, the government, a
mortgagee and Michelle who was Miguel’s private nurse who attended to
him until his death. Is it true, as provided by Article 110 of the Labor
Code, that Michelle should get paid first?
(a) No. Article 110 does not mean what it says; hence, it should be
stricken off;
(b) No. Article 110 of the Labor Code cannot amend the New Civil
Code which positions Michelle at 6th, 3rd and 2nd places only;
(c) No. The unpaid claims of the government and the mortgagee are
special preferred credits;
 (d) No. Michelle can be paid ahead of Funeraria Paz whose claim is an
ordinary preferred credit but not the government and the
mortgagee who enjoy liens.

148. The following is the textual provision of Art. 110 of the Labor Code.
Arrange its parts according to their order of appearance in the Labor
Code:
I - any provisions of law to the contrary
notwithstanding
II - in the event of bankruptcy or liquidation of an
employer’s business
III - his workers shall enjoy first preference as regards
their wages and other monetary claims
IV - such unpaid wages and monetary claims shall be
paid in full before claims of the government and other creditors
may be paid.

(a) I, II, III & IV;

(b) I, III, IV & II;
(c) II, III, I & IV;
(d) II, III, IV & I.

6. EVALUATION MCQs.

Mother MCQ on Art. 106 – 109 (D.O. 18-02)

149. BPL Architects, Builders & Groundpacers, which constructs buildings in

Baguio City, is:
A - (1) a job contractor;
(2) an independent contractor

Because it is substantially capitalized; works on its own account; works

independently of its clients; and uses its capital in performing or
completing its work – unless:

B - (1) it is not registered with the DOLE;

(2) it has no investment in the form of tools, equipment,
machineries or work premises;
In which case it is:

C - (1) a labor-only contractor;

(2) presumed as a labor-only contractor.

It is correct to posit as follows:

A B C

(a) 1 1 2;
(b) 2 2 1;
(c) 2 1 2;
(d) 1 1 1.

D
Special Groups of Workers

1. KNOWLEDGE MCQs.

Minors.

150. Under the Labor Code, a minor below ______ cannot be

employed.
A - (1) age 15;
(2) age 18;
 However, under R.A. 9231 he can be employed in essential public
entertainment, or information, or advertisement; provided, that –
B - (1) his employer is his parent/s, or guardian;
(2) he is not exposed to hazardous or deleterious
conditions.

A rule in the employment of minors is:

(a) A (1); B (2);
(b) A (2); B (1);
(c) A (1); B (1);
(d) B (2); B (2).

Women.

151. Women workers are protected against discrimination by reason of their

pregnancy by the Labor Code, specifically by:
(a) Art. 135;
(b) Art. 136;
(c) Art. 137;
(d) Art. 138.

Homeworker.

152. Under D.O. 5, s. 1995, an industrial homeworker is entitled to

compensation, security of tenure, self-organization and ____________.
(a) normal hours of work;
(b) peaceful concerted activity;
(c) SSS coverage;
(d) overtime pay.

1. COMPREHENSION MCQs.

Mother MCQ on RA 7877.

153. Under the law,

1. a crime is committed in a work, education or training environment;
2. when a priest, pastor, teacher, employer, trainor or co-employee
with moral ascendancy, influence or authority;
3. demands, requires or requests for sexual favor from another in
exchange for the following :
3.1. in a work environment: employment, continued
employment, re-employment or other consideration;
3.2. in an education or training environment: grade, allowance,
stipend, honors, scholarship or other consideration;
4. with the victim either accepting or rejecting the sexual advance/s;
5. resulting in his/her work, education or training environment
becoming hostile, offensive or intimidating.

The crime defined and punished is:

(a) child abuse;
(b) sexual harassment;
(c) unjust vexation;
(d) acts of lasciviousness.

Hypothetical MCQ:

Which of the following acts would potentially expose the texter to a charge for
sexual harassment?

A - (1) Teacher to his student: “Ligo U, Pass U Me!”;

- (2) Boss to his secretary: “Tuwad U, Puppy Love Me!”;
- (3) Priest to his sacristan: “Luhod U, Tayo Me!”;
- (4) Widow to her driver: “ Bilis U, Uhaw Me!”
 Why?

B - (1) because there is an implied requirement for sexual

favor in exchange for a grade;
- (2) because the boss has authority and he wants to
have dorsal sex with his secretary;
- (3) because the priest has moral ascendancy and he
wants his sacristan to perform oral sex on him;
- (4) because the widow has ascendancy over her driver
and she is sex starved already.

Answer:

(a) A (1) & B (1);

(b) A (2) & B (2);
(c) A (3) & B (3);
(d) A (4) & B (4).

Domestic Worker & Homeworker.

154. Stem: Domestic worker: Ministration; Homeworker: _____________.

Options:
(a) replication;
(b) reproduction;
(c) invention;
(d) fabrication.

2. APPLICATION MCQs.
Women.

155. Which of the following employment policies is valid?

(a) In the Hiring Manual of The Virgins for Christ Mission, Inc.: “Only
single women shall be hired as clerks.”;
(b) In the Manual for Employees of the San Pablo Seminary: “Any
female teacher who develops amorous relations with a seminarian or
priest and thereafter marries him in civil rites shall be dismissed.”;
(c) In the Code of Discipline of Jolibee: “Employees of this company
shall not marry employees of McDonalds.”;
(d) In the Book of Life of the Sisters and Workers of the Assumption: “
No kitchen girl shall marry any of the drivers of this Convent to avoid in-
house breeding. A violation of this rule shall justify outright dismissal
from service.”

Women.

156. In a case, a dismissal grounded on absenteeism is assailed for being an

act of discrimination against a pregnant woman. Medical certificates are
submitted by the woman to justify her absences. She was then pregnant
and had to have medical check-ups for which she was issued
corresponding medical certificates. However, the dates of her absences
and those appearing on said certificates have discrepancies. Would you
dismiss her complaint?
(a) Yes. Her absences constitute serious misconduct; hence,
she could be dismissed;
(b) Yes. Her unexplained absences amount to gross and
habitual neglect of duty, a just cause for dismissal;
(c) No. Her absences are all pregnancy-related; hence, she was
discriminated against by reason of her pregnancy;
(d) No. Her evidence generates a doubt; hence, the same shall be
resolved in her favor.

3. ANALYSIS MCQs.
 Women.

157. Which of the following does NOT constitute sexual harassment:

(a) After her job interview by the manager, a pretty applicant named Mandy
was asked by a male co-applicant “Do you have a boyfriend?” She
replied “I am engaged to Piolo Pascual.” Then he said “You’re cute. Does
he perform like a stallion?” She answered “He is a saint.” Overhearing
this conversation, the manager approached her and said “You are
qualified. Would you follow me inside my office so I may explain the
terms of your employment contract before you sign it?” Once the
applicant was inside said office, the manager played his DVD copy of Dr.
Hayden Kho and Katrina Halili having sex for her to watch.
(b) During a basketball practice at the St. Luke’s University, the coach
approached one of the lady players named Abegail and told her “Making
3 points is an art.” While looking between her legs, he continued
“Imagine you are the ring and I am the ball. You will hold me tight.
Sometimes you will press me against your mouth. Sometimes you will
hold me in front of your womanhood. If you do not want a steal, you will
have to put me between your legs. Do not dribble a lot. Just stay on top
of the situation. When shooting, put your imagination to use. Lubricate
that ring with your thoughts of a slippery hole. Then release me.”
Having said that, he held her on her waist. Then looking at her beautiful
face like a drooling German shepherd, he wet his lips with his tongue and
said “I will make you the team captain if you practise that technique on
me in a Victoria court. ”
(c) During recitation in Social Legislation, the instructor asked a virgin
student this question “Before your journey into this 2-hour recitation, I’d
like you to satisfy my curious mind first. I’ve been told by your classmate
Naira that you are a virgin from birth. Is this true?” The student named
Diva blushed like a fresh cherry and was silent for the next 15 seconds.
“Ah, silence means yes”, the instructor said in a seductive tone. While
looking at another beautiful student, he spoke these words for Diva to
hear “Don’t you know that virginity causes insanity?” The other student
signaled to Diva to sit down and let her deal with the instructor. She then
said “Sir, first of all I am not insane. I believe Diva has not even
experienced puppy love.” Upon hearing this, the naughty instructor
asked her “By puppy love, do you mean dog style love?” She replied “Sir,
I will give you a perfect performance evaluation if you give me puppy
love.”
(d) Told that the cessation of her employment was by reason of failure to
qualify, a probationary employee asked why she was not accorded due
process. Her superior told her that there was no need for notices
because she was apprised of the standards for regularization upon her
engagement, and that her receipt of the company rules performed the
function of due process. She asked her superior what she could do in
order to keep her job. The latter said there was nothing she could do to
stay. But at 6.30 p.m. that day, he texted her. The following is the
exchange of text messages between the two:

09219778333 - Hi
09165995537 - Hu u?
09219778333 - RG
09165995537 - Sir Ronnie? Hi 2. Wats up?
09219778333 - Nothing rili. Jst rmemberd ur prblm. 8’s the
cnsequenc of that 2007 PDI ruling. R u ok dr? Y don’t we go 2 dinr 2 tok abt 8?
09165995537 - Am nt sur, sir. My bf myt aryv anytym nw.
09219778333 - I jst realyzd I cn actualy do smting abt ur
pr4manc evaluation rating. I cn rctify 8 so dat u cn b rgularizd.
09165995537 - Rili? Wl u do dat 4 me, sir?
09219778333 - Sur. Drs a new motel alng mrcos hi- way. My
frnd rhanie rama 2ld me it’s a gud place. Its cald holywud. I’l fetz u @ 7.30, k?
09165995537 - K, lovr boy. Rili rili nid my job. C ya.
ummmwah!!!
4. SYNTHESIS MCQs.

Minors.

158. Karla was born on 12 February 1989. Tall and well endowed for her age,
she would physically freeze when sensing danger tho. On 20 January
2009, her swimming instructor followed her inside the dressing room. He
told her “Your pubic hair is protruding. We have to shave it.” He then
slowly pulled the towel wrapped around Karla’s tender body. Instead of
shaving her, he started doing lip service to her maidenhood. He did not
stop there. He also removed her bra and started nibbling on her twin
peaks. While doing this, he told her that boyfriends and girlfriends did
what they were doing. He did not stop there. He took her hand and put it
on his manhood and told her “If your boyfriend does this to you, tell him
not to enter you.” Then he left Karla. The following day, she had to see
him in order to return a book she had borrowed from him. On that
occasion, she told him that she was very disturbed by what he did to her
the day before. He said “Kiss my lips and your trouble will fly away,
never to return anymore. It will be like a sour note. Struck, it escapes to
thin air forever.” Then he pulled her young body against his’ and kissed
her lips. What offense was committed by the swimming instructor?
Explain by assembling maximum of 5 from the following phrases and
sentences.

1. the swimming instructor committed sexual harassment

2. the swimming instructor committed child abuse
3. by a person with moral ascendancy, influence or authority over another
4. sexual harassment is committed in a work, education or training
environment
5. the offender performs sexual intercourse or acts of lasciviousness
6. the offended party is less than 18 years of age
7. such demand , request or requirement may be rejected or accepted
8. he/she is engaged in prostitution or is subjected to abuse
9. who demands, requests or requires sexual favor
10. the offender offers employment, continued employment, re-employment
or othe consideration in exchange for such favor
11. or promises grade, allowance, stipend, honors, scholarship or other
consideration
12. child abuse is committed when
13. however, even if the victim is more than 18 years of age, child abuse
may still be committed if, as in this case of Karla who is 19, he/ she is
incapable of full self-protection
14. its result is a work, education or training environment that becomes
hostile, offensive or intimidating, especially in the event of a rejection

The correct answer is:

(a) 2 - 12 – 6 – 8 – 5;
(b) 1 - 4 - 3 - 9 - 7;
(c) 2 - 12 – 10 – 5 - 11;
(d) 1 - 4 - 3 - 6 - 14;

Domectic Worker.

159. Lorna, an OFW domestic worker, was illegally repatriated. She should be
awarded (salaries; indemnity; both). Justify.
(a) salaries because Sec. 10, R.A. 8042, as amended, requires this
relief;
(b) indemnity because Art. 149, P.D. 442, requires this relief;
(c) both because P.D. 442 requires these twin reliefs;
(d) both for violation of security of tenure as to the salaries, and
violation of contract as to the indemnity.

5. EVALUATION MCQs.
 Women.

160. In his class in Labor Standards Law, Bee Gee Kei observed that one of his
female students was always eating. He suspected that she must have
been conceived during the time the movie “Anaconda” was being shown.
In order to stop her eating habit, Bee Gee Kei made it a point to require
his student to recite every meeting. One day, before class could start,
he spotted her buying food again from the school store. He approached
her and warned her as follows: “ Kung kakain ka, kakainin kita!”
Immediately, she ran to the Office of the Law Dean and complained of
sexual harassment. The Dean should -
(a) disregard the complaint for being baseless, there being no
demand, request or requirement for sexual favor;
(b) require explanation from Bee Gee Kei and personally resolve
the case thereafter;
(c) refer the complaint to the school’s Committee on Decorum and
Investigation;
(d) require the student to explain why she should not be expelled
for bringing a baseless complaint against an innocent professor.

E
Labor Procedure
(Articles 128 & 129)

1. KNOWLEDGE MCQs.

Mother MCQ on Jurisdiction.

161. The
A - (1) Regional Director;
(2) Labor Arbiter;

Has jurisdiction over an aggregate individual money claim not

exceeding P5,000.00 if said claim

B - (1) has a reasonable causal connection to

employer-employee relationship;
- (2) is between an employer and an employee;

Provided, the money issue brought is resolvable by

C - (1) reference to Labor laws, like Art. 100, PD 442;
(2) reference to the evidence, like a contract.

The Regional Director’s jurisdiction over a worker’s money

claim, therefore, is determined as follows:

A B C

(a) 1 1 1;
(b) 1 1 2;
(c) 1 2 1;
(d) 2 1 2.

162. It is the power granted to the DOLE Regional Director under Art. 128, PD
442.
(a) enforcement power;
(b) adjudicatory power;
(c) closure power;
(d) suspension power.

1. COMPREHENSION MCQs.
 163. The DOLE RD’s visitorial and enforcement powers may be distinguished
as follows:

Visitorial Power Adjudicatory Power

1. Extent Money claims, and health & Money claims only

satefy issues
2. P5,000 Not applicable Applicable
3. Closure or Can be ordered Cannot be ordered
suspension
4. Appeal DOLE Sec. (10 days) NLRC (5 days)
5. Appeal Bond Not available Available
(motion to reduce)

(a) 1, 2, 3, 4 & 5 are CORRECT;

(b) 1, 2, 3 & 4 are CORRECT; 5 is INCORRECT;
(c) 1, 2 & 4 are CORRECT; 3 & 5 are INCORRECT;
(d) 1, 2, 4 & 5 are CORRECT; 3 is INCORRECT.

164. The DOLE RD may be ousted of his visitorial power by:

(a) showing loss of employer-employee relationship any timeafter he
has acquired jurisdiction;
(b) raising issues supported by documentary evidence which were not
considered during summary inspection;
(c) pointing out that the individual aggregate money claim exceeds
P5,000.00;
(d) showing that no formal complaint was filed.

2. APPLICATION MCQs.

165. In the event an employer appealing a decision rendered by either the

Labor Arbiter or the Regional Director exercising adjudicatory power
has no sufficient money with which to post as appeal bond -
(a) he can perfect his appeal by submitting a motion to reduce the
appeal bond which motion must be accompanied with a reasonable
bond;
(b) he can still file his appeal by submitting a motion to reduce the
appeal bond which motion must be accompanied with a reasonable bond;
(c) he can move for extension of time to perfect his appeal;
(d) he can move for exemption from posting appeal bond in the
interest of substantial justice.

166. An employer disadvantaged by a compliance order issued by the Regional

Director exercising visitorial power can dodge compliance by -
(a) appealing within 10 days to the DOLE Secretary;
(b) raising issues supported by documentary proof which the
representatives of the Regional Director failed to consider during
summary inspection;
(c) questioning jurisdiction due to loss of employer-employee
relationship following assumption of jurisdiction;
(d) questioning jurisdiction due to lack of a complaint.

Note: How to oust RD of jurisdiction based on issues.

First: Employer must contest the findings of the RD’s inspectors.
The following are not considered acts of contesting: (a)
motion to dismiss for lack of jurisdiction; (b) serious disagreement.

Second: The documentary proof is unverifiable in the course of

summary inspection. The following are verifiable: (a) payroll
sheets; (b) BIR forms; (c) other documents an employer is
required to keep. But facts upon which proper interpretation of a
wage order can be made are unverifiable.

3. ANALYSIS MCQs.
 167. The DENR ordered the closure of the Baguio Gold Mining Co. due to its
violation of anti-pollution laws. As a consequence, its miners could
not work and lost their wages as a result. Is the company under
obligation to restore their lost wages under Art. 128, PD 442?
(a) Yes, because the closure and consequent loss of wages can be
attributed to the fault of the company;
(b) No, because the closure must be ordered by the DOLE Regional
Director for the obligation to restore lost wages to attach;
(c) Yes, because the obligation to compensate for losses can be
compelled outside PD 442;
(d) No, because what the law does not include (DENR) is deemed
excluded.

168. Visitorial power is exercisable over establishments, not over particular

workers. Therefore,
(a) the DOLE RD need not receive a verified complaint to exercise it;
(b) workers adversely affected by his decision need not appeal as the
same is automatically deemed appealed;
(c) less than all of the affected workers may verify their appeal from
his decision;
(d) a decision according relief to all affected workers, including those
who did not appeal, is proper.

Note: If RD issues an order referring a case to the LA for lack of

jurisdiction, his order does not dispose the case on the merits; hence, res
judicata does not result even if the order exceeds 10 days.

PART FOUR
SOCIAL LEGISLATION

KNOWLEDGE MCQs.

Mother MCQ on SSS.

169. The State shall evolve, develop, perfect and promote a Social Security
System that is –
A - (1) sound, viable and tax-exempt;
(2) self-reliant; responsive and equitable;

In order to promote social justice and ________

B - (1) the protection of members and their dependents;
(2) as police power measure to safeguard workers;
Against the hazards of –
C - (1) maternity and other contingencies;
(2) paternity and other contingencies;
Resulting in loss of income or _______.
D - (1) financial burden;
(2) impairment of earning capacity.

In other words, the following is the policy of the Social Security Act of
1997:
(a) A (1); B ( 1); C (2); D (2);
(b) A (2); B ( 2); C (2); D ( 1;
(c) A (2); B ( 1); C (1); D (2);
(d) A (1); B ( 1); C (1); D (1).

170. SSS coverage is compulsory as to the following, save:

(a) employers;
(b) employees who are not over 60 years old;
(c) self-employed and domestic workers earning not less than
P1,000.00 per month;
(d) employees of foreign governments and international organizations.
COMPREHENSION MCQs.

171. Some of the following propositions are True, while the others are False.

1. Purely casual employees are covered by the SSS;

2. R.A. 7877 is a social legislation;
3. R.A. 8282 is a penal law;
4. Social legislation applies only when there is employer-employee
relationship;
5. Land reform is broader than agrarian reform;
6. Just compensation is the same as disturbance compensation;
7. A worker under compulsory SSS coverage can refuse the deduction of his
contribution from his salary;
8. Sickness benefits are in the nature of income replacement; therefore,
they are subject to income tax;
9. The SSS can invest the Reserved Fund in GOCCs in order to earn income;
10. A rape victim will likely become a solo parent if the crime results in her
pregnancy, as long as her rapist is convicted of rape by final judgment.

Which group of propositions includes all the False ones:

(a) 2 - 3 - 6 - 7 - 8 - 9 - 10;
(b) 1 -2 - 3 - 4 - 5 - 6 - 7;
(c) 1 - 4 -6 - 7 - 8 - 9 - 10;
(d) 4 - 5 - 6 - 7 - 8 - 9 - 10.

ANALYSIS MCQs.

172. Riza writes a column on women’s rights for Manila Bulletin (MB) under its
Lifestyle Section. She is required to submit her articles 3 days before
publication. MB has the right to shorten her articles, not to mention that
it can reject some of her articles, like one entitled “Of Priests, Guns and
Convent Girls: Where Have All the Good Priests Gone?” Riza also writes
for other national papers, not to mention that she works for several
women’s groups for compensation. Is the MB required to report Riza for
SSS coverage?

(a) No. Riza is not economically dependent on MB; hence, no

employer-employee relationship exists between them;
(b) Yes. Riza is under the control of MB; hence, there exists
employer-employee relationship between them;
(c) No. Riza is purely casual because her work is not necessary or
desirable to the usual trade of MB;
(d) Yes. MB is economically dependent on Riza because if she does
not write articles for MB then its circulation would be affected.

SYNTHESIS MCQs.

173. Who of the following may be covered by the SSS thru an administrative
agreement?
(a) employees of the International Manpower Services;
(b) employees of a German GOCC registered under German private
law ;
(c) employees of the US Embassy;
(d) employees of a foreign vessel hired while said vessel is in
international waters.

174. Which of the following claims of a worker compulsorily covered by the

SSS can be validly denied on the ground of intoxication?
(a) sickness benefits;
(b) maternity benefits;
(c) death benefits;
(d) cash income benefit.
 175. Today is 21 January 2010. Ruffa Mae is sick and needs confinement at a
hospital for 15 days. Her sick leaves under the CBA have been
exhausted. Her employment record shows: (1) that her highest monthly
salaries are as follows: December 2008 – P16,000.00; January 2009 –
P15,000.00; February 2009 – P13,500.00; March 2009 – P14,500.00;
June 2009 – P14,000.00; July 2009 – P15,000.00; August 2009 –
P15,500.00; and October 2009 – P15,000.00. (2) that she has paid 4
monthly contributions between January 2009 and December 2009. If
her actual period of confinement is maximum of fifteen (15) days, she
would be entitled to sickness benefits of so much. The amount can be
arrived at as follows:

(a) i. add the 6 highest monthly credits during the 12-month period
immediately preceding the semester of contingency;
ii. divide their sum by 180 days to arrive at Average Daily Rate
(ADR);
iii. multiply the ADR by 90%;
iv. multiply the result by 15 days.

(b) i. select the highest monthly salary during the 12-month period
immediately preceding the semester of contingency;
ii. divide it by 30 days to get the ADR;
iii. multiply the ADR by 90%;
iv. multiply the result by 15 days.

(c) i. get the average of the 6 highest monthly salaries during the 12-
month period immediately preceding the semester of contingency;
ii. divide the sum by 180 days to arrive at the ADR;
iii. multiply the ADR by 100%;
iv. multiply the result by 15 days;

(d) i. get the average of all the salaries earned during the year
immediately preceding the semester of contingency;
ii. divide the sum by 365 days to arrive at the ADR;
iii. multiply the ADR by 90%;
iv. multiply the result by 15 days.

EVALUATION MCQs.

176. Piolo sells goods, articles and materials to Pasky for the latter to process
or fabricate into farm tools at home. If Piolo is satisfied with the
craftsmanship of Pasky, he pays for the finished products; otherwise,
Pasky has to redo them hoping Piolo would buy them. Is Piolo under
obligation to report Pasky for SSS coverage?
(a) Yes, because Pasky is the homeworker of Piolo who is required
by D.O. 5, s. 1995 to report the former for SSS coverage;
(b) No, because Pasky is a businessman in his own right who buys raw
materials from and sells finished products to Piolo;
(c) Yes, because it is uncertain whether there is employer-employee
relationship between Piolo and Pasky; hence, RA 8282 should be
construed in favor of Pasky;
(d) No, because Piolo does not control Pasky’s means and methods;
hence, he is not Pasky’s employer.

Version 1

177. Victor, an SSS member, separated from his legal wife Suzan with whom
he had a child named Cesar who died when he was 4 years old. His wife
cohabited with Henry, while he cohabited with Suzie and then with Sugar.
With Suzie, he had 2 children named Aldrin and Alfred. With Sugar,
he fathered Byron and Brenda. Victor died and death benefits were
claimed right after his interment as follows:
 1. By Suzan who claimed that she was the legal spouse of
Victor;
2. By Suzie, with her 2 children (now 22 and 24), who produced a
marriage contract between her and Victor; and
3. Byron and Brenda, 15 and 17 years old, respectively,
claiming that they were the illegitimate children of Victor, who were un-
employed and unmarried.

Who is/are qualified to get the death benefits?

(a) Suzan because she is the legal spouse of Victor;

(b) Suzie because she contracted marriage with Victor, the same not
having been nullified yet;
(c) Aldrin and Aldred because they are illegitimate children of Victor,
of legal age and can sign SSS claim documents, unmarried, and
unemployed;
(d) Byron and Brenda because they are illegitimate children of Victor,
below 21, unmarried and unemployed.

Version 2.

178. Francisco, married to Francisca with whom he had a child who died at age
2, was an SSS member. After his wife eloped with Franco, he contracted
marriage with Frances in Maguindanao by bribing the Civil Registrar and
the officiating judge. With her, he fathered 2 children named Fran Fran
and Ces Ces, now 22 and 24 years old respectively. Not to be outdone by
his wife, he took in a second paramour Fran Marie with whom he fathered
2 children named Francisco, Jr. and Marie France. Before he could father
a child with his third paramour, he died of a heart attack. Who is entitled
to death benefits?
(a) Francisca because she is the legitimate spouse who became a
widow and who has not re-married;
(b) Frances because although their marriage is void, it remains valid
until annulled;
(c) Fran Marie because, although a live-in partner, she was the one
who lived with and was dependent on Francisco at the time of his death;
(d) Any of the other children of Francisco as long as they are under
21, unmarried and unemployed at the time of his death.

179. In case of sickness or disability, an employee under compulsory SSS

coverage is entitled to additional and separate Employees Compensation
(EC) benefits. Save for one (which must be encircled), the following are
such additional benefits:
(a) Medical assistance;
(b) Rehabilitation assistance;
(c) Cash income benefit;
(d) Survival allowance.

GSIS & Employees Compensation Act

KNOWLEDGE MCQ: Mother MCQ

180. Death or disability arising from disease is compensable if –

A - (1) there is proof of reasonable work connection;
(2) the disease is listed in Annex “A”, ECA;

Even if not an occupational disease, the resulting death or disability

is compensable if -
B - (1) work connection is established with substantial
evidence;
(2) it is difficult to establish work connection;

Likewise, death or disability arising from injury is compensable if the

contingency occurs –
 C - (1) at the workplace of the member, while he is
performing his work;
(2) anywhere, while the member is performing part of
his work;

Even if the contingency occurs outside the workplace of the member, his
resulting death or disability would still be compensable if –
D - (1) there is a reasonable connection between his absence
from his place of work and his presence at the place of
contingency;
(2) he is going to, or coming from his work.

In other words, compensation for death or disability arising from disease

or injury is required in the following:

A B C D
(a) 1 1 1 1
(b) 1 2 1 2
(c) 2 2 2 2
(d) 2 1 2 1

ECA

181. Submissions:

1. SSS benefits are provided by R.A. 8282; whereas, EC benefits

are provided by P.D. 442;
2. the basis of SSS benefits is employer-employee relationship;
whereas, the basis of EC benefits is work-connection;
3. SSS contributions are paid for by both employer and employee;
whereas, EC contributions are paid for by the employer only;
4. SSS claims can be denied for reasons that reportorial and
other preconditions have not been complied with; whereas, EC claims
can be denied on grounds of drunkenness; willful intent to injure or kill
oneself or another; and notoriousness negligence.

It is correct to posit that -

(a) 1, 2, 3 and 4 are True;

(b) 1, 2 and 3 are True; whereas, 4 is False;
(c) 4, 3 and 2 are True; whereas, 1 is False;
(d) 4, 3, 2 and 1 are false.

APPLICATION, ANALYSIS & EVALUATION MCQs.

182. Nitura, a soldier, was dispatched by his commander to locate his fellow
soldiers. He had to cross a wooden bridge to reach a town adjoining the
town where his detachment had encamped. On his way back to camp, he
fell off the same bridge and died. A death claim was filed but the GSIS
denied it because his death occurred outside his place of work. Decide.

(a) I will reverse the GSIS because a soldier is deemed on 24-hour

duty, unless on official leave at the time of his death;
(b) I will reverse the GSIS because Nitura was under instruction by his
commander to travel outside his place of work;
(c) I will reverse the GSIS because the policy of social legislation is to
give compensation;
(d) I will reverse the GSIS because there is a reasonable connection
between the absence of Nitura from his assigned workplace and his
presence at the place of his death.
 183. De la Rea, a soldier on approved leave, was shot with a .45 caliber upon
alighting a passenger jeepney. His widow filed a death claim which the
GSIS denied. Decide.
(a) I will sustain the GSIS because the 24-hour duty rule does not
apply when a soldier is on official leave;
(b) I will sustain the GSIS if De la Rea really died of the gunshot, not of
other causes;
(c) I will reverse the GSIS on condition that all the documentary
requirements have been complied with;
(d) I will reverse the GSIS in view of the Utmost Liberality Rule which
favors compensation.

184. Rogrin, an intelligence officer, received a mission order from his superior
to mobilize his men to arrest certain criminal elements on Kennon Road,
Baguio City. On their way to said place, he received reliable information
that the criminals had relocated to Green Valley, Tuba, Benguet. He then
changed route via the Lexber Heights Subdivision. At one of the gates of
said subdivision, Rorgrin had an encounter with a security guard who shot
him to death. A death claim was filed. It was denied by the GSIS
because Rogrin died outside the place stated in his mission order. Why
should the GSIS be reversed?
(a) the policy of social legislation is to compensate; hence, the Utmost
Liberality Rule should be applied;
(b) the policy of the law is to protect all workers; hence, the Liberal
Interpretation Rule should be applied;
(c) Section 3, Article XIII of the Constitution does not distinguish
between workers in the private and public sectors; hence, the Full
Protection Clause should be applied;
(d) the 24-hour Duty Rule applies to Rogrin; hence, the death claim
should be allowed.

Limited Portability Law

KNOWLEDGE MCQ: Mother MCQ.

186. Under the Limited Portability Law, which of the following is deemed
portable?
A - (1) contributions;
(2) creditable service;
(3) both;

Portability means –
B - (1) a member brings with him his contributions from one
system to another;
(2) a member brings with him his creditable service from
system to another;
(3) both;

Or if employed in both systems, his contributions and creditable service

in both systems are –
C - (1) totalized;
(2) tacked;
(3) commuted;

But only if –
D - (1) he is not entitled to retirement, survivorship, disability
and other benefits due to lack of length of service in the system under
which he claims;
(2) the contingency occurs before his transfer from one
system to another;
(3) the system which owes him certain benefits lacks
funds.
 In other words, totalization and/or tacking of creditable service
operates as follows:

A B C D
(a) 1 1 1 1;
(b) 2 2 2 2;
(c) 3 3 2 1;
(d) 3 3 1 3.

APPLICATION, ANALYSIS, EVALUATION MCQ.

187. In 1963, Gamogamo joined the DOH as a Dental Aid. In 1967, he was
appointed Dentist I. After 14 years, he resigned to join Luseveco, a
private company. Later. Luseveco was absorbed by PNOC. Subsequently,
the latter offered a retrenchment package consisting of 2 months salary
for every year of service. Gamogamo applied for retrenchment but his
application was denied. So he continued working until he retired. He was
paid retirement benefits consisting of 1 month salary for every year of
service. While in retirement, he found out that 2 of his former co-
employees were retrenched and paid 2 months salary for every year of
service. He sued for additional retirement benefits invoking the
totalization law, i.e., he wanted his years of service with GSIS and SSS to
be combined and to be multiplied by 2 months salary. Decide.
(a) his claim should be denied because he was able to claim
retirement benefits from PNOC;
(b) his claim should be denied because he would have been entitled to
certain GSIS benefits in view of his 14 years of service;
(c) his claim should be denied because he waived totalization when he
accepted his retirement benefits from PNOC;
(d) his claim should be denied because whatever claim he had under
the GSIS has prescribed already.