Quiz 1

Question 1
25 / 40 pts
OBOSEN, is a government owned and controlled corporation with an original charter with the
mandate to develop better medicines for the Philippines. OBOSEN is headed by its President Mr.
Dirty. OBOSEN rented an office in Makati and hired janitors for maintaining the cleanliness of
the office. One of the janitors hired was Mr. Clean. After 25 years of hard work, Mr. Clean
became the Vice-President of the Research Department of OBOSEN, which is considered as a
corporate officer under its charter.
a) Is Mr. Dirty covered by the provision of the Labor Code? (10%)
b) Is Mr. Clean covered by the provisions of the Labor Code? (10%)
c) Suppose OBOSEN was established in accordance with the Corporation Code, will your
answer in (a) and (b) be the same? (20%)

Your Answer:
a. Mr. Dirty is not covered by the Labor Code. 
Employees of Government owned and controlled corporations (GOCC) created by special or
original charter are among the exceptions for the applicability of the Labor Code (Article 6,
Labor Code). And as a rule, employees of GOCCs created by special or original charter are
governed by the Civil Service Law.
Here, Mr. Dirty, is the president of OBOSEN, a government owned and controlled corporation
with an original charter.
Hence, Mr. Dirty is not covered by the Labor Code.
 
b. Mr. Clean is not covered by the Labor Code. 
As a rule, if a Government owned and controlled corporation is created by a special or original
charter, its employees  are governed by the Civil Service Law. and not by the Labor Code.
Further, employees of Government owned and controlled corporations (GOCC) created by
special or original charter are among the exceptions for the applicability of the Labor Code
(Article 6, Labor Code).
Here, Mr. Clean, a then janitor, is now the Vice-President of the Research Department of
OBOSEN, a government owned and controlled corporation with an original charter.
Hence, he is not covered by the Labor Code.
 
c. No, my answer will not be the same.
If OBOSEN is established under the Corporation Code, both Mr. Dirty and Mr. Clean will be
covered by the Labor Code. 
As a rule, the Labor Code applies to employees of GOCCs created under the Corporation Code.
Here, both Mr. Clean and Mr. Dirty are employees of OBOSEN, which is a GOCC established
under the Corporation Code.
Therefore, they will then both be covered by the Labor Code.

Question 2
10 / 10 pts
Company XYZ hired A as a waiter in their restaurant. In their contract, it was not clear whether
A was entitled to a company benefit that gives employees a 20% discount in the restaurant where
they are employed. A’s stand is that he is entitled because doubts must be resolved in favor of
labor.
Company XYZ however argued that the provision under Article 4 of the Labor Code which
provides that “all doubts in the implementation and interpretation of the provisions of this Code,
including its implementing rules and regulations, shall be resolved in favor of labor.” is only
applicable to the Labor Code and its implementing rules and regulations and not to other
contracts.
a) Rule on the argument of Company XYZ. (10%)

Your Answer:
a. The argument of Company XYZ is not correct.
Artcile 1702 of the Civil Code provides that in case of doubt, all labor legislation and all labor
contracts shall be construed in favor of the safety and decent living for the laborer.
Here, the doubt stems from the contract between Company XYZ and A where it was not clear
whether A is entitled to the company benefit. 
Applying Article 1702, A is entitled to that benefit since all labor contracts are construed in favor
of the decent living of the laborer.

Question 3
2 / 10 pts
Enumerate the rights under Labor Standards enshrined in the Protection to Labor Clause
provided in the Constitution. (10%)

Question 4
10 / 10 pts
Explain briefly the principle of “non-oppression.” (10%)
Your Answer:
The principle of non-oppression states that neither capital nor labor shall act oppressively against
the other, or impair the interest or convenience of the public. This means that the labor contracts
should not impair the rights of the laborer and it must be subject to different laws on labor. But
just as much as the capital should not impair the rights of the laborer, the protection to labor
clause in the Constitution is not meant also to destroy nor oppress the capital.

Question 5
20 / 20 pts
Company XYZ hired A as a rank-and-file employee. After working for 3 years, a dispute arose
between Company XYZ and A which resulted in a case filed with the courts. In the case, both
Company XYZ and A presented the same amount of evidence. If you are the judge, how would
you rule in this case? (20%)

Your Answer:
I would rule in favor of A.
The State is bound under the Constitution to afford full protection to labor and to rule in favor of
labor when conflicting interests collide and they are weighed on the scales of social justice. One
principle in criminal law is the principle of dubio pro reo ate, where when the accused and the
the prosecution presented the same weight of evidence in court, the court shall rule in favor of
the accused. This principle is likewise applicable in labor cases. When the company and the
laborer presented the same weight of evidence, then the court must rule in favor of the laborer as
founded in the principle of social justice.
Here, both Company XYZ and A presented the same weight of evidence in court.
Therefore, I will rule in favor of A.

Quiz 2
Question 1
20 / 30 pts
A, an officer of TRIP-TOUR Corporation, a travel agency, wanted to help Filipinos to acquire
jobs in the United States. A together with B, C, D, and E, incorporated Corporation XYZ. They
were able to accumulate P3,000,000 as their capital stock. Corporation XYZ then proceeded to
apply for issuance of a license so it can engage in recruitment and placement of migrant workers.
If you are the POEA officer, will you grant the application for license? Why or why not? (30%)

Your Answer:
No, I will not grant the application for license of Corporation XYZ. 
Article 25 of the Labor Code provides for the requirements for private entities to be given the
license or authority to participate in recruitment and placement activities; one of which is the
requirement that you should not be disqualified by law to engage in the recruitment and
placement of workers for overseas employment. This article gives the enumerations  of those
people disqualified which includes corporations and partnerships where any of its officers,
members of the board or partners, is also an officer, member of the board or partnership engaged
in the business of a travel agency.
In the present case, A, a member of the board of Corporation XYZ is also an officer of TRIP-
TOUR Corporation, a travel agency. 
This makes their corporation qualified for the disqualification enumerated in Article 25 of the
Labor Code. 
Hence, I will not grant the application for license of Corporation XYZ to engage in the business
of recruitment and placement of workers for overseas employment. 

Question 2
30 / 30 pts
A went to the United States with a tourist visa. While he was touring in the United States, he
applied for a job and he was hired. A and his foreign employer agreed that A will start to work
on the following month. Before he started to work, A went home to the Philippines and told his
friend B about what happened. A remembered that his foreign employer was requiring more
workers for the new factory, so he convinced B to go with him in the United States and promised
him that he will have a job with him in the United States. B was elated and told his neighbor C
about his trip. C, being a member of the anti-illegal recruitment department of POEA, charged A
with illegal recruitment under the Migrant Workers Act. A raised the following defenses: (a) he
did not intend to violate the law, (b) he only promised a job to a single person, and not to two or
more persons, and (c) he did not gain anything from B. Rule on the defenses raised by A. (30%)
 
Your Answer:
A's first defense is immaterial.
This is because Illegal recruitment is by its nature, malum prohibitum,  which means that
regardless of intent, it is still a crime punishable by law. In offenses like this, good faith cannot
be raised as a defense. 
A's second defense is not tenable.  Section 5 of RA 10022 defines illegal recruitment as
performing any act of recruitment and placement activities, whether for profit or not, when
undertaken by non-license or non-holder of authority: provided that any such non-licensee of
non-holder who, in any manner, offers or promises for a fee employment abroad to two or more
persons.  
However, in Article 13 of the Labor Code, it was reiterated that the last phrase does not give an
element of recruitment or placement. The number of persons you are performing the act of
recruitment with is not an element of the act itself.   
Here, though A committed the act of illegal recruitment to B only, he still committed the act of
illegal recruitment since the number of persons to whom you are performing the act with is not
an element of the act of recruitment. 
A's third defense is again not tenable. RA 10022 provides that illegal recruitment is committed if
any acts of recruitment is done whether for profit or not by any non-licensee or non-holder of
authority. This means that the crime is committed even without receiving gain from that person
you are recruiting.

Question 3
20 / 20 pts
a) Define “name hires.” (5%)
b) What is the theory of imputed knowledge? (5%)
c) When is illegal recruitment syndicated? (5%)
d) When is illegal recruitment committed on a large scale? (5%)

Your Answer:
a. Name hires are individual workers who are able to secure contracts for overseas employment
opportunities with employees without the assistance or participation of any agency. 
b. The theory of imputed knowledge ascribes the knowledge of the agent, to the principal
employer. This means that the knowledge of the agent is equal to the knowledge of the principal.
If the agent is aware, then the principal is deemed to be aware.
c. Illegal recruitment is syndicated when the performance of the illegal act of recruitment is
carried out by a group of three or more persons in conspiracy or confederation with another.
d. Illegal recruitment is committed on a large scale if the performance of the act of illegal
recruitment is committed against three or more persons individually or as a group.

Question 4
10 / 10 pts
An applicant for a license or an authority to engage in recruitment and placement activities is
required to post a bond. Explain the purpose of this bond. (10%)

Your Answer:
The bond serves as a security to guarantee compliance with the terms and conditions of the
employment. This is to ensure that if the rights of the overseas workers are violated by their
employers, recourse would still be available to them against the local companies that recruited
them for the foreign principal. Since the foreign principal is outside of our jurisdiction, and when
the overseas workers cannot run after them to satisfy their claims, then the employees may
proceed against the local company through the bond. 

Quiz 3
Question 1
20 / 20 pts
Distinguish between learnership and apprenticeship. (20%)

Your Answer:
The distinctions between learnership and apprenticeship are the following:
1. Learnership is a training on the job in a semi-skilled and other industrial occupation or trades
which are not supplemented by related theoretical instruction while apprenticeship is a training
in trades supplemented by related theoretical instruction;
2. Learnership does not exceed three months while apprenticeship lasts for at least three months
up to six months;
3. In Learnership, their is a commitment to employ the learner as a regular employee if he desires
upon the completion of the learnership but in apprenticeship, their is no commitment to hire the
apprentice as a regular employee upon the completion of the apprenticeship;
4. The learner is considered a regular employee if pre-termination occurs after 2 months of
training without fault on his part while an apprentice is not considered a regular employee if pre-
termination occurs;
5. Learnership is concerned on semi-skilled or industrial occupations while apprenticeship is on
highly technical industries and only in industrial corporations;
6. In learnership, there is a list of learnable trades by the TESDA while in apprenticeship, there is
no such list; and
7. In learnership, a learnership agreement is required while in apprenticeship, an apprenticeship
agreement is required.

Question 2
40 / 45 pts
A was hired by Company XYZ as an apprentice. The period of apprenticeship agreement
between A and Company XYZ is 5 months. Before the end of 5-month period, Company XYZ
notified A of the termination of the apprenticeship. At the end of the 5-month period, A still tried
to go to work but Company XYZ denied him entry to the workplace and stated that he is no
longer an employee of Company XYZ.
a) Is the termination of A valid? (15%)

b) Suppose before the end of the 5-month period, Company XYZ notified A that the Company is
now hiring A as a probationary employee. Can Company XYZ hire A as a probationary
employee? (15%)
 
c) Suppose after the 5-month period, A was still allowed to work for another week. What is the
status of A's employment in this case? (15%)
Your Answer:
a. Yes, the termination is valid.
Under the Labor Code, apprentices are considered contractual workers whose length of service
depends on the term provided for in the apprenticeship agreement. As such, the employer is not
obliged to employ them  after the completion of their training.
Here, A was denied entry of the company as his apprenticeship already lapsed.  Company XYZ
is not obliged to employ him further as the five month period stipulated in their agreement has
already expired. 
 
b. No, A cannot be hired as a probationary employee.
Under the Labor Code, apprenticeship is deemed a probationary period. 
Here, A is already an apprentice of Company XYZ. 
Therefore, his apprenticeship is already considered as his probationary period in that company.
 
c. A is deemed a regular employee.
Under the Labor Code, the status of an apprentice who is allowed to continue working after the
lapse of the period of apprenticeship is that of a regular employee. 
Here, after the five month stipulation of apprenticeship, Company XYZ allowed A to continue
working. 
Therefore, his status is that of a regular employee. 

Question 3
22 / 25 pts
Define the following terms:
a) Field Personnel (8%)
b) Domestic Worker (7%)
c) Managerial Employee (10%)
Your Answer:
a. Field personnel are those non-agricultural employees who regularly perform their functions
away from the principal place of business of the employer and whose actual hours of work in the
field cannot be ascertained. 
 
b. A domestic worker is one who performs services which are necessary and desirable for the
maintenance of the employer's house or one who ministers to the personal comfort, convenience
or safety of the employer and the members of his household. 
 
c. A managerial employee is one whose primary duty is the management of the establishment
where he is employed or a department thereof who customarily directs the work of two or more
employees and who has the authority to hire or fire employees of lower rank or whose suggestion
and recommendation as to the hiring, promotion and firing of employees matter.

Midterm Exam
Question 1
10 / 10 pts
ChongQuing Construction hired A, a Filipino, as a construction worker in China. A was hired
through RayCis Employment Agency. In a private email sent by RayCis Employment Agency to
ChongQuing Construction, it erroneously indicated “ChingChong” Construction. This mistake
was taken by ChongQuing Construction as offensive and thus it immediately severed its ties with
RayCis Employment Agency by replying to such email. One month after the incident, the
workers hired by ChongQuing Construction through RayCis Employment Agency were all
terminated. The workers were clueless as to why they were fired. Some of them, including A,
still has 10 months remaining under their contract. A’s two-month worth of wages are still
unpaid by ChongQuing Construction when he was terminated.
When A arrived in the Philippines, he sued RayCis Employment Agency for his illegal
termination and for the unpaid wages. RayCis Employment Agency denied liability because
according to it, when A was terminated, the relationship between ChongQuing Construction and
RayCis Employment Agency was already severed. Is RayCis Employment Agency correct?
(10%)

Your Answer:
No, the Raycis Employment Agency is not correct.
Under Article 25 of the Labor Code, local employment agencies are solidarily liable with their
foreign principal for any violation of the recruitment agreement and violation of contracts of
employment. It further provides that a recruitment agency may still be sued even if the
agreement between the recruitment agency and the principal is already severed if no notice of the
termination was given to the employee based on Article 1921 of the Civil Code.
Here, the A was terminated without a valid cause, a violation of the contract of employment as
he still has 10 months remaining under the contract. Raycis Employment Agency is therefore
solidarily liable for such violation. While it is true that the agreement between Raycis
Employment and ChongQuing Construction is severed, Raycis Employment Agancy's solidary
liability is not severed since there was no notice of termination that was given to  A.
Hence, A may sue said agency. 

Question 2
18 / 20 pts
Fallpack Corporation, a company engaged in the production of parachutes in Norway, hired A, a
Filipino, as a factory worker. A was hired through Maagap Recruitment Agency. Fallpack failed
to pay A’s three-month worth of wages when their contract ended because it suffered business
difficulties. When A returned to the Philippines, he requested Maagap to send him back to
Fallpack Corporation, because according to him, Scandinavian women are the most beautiful
people in the world, and so, he wants to work in Norway again. Maagap warned A that Fallpack
might not recover from its business difficulties, but A insisted to be sent to Fallpack.
While A was working in Fallpack, Fallpack filed for bankruptcy and closed its operations, thus A
lost his job. When A arrived in the Philippines, A sued Maagap Recruitment Agency for the
unpaid three-month worth of wages from his first time working for Fallpack, and for the unpaid
five-month worth of wages from his second time working for Fallpack. Is Maagap Recruitment
Agency liable? (20%)

Your Answer:
Maagap Recruitment Agency is liable for the unpaid three-month worth of wages of A from his
first time working for Fallpack but not for the unpaid five-month worth of wages from his second
time working for Fallpack.
Under the Labor Code, a recruitment agency, as a general rule, is solidarily liable with their
foreign principal for any violation of the recruitment agreement and violation of contracts of
employment. However, where the workers themselves insisted for the recruitment agency to send
them back to their foreign employer despite their knowledge of its inability to pay their wages,
the agency may be exempt from such solidary liability. 
Here, the agency is only solidarily liable with respect to the unpaid wages the first time A
worked at Fallpack. However, for the time that A insisted to be sent back, despite knowing and
being warned that Fallpack might not recover from its business difficulties, whatever violation of
the contract of employment, the agency is exempt from such solidary liability. 
Therefore, A can only sue Maagap Recruitment Agency with respect to the unpaid three-month
worth of wages from his first time working for Fallpack but not for the unpaid five-month worth
of wages from his second time working for Fallpack.

Question 3
6 / 6 pts
When is waiting time considered hours worked? (6%)

Your Answer:
Section 5 of Article 84 provides that waiting time shall be considered hours worked in the
following instances:
1. Where the waiting time is an integral part of the work;
2. Where the employee is required or engaged by the employer to wait; or
3. When the employee is required to remain on call in the employer's premises or so close thereto
that he cannot use the time effectively and gainfully for his own purpose.

Question 4
10 / 10 pts
After working from 8am, A was given a meal break from 11:00am to 11:40am. In the afternoon,
A was again given a break from 2:40pm to 3:00pm. A’s shift ended at 4:00pm.
a) Is A entitled to overtime pay? (5%)
b) Will your answer be the same if A’s shift ended at 5:00pm? (5%)

Your Answer:
a. No, A is not entitled to overtime pay.
Under Article 85 of the Labor Code, as a general rule, the eight-hour work period does not
include the meal break. However, a meal period less than an hour but not less than 20 minutes
may be given by the employer provided that such shorter meal period is credited as compensable
hours. Further, rest periods or coffee breaks running from five to twenty minutes shall be
considered as compensable working time.
Under Article 87 of the Labor Code, overtime pay is the additional compensation for the service
or work rendered or performed in excess of the eight hours in a normal workday. 
Here, the meal break given from 11:00 AM to 11:40 AM and the break given from 2:40 PM to
3:00 PM are considered hours worked. Hence, A's total hours worked from 8 AM to 4 PM is
eight hours.
Since his total hours worked is eight hours, A is therefore not entitled to overtime pay.
 
b. No, my answer will not be the same.
Under Article 87 of the Labor Code, overtime pay is the additional compensation for the service
or work rendered or performed in excess of the eight hours in a normal workday. 
Here, if A's shift will end at 5 pm, then his total hours worked from 8 AM to 5 PM is nine hours. 
He is therefore entitled to an overtime pay for the one hour excess from the eight hours. 
 
Question 5
7 / 15 pts
A is working the graveyard shift in a cemetery. On August 21, 2018, A started work at 10:00pm.
At 3:00am, he had his usual one-hour meal break. His shift ended at 10:00am on August 22,
2018. A’s hourly rate for his work is P150. How much wage is A entitled to for the specific work
indicated? (15%)

Your Answer:
A is entitled to a wage of P1 867.5 for that work day.
Under the Law on Labor Standards, an employee who works beyond the 8-hour period in a
workday is entitled to an overtime pay at the rate of 25% of his pay per hour of overtime work.
He shall likewise be entitled to a night shift differential pay of 10% of his rate per hour for each
hour of work performed between 10 PM to 6 AM. 
As provided for by the same law, meal breaks in the duration of a complete hour is not
compensable.
Here, because A's rate per hour is P150, he is entitled to a rate of P1 155 for his work from 10
PM to 6 AM excluding the one hour meal break. 
Since his 10 PM to 6 AM hours worked is just 7 hours, he is therefore entitled to receive a
regular hourly rate of P150 for the hours worked from 6 AM to 7 AM.
A's hours worked beyond 7 AM is already considered overtime work, thus compensable with an
additional compensation at the rate of 25% of his rate for each hour of overtime work . He is
therefore entitled to receive P562.5 for the hours worked from 7 AM to 10 AM.
In total, A's wage for the said work day is P1 867.5.

Question 6
10 / 10 pts
In a meeting between the employees and employer regarding the scheduling of rest days, X
requested that his rest day be scheduled every Saturday because he has a scheduled band practice
every Saturday. X’s employer, being a hater of rock music, denied X’s request. X then argued
that under labor laws, in the selection of rest days, the employer must comply with the choice of
the employee. Is X correct? (10%)

Your Answer:
No, X is not correct. 
Under Article 91 of the Labor Code, it is the employer who determines the schedule of rest day
of the employees. However, as provided for in Section 4, the preference of an employee as to his
weekly day of rest shall be respected by the employer if the same is based on religious grounds.
Here, X's employer has the right to determine X's schedule of rest day. However, X's employer
may also respect X's preference. But since X's preference is on the ground of a band practice and
not on religious grounds, his employer may not grant such preference of X. 
Question 7
8 / 8 pts
Who are the persons considered to have derogatory records in relation to the issuance of a license
or authority to engage in recruitment and placement activities? (8%)

Your Answer:
Article 25 of the Labor Code provides the following persons considered to have derogatory
records in relation to the issuance of a license or authority to engage in recruitment and
placement activities:
1. Certified to have derogatory record or information by the NBI or by the Anti-Illegal
Recruitment Branch of the POEA;
2. Against whom probable cause or prima facie finding of guilt for illegal recruitment or other
related cases exists;
3. Convicted for illegal recruitment or other related case and/or crimes involving moral turpitude;
4. Agencies whose licenses have been previously revoked or cancelled by the POEA for
violation of RA 8042, PD 442 and their IRRs;
5. Any official or employee of the DOLE, POEA, OWWA, DFA and other government agencies
directly involved in the implementing of RA 8042 and/or any of his/her relatives within the 4th
civil degree of consanguinity or affinity;
6. Persons or partners, officers and directors of corporations whose licenses have been previously
cancelled or revoked for violation of recruitment laws.
These enumerations are not however exclusive.

Question 8
10 / 10 pts
Distinguish between Apprenticeship and Learnership. (10%)

Your Answer:
The following are the distinctions between apprenticeship and learnership:
1. Apprenticeship is a practical training on the job supplemented by related theoretical
instruction for more than three months while learnership is a training on the in semi-skilled and
other industrial occupation or trades which are non-apprenticeable and which may be learned
through practical training on the job in a relatively short period of time;
2. Apprenticeship is within 3 months to 6 months while learnership must not go beyond three
months;
3. In apprenticeship, there is no commitment to hire the apprentice while in learnership, there is
commitment to employ the learner as a regular employee, if he desires, upon the completion of
the learnership;
4. In apprenticeship, the worker is not considered a regular employee while in learnership,  if
pre-termination occurs after two months of training and the dismissal is without fault to the
learner, then the learner is considered a regular employee;
5. Apprenticeship is in highly technical industries and only in industrial occupation while
learnership is in semi-skilled or industrial occupations;
6. In apprenticeship, there is no list of learnable trades by TESDA while in learnership, there is a
list of learnable trades by TESDA;
7. Apprenticeship requires apprenticeship agreement while learnership requires learnership
agreement.

Question 9
6 / 6 pts
Define Social Justice. (6%)

Your Answer:
Social Justice is neither communism, nor depotism nor atomism, nor anarchy, but 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. It is the
promotion of the welfare of all the people; the adoption by the government of measures
calculated to insure economic stability of all the competent elements of the society, through the
maintenance of a proper economic and social equilibrium in the interrelations of the members of
the community, constitutionally, through the adoption of measures legally justifiable, or extra-
constitutionally, through the existence of powers underlying the existence of all governments on
the time honored principle of salus populi est suprema lex.

Quiz 4
Question 1
25 / 35 pts
The RTWPB for Region 1 issued a wage order on November 3, 2019, this wage order was
published on the same day in a newspaper of general circulation in Region 1.
a) What is a wage order? (5%)
b) Give 5 factors to consider before a wage order can be issued. (10%)
c) On November 15, 2019, Company XYZ filed an appeal with the National Productivity and
Wages Commission on the ground that the wage order became effective before it was even
approved by the National Productivity and Wages Commission. Rule on the appeal of Company
XYZ. (20%)

Your Answer:
a. A wage order is an order issued by the Regional Tripartite Wages and Productivity Boards
setting the regional minimum wage.
 
b. The following are some of the factors to be considered before the issuance of a wage order:
1. The demand for living wages;
2. The cost of living and changes or increases therein;
3. The needs of workers and their families;
4. Improvements in standard of living; and
5. The prevailing wage levels.
 
c. Company XYZ was late in filing the appeal and its contention that the wage order became
effective before it was even approved by the National Productivity and Wages Commission is
not tenable.
Under the law, a wage order shall take effect after 15 days from its complete publication in at
least one newspaper of general circulation in the region. Any aggrieved party may appeal the
wage order to the Commission within ten calendar days from the publication of such order.
Here, when the company appealed the order, the wage order did not yet take effect. Since the
wage order was published on November 3, it shall take effect on November 18.
Company XYZ did not appeal on time as well. The company appealed the order on November
15, 12 days after the publication of the wage order on November 3. The company was late by
two days in appealing the wage order.
Thus, the appeal should not be given due course.
 
Question 2
21 / 30 pts
A and B are employed by Company XYZ. A is paid the minimum wage of P300 per day, and B
is paid P400 per day because of B’s length of service. RTWPB for Region 1 then issued a wage
order on November 3, 2019 increasing the minimum wage to P390 per day. The wage order was
published on November 3, 2019 in a newspaper of general circulation in Region 1.
On November 15, 2019, Company XYZ filed an appeal with the National Productivity and
Wages Commission questioning the issuance of the wage order on the ground that such wage
order was issued by RTWPB without a petition from the public to increase the minimum wage
for Region 1.
a) Is there a wage distortion in this case? (10%)
b) Rule on the appeal of Company XYZ. (20%)
 
Your Answer:
a. Yes, there is wage distortion in the given case.
The law defines wage distortion as a situation where an increase in the prescribed wage rates
results in the elimination or severe contraction of intentional quantitative differences in wage
rates between and among employees in an establishment as to effectively obliterate the
distinctions embodied in the wage structure based on skills, length of service or other logical
bases of differentiation.
Here, A is previously paid P300 per day while B, because of his length of service, is paid P400
per day. With the new wage order issued, the P100 difference in the amount of the wages of A
and B was reduced to P10, a decrease which is considerably high. The new prescribed wage rates
resulted to a severe contraction in the wage difference between A and B. B's length of service is
deemed disregarded as compared to A since the resulting wage difference is just P10. 
 
b. Company XYZ was late in filing the appeal.  
Under the law, any aggrieved party may appeal the wage order to the Commission within ten
calendar days from the publication of such order in at least one newspaper of general circulation
in the region.
Here, Company XYZ appealed the order on November 15,  12 days after the publication of the
wage order on November 3. The company was late by two days in appealing the wage order.
Thus, the appeal should not be given due course.
Question 3
10 / 10 pts
Company XYZ is implementing the following policy contained in they Employee's Manual:
"Section 1. Sick Leaves — The Company agrees to grant 15 days sick leave with pay each year
to every regular worker who already rendered at least one year of service with the company.
However, such sick leave can only be enjoyed upon certification by a company designated
physician, and if the same is not enjoyed within one year period of the current year, any
unenjoyed portion thereof, shall be converted to cash and shall be paid at the end of the said one
year period."
Company XYZ then terminated its previous general manager Mr. X and was replaced by Mr. Y.
Mr. Y then denied the applications of the regular workers for the cash equivalent of their unused
sick leaves. According to Mr. Y, there will be no cash conversion of the unused sick leaves under
his watch.
Can Mr. Y impose such policy? (10%)

Your Answer:
No, Mr. Y cannot impose such policy. 
Under the Principle of Non-Diminution of Benefits, employers are prohibited from eliminating
or reducing the benefits received by the employers based on an express policy, written contract
or a practice.
Here, the benefit of the cash conversion of their unused sick leaves is a policy of the company
written in their employer's manual and is already being enjoyed by the employees. Mr. Y is
therefore prohibited to eliminate this benefit which is based on an express company policy
already being enjoyed by the employees.

Question 4
18 / 20 pts
A is an employee of Company XYZ paid on a task basis. On November 3, 2019, A was given
assigned to paint the entire floor of the office of Company XYZ. Under the job order, the
estimated time of completion of the work is 40 days inclusive of rest days. Company XYZ gave
A all the tools he needed to complete the job. After 40 days, A was paid his wage, however,
Company XYZ deducted the amount of P1,000 because according to Company XYZ, A lost a
certain paint brush that was given to him to perform his job.
Did Company XYZ commit any violation of any Labor Law under the given facts? What are
those, if any, and explain each violation. (20%)

Your Answer:
Yes, the company committed some violations of the Labor Law. Some of which are the
following:
 1. Payment of wages must be made at intervals not exceeding 16 days. 
Article 103 of the Labor Code provides that, in the absence of a collective bargaining agreement
or arbitration award, payment of wages of employees engaged to perform a task which cannot be
completed in two weeks shall be made at intervals not exceeding sixteen days, in proportion to
the amount of work completed and that the final settlement is made upon completion of the
work. 
Here, A was assigned to paint the entire floor of the office of the company and the estimated
time of completion of the work is 40 days. However, payment was only made after the work was
completed. There was no payment made at intervals not exceeding 16 days. 
 
2. Wage reduction is prohibited by law except in certain instances.
Article 113 of the Labor Code provides no employer shall make any deduction from the wages of
his employees except:
a.  When the reduction is to recompense the employer for the amount paid by him as premium on
the insurance if the work is insured by the employer with the consent of the employee;
b. For union dues; or
c. When the employer is authorized by law or regulations issued by the Secretary of Labor and
Employment.
Here, the company deducted the amount of P1,000 in the wage of A for the reason that A lost a
certain paint brush that was given to him to perform his job. This is not one of the given
situations where wage reduction is allowed by the Labor Code.