1. State the concept of liberal approach.

- All doubts in the construction and interpretation of the provisions of the Labor Code shall be
resolved in favor of labor. When there is no doubt, apply the law as it is.
2. Problem: A, employee of X, was dismissed for allegedly stealing X’s wristwatch. A filed a case of
illegal dismissal against X. Labor Arbiter favors A on the ground that there is doubt on the
testimony of X. X appealed to the NLRC. NLRC reversed the decision of the labor arbiter, stating
that Article 4 applies only when there is doubt in the provisions of the Labor Code and not the
rules of evidence. Is the NLRC correct?
- No, the NLRC is not correct. It is a well-settled doctrine that when there is doubt arising in
evidence or agreement between employers and employees, it shall be resolved in favor of
labor. In the case at bar, there is illegal dismissal for there is doubt on the testimony of X.
3. What is the test in determining whether the Civil Service Law or the Labor Code shall apply to
government corporations?
- The test in determining whether a government owned or controlled corporation is subject
to the Civil Service Law or Labor Code is the manner of its creation. Government
corporations created by Congress are subject to the Civil Service Rules, while those
incorporated under the General Corporation Law are covered by the Labor Code.
4. Do government employees enjoy the basic rights of workers?
- Yes, government employees are accorded with the basic rights of workers including the right
to organize. Withheld from them, however, is the right to strike.
5. Define “Recruitment and Placement”.
- Recruitment and placement refers to any act of canvassing, enlisting, contracting,
transporting, utilizing, hiring or procuring workers, and includes referrals, contract services,
promising or advertising for employment, locally or abroad, whether for profit or not:
Provided, that any person or entity which, in any manner, offers or promises for a fee
employment to two or more persons deemed engaged in recruitment and placement of
workers.
6. Is a seafarer who worked for five years considered a regular employee?
- No, a seafarer who worked for five years is not considered a regular employee. Seafarers are
fixed term employees whose employment ends at each term. Continuous hiring of seafarers
is not considered as regular employment, but a series of hiring renewable at the end of each
term.
7. Problem: A is working as a steward on a ship. Due to food poisoning, A is not hired in his last
contract. A filed illegal dismissal and claimed separation pay. Will the complaint prosper and is A
entitled to separation pay?
- No, the complaint will not prosper. A is not entitled to separation pay. Seafarers are fixed
term employees whose employment ends at each term. A, being merely a contractual
employee, is terminated as a result of expiration of contract. Absent the finding of illegal
dismissal, there can be no claim for separation pay.
8. Does the Labor Arbiter have jurisdiction over cases involving illegal recruitment?
- No, the Labor Arbiter does not have jurisdiction over cases involving illegal recruitment. It is
the Regional Trial Court, where the offense was committed or where the offended party
actually resides at the time of the commission of the offense, which has jurisdiction over
such cases.
9. When does illegal recruitment qualify as economic sabotage?
- Illegal recruitment shall be considered an offense involving economic sabotage when
committed by a syndicate or in a large-scale. It is committed by syndicate when carried out
by three or more persons conspiring or confederating with one another. It is committed in
large-scale when committed against three or more persons individually or as a group.
10. Is the number of persons dealt with an essential ingredient of illegal recruitment? Why?
- No, the number of persons dealt with is not an essential ingredient of illegal recruitment.
This proviso merely lays down a rule of evidence that where a fee is collected in
consideration of a promise or offer of employment to two or more prospective workers, the
individual or entity dealing with them shall be deemed to be engaged in the act of
recruitment and placement.
11. Define apprentice, learners, and handicapped workers.
- An apprentice is a worker who is covered by a written apprenticeship agreement with an
individual employer or entity who shall undergo practical training on the job supplemented
by related theoretical instruction.
- Learners are persons hired as trainees in semi-skilled or industrial occupations which are
non-apprenticeable and which may be learned through practical training on the job in a
relatively short period of time which shall not exceed three months.
- Handicapped workers are those whose earning capacity is impaired by age, physical or
mental deficiency, or injury.
12. Bank hired handicapped workers for six months to count and sort out currencies. Contract was
only for a period of six months. Bank dismissed the handicapped workers at the end of six
month. Workers filed with the Labor Arbiter a complaint for illegal dismissal. Will the action
prosper?
- No, the action will not prosper. An employment contract with a fixed term terminates by its
own terms at the end of such period. Term employment was made known to workers at the
time of engagement. Hence, illegal dismissal will not prosper.
13. What are the four elements in determining employer-employee relationship?
- The elements in determining employer-employee relationship are:
1. selection and engagement of the employee;
2. payment of wages;
3. power of dismissal; and
4. employee’s power to control the employee with respect to the means and methods by
which the work is to be accomplished.

Absent the power to control the employee with respect to the means and methods of
accomplishing his work, there is no employer-employee relationship between the parties.

14. Problem: A, a flower arranger, was secured by B to arrange flowers for his wedding. They agreed
that B will pay A PhP 20,000 for his services, but A will take care of everything. On the day that A
will decorate, B changes the plans of A and ends up designing the flower arrangement himself
with A just simply executing the instruction of B. Is there an employer-employee relationship?
- Yes, there is an employer-employee relationship between A and B. B has control over the
means and methods in the manner of how A will accomplish his work. The Supreme Court
 held that control test is the most important element in determining employer-employee
relationship.
15. Same problem: Should B register A with SSS?
- B need not register A with the SSS. A is merely a part-time worker who is not subject to
compulsory coverage of SSS by express provision of law.
16. Define overtime pay.
- Overtime pay is the additional compensation paid for hours worked in excess of the normal
eight-hour work.
17. May an employer and employee enter into agreement of increasing the minimum percentage
for night differential pay?
- Yes, an employer and employee may enter into agreement of increasing the minimum
percentage for night differential pay for it is more beneficial to the employee. However,
they cannot agree to reduce the minimum percentage as it is against public policy.
18. What is the “normal hours of work”?
- The normal hours of work of any employee shall not exceed eight hours a day. It shall
include:
1. all time during which an employee is required to be on duty or to be at a prescribed
place;
2. all time during which an employee is permitted to work;
3. rest period of short duration;
4. waiting time if this is considered as an integral part of the work;
5. on call where the employee cannot use the time gainfully and effectively for his own
purpose effectively.
19. What are the tests in determining whether the time spent constitute working time?
- The tests are following:
1. that the time is spent predominantly for the benefit of the employer; and
2. that the time cannot be effectively utilized
20. The principles in determining hours worked are the following:
1. all hours which the employee is required to give his employer, regardless of whether or
not such hours are spent in productive labor or involve mental or physical exertion;
2. all employees need not leave the premises of the workplace in order that his rest period
shall not be counted, it being enough that he stops working, he may rest completely and
may leave his workplace to go elsewhere, whether within or outside the premises of his
workplace;
3. if the work performed is necessary, or it benefitted the employer, or the employee could
not abandon his work at the end of his normal working hours because he had no
replacement, all time spent for such work shall be considered as hours worked, if the
work was with the knowledge of his employer or immediate supervisor; and
4. the time during which an employee is active by reason of interruptions in his work
beyond his control shall be considered working time either if the imminence of the
resumption of work requires employee’s presence at the place of work or if the interval
is too brief to be utilized effectively and gainfully in the employee’s own interest.
21. When is the adoption of compressed workweek scheme valid?
- The adoption of compressed workweek scheme is valid only if the following are observed:
1. when employers voluntarily agreed;
2. there is no diminution of take home benefits; and
3. the rest of the benefits are greater or equal commensurate due to employees. (?)
22. Problem: Employer was charged with violation of prohibition against offsetting undertime for
overtime work on any other day. Pursuant to CBA, employees were required to work overtime
on Saturday but they were not required and did not in fact complete eight-hour work from
Monday to Friday. Employer contended employees were not entitled to overtime
compensation. Decide that controversy.
- Employer is not correct. Employer cannot use undertime of Monday to Friday to offset
overtime on Saturday. Employee is entitled to overtime pay for work rendered on Saturday.
23. Problem: A company pays their worker PhP350/day and provides them with board and lodging
and three meals/day. DOLE inspected the company and learned that the wage is below
minimum. Company denies liability and argued that they provide lodging and food which if
added in their wage is higher than the minimum wage. Decide the case.
- The company is not correct. They failed to comply with the requisites for the deduction of
the value of the facilities from the wages. The provision of deductible facilities must be
voluntarily accepted in writing by the employees.
24. Are commission-based agents entitled to 13 th month pay?
- Purely commission-based agents are not entitled to 13 th month pay as provided by law.
- If an employee is receiving a fixed or guaranteed wage in addition to commission, then he is
entitled to 13th month pay.
25. What is the rule on compensation if there is “double holiday”?
- If the employee works on a double holiday (two regular holidays falling on a same day), he
shall be entitled to 300% of his regular daily wage.
- If the employee does not work on a double holiday, he shall be entitled to 200% of his
regular daily wage; provided he does not absent himself or is on leave with pay on the day
immediately preceding the day of the holidays.
26. X agency provided janitorial services to NEDA renewable every three months. Last bidding, X
was disqualified and excluded six janitors of X assigned at NEDA. Janitors complained for
underpayment against X agency and NEDA was impleaded as respondents. Should NEDA be held
liable with X agency for payment?
- Yes, NEDA should be held liable with X for payment of salary differential. NEDA being the
indirect employer of the complainant shall be jointly and solidarily liable with the contractor
to the extent of the work performed.
27. What is Service Incentive Leave?
- Service incentive leave is the yearly five days leave with pay granted to every employee who
has rendered at least one year of service.
- Exceptions:
1. those already enjoying vacation leave with pay of at least 5 days;
2. those employed in establishments regularly employing less than 10 employees; and
3. establishments exempted from granting SIL benefits by Secretary of Labor.
28. Problem: X an owner or restaurant in Makati opened a restaurant in Cebu. The Cebu restaurant
did not attract as much customers as Makati. Cebu workers demanded to have a share of the
service charge with the Makati branch in order to have equalization. Are the Cebu workers
entitled to service charge in Makati?
- No, the Cebu workers are not entitled to service charges in Makati. The service charge
attaches only in the outlet where the charge is earned. It is distributed exclusively to the
employers of the outlet who rendered such service.
29. Problem: To improve Cebu branch, four employees of Makati were assigned to Cebu to train
Cebu employees. The Makati employees were receiving a service charge from Cebu restaurant
which is less than those service charges in Makati. As a lawyer, what would you advise?
- The employees should file an action for unlawful diminution of service charge and salary
differential.
30. Who are entitled for maternity leave?
- Maternity leave benefit is granted to female employees, whether married or not, provided
that she has paid at least three consecutive monthly contributions immediately preceding
the semester of childbirth or miscarriage.