1. Temple of the Monks is a restaurant with 10 waiters and kitchen staff and one manager named Rico.

For the month of January 2021, the restaurant collected P20,000 as tips. The owner of the restaurant
gave the waiters and kitchen staff P17,000 pesos for them to divide among themselves and took the
remaining P3,000.00 as the management share. The waiters and kitchen staff complained that the
P17,000 is not the correct amount as their share. Rico, the manager is also asking for his share. But the
owner remained firm in his decision. If you were asked by the waiters and kitchen staff, what would be
your advice. Give your legal basis

Answer: If I were asked by the waiters and kitchen staff, I will advise them that the distribution is
correct because according to the Labor code, all service charges collected by restaurants shall be
distributed at the rate of eighty-five percent (85%) for all covered employees, except the managerial
employees as amended by Republic Act 11360. Therefore, if Rico ask for a share in the P17,000 pesos
that is the time that the waiters and kitchen staff shall complain to the owner.

2. MNL Corporation entered into a contract with QRS Security Agency wherein MNL will pay QRS
P240,000.00 contract price for one security guard who will guard their main office for a period of one
year for 8hours a day. One year later, the guard filed a complaint with the Labor Arbiter against MNL
Corporation stating that QRS Security Agency did not pay him his salary, therefore MNL Corporation
mustpay him. MNL Corporation refuse to payhim because it has already paid QRS Security Agency the
whole contract price ofP240,000.00 which already included the salary of the security guard. If you are
the labor arbiter, decide thematter and state your legal basis.

Answer: As the labor arbiter, MNL Corporation is still liable to pay the guard his salary. Because
according to the Labor code, in the event that the contractor or subcontractor fails to pay the wages of
his employees, the employer shall be jointly and severally liable with his contractor or subcontractor to
such employees to the extent of the work performed under the contract, in the same manner and
extent that he is liable to employees directly employed by him. Therefore, MNL Corporation cannot
escape this liability even if he has paid the QRS Security Agency in accordance with the stipulations in
the contract. But this is not unduly burdensome to MNL Corporation, because the latter can recover
whatever amount it paid to the guard to QRS Agency by reimbursement.

3. What powers are given to the Secretary of Laboror his duly authorized representatives under its
Visitorial and EnforcementPowers? Is there a maximum monetary amount for the exercise of the
enforcement power? Explain your answer.

The powers given to the Secretary of Laboror his duly authorized representatives under visitorial power
is that the latter shall have the access to employer’s record s and premises at any time of the day or
night whenever work is being undertaken therein, and the right to copy therefrom, to question any
employee and investigate any fact which may be necessary to determine violation, while under
enforcement power is to issue compliance orders to give effect to the labor standards of this code and
shall issue writs of execution to the appropriate authority for the enforcement of their orders, except
when the employer contests the findings supported by documentary proof which were not considered
in the course of inspection.

There is no maximum monetary amount for the exercise of the enforcement power because of the
exeption clause as provided by the labor code, the jurisdiction may be divested over a labor standards
case.
4. The Labor enforcement officer found out thatJollyknee knitting Corp. did not pay its workers their
13th monthpay amounting to P500,000.00 for the year 2019.Upon recommendation, the Regional
Director issued a compliance order,for the payment of the P500,000.00.Jollyknee Knitting claimed that
those workers were independentcontractors and are not his employees and that there are evidences to
prove itbut were not available at the time of the inspection. What can Jollyknee Knitting Corporation do
inthis case.

5. When John was hired as a sales representative ofAxid-O Chemical Corp., he was told that the
company has a policy that employeescannot marry an employee of competitor company as there could
be a conflict ofinterest and which could prejudice the company, otherwise he will be consideredas
resigned or will be terminated after a reasonable period. But after 1 year, John married Mary Ann, asales
supervisor of Amo-Nya ChemicalCorp., a direct competitor of Axid-O Chemical Corp. John was asked by
the employer not to resignbut instead he was told to ask his wife to resign from her job. After 6 months,
without John acting on thematter, he was terminated. John filed acomplaint for illegal dismissal citing
that the company has an invalid policyagainst marriage. If you are the laborarbiter, how will you decide
the case.

6. Distinguish facilities from supplements.

7. Explain wage distortion in your own words.

8. Define domestic or household service.

9. Jeanly, a call center agent was certified asunfit for night work. Upon knowing this,her employer
immediately terminated her services. Is the act of the employer of terminatingJeanly legal? What are
the rights ofJeanly, as a night worker in this case.

10. Your housemaid is asking for her 13thmonth pay. Is she entitled to 13thmonth pay?