Labor Law Review

2nd S, 202021

Atty. Paciano F. Fallar Jr.

SSCR-CoL

Salaries and Benefits

Part 1

Q1: Nemia earns P7.00 for every manicure she does in the barber shop of a friend
which has nineteen (19) employees. At times she takes home P 175.00 a day and at
other times she earns nothing. She now claims holiday pay. Is Nemia entitled to this
benefit? Explain briefly.

Q2.Ms. F, a sales assistant, is one of the eight (8) workers regularly employed by ABC
Convenience Store. She was required to report on December 25 and 30.

Should ABC Convenience Store pay her holiday pay? Explain.

Q3.Ping Gabo is the Chief Engineer of the National Publishing Corp. with a monthly
salary of P50.000.00. He works over eight (8) hours daily from Monday to Saturday. In
May. June and July 2020, he rendered for each month ten (10) hours beyond his
regular work schedule.

Is he entitled to overtime pay and holiday pay? Why?

Q4: What would be your advice to your client, a manufacturing company, who asks for
your legal opinion on whether or not the 13th Month Pay Law (Presidential Decree No.
851) covers a casual employee who is paid a daily wage?

Q5 .Mrs. B, the personal cook in the household of X, filed a monetary claim against her
employer, X, for denying her service incentive leave pay. X argued that Mrs. B did not
avail of any service incentive leave at the end of her one (1) year of service and hence,
not entitled to the said monetary claim. Is the contention of X tenable? Explain.

Q6.If not used by the end of the year, the service incentive leave shall be:

(a) carried over to the next year.

(b) converted to its money equivalent.
(c) forfeited.
(d) converted to cash and paid when the employee resigns or retires.

Q7.Who among the following is not entitled to 13th month pay?

a. Stephanie, a probationary employee of a cooperative bank who rendered six (6)

months of service during the calendar year before filing her resignation;

b.Rafael, the secretary of a Senator;

c.Selina, a cook employed by and who lives with an old maid and who also tends the
sari-sari store of the latter;

d.Roger, a house gardener who is required to report to work only once a week.

Q8.Which type of employee is entitled to a service incentive leave?

a. managerial employees

b. field personnel

c. government workers;

d. part-time workers.

Q9.Gamma Company pays its regular employees P350.00 a day, and houses them in a
dormitory inside its factory compound in Manila. Gamma Company also provides them
with three full meals a day.

In the course of a routine inspection, a Department of Labor and Employment (DOLE)

Inspector noted that the workers' pay is below the prescribed minimum wage of P426.00
plus P30.00 allowance, and thus required Gamma Company to pay wage differentials.

Gamma Company denies any liability, explaining that after the market value of the
company-provided board and lodging are added to the employees' P350 cash daily
wage, the employees' effective daily rate would be way above the minimum pay
required by law. The company counsel further points out that the employees are aware
that their food and lodging form part of their salary, and have long accepted the
arrangement.

Is the company's position legally correct?

Q10. A, a worker at ABC Company, was on leave with pay on March 31. He reported for
work on April 1 and 2, Maundy Thursday and Good Friday, respectively, both regular
holidays.

Is A entitled to holiday pay for the two successive holidays? Explain.

Q11.May the employer and employee stipulate that the latter’s regular or basic salary
already includes the overtime pay, such that when the employee actually works
overtime he cannot claim overtime pay? Explain

Q12. A case against an employer company was filed charging it with having violated the
probation against offsetting undertime for overtime work on another day. The
complainants were able to show that, pursuant to the Collective Bargaining Agreement
(CBA), employees of the union had been required to work “overtime” on Saturday but
were paid only at regular rates of pay on the thesis that they were not required to
complete, and they did not in fact complete, the eight-hour work period daily from
Monday through Friday. Given the circumstances, the employer contended that the
employees were not entitled to overtime compensation, i.e., with premium rates of pay.
Decide the controversy?

Q13.After working from 10 a.m. to 5 p.m. on a Thursday as one of 5,000 employees in a

beer factory, A hurried home to catch the early evening news and have dinner with his
family. At around 10 p.m. of the same day, the plant manager called and ordered A to fill
in for C who missed the second shift. May A be required to render overtime work, under
pain of disciplinary sanction?

Q14.Corporation X is owned by L’s family. L is the President. M, L’s wife, occasionally

gives loans to employees of Corporation X. It was customary that loan payment was
paid to M by directly deducting from the employee’s monthly salary. Is this practice of
directly deducting payments of debts from the employee’s wages allowed?

Q15.Percival was a mechanic of Pacific Airlines. He enjoyed a meal break of one hour.
However, during meal breaks, he was required to be on stand-by for emergency work.
During emergencies, he was made to forego his meals or to hurry up eating. He
demanded payment of overtime for work done during his meal periods. Is Percival
correct? Explain your answer.

PFFALLARJRMarch2021