JD2C ASPILAN, Rudbeth

774
Article 106, second (2nd) paragraph: In the event that the contractor or subcontractor fails to pay
the wages of his employees in accordance with this Code, the employer shall be:
A. Directly liable
B. Jointly and Severally liable
C. Liable as a principal contractor
D. None of the above
Rationale:
Article 106, second (2nd) paragraph:
“In the event that the contractor or subcontractor fails to pay the 
wages of his employees in accordance with this Code, 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.’"
 

JD2C ASPILAN, Rudbeth

775
The principal is solidarity liable with the contractor, as if it is also their direct employer, under
any of the following two (2) situations:
STATEMENT I: To comply with “any” violation of “any” provision of the Labor Code, one of 
which is specifically mentioned therein, that is, the failure of the contractor to pay the 
wages of its employees;
STATEMENT II: For the enforcement of the provisions of the Labor Code and other social 
legislation
STATEMENT III: 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.
A. Statement I and Statement II
B. Statement I and Statement III
C. Statement II and III
D. None of the above.
Rationale:
To the extent of the work performed by the contractor’s employees under their Employment
Contract they have with the contractor which is their direct employer, the principal is solidarity
liable with the contractor, as if it is also their direct employer, under any of the following two (2)
situations:
1. To comply with “any” violation of “any” provision of the Labor Code, one of 
which is specifically mentioned therein, that is, the failure of the contractor to pay the 
wages of its employees; and
2. For the enforcement of the provisions of the Labor Code and other social 
legislation.

JD2C BALAGOT, Rou

776. The contractor's liability for all the claims of his employees is not his alone as it is
equally shared by the                     who, although considered merely as an indirect
employer under Article 107 of the Labor Code, is                     liable with said
contractor under Article 109 of the Labor Code.

A. principal, solidary
B. contractor, solidary
C. principal, joint
 D. contractor, joint.
Rationale: The contractor's liability for all the claims of his employees is not his alone as it is
equally shared by the principal who, although considered merely as an indirect employer under
Article 107 of the Labor Code, is solidarity liable with said contractor under Article 109 of the
Labor (Deferia v. NLR, G.R. No. 78713, Feb. 27, 1991).

JD2C BALAGOT, Rou

777. If the law itself does not expressly and specifically make the obligation                  
in nature, the consequence is that the obligation is merely a                    one.

A. solidary, solidary
B. solidary, joint
C. joint solidary
D. joint, joint
Rationale: "ART. 1207. The concurrence of two or more creditors or of two or more debtors in
one and the same obligation does not imply that each one of the former has a right to demand, or
that each one of the latter is bound to render, entire compliance with the prestation. There is a
solidary liability only when the obligation expressly so states, or when the law or the nature of
the obligation requires solidarity."(Underscoring supplied)

JD2C BALAN-EG, Jeannie

778
The following statements are correct except:
I. The obligation being Joint and Solidary in nature, the contractor's employees may collect from
either the principal or legitimate job contractor.
II. Creditors such as the contractor's employees may collect from anyone of the solidary debtors
III. The obligation being Joint and Solidary in nature, the contractor's employees may collect
only from the legitimate job contractor.
A. Statement I is false
B. Statement II is false
C. Statement III is false
D. All statements are false
Basis:
The obligation being Joint and Solidary in nature, the contractor's employees may collect from
either the principal or legitimate job contractor.
As far as the contractor's employees are concerned, the actual source of the payment of their
wage differentials and premium for holiday and rest day work does not matter as long as they are
paid. This is the import of the principal's and contractor's solidary liability. Creditors such as the
contractor's employees may collect from anyone of the solidary debtors. Solidary liability does
not mean that, as between themselves, two solidary debtors are liable for only half of the
payment.(See for instance, Eparwa Security Agency Inc. v. NLRC (G.R. Nos. 81314 & 81447,
May 18, 1989, 173 SCRA 479).
 

JD2C BALAN-EG, Jeannie

779
Which among the following statements is correct?
I. In legitimate job contracting, the principal is jointly and severally liable with the contractor to
pay the wages of the latter's employees.
II. The recourse of the contractor's employees for the payment of wages or any increase thereof
should be with their direct employer - the contractor
A. Only statement I is true
B. Only statement II is true
C. Both statements are true
D. Both statements are false
Basis:
The second paragraph of Article 106 of the Labor Code states:
“In the event that the contractor or subcontractor fails to pay the wages of his employees in
accordance with this Code, xxx."(Emphasis supplied)
According to Development Bank of the Philippines v. NLRC, G.R. Nos. 100376- 77, June 17,
1994, the term "fails" in the afore-quoted provision does not mean that it should be proven first
that the contractor is insolvent or is unwilling to pay. There is nothing in said provision which
justifies this argument. The rule is clear that in legitimate job contracting, the principal is jointly
and severally liable with the contractor to pay the wages of the latter's employees. However,
according to Eagle Security Agency (Eagle Security Agency, Inc. v. NLRC (G.R. Nos 81314 &
81447, May 18, 1989, 173 SCRA 479)), the recourse of the contractor's employees for the
payment of wages or any increase thereof should be with their direct employer - the contractor.
This, notwithstanding the fact that under Articles 106, 107 and 109 of the Labor Code, in case
the job contractor fails to pay them the amounts claimed, the principal should be held solidarily
Liable with the job contractor.

JD2C BALISONG, Jedi

780 A principal who contracted security services with a security agency operating as a legitimate
contractor is held jointly and  severally liable with the said security agency for the underpayment
of wages and overtime pay of the security guards. The liability of the principal stems from it
being deemed as the _______ employer of the security guards.
A. principal
B. direct
C. indirect
D. main
Rational
 
When petitioner contracted for security services with the security agency which hired the
guards,  petitioner became an indirect employer of private respondents pursuant to Article 107.
Following Article 106, when the agency as contractor failed to pay the guards, the corporation as
principal becomes jointly and severally liable for the guards' wages. This is mandated by the
Labor Code to ensure compliance with its provisions, including payment of statutory minimum
wage. The security agency is held liable by virtue of its status as direct employer, while the
corporation is deemed the indirect employer of the guards for the purpose of paying their wages
in the event of failure of the agency to pay them ( Mariveles Shipyard Corp v. Hon. C.A. )

JD2C BALISONG, Jedi

781 A principal who contracted services with a labor-only contractor is held solidarily liable with
the labor-only agency for all rightful claims of labor-only contractor's employees. The liability of
the principal stems from it being deemed as the _______ employer of the  labor-only contractor's
employees.
A. principal
B. direct
C. indirect
D. main
 In labor-only contracting, the principal is always treated as the direct employer of the labor-only
contractor's employees and thus solidarity liable with the labor-only contractor for all its
obligations under the law (Alilin v. Petron Corporation).  Under no circumstance shall the
principal be considered as indirect employer of such workers. This is clear under the 2nd
paragraph of Article 106 of the Labor Code and its Implementing Rules.  The labor-only
contractor is considered merely an agent of the
principal and the latter is responsible to the employees of the labor-only contractor as if such
employees had been directly employed by the principal. The principal therefore becomes
solidarily liable with the labor-only contractor for all the rightful claims of the labor-only
contractor's employees. (San Miguel Corporation v. MAERC Integrated Services Inc.,)
 
JD2C BANTA, Allen
782. Which of the statements is correct?
Statement 1: Payment made by one of the solidary debtors extinguishes the obligation.
Statement 2: If two or more solidary debtors offer to pay, the creditor may choose which offer to
accept.

A. Only Statement 1
B. Both statements
C. Only Statement 2
D. None of the statements

Rationale: Article 1217 of the Civil Code: Payment made by one of the solidary debtors
extinguishes the obligation. If two or more solidary debtors offer to pay, the creditor may choose
which offer to accept.
JD2C BANTA, Allen
783. The contractual relationship between the principal and the contractor is governed by the
provisions of the:

A. Labor Code
B. Local Government Code
C. Civil Code
D. Cooperative Code

Rationale: The contractual relationship between the principal and the contractor is governed by
the provisions of the Civil. Code and not the Labor Code (Section 5(b), Department Order 18-A,
Series of 2011 [Nov. 14, 2011]).
JD2C BARTON, Lowell
784
Under what circumstance/s can the contractor seek reimbursement from the principal?

A. When the principal paid the wages yet the contractor paid on its own
B. When the contractor paid the difference between the new minimum wage and
old minimum wage
C. Overtime pay of the workers
D. All of the above
E. None of the choices
Rationale:
In the event that the principal or client fails to pay the prescribed wage rates, the service
contractor shall be jointly and severally liable with his principal or client. The conclusion that
the right of the contractor (as principal debtor) to recover from the principal (as solidary co-
debtor) arises only if he has paid the amounts for which both of them are jointly and severally
liable is in line with Article 1217 of the Civil Code.
JD2C BARTON, Lowell
785
When a dispute arises from the Service Contract between the principal and the contractor, who
has jurisdiction over the issue?

A. Labor Arbiter
B. NLRC
C. Regional Trial Court
D. Municipal Trial Court
E. None of the above
Rationale:
It is well settled in law and jurisprudence that where no employer-employee relationship exists
between the parties and no issue is involved which may be resolved by reference to the Labor
Code, other labor statutes or any collective bargaining agreement, it is the RTC that has
jurisdiction. The usual complaint filed in connection with the Service Contract does not seek any
relief under the Labor Code but seeks payment of a sum of money and damages on account of
the principal's alleged breach of its obligation under their Service Contract. The action is within
the realm of civil law; hence, jurisdiction over the case belongs to the regular courts.
JD2C BAWING, Casper
786. ___________________ are individuals with special skills, expertise or talent enjoy the
freedom to offer their services.
a. Independent Contractors
b. Regular Employees
c. Irregular Employees
d. Staffs
 
RATIONALE:
 the Supreme Court ruled: JOSE Y. SONZA, Petitioner, vs. ABS-CBN BROADCASTING
CORPORATION, Respondent.
"Individuals with special skills, expertise, or talent enjoy the freedom to offer their services are
independent contractors. The right to life and livelihood guarantees this freedom to contract as
independent contractors."
JD2C BAWING, Casper 
787. 
Statement 1: Independent Contractors are not employees.
Statement 2: Independent contractors works generally independently from the active control of
the principal as to the means and methods of performing the work since the principal is interested
only in the results of his work.
a. Both Statements are correct.
b. Both Statements are incorrect.
c. S1 is correct; S2 is incorrect.
D. S1 is incorrect; S2 is correct.
 
RATIONALE:
 the Supreme Court ruled:
“Fourth. As earlier opined, of the four elements of the employer-employee relationship, the
‘control test’ is the most important. Compared to an employee, an independent contractor is one
who carries on a distinct and independent business and undertakes to perform the job, work, or
service on its own account and under its own responsibility according to its own manner and
method, free from the control and direction of the principal in all matters connected with the
performance of the work except as to the results thereof. Hence, while an independent contractor
enjoys independence and freedom from the control and supervision of his principal, an employee
is subject to the employer’s power to control the means and methods by which the employee’s
work is to be performed and accomplished.
JD2C BONIOG, Melchor
788. Independent contractors are not to be treated as employees of the hiring entity.
This is so because of the following distinguishing features between them EXCEPT:
a. On entitlement to prescribed minimum wage and labor standards benefits 
b. On liability for SSS, PhilHealth, Pag-IBIG and the like 
c. On special talents and skills
d. On the required qualifications for education and skills. 
e. On how work is accomplished 
Rationale:
On entitlement to prescribed minimum wage and labor standards benefits — The former is
entitled to the mandated wage increases and the benefits prescribed by labor standards
legislations like overtime pay, night differential pay, service incentive leave and the like; while
the latter is paid his compensation in accordance with the terms and conditions of the contract. 
On liability for SSS, PhilHealth, Pag-IBIG and the like. — The formers wage or salary is
subject to deductions for SSS, PhilHealth and Pag-IBIG; while fees paid to the latter are not in
any way subject to any deductions therefor. 
On the required qualifications for education and skills. - The former is hired on the basis of
minimum educational and experience qualifications; while the latter is engaged based on his
specialized talent, skills and expertise. 
On how work is accomplished. - The former accomplishes his assigned work in the manner the
employer has prescribed and directed; while the latter has the right and authority to decide on the
means and manner of accomplishing his work without the active participation and direction of
the principal who, as earlier pointed out, is only interested in the results of the engagement. 

JD2C BONIOG, Melchor

 789. Statement 1: Consultancy is one area of independent contracting. 
Statement 2: Consultancy services are not considered government service and a consultant is
considered a government employee. 
Statement 3: By definition, a "consultant" is one who provides professional advice on matters
within the field of his special knowledge, expertise or training. 
a. All statements are True
b. All Statements are False
c. Only Statement 1 is False
d. Only Statement 2 is False
e. Only Statement 3 is False
 
Rationale:
CONSULTANCY, A KIND OF INDEPENDENT CONTRACTING. 
Consultancy is one area of independent contracting. However, unlike independent contracting,
the Labor Code or any other law does not embody any provision specifically dwelling on
consultancy work, its nature and legal features and requisites. Jurisprudence likewise does not
count of any case involving the issue of consultancy in the private sector. Guidance, however,
may be drawn from jurisprudence involving consultancy in the public sector. 
By definition, a "consultant"  is one who provides professional advice on matters within the field
of his special knowledge, expertise or training. There is no employer-employee relationship in
the engagement of a consultant but that of client-professional relationship. Thus, consultancy
services are not considered government service and a consultant is not considered a government
employee. Consequently, a contract for consultancy services is not submitted to the (Civil
Service] Commission for approval. Interestingly, this definition is practically the same as that
in Webster's Third New International Dictionary which gives the commonly understood
definition of a "consultant" as "one who gives professional advice or services regarding matters
in the field of his official knowledge or training.'' 

JD2C CALIAG, Christian

PAGE 790
The following are hallmark cases decided by the Supreme Court where the individuals were
declared as independent contractors, EXCEPT: 
 
A. Sonza v. ABS-CBN Broadcasting Corporation, G.R. No. 138051, June 10, 2004
B. Orozco v. The Fifth Dvision of the Honorable Court Appeals, G.R No.155207, Aug.13, 2008
C. Jose Mel Bernarte v. Philippine Basketball Association, G.R. No. 192084, Sept. 14,2011
D. PCI Automation Centa, Inc v. NLRC, GR No. 115920, Jan. 29,1996
 
RATIONALE: In Sonza vs. ABS-CBN, the Supreme Court, after using the four-fold test of
employment relationship, concluded that petitioner Sonza was not an employee of respondent
ABS-CBN but an independent contractor thereof as he possesses unique skills, expertise or talent
that distinguish him from ordinary employees. In Orozco vs. CA, respondent PDI was not
involved in the actual performance that produced the finished product. It only reserved the right
to shorten petitioner's articles based on the newspaper's capacity to accommodate the same. This
fact was not unique to petitioner's column. It is a reality in the newspaper business that space
constraints often dictate the length of articles and columns, even those that regularly appear
therein. In Bernarte vs. PBA, the Supreme Court, took the following circumstances as indicators
that petitioner is an independent contractor: (1) the referees are required to report for work only
when PBA games are scheduled, which is three times a week spread over an average of only 105
playing days a year, and they officiate games at an average of two hours per game; and (2) the
only deductions from the fees received by the referees are withholding taxes. In other words,
unlike regular employees who Ordinarily report for work eight hours per day for five days a
week, petitioner is required to report for work only when BPA games are scheduled three times a
week at two hours per game.
 

JD2C CALIAG, Christian

PAGE 791
STATEMENT I: The engagement of certain professionals like lawyers and doctors on a retainer
fee basis constitutes an independent contracting arrangement.
STATEMENT II: As such, they may hire their own staff without the latter becoming employees
of the hospital.
 
A. Both statements are correct
B. Both statements are incorrect
C. Statement I is correct; Statement II is incorrect
D. Statement II is correct; Statement I is incorrect
 
RATIONALE: The most appropriate illustrative case on this point is Escasinas v. Shangri-La’s
Mactan Island Resort, GR. No. 178827, March 4, 2009. Respondent doctor was engaged on
retainer fee basis pursuant to Article 163 [157] of the Labor Code which requires that an
employer which employs more than 200 workers, should ‘furnish’ its employees with the
services of a full time registered nurse, a part-time physician and dentist, and an emergency
clinic, engaged the services of respondent doctor who, in turn hired as petitioners as full-time
registered nurses] where respondent doctor , who was engaged on a retainer fee basis, was
declared an independent contractor and the employer of the petitioners nurses and not the other
respondents hotel resort. With respect to the supervision and control of the nurses and clinic
staff, it is not disputed that a document, 'Clinic Policies and Employee Manual* claimed to have
been prepared by respondent doctor exists, to which petitioners gave their conformity and in
which they acknowledged their co-terminus employment status. It is thus presumed that said
document, and not the employee manual being followed by Shangri-La’s regular workers,
governs how they perform their respective tasks and responsibilities.

JD2C CATACUTAN, Alkrissa

792.
Statement 1. The practice of having fixed term contracts in the industry does not automatically
make all talent contracts valid and compliant with labor law.
Statement 2. The assertion that a talent contract exists does not necessarily prevent a regular
employment status.
a. Only Statement 1 is correct
b. Only Statement 2 is correct
c. Both are wrong
d. Both are true
RATIONALE:
Dumpit-Murillo v. CA, [ GR No. 164562, June 8, 2007] where petitioner was hired by
Associated Broadcasting Company (ABC) as a newscaster and co-anchor for Balitang- Balita, an
early evening news program and later for the program "Live on Five." After four years of
repeated renewals, petitioner's talent contract expired and it was no longer renewed despite
demand from petitioner. She claimed that shew was a regular employee and thus entitled to be
reinstated, paid full wages and the like. Her demands were not met hence, she filed a complaint
for illegal dismissal. The High Court, in ruling that she as illegally dismissed, affirmed
petitioner’s contention that she was a regular employee. The practice of having fixed term
contracts in the industry does not automatically make all talent contracts valid and
compliant with labor law. The assertion that a talent contract exists does not necessarily
prevent a regular employment status. It distinguished this case from Sonza how to perform his
job. How Sonza delivered his lines, appeared on television, and sounded on radio were outside
the television station’s control. Sonza had a free hand on what to say or discuss in his shows
provided he did not attack the television station or interests. Clearly, the television station did not
exercise control over the means and methods of the performance of petitioner’s work.
Noteworthy, too, it the comparatively low Php28,000 monthly pay of petitioner vis-à-vis the
Php300,000 a month salary of Sonza that all the more bolsters the conclusion that petitioner was
not in the same situation as Sonza.

JD2C CATACUTAN, Alkrissa

793.
A project employee or a member of a workpool may acquire a status of a regular employee when
the following concur:
Statement 1: there is continuous rehiring of project employees even after cessation of the project
and the tasks performed by the allege “project employee” are vital, necessary and indispensable
to the usual business or trade of his employer.
Statement 2: there is continuous rehiring of project employees even before cessation of the
project and the tasks performed by the allege “project employee” are vital, necessary and
indispensable to the usual business or trade of his employer.
a. Only Statement 1 is correct
b. Only Statement 2 is correct
c. Both are wrong
d. Both are true
RATIONALE:
ABS-CBN Broadcasting Corporation v. Marquez, GR No. 167638, June 22, 2005, pp 5-6
(Unsigned Resolution) SC E-Library. Petitioner hired the services of respondents on various
dates starting December, 1994 to undertake the production in the Cebuano dialect of television
serial programs for petitioner’s week-day afternoon time slots in Cebu. Respondents we assigned
among three production groups, each with its own set of directors, writers, videographers, lights
men, editors, actors, and utility personnel. Each production group was given a weekly budget,
initially at Php30,000.00 was later increased to Php40,000.00] where respondents were declared
as regular employees because their continuous engagement by petitioner from one production
after another, for more than five (5) years, made them part of petitioner’s work pool who cannot
be separated from the service without cause as they are considered regular. A project employee
or a member of a workpool may acquire a status of a regular employee when the following
concur: there is continuous rehiring of project employees even after cessation of the project and
the tasks performed by the allege “project employee” are vital, necessary and indispensable to
the usual business or trade of his employer.

JD2C COLINGEY, Rhealyn

Page 794
One of the major distinctions between a legitimate contractor and a private recruitment and
placement agency are as follows:
Statement I: A contractor directly undertakes a specific job, work or service for a principal and
for this purpose, employs its own workers.
Statement II: A private recruitment and placement agency cannot be a contractor since it simply
recruits workers for the purpose of placing them with another employer and as a consequence
thereof, the workers recruited will not become its employees.
a. Only Statement I is correct
b. Only Statement II is correct
c. Both Statements I and II are correct
d. Both Statements I and II are incorrect
Rationale: The major distinctions between a legitimate contractor and a private recruitment and
placement agency are as follows:

1. A contractor directly undertakes a specific job, work or service for a principal and for
this purpose, employs its own workers; while a private recruitment and placement
agency cannot be a contractor since it simply recruits workers for the purpose of
placing them with another employer and as a consequence thereof, the workers
recruited will not become its employees.
 2. A contractor is governed by Articles 106 to 109 of the Labor Code and its
implementing rules enunciated in Department Order No. 174, Series of 2017. On the
other hand, a private recruitment and placement agency is governed by Articles 25 to
39 of the Labor Code and the rules implementing these articles.
3. A contractor is mandatorily required to register with the DOLE and its failure to do
this will give rise to the presumption that it is a labor-only contractor. [Section 14,
Ibid]. A private recruitment and placement agency. On the other hand, needs an
authority or license E0111 DOLE to legally undertake recruitment and placement
activities. [No. 3 DOLE Primer on Contracting and Subcontracting, Effects of
Department Order No. 3, Series of 2001]
 

JD2C COLINGEY, Rhealyn

Page 795
The prohibition of a contractor or subcontractor that merely recruits and places workers to a
client is engaged in _________.
a. labor-only contracting.
b. Private recruitment
c. Placement
d. Legal Recruitment and placement activities
Rationale: Department Order No, 174, Series of 2017, explicitly provides that contractors and
subcontractors are prohibited from engaging in recruitment and placement activities as defined in
Article 13(1)) of the Labor Code, whether for local or overseas employment. The reason for this
prohibition is clear: a contractor or subcontractor that merely recruits and places workers to a
client is engaged in labor-only contracting.
JD2C DAO-AYAN, Ted
796. Which among the following is not an element of labor-only contracting 
A. the contractor or subcontractor does not have substantial capital or investment which relates
to the job, work, or service to be performed and the employees recruited, supplied, or placed by
such contractor or subcontractor are performing activities that are directly related to the main
business of the principal
B. the contractor does not exercise the right to control
over the performance of the work of the contractual employee
C. Both A and B
D. Only A
E. Only B
Rationale: labor-only contracting shall refer to an arrangement where
the contractor or subcontractor merely recruits, supplies, or places workers to perform a job,
work, or service for a principal, and any of the following elements are present;
a. the contractor or subcontractor does not have substantial capital or investment which relates to
the job, work, or service to be performed, and the employees recruited, supplied, or placed by
such contractor or subcontractor are performing activities which are directly related to the main
business of the principal; or
b. the contractor does not exercise the right to control
over the performance of the work of the contractual employee]
 
JD2C DAO-AYAN, Ted
797. Which among the following is true. 
I. Principal not liable for illegal dismissal of legitimate contractor's employees 
II. The mere expiration of the Service Agreement shall not be deemed as a termination of
employment of the contractor/subcontractor’s employees who are regular employees of the latter.
A. Only Statement I is true
B. Only Statement II is true
C.Both Statements are true
D.None of the statements are true
 
Rationale 
Statement I
Unlike in labor-only contracting, the employer-employee relationship exists not between the
principal and the contractor’s employees farmed out to it by the contractor but only between the
contractor and the said employees it engaged to perform the specific job, work or service being
contracted with the principal. The principal therefore is not in any way liable for the illegality of
dismissal effected by a legitimate contractor of its contractor’s employees.
Statement II 
Where the termination results from the expiration of the Service Agreement, or from the
completion of the phase of the job or work for which the employee is engaged, the latter may opt
to wait for re-employment within three (3) months to resign and transfer to another contractor-
employer. Failure of the contractor to provide new employment for the employee shall entitle the
latter to payment of separation benefits as may be provided by law or the Service Agreement,
whichever is higher, without prejudice to his/her entitlement to completion bonuses or other
emoluments, including retirement benefits whenever applicable. The mere expiration of the
Service Agreement shall not be deemed as a termination of employment of the
contractor/subcontractor’s employees who are regular employees of the latter.
JD2C DELA CRUZ, Harold
798. RULE ON OBSERVANCE OF SUBSTANTIVE AND PROCEDURAL DUE PROCESS
IN TERMINATION OF EMPLOYMENT UNDER LEGITIMATE CONTRACTING
ARRANGEMENTS: 
I. THE JOB CONTRACTOR HAS THE DUTY TO OBSERVE DUE PROCESS. 
II. PROCEDURAL DUE PROCESS IN EMPLOYMENT TERMINATION.
 
a. Statement I is true; Statement II is false
b. Statement I is false; Statement II is true
c. Both statements are true
d. Both statements are false
 
Rationale:
In the case of Consolidated Building Maintenance, Inc. v. Asprec, Jr., GR No. 217301, June
6, 2018, there being no employment contract nor any form of privity of contract between the
principal and the legitimate job contractor’s employees fanned out by the latter to the former, the
right to impose disciplinary sanctions against any erring employee of the job contractor,
including the imposition of preventive suspension or the penalty of dismissal, solely and
exclusively belongs to the job contractor which, for all legal intents and purposes, is considered
as the direct employer of such employees. It is thus incumbent on the job contractor to fully
comply with both the substantive and procedural aspects of due process as required by law
in the termination of employment of its employees farmed out to the principal.
 
JD2C DELA CRUZ, Harold 
799. TERMINATION OF EMPLOYMENT OF CONTRACTOR’S EMPLOYEES UNDER A
LABOR-ONLY CONTRACTING ARRANGEMENT:
I.  DISMISSAL BY LABOR-ONLY CONTRACTOR AND NOT BY PRINCIPAL;
II. PRINCIPAL'S DUTY TO COMPLY WITH PROCEDURAL DUE PROCESS AND
PAYMENT OF MONETARY CLAIMS;
III. PRINCIPAL HAS BURDEN TO PROVE VALIDITY OF DISMISSAL.
 
a. Statement I and II are true; Statement III is false
b. Statement I and III are true; Statement II is false
c. All statements are true
d. All statements are false
 
Rationale: 
TERMINATION OF EMPLOYMENT OF CONTRACTOR’S EMPLOYEES UNDER A
LABOR-ONLY CONTRACTING ARRANGEMENT:
1.  DISMISSAL BY LABOR-ONLY CONTRACTOR AND NOT BY PRINCIPAL;
2. PRINCIPAL'S DUTY TO COMPLY WITH PROCEDURAL DUE PROCESS AND
PAYMENT OF MONETARY CLAIMS;
3. PRINCIPAL HAS BURDEN TO PROVE VALIDITY OF DISMISSAL;
4. TERMINATION OF SERVICE CONTRACT NOT A JUST OR AUTHORIZED CAUSE TO
TERMINATE EMPLOYMENT;
5. PRINCIPAL'S DUTY TO REINSTATE AND SATISFY OTHER AWARDS;
6. LABOR-ONLY CONTRACTOR NEED NOT BE IMPLEADED IN COMPLAINT;
7. ENTITLEMENT TO NOMINAL DAMAGES FOR LACK OF DUE PROCESS.
JD2C DIAUS, Jake
800
According to Coca-Cola v. De la Cruz, (Coca-Cola Bottlers Phils. Inc v. De la Cruz,  G.R. No.
184977, Dec. 7, 2009.) where the main issue is labor contracting and a labor-only contracting
situation is found to exist, the question of whether or not the purported contractors are necessary
parties is a non-issue.
A. False
B. False with exceptions
C. True
D. True with reservations
Rationale:
LABOR-ONLY CONTRACTOR NEED NOT BE IMPLEADED IN COMPLAINT.
According to Coca-Cola v. De la Cruz, (Coca-Cola Bottlers Phils. Inc v. De la Cruz,  G.R. No.
184977, Dec. 7, 2009.) where the main issue is labor contracting and a labor-only contracting
situation is found to exist, the question of whether or not the purported contractors are necessary
parties is a non-issue; these purported contractors are mere representatives of the
principal/employer whose personality, as against that of the workers is merged with that of the
principal/employer. Thus, this issue is rendered academic by the conclusion that labor-only
contracting exists.

JD2C DIAUS, Jake

801. 
The following are reliefs of illegally dismissed contractor’s employees EXCEPT:
A. Reinstatement without loss of seniority and other privileges
B. Full backwages, inclusive of allowances
C. Illegal interest on separation pay, backwages and other monetary awards
D. Other benefits or their monetary equivalent
Rationale:
RELIEFS OF ILLEGALLY DISMISSED CONTRACTOR'S EMPLOYEES.
Irrespective of whether the arrangement is a legitimate contracting arrangement or a labor-only
contracting scheme, a contractor's employee who is illegally dismissed is entitled to all the reliefs
under Article 294 [279] of the Labor Code, namely;
1. Reinstatement without loss of seniority and other privileges;
2. Full backwages, inclusive of allowances; and
3. Other benefits or their monetary equivalent. (Blue Angel Manpower and Security
Services Inc. v. Hon. CA, G.R. No. 161196, July 28, 2008.)
In addition to the foregoing, the following reliefs granted under well-established jurisprudence,
are all available to an illegally dismissed contractor's employee:
1. Payment of separation pay in lieu of reinstatement, if the circumstances obtaining in a
case do not warrant the reinstatement of the illegally dismissed employee, such as, inter
alia, when there is strained relations between the employer and the employee.
2. Award of penalty in the form of nominal damages in cases of termination due to just or
authorized cause but without observance of procedural due process per Agabon v. NLRC.
(G.R. No. 158693, Nov. 17, 2004)
3. Moral and exemplary damages and attorney's fees.
4. Legal interest on separation pay, backwages and other monetary awards. (The Hon.
Secretary of Labor and Employmeny v. Panay Veteran’s Security and Investigation
Agency Inc., G.R. No. 167708, Aug. 22, 2008; Sy v. CA, G.R. No. 142293, Feb. 27,
2003; Austria v. NLRC, G.R. No. 123646, July 14, 1999; Magos v. NLRC, G.R. No.
123421, Dec 28, 1998.)
JD2C DOMANTAY, Shelou
Page 802
The term "_____________" is defined in Article 97(f) of the Labor Code as the "the
remuneration of earnings, however designated, capable of being expressed in terms of money,
whether fixed or ascertained on a time, task, piece or commission basis, or other method of
calculating the unwritten contract of employment for work done or to be done, or for services
rendered or to be rendered and includes the fair and reasonable value, as determined by the
Secretary of Labor, of board, lodging, or other facilities customarily furnished by the employer
to the employee."
a) Wage
b) Salary
c) Compensation
d) Labor Service
 
Rationale:
The term "wage"  is defined in Article 97(f) of the Labor Code as the "the remuneration of
earnings, however designated, capable of being expressed in terms of money, whether fixed or
ascertained on a time, task, piece or commission basis, or other method of calculating the
unwritten contract of employment for work done or to be done, or for services rendered or to be
rendered and includes the fair and reasonable value, as determined by the Secretary of Labor, of
board, lodging, or other facilities customarily furnished by the employer to the employee."

JD2C DOMANTAY, Shelou 

Page 803
In this case, the Supreme Court ruled that an employee who was illegally dismissed by the
contractor should be ordered reinstated to his former position or its equivalent without loss of
seniority rights not with the principal but with the contractor.
 
a) Filipinas Synthetic Fiber Corporation v. NLRC, G.R. No. 113347, June 14, 1996
b) CAILO/Henry Deferia v. NLRC, G.R. Nos. 78713 and 82718, Feb. 27, 1991
c) Rosewood Processing Inc. v. NLRC, G.R. No. 116476-84, May 21, 1998
d) Sentinel Security Agency v. NLRC, G.R. No. 122468, Sept. 3, 1998
 
Rationale:
An employee who was illegally dismissed by the contractor should be ordered reinstated to his
former position or its equivalent without loss of seniority rights not with the principal but with
the contractor. (Filipinas Synthetic Fiber Corporation v. NLRC, G.R. No. 113347, June 14,
1996.)

JD2C DUCAY, Jamie

804. The standard Service Agreement prescribed under Department Order No 18-A requires that
a provision on the issuance of the bond/s as defined in Section 3(a) thereof be included therein. It
should be renewable _________.
a. Every Year
b. Every two years
c. Every five years
d. Every ten years.
Rationale:
The standard Service Agreement prescribed under Department Order No 18-A requires
that a provision on the issuance of the bond/s as defined in Section 3(a) thereof be included
therein. It should be renewable every year.

JD2C DUCAY, Jamie

805. In accordance to: __________. In the event of bankruptcy or liquidation of an
employer's business, his workers shall enjoy first preference as regards wages due them
for services rendered during the period prior to the bankruptcy or liquidation, any
provision to the contrary notwithstanding. Unpaid wages shall be paid in full before other
creditors may establish any claim to a share in the assets of the employer,
a. Article 110
b. Article 220
c. Article 115
d. Article 120
Rationale:
Article 110. Worker Preference in Case of Bankruptcy. — In the event of bankruptcy or
liquidation of an employer's business, his workers shall enjoy first preference as regards their
wages and other monetary claims, any provisions of law to the contrary notwithstanding. Such
unpaid wages and monetary claims shall be paid in full before claims of the government and
other creditors may be paid. (As amended by Section 1, R.A. No. 6715, March 21, 1980).)

JD2C ESTRELLA, Cherlyn

806. In this case, it was held that even if the employer's properties are encumbered by
means of a mortgage contract, still the workers' wages which enjoy first preference in
case of bankruptcy or liquidation are duly protected by an automatic first lien over
and above all other encumbrances on said properties.

A. Republic v. Peralta
B. Development Bank of the Philippines (MP) v Hon. Labor Muter Ariel C. San
C. Philippine Commercial and Industrial Bank (PCIB) v. NAMAWU-IF
D. Bolinao, Jr. v. Padolina
 
Rationale: In Philippine Commercial and Industrial Bank (PCIB) v. NAMAWU-IF, G R. No. L-
50402 which was decided under the regime of Article 110 prior to its amendment by R.A. No.
6715 in March 21, 1989, it was held that even if a secured creditor acquires a debtor company's
assets, it is subject to the workers' right to obtain full payment of their wages under Article 110.
Even if the employer's properties are encumbered by means of a mortgage contract, still the
workers' wages which enjoy first preference in case of bankruptcy or liquidation are duly
protected by an automatic first lien over and above all other encumbrances on said properties.
Otherwise, workers' wages may be imperiled by foreclosure of mortgages and as a consequence,
the afore-cited provision of the Labor Code would be rendered meaningless.
 

JD2C ESTRELLA, Cherlyn

807. In case of bankruptcy or liquidation of the employer's business, the unpaid wages
and other monetary claims of the employees shall be given __________ and shall be
paid in full before the claims of government and other creditors may be paid

A. First Preference
B. Second Preference
C. Third Preference
D. Fourth Preference
 
Rationale: Section 10. Payment of Wages and Other Monetary Claims in Case of Bankruptcy, -
In case of bankruptcy or liquidation of the employer's business, the unpaid wages and other
monetary claims of the employees shall be given first preference and shall be paid in full before
the claims of government and other creditors may be paid. (Rule VIII, Book III of the Rules to
Implement the Labor Code, as amended on May 24, 1989)
JD2C FAGTO, Therese
808

What proceedings provides the proper venue for the enforcement of a creditor's preferential
right?

a. bankruptcy
b. insolvency
c. general judicial liquidation
d. All of the choices

Rationale: In DBP v. NLRC GR. No. 86227, bancruptcy, insolvency and general judicial
liquidation proceedings provide the only proper venue for the enforcement of a creditor's
preferential rights such as that established in Article 110 , for these are in rem proceedings
binding against the whole world where all persons having any interest in the assets of the debtor
are given the opportunity to establish their respective credits.
JD2C FAGTO, Therese
809

I. Article 110 does not purport to create a lien in favor of workers or employees
for unpaid wages either upon all of the properties or upon any particular
property owned by their employer.
II. Claims for unpaid wages do not therefore fall at all within the category of
specially preferred claims established under Articles 2241 and 2242 of the
Civil Code, except to the extent that such claims for unpaid wages are already
covered by Article 2241 number 6

A. Only SI is true.
B. Only SII is true.
C. Both statements are true.
D. Both statements are false.

RATIONALE: The right of preference as regards unpaid wages recognized by Article 110, as
amended, does not constitute a lien on the property of the insolvent debtor in favor of the
workers but a right to a first preference in the discharge of the funds of the judgment debtor.
(Development Bank of the Philippines v. NLRC, G.R. No. 106655, Sept 1, 1994, 236 SCRA 117;
New Pangasinan Review, Inc. v. NLRC, GR No. 85939, April 19, 1991, 196 SCRA 55). Simply
put, Article 110 does not purport to create a lien in favor of workers or employees for unpaid
wages either upon all of the properties or upon any particular property owned by their
employer. Claims for unpaid wages do not therefore fall at all within the category of specially
preferred claims established under Articles 2241 and 2242 of the Civil Code, except to the extent
that such claims for unpaid wages are already covered by Article 2241 number 6: "claims for
laborer's wages, on the goods manufactured or the work done;" or by Article 2242, number 3:
"claims of laborers and other workers engaged in the construction, reconstruction or repair of
buildings, canals and other works, upon said buildings, canals or other works."

JD2C FERNANDEZ, Keren

810
Which of the following statements are correct?

A. In cases of unlawful withholding of wages, the culpable party may be assessed

attorney’s fees equivalent to ten percent of the amount of wages recovered.
B. It shall be unlawful for any person to demand or accept, in any judicial or
administrative proceedings for the recovery of wages, attorney’s fees which exceed
ten percent of the amount of wages recovered.
C. Only statement I is correct
D. Only statement II is correct
E. Both statements are correct
F. None of the statements are correct
 
Basis:
Article 111 of the Labor Code
Attorney's Fees. — (a) In cases of unlawful withholding of wages, the culpable party may be
assessed attorney's fees equivalent to ten percent of the amount of wages recovered.
(b) It shall be unlawful for any person to demand or accept, in any judicial or administrative
proceedings for the recovery of wages, attorney's fees which exceed ten percent of the amount of
wages recovered.
JD2C FERNANDEZ, Keren
811
In its ________________ concept, an attorney's fee is the reasonable compensation paid to a
lawyer by his client for the legal services he has rendered to the latter.

A. extraordinary
B. ordinary
C. complementary
D. exceptional
 
Basis/Rationale:
TWO (2) CONCEPTS OF ATTORNEY'S FEES.
ORDINARY CONCEPT OF ATTORNEY'S FEES.
In its ordinary concept, an attorney's fee is the reasonable compensation paid to a lawyer by his
client for the legal services he has rendered to the latter. The basis of this compensation is the
fact of his employment by, and his agreement with, the client. Generally, the amount of
attorney‘s fees due is that stipulated in the retainer agreement which is conclusive as to the
amount of the lawyer‘s compensation. In the absence thereof, the amount of attorney‘s fees is
fixed on the basis of quantum meruit, i.e., the reasonable worth of the attorney’s services. Courts
may ascertain, if the attorney‘s fees are found to be excessive, what is reasonable under the
circumstances. In no case, however, must a lawyer be allowed to recover more than what is
reasonable.
EXTRAORDINARY CONCEPT OF ATTORNEY’S FEES.
In its extraordinary concept an attorney’s fee is an indemnity for damages ordered by the court to
be paid by the losing party in a litigation. The basis of this is any of the cases provided by law
where such award can be made, such as those authorized in Article 2208 of the Civil Code,
specifically paragraph 7 of Article 2208.
JD2C GOZUN, Reynan
812.
To justify the award of attorney’s fees, there need only be a showing that the lawful wages were
not paid accordingly: However, in case the Court cannot find any claim or 
proof that the employer unlawfully withheld the wages of the employees, the grant of _____ %
attorney's fees in favor of the latter is not justified under the circumstances.
A.10%
B.15%
C.20%
D. 100%
Rationale.
In case the Court cannot find any claim or proof that the employer unlawfully withheld the
wages of the employees, the grant of 10%  attorney's fees in favor of the latter is not justified
under the circumstances. This holds true even in cases where claim for unpaid wages is not at
issue. So, even if the employer is adjudged guilty of ULP and the employees were each awarded
moral and exemplary damages, the 10% attorney’s fees cannot be awarded if there is no such
claim or proof that the employer unlawfully withheld their wages. The grant thereof in labor
cases under 
Article 1 11 is limited to cases of unlawful withholding of wages. 

JD2C GOZUN, Reynan

813.
Article 111 (b) is explicit in its prohibition against demanding or accepting in any judicial or
administrative proceedings for the recovery of wages, attorney’s fees which 
exceed ____ percent of the amount of wages recovered.
A.10%
B.15%
C.20%
D. 100%
Rationale.
Article 111 (b) is explicit in its prohibition against demanding or accepting. in any judicial or
administrative proceedings for the recovery of wages, attorney’s fees which exceed ten percent
(10%) of the amount of wages recovered. Consequently, in cases where the award of attorney‘s
fees is in excess of the 10% threshold, the Court has reduced it to 10%.
Article 111 does not prevent the court from fixing an amount lower than the 10% ceiling when
circumstances warrant it. A closer reading thereof would lead to the conclusion that the 10%
only serves as the maximum of the award that may be granted. With that, the Court is not tied to
award 10% attorney’s fees to the winning patty. Hence, reducing the attorney’s fees to 5% of the
total monetary award was deemed reasonable.

JD2C KANITENG, Eileen

814
The Labor Code prohibits the interference in the disposal of wages. Which of the following
statements are correct?
I. No employer shall oblige his employees to purchase goods from any other person.
II. No employer shall limit the freedom of any employee to dispose of his wages.
III. No employee shall be compelled to buy commodities from his employer.
IV. Violation of Article 112 (Non Interference in Disposal of Wages) has a penalty of not less
than P1,000.00 nor more than P10,000.00 or imprisonment of not less than three (3) months nor
more than three (3) years, or both such fine and imprisonment at the discretion of the court.
a. Statements I, II, III
b. Statements I and II
c. Statements I, II, III and IV
d. Statements I and III
Rationale:
All of the statements are correct. Article 112 of the Labor Code states that:
“Non Interference in Disposal of Wages- No employer shall limit or otherwise interfere with the
freedom of any employee to dispose of his wages. He shall not in any manner force, compel, or
oblige his employees to purchase merchandise, commodities or other property from any other
person, or otherwise make use of any store or services of such employer or any other person.”
Violations of Article 112 is penalized under Article 303 [288] of the Labor Code, with a fine of
not less than P1,000.00 nor more than P10,000.00 or imprisonment of not less than three (3)
months nor more than three (3) yeas, or both such fine and imprisonment at the discretion of the
court. 
 

JD2C KANITENG, Eileen

815
The general rule provided in the Labor Code is “No employer, in his own behalf or in behalf of
any person, shall make any deduction from the wages of his employees.” The following are the
exceptions to this rule, except: 
a. For union dues, in cases where the right of the worker or his union to check-off has been
recognized by the employer or authorized in writing by the individual worker concerned; and 
b. In cases where the worker is insured with his consent by the employer, and the deduction is to
recompense the employer for the amount paid by him as premium on the insurance
c. In cases where the employer is authorized by law or regulations issued by the Secretary of
Labor and Employment
d. None of the choices
Rationale:
The above exceptions (a,b,c) are all expressly stated under Article 113 of the Labor Code.  The
exceptions include deductions authorized by law such as insurance premiums, union dues, and in
all cases where the employer is authorized by law or regulations issued by the Secretary of Labor
and Employment. 

JD2C MADDARA, Maria

Page 816
All of which are permissible deductions on wages, except one:
a. Union service fee; 
b. Deduction for value of meal and other facilities; 
c. Deduction for premiums for Social Security Number, Medicare, employees’
compensation and Pag-ASA; 
d. Withholding tax mandated under the National Internal Revenue Code (NIRC);
e. All of the above
Rationale:
It should have been deduction for premiums for SSS, PhilHealth, employees’ compensation and
Pag-IBIG.

JD2C MADDARA, Maria

Page 817
True or False: Article 115 of the Labor Code, in relation to Article 114, imposes the requirement
that employee should be afforded of due process before any deduction from his deposits for the
actual amount of the loss or damage alleged to have been committed by him, may be made
therefrom. This presupposes, of course, that the deposits from which such deductions may be
taken are illegally allowed or permitted.

a. False. It should have been legally allowed or permitted.

b. False. It should have been Article 106 of the Revised Penal Code.
c. False. It should not be the actual amount, rather, it should be 1/3 of the actual amount.
d. True.
Rationale:
DUE PROCESS REQUIRES BEFORE DEDUCTION FROM DEPOSITS MAY BE VALIDLY
MADE.
Article 115, in relation to Article 114, simply imposes the requirement that due process should
first be afforded the employee before any deduction from his deposits for the actual amount of
the loss or damage alleged to have been committed by him, may be made therefrom. This
presupposes, of course, that the deposits from which such deductions may be taken are illegally
allowed or permitted.

JD2C MANODON, Val

818

In the event that a private security agency requires a cash deposit from its employees, the
maximum amount shall not exceed the employee’s one-month basic salary. The said cash deposit
may be deducted from the employee’s wages in an amount which shall not exceed _________of
the employee’s wages in a week
A.) 10%
B.) 20%
C.) 30%
D.) 15%
Rationale:
In the event that a private security agency requires a cash deposit from its employees, the
maximum amount shall not exceed the employee’s one-month basic salary. The said cash deposit
may be deducted from the employee’s wages in an amount which shall not exceed twenty
percent (20%) of the employee’s wages in a week.

JD2C MANODON, Val

819

Article 114 states that generally, deposits for loss or damages are not allowed except in cases
where the employer is engaged in such trades, occupations or business where the practice of
making deposits is a recognized one, or is necessary or desirable as determined by the _______
in appropriate rules or regulations.
A.) Secretary of the employer
B.) Employer
C.) Secretary of Labor
D.) Manager
Rationale:
"Article 113 Of Labor Code is clear that there are only three exceptions to the general rule that
no deductions from the employee's salaries can be made. The exception which finds application
in the instant petition is in cases where the employer is authorized by law or regulations issued
by the Secretary of Labor to effect the deductions. On the other hand, Article 114 states that
generally, deposits for loss or damages are not allowed except in cases where the employer is
engaged in such trades, occupations or business where the practice of making deposits is a
recognized one, or is necessary or desirable as determined by the Secretary of Labor in
appropriate rules or regulations.

JD2C PALANGEO, Jomilyn

820. This article of the Labor Code provides that it shall be unlawful for any person, directly or
indirectly, to withhold any amount from the wages of a worker or induce him to give up any part
of his wages by force, stealth, intimidation, threat or by any other means whatsoever without the
worker’s consent.
a. Article 116
b. Article 1
c. Article 11
d. Article 6
Rationale:
Article 116. Withholding of Wages and Kickbacks Prohibited. – It shall be unlawful for any
person, directly or indirectly, to withhold any amount from the wages of a worker or induce him
to give up any part of his wages by force, stealth, intimidation, threat or by any other means
whatsoever without the worker’s consent.
JD2C PALANGEO, Jomilyn
821. In this case, the court held that an employer cannot simply refuse to pay the wages or
benefits of its employee because he has either defaulted in paying a loan guaranteed by his
employer or violated their memorandum of agreement or failed to render an accounting of his
employer’s property.
a. Special Steel Products Inc v. VIllareal
b. Extraordinary Steel Products Inc. v. Villareal
c. Agabon v. Jaka
d. Bisig Manggagawa sa Tryco vs NLRC
Rationale:
As held in Special Steel, an employer has no legal authority to withhold the employee’s 13th
month pay and other benefits. What an employee has worked for, his employer must pay. Thus,
an employer cannot simply refuse to pay the wages or benefits of its employee because he has
either defaulted in paying a loan guaranteed by his employer or violated their memorandum of
agreement or failed to render an accounting of his employer’s property. (Special Steel Products,
Inc v. Villareal, G.R. No. 143304, July 08, 2004)
JD2C PALICAS, Shem
822.) The deduction from an employee’s salary for a due and demandable debt to an employer is
sanctioned under Article ____ of the Civil Code.
a. Art. 1706
b. Art. 1735
c. Art. 1789
d. Art. 1755
Rationale:
Article 1706. Withholding of the wages, except for a debt due, shall not be made by the
employer.
JD2C PALICAS, Shem
823.)  Article ___ of the Labor Code prohibits and considers it unlawful for any person, whether
the employer himself or his representative or an intermediary, to require that a deduction be
made or to actually make any deduction from the wages of any employee or worker, for the
benefit of such employer or his representative or an intermediary, as consideration for a promise
of employment or, when already employed, for the continuation or retention of such
employment.
a. Art. 117 
b. Art. 127
c. Art. 137
d. Art. 147
Rationale:
Article 117. Deduction to ensure employment. It shall be unlawful to make any deduction from
the wages of any employee for the benefit of the employer or his representative or intermediary
as consideration of a promise of employment or retention in employment.
JD2C PANGSIW, Elizabeth
824. ____________________ of the Labor Code prohibits and declares what is unlawful for the
employer to do to the employees.
a. Article 116
b. Article 117
c. Article 118
d. Article 119
Rationale:
The 2017 case of Panaligan v. Phyvita Enterpises G.R. No. 202086, June 21, 2017 Corporation
illustrates a situation where the employer was held to have violated Article 118 because its act of
dismissing the employees based on the unfounded ground of stealing payroll sheets after the
employees earlier filed a labor case against the employer “for underpayment of wages,
nonpayment of legal/special holiday, five-day service incentive leave pay, night shift differential
pay, no pay slip, signing of blank payroll, withheld salary due to non-signing of blank payroll”.
Taking into consideration the fact that the DOLE-NCR conducted an inspection of the
respondent’s on April 4, 2005 and petitioners were implicated in the alleged January 25, 2005
theft incident only thereafter, a reasonable inference can be made that petitioners’ termination of
employment may have been indeed a retaliatory measure designed to coerce them into
withdrawing their complaint for underpayment of wages and nonpayment of other labor standard
benefits. Such an act is proscribed by Article 118 of the Labor Code.
 
JD2C PANGSIW, Elizabeth
825. The following are examples of such statement, report or record required to be filed or kept
under the Labor Code are EXCEPT:
a. payrolls
b. production papers
c. time records
d. employment records
Rationale:
Article 119 prohibits and considers it unlawful for any person, whether employer or not, to make
any false statement, report or record required to be filed kept in accordance with and pursuant to
the provisions of the Labor Code, knowing such statement, report or record to be false in any
material respect (Section 13, Rule X, Book III, Rules to Implement the Labor Code).
JD2C PASCUA, Cedric
826. ______, otherwise known as the “Wage Rationalization Act,” created the National Wages
and Productivity Commission (NCWP) whose provision thereon is now enshrined in _______ of
the Labor Code.
A. R.A. 6272; Art 102
B. R.A. 6727; Art. 120
C. R.A. 6272; Art. 120
D. R.A. 6727; Art 102
RATIONALE: RA No. 6727, otherwise known as the “Wage Rationalization Act,” created the
National Wages and Productivity Commission (NCWP) whose provision thereon is now
enshrined in Art. 120 of the Labor Code. This law abolished the National Wages Council (NCW)
and the National Productivity Commission (NCP).
JD2C PASCUA, Cedric
827. The Commission shall be assisted by a/an _______ to be headed by a/an ______ and two
(2) Deputy Directors, who shall be appointed by the President of the Philippines upon the
recommendation of the Secretary of Labor and Employment. 
A. Administrative Committee; Managing Director 
B. Secretariat; Executive Director
C. Administrative Committee; Executive Director
D. Secretariat; Managing Director

RATIONALE: Article 121 of the Labor Code provides that the Commission shall be assisted by
a Secretariat to be headed by an Executive Director and two (2) Deputy Directors, who shall be
appointed by the President of the Philippines' upon the recommendation of the Secretary of
Labor and Employment.
JD2C PAYABYAB, Queensy
828. The National Wages and Productivity Commission (NWPC) is composed of the
following except:
A. Secretary of labor and Employment as ex-officio chairman
B. Director-General of the National Economic and Development Authority (NEDA) as ex-
officio vice-chairman
C. Two (2) members each from workers, and employers, sectors who shall be appointed by
the President of the Philippines upon recommendation of the Secretary of Labor and
Employment to be made on the basis of the list of nominees submitted by the workers'
and employers' sectors, respectively, and who shall serve for a term of five (5) years.
D. Labor Arbiter
E. Executive Director of the Commission.
Rationale: The National Wages and Productivity Commission (NWPC) is composed of the
following:
2) Director-General of the National Economic and Development Authority (NEDA)
as ex-officio vice-chairman;
3) Two (2) members each from workers, and employers, sectors who shall be -
appointed by the President of the Philippines upon recommendation of the Secretary of Labor
and Employment to be made on the basis of the list of nominees submitted by the workers' and
employers' sectors, respectively, and who shall serve for a term
of five (5) years; and
4) Executive Director of the Commission.

JD2C PAYABYAB, Queensy

 829. Statement 1. the grant to the NWPC of primary jurisdiction to review regional
wage levels set by the RTWPBs to determine if these are in accordance with prescribed
guidelines and national development plans.
Statement 2. The wage orders issued by the Regional Boards could be reviewed by the NWPC
motu proprio upon appeal
A. Statement 1 is true
B. Satement 2 is true
C. Both statement are false
D. Both statement are true
Rationale: Likewise explicit in paragraph (d) of Article 121 is the grant to the NWPC of primary
jurisdiction to review regional wage levels set by the RTWPBs to determine if these are in
accordance with prescribed guidelines and national development plans. The wage orders issued
by the Regional Boards could be reviewed by the NWPC motu proprio upon appeal.

JD2C RAMIREZ, Maria

830.
In the creation of Regional Tripartite ages and Productivity Boards, which of the following
statement is correct relative to the powers and functions in the respective territorial jurisdictions
of the Regional Boards?
a. To undertake studies, researches, and surveys necessary for the attainment of their functions,
objectives and programs, and to collect and compile data on wages' incomes, productivity and
other related information and periodically disseminate the same;
b. To coordinate with the other Regional Boards as may be necessary to attain the policy and
intention of this Code;
c. To receive, process and act on applications for exemption from prescribed wage rates as may
be provided by law or any Wage Order; and
d. To exercise such other powers and functions as may be necessary to carry out their mandate
under this Code.
e. All of the above.
 
RATIONALE:
The Regional Boards shall have the following powers and functions in their respective
territorial jurisdictions:
(a) To develop plans, programs and projects relative to wages, incomes and productivity
improvement for their respective regions;
(b) To determine and fix minimum wage rates applicable in their regions, provinces or industries
therein and to issue the corresponding wage orders, subject to guidelines issued by the
Commission;
(c) To undertake studies, researches, and surveys necessary for the attainment of their functions,
objectives and programs, and to collect and compile data on wages' incomes, productivity and
other related information and periodically disseminate the same;
(d) To coordinate with the other Regional Boards as may be necessary to attain the policy and
intention of this Code;
(e) To receive, process and act on applications for exemption from prescribed wage rates as may
be provided by law or any Wage Order; and
(f) To exercise such other powers and functions as may be necessary to carry out their mandate
under this Code.
JD2C RAMIREZ, Maria
831.
STATEMENT I: Each Regional Board is composed of DOLE Regional Director as chairman
and Regional Directors of NEDA and DTI as vice-chairmen only.
STATEMENT II: In the issuance of the wage orders, Regional Boards do not act in any judicial,
quasi-judicial or ministerial capacity.
a. STATEMENT I IS TRUE. STATEMENT II IS FALSE.
b. STATEMENT I IS FALSE. STATEMENT II IS TRUE.
c. BOTH STATEMENTS ARE TRUE.
d. BOTH STATEMENTS ARE FALSE.
 
RATIONALE:
 COMPOSITION.
Each Regional Board is composed of the following:

1. 1. DOLE Regional Director as chairman;

2. Regional Directors of NEDA and DTI as vice-chairmen; and
3. Two (2) members each from workers' and employers' sectors who shall be appointed
by the President of the Philippines, upon the recommendation of the DOLE Secretary,
to be made on the basis of the list of nominees submitted by the workers' and
employers' sectors, respectively and who shall serve for a term of five (5) years. Each
Regional Board which is headed by its chairman, is assisted by a Secretariat.
 
 NATURE OF POWER OF REGIONAL BOARDS TO ISSUE WAGE ORDERS.
In the issuance of the wage orders, Regional Boards do not act in any judicial, quasi-judicial or
ministerial capacity. It is in the nature of subordinate legislation promulgated by it in the exercise
of delegated power under R.A. No. 6727. Wage orders are issued in the exercise of quasi-
legislative power. Quasi-legislative or rule-making power is exercised by administrative agencies
through the promulgation of rules and regulations within the confines of the granting statute and
the doctrine of non-delegation of certain power flowing from the separation of the great branches
of the government. (Metropolitan Bank and Trust Co. Inc., v. NWPC, G.R. No. 144322, Feb.
6,2007)
JD2C RESONABLE, Trisha

832. Statement I: The Regional Boards have the authority to prescribe the rules and guidelines
for the determination of the minimum wage and productivity measures, and the National Wages
and Productivity Commission (NWPC) has the power to issue wage orders.
 
Statement II: The Regional Boards have the authority to provide additional exemptions from the
minimum wage adjustments and to expand the non-coverage and exemptible categories under the
wage orders.
 
A.    Only Statement I is true
 B.    Only Statement II is true
C.    Both statements are correct
D.    Both statements are false
 
Rationale: It is the National Wages and Productivity Commission (NWPC) who has the authority
to prescribe the rules and guidelines for the determination of the minimum wage and productivity
measures, and the Regional Boards have the power to issue wage orders. In The National Wages
and Productivity Commission (NWPC) vs. The Alliance of Progressive Labor, the Supreme
Court held that the Regional Boards have the authority to provide additional exemptions from the
minimum wage adjustments and to expand the non-coverage and exemptible categories under the
wage orders.
 

JD2C RESONABLE, Trisha

833. The following are some relevant factors to be considered in the determination of regional
minimum wages by the Regional Board, except:
 
A.    The need to induce industries to invest in the metropolitan areas
B.    Fair return of the capital invested and capacity to pay of employers
C.    Effects on employment generation and family income
D.    Wage adjustment vis-à-vis the consumer price index
 
Rationale: Art. 124 of Republic Act 6727 provides, that in the determination of such regional
minimum wages, the Regional Board shall, among other relevant factors, consider the following:
a. The demand for living wages; b. Wage adjustment vis-à-vis the consumer price index; c. The
cost of living and changes or increases therein; d. The needs of workers and their families; e.
The need to induce industries to invest in the countryside; f. Improvements in standards of
living; g. The prevailing wage levels; h. Fair return of the capital invested and capacity to pay of
employers; i. Effects on employment generation and family income; and j. The equitable
distribution of income and wealth along the imperatives of economic and social development. 

JD2C ROSAL, Hannah

834.
Statement 1. The Regional Board shall not, subject to the guidelines issued by the Commission
(NWPC), conduct continuing studies of wage rates, productivity, and other conditions in the
region, provinces or industries therein. It shall not investigate and study all pertinent facts, and
based on standards and criteria prescribed under the Rules, it shall determine whether a wage
order should be issued.
 Statement 2. The Regional Board shall, subject to the guidelines issued by the Commission
(NWPC), conduct continuing studies of wage rates, productivity, and other conditions in the
region, provinces or industries therein. It shall investigate and study all pertinent facts, and based
on standards and criteria prescribed under the Rules, it shall determine whether a wage order
should be issued.

A. Statement 1 is False
B. Statement 2 is True
 C. Statement 1 and 2 are False
D. Statement 1 and 2 are False

Rationale:
CONDUCT OF WAGE AND PRODUCTIVITY STUDIES.

The Regional Board shall, subject to the guidelines issued by the Commission
(NWPC), conduct continuing studies of wage rates, productivity and other conditions in the
region, provinces or industries therein. It shall investigate and study all pertinent facts, and based
on standards and criteria prescribed under the Rules, it shall determine whether
a wage order should be issued.

JD2C ROSAL, Hannah

835.
Statement 1. The minimum wage rates to be established by the Regional Board shall not be as
nearly adequate as is economically feasible to maintain the minimum standards of living
necessary for the health, efficiency and general well-being of the workers within the
framework of national economic and social development goals.
Statement 2. The minimum wage rates to be established by the Regional Board shall be as
nearly adequate as is economically feasible to maintain the minimum standards of living
necessary for the health, efficiency and general well-being of the workers within the
framework of national economic and social development goals.
 
A. Statement 1 is False
B. Statement 2 is True
C. Statement 1 and 2 are False
D. Statement 1 and 2 are False
Rationale:
STANDARDS/CRITERIA FOR MINIMUM WAGE FIXING.
The minimum wage rates to be established by the Regional Board shall be as nearly
adequate as is economically feasible to maintain the minimum standards of living
necessary for the health, efficiency and general well-being of the workers within the
framework of national economic and social development goals.

JD2C SACAY, Marbhee

Page 836
What are the two (2) methods of fixing the minimum wage namely:
A) Motu proprio by the Regional Board and by virtue of a petition filed.
B) Public hearing and petition
C) Floor-Wage and  Salary-Cap  or Salary-Ceiling
D) Board and Rules 
Rationale: 
According to jurisprudence, (Employers Confederation of the Philippines v. National Wages and
Productivity Commission, G.R. No. 96169, Sept. 24, 1991)  there are two (2) methods of fixing
the minimum wage namely:
1.“Floor-Wage”  method which involves the fixing of a determinate amount to be added to the
prevailing statutory minimum wage rates. This was applied in earlier wage orders; and
2.“Salary-Cap” or “Salary-Ceiling” method where the wage adjustment is to be applied to
employees receiving a certain denominated salary ceiling. In other words, workers already being
paid more than the existing minimum wage (up to a certain amount state in the Wage Order) are
also to be given a wage increase.
JD2C SACAY, Marbhee
Page 837
__________________ shall be conducted in a manner that shall ensure that all sectors and
parties who stand to be directly affected by the Board are given the widest opportunity to be
heard. Hearings shall be concluded within _____________ days from the date of initial hearing
except when conditions in the region warrant otherwise. 
A) Public hearings; forty-five (45) days
B) Amended Rules; fifteen (15) days 
C) Salary-ceiling method; thirty (30) days
D) Floor wage method; twenty-five (25) days 
Rationale: 
Section 4, Rule  III, Public hearings shall be conducted in a manner that shall ensure that all
sectors and parties who stand to be directly affected by the Board are given the widest
opportunity to be heard. Pursuant to this, the hearings shall be conducted in each province in the
region as far as practicable. hearings shall be concluded within forty-five (45) days from the date
of initial hearing except when conditions in the region warrant otherwise.
JD2C SANGLAY, Immanuel
838
When should the wage order shall be issued after conclusion of the last hearing of wage of it?
a. 15 days
b. 30 days
c. 60 days
d. 90 days
Basis:
Section 1, Rule IV, NWPC Guidelines No. 01 Series of 2007, June 19, 2007 provides that Within
thirty (30) days after conclusion of the last hearing, the Board shall decide on the merits of the
petition and where appropriate, issue a Wage Order establishing the regional minimum wage
rates to be paid by employers which shall in no case be lower than the applicable statutory
minimum wage rates. The Wage Order may include wages by industry, province or locality as
may be deemed necessary by the Board, provided, however, that such wage rates shall not be
lower than the regional minimum wage rates, The Board shall furnish the Commission a copy of
the decision on the petition or the Wage Order.
JD2C SANGLAY, Immanuel
839
When does a wage order takes effect? 
a. 10 days after its publication in at least one news paper of general circulation in the region
b. 15 days after its publication in at least one news paper of general circulation in the
region
c. 20 days after its publication in at least one news paper of general circulation in the region.
d. 30 after its publication in at least one news paper of general circulation in the region.
Rationale:
Article 123 of the labor code: 
Whenever conditions in the region so warrant, the Regional Board shall investigate and study all
pertinent facts; and based on the standards and criteria herein prescribed, shall proceed to
determine whether a Wage Order should be issued. Any such Wage Order shall take effect after
fifteen (15) days from its complete publication in at least one (1) newspaper of general
circulation in the region.
JD2C SAY-AWEN, Jennifer

Which of the following is true regarding unconstitutionality of wage orders?

I. The Supreme Court has the power to declare a law on wage orders unconstitutional .
II. Without SC’s declaration, the assailed wage orders remain operative and can be the source of
rights and duties. 
III. The DOLE Regional Director is without authority to declare an order or law unconstitutional 
IV. The DOLE Regional Director’s duty is to enforce law which stands valid, unless otherwise
declared by the Supreme Court to be unconstitutional. 

A. Statement I only
B. Statements II and IV only
C. Statements I and III only
D.  None of the statements is true 
E. All of the statements are true

Rationale:
DOLE CANNOT DECLARE UNCONSTITUTIONALITY OF WAGE ORDER
That the Supreme Court is vested by the Constitution with the power to ultimately
declare a law unconstitutional is beyond doubt. Without such declaration, the assailed wage
orders remain operative and can be the source of rights and duties. The DOLE Regional Director
is plainly without authority to declare an order or law unconstitutional and his duty is merely to
enforce the law which stands valid, unless otherwise declared by the Supreme Court to be
unconstitutional. As held in, G.R. No. 74621 February 7, 1990, BROKENSHIRE MEMORIAL
HOSPITAL, INC. vs. THE HONORABLE MINISTER OF LABOR & EMPLOYMENT AND
BROKENSHIRE MEMORIAL HOSPITAL EMPLOYEES AND WORKER'S UNION-FFW

JD2C SAY-AWEN, Jennifer

841

Accordingly, it was held that the employees, other than minimum wage earners, who received
the wage increase mandated by the Wage Order need not refund the wage increase received by
them since they received the wage increase in good faith, in the honest belief that they are
entitled to such wage increase and without any knowledge that there was no legal basis for the
same.

As once held by the Court, which of the following reasons justify why workers need not refund
what they have erroneously received?

I. If they received the wage increase in good faith, 

II. If they honestly believe that they are entitled to the wage increase which they received.
III. If they don’t have  any knowledge that there was no legal basis for the same.

A. Statement I only
B. Statement II only
C. Statement III only
D. All of the statements 

Rationale:

WORKERS NOT REQUIRED TO REFUND WHAT THEY HAVE ERRONEOUSLY

RECEIVED FROM VOID WAGE ORDER.
In Metrobank G.R. NO. 14432 February 6, 2007 METROPOLITAN BANK and TRUST
COMPANY, INC. vs. NATIONAL WAGES AND PRODUCTIVITY COMMISSION and
REGIONAL TRIPARTITE WAGES AND PRODUCTIVITY BOARD - REGION II, the
Supreme Court voided Section 1 of Wage Order No, R02-03 insofar as it grants a wage increase
to employees earning more than the minimum wage Tate but pursuant to the separability clause
of the Wage Order. it declared valid with respect to employees earning the prevailing minimum
wage rate. Accordingly, it was held that the employees, other than minimum wage earners, who
received the wage increase mandated by the Wage Order need not refund the wage increase
received by them since they received the wage increase in good faith, in the honest belief that
they are entitled to such wage increase and without any knowledge that there was no legal basis
for the same. See Also, Philippine Ports Authority vs Commission on Audit, GR. No. 159200

JD2C SEVERO, Lovella

Page 842

The following are elements of wage distortion, except:

a. Existing hierarchy of positions with corresponding salary rates
b. Elimination of the distinction between the two levels
c.  Existence of the distortion in the same region of the country
d. Insignificant change in the salary rate of a lower pay class without a concomitant
increase in the salary rate of a higher one
Rationale:
In a problem dealing with "'wage distortion," the basic assumption is that there exists a grouping
or classification of employees that establishes distinctions among them on some relevant or
legitimate bases ' Involved in the classification of employees are various factors such as the
degrees of responsibility, the skills and knowledge required, the complexity of the job, or other
logical basis of 842 differentiation. The differing wage rate for each of the existing classes of
employees reflects this classification.

JD2C SEVERO, Lovella

Page 843

For the purposes of wage distortion, the classification is not based on “levels” or “rank” on the
following group of employees:

a. Job Contactor and Permanent Employees

b. Newly hired and Old employees
c. Needy hired and Regular employees
d. Government Employees and Private Employees
Rationale:
In Bankard Employees Union-Workers Alliance Trade Unions vs NLRC, GR No. 140689, Feb
17, 2004 petitioner maintains that for purposes of wage distortion, the classification is not one
based on -levels" or "rank" but on two (2) groups of employees, the newly hired and the old, in
each and every level, and not between and among the different levels or ranks in the salary
structure. It is thus clear that there is no hierarchy of positions between the needy hired and
regular employees of private respondent Bankard; hence, the first element of wage distortion is
wanting. While seniority may be a factor in determining the wages of employees, it cannot be
made the sole basis in cases where the nature of their work differs

JD2C SUBIDO, Juvina

844
Statement I: A disparity in wages between employees holding similar positions but in different
regions does not constitute wage distortion as contemplated by law.
Statement II: Any issue involving wage distortion is not a valid ground for a strike or lockout.
a. Statement I is true
b. Statement II is true
c. Both statements are true
d. Both statements are false
 
Rationale:
Statement I: A disparity in wages between employees holding similar positions but in different
regions does not constitute wage distortion as contemplated by law. It is the hierarchy of
positions and the disparity of their corresponding wages and other emoluments that are sought to
be preserved by the concept of wage distortion. Put differently, a wage distortion arises when a
wage order engenders wage parity between employees in different rungs of the organizational
ladder of the same establishment. It bears emphasis that wage distortion involves a parity in the
salary rates of different pay classes which, as a result, eliminates the distinction between the
different ranks in the same region.
Statement II: Any issue involving wage distortion is not a valid ground for a strike or lockout
(IRR RA No. 6267, Sec.16). It is clear from a reading of the law that wage distortions should be
corrected through voluntary negotiation or arbitration instead of strikes, lockouts or other
concerted activities. Unilateral or negotiated wage increases granted by employers for the
purpose of correcting such wage distortions are in keeping with the public policy of encouraging
employers to grant wages higher than legislated wage rates.
 

JD2C SUBIDO, Juvina

845. Wage distortion can only arise from wage increases by virtue of a law or wage order and
not from employer’s ____ and _____.
a. involuntary and unilateral increases
b. voluntary and unilateral increases
c. voluntary and bilateral increases
d. involuntary and unilateral decreases
Rationale:
The employer cannot legally be obligated to correct "wage distortion" if the increase in the
wages and salaries of the newly-hired employees was not due to a prescribed law or wage order.
The wordings of Article 124 are clear. If it was the intention of the legislators to cover all kinds
of wage adjustments, then the language of the law should have been broad, not restrictive, as it is
currently phrased.
In Bankard it was pronounced that if the compulsory mandate under Article 124 to correct.
"wage distortion" is applied to voluntary and unilateral increases effected by the employer in
fixing hiring which are inherently a business judgment prerogative, then the hands of the
employer would be completely tied even in cases where an increase in wages of a particular
group is justified due to a re-evaluation of the high productivity of a particular group, or the need
to increase the competitiveness of the employer's hiring rate. An employer would be discouraged
from adjusting the salary rates of a particular group of employees for fear that it would result to a
demand by all employees for a similar increase, especially if the financial conditions of the
business cannot address an across-the-board increase.

JD2C VALENCIA, Patricia

 846. These employees had the right to rely on the company practice of unilaterally correcting
the wage distortion effects of a salary increase given to the rank-and-file employees, by giving
the supervisory employees a corresponding salary increase plus a premium.
                             a. Supervisory employees
                            b. Rank-and-file employees
                            c. Probationary employee 
                            d. Managerial employee 
Rationale: The Supreme Court pronounced in the case of Metro Transit that: 
          "We conclude that the supervisory employees, who then (i.e., on April 17, 1989) had,
unlike the rank-and-file employees, no CBA governing the terms and conditions of -their
employment, had the right to rely on the company practice of unilaterally correcting the wage
distortion effects of a salary increase given to the rank-and-file employees, by giving the
supervisory employees a corresponding salary increase plus a premium. "
 
JD2C VALENCIA, Patricia
         847. Who has the prerogative to regulate according to its own discretion and judgment all
aspects of employment?
                            a. Employee
                            b. Managerial employee 
                              c. Management
                            d. Probationary employee 
Rationale: It is the prerogative of management to regulate, according to its discretion and
judgment, all aspects of employment. Such management prerogative may be availed of without
fear of any liability so long as it is exercised in good faith for the advancement of the employer's
interest and not for the purpose of defeating or circumventing the rights of the employees under
special laws or agreements and are not exercised in a malicious, harsh, oppressive, vindictive or
wanton manner or out of malice or spite.  
Africano, Miles
848. It is the law that indicates that it does not contain any provisions granting exemption to
specific groups or classes of employers from the coverage of legally mandated wage increases.
A. RA 6727
B. RA 2067
C. RA 11035
D. None of the Above
RATIONALE
A. RA 6727, otherwise know as the Rage Rationalization Act, was
enacted into law in 1989 in order to address such a situation at the time
as well as similar situations that may arise since then. It was intended to
rationalize the fixing of wages and the improvement of productivity
throughout the country.
Arellano, Samuel
849.
Statement I Section 8 of R,A. No. 9 78, otherwise known as the "Barangay Micro Business
Enterprises BA s) Act of 2002," exempts BMBEs from the coverage of the Minimum Wage
Law. Further, under Section 5 (b) of R.A. No. 10644, the Go Negosyo Act, the Department of
Trade and Industry (DTI), through the Negosyo Center in the city or municipal level, shall have
the sole power to issue the Certificate of Authority for BMBEs to avail of the benefits provided
by R.A. No. 9178.
Statement II A "BMBE" refers to any business entity or enterprise engaged in the production,
processing or manufacturing of products or commodities, including agro-processing, trading and
services, whose total assets, including those arising from loans but exclusive of the land on
which the particular business entity's office, plant and equipment are situated, shall not be more
than P3,000,000.00.
1. Statement I and II are true
2. Only Statement I is true
3. Only Statement II is true
4. Statement I and II are false

Castro, Allan
850) The following statements are true regarding laws governing tax exemptions for minimum
wage earners:
I. RA. No. 9504 exempts minimum wage earners from the payment of income tax on their
taxable income, excluding holiday pay, overtime pay, night shift differential pay and hazard pay
received by them which are likewise exempt from income tax.
II. RA No. 10963, otherwise known as the "Tax Reform for Acceleration and Inclusion
(TRAIN), exempts income tax of minimum wage earners (MWES), including: a)Statutory
Minimum Wage (SMW) inclusive of the COLA; b)Holiday pay, c)Overtime pay, d)Night shift
differential pay, and e)Hazard pay.

a) I only
b) II only

c) Both I and II
d) I and II are false statements
Rationale:
RA. No. 9504 exempts minimum wage earners from the payment of income tax on their taxable
income, including holiday pay, overtime pay, night shift differential pay and hazard pay
received by them which are likewise exempt from income tax. RA No. 10963, otherwise known
as the "Tax Reform for Acceleration and Inclusion (TRAIN), exempts income tax of minimum
wage earners (MWES), including: a)Statutory Minimum Wage (SMW) inclusive of the COLA;
b)Holiday pay, c)Overtime pay, d)Night shift differential pay, and e)Hazard pay.

 Dela Cruz, Bryan

851. In case the renewed CBA is concluded beyond 6 months after the expiry of the 3rd year of
the CBA, the rule is there is no automatic retroaction of its effectivity to "the day immediately
following the expiry date" but the parties should "_____ on the duration of retroactivity thereof."

a) negotiate
b) execute
c) agree
d) commence 
RATIONALE:
IN CASE RENEWED CBA IS CONCLUDED AFTER 6 MONTHS FROM EXPIRY OF THE
3RD YEAR OF THE CURRENT 5 YEAR CBA: 
In case the renewed CBA is concluded beyond 6 months after the expiry of the 3rd year of the
CBA, the rule is there is no automatic retroaction of its effectivity to "the day immediately
following [the expiry) date" but the parties should "agree on the duration of retroactivity
thereof."
Notably, retroactivity is the general rule. It appears from this quoted phrase that the parties have
no option but to negotiate and agree only "on the duration of retroactivity" of the renewed CBA
and nothing more. This simply means that making the renewed CBA effective on the very date
of its execution by the parties or making it effective prospectively to some future date after its
execution, is not contemplated under the law as they are required to negotiate and agree only on
one thing - the duration of retroactivity thereof. Unless the parties mutually agree on the renewed
CBA's effectivity being on its signing/execution date or prospectively, they are obligated to
deliberate only on the duration of its retroactivity which may be any date between the expiry date
of the old CBA and the renewed CBA's signing/execution date.
 

De Guzman, Raffy

852. A Department Order promulgated the Guidelines on the Imposition of Double Indemnity for
Non-Compliance with the           Prescribed Increase or Adjustments in Wage Rates.
 
a.Department Order No. 11, Series of 1998 (May 04, 1998)
  b.Department Order No. 10, Series of 1998 (May 04, 1998)
  c.Department Order No. 12, Series of 1998 (May 04, 1998)
  d.Department Order No. 13, Series of 1998 (May 04, 1998)
Rationale:
  Department Order No. 10, Series of 1998 (May 04, 1998), promulgated the Guidelines on the
Imposition of Double Indemnity      for Non-Compliance with the Prescribed Increase or
Adjustments in Wage Rates. It applies to any person corporation trust,          firm, partnership,
association, organization, or entity in the capacity of an employer.     
  
853. Gatpo, Raven Kurt

What is the reglementary period for appeal to the NWPC from the date of publication of wage
order?
a. 10 calendar days
b. 15 calendar days
c. 20 calendar days
d. 30 calendar days
Rationale: The reglementary period for appeal to the NWPC is ten (10) calendar days from the
date of publication of the Wage Order.
Gonzalo, Pamela
854.
Statement I:       The workers have the freedom to bargain for higher wages with their employer
notwithstanding the issuance of wage order mandating the increase in minimum wage rates.
Statement II:     The issue of minimum wage is not within the sphere of bargaining between the
employees and the employer and it is not subject to negotiation.
a. Statement I is True, Statement II is False.
b. Both statements are True.
c. Both Statements are False.
d. Statement I is False, Statement II is True.
Rationale:
The issue of minimum wage is not within the sphere of bargaining between the employees and
the employer. It is not subject to negotiation (Philippine American Management Co. vs.
Philippine American Management Employees Association, G.R. No. L-35254, Jan. 29, 1973).
The wage orders issued by the Regional Boards providing for statutory wage increases does not
mean that the workers can no longer demand for higher wages from their employers through the
process of collective bargaining negotiation. Articulated in Article 125, the workers have the
freedom to bargain for higher wages with their employer notwithstanding the issuance of wage
order mandating the increase in minimum wage rates.

Kiwas, Carmel
855. Statement I: Wage increases, and benefits derived from law and wage orders, on the one
hand, and those from the CBA or company policy or practice, on the other hand, are the same
from each other unless otherwise provided by the agreement or company policy or practice or by
the law and wage order itself.
Statement II: Where the increases are less than the applicable amount provided in the law or
wage order, the employer is required to pay the difference. 
a.    Statement I is FALSE, Statement II is TRUE
b.    Statement II is FALSE, Statement I is FALSE
c.    Both Statements are TRUE
d.    Both Statements are FALSE
RATIONALE: Statement I: They are separate and distinct from each other. (Meycauayan
Colleges v.  Dilon, G.R.  No. 81144, May 7, 1990).
Statement II: Where the increases are less than the applicable amount provided in the law or
wage order, the employer is required to pay the difference.  (Philippine Telegraph and Telephone
Corporation v.  NLRC, G.R.  No.  99858, June 19, 1995, 245 SCRA 193; Liberty Flour Mills
Employees v.  Liberty Flour Mills, Inc.  G.R Nos.  5876-70, Dec.  29, 1989, 180 SCRA  668.)

Lacsa, Angelu
856.
STATEMENT 1: Any increases granted by an employer in an establishment within three (3)
months prior to the effectivity of this Order shall be credited as compliance with the prescribed
increase set forth therein.
STATEMENT 2: In case the increases given within three (3) months prior to the effectivity of
this Order are less than the prescribed wage rates the employer shall pay the difference.
A. Only Statement 1 is true
B. Both Statements are true
 C. Only Statement 2 is true
D. Both Statements are false

 
RATIONALE:
Wage Order No. NCR-22 [effective November 22, 2018), the following provision on credibility
or chargeability is found in its Section 10, to wit: “Section 10. CREDITABLE WAGE
INCREASE. Any increase granted by an employer in an establishment within three (3) months
prior to the effectivity of this Order shall be credited as compliance with the prescribed increase
set forth herein. "In case the increases given are less than the prescribed wage rates the employer
shall pay the difference. Such increases shall not include anniversary Increases, merit wage
increases and those resulting from the regularization or promotion of employees”

 Llagas, Mark Lester

857.
Statement I. In case the increases given are less than the prescribed adjustments the employer
shall pay the difference.
Statement II. If the amount of the Increase is greater than the increase granted under the Wage
Order, the employer has the option to integrate partially or in full the allowances earlier given.
 
A. Only Statement I is correct
B. Only Statement II is correct
C. Both Statement I and I are correct
D. Both Statement I and II are not correct
Rationale:
Rule IV of the Implementing Rule of Wage Order No. NCR-22 states that:
Section 3. CREDITABLE INCREASES GIVEN IN THE FORM OF ALLOWANCES. Where
the increase given by the employer is in the form of allowances the employer shall make the
necessary adjustment (integration/addition) to comply with the wage rates prescribed herein.
"However, if the amount of the Increase is greater than the increase granted under the Wage
Order, the employer has the option to integrate partially or in full the allowances earlier given. In
the event of partial integration, any excess maybe retained as allowances.
Section 4 CREDITABLE INCREASES GIVEN LESS THAN THE PRESCRIBED
ADJUSTMENTS. In case the increases given are less than the prescribed adjustments the
employer shall pay the difference. Such increases shall not include anniversary increases merit
wage increases, and theme resulting from the regulation or promotion of employees

Munar, Kristan Jay

858. In Capitol Wireless, Inc. v. Bate, it was held that the across-the-board increases in wages in
its CBA is limited to those:
a. already receiving wage rates not more than P125.00 per day under Wage Orders Nos.
NCR-01 and NCR-01-A and P142.00 per day under Wage Order No. NCR-02.
b. regular employees
c. managerial staff
d. job orders
Basis: Private respondent felt aggrieved by the increases given by petitioner, contending that any
and all government-mandated increases in salaries and allowances should be granted to all
employees across-the-board without any qualification whatsoever pursuant to paragraph 2,
Section 2 of Article XIV of the CBA. It was held, however, that no such across-the-board
increases should be granted to the employees because the wage orders did not grant across-the-
board increases to all employees in the National Capital Region but limited such increases only
to those already receiving wage rates not more than P125.00 per day under Wage Orders Nos.
NCR-01 and NCR-01-A and P142.00 per day under Wage Order No. NCR-02. Since the wage
orders specified who among the employees are entitled to the statutory wage increases, then the
increases applied only to those mentioned therein. The provisions of the CBA should be read in
harmony with the wage orders, whose benefits should be given only to those employees covered
thereby.
Nabunat, Irene

859. Which of the following is the proper interpretation of  Section 2 of Article XIV on wages
CBA f Capitol Wireless, Inc., which provides: SECTION 2. Minimum Wage Law Amendment. -
In the event that a law is enacted increasing minimum wage, an across-the-board increase shall
be granted by the Company according to the provisions of the law."?

I. The above-quoted CBA provision does not entitles its members to an across-the-board
increase, absolutely and  

   without any condition. 

II.A "double burden" cannot be imposed upon an employer except by clear provision of law. 

A. I only

B. II only

C. I and II

D. None of the choices

Rationale: The reason for so holding is that petitioner disregarded altogether in its argument the
qualifying phrase 'according to the provisions of the law' and merely focuses its attention on the
'across-the-board increase' clause. Given the entire sentence, it is clear that the above-quoted
CBA provision does not support the unyielding view of petitioner that the issuance of Wage
Order No. ROVII-06 entitles its members to an across-the-board increase, absolutely and without
any condition. 

The employees are not entitled to the claimed salary increase, simply because they are not within
the coverage of the Wage Order, as they were already receiving salaries greater than the
minimum wage fixed by the Order. Concededly, there is an increase necessarily resulting from
raising the minimum wage level, but not across-the-board. Indeed, a "double burden" cannot be
imposed upon an employer except by clear provision of law. It would be unjust therefore to
interpret Wage Order No. ROVII-06 to mean that respondent should grant an across-the-board
increase. Such interpretation of the Order is not sustained by its text (Citing Vassar Industries,
Inc. v Vassar Industries Employees Union 177 SCRA 323, Sept 7,1989: Cagayan Sugar Mining
Company v Secretary of Labor and Employment 284 SCRA 150. Jan. 15, 1998). 
860. Olayres, Jon Vincent - did not submit

861. Otanes, Jasmaine

Section 14. NON-DIMINUTION OF BENEFITS. Nothing in this Order shall be construed to
reduce any existing wage rates, ________ and _________ of any form under existing laws,
decrees, issuances, executive orders and/or under any contract or agreement between the workers
and employers.
a. Laws and allowances
b. Allowances and benefits
c. salaries and allowances
d. benefits and salaries
Rationale:
Section 14. NON-DIMINUTION OF BENEFITS. Nothing in this Order shall be construed to
reduce any existing wage rates, allowances and benefits of any form under existing laws,
decrees, issuances, executive orders and/or under any contract or agreement between the workers
and employers.

862. Pangda, Vince

 ARTICLE 128 OF THE LABOR CODE STATES THAT:
STATEMENT I: The Secretary of Labor and Employment may order stoppage of work or
suspension of operations of any unit or department of an establishment when non-compliance
with the law or implementing rules and regulations poses grave and imminent danger to the
health and safety of workers in the workplace.
STATEMENT II: Any government employee found guilty of violation of, or abuse of authority,
under this Article, after appropriate administration investigation, be subject to summary
dismissal from the service.
 1. Only statement I is true

2. Only statement II is true

3. Both Statements are true
4. Bothe statements are false

 
BASIS:
ARTICLE 128 OF THE LABOR CODE
STATEMENT I:
(c) The Secretary of Labor and Employment may likewise order stoppage of work or
suspension of operations of any unit or department of an establishment when non-
compliance with the law or implementing rules and regulations poses grave and imminent
danger to the health and safety of workers in the workplace. Within twenty-four hours, a
hearing shall he conducted to determine whether an order for the stoppage of work or suspension
of operations shall be lifted or not. In case the violation is attributable to the fault of the
employer. he shall pay the employees concerned their salaries or wages during the period of such
stoppage of work or suspension of operation.
STATEMENT II:
(e) Any government employee found guilty of violation of, or abuse of authority, under this
Article shall, after appropriate administration investigation, be subject to summary
dismissal from the service.

863. Pajarillaga, Sheena

Which of the following are the most recent issuances of the DOLE Secretary relevant to the
exercise of visitorial and enforcement powers under Article 128 of the Labor Code.
a. Department Order No. 183, Series of 2017, Revised Rules on the Administration and
Enforcement of Labor Laws Pursuant to Article 128 of the Labor Code, as Renumbered, issued
on October 18, 2017
b. Department Order No. 131-B, Series of 2016. Revised Rules on Labor Laws Compliance
System, issued on May 18. 2016.
c. A &B
d. none of the above
BASIS:
The following are the most recent issuances of the DOLE Secretary relevant to the exercise of
visitorial and enforcement powers under Article 128 of the Labor Code:
1) Department Order No. 183, Series of 2017, Revised Rules on the Administration and
Enforcement of Labor Laws Pursuant to Article 128 of the Labor Code, as Renumbered, issued
on October 18, 2017; and
2) Department Order No. 131-B, Series of 2016. Revised Rules on Labor Laws Compliance
System, issued on May 18. 2016.
No. 1 above is aimed to further strengthen the implementation of the visitorial and enforcement
powers under the labor Code, as renumbered, towards securing a higher level of compliance with
labor laws and standards, and ensuring continuity and sustainability of compliance at workplaces
(Section 1, Rule I thereof). It shall govern all matters arising from the visitorial and enforcement
power of the DOLE Secretary under Article 128, in
relation to Article 303, of the labor Code, as renumbered (Section 2, Rule I thereof).
No. 2 above incorporates compliance-enabling approach in the regulatory framework to secure a
higher level of compliance with general labor standards and occupational safety
and health standards; and, ensure continuity and sustainability of compliance at the workplaces
by inculcating a culture of voluntary compliance (Section 2 thereof). It shall govern all matters
arising from the visitorial and enforcement power of the DOLE Secretary under Article 128 in
relation to Article 303 (formerly Article 288) of the Labor Code of the Philippines, as
renumbered (Section 3 thereof)
864. Payoyo, Michael
The following are the three powers of DOLE Secretary and/or the Regional Directors
referred to in Article 128 of the Labor Code, except?
A. Visitorial power
B. Enforcement power
C. Executive power
D. Appellate power or power of review
Rationale:
Article 128, as amended, basically enunciates the three (3) kinds of power which the DOLE
Secretary and/or the Regional Directors, his duly authorized representatives,( The DOLE
Regional Directors are the duty "authorized representatives" of the DOLE Secretary referred to
in Article 128 of the Labor Code. They are in charge of the administration and enforcement of
labor standards within their respective territorial jurisdictions. The three (3) kinds of power are
as follows: (1) Visitorial power (This is embodied in paragraph (a) thereof) ; (2) Enforcement
power (This is treated in paragraphs (b) and (c) thereof) and (3)Appellate power or power of
review (As amended by Section 31, RA No 6715, Mach 21, 1989).
Peralta, Marvin
865. This refers to the contract between the principal and contractor is containing the terms
and conditions governing the performance of completion of a specific job or work being
farmed out for a definite or predetermined period.

a. Contract of Agreement
b. Service of Agreement
c. Memorandum of Agreement
d. Employments Contract.

Rationale : Service Agreement refers to the contract between the principal and contractor is
containing the terms and conditions governing the performance of completion of a specific job or
work being farmed out for a definite or predetermined period ( Section 3[i] ).

Sao, Inez
866. I. In the conduct of complaint inspection, the priority establishments and workplaces are the
following: Those engaged in hazardous work; Those employing children; Those engaged in
contracting or subcontracting arrangements; Those employing ten (10) or more employees; and
Such other establishments or industries as may be determined by the DOLE Secretary as priority
for Routine Inspection. 
II. “Routine Inspection” refers to the act of validating compliance with labor laws and social
legislations by the DOLE Secretary or his/her duly authorized representative in any of the
following instances: When there is SEnA referral; When there is an anonymous complaint; or
When there is a request in conciliation-mediation proceedings at the NCMB to validate or verify
violation of labor standards. 

a. Both Statements are true

b.Only Statement I is true

c. Only Statement II is true

d. Both Statements are not true

Rationale:

In the conduct of Routine Inspection, the priority establishments and workplaces are the
following: Those engaged in hazardous work; Those employing children; Those engaged in
contracting or subcontracting arrangements; Those employing ten (10) or more employees; and
Such other establishments or industries as may be determined by the DOLE Secretary as priority
for Routine Inspection. 

“Complaint Inspection” refers to the act of validating compliance with labor laws and social
legislations by the DOLE Secretary or his/her duly authorized representative in any of the
following instances: When there is SEnA referral; When there is an anonymous complaint; or
When there is a request in conciliation-mediation proceedings at the NCMB to validate or verify
violation of labor standards. 

867. Saguguit, Elvin James

The DOLE Secretary or his duly authorized representatives, in cases where the employer-
employee relationship still exists, shall have the following powers EXCEPT:
A. Issue compliance order to give effect to labor standards provision of the Labor Code and other
labor legislation based on the findings of labor inspections in the course of inspection.
B. Issue writs of execution to the appropriate authority for the enforcement of their orders,
except in cases where the employer contests the findings of the Labor Inspector and raises issues
supported by documentary proofs which were not considered in the course of inspection.
C. To order stoppage of work or suspension of operations of any unit or department of an
establishment when non-compliance with the law or implementing rules and regulation poses
grave and imminent danger to the health and safety of workers in the workplace.
D. Determine the existence of imminent danger, dangerous occurrence, and accident
resulting in disability injury or analogous circumstances within the workplace based on
report or information.
Rationale: The statutory basis of the authority of the DOLE Regional Offices to administer and
enforce standards is found in Article 128(b), as amended. (Section 2, Rule I, Rules on the
Disposition of Labor Standards Cases in the Regional Office.) Pursuant to his enforcement
power, The DOLE Secretary or his duly authorized representatives, in cases where the employer-
employee relationship still exists, shall have the power:
1. a) To issue compliance order to give effect to labor standards provision of the Labor
Code and other labor legislation based on the findings of labor inspections in the course
of inspection.

2. b) To issue writs of execution to the appropriate authority for the enforcement of their
orders, except in cases where the employer contests the findings of the Labor Inspector
and raises issues supported by documentary proofs which were not considered in the
course of inspection. (Article 128 (b), Labor Code.)
3. c) To order stoppage of work or suspension of operations of any unit or department of an
establishment when non-compliance with the law or implementing rules and regulation
poses grave and imminent danger to the health and safety of workers in the workplace.
Within twenty-four hours (24), a hearing shall be conducted to determine whether an
order for the stoppage of work or suspension of operations shall be lifted or not. In case
the violation is attributable to the fault of the employer, he shall pay the employees
concerned their salaries or wages during the period of such stoppage of work or
suspension of operation. (Article 128 (c),; Section 3 [a] and [b], Rule X, Book III, Rules
to implement the Labor Code.) These proceeding should be terminated within 72 hours
and a copy of the order or resolution should be immediately furnished the DOLE
Secretary. (Section 3 [b], Rule X, Book III, Rules to implement the Labor Code.)
4. d) To require employers, by appropriate regulations, to keep and maintain such
employment records as may be necessary in aid of his visitorial and enforcement powers
under the Code. (Article 128 (f), Labor Code.)
868. Soriano, Ed Gregory
An Employer may require an employee to work on the employee's rest day
a. To Avoid irreparable loss to the employer.
b. only when there is a state of calamity.
c. provided he is paid an extra of at least 50% of his regular rate.
d. Subject to 24 hours advance notice to the employee.
 
Basis: Under Art. 92 of the labor code; The employer may require an employee to work
during the employee's rest day if the nature of the work requires continuous operation and
the stoppage of work may result in irreparable injury or loss to the employer.
Son, Nino Kristoffer
869.Which of the following is not a requisite for the valid exercise of the visitorial power and
enforcement powers under Article 128?
a)  The employer-employee relationship should still exist
b)  The findings in question were made in the course of inspection by the labor
c)  The employee should not have initiated any claim or complaint with the DOLE Regional
Director under Article 129 (Small money claims not exceeding P5000.00), or the Labor Arbiter
under Article 224 [217] (money claims not exceeding P5000.00).
d) The employer- employee relationship had already ceased to exist
Rationale:
For the valid exercise of the visitorial power and enforcement powers under Article 128, the
following requisites should concur:
e)  The employer-employee relationship should still exist; b)  The findings in question were
made in the course of inspection by the labor Inspector; and (Referred to in the law as labor
employment and enforcement officers or industrial safety engineers; c)  The employee
should not have initiated any claim or complaint with the DOLE Regional Director under
Article 129 (Small money claims not exceeding P5000.00), or the Labor Arbiter under
Article 224 [217] (money claims not exceeding P5000.00).
870. Tuazon, Jazmine - did not submit

871. Tugade, Junea

The following are the foregoing requisite for a valid exercise of the powers, which one is the
third requisite?
a. Employment relationship should still exist at the same time of the initiation of the action
b. No action on same violation of labor standard laws has yet been filed under either
Articles 129 or 224 [217] of the Labor Code
c. The findings should be made in the course of inspection
d. None of the above
Rationale: Corollary to the second requisite above is the third (3rd) requisite that affected
employees should not have initiated any claim or complaint on the violation of the labor
standards provisions of the law with either the DOLE Regional Director under Article 129, or the
Labor arbiter, under Article 224 [217] of the labor Code. This is as it should be because once the
complaint has already been taken cognizance of by the DOLE Regional Director under Article
129, or by the Labor arbiter under article 224 [217] jurisdiction attaches thereto and will not be
lost as a result of the findings made in the course of inspection.

Soriano, Ed Gregory
872. Handicapped worker may be hired as apprentice or learner, provided

a. he waives any claim to legal minimum wage.

b. his work is limited to apprenticeable job suitable to a handicapped worker.

c. he does not impede job performance in the operation for which he is hired.
d. he does not demand regular status as an employee.
Basis; Under Art. 81 of the Labor Code; handicapped workers may be hired as apprentices
or learners if their handicap is not such as to effectively impede the performance of job
operations in the particular occupations for which they are hired.
Son, Nino Kristoffer
873.An example of an issue that can present legal complication is one involving the existence or
non-existence of employer-employee relationship. Which of the following elements does not
constitute the reliable yardstick to determine such relationship?
(a) the selection and engagement of the employee
(b) the payment of incentives
(c) the power of dismissal
(d) the employer's power to control the employee's conduct.
Rationale: An example of an issue that can present legal complication is one involving the
existence or non-existence of employer-employee relationship. To resolve this issue, there is a
necessity to examine evidentiary matters. It is settled that the following elements constitute the
reliable yardstick to determine such relationship: (a) the selection and engagement of the
employee; (b) the payment of wages; (c) the power of dismissal; and (d) the employer's power to
control the employee's conduct.

874. Tuazon, Jazmine - did not submit

875. Tugade, Junea

Which of the following are the major jurisdictional distinctions over money claims?

a. The DOLE Secretary or his duly authorized representatives under Article 128 (b)

b. The DOLE Regional Directors or any of the authorized hearing officers of DOLE under
Article 129

c. The Labor Arbiters under Article 224 (217) of the Labor Code

d. All of the above

Rationale: The following are the major jurisdictional distinctions over money claims: (1)The
DOLE Secretary or his duly authorized representatives under Article 128 (b); (2)The DOLE
Regional Directors or any of the authorized hearing officers of DOLE under Article 129; and
(3)The Labor Arbiters under Article 224 (217) of the Labor Code.
Africano, Miles

876.

Regarding the Distinction AMONG ARTICLES 128(B), 129 AND 224 (217). Which of the
following are not one of the major distinctions?
A. The DOLE Secretary or his duly authorized representatives under Article 128 (b);
B. The Labor Arbiters under Article 224 (217) of the Labor Code
C. On the extent of monetary claims
D. The DOLE Regional Directors or any of the authorized hearing officers of DOLE under
Article 129; and
 
RATIONALE
C.On the extent of monetary claims. , is not one of the distinctions AMONG ARTICLES
128(B), 129 AND 224 (217), A, B, D are major jurisdictional distinctions over money claims. C,
is one of the distinctions in detail.
877. Arellano, Samuel

Which of the following statements is/are not true regarding the applicability of Art 224,
129, 128 on the existence of employer-employee relationship.

Statement I Article 224 is applicable irrespective of whether or not the employer-employee

relationship still exists for as long as the claim arose from the said relationship and the total
amount of the monetary claims exceeds P5,000.
Statement II Article 129 is applicable when the employer-employee relationship no longer exists
and the money claim arose from said relationship and the total amount thereof does not exceed
P5,000.00.
Statement III Article 128(b) is applicable only when the employer-employee relationship no
longer exists. In case the relationship exists, monetary claims may fall either under the exclusive
and original jurisdiction of the Labor Arbiters when the total amount exceeds P5,000.00 or under
the exclusive and original jurisdiction of the DOLE Regional Director, if the total amount thereof
does not exceed P5,000.00.
A. Statement I II and III are true
B. Statement I and II are true
C. Statement III is False
D. Statement I and II are false

Rationale: Article 128(b) is applicable only when the employer-employee relationship still exists.
In case the relationship no longer exists, monetary claims may fall either under the exclusive and
original jurisdiction of the Labor Arbiters when the total amount exceeds P5,000.00 or under the
exclusive and original jurisdiction of the DOLE Regional Director, if the total amount thereof
does not exceed P5,000.00.
Castro, Allan
878) The following are grounds accepted for appeal under Article 128 (b) of the labor code
as provided under the rules of court, except:
a) Prima facie evidence of grave abuse of discretion on the part of the Regional Director.
b) Newly founded evidence after rendering of judgment.
c) Pure questions of law.
d) Serious errors in the findings of facts were committed which, if not corrected, would cause
grave or irreparable damage or injury to the appellant.
Rationale:
Article 128(b) does not specify the grounds for appeal but the Rules specify three (3) grounds
(Section 3, Rule XIII, Department Order No. 183. Series of 2017), enumerates the following
grounds: a)Prima facie evidence of grave abuse of discretion on the part of the Regional
Director; b)Pure questions of law, or c)Serious errors in the findings of facts were committed
which, if not corrected, would cause grave or irreparable damage or injury to the appellant. 

Dela Cruz, Bryan

879. A documentary request for SEBA certification should indicate?
I. The name and address of the requesting legitimate labor organization;
II. The name and address of the company where it operates;
III. The bargaining unit sought to be represented; 
IV. The approximate number of employees in the bargaining unit; 
V. The statement of the existence/ non-existence of another labor organization/ CBA.
a) Only I
b) Only II, III and IV
c) All of the above
d) None of the above

RATIONALE:
DOCUMENTARY REQUIREMENTS FOR THE REQUEST.
The Request should indicate:
I. The name and address of the requesting legitimate labor organization;
II. The name and address of the company where it operates;
III. The bargaining unit sought to be represented; 
IV. The approximate number of employees in the bargaining unit; 
V. The statement of the existence/ non-existence of another labor organization/ CBA.
The certificate of registration as duly certified by the president of the requesting
union or certificate of creation of chartered local as duly certified by the president of the
federation of the local is required to be attached to the Request.

De Guzman, Raffy
880. Under this Article, it covers “any matter involving the recovery of wages and other
monetary claims and benefits, including            legal interest, owing to an employee or person
employed in domestic or household service or house helper under this                     Code.
  a.Article 128of Labor Code
  b.Article 129 of Labor Code
  c.Article 130 of Labor Code
  d.Article 127 of Labor Code
  Rationale:
  The jurisdiction of the DOLE Regional Director or hearing officer under Article 129  covers
“any matter involving the recovery      of wages and other monetary claims and benefits,
including legal interest, owing to an employee or person employed in                domestic or
household service or house helper under this Code, arising from employer-employee relations.

Gatpo, Raven Kurt

Who has jurisdiction over any matter involving the recovery of wages and other monetary claims
and benefits, including legal interest, owing to an employee or person employed in domestic or
household service? 

a. POEA
b. DOLE regional director
c. Labor arbiter
d. Sandiganbayan
 
Rationale: The jurisdiction of the DOLE Regional Director or hearing officer under Article 129
covers “any matter involving the recovery of wages and other monetary claims and benefits,
including legal interest, owing to an employee or person employed in domestic or household
service or househelper under this Code, arising from employer-employee 
relations. 
Gonzalo, Pamela Ruth
882.

Statement I:       There is no more appeal to the NLRC in monetary claims cases of Kasambahays
decided by DOLE Regional Directors.

Statement II:     Article 129 contemplates the recovery of wages and other monetary claims and
benefits, including legal interest, owing to an employee (In the light of R.A. No. 10361, a
“person employed in domestic or household service or househelper” is no longer covered by
Article 129 of the Labor Code.) arising from employer-employee relations.

a. Statement I is True, Statement II is False.

b. Both statements are True.
c. Both Statements are False.
d.Statement I is False, Statement II is True.

Rationale:
Notably, too, the appeal to the NLRC in small money claims cases provided under Article 129
should now exclude the appeal from decisions of the DOLE Regional Directors in claims of
Kasambahays, regardless of the amount thereof. This is so because the appeal therefrom is now
lodged with the DOLE Secretary (Id., Section 4 thereof.).

Kiwas, Carmel
883. Statement I: All monetary claims of other employees arising from the employment
relationship which fall within the threshold amount of ₱5,000.00 or above are covered by Article
129.
Statement II: If the employment relationship still exists at the time of the filing of the complaint
for monetary claims, the case necessarily falls under the coverage of Article 129 where it is pre-
requisite that such relationship should still exist at the time of the initiation of the complaint. 
a.    Statement I is FALSE, Statement II is TRUE
b.    Statement II is FALSE, Statement I is FALSE
c.    Both Statements are TRUE
d.    Both Statements are FALSE
RATIONALE: Statement I: The threshold amount is ₱5,000.00 or less. (Article 129, Labor
Code) 
Statement II: If employment still exists, it falls under the coverage of Article 128 of the Labor
Code. 
Lacsa, Angelu
884. 

In monetary claim cases, what is the remedy if the claim of each employee amounts to more than
P5,000?
A. The Regional Director or Hearing Officer is required to advise the complainant to
amend the complaint if the latter so desires and file the same with any of the Labor
Arbiters of the appropriate regional branch of the NLRC.

B. The Clerk of Court should advise the complainant to file the case in the Regional Trial
Court because the case is not within the juriscdiction of the NLRC.
C. The complainant should inform first the Labor Arbiter and file a new complaint with the
latter’s approval.
D. None of the above

RATIONALE:
When the evidence shows that the claims of each employee amounts to more than ₱5,000.00, the
Regional Director or Hearing Officer is required to advise the complainan to amend the
complaint if the latter so desires and file the same with any of the Labor Arbiters of the
appropriate regional branch of the NLRC (Section 1 [c], Rule XI, Book III, Rules to implement
the Labor Code.).
Llagas, Mark

885.
Appeals to the NLRC must be on the following grounds except:
A. If the decision, resolution or order was secured through fraud or coercion, including graft and
corruption
B. If abuse of discretion on the part of the Regional Director is proven
C. If serious errors in the findings of facts are raised which, if not corrected, would not cause
grave or irreparable damage or injury to the appellant.
D. A and C
E. B and C
 
Rationale:
Under Section 2, Rule VI of the 2011 NLRC Rules of Procedure, the appeal may be entertained
only on any of the following grounds:
1. If there is prima facie evidence of abuse of discretion on the part of the Regional
Director;

829. If the decision, resolution or order was secured through fraud or coercion,
including graft and corruption;
830. If made purely on questions of law; and/ or
831. If serious errors in the findings of facts are raised which, if not corrected, would
cause grave or irreparable damage or injury to the appellant.
Munar, Kristan Jay

 886. Which of the following falls under the special groups of employees?

a. Women
b. Minors
c. Househelpers
d. All of the above
Basis: 1. SPECIAL GROUPS OF EMPLOYEES UNDER THE LABOR CODE. In the Labor
Code, Title lll of Book III thereof, there are four (4) "special groups of employees", namely: a)
Women, covered by Articles 130 to 136 [138], Chapter ll , Title III of Book III; b) Minors,
covered by Articles 137 [139] to 138 [140], Chapter ll, Title III of Book III; 886 c)
Househelpers, now known as "domestic workers" or "kasambahays” d) HomeworkersCovered
by Articles 151 [153] to 153 [155], Chapter IV, Title lll of Book lll thereof. Night Workers not to
be confused with the foregoing special groups are the following "special workers," so designated
under the Labor Code, viz.: a) Apprentices b) Learners c) Handicapped workers Being "special
groups of employees" and "special workers," they are governed by rules separate and distinct
from those generally applicable to all other workers.

Nabunat, Irene
887. There are four (4) "special groups of employees" named under Labor Code, Title lll of Book
III, which of the following below does not belong to the group?

A. Women

B. Minors

C. Househelpers/domestic workers or kasambahay

D. Homeworkers

E. Night Workers

Basis: In the Labor Code, Title lll of Book III thereof, there are four (4) "special groups of
employees", namely:  

a) Women, covered by Articles 130 to 136 [138], Chapter ll , Title III of Book III; 

b) Minors, covered by Articles 137 [139] to 138 [140], Chapter ll, Title III of Book III; 

c) Househelpers, now known as "domestic workers" or "kasambahays” 

d) Homeworkers Covered by Articles 151 [153] to 153 [155], Chapter IV, Title lll of Book lll
thereof.

Night Workers not to be confused with the foregoing special groups are the following "special
workers," so designated under the Labor Code, viz.: 

a) Apprentices 

b) Learners 

c) Handicapped workers

Being "special groups of employees" and "special workers," they are governed by rules separate
and distinct from those generally applicable to all other workers. 

888. Olayres, Jon Vincent - did not submit

889. Otanes, Jasmaine

____________ ,an Act defining violence against women and their children, providing for
protective measures for victims, prescribing penalties therefor, and for other purposes, otherwise
known as the "Anti-Violence Against Women and Their Children Act of 2004.
a. R.A. No. 9003
b. R.A. No. 9344
c. R.A. No. 9262
d. R.A. No. 9995
Rationale:
R.A. No. 9262 [March 08, 2004], an Act defining violence against women and their children,
providing for protective measures for victims, prescribing penalties therefor, and for other
purposes, otherwise known as the "Anti-Violence Against Women and Their Children Act of
2004.

890. Pangda, Vince

STATEMENT I: Article 130 [132] grants to the DOLE Secretary the authority to establish
minimum standards meant to ensure the safety and health of women employees through the
provision of the facilities mentioned therein.
STATEMENT II: The Labor Code, specifically Article 130 [132] , only requires employers to
provide seats for women. No similar requirement is mandated for men or male workers..
A. Only statement I is true
B. Only statement II is true
C. Both Statements are true
 D. Both statements are false

BASIS:
STATEMENT I & STATEMENT II:
ARTICLE 130 OF THE LABOR CODE
Article 130 [132]. Facilities for Women. - The Secretary of Labor and Employment shall
establish standards that will ensure the safety and health of women employees. In appropriate
cases, he shall, by regulations, require any employer to:
(a) Provide seats proper for women and permit them to use such seats when they are free from
work and during working hours, provided they can perform their duties in this position without
detriment to efficiency;
1. b) To establish separate toilet rooms and lavatories for men and women and provide at
least a dressing room for women;

(c)To establish a nursery in a workplace for the benefit of the women employees therein; and
(d) To determine appropriate minimum age and other standards for retirement or termination in
special occupations, such as those of flight attendants and the like.

891. Pajarillaga, Sheena

Article 131 [133]. Maternity Leave Benefits. - (a) Every employer shall
grant to any pregnant woman employee who has rendered an aggregate
service of at least ____ for the last ___ ______, maternity
leave of at least two (2) weeks prior to the expected date of delivery and
another four (4) weeks after normal delivery or abortion with full pay based
on her regular or average weekly wages. The employer may require from any
woman employee applying for maternity leave the production of a medical
certificate stating that delivery will probably take place within two weeks.
a. 6 months, 12 months
b. 12 months, 12 months
c. 3 months. 6 months
d. all of the above
BASIS: 
Article 131 [133]. Maternity Leave Benefits. - (a) Every employer shall grant to any pregnant
woman employee who has rendered an aggregate service of at least six (6) months for the last
twelve (12) months, maternity
leave of at least two (2) weeks prior to the expected date of delivery and
another four (4) weeks after normal delivery or abortion with full pay based on her regular or
average weekly wages. The employer may require from any woman employee applying for
maternity leave the production of a medical certificate stating that delivery will probably take
place within two weeks.
b) The maternity leave shall be extended without pay on account of illness medically certified to
arise out of the pregnancy, delivery, abortion or miscarriage, which renders the woman unfit for
work, unless she has earned unused leave credits from which such extended leave may be
charged.
(c) The maternity leave provided in this Article shall be paid by the employer only for the first
four (4) deliveries by a woman employee after the effectivity of this Code.

892. Payoyo, Michael

All covered female workers in government and the private sector, including those in the informal
economy, regardless of civil status or the legitimacy of her child, shall be granted how many
days of maternity leave with full pay?

A. 120 days maternity leave with full pay

B. 105 days maternity leave with full pay
C. 135 days maternity leave with full pay
D. 150 days maternity leave with full pay

Rationale:
All covered female workers in government and the private sector, including those in the informal
economy, regardless of civil status or the legitimacy of her child, shall be granted one hundred
five (105) days maternity leave with full pay and an option to extend for an additional thirty (30)
days without pay: Provided, That in case the worker qualifies as a solo parent under R.A. No.
8972, or the "Solo Parents' Welfare Act", the worker shall be granted an additional fifteen (15)
days maternity leave with full pay.
Peralta, Marvin

893. The Employment contract is governed by the Labor Code while the Service agreement is
governed by _____________ ?

a. Civil Code
b. Labor Code
c. Obligation and Contract
d. Law
e. None of the Above

Rationale : According to the Labor code, Service Agreement are governed by Civil Code.
Sao, Inez
894.  For an additional maternity leave of thirty (30) days without pay is availed of at the option
of the female worker the followinf must be provided for except:

a. That the employer shall he given due notice, in wilting, at least ninety (90) days before the end
of her maternity leave

b. That the employer shall he given due notice, in wilting, at least forty-five (45) days before the
end of her maternity leave

c. That no prior notice shall be necessary in the event of a medical emergency but subsequent
notice shall be given to the head of the agency.

d. B and C

e. A only

Rationale:

An additional maternity leave of thirty (30) days without pay, can be availed of at the option of
the female worker: Provided, That the employer shall he given due notice, in wilting, at
least forty-five (45) days before the end of her maternity leave: Provided further, That no prior
notice shall be necessary in the event of a medical emergency but subsequent notice shall be
given to the head of the agency.
895. Saguiguit, Elvin James
Statement I. All female workers in the government and female members of the SSS, regardless
of their civil status, shall be granted maternity leave, with full pay, upon compliance with the
preceding section.
Statement II. Maternity benefits shall cover all married and unmarried women, including female
workers in the informal economy.
a. Statement I is True, Statement II is False
b. Statement I is False, Statement II is True.
c. Both Statements are True
d. Both Statements are False
Rationale:
MATERNITY LEAVE FOR WOMEN REGARDLESS OF CIVIL STATUS. All female
workers in the government and female members of the SSS, regardless of their civil status, shall
be granted maternity leave, with full pay, upon compliance with the preceding section.
Maternity benefits shall cover all married and unmarried women, including female workers in
the informal economy.

Soriano, Ed Gregory
896.  Hours worked refers to all compensable period of work. Hours work includes:
 A. All the time during which an employee is required to be on duty or to be at a prescribed
workplace.
B. All the time during which an employee is suffered or permitted to work.

C. All the time during which an employee is on duty or at the prescribed workplace; and all the
time during which an employee is suffered or permitted to work.

D. All the time during which an employee is required to be on duty or to be at a prescribed
workplace; and all the time during which an employee is suffered or permitted to work.

BASIS; under Art. 84 of the labor code; Hours worked shall include (a) all time during which an
employee is required to be on duty or to be at a prescribed workplace; and (b) all time during
which an employee is suffered or permitted to work.

JD2A-MCQ

ADAPANG, Wal Graceter

Page 897

A case was filed against the managing head, Zowan So, for discriminating against Malou Pitt,
although qualified for the position and highly recommended, for the sole reason that he did not
want to spend anymore for the benefits bound to the employment of women. He was penalized to
pay a fine of Php180,000 and imprisonment of 3yrs and 1day. Is this correct?

a. No, although the discrimination of women is against the law, the imprisonment laid
on Zowan So should not be less than 6 years and 1 day or not more than 12 years.
b. No, although the discrimination of women is against the law, it is provided under the law
that the penalty should be a payment of fine OR imprisonment.
c. Yes, this is correct. 
d. None of the choices.

RATIONALE:

NON-DISCRIMINATION.

No employer, whether in the public or private sector, shall discriminate against the employment
of women in order to avoid the benefits provided for in this law

PENALTIES.

 Whoever fails or refuses to comply with the provisions of this Act shall be punished by a
fine of not less than P20,000.00 nor more than P200,000.00, and imprisonment of not less
than six (6) years and one (1) day our mom than twelve (12) years or both. If the act or
omission penalized by this Act shall be committed by an association, partnership,
corporation, or any other institution, its managing head, directors, or partners shall be
liable to the penalties provided in this Act for the offense.

 Failure on the part of any association, partnership, corporation, or private enterprise to

comply with the provisions of this Act shall be a ground for non-renewal of business
permits.

JD2A-MCQ

ADAPANG, Wal Graceter

Page 898

Benny Lahng established a company employing 250 workers in Marikina. This company has
been required by law to maintain a clinic or infirmary for its employees. Is the company also
required to provide free family planning services to its employees?
 a. Yes, it is written under the law that they are required to provide free family
planning services to their employees and their spouses which shall include, but not
limited to, the application or use of contraceptives.
b. Yes, they are required by law to provide free family planning services to their employees
and their spouses but this does not include the application or use of contraceptives.
c. Yes, they are required by law to provide free family planning services only to their
employees and does not include the application or use of contraceptives. The application
or use of contraceptives remain personal to the employees and their spouses.
d. No.

RATIONALE:

Article 132 [134]. Family Planning Services; Incentives for Family

Planning. -

(a) Establishments which are required by law to maintain a clinic or infirmary shall provide free
family planning services to their employees which shall include, but not be limited to, the
application or use of contraceptive pills and intrauterine devices.

(b) In coordination with other agencies of the government engaged in the promotion of family
planning, the Department of Labor and Employment shall develop and prescribe incentive bonus
schemes to encourage family planning among female workers in any establishment or enterprise.

JD2A-MCQ

CAMUYOT, Denzel W.

Page 899
Under Article 133 of the Labor code, which are acts of discrimination that may be committed by
an employer against a woman employee in regard to terms and conditions of employment solely
by reason of her sex?
I. Payment of a lesser compensation, including wage, salary or other form of remuneration
and fringe benefits, to a female employee as against a male employee, for work of equal
value
II. Favoring a male employee over a female employee with respect to promotion, training
opportunities, study and scholarship grants solely on account of their sexes.
A. I only
B. II only
C. I and II
 D. None of the above
Explanation: 
ACTS OF DISCRIMINATION PROHIBITED UNDER ARTICLE 133 [135]. Article 133 [135]
enumerates two (2) acts of discrimination that may be committed by an employer against a
woman employee in regard to terms and conditions of employment solely by reason of her sex,
thus: (a) Payment of a lesser compensation, including wage, salary or other form of remuneration
and fringe benefits, to a female employee as against a male employee, for work of equal value;
and (b) Favoring a male employee over a female employee with respect to promotion, training
opportunities, study and scholarship grants solely on account of their sexes.

JD2A-MCQ

CAMUYOT, Denzel W

Page 900
This law condemns discrimination against women in all its forms and pursues by all appropriate
means without delay, the policy of eliminating discrimination against women in keeping with the
Convention of the Elimination of All Forms of Discrimination Against Women (CEDAW) and
other international instruments consistent with Philippine Law.
A. R.A. No. 9710 “The Magna Carta of Women”
B. R.A. No. 9262 “Anti-Violence Against Women and Their Children”
C. R.A. No. 8972 “The Solo Parents’ Welfare Act of 2000”
D. R.A. No. 7877 “Anti-Sexual Harassment Act of 1995." It declares sexual harassment
unlawful in three (3) situations, namely: (1) employment, (2) education, or (3) training
environment”
Explanation:
R.A. No. 9710, otherwise known as, “The Magna Carta of Women,” It condemns discrimination
against women in all its forms and pursues by all appropriate means without delay, the policy of
eliminating discrimination against women in keeping with the Convention of the Elimination of
All Forms of Discrimination Against Women (CEDAW) and other international instruments
consistent with Philippine Law.
JD2A-MCQ

CAMUYOT, Denzel W.

Page 901
Article 134 states that _________ of the employer, to actually dismiss, discharge, discriminate or
otherwise prejudice a woman employee merely by reason of her marriage.
A. it is an allowable act
B. it is favorable
C. it is an unartful act 
D. it is an accepted act
Explanation: 
Article 134 [136] considers as an unlawful act of the employer to require as a condition of
employment or continuation thereof that a woman shall not get married or to stipulate, expressly,
or tacitly, that upon getting married, a woman employee shall be deemed resigned or separated.
It is likewise an unartful act of the employer, to actually dismiss, discharge, discriminate or
otherwise prejudice a woman employee merely by reason of her marriage.
JD2A-MCQ

CAYABAS, Irish

Page 902
The best test to ascertain the validity of a policy against marriage policy is the so-called
Reasonable Business Necessity Rule. 

A. True
B. False
C. False. It is the Business Reasonable Necessity Rule
D. None of the choices

Rationale: The best test to ascertain the validity of a policy against marriage policy is the so-
called Reasonable Business Necessity Rule.
JD2A-MCQ

CAYABAS, Irish

Page 903
Which of the following is NOT a prohibited act of an employer? 

A. To deny any woman employee the benefits provided for in this Chapter or to discharge any
woman employed by him for the purpose of preventing her from enjoying any of the benefits
provided under this Code; 

B. To discharge such woman on account of her pregnancy, or while on leave or in confinement

due to her pregnancy; 

C. To discharge or refuse the admission of such woman upon returning to her work for fear that
she may again be pregnant.
D. None of the above
Basis: Article 135 of the Labor Code of the Philippines
JD2A-MCQ

CHENG, Jade

Page 904 
Which of the following statements is true with regards to the requisites for the regular
employment of women working during nighttime at entertainment places? 
Statement I: She works under the effective control or supervision of the employer.
Statement II: She has worked therein for a substantial period of time as determined by the DOLE
Secretary.
a) Statement I only
b) Statement II only
c) Statement I and II
d) None of the Above
Rationale:
Under Article 138 of the Labor Code, Any woman who is permitted or suffered to work, with or
without compensation in any night club, cocktail lounge, massage clinic, bar or similar
establishments may be considered a regular employee of such establishment for purposes of the
application of labor and social legislation if the following requisites concur:
 1) She works under the effective control or supervision of the employer; and 
2) She has worked therein for a substantial period of time as determined by the DOLE Secretary.
Additionally the fact that such woman is made to perform activities that are usually necessary or
desirable in the usual business or trade of her employer all the more makes her employment a
regular one by reason of nature of work. Hence, if the night club operator does not control nor
direct the details and manner of the woman's work in the entertainment of nightclub patrons as
she has no fixed hours of work since she may come and go as she pleases, then she could not be
deemed a regular employee thereof.
JD2A-MCQ
CHENG, Jade

Page 905
Which of the following statements is true with regards to the employment of minors?
Statement I: No child below fifteen (15) years of age shall be employed, unless he works directly
under the sole responsibility of his parents or guardian, and his employment does not in any way
interfere with his schooling.
Statement II: An employer shall not allow the employment of a person below eighteen (18) years
of age in an undertaking which is hazardous or deleterious in nature as determined by the
Secretary of Labor and Employment.
a) Statement I and II
b) Statement I only
c) Statement II only
d) None of the Above
Rationale:
Articles 139 and 140 are the only provisions in the Labor Code regulating the employment of
minors, more appropriately known as "working children.” P.D. No 148 was amended in 1974 by
P.D. No. 442, otherwise known as the Labor Code of the Philippines. The Labor Code raised the
minimum employable age from 14 to 15 years. 
Under its Article 139, the employment of a child below 15 years is prohibited “except when he
works directly under the sole responsibility of his parents or guardian, and his employment
does not in any way interfere with his schooling.” It must be noted that the Labor Code retained
the previous minimum age for hazardous undertakings to 18 years. It also added a minimum age
requirement to apprentices which is 14 years. 

JD2A-MCQ

Co So, Lianne Kathrin

pp. 906
Articles ______ and ______ are the only provisions in the Labor Code regulating the
employment of minors, more appropriately known as "working children.”

A. 137 (139) and 138 (140) (ANSWER)

B. 200 (202) and 201 (204)
C. 456 (459) and 460 (461)
D. 889 (890) and 900 (902)

BASIS: Articles 137 [139] and 138 [140] are the only provisions in the Labor Code regulating
the employment of minors, more appropriately known as "working children.” However, these
articles should be viewed and understood within the context of new laws affecting the
employment of children which, to a large extent, have broadened the protection afforded them.
While the principles laid down in these articles are still tenable and relevant, the same, however,
should now be interpreted and construed in the light of new principles enunciated in the new
special laws.

JD2A-MCQ

Co So, Lianne Kathrin

pp. 907
Current governing law on the employment of children. 

A. Section 12, Article VIII of R.A. No. 7610 (ANSWER)

B. Section 21, Article VIII of R.A. No. 7610
C. Section 12, Article VII of R.A. No. 7610
D. Section 21, Article VII of R.A. No. 7610

BASIS: Section 12, Article VIII of R.A. No. 7610, specifically treats the subject of employment
of children. It was first amended by R.A. No 7658 and later, by R.A. No. 9231. As amended. 
JD2A-MCQ

DE CASTRO, Runniel Ivan

Page 908
The employment of a (working) child is allowed provided that such employment be strictly
construed under the following conditions, except:
A. The total number of hours worked shall be in accordance with the working hours
prescribed in the Rules
B. The employment does not endanger the child’s life, safety, health and morals, nor impair
the child’s normal development
C. The child is provided with education up to the tertiary level
D. The employer secures a work permit for the child
Explanation: Such employment shall be strictly construed under the following conditions:
i. The total number of hours worked shall be in accordance with the working hours prescribed in
the Rules (Section 15 Hours of Work of a Working Child; Department Order No. 65-04); ii. The
employment does not endanger the child’s life, safety, health and morals, nor impair the child’s
normal development (normal development of the child refers to the physical, emotional, mental
and spiritual growth of the child within a safe and nurturing environment where he/she is given
adequate nourishment, care and protection and the opportunity to perform tasks appropriate at
each stage of development); iii. The child is provided with at least the mandatory elementary or
secondary education; and iv. The employer secures a work permit for the child.
JD2A-MCQ

DE CASTRO, Runniel Ivan

Page 909
As a general rule, no child below 15 years of age shall be employed, permitted or suffered to
work in any public or private establishment. The only exceptions to the prohibition on the
employment of a child below 15 years of age are as follows, except:
A. When the child works under the sole responsibility or his/her parents or guardian,
provided that only members of the child’s family are employed
B. When the child’s employment or participation in public entertainment or information is
essential regardless of the extent of the child’s role
C. When the child is provided with at least the mandatory elementary or secondary
education. 
D. None of the above. 

Explanation: Section 12 of RA 7610, as amended provides choices A and B as the exceptions to

the rule that children below 15 years of age shall not be employed.
JD2A-MCQ

DIONISIO, Wagner

(Page 910) 
The rule is that no child shall be engaged in the worst forms of child labor. The phrase “worst
forms of child labor” refers to any of the following EXCEPT one.
a. All forms of slavery or practices similar to slavery, such as sale and trafficking of
children, debt bondage and serfdom and forced or compulsory labor, including
recruitment of children for use in armed conflict.
b. The use, procuring, offering or exposing of a child for prostitution, for the production of
pornography or for pornographic performances.
c. ) The use, procuring or offering of a child for illegal or illicit activities, including the
production or trafficking of dangerous drugs or volatile substances prohibited under
existing laws.
d. Abducting for the purpose of keeping the child in custody and keeping him in a
locked in a room for a long time.

Rationale:
(a) All forms of slavery or practices similar to slavery, such as sale and trafficking of children,
debt bondage and serfdom and forced or compulsory labor, including recruitment of children for
use in armed conflict.
(b) The use, procuring, offering or exposing of a child for prostitution, for the production of
pornography or for pornographic performances.
(c) The use, procuring or offering of a child for illegal or illicit activities, including the
production or trafficking of dangerous drugs or volatile substances prohibited under existing
laws; or
(d) Work which, by its nature or the circumstances in which it is carried out, is hazardous or
likely to be harmful to health, safety or morals of children, such that it:
JD2A-MCQ
DIONISIO, Wagner

(Page 911)
Work which, by its nature or the circumstances in which it is carried out, is hazardous or likely to
be harmful to health, safety or morals of children, such that it:
a. Debases, degrades or demeans the intrinsic worth and dignity of a child as a human
being; or Exposes the child to physical, emotional or sexual abuse, or is found to be
highly stressful psychologically or may prejudice morals; or
b. Is performed underground, underwater or at dangerous heights; or Involves the use of
dangerous machinery, equipment and tools such as power-driven or explosive power-
actuated tools; or
c. Exposes the child to physical danger such as, but not limited to the dangerous feats of
balancing, physical strength or contortion, or which requires the manual transport of
heavy loads; or Is performed in an unhealthy environment exposing the child to
hazardous working conditions, elements, substances, co-agents or processes involving
ionizing, radiation, fire, flammable substances, noxious components and the like, or to
extreme temperatures, noise levels or vibrations.
d. Is performed under particularly controlled conditions; and exposes the child to
biological agents with highly protective equipment such as bacteria and fungi and
other parasites.
Rationale: 
The rule is that no child shall be engaged in the worst forms of child labor. The phrase “worst
forms of child labor” refers to any of the following:

(d) Work which, by its nature or the circumstances in which it is carried out, is 

hazardous or likely to be harmful to health, safety or morals of children, such that it:

i. Debases, degrades or demeans the intrinsic worth and dignity of a child as a 

human being; or

ii. Exposes the child to physical, emotional or sexual abuse, or is found to be highly stressful
psychologically or may prejudice morals; or

iii. Is performed underground, underwater or at dangerous heights; or

iv. Involves the use of dangerous machinery, equipment and tools such as 

power-driven or explosive power-actuated tools; or

v. Exposes the child to physical danger such as, but not limited to the dangerous 

feats of balancing, physical strength or contortion, or which requires the manual 

transport of heavy loads; or.

vi. Is performed in an unhealthy environment exposing the child to hazardous 

working conditions, elements, substances, co-agents or processes involving 

ionizing, radiation, fire, flammable substances, noxious components and the like, 

or to extreme temperatures, noise levels or vibrations; or

vii. Is performed under particularly difficult conditions; or

viii. Exposes the child to biological agents such as bacteria, fungi, viruses, 

protozoa, nematodes and other parasites; or

ix. Involves the manufacture or handling of explosives and other pyrotechnic 

products.

JD2A-MCQ
DOCLAN, Raponsel

Page 912
Q. What is the basic rule on “Work Permit” under R. A. No. 7610, as amended by R.A. No.
9231.
a. The basic rule that no child below fifteen (15) years of age is allowed to commence work
without a work permit which refers to the permit secured by the employer, parent or
guardian from the DOLE for any child below fifteen (15) years of age in any work allowed
under the law.
b. The basic rule that no child below sixteen (16) years of age is allowed to commence work
without a work permit which refers to the permit secured by the employer, parent or guardian
from the DOLE for any child below sixteen (16) years of age in any work allowed under the law.
c. The basic rule that no child below seventeen (17) years of age is allowed to commence work
without a work permit which refers to the permit secured by the employer, parent or guardian
from the DOLE for any child below seventeen (17) years of age in any work allowed under the
law.
d. The basic rule that no child below eighteen (18) years of age is allowed to commence work
without a work permit which refers to the permit secured by the employer, parent or guardian
from the DOLE for any child below eighteen (18) years of age in any work allowed under the
law.
Rationale:
WORK PERMIT 
The basic rule that no child below fifteen (15) years of age is allowed to commence work
without a work permit which refers to the permit secured by the employer, parent or guardian
from the DOLE for any child below fifteen (15) years of age in any work allowed under the
law. Its period of validity shall in no case exceed one (1) year. R. A. No. 7610, as amended by
R.A. No. 9231. (Section 3, Chapter 1)

JD2A-MCQ

DOCLAN, Raponsel

Page 913
Q. R.A. NO. 10361 is otherwise known as “Domestic Workers Act”or _____________.
a. Overseas Filipino Workers Act
b. National Labor Relations Act
c. Batas Kasambahay 
d. Migrant Workers Act

Rationale:
Chapter III on Househelpers originally covers Articles 139 [141] to 150 [152]. This entire
chapter, however, has been expressly repealed in 2013 by R.A. No. 10361, otherwise known as
“Domestic Workers Act” or “Batas Kasambahay”

JD2A-MCQ

FONTANILLA, Giovani Joy

Based on p. 914

Which of the following is not covered by RA No. 10361:

A. General Househelper
B. Cook
C. Any person who regularly performs domestic work in one household on an occupational
basis
 D. Any other person who performs work occasionally or sporadically and not on an
occupational basis.

Explanation:

R.A. No. 10361 applies to all domestic workers or kasambahays employed and working within
the country. More specifically, this law applies to all parties to an employment contract for the
services of the following Kasambahay, whether on a live-in or live-out arrangement, such as, but
not limited to: 

a) General househelper; 

b) Yaya; 

c) Cook; 

d) Gardener; 

e) Laundry person; or 

f) Any person who regularly performs domestic work in one household on an occupational
basis. 

The following, however, are not covered by this law: 

a) Service providers; 

b) Family drivers; 

c) Children under foster family arrangement; and 

d) Any other person who performs work occasionally or sporadically and not on an occupational
basis

JD2A-MCQ

FONTANILLA, Giovani Joy

Based on p. 915
Who shall shoulder the cost of hiring of a kasambahay and the expenses directly used for his/her
transfer from place of origin to the place of work if she is indirectly hired through a licensed
Private Employment Agency?

A. The kasambahay
 B. The employer
C. The PEA
D. None of the above

Explanation:

The employer shall shoulder the cost of hiring of a kasambahay, whether he/she is hired through
a licensed PEA. In no case shall the recruitment of finder’s fees be charged against the
kasambahay. 

The employer, whether the kasambahay is hired directly or through PEA, shall also pay the
expenses directly used for his/her transfer from place of origin to the place of work. The
employer may recover deployment costs from the kasambahay whenever he/she leaves without
justifiable reason within six (6) months from employment.

JD2A-MCQ

GOPENG, Camila Joy

PAGE 916
The following must be stated in the pre-employment contract of a kasambahay, except:
A. Loan agreement
B. Period of employment
C. The Duties and responsibilities of the kasambahay, responsibility to render satisfactory
service at all times
D. Educational Plan

Rationale:
A,B, and C is provided for under Section 11 under the kasambahay law.

JD2A-MCQ

GOPENG, Camila Joy

PAGE 917

It shall be unlawful to employ any person below _______________ years of age as Kasambahay.

A. 15
B. 18
C. 17
D. 14

Rationale:

R.A. No. 9231 prohibits children below the age of 15 to work as a kasambahay.
JD2A-MCQ

LUMABAN, Klariz June

Page 918
The following are the rights and privileges granted to kasambahays under R.A. No. 10361,
except:
A. Service incentive leave
B. Coverage under the SSS, PhilHealth and Pag-IBIG laws
C. Right to form, join, or assist labor organization
D. 14th month pay
 
Rationale:
The following are the rights and privileges granted to kasambahays under R.A. No. 10361: 

(1) Minimum wage; 

(2) Other mandatory benefits, such as the daily and weekly rest periods; 

(3) Service incentive leave; 

(4) 13th month pay; 

(5) Freedom from employers’ interference in the disposal of wages; 

(6) Coverage under the SSS, PhilHealth and Pag-IBIG laws; 

(7) Standard of treatment; 

(8) Board, lodging, and medical attendance; 

(9) Right to privacy; 

(10) Access to outside communication; 

(11) Access to education and training; 

(12) Right to form, join, or assist labor organization; 

(13) Right to be provided a copy of the employment contract; 

(14) Right to certificate of employment; 

(15) Right to terminate employment; and 

(16) Right to exercise their own religious beliefs and cultural practices.
JD2A-MCQ

LUMABAN, Klariz June

Page 919

Which among the following is not among the minimum wage of the kasambahays:

(a) P3,500 a month for those employed in the NCR

(b) P2,500 to P4,000 a month for those employed in chartered cities and first class municipalities

(c) P1,800 to P3,000 a month for those employed in other municipalities

(d) All of the above are minimum wages
(e) None of the above are minimum wages

Rationale:
The minimum wage of the kasambahays as of December 2017 shall not be less than the
following: 

(a) P3,500 a month for those employed in the NCR; 

(b) P2,500 to P4,000 a month for those employed in chartered cities and first-class
municipalities; and 

(c) P1,800 to P3,000 a month for those employed in other municipalities.

JD2A-MCQ

MANIWAG, Leonora

 pp. 759
The amounts mentioned apply only to ______________________ and not to investments.
a. Substantial capital 
b. Share capital 
c. Investment capital
d. Savings capital

Rationale:
Notably, the amounts mentioned above apply only to "substantial capital" and not to
"investments.” Department Order No. 174 does not lay down in clear and specific terms, what
amount constitutes "investments in the form of tools, equipment, machineries, and work
premises, among others."
JD2A-MCQ

MANIWAG, Leonora
JD2A-MCQ

MARIGMEN, Lianne

p. 922 

What shall be the standard of treatment that the employer or any member of the household must
comply with to the kasambahay so he or she shall not be subjected to any kind of abuse,
including repeated verbal or psychological, nor be inflicted with any form of physical violence or
harassment or any act tending to degrade his or her dignity as defined under the applicable laws? 

A. The kasambahay shall be treated with love

B. The kasambahay shall be treated with respect 
C. The kasambahay shall be treated with care 
D. The kasambahay shall be treated with comfort 

Rationale:

The kasambahay shall be treated with respect by the employer or any member of the household.
He/she shall not be subjected to any kind of abuse, including repeated verbal or psychological,
nor be inflicted with any form of physical violence or harassment or any act tending to degrade
his/her dignity, as defined  under the Revised Penal Code,  Violence Against Women and
Children Law (RA 9262), Special Protection of Children Against Child Abuse, Exploitation, and
Discrimination Act (RA 7610) as amended by RA 9231, Anti-Trafficking in Persons Act of 2003
(RA 9208),  and other applicable laws. 
JD2A-MCQ

MARIGMEN, Lianne

p. 923

Which of the following rights and privileges does the employer enjoy? 

A. To require submission of pre-employment documents by the kasambahays 

B. To recover deployment expenses
C. To demand replacement
D. To terminate employment
E. All of the above

Rationale: The employer enjoys the following rights:

a) To require submission of pre-employment documents by the kasambahays;

b) To recover deployment expenses;

c) To demand replacement; and

d) To terminate employment.
JD2A-MCQ

NGINA, Kristelle

page 924.

All communication and information pertaining to the employer or members of the household
shall be treated as ____________________________ and shall not be publicly disclosed by the
____________________ during and after employment.

a. Privileged and confidential; kasambahay

b. Privileged and confidential; driver or gardener
c. Limited and confidential; kasambahay
d. Limited and confidential; driver or gardener

Rationale:

All communication and information pertaining to the employer or members of the household
shall be treated as privileged and confidential and shall not be publicly disclosed by the
kasambahay during and after employment. Such privileged information shall be inadmissible in
evidence, except when the suit involves the employer or any member of the household in a crime
against persons, property, personal liberty and security, and chastity. 
JD2A-MCQ

NGINA, Kristelle

Page 925

It was held in Apex Mining Co., Inc. v NLRC that under the law:

a. In order for a domestic worker to be considered as such, he/she must render “services in
and about the employer’s home and which services are usually necessary or desirable for
the maintenance and enjoyment thereof, and ministers exclusively to the personal comfort
and enjoyment of the members of the family.”
b. The definition of domestic worker covers drivers, domestic servants, laundry women,
yayas, gardeners, houseboys, and other similar house helps
c. The definition of a domestic worker cannot be interpreted to include house help or
laundry women working in staff houses of a company, like the petitioner who attends to
the needs of the company’s guest and other persons availing of said facilities.
d. All of the above

Rationale:

In holding that Candida should be considered as regular employee and not as a domestic worker,
the Court emphasized that under the law, in order for a domestic worker to be considered as
such, he/she must render “services in and about the employer’s home and which services are
usually necessary or desirable for the maintenance and enjoyment thereof, and ministers
exclusively to the personal comfort and enjoyment of the members of the family.” And this
definition covers drivers, domestic servants, laundry women, yayas, gardeners, houseboys, and
other similar househelps. The definition cannot be interpreted to include househelp or laundry
women working in staffhouses of a company, like the petitioner who attends to the needs of the
company’s guest and other persons availing of said facilities. By the same token, it cannot be
considered to extend the driver, houseboy, or gardener working exclusively working in the
company, the staffhouses, and its premises. They may not be considered as within the meaning
of a house helper or domestic servant as above-defined by law.

JD2A-MCQ

PASCUAL, Martin Allen

Page 926
 1. Which of the following statements is true:

Statement I: If the work is not directly related to the employer’s business, then the person
performing such work could not be considered an employee of the latter. 

Statement II: The determination of the existence of an employer-employee relationship is defined

by law according to the facts of each case, regardless of the nature of the activities involved.

A. Statements I & II
B. Statements I only
C. Statements II only
D. Neither statement

Rationale:

In the case of Remington Industrial Sales Corp. v. Castaneda, the Supreme Court decided that it
is wrong to say that if the work is not directly related to the employer’s business, then the person
performing such work could not be considered an employee of the latter. The determination of
the existence of an employer-employee relationship is defined by law according to the facts of
each case, regardless of the nature of the activities involved.

JD2A-MCQ

PASCUAL, Martin Allen

Page 927

1. The kasambahay and the employer may mutually agree for the kasambahay to
temporarily perform a task for the benefit of another household under the following
conditions, except:
 A. There is an agreement between the kasambahay and the employer for the purpose,
particularly on the tasks to be performed
B. The kasambahay is entitled to additional payment of not less than the applicable
minimum wage rate
C. The original employer shall be responsible for any liability incurred by the kasambahay
on account of such arrangement
D. The original employer is charging an amount from the other household for the
arrangement

Rationale:

Section 23, Article IV; Section 11, Rule V, IRR of R.A. 10361 provides that one of the
requirements for a kasambahay to temporarily perform a task for the benefit of another
household the original employer shall not charge any amount from the other household for the
arrangement.

JD2A-MCQ

PEREZ, Nadjia Lyxen

PAGE 928
________ shall refer to any act or a series of acts committed by an employer or any member
of his household against any kasambahay which results in or is likely to result in physical,
sexual, psychological harm or economic abuse including threats of such acts, battery, assault,
coercion, harassment or arbitrary deprivation of liberty
 A. Abuse
B. Stress
C. Maltreatment 
D. Mistreatment
Rationale: “Abuse" shall refer to any act or a series of acts committed by an employer or any
member of his household against any kasambahay which results in or is likely to result in
physical, sexual, psychological harm or economic abuse including threats of such acts, battery,
assault, coercion, harassment or arbitrary deprivation of liberty (Section 2, Rule X, Id)

JD2A-MCQ

PEREZ, Nadjia Lyxen

PAGE 929
The following may report any act of abuse committed against a kasambahay except:
a. Parents or guardians of the offended kasambahay
b. At least two (2) concerned responsible citizens of the city or municipality where the
abuse occurred and who has personal knowledge of the offense committed
c. Ascendants, descendants or collateral relatives within the fifth civil degree of
consanguinity or affinity
d. Lawyer, counsellor, therapist, or healthcare provider of the offended kasambahay
Rationale:
The following may report any act of abuse committed against a kasambahay:
(a) Offended kasambahay; 

(b) Parents or guardians of the offended kasambahay; 

(c) Ascendants, descendants or collateral relatives within the fourth civil degree of consanguinity
or affinity; 

(d) Social workers from the LSWDOs or the DSWD Field Office; 

(e) Police officers from the Women and Children Protection Desks; 

(f) Barangay Officials; 

(g) Lawyer, counsellor, therapist, or healthcare provider of the offended kasambahay; or 

(h) At least two (2) concerned responsible citizens of the city or municipality where the abuse
occurred and who has personal knowledge of the offense committed. (Section 3, Rule X,Id)

JD2A-MCQ

PEREZ, Nadjia Lyxen

PAGE 930
Under the pre-termination of employment, in case the duration is not determined by stipulation
or by nature of service, the employer or the kasambahay may give the notice to end the
employment relationship _____ days before the intended termination of employment.
A. Three (3)
B. Five (5)
C. Seven (7)
D. Fifteen (15)
Rationale:
In case the duration of employment is specified in the contract, the kasambahay and the
employer may mutually agree upon notice to terminate the contract of employment before the
expiration of its term. In case the duration is not determined by stipulation or by nature of
service, the employer or the kasambahay may give the notice to end the employment relationship
five (5) days before the intended termination of employment. (Section 32, Article V, R.A No.
10361; Section 1, Rule VII, Id)
JD2A-MCQ

UDDI-E, Noemi

Page 931
Which of the following causes is a ground of termination for the employment of kasambahay?

A. Gross or habitual neglect or inefficiency by the kasambahay in the performance of duties

B. Fraud or willful breach of the trust reposed by the employer on the kasambahay

C. Misconduct or willful disobedience by the kasambahay of the lawful order of the employer in
connection with the former's work

D. All of the Above

Rationale: An employer may terminate the employment of the kasambahay at any time before
the expiration of the contract for any of the following causes: 

(a) Misconduct or willful disobedience by the kasambahay of the lawful order of the employer in
connection with the former's work; (b) Gross or habitual neglect or inefficiency by the
kasambahay in the performance of duties; (c) Fraud or willful breach of the trust reposed by the
employer on the kasambahay; (d) Commission of a crime or offense by the kasambahay against
the person of the employer or any immediate member of the employer's family; (e) Violation by
the kasambahay of the terms and conditions of the employment contract and other standards set
forth in the law and the Rules; (f) Any disease prejudicial to the health of the kasambahay, the
employer, or members of the household; and (g) Other causes analogous to the foregoing.
(Section 34, Article V, Id.; Section 3, Rule VII, Id)

JD2A-MCQ

UDDI-E, Noemi

Page 932
How many days an employer will issue the kasambahay a certificate of employment upon the
termination of contract?
A. within five (5) days from request

B. within three (3) days from request

C. within two (2) days from request

D. within ten (10) days from request

Rationale: 

Upon the termination of employment, the employer shall issue the kasambahay, within five (5)
days from request, a certificate of employment (Form BK-3) indicating the name, duration of the
service and work description.(Section 35, Article V, R.A. No. 10361; Section 5, Rule VII, Id)

 
JD2A-MCQ

WAYAS, Chester

page 933
The following acts are declared unlawful under R.A. NO. 10361, BATAS KASAMBAHAY,
except:
1. Employment of children below 15 years of age; 
2. Withholding of wages of kasambahay; 
3. Interference in the disposal of the wages of the kasambahay; 
4. Requiring deposits for loss or damage; 
5. Placing the “kasambahay” under debt bondage; 
6. Charging another household for temporary performed tasks.

a. Only 4 and 5
b. None of the above
c. All of the above
d. Only 6

Basis: R.A. No. 10361 or the Batas Kasambahay

The following acts are declared unlawful: (a) Employment of children below 15 years of age; (b)
Withholding of wages of kasambahay; (c) Interference in the disposal of the wages of the
kasambahay; (d) Requiring deposits for loss or damage; (e) Placing the “kasambahay” under
debt bondage; and (f) Charging another household for temporary performed tasks.
JD2A-MCQ

WAYAS, Chester

Page 934
Statement 1: Commission of any of the unlawful acts enumerated under the Batas Kasambahay
shall be punishable with a fine not less than Php10,000.00 but not more than Php40,000.00.

Statement 2: Any employer who has been sentenced by a court of law of any offense against a
working child under the Batas Kasambahay shall be meted out with a penalty one degree higher
and shall be prohibited from hiring a working child.

a. Both statements are true

b. Only Statement 1 is true
c. Only Statement 2 is true
d. Both statement are false

Basis: Article IX: Penal and Miscellaneous Provision, R.A. No. 10361 or Batas Kasambahay