The University of Manila

College of Business Administration and Accountancy

Labor Law
MME 1AGE-18/AE3

1.) Mr. Q, a night health spa owner, adopted a company policy of promoting his
women employees with increase in salaries for every year that they remain single and
demoting those who get married, because their viability, to his customers are likewise
decreased. The company policy---

a.) is a valid exercise management prerogative typical in the services industry.

b.) is discriminatory against labor in violation of the constitutional mandate

protection to labor.

c.) is an act of sexual harassment in the workplace in violation of RA 7877.

d.) aims to strike a balance between the employer’s right to the just returns in
investments and the employee’s right to the just fruits of their labor.

2.) What is the rule on overtime compensation regarding employees of charitable

institutions whose existence purely depends on donations from benefactors?

a.) Employees of non-profit charitable institutions are no entitled to overtime

compensation.

b.) Non-profit charitable institutions are not required to pay overtime

compensation to their employees provided the employees do not exceed 10 in
number.

c.) Non-profit charitable institutions are required to pay overtime compensation

to employees if the workforce exceeds to 10 employees.

d.) None of the above.

3.) If Viva, a single woman who lives-in with Sixto, a married man, since the time
she started working at EMO Company in January, conceives their child in October, is
she entitled to maternity leave benefits?
 a.) Yes. All women employees are entitled to maternity leave benefits regardless
of status.

b.) No. Viva has not yet satisfied the required number of contributions to avail
maternity leave benefits as provided by law.

c.) No. Viva bears the child out of wedlock which is prohibited under the SSS
Law.

d.) None of the above.

4.) Under the Labor Code, which of the following cannot be validly deducted from
wages?

a.) withholding taxes

b.) premium contributions to the SSS

c.) payment for unpaid stock subscriptions

d.) payment for value meals provided by the employer

5.) Can an authorized sales agent of Philippine Airlines catering flight tickets solely
to overseas Filipino workers apply for a license for recruitment and placement?

a.) No. Selling tickets is a profitable activity which is prohibited under the Code.

b.) No. Authorized sales agent of airlines are not allowed to have a license.

c.) No. Selling airlines tickets is a prohibited activity, a ground for

disqualification.

d.) No. Authorized sales agents operate as travel agencies which are prohibited
from engaging in recruitment activities.

6.) Under the Labor Code, who among the following is liable for the payment of
employees’ wages and other labor standard benefits in the event that the independent
contractor, engaged in legitimate job contracting, defaults in payment?
 a.) the principal is liable to the extent of work performed under the contract.

b.) the principal is solely liable being the indirect employer.

c.) the contractor is solely liable being the direct employer.

d.) the principal is solidarily liable with the contractor.

7.) The issue of employer-employee relationship is a question of fact in the case of---

a.) labor-only contracting

b.) female worker in a massage clinic

c.) casual employee

d.) homeworker

8.) As a general rule, the minimum employable age is---

a.) 14 years old

b.) 15 years old

c.) 16 years old

d.) 18 years old

9.) One of the elements used in determining employer-employee relationship is the

payment of wages. Who among the following is considered an employee?

a.) Aljur, a homeworker is paid on piece-rate basis.

b.) Gerald, an insurance agent paid on purely commission basis.

c.) Mark, a salesman who is paid 3% commission of his gross sales.

d.) Jake, an agent who is paid by result.

10.) Apart from the four-fold test, the following are considered secondary test in
determining the existence of an employer-employee relationship, except:

a.) SSS registration

b.) Withholding Tax

c.) Employment Contract

d.) Company ID

11.) Jessica works as a sales lady in a big department store chain. Her hours worked
include---

a.) the one-hour travel from her house to the department store

b.) the one-hour wait for the department store to open

c.) one-hour lunch period

d.) the fifteen-minute rest period

12.) Jacob is an employee of Big Brother Corp. since June 2010. He is entitled to
service incentive leave of five days with pay---

a.) and five days vacation leave

b.) and five days sick leave

c.) which cannot be converted to cash if unused at the end of the year

d.) None of the above.

13.) Although Jennilyn is very much in love with her husband Dennis, they often
quarreled over household expenses. After one fight which left her with bruises all
over her body, Jennilyn availed of the “battered woman leave” at work, which---
 a.) entitles her to a non-extendible leave of ten (10) days only.

b.) can be converted to cash if left unavailed of at the end of the year.

c.) must be accompanied by a certification from the Punong Barangay that an

action under Republic Act 9262 has been filed and is pending,

d.) she can avail of without prior approval by her employer.

14.) Hotels, restaurants and similar establishments may collect service chargers:

a.) at the rate of 75% which shall be distributed among covered employees;

b.) 25% of which is for management;

c.) distribution of which shall be equal among all employees regardless of

position or status;

d.) and distributed to all covered employees on a weekly basis.

15.) Facilities---

a.) are extra benefits given beyond an employee’s basic wages

b.) require the voluntary acceptance in writing by the employee

c.) include tools of trade

d.) if given, are automatically deducted from the employee’s wages

16.) Which of the following circumstances proves employer-employee relationship:

a.) Mang Tacio, claiming underpayment, presented a solitary petty cash voucher
showing his name as payee thereof;

b.) Princess Principe, claiming that she was illegally dismissed by her employer
Makita Industrial Supplies, presented an ID she had used to gain entry in
Home Depot, where she reports for work;
 c.) Bernie Bernas, in order to prove his employment with PR Company,
presented a certificate of stock showing PR Company’s ownership of stocks
in PBC Agency, invoking thus the doctrine of piercing the veil of corporate
fiction;

d.) Carlos Carpio, a jeepney operator, presented an Agreement between him and
Kuya Kim, which shows that Kuya Kim will purchase the jeepney unit he
was assigned to drive under a boundary-hulog [amortization] scheme, and
thus, not an employee but a vendee.

17.) The rule on Probationary Employment provides that a probationary employee

shall undergo a period of probation, which shall not exceed six (6) months in order to
ascertain the employee’s qualification for regular employment, is NOT true for
employees, because--

a.) the employer may unilaterally extend the probationary period as provided by
company policy;

b.) the reasonable standards under which a probationary employee may qualify
as regular employee must be known to him;

c.) the period of probation for teachers is governed by the Manual of

Regulations for Private Schools and not the Labor Code;

d.) the probationary employee cannot be dismissed within the period of

probation, except for just and authorized cause, or when he failed to meet the
reasonable standards for his work.

18.) No woman, regardless of age, shall be employed or permitted or suffer to work,

with or without compensation:

a.) in any industrial undertaking or branch thereof between midnight and six
o’clock in the morning of the following day

b.) in any non-industrial undertaking or branch thereof, other than agriculture

between 10 o’clock at night and six o’clock in the morning of the following
day

c.) in any commercial undertaking or branch thereof, other than agricultural,

between midnight and six o’clock in the morning of the following day
 d.) in any agricultural undertaking at nighttime unless she is given a rest of at
least eight (8) consecutive hours

19.) Overtime work is voluntary in all instances, except:

a.) when work is needed to preserve the food

b.) when work is needed to be performed on machines, installations or

equipment

c.) when the completion or continuation of work started before the seventh hour
is necessary to prevent serious prejudice to the operations of the employer

d.) when required as in times of national or local emergencies

20.) Time spent during lectures, meeting and training programs is not considered as
working time when---

a.) attendance is during employee’s regular working hours.

b.) attendance is upon the employee’s own volition.

c.) attendance is upon the employer’s instructions.

d.) the employee is on call, and agenda of the lecture, meeting or program are
subject to an employee report the following working day.

21.) The provisions of the Labor Code on hours worked do not apply to managerial
employees. Which of the following is not considered a managerial employee?

a.) Chito, who carries out company orders, plans and policies.

b.) Eric, who hires and fires people.

c.) Jojo, who oversees the engineering section of the company.

d.) Jim, who is the company Foreman.

22.) Chuchay has been working as a househelper of Tina for years. Chuchay may
demand from Tina---

a.) Overtime pay

b.) Holiday pay

c.) Premium pay for holiday and rest days

d.) Separation pay

23.) Employees paid by results are entitled to:

a.) ECOLA

b.) Overtime Pay

c.) Service Incentive Leave Pay

d.) Holiday Pay

24.) The ten percent (10%) attorney’s fees under Article 111 is allowed, except:

a.) in actions for recovery of wages

b.) in actions where the employee was forced to litigate

c.) in actions where the employee was represented by a PAO lawyer

d.) in actions for the award of death benefits

25.) Thirteenth month pay is a statutory benefit not available to:

a.) piece-rate workers

b.) private school teachers who have taught at least one month

c.) employees paid purely by commission

 d.) employees who received guaranteed wages together with their commission

26.) An apprenticeship program is considered valid when:

a.) approved by DOLE

b.) approved by TESDA

c.) undertaken by skilled workers

d.) the period does not go beyond one (1) year

27.) Termination due to disease is not a valid ground for dismissal when---

a.) the employee contracted a disease that is prejudicial to his health and to his
co-employees;

b.) the employee contracted a disease that is certified by the company-

designated physician to be incurable within a period of six (6) months;

c.) the employee acquired a disease that is prohibited by law;

d.) the employee acquired a disease that is certified by a competent public

authority to be incurable for more than six (6) months even with proper
treatment.

28.) Which of the following statement is true:

a.) The employee has the burden of proving the invalidity of his dismissal;

b.) The employee has the burden of proving the fact of his dismissal;

c.) The employee has the burden of proving the invalidity of dismissal;

d.) The employee has the burden of proving the fact of dismissal.

29.) RA 8972 grants a solo parent employee parental leave of not more than 7
working days every year. To avail of such leave---
 a.) the solo parent must have rendered at least six (6) months of employment.

b.) the solo parent must have rendered at least one (1) year of employment.

c.) the solo parent must have rendered at least two (2) years of employment.

d.) the solo parent must have rendered at least five (5) years of employment.

30.) The paternity leave of seven days with pay is not available to a male employee---

a.) whose wife suffered an abortion

b.) whose wife gave birth after three miscarriages

c.) who is cohabiting with his common-law spouse at the time of her delivery

d.) who is employed in the public sector

31.) Which of the following is an application of the Agabon doctrine:

a.) The Labor Arbiter found that Shirley was illegally dismissed, and thus
directed her immediate reinstatement and payment of backwages from the
time of withholding of her wages until the finality of this Decision;

b.) The NLRC, on appeal, reversed the findings of illegal dismissal of the Labor
Arbiter, and directed the complainant-employee to return to the employer all
salaries received upon his reinstatement;

c.) The Court of Appeals, on certiorari, found that the NLRC gravely abused its
discretion in finding validity to Shirley’s dismissal, and thus reinstated the
Labor Arbiter’s Decision;

d.) The Supreme Court, on review, assessed the evidence presented by the
parties on account of diametrical findings by the labor tribunals and the
appellate court, and held that Shirley was validly dismissed, and directed the
employer to indemnify her fr lack of notice in effecting her dismissal.

32.) The following are not considered as “employers” as defined under Article 212(e)
of the Labor Code:
 a.) any person acting directly in the interest of an employer

b.) any person acting indirectly in the interest of an employer

c.) any labor organization or any of its officers or agents, in respect of its staff

d.) the principal with respect to the independent contractor and its employees

33.) The statement: “An order of reinstatement is immediately self-executory, and the
employer has to either re-admit the employee to work, or reinstate him in the payroll”
is---

a.) TRUE at all times.

b.) generally TRUE, except in the case of alien seeking reinstatement, who
needs an employment permit before he can resume employment in the
Philippines.

c.) generally FALSE, unless the employer is undergoing corporate rehabilitation,

in which case, all actions are suspended.

d.) FALSE at all times.

34.) What is the nature of the crime committed against X, Y, and Z if F promised
them job placement to Kuwait?

a.) illegal recruitment committed by a syndicate

b.) economic sabotage

c.) illegal recruitment

d.) None of the above

35.) As a general rule, no child below 15 years of age shall be employed, except
when:

a.) He works directly under the sole responsibility of his parent or guardian.
 b.) He works directly under the sole responsibility of his parent or guardian or
his employment does not in any way interfere with his schooling.

c.) He works directly under the sole responsibility of his parent or guardian and
his employment does not in any way interfere with his schooling.

d.) He works in the entertainment industry directly under the sole responsibility
of his parent or guardian and his employment does not in any way interfere
with his schooling.

36.) The following employees may be paid wages equivalent to 75 percent of the
applicable minimum wage, except:

a.) Learners.

b.) Apprentices.

c.) Minors.

d.) Handicapped workers.

37.) The rule on premium pay for overtime work states that:

a.) For work in excess of eight hours performed on ordinary working days: Plus
30% of the hourly rate

b.) For work in excess of eight hours performed on a scheduled rest day, a
special day and a regular holiday: Plus 25% of the hourly rate of said days.

c.) For work in excess of eight hours performed on ordinary working days: Plus
20% of the hourly rate

d.) For work in excess of eight hours performed on a scheduled rest day, a
special day and a regular holiday: Plus 30% of the hourly rate of said days.

38.) Which of the following benefits is convertible to cash?

a.) Paternity leave.

 b.) Solo parent leave.

c.) Service incentive leave.

d.) All of the above.

39.) Separation pay in lieu of reinstatement is awarded in the following cases,

except---

a.) as financial assistance to an employee validly dismissed for committing

serious misconduct.

b.) where strained relationship exists between the employer and the dismissed
employee.

c.) when the employee contracted a disease and reinstatement will only endanger
the the safety of his co-employees.

d.) when the employer closes its business.

40.) The Labor Code covers the following groups of workers:

a.) the rank-and-file employees of the Philippine National Oil Company

b.) the cashiers of Philippine Coconut Authority

c.) the engineers of the Philippine National Construction Corporation

d.) the students of Polytechnic University of the Philippines

41.) The determination of the existence of employer-employee relationship is

important under all of the following situations, except:

a.) To compel the remittance of SSS contributions

b.) To file a complaint for non-payment of night-shift differential

c.) To deny or grant a petition for certification elections

 d.) To ask for across-the-board wage increases under a new Republic Act
granting the same

42.) Which of the following is not indicative of project employment:

a.) Andrea was assigned to carry out a specific project, the duration and scope of
which are specified at the time of her engagement;

b.) The duration of work to be performed is defined in Celso’s employment

contract;

c.) Carding was assigned to work in a construction company;

d.) The terms and conditions and duration of Felicissimo’s work was made clear
to him at the time of hiring.

43.) Which of the following is not included in hours worked:

a.) meal break of one hour

b.) meal break of less than one hour

c.) meal break of employees on call

d.) meal break taken during working time

44.) The normal forty-eight (48) hour work week does not apply to this employee:

a.) pharmacists

b.) security guards

c.) janitors

d.) clerk-typists

45.) Which of the following is TRUE about payment of backwages:

 a.) An illegally dismissed employee on account of closure of business is entitled
to full backwages, inclusive of allowances and other benefits, computed from
the time of his dismissal up to the finality of the decision.

b.) An illegally dismissed employee on account of cessation of business is

entitled to backwages to be computed from the time his compensation is
withheld from him up to the time of his actual reinstatement.

c.) An illegally dismissed employee on account of closure of business is entitled

to backwages to be computed from the time his compensation is withheld
from him up to the time of employer’s closure of business operations.

d.) An illegally dismissed employee on account of cessation of business is

entitled to full backwages to be computed based on his last salary until the finality of
the decision.

46.) It refers to any person or entity engaged in the recruitment and placement of
workers for a fee which is charged directly or indirectly, from the workers or
employees or both---

a.) Recruitment and Placement

b.) Private fee-charging employment agency

c.) Private recruitment Entity

d.) Public recruitment agency

47.) When will an employee be entitled to wages during the period of preventive
suspension?

a.) A monthly-paid employee is entitled to the full amount of his monthly salary,
regardless of his service of preventive suspension.

b.) An employee shall be entitled to the full amount of his wages during the
period of preventive suspension if found to be without basis.

c.) An employee shall be entitled to the hall of the amount of his wages during
the period of preventive suspension, if serve as a consequence of an
administrative investigation.
 d.) An employee shall be entitled to the full amount of his wages during the
period of preventive suspension if found that he poses no serious threat to life
and property of the employer.

48.) Who among the following is not subject to compulsory member of SSS?

a.) A stay-at-home mother who is engaged in reselling of cosmetics products.

b.) A lawyer working in a law firm.

c.) A househelp whose monthly income does not exceed P4,00.00.

d.) A domestic helper working in the Middle East.

49.) The following are considered self-employed for purposes of coverage in the SSS,
except---

a.) A septuagenarian vendor in Marikina.

b.) A football player for the Puzakals.

c.) A starlet trying to make ends meet.

d.) A farmer in Central Luzon.

50.) Under the SSS Law, employment is any service performed by an employee for
his employer, except---

a.) that performed by Mang Ando, who was hired on a purely casual basis.

b.) that performed by Mariano, a sailor aboard a US aircraft carrier, USS

Missouri.

c.) that performed by Mando, a mason hired by the DPWH for its C-5
construction project.

d.) that performed by Marian, a freelance artist.