Quiz 12 Lab Rev AUDCx 2

Chan Week 9
1) It is a principle guaranteed by the Constitution upholding the validity of an agreement

as recognition of a valid exercise of the freedom of contract.
a) inviolability of contracts
b) relativity of contracts
c) principle of autonomy
d) privity of contracts
BASIS: Rivera v. Espiritu, GR No. 135547, January 23,2002
2) The following are indicative of a company union except:
a) Act of employer in securing authorization cards from employees and by

immediately granting the union exclusive recognition as a bargaining agent and
entering into a contract therewith although it was not the duly authorized
representative of the employees.
b) When several employees were forced by the company officers to join a union.
c) Where there were two existing unions existing in the company and the company
prefers one union over the other. The other union was asked to be dissolved and
its members were required to join the preferable union, refusal of which means
termination.
d) None of the above
BASIS: Kapisanan v. Hamilton, Oceanic Air Products v. CIR, Philippine American Cigar
v. Philippine American Cigar & Cigarette Manufacturing Co.
3) In the case of Davao Free Workers Front v. CIR, the following acts of respondent
employer were indicia that the union was company-dominated, except:
a) Refused to bargain with petitioner union

b) Interfered with and coerced its members to vote for its hand-picked candidate
as president of petitioner union
c) Required members of petitioner union to join the 7-Up Employees Association
BASIS: Davao Free Workers Front v. CIR, G.R. No. L-29356, Oct. 31, 1974, 60 SCRA
408.
4) Employers of an appropriate bargaining unit who are not members of the recognized
collective bargaining agent may be assessed a reasonable fee equivalent to the dues and
other fees paid by members of the recognized collective bargaining agent, if such
_____________ members accept the benefits under the CBA.
a) Non-union
b) Union
c) CBA
BASIS: Article 259 [248] of the Labor Code
5) Which of the following is defined as the failure to treat all persons equally when no
reasonable distinction can be found between those favored and those that not favored?
a) Discrimination
b) Inequality
c) Unequal
d) Unfair Labor Practice
RATIONALE: In the case of Sugue vs. Triumph International (Phils.), Inc. the Court
defined discrimination as the failure to treat all persons equally when no reasonable
distinction can be found between those favored and those not favored.
6) Which of the following is described in the third sentence of paragraph (e) of Article 259
of the labor code which states that employees of an appropriate bargaining unit who are
not members of the recognized collective bargaining agent may be assessed a
reasonable fee equivalent to the dues and other fees paid by members of the recognized
collective bargaining agent, if such non-union members accept the benefits under the
collective bargaining agreement?
a) Member fee
b) Union Security Clause
c) Agency fee
d) Non-union member fee
RATIONALE: The dues and other fees that may be assessed from non-union members
within the bargaining unit who accept and avail of the benefits flowing from the CBA are
called agency fees (See Article 248 [e], Labor Code; Section 4, Rule XXV, Book V, Rules
to Implement the Labor Code, as amended by Department Order No. 40-03, Series of
2003).
7) The following are the prohibited acts in strikes except?
a) Declaring and staging a strike without first having bargained collectively

b) Declaring and staging a strike by complying with the laid down rules and
regulations on a valid strike
c) Declaring and staging a strike based on a non-strikeable or invalid grounds
d) Declaring and stating a strike without complying with the procedures mandatory
requirements
RATIONALE: The Labor Code provides the prohibited acts in strikes:

1. Declaring and staging a strike without first having bargained collectively
2. Declaring and staging a strike based on a non-strikeable or invalid grounds
3. Declaring and stating a strike without complying with the procedures mandatory
requirements
8) Statement I: A mass action or protest may actually be considered a strike.

Statement II: Non-holding of classes in several public schools does not constitute strike
Statement III: Employees in the public service may not engage in strikes or unauthorized
stoppage of work.
Statement IV: The right of government employees to organize is limited to the formation
of unions or associations without including the right to strike.
a) All of the statements are correct

b) Statements I and IV are false
c) Statement II is false
d) Statements III and II are false
RATIONALE: In the case of Bagalisan V CA, it provides what constitutes a strike in

government services such as
a. mass action or protest may actually be considered a strike
b. Employees in the public service may not engage in strikes or unauthorized stoppage
of work
c. The right of government employees to organize are limited to the formation of unions
or associations without including the right to strike.
9) In a case decided by the Supreme Court, it held that this act was not a ULP or a
discrimination in granting of bonuses.
a) a provision in the CBA to grant better bonus to those who are

exceptionally good or efficient
b) a provision in the CBA to grant better bonus to those who are members of the
union only
c) a provision in the CBA to grant better bonus to those without absences
d) a provision in the CBA to grant better bonus to those in the managerial staff
BASIS: Philippine Blooming Mills Employees Organization vs Philippine Blooming Mills

Corporation
10) In a case decided by the Supreme Court, it held that such act was a ULP or a
discrimination in the granting of bonus
a) dividing equally to all employees certain percentage of its net profit

b) giving bonus to its unionized departments
c) giving only to its employees where there was no union
d) maintaining a practice of dividing equally to all its employees.
BASIS: Manila Hotel Co. vs. Pines Hotel Employees Association
11) Without this clause, the existence of the SEBA is always subject to uncertainty as its
members may resign anytime resulting in the decimation of its rank. The SEBA becomes
gradually weakened and increasingly vulnerable to company machinations
a) union security clause

b) closed shop clause
c) union shop clause
d) exclusive bargaining clause
RATIONALE: The purpose of a union security arrangement is, as the term "union
security" signifies, to guarantee the continued existence of the SEBA through enforced
membership for the benefit of the workers. The employer under this clause recognizes
that the membership of employees in the SEBA which negotiated the CBA should be
maintained and continued as a condition for and retention of employment.
12) True or false

I. A union security clause is a violation or restriction of the employee's right to freedom of
association guaranteed the Constitution
II. In the hierarchy of constitutional values, the right to abstain from joining a labor
organization is subordinate to the policy of encouraging unionism as an instrument of
social justice.
a) true, true
b) false, true
c) false, false
d) true, false
RATIONALE: A union security clause is NOT a violation or restriction of the employee's

right to freedom of association guaranteed the Constitution. In People v. Industrial, it was
recognized that labor, being the weaker in economic power and resources than capital,
deserves protection that is actually substantial and material.
13) A _______________ may be defined as a scheme in which, by agreement between

the employer and his employees or their representatives, no person may be employed in
any or certain agreed departments of the enterprise unless he or she is, becomes, and,
for the duration of the agreement, remains a member in good standing of a SEBA entirely
comprised of or of which the employees in interest are a part.
a) Closed-shop arrangement
b) Open-shop arrangement
c) Yellow dog arrangement
d) Blue sky
BASIS: Belmonte Philippines, Inc. vs. Saldivar, Gr No. 158620, October 11, 2006.
14) In the hierarchy of constitutional values, the right to abstain from joining a labor
organization is ________ to the policy of encouraging unionism as an instrument of social
justice.
a) Superior
b) Subordinate
c) Primary
d) Secondary
BASIS: BPI vs. BPI employees Union-Davao Chapter federation of unions in BPI Unibank
Gr. No. 164301, August 10,2010. In the hierarchy of constitutional values, the right to
abstain from joining a labor organization is subordinate to the policy of encouraging
unionism as an instrument of social justice.
15) This form of union security clause is considered the mildest because it does
not require non-members of the SEBA to join the latter. It simply stipulates that
they should maintain their membership in good standing for the whole duration of
the CBA as a condition for their continued employment.
a) Membership Agreement
b) Agency Shop Clauses
c) Open Shop Clauses
d) Union Shop Agreement
BASIS: Alabang Country Club v. NLRC GR No. 170287 February 14, 2008
16) There is ___ when all new regular employees are required to join the SEBA within a
certain period as a condition for their continued employment.
a) Union Shop Agreement

b) Modified Union Shop Agreement
c) Membership Agreement
d) Agency Shop Agreement
BASIS: Picop Resources Inc. (PRI) v. Taneca GR No. 160828 August 9, 2010
17) Which of the following refers to an agreement where there is no requirement for non-
members of the SEBA to become its members upon employment?
a) Union Shop Agreement

b) Modified Union Shop
c) Preferential Hiring Agreement
BASIS: Article 259(c) of the Labor Code
18) Which of the following refers to an agreement wherein the union which negotiated
and concluded the CBA with management is considered and recognized as the SEBA
only for its own members?
a) Exclusive Bargaining Agent Agreement
b) Bargaining for Members Only Agreement
c) Preferential Hiring Agreement
BASIS: Rothenberg on Labor Relations, page 410
19) What Article of the Labor Code expressly exempts old employees who are already
members of union other than the SEBA at the time of the signing of the CBA, from being
included in the coverage of the union security clause?
a) Article 248 (e)

b) Article 249 (e)
c) Article 250 (e)
d) None of the Above
BASIS: The second sentence of Article 248 (e) provides that nothing in the Labor Code
or in any other law shall stop the parties from requiring membership in a recognized
collective bargaining agent as a condition for employment, except those employees
who are already members of another union at the time of the signing of the
collective bargaining agreement.
20) If the union security clause provides a stipulation that the members of the minority
union must become members of the SEBA after the signing of the CBA, it is?
a) Valid
b) Voidable
c) Void
RATIONALE: A contrary to stipulation cannot prevail over clear language of law. Even if
there is a stipulation to the effect that the members of the minority union must become
members of the SEBA after the signing of the CBA, the same cannot bind them and thus
must be declared null and void.
21) It was held in the case of _________that union security clause should apply only to
persons to be hired or to employees who are not members of any labor organization at
the time of the signing of the CBA.
a) Freeman Shirt Manufacturing co. vs. CIR
b) Alabang Country Club Inc. vs. NLRC
c) BPI vs. BPI Employees
d) ICAWO vs. Azucarera De Pilar
BASIS: Freeman Shirt Manufacturing co. vs. CIR, Gr. No. L-16561, January 28, 1961
22) A stipulation in the CBA cannot be given retroactive effect as to cover and bind
employees who are not members of any labor organization at the time of the effectivity of
the CBA.
a) Non-retroactivity of Union Security Clause

b) Retroactivity of Union Security Clause
c) Union Security Clause
d) None of the above.
RATIONALE: As a general Rule, a union security provision such as a closed shop

agreement requiring all employees to join the SEBA is not valid. Hence such a stipulation
in the CBA cannot be given retroactive effect as to cover and bind employees who are
not members of any labor organization at the time of the effectivity of the CBA.
23) As a general rule, a union security provision such as a closed shop agreement
requiring all employees to join the SEBA is not valid. Hence, such a stipulation in the CBA
cannot be given _____ effect as to cover and bind employees who are not members of
any labor organization at the time of the CBA.
a) retroactive
b) any
c) prospective
d) full
BASIS: Sta. Cecilia Sawmills v. CIR
24) In regards to union security clauses, there is the non-retroactivity rule. The exception
to the rule is when there exists a valid _____ requiring compulsory membership in the
SEBA.
a) union security clause

b) CBA provision
c) employment contract
d) IRR provision
BASIS: Juat v. CIR
25) The prohibition in the second sentence of paragraph (e) of ____________expressly

exempts from being included in the coverage of the union security clause, only the old
employees who are already members of union/s other than the SEBA at the time of the
signing of the CBA, but not those who are not yet members of any union.
a) Article 259
b) Article 239
c) Article 295
d) Article 289
RATIONALE: It is Article 259 which expressly exempts from being included in the
coverage of the union security clause, only the old employees who are already members
of union/s other than the SEBA at the time of the signing of the CBA, but not those who
are not yet members of any union.
26) It is now well-settled that violation of a union security clause is considered a just cause
to terminate employment. This rule has, once again, been reiterated in the case of
_________________.
a) Chi Ming Tsoi vs CA

b) Alabang Country Club Inc vs NLRC
c) Republic vs CA
d) Milan vs NLRC
RATIONALE: Termination of employment by virtue of a union security clause embodied

in a CBA strengthens the union and prevents disunity in the bargaining unit within the
duration of the CBA. By preventing member disaffiliation with the threat of expulsion from
the union and the consequent termination of employment, the SEBA gains more numbers
and strengthens its position as against other unions which may want to claim majority
representation (Alabang Country Club Inc vs NLRC).
27) While dismissal may be effected as a consequence of a breach of the union security
clause, the general rule that should prevail is that this clause should be construed
against the existence of the right to dismiss. In other words, if there is doubt as to whether
termination of employment is the penalty for its violation, the doubt should be
resolved the dismissal of the violating employee and in favor of upholding his
right to employment.
a) strictly; against
b) liberally; in favor
c) strictly ; in favor
d) liberally ; against
BASIS: San Carlos Milling Co. v. CIR, Gr. Nos. L-15453 and L- 15723, March 17, 1961,
1 SCRA 734.
28) Violation of the union security clause, to be a valid basis for terminating an
employment, must be stated therein that such is its consequence. A dismissal
founded on this clause which does not explicitly authorize it for its violation constitutes
ULP.
a) expressly
b) impliedly
c) verbally
d) unequivocally
BASIS: San Carlos Milling Co. v. CIR, Gr. Nos. L-15453 and L- 15723, March 17, 1961,
1 SCRA 734.
29) Which of the following is false regarding the construction of union shop stipulations
in the CBA?
a) Union shop stipulations are construed in the same manner as closed shop
stipulations.
b) Construction is strictly against the existence of union shop.
c) The express insertion of union shop stipulations in the CBA is construed
to authorize the dismissal of employees already working before the CBA
d) Harsh and onerous provisions are to be implemented as explicitly stated in the
coverage of their terms.
RATIONALE: Union shop stipulations are strictly construed against the existence of a
union shop. Harsh and onerous provisions should not be extended beyond their explicit
coverage and are not deemed to authorize the dismissal of employees already working
before the agreement was made.
30) Diego is a long-time employee of Pedro Company. Pedro Company recently
concluded a CBA with Juan Union. The CBA included a union shop clause. The clause
required rank-and-file employees to “join Juan Union” and be a “member of good standing
in the union”. Diego did not join Juan Union. Juan Union requested Pedro Company to
dismiss Diego. Pedro Company dismissed Diego. Which is correct regarding Diego’s
dismissal?
a) The dismissal was illegal. The clause required rank-and-file employees to

join a union but did not state that failure to do so is a ground for dismissal.
b) The dismissal was valid. The CBA was validly agreed upon between Pedro
Company and Juan Union. The CBA was published and made known to the
company’s employees. Diego was negligent in failing to comply with the
requirement.
c) The dismissal was illegal. The provisions of the CBA should not be made to
apply to Diego because Diego did not consent to it by virtue of his non-membership
in Juan Union.
d) The dismissal was valid. The union shop clause was a valid provision. Failure
of Pedro Company to implement this would result to unfair labor practice on the
part of Pedro Company.
RATIONALE: Union shop clauses are to be construed strictly. There should be a clear
and unequivocal statement that non-membership of the union and loss of the status of a
member in good standing in the union are causes for dismissal. The penalty of dismissal
was not mentioned in the union shop clause thus it cannot be cause for Diego’s dismissal.
31) The following are the common grounds that are usually invoked by the SEBA to justify
termination of employment due to violation of union security clause, except:
a) Refusal to become members of the SEBA

b) Resignation by its existing members
c) Expulsion on certain grounds
RATIONALE: There are no standard grounds prescribed in the law. They vary from CBA
to CBA. However, the following are basically the three common grounds usually invoked
by the SEBA: (a) refusal to become members of the SEBA; (b) resignation by its existing
members; and (c) expulsion on certain grounds.
32) The SEBA may invoke expulsion to justify termination of employment due to violation
of union security clause if such expulsion is on the following grounds, except:
a) Disloyalty to the SEBA
b) Commission of any act /s inimical to the interest of the SEBA
c) Refusal to pay union dues and other assessments
d) All of the above
e) None of the above
RATIONALE: The SEBA may invoke expulsion to justify termination of employment due
to violation of union security clause if such expulsion is on the following grounds:
1. Disloyalty to the SEBA;

2. Commission of any act /s inimical to the interest of the SEBA;
3. Refusal to pay union dues and other assessments;
4. Commission or conviction of a felony, offense or crime against any union officer or
member in relation to activities for and in behalf of the SEBA;
5. Organizing and/or joining another labor organization claiming jurisdiction similar to
that of the SEBA or affiliating with a labor federation without its approval;
6. Involvement in any violation of the union security agreement or the SEBA’s
Constitution and By-Laws; or
7. Participation in a ULP or any derogatory act against the SEBA or any of its officers
and members.
33) The following are the requisites that the employer should determine, prove, and
comply with prior to terminating the employment of an employee by virtue of the
enforcement of the union security clause, except:
a) The union security clause is applicable

b) The existence and validity of the security clause was not questioned by
both parties
c) The SEBA is requesting for the enforcement of the union security clause
d) There is sufficient evidence to support the SEBA's decision to expel the
employee from membership
BASIS: Alabang Country Club v. NLRC enunciated the following requisites that the
employer should determine, prove, and comply with prior to terminating the employment
of an employee by virtue of the enforcement of the union security clause: (1) The union
security clause is applicable; (2) The SEBA is requesting for the enforcement of such
clause; and (3) There is sufficient evidence to support the SEBA's decision to expel the
employee from membership./GR No. 170287, February 14, 2008.
34) Statement 1: The case of Alabang Country Club v. NLRC provided the requisites for
terminating the employment of an employee by virtue of the enforcement of the union
security clause.
Statement 2: Once the requisites enunciated in Alabang Country Club are present, the
ensuing termination is considered a just cause.
a) Statement 1 is true
b) Statement 2 is true
c) Both statements are true
d) Both statements are false
BASIS: Alabang Country Club v. NLRC, GR No. 170287, February 14, 2008. The
Supreme Court also noted that the same requisites are present in the case of Inguillo v.
First Philippine Scales, Inc., GR No. 165407, June 5, 2009.
35) The signing of the authorization to file a certification election was merely __________
to the filing of the petition for certification election, or an exercise of employee’s right to
self-organization.
a) preliminary
b) introductory
c) preparatory
d) proper
BASIS: Picop Resources, Inc vs Taneca (G.R. No. 160828, August 9, 2010).
36) The mere _______________ in support of the Petition for Certification election before
the “freedom period,” is not sufficient ground to terminate the employment of employees
inasmuch as the petition itself was actually filed during the freedom period.
a) approval of the DOLE Secretary

b) reply from the employer
c) signing of the authorization
d) authorization by the NLRC
BASIS: Picop Resources, Inc vs Taneca (G.R. No. 160828, August 9, 2010).
37) In this case, respondent’s expulsion from ALU was premised on the ground of
disloyalty to the union which, under Section 4[3], Article II of the CBA, also stands as a
ground for her dismissal from petitioner.
a) Del Monte Philippines, Inc. v Saldivar and Timbal
b) General Milling Corp., v Casio
c) Manila Hotel Pavillion Chapter v NLRC
d) Liberty Cotton Mills Workers Union v Liberty Cotton Mills
BASIS: Del Monte Philippines, Inc. v Saldivar and Timbal, GR No. 158620, October 11,
2006 - Section 5, Article II of the CBA enjoins petitioner to dismiss from employment those
employees expelled from ALU for disloyalty, albeit with the qualification that it should be
“in accordance with law.”
38) What is emphasized in the case of Picop Resources, Inc. v Dequilla that the records
are bereft of proof of any contemporaneous acts of registration or withdrawal of union
membership or non-payment of union dues on the part of the private respondents. Neither
is there proof that private respondents joined FFW.
a) Picop ruling
b) Dequilla ruling
c) Manila Hotel Ruling
d) Malayang Samaha Ruling
BASIS: The ruling in the case of Picop Resources, Inc v Tañeca, GR No. 160828, August
9, 2010 was reiterated in Picop Resources, Inc. v Dequilla. The fact is,
private respondents remaind in good standing with their union, NAMAPRI-SPFL, a point
which was already settled in said earlier 2010 case of Picop
39) Which of the following statement/s is/are true?
Statement I: In the matter of determining whether a valid cause exists for termination,
substantive due process must be observed.
Statement II: The purpose of observing substantive due process is to ensure that the
security of tenure of the employees is not infringed.
a) Both are true.

b) Both are false.
c) Only Statement I is true.
d) Only Statement II is true.
BASIS: Del Monte Philippines v. Saldivar and Timbal (GR No. 158620, 1 October 2006).
40) Which of the following statement/s is/are true?
Statement I: The right of an employee to be informed of the charges against him and to
a reasonable opportunity to present his side in a controversy with either the company or
his own union is not wiped away by a union security clause or a union shop clause in a
CBA.
Statement II: The company is said to have acted in bad faith in dismissing a worker if it
does not afford him the benefit of a hearing.
Statement III: An employee is entitled to be protected not only from a company which
disregards his rights but also from his own union, the leadership of which could yield to
the temptation of swift and arbitrary expulsion from membership and dismissal from his
job.
a) All statements are true.

b) All statements are false.
d) Only Statement I is false.
BASIS: Statements I, II and III are pronouncements of the Supreme Court in Cariño v.
NLRC (GR No. 91086, 8 May 1990)
41) An employer can be adjudged guilty of _____ for having dismissed its employees in
line with a closed shop provision if they were not given proper hearing.
a) Misconduct
b) Gross Negligence
c) Disloyalty
d) ULP
BASIS: Tropical Hut Employees' Union-CGW v. Tropical Hut Food Market Inc., GR No.
L-43495-99, January 20,1990
42) An expelled union member cannot be dismissed by employer without the union's
_____ to that effect.
a) Approval
b) Signature
c) Consent
d) Recommendation
BASIS: Chapter Five-Labor Relations, V-2-B Due Process in Termination Due to
Violation of Union Security Clause.
43) The phrase “independent and separate bearing” in connection with the due process
required in termination grounded on violation of the union security clause means that:
a) the employer is not duty-bound to immediately implement the

recommendation to terminate made by the SEBA
b) the employer is duty-bound to immediately implement the recommendation to
terminate made by the SEBA
c) the employer may or may not implement the recommendation to terminate
made by the SEBA
d) the employer is duty-bound to immediately implement the order to terminate
made by the SEBA
RATIONALE: The use of the phrase “independent and separate bearing” in connection
with the due process required in termination grounded on violation of the union security
clause means that the employer is not duty-bound to immediately implement the
recommendation to terminate made by the SEBA; it has to conduct its own hearing
independent and separate from any heating as may have earlier been conducted by the
SEBA.
44) The law requires the employer to furnish the employee sought to be dismissed with
two written notices before termination of employment can be legally effected:
I. a written notice apprising the employee of the particular acts or omissions for which his
dismissal is sought in order to afford him an opportunity to be heard and to defend himself
with the assistance of counsel, if he desires.
II. a subsequent notice informing the employee of the employer's decision to dismiss him.
a) Both I and II
b) Neither I or II
c) Only I
d) Only II
RATIONALE: The twin requirements of notice and hearing constitute the essential
elements of procedural due process. The law requires the employer to furnish the
employee sought to be dismissed with two written notices before termination of
employment can be legally effected: (1) a written notice apprising the employee of the
particular acts or omissions for which his dismissal is sought in order to afford him an
opportunity to be heard and to defend himself with the assistance of counsel, if he desires,
and (2) a subsequent notice informing the employee of the employer's decision to dismiss
him. ‘This procedure is mandatory and its absence taints the dismissal with legality
45) The due process required to be observed by the union prior to its member's
compulsion concerns the ____________________________________; while the due
process that must be complied with by the employer pertains to the
____________________________________.
a) termination of his membership with the employer; termination of his employment

with the union
b) termination of his employment with the union; termination of his membership
with the employer
c) termination of his employment with the employer; termination of his membership
with the union
d) termination of his membership with the union; termination of his
employment with the employer
BASIS: Carino vs. NLRC, G.R. No. 91086, May 8, 1990, 185 SCRA 177
46) In the case of _________________________, the Court held that where the members
were expelled from the SEBA and were immediately dismissed from the company but
notified that the dismissal was being requested by the SEBA and given a chance that
their explanations be heard, then the members were dismissed only after the employer
reviewed and considered the documents submitted by the SEBA including the
explanations written by the respondents, it is clear that the employees were given
reasonable opportunity to be heard and defend themselves.
a) Malayang Samahan ng mga Manggagawa sa M. Greenfield vs. Ramos

b) Alabang Country Club, Inc. vs. NLRC
c) Easycall Communications Phils. vs. King
d) Carino vs. NLRC
BASIS: Alabang Country Club, Inc. vs. NLRC, G.R. No. 170287, Feb. 14, 2008
47) Should an employer company, by a formal advice written by its union, immediately
dismiss its employee that was expelled from the union due to a violation of a union
security clause?
a) Yes, due process was already accorded to the employee through the
proceedings within the union.
b) Yes, the written advice of the union is controlling on the matter.
c) No, the employee should be given a chance to explain his side of the
controversy with the union.
d) No, the employer is mandated to put the ousted employee on probation first.
RATIONALE: Cariño v. NLRC, G.R. No. 91086, May 8, 1990; Due process within the
union is different from the due process for termination of employment. Notwithstanding
the CBA security clause, the company should have reasonably satisfied itself by its own
inquiry that the union had not acted arbitrarily and capriciously.
48) In Rance v. NLRC, the act of seeking help from another federation by the employees
dismissed for violation of the union security clause at the time they were being temporarily
laid off from work constitute __________.
a) disloyalty
b) treachery
c) self-preservation
d) an outstanding move
RATIONALE: The Supreme Court declared that such is an act of self-preservation of

workers who, driven to desperation, found shelter in the other federation which took the
cudgels for them against the union and company representatives who conducted a farce
of a proceedings.
49) The case of ___________________ illustrates the situation where

petitioner dismissed respondents on the basis of recommendation of its officers who are
also respondents in the same case.
a) General Milling Corporation vs Casio

b) Chi Ming Choi vs CA
c) Cebu Portland Cement Company vs Cement Workers Union, Local 7-ALU and
Court of Industrial Relations
d) National Construction Corporation vs National Labor Relations Commission
BASIS: GR No. 149552, March 10, 2010.
50) In the case of General Milling Corporation v. Casio, the Supreme Court debunked
GMC's arguments and found that Casio et. al. were illegally dismissed because:
Statement I: GMC failed to make a determination of the sufficiency of evidence to support
the decision of the union to expel Casio et. al.
Statement II: GMC failed to accord the expelled union members procedural process i.e.,
notice and hearing prior to the termination of their employment.
a) Both statements are true.

b) Both statements are false.
d) Only Statement II is true.
BASIS: General Milling Corporation vs Casio, Gr. No. 149552, March 10, 2010.
51) In case the dismissal based on violation of the union security clause is declared illegal,
can the employer and the SEBA raise good faith as a defense in order for them to be free
from liability for reinstatement, back wages and damages?
a) Yes
b) No
c) Yes, under certain circumstances.
d) No, but with exceptions.
RATIONALE: Good faith will not exonerate the employer and the SEBA from liability for
reinstatement, back wages and damages in case the dismissal based on violation of the
union security clause is declared illegal.
52) An employee who is _______________________ from work shall

____________________ to reinstatement without loss of seniority rights and other
privileges and to his full back wages, inclusive of allowances, and to his other benefits.
a) Unjustly dismissed; be entitled

b) Legally dismissed; be entitled
c) Unjustly dismissed; not be entitled
d) Constructively dismissed; not be entitled
53) What is the nature of the liability of the employer and the union for reinstatement,
back wages, damages and other monetary claims in cases of illegal dismissal arising from
purported violation of the union security clause?
a) solidary
b) joint and several
c) solidary or joint and several
d) none of the choices
BASIS: Rizal Labor Union vs. Rizal Cement Co.
54) I. Where the reinstatement is adjudged, the award of back wages and other benefits
continues beyond the date the Labor Arbiter's decision ordering the reinstatement and
extends up to the time said order of reinstatement is actually carried out.
II.RA 6715 effectively mitigated the previous jurisprudence which had limited the extent
to which illegally dismissed could claim for back wages.
a) TRUE, TRUE
b) FALSE, TRUE
c) TRUE, FALSE
b) FALSE, FALSE
BASIS: Ferrer vs NLRC, G.R. No. 100898
55) True or False
I. Under paragraph (f) of Article 259 [248] of the Labor Code, it is an unfair labor practice
for an employer to dismiss, discharge or otherwise prejudice or discriminate against an
employee for having given or being about to give testimony under the Labor Code.
II. Jurisprudence is entrenched that Article 259 (f) [248(f)] s the only kind of ULP that need
not to or connected with exercise by the employees of their right to self-organization and
collective bargaining or observance of a CBA.
a) Only statement I is true

b) Only statement II is true
BASIS: Section 13[d], Rule XII, Book II, Rules to Implement the Labor Code; Pepsi Cola
Philippines Inc. vs. Molon (GR No. 175002), Feb 18,2013; Bisig Manggagawa sa Tryco
vs. NLRC, (GR. No.151309), October. 15,2008.
56) As far as backwages and damages are concerned, since they are both monetary in
character, the employer and the union may be held __________ liable for payment
thereof.
a) Solidarily
b) Jointly
c) Solidary or jointly
d) Solidary and jointly
BASIS: Section 13[d], Rule XII, Book II, Rules to Implement the Labor Code.
57) In ________, it was declared that ULP was committed by the employer when it
dismissed the worker who had testified in the hearing of a certification election case
despite its prior request for him not to testify in the said proceeding accompanied with a
promise of being reinstated if he followed the request.
a) Itogon-Suyoc
b) Philippine American Cigar
c) General Mining Corp
d) Kiok Loy Vs NLRC
BASIS: Itogon-Suyoc Mines, Inc Vs. Baldo
58) An example of a ULP involving the filing of a complaint Is the case of __________. In
this case, the person dismissed by the respondent company was not the employee who
filed the case for ULP but his brother.
a) Itogon-Suyoc
b) Philippine American Cigar
c) General Mining Corp
d) Kiok Loy Vs NLRC
BASIS: Philippine American Cigar and Cigarette Factory Workers Independent Union Vs.
Philippine American Cigar and Cigarette Manufacturing Co.,
59) The following are the three (3) CBA- related UPLs under Article 259 {248}, except:
a) To violate the duty to bargain collectively as prescribed in the Labor Code.

b) To bargain collectively.
c) To pay negotiation or attorney’s fees to the union or its officers or agents as part
of the settlement of any issue in collective bargaining or any other dispute.
d) To violate a CBA.
BASIS: Paragraph (g), (h), and (i) of Article 259 [248] of the Labor Code.
60) The duty to bargain collectively devolves upon both the _____ and the ______.
a. Employer, SEBA
b. SEBA, Employee
c. Employer, Employee
d. None of the above
Basis: Articles 259 (g) [248 (g)] and 260 (c)], respectively of the Labor Code.
61) It is the period where either party can serve a written notice to terminate or modify the
agreement at least sixty (60) days prior to its expiration date. It shall be the duty of both
parties to keep the status quo and to continue in full force and effect the terms and
conditions of the existing agreement during the 60-day period and/or until a new
agreement is reached by the parties.
a) Liberalization period within which either party can validly terminate the CBA.
b) Freedom period within which neither party cannot validly terminate the CBA.
c) Freedom period within which either party can validly terminate the CBA.
d) Liberalization period within which either party cannot validly terminate the CBA.
BASIS: Duty to bargain collectively when there exists a collective bargaining

agreement. (Art. 264 (253), Book V, Labor Relations)
62) It constitutes Unfair Labor Practice if the employer refuses to submit an answer or
reply to the written bargaining proposals of the SEBA, while Unfair Labor Practice is not
committed when:
a) The insufficiency of the employer to submit its proposals to the demands of the
CBA.
b) The failure of the employer to submit its counter-proposals to the
demands of the SEBA.
c) The inadequacy of the employer to submit its proposals to the demands of the
CBA.
d) The failure of the employer to submit its counter-proposals to the demands of
the CBA.
BASIS: Philippine Marine Radio Officers Association v. CIR, G.R. Nos. L-10095 and L-
10115, Oct. 31, 1957, 102 Phil. 373
63) Absent any stipulation to the contrary, this is the maximum period which the employee
shall be allowed to work as probationary.
a) 5 months
b) 4 months
c) 6 months
d) 3 months
BASIS: Article 296 [281]. Probationary Employment. Probationary employment shall

not exceed six (6) months from the date the employee started working, unless it is
covered by an apprenticeship agreement stipulating a longer period. xxx
64) What is the effect if a probationary employee worked for more than six (6) months?
a) The salary increases.

b) The employee will become manager.
c) The employee shall be considered a regular employee.
d) The employee is still on probation.
BASIS: Article 296 [281]. Probationary Employment. Probationary employment shall not
exceed six (6) months from the date the employee started working, unless it is covered
by an apprenticeship agreement stipulating a longer period... An employee who is allowed
to work after a probationary period shall be considered a regular employee.”
65) Which of the following statement is false?
a) In cases where the disclosure of some of the information would prejudice the
employer’s business, its communication may be made conditioned upon a
commitment of the union that it would be regarded as confidential to the extent
required.
b) The employer, upon receipt of the written request for copies of the financial
statements, has thirty (30) calendar days from receipt thereof within which to
furnish the union therewith.
c) The refusal of the employer to furnish the requested information is ULP if
the SEBA failed to put its request in writing
d) None of the choices
RATIONALE: The refusal of the employer to furnish the requested information is

not ULP if the SEBA failed to put its request in writing as required in Article 251(c) [242(c)]
4 of the Labor Code.
Standard Chartered Bank Employees Union [NUBE] v. Confesor, GR. No. 114974, June
16,2004.
66) Statement I: It is considered a failure and refusal to bargain in good faith if an

employer, without first negotiating with the union, unilaterally makes changes in wages,
hours of work and other terms and conditions of work that are the subject of the on-going
CBA negotiation.
Statement II: Once the employer has given the SEBA the opportunity to negotiate over a
set of proposals and there has been a deadlock, in which case, the employer has the
liberty to unilaterally implement its proposals.
a) Only Statement I is correct

b) Only Statement II is correct
c) Both Statement is incorrect
d) Both Statements are correct
RATIONALE: It is considered a failure and refusal to bargain in good faith if an employer,

without first negotiating with the union, unilaterally makes changes in wages, hours of
work and other terms and conditions of work that are the subject of the on-going CBA
negotiation.
But the situation is different once the employer has given the SEBA the opportunity to
negotiate over a set of proposals and there has been a deadlock, in which case, the
employer has the liberty to unilaterally implement its proposals.
The law certainly does not intend to impose an embargo upon the employer from
introducing improvements in its employees’ benefits until the CBA is concluded with the
SEBA.
67) In the case of __ , the act of the bank's Human Resource Manager in suggesting the
exclusion of the federation president from the negotiating panel was not considered ULP.
a) Standard Chartered Bank
b) Metro Bank
c) China Banking Corporation
d) Bank of the Philippine Islands
BASIS: Standard Chartered Bank Employees Union v. Confesor, G.R. No. 114974, June
16, 2004.
68) Which of the following statements is correct?
a) Employer's act of negotiating with union members individually is ULP

b) Employer's act of bargaining with union members collectively is ULP
c) Employer's act of talking with union members severally is ULP
d) Employer's act of meeting with union members discreetly is ULP
Rationale: To negotiate or attempt to negotiate with individual workers rather than with
the SEBA is ULP.
69) It is _________ for an employer operating under a CBA to negotiate or to attempt to

negotiate with his employees individually in connection with changes therein.
a) Unfair Labor Practice

b) Valid
c) Yellow Dog Contract
d) Invalid
BASIS: Melo Photo Supply Corporation v. NLRB, 321 US 332
I. Unions can bargain in behalf of their members only

II. Unions cannot bargain in behalf of their members only.
a) I only
b) II only
c) I or II
d) I and II
RATIONALE: Philippine Diamond Hotel and Resort Inc v. Manila Diamond Hotel
Employees Union, G.R. No. 158075, June 30, 2006 provides that unions cannot bargain
in behalf of its members only.
71) This means making exaggerated or unreasonable proposals.
a) Surface bargaining
b) Blue-sky bargaining
c) Boulwarism
d) Blackleg
BASIS: Chan, Bar Reviewer on Labor Law, 4th Revised Edition 2019, p. 536
72) This is defined as "going through the motions of negotiating" without any legal intent
to reach an agreement.
a) Surface bargaining
b) Blue-sky bargaining
c) Boulwarism
d) Blackleg
73) Why does the "take it or leave it" offer or counter-offer not constitute proper collective
bargaining?
a) Because there is no labor negotiation in this situation, thus it is

considered as ULP.
b) It is for the reason that the employees were not given the chance to defend
themselves.
c) None of the choices.
d) Both a and b.
RATIONALE: The "take it or leave it" offer or counter-offer does not constitute proper
collective bargaining not only within the contemplation of United States laws but also
under Philippine law. It is considered ULP as essentially, no labor negotiation has taken
place.
74) In the case of St. John Colleges, Inc. vs. St. John Academy Faculty and Employees
Union, the Supreme Court found that the _____ of and the _____ for, the closure show
that it was done in bad faith for the purpose of circumventing the union's right to Collective
Bargaining and its members' right to security of tenure.
a) timing, reasons
b) circumstances, causes
c) conflagration, results
d) serendipity, clandestine
RATIONALE: In the case of St. John Colleges, Inc. vs. St. John Academy Faculty and
Employees Union, the SC found that the TIMING OF, and the REASONS FOR, the
closure of the high school department and its reopening after only one year from the time
it was closed down, show that the closure was done in bad faith for the purpose of
circumventing the union's right to collective bargaining and its members' right to security
of tenure.
75) Payment of Negotiation fees or Attorney's fees shall be collected from ______.
a) Union funds
b) employee
c) employer
d) all of the choices
BASIS: Article 228(b)[222(b)] requires that attorney's fees, negotiation fees or similar
charges should be paid from the union funds. These fees cannot be collected from the
employees individually.
Article 259(h)[248(h)] the act of the employer in paying negotiation fees or attorney's fees
to the SEBA or its officers or agents as part of settlement of any issue in collective
bargaining or any other dispute is considered as Unfair Labor Practice.
76) Sudden termination of Union members by the employer is considered ULP if it was
done to interfere with, restrain or coerce its
employees in the exercise of their right to self-organization. The company is liable for the
payment of ______ damages to the illegally dismissed union members.
a) moral and exemplary

b) exemplary
c) moral
d) actual
BASIS: Purefoods Corp v. Nagkakaisang Samahang Manggagawa ng Purefood Rank-
and-File, GR No. 150896
77) Only ____ of a CBA is considered ULP
a) simple violation
b) gross violation
c) violation
d) none of the above
RATIONALE: Only gross violation of a CBA, as defined in Article 274 is considered ULP.
If not gross in nature, the violation shall be treated as a grievable issue to be properly
adjudicated under the Grievance Machinery and if unresolved, through the process of
voluntary arbitration.
78) The following are treated as ULP, except:
a) Ordinary violations of a CBA which involves non-economic provisions

b) Violations of its non-economic provisions, even if gross in nature
c) Violations of its economic provisions which are not gross in character
RATIONALE: The given choices are no longer treated as ULP.
79) Which of the following is NOT an Unfair Labor Practice (ULP) which may be
committed by labor organizations?
a) Refusing to bargain collectively with the employer in good faith.

b) Violating a collective bargaining agreement.
c) Restraining or coercing the employees in the exercise of their right to self-
organization.
d) Causing the employee to discriminate against the employer.
BASIS: Article 260[249] of the Labor Code.

Article 260 [249]. Unfair labor practices of labor organizations. It shall be unfair labor
practice for a labor organization, its officers, agents, or representatives:
1. To restrain or coerce employees in the exercise of their right to self-organization.

However, a labor organization shall have the right to prescribe its own rules with respect
to the acquisition or retention of membership;
2. To cause or attempt to cause an employer to discriminate against an employee,
including discrimination against an employee with respect to whom membership in such
organization has been denied or to terminate an employee on any ground other than the
usual terms and conditions under which membership or continuation of membership is
made available to other members;
3. To violate the duty, or refuse to bargain collectively with the employer, provided it is the
representative of the employees;
4. To cause or attempt to cause an employer to pay or deliver or agree to pay or deliver
any money or other things of value, in the nature of an exaction, for services which are
not performed or not to be performed, including the demand for fee for union negotiations;
5. To ask for or accept negotiation or attorney’s fees from employers as part of the
settlement of any issue in collective bargaining or any other dispute; or
6. To violate a collective bargaining agreement.
80) Statement 1: Causing an employer to pay any money or other things of value, in the
nature of exaction, for services which are not performed is an unfair labor practice.
Statement 2: Accepting negotiation or attorney’s fees from employers as part of the
settlement of any issue in collective bargaining is an unfair labor practice.

c) Only Statement 1 is false.
d) Only Statement 2 is false.
BASIS: Article 260[249] of the Labor Code.
81) Under paragraph (a) of Article 260, it is unfair labor practice for a/an ___________,
its officers, agents or representatives to _____________ employees in the exercise of
their right to self-organization.
a) Employer; interfere
b) Labor organization; restrain or coerce
c) Employer; prevent
d) Labor organization; urge
RATIONALE: Article 260 (a) of the Labor Code provides: “(a) To restrain or coerce
employees in the exercise of their right to self-organization. However, a labor organization
shall have the right to prescribe its own rules with respect to the acquisition or retention
of membership.” The labor organization is given the unrestricted right to interfere with the
exercise by the employees of their right to self-organization. Such interference is not
unlawful since without it no labor organization can be formed as the act of recruiting and
convincing the employees to join it is definitely an act of interference.
82) In paragraph (a) of Article 259 it is unfair labor practice for a/an ___________ to
_____________ employees in the exercise of their right to self-organization.
a) Employer; interfere with, restrain or coerce

b) Labor organization; restrain or coerce
c) Employer; prevent
d) Labor organization; urge
RATIONALE: Article 259 (a) it is unfair labor practice for an employer to interfere with,
restrain or coerce employees in the exercise of their right to self-organization.
83) In terminating the employment of an employee by enforcing the union security clause,
the employer needs only to determine and prove that:
a) the union security clause is applicable;

b) the union is requesting for the enforcement of the union security provision in the
CBA; and
c) there is sufficient evidence to support the union's decision to expel the employee
from the union.
d) All the above
RATIONALE: The case of Alabang Country Club, Inc v. NLRC has enunciated that in
terminating the employment of an employee by enforcing the union security clause, the
employer needs only to determine and prove that: (1) the union security clause is
applicable; (2) the union is requesting for the enforcement of the union security provision
in the CBA; and (3) there is sufficient evidence to support the union's decision to expel
the employee from the union. These requisites constitute just cause for terminating an
employee based on the CBA's union security provision.
84) Expulsion from the union would not ipso facto nor ipso jure lead to expulsion from the
job. For there should foremost be compliance with the pre-requisites:
Statement 1: It must be clearly shown that the act committed by the employee against the
union also constitutes a violation of such clause.
Statement 2: That under such a clause, the union is granted the power to recommend to
the employer the errant employee’s termination of employment, and the employer has
agreed to effect it after compliance with due process.
a) Both Statement 1 & Statement 2 are correct
b) Only Statement 1 is correct
c) Only Statement 2 is correct
d) Both Statement 1 & Statement 2 are not correct
RATIONALE: Expulsion from the union would not ipso facto nor ipso jure lead to
expulsion from the job. For there should foremost be compliance with the pre-requisites:
First, it must be clearly shown that the act committed by the employee against the union
also constitutes a violation of such clause; and second, that under such clause, the union
is granted the power to recommend to the employer the errant employee’s termination of
employment and the employer has agreed to effect it after compliance with a due process
per the Alabang Country Club doctrine.
85) Rights of labor organizations as embodied in the Constitution and By-laws of the labor
organization:
a) The right of the labor organization to prescribe its own rules with respect to the
acquisition or retention of membership.
b) The labor organization to prescribe rules with respect to the loss of membership
therein through various modes allowed by law, such as resignation, expulsion, or
impeachment.
c) None of the above
d) Both a and b
BASIS: Alabang Country Club v. NLRC, GR. 170287, RA 442, Article 249- ULP
86) TRUE/FALSE
I. The internal rules prescribed in the union’s Constitution and By-laws should be strictly
observed in all matters involving union affairs.
II. Non- compliance of internal rules may amount to unfair labor practice.
a) True, False
b) True, True
c) False, True
d) False, False
BASIS: M.D Transit v. De Guzman G.R L-18810

87) The failure of ordinary union members to observe internal rules would justify their
________________.
a) Termination
b) Expulsion
c) Dismissal
BASIS: As emphasized in the case of Baptista v. Villanueva, G.R. No. 194709, July 31,
2013.
88) In the case of __________________, petitioners’ expulsion from the union was not a
deliberate attempt to curtail or restrict their right to organize, but was triggered by the
commission of an act, expressly sanctioned by the union’s constitution and by-laws.
a) Davao Free Workers Front v. CIR, G.R. No. L-29356, Oct. 31, 1974, 60 SCRA
408
b) Lakas ng Manggagawang Makabayan vs. Marcelo Enterprises, 1982
c) Baptista v. Villanueva, G.R. No. 194709, July 31, 2013
89) Which of the following is a kind of discrimination?
a) The act of the union to cause or attempt to cause an employer to discriminate

against an employee, in general, if he or she is a member of the union.
b) The act of the union to cause or attempt to cause an employer to
discriminate against an employee, in general, irrespective of whether he or
she is a member or non-member of the union.
c) The act of the union to cause or attempt to cause an employee to discriminate
against an employer, in general if he or she is a member of the union.
d) The act of the union to cause or attempt to cause an employee to discriminate
against an employer, in general, irrespective of whether he or she is a member or
non-member of the union.
RATIONALE: The act of the union to cause or attempt to cause an employer to

discriminate against an employee, in general, irrespective of whether he or she is a
member or non-member of the union (See Article 260 of the Labor Code).
90) Which of the following is a kind of discrimination?

a) The discriminatory act of the union against an employee whose membership
therein has been terminated based on the ground of usual terms and conditions
under which membership or continuation of membership is made available to other
members.
b) The discriminatory act of the employer against an employee whose membership
therein has been terminated based on any ground other than the usual terms and
conditions under which membership or continuation of membership is made
available to other members.
c) The discriminatory act of the employer against an employee whose membership
therein has been terminated based on the ground of usual terms and conditions
members.
d) The discriminatory act of the union against an employee whose
membership therein has been terminated based on any ground other than
the usual terms and conditions under which membership or continuation of
membership is made available to other members.
BASIS: Article 260 of the Labor Code states that it shall be unfair labor practice for a
labor organization, its officers, agents or representatives to cause or attempt to cause an
employer to discriminate against an employee, including discrimination against
an employee with respect to whom membership in such organization has been denied
or to terminate an employee on any ground other than the usual terms and conditions
members.
As emphasized in the case of Baptista v. Villanueva, G.R. No. 194709, July 31, 2013.
91) Statement I: Employers may or may not form a work pool.

Statement II: Work pool is a group of workers from which an employer draws the workers
and assign them from various projects.
Statement III: Non-project employees for an indefinite period are not considered work
pool
Statement IV: Project employees are considered work pool.

c) Statement III is false
d) Statements I and II are false
RATIONALE: The Labor Code defines work pool as a group of workers from which an
employer draws the workers and assign them from various projects which consist of
project employees and non-project employees
92) Statement I: The services of project employees are coterminous with the project or
any phase thereof.
Statement II: The services of project employees may be terminated upon the end of
completion of the project or phase thereof for which they were hired.
Statement III: Regular employees do not enjoy security of tenure
Statement IV: Regular employees are legally entitled to remain in the service of their
employer and to hold on their work until services are terminated.

c) Statement III is false
RATIONALE: The case of Magalas v NLRC provides the distinctions between projects
employees and regular employees wherein services of project employees are
coterminous with the project or any phase thereof and may be terminated upon the end
of completion of the project or phase thereof for which they were hired. Whereas in regular
employees they are legally entitled to remain in the service of their employer and to hold
on their work until services are terminated.
93) This is an exception to the union security provision of a CBA wherein it permits it to
cause an employer to validly discharge employees who fail to join or maintain
membership in good standing therein as a condition for continued employment. So the
discharge of this employee is considered ULP.
a) if the employee is a religious objector

b) if the employee has justifiable cause not to maintain membership
c) if the employee has manifested his distrust to the union
d) if the employee was not a signatory to the provision
BASIS: Lakas ng Manggagawang Makabayan vs. Atiera
94) The following acts of a union in the discharge of an employee are considered ULP,
except?
a) failure of an employee to pay union fee

b) the employee disagreed with union policy
c) under a union-security agreement where the union did not afford the employee
due process prior to his expulsion and before securing his discharge
d) all of the above
e) none of the above
RATIONALE: these grounds can never be a valid cause for the discharge of an employee
even if such grounds are provided in the Union Security clause in the CBA.
95) The requisites before a union may be held liable for ULP are as follows except:
I. The union is a duly certified SEBA

II. It commits any of the following:
1.it violates the duty to bargain collectively; or
2. it refuses to bargain collectively with the employer
a) all of the above

b) none of the above
c) statement I only
d) statement II only
BASIS: Article 260 (249) par.C of the Labor Code
96) True or false.
I. Employer is not in any way obligated to collectively bargain with a non-SEBA.

II. A non-SEBA cannot commit ULP under paragraph (c) of article 260 (249)
a) false, false
b) true, false
c) false, true
d) true, true
RATIONALE: I. The employer has every right to fend off any effort on the part of a union
to negotiate a CBA before it is certified as SEBA through appropriate certification election
proceedings.
II. A non-SEBA has nonduty to collectively bargain with the employer, only a SEBA has
that duty.
97) This is the featherbedding provision in the Labor Code.

a) Paragraph (c) of Article 260 (249)
b) Paragraph (b) of Article 260 (249)
c) Paragraph (d) of Article 260 (249)
d) Paragraph (a) of Article 260 (249)
BASIS: Paragraph (d) of Article 260 (249) To cause or attempt to cause an employer to
pay or deliver or agree to pay or deliver any money or other things of value, in the nature
of an exaction, for services which are not performed or not to be performed, including the
demand for fee for union negotiations;
98) Featherbedding is patterned from the ______ ?
a) Davis-Bacon Act
b) Norris-La Guardia Act
c) National Labor Relations Act
d) Taft-Hartley Act
BASIS: The Labor Management Relations Act of 1947, better known as the Taft–Hartley
Act, is a United States federal law that restricts the activities and power of labor unions.
Section 8(b)(6) of the Act makes it unlawful for a labor organization or its agents "to cause
or attempt to cause an employer to pay or deliver or agree to pay or deliver any money
or other thing of value, in the nature of an exaction, for services which are not performed
or not to be performed.
99) This refers to the practice, caused and induced by a union, of hiring more workers
than are needed to perform a given work, job or task or to adopt work procedures which
are evidently senseless, wasteful, inefficient and without legitimate justifications since it
is meant purely for the purpose of employing additional workers than are necessary.
a) Featherbedding
b) Fetherbedding
c) Fethearbedding
d) Featherbeding
BASIS: Definition of Featherbedding
100) True or False
I. In Featherbedding, the labor organizations, agents or their representatives, have

caused or attempted to cause the employer either to pay or agree to pay any money or
to deliver or agree to deliver any things of value.
II. In Featherbedding, the demand for payment of money or delivery of things of value is
in the nature of exaction.
III. In Featherbedding, the services contemplated in exchange for the exaction are not
actually performed or will not be performed.
a) All the statements are true

b) All the statements are false
c) Only Statement I is true
d) Only Statement I is false
RATIONALE: The above statements are the requisites for featherbedding.
101) Which of the following refers to the act of the employer in paying the money or
delivering the things of value demanded by the union despite such payment being against
the will of the employer?
a) Economic Shakedown
b) Exaction
c) Extortion
d) Unfair Labor Blackmail
BASIS: USLegal.com
102) What should be the nature of an employment offer before the employer determines
whether such offer should be accepted?
a) Bona fide offer of competent performance of relevant services

b) Bona fide offer of physical or mental work
c) Bona fide offer of competency and good moral character
d) Bona fide offer of passion, integrity, and loyalty
BASIS: NLRB v Gamble Enterprises, Inc, 345 US 117 97
103) Which of the following does not violate the anti-featherbedding law?
a) A printer’s union securing payment of wages to printers from newspapers for

setting “bogus” - duplicate forms for local advertisement although the newspaper
already has cardboard matrices to be used as molds for metal casting from which
to print the same advertisements – even though the “bogus” is ordinarily not used
but is melted down immediately.
b) A musician’s union refusing to permit a union organist to play at the home
games, and picketing the baseball stadium, in order to force the owner of the
baseball team to hire a union band to play at all weekend home games.
c. A musician union refusing to give its consent to appearances of travelling bands
in a theater unless the theater manager also employs local orchestra is to perform
actual and not token services, even though the theater manager does not need or
want to employ the local orchestra.
d) All of the Above
e) None of the Above
BASIS: In Consolidated Theater’s Inc., v. Theatrical Stage Employees union, it was

held that there is no violation of the anti-featherbedding provision in refusing to give its
consent to appearances of travelling bands in a theater unless the theater manager also
employs local orchestra is to perform actual and not token services, even though the
theater manager does not need or want to employ the local orchestra.
In American Newspaper Publisher Association v. NLRB, it was held that the printer’s
union did not violate the anti-featherbedding provision by securing payment of wages to
printers from newspapers for setting “bogus” - duplicate forms for local advertisement
although the newspaper already has cardboard matrices to be used as molds for metal
casting from which to print the same advertisements – even though the “bogus” is
ordinarily not used but is melted down immediately.
In Musician Union v. Superior Court of Alameda County, it was held that a musician
union did not violate the anti-featherbedding provision by refusing to permit a union
organist to play at the home games, and picketing the baseball stadium, in order to force
the owner of the baseball team to hire a union band to play at all weekend home games.
104) Which of the following statement is incorrect?
a) The anti-featherbedding provision does not bar a union from demanding

payment for work for which the employer has already paid another person.
b) The anti-featherbedding provision bars a union from demanding payment
for work for which the employer has already paid another person.
c) Where work is actually done by an employee with the employer’s consent, the
union’s demand that the employee be compensated for time spent in doing the
work does not violate the anti-featherbedding law.
d) All of the Above
e) None of the Above.
RATIONALE: It was held that a union is not guilty of ULP in demanding payment to it of
an amount equal to the wages paid by the employer to a non-union employee for work to
which the union’s members were entitled. If the work is actually done by employees, there
can be no conflict with the anti-featherbedding provision, regardless of whether or not the
person receiving the payment are the ones who performed the work.
105) Which of the following is considered as ULP?
a) To ask for negotiation fees or attorneys fee

b) To accept for negotiation fees or attorneys fee
c) both a and b
BASIS: Article 260(e) of the Labor Code
106) The negotiation fees or attorney’s fees are demanded from, or given by the employer
as part of the settlement of any issues related to ___________.
a) Collective Bargaining
b) Employer
c) Employee
RATIONALE: One of the requisite to hold a union liable for ULP is the negotiation fees
or attorney’s fees are demanded from, or given by the employer as part of the settlement
of any issues related to Collective bargaining and other dispute.
107) A simple violation of the CBA is considered _____, but _____
a) no longer ULP; merely a grievable issue

b) no longer ULP; a criminal action
c) ULP; questioned before the grievance machinery
d) ULP; questioned before the Labor Arbiter

108) Violation of the CBA becomes ULP only if the violation is gross in character which
means that there is flagrant/malicious refusal to comply with the _____ stipulations in the
CBA.
a) economic
b) standard
c) proposed
d) amended
109) The State guarantees the rights of all workers to_____________, then to engage in
collective bargaining and negotiations and should there be conflict, to conduct peaceful
concerted activities, including the right to strike in accordance with law.
a) rally
b) file a complaint against the employer
c) self- organization
d) use force and intimidation against the employer
RATIONALE: Self-organization is the key to a meaningful exercise of the right to

concerted activities.
110) The common justification for the conduct of concerted activities, on the part of the
workers, and lockout, on the part of the employer, is the existence of an industrial or labor
dispute. As defined in law, the term industrial or labor dispute includes:
a) Any controversy concerning terms, tenure or conditions of employment,

of concerning the association or representation of persons in negotiating,
fixing, maintaining, changing, or seeking to arrange terms or conditions of
employment, regardless of whether the disputants stand in the proximate
relation of employer and employees
b) Anything which can be a source of conflict between the employer and the
employees provided that employer-employee relationship exists
c) Any controversy involving strikes
RATIONALE: An industrial or labor dispute includes any controversy concerning terms,

tenure or conditions of employment, of concerning the association or representation of
persons in negotiating, fixing, maintaining, changing, or seeking to arrange terms or
conditions of employment, regardless of whether the disputants stand in the proximate
relation of employer and employees
111) Strike means any temporary stoppage of work by the concerted action of employees
as a result of an industrial or labor dispute.
a) Strike
b) Lockout
c) Legal strike
d) Economic strike
BASIS: Art. 219 (o), 212 (o), Labor Code, as amended by Section 4, R.A 6715.
112) Based on the definition of strike under Sec. 4, Art. 212 of the Labor Code, as
amended, the following are the elements of a strike, except
a) temporary stoppage of work by the employees;

b) Through their concerted action;
c) Occasioned by an industrial or labor dispute;
BASIS: Art. 219 (o), 212 (o), Labor Code, as amended by Section 4, R.A 6715.
113) Which of the following is not considered as a form of strike?
a) Sitdowns
b) Slowdowns
c) Destruction of plant equipment
d) All of the above
e) None of the above
RATIONALE: Strikes are not limited to work stoppages but also includes slowdowns,
mass leaves, overtime boycott, sitdowns, attempts to damage, destroy or sabotage plant
equipment and facilities, and similar activities. The substance of the situation, and not its
appearance, is deemed controlling in determining whether an activity is considered a
strike.
114) All but one of the following is considered an economic strike:
a) A strike for sabbatical leave benefits

b) A strike for funeral benefits for the death of direct family members of the
employees
c) A strike for coffee vending machines in the company premises
d) All three are economic strikes
e) None of the three are economic strikes
RATIONALE: An economic strike is defined as one which is to force wage or other

concessions from the employer which he is not required by law to grant. None of the
three benefits being demanded is required by law. The strikes to demand for these are
therefore considered economic strikes.
115) It is a strike called to protest against the employer’s ULPs enumerated in Article 259
[248] of the Labor Code, including gross violation of the CBA under Article 274 [261] and
union-busting under Article 278 (c) [263 (c)] of the Labor Code.
a) Unfair labor practice or political strike

b) Slowdown strike
c) Wildcat strike
d) Sit-down strike
BASIS: No. 2, NCMB Primer on Strike, Picketing and Lockout, 2nd Edition, December
1995
116) It is a strike where the workers stop working but do not leave their place of work.
a) Unfair labor practice or political strike

b) Slowdown strike
c) Wildcat strike
d) Sit-down strike
BASIS: G & S Transport Corp v. Infante, GR No. 160303, Sept. 13, 2007
117) It is a strike where the strikers have no demands or grievances or labor dispute of
their own against their employer but nonetheless stage the strike for the purpose of aiding,
directly or indirectly, other strikers in other establishments or companies, without
necessarily having any direct relation to the advancement of the strikers' interest.
a) Wildcat strike
b) Primary strike
c) Sympathy strike
d) Secondary strike
RATIONALE: Sympathy strike is patently an illegal strike. An example is the "welga ng

bayan" where workers refuse to render work to join a general strike which does not involve
a labor or industrial dispute between the strikers and the employer struck against./Dee C,
Chua & Sons, Inc. v. Kaisahan ng mga Manggagawa sa Kahoy sa Filipinas, GR No. L-
8149.
118) It is a strike staged by the workers of an employer involving an issue which does not
directly concern or affect their relationship but rather, by some circumstance, affects the
workers, such as when the employer persists to deal with a third person against whom
the workers have an existing grievance.
a) Wildcat strike
b) Primary strike
c) Sympathy strike
d) Secondary strike
RATIONALE: A secondary strike is a classification of strike according to the extent of the

interest of strikers. Workers stage this kind of strike to secure the economic assistance of
their employer to force the third person to yield to the union on the issues involving it and
said third person.
119) _______________ is a “Strike on the installment plan,” a willful reduction in the rate
of work by the concerted action of the workers for the purpose of restricting the output of
the employer, in relation to a labor dispute.
a) Stoppage
b) Walkout
c) Slowdown
d) Protest
BASIS: Interphil Laboratories Union-FFW v. Interphil Laboratories, Inc., (G.R. No.

142824, December 19, 2001)
120) This refers to a simultaneous availment of authorized leave benefits by a huge

number of employees in a company.
a) Mass Exit
b) Large-Scale Leave
c) Mass Leave
d) Massive Stoppage
BASIS: Naranjo v. Biomedical Health Care (G.R. No. 193789, September 19, 2012).
121) __________ consists in the act of the workers in refusing to render overtime work in
violation of the CBA; it is resorted to as a means to coerce the wmployer to yield to their
demands.
a) Overtime boycott
b) Overwork boycott
c) Strike
d) Picket
BASIS: The case of In Interphil Laboratories Employees Union-FFW v Interphil

Laboratories, Inc., GR No 142824, December 19, 2001 - has declared this as a form of
illegal strike.
122) This involves the concerted refusal to patronize an employer’s goods or services
and to persuade others to a like refusal
a) Boycott of products or services

b) Overtime boycott
c) Boycott
d) Strike
BASIS: This is another form of strike. Ilaw at Buklod ng Manggagawa [IBM] v NLRC, GR
No. 91980, June 27, 1991, 198 SCRA 586
123) Which of the following is not a requisite for a valid strike?
a) It must be grounded on any or both of the following: (1) Unfair Labor Practice;
and/or (2) Collective Bargaining Deadlock.
b) A notice of strike must be filed with the NCMB-DOLE.
c) A strike report should be submitted to the NCMB-DOLE at least seven days
before the intended date of the strike.
d) A strike vote must be taken where a majority of the members obtained by
Yeas and Nays in a meeting called for the purpose.
BASIS: A strike vote must be taken where a majority of the members obtained by secret
ballot in a meeting called for the purpose, as provided under Article 278 of the Labor
Code, and prevailing jurisprudence, e.g. Libongcogon v Phimco Industries (GR. No.
203332, 18 April 2014).
124) Which among the following statements is false?
Statement I: Unfair Labor Practice of the employer may be a ground for staging a valid
strike.
Statement II: Collective Bargaining Deadlock may be a ground for staging a valid strike.
Statement III: A notice of strike must be filed with the Labor Arbiter of the place where the
principal office of the company is registered
Statement IV: Although procedural in nature, the requisites of a valid strike are mandatory
and failure of a union or employer to comply would render a strike illegal.
a) Statement I
b) Statement II
c) Statement III
d) Statement IV
BASIS: Under Article 278 of the Labor Code, one of the requisites of a valid strike is that
the notice of strike must be filed with the National Conciliation and Mediation Board
(NCMB) of the Department of Labor and Employment (DOLE).
125) The law recognizes only these grounds in support of a valid strike:
a) ULP or Political Strike

b) Collective Bargaining Deadlock or Economic Strike
c) Neither a nor b
d) Both a and b
BASIS: Section 5, Rule XXII, Book V, Rules to Implement the Labor Code, as amended
by Department Order No. 40-03, Series of 2003 [February 17, 2003]
126) The following are not valid grounds in support of a valid strike, except:
a) Violation of CBAs
b) Inter-union and internal union disputes
c) Labor standards cases
BASIS: Article 278(b) [263(b)], Labor Code; See also Section 5, Rule XXII, Book V, Rules
to Implement the Labor Code.
127) What is the purpose of a strike vote?
a) to ensure that the decision to strike broadly rests with the majority of
the union members in general and not with a mere minority thereof
b) to ensure that the decision to strike broadly rests with the majority of the union
members in general and not with a mere majority thereof
c) to ensure that the decision to strike broadly rests with the minority of the union
members in general and not with a mere minority thereof
d) to ensure that the decision to strike broadly rests with the minority of the union
members in general and not with a mere majority thereof
RATIONALE: The purpose of a strike vote is to ensure that the decision to strike broadly
rests with the majority of the union members in general and not with a mere minority
thereof, At the same time, itis meant to discourage wildcat strikes, union bossism and
even corruption.
128) In every case of strike vote, the union is required to furnish a report on the results of
the voting to the:
a) NCMB-DOLE.
b) Bureau of Labor Relations
c) COMELEC
d) NLRC
RATIONALE: In every case of strike vote, the union is required to furnish a report on the
results of the voting to the NCMB- DOLE. Its submission is meant to ensure that a strike
vote was indeed taken and in the event that the report is false, to afford the members an
opportunity to take the appropriate remedy before itis too late. It is a fact, for instance,
that many disastrous strikes have been staged based merely on the insistence of minority
groups within the union. The submission of the report gives assurance that a strike vote
has been taken and that, if the report concerning it is false, the majority of the members
can take appropriate remedy before it is too late.
129) The exception to the rule in observance of the cooling-off period is in cases of
_____________________ which is considered and unfair labor practice where the 15-
day cooling-off period may be disregarded completely.
a) union-busting
b) bargaining deadlock
c) unfair labor practice
d) strike ban
BASIS: Article 278(c) Labor Code, Section 7, Rule XXII, Book V, Rules to Implement the
Labor Code.
130) After the taking of the strike vote, the union, in every case, should furnish the NCMB-
DOLE the results of the voting at least ____________ days before the actual staging of
the intended strike or lockout, subject to the cooling-off periods provided therein.
a) five (5)
b) seven (7)
c) ten (10)
d) fifteen (15)
BASIS: No. 6, NCMB Primer on Strike, picketing and Lockout, 2nd Edition, December
1995
131) The 7-day waiting period or strike ban is a concurrent requirement from the cooling-
off periods.
a) Yes.
b) Only when filed at the same time.
c) No.
d) Only for unions in a federation.
RATIONALE: Art. 278 (f) of the Labor Code states that the 7-day requirement is subject
to the cooling-off period provided, namely the 15- or 30-day period.
132) May a strike vote be taken and reported within the cooling-off period?
a) No, Article 278 (f) says that the waiting period subsequent to the strike vote is
separate from the cooling-off period.
b) No, the report should be made on or after the last day of the cooling-off period.
c) Yes, but the waiting period after it will be counted from the day following
the expiration of the cooling-off period.
d) Yes, so the counting of the waiting period starts upon its submission.
RATIONALE: The NCMB Primer on Strike, Picketing and Lockout recognizes the
possibility of a strike vote taken and reported to the NCMB-DOLE within the statutory
cooling-off period. Hence, they established that the waiting period starts after the cooling
off period.
133) In the event the result of the strike/ lockout vote ballot is filed within the cooling-off
period, the 7-day requirement shall be counted _________________ of the cooling-off
period.
a) from the day following the expiration

b) three days from the expiration
c) two days from the expiration
d) five days from the expiration
BASIS: No. 6, NCMB Primer on Strike, Picketing and Lockout.
134) The notice of strike grounded in ULP was filed by the union on March 01, 2017 and
the strike vote was taken on March 5, 2017 and its result was reported to the NCMB-
DOLE two days thereafter or on March 7, 2017 - all done within the 15-day cooling-off
period. When may the strike be validly mounted?
a) March 24, 2017 or any day thereafter but not before this date
b) Any day between March 5, 2017 to March 23, 2017
c) Any day
d) Any day between March 7, 2017 to March 23, 2017.
RATIONALE: The reason is that since ULO is the ground cited in the notice of strike, the
cooling off period is 15 days that should be reckoned from March 1, 2017 until March 16,
2017. To be added to this is the 7 days of waiting period which will lapse on March 23,
2017. The union, therefore, can validly strike not on the last day when the 7 days expired,
that is, March 23, 2017, but inly a day thereafter or on March 24, 2017 or on any day after
this date.
135) The following are elements of union busting:
Statement 1. A dismissal from employment of union officers duly elected in accordance

with the union’s constitution and by-laws.
Statement 2. The existence of the union is threatened by such dismissal.
Statement 3. Dismissal of ordinary union members
a) Statements 1 and 2 only
b) Statements 3 and 2 only
c) Statements 1, 2 and 3
d) All statements are wrong.
BASIS: Under Article 278 (c) [263(c)] of the Labor Code, the elements of union busting
are as follows:
1. The dismissal from employment of union officers duly elected in accordance with the
union’s constitution and by-laws; and
2. The existence of the union is threatened by such dismissal
Statement 3 does not constitute union-busting.
136) Statement 1: One-day strike with no compliance with the 7-day strike ban is
permitted
Statement 2: A strike mounted on the same day the notice of strike is filed or strike vote
report is submitted to the NCMB-DOLE is illegal.
a) Statement 1 is correct.
b) Statement 2 is correct.
c) Both are correct.
d) Both are wrong.
BASIS: Pilipino Telephone Corp. vs. Pilipino Telephone Employees Association (GR No.
160058, June 22, 2007); National Union of Workers in Hotel Restaurant and Allied
Industries Dusit Hotel Nikko Chapter vs. CA (GR Nos. 163942 & 166295, Nov. 11, 2008):
"A strike mounted on the same day the notice of strike is filed or strike vote report is
submitted to the NCMB-DOLE is illegal.
Samahang Manggagawa sa Sulpicio Lines, Inc. vs. Sulpicio Lines, Inc. (GR No. 140992,
March 25, 2004): One-day strike with no compliance with the 7-day strike ban is held
illegal.
137) ____________ is an unfair labor practice which may be invoked as a valid ground
for strike.
a) Union Busting
b) Busting
c) Union Disintegration
d) Labor Busting
BASIS: Zamboanga Wood Products, Inc. vs NLRC, G.R. NO. 82088
138) TRUE OR FALSE
I. If there is no dismissal to speak of, there can be no union- busting where the second
notice of strike filed by the union merely assailed the mass promotion of its officers and
members during the CBA negotiation.
II. If there is dismissal, even if only one union officer is involved, it will nonetheless
constitute union-busting.
a) TRUE, FALSE
b) FALSE, TRUE
c) none of the choices
d) TRUE, TRUE
BASIS: Pilipino Telephone Corp. v. PILTEA, G.R. NO. 160058; Colegio de San Juan de
Letran v. Association of Employees and Faculty of Letran, G.R. NO. 141471
139) True or False.
Statement I: The 15-day cooling off period applicable to cases where the ground invoked
is ULP applies in cases of union-busting
Statement II: In other words, in case of union-busting, the law allows the complete
disregard of the 15-day cooling off period but the requirement on the 7-day waiting period
or strike ban, together with the other requirements on the filing of a notice of strike, the
conduct of a strike vote and the submission of the results thereof to the NCMB-DOLE,
should still be complied with.
a) Only statement I is true.

b) Only statement II is true.
c) Both statements are true.
d) Both statements are false.
BASIS: See No. 6, NCMB Primer on Strike, Picketing and Lockout, 2nd Edition,
December 1995.
Statement I is false because the 15-day cooling off period applicable to cases where the
ground invoked is ULP DOES NOT apply in cases of union-busting; thus, the union may
take action immediately.
140) In every case, the union or the employer shall furnish the _______ the results of the
voting at least _____ days before the intended strike or lockout, subject to the cooling-off
period herein provided.
a) Ministry, 7 days
b) DOLE Secretary, 10 days
c) Labor Arbiter, 15 days
d) Labor Arbiter, 30 days
BASIS: No. 6, NCMB Primer on Strike, Picketing and Lockout, 2nd Edition, December
1995.
141)
1. The striking union or employer involved in the lockout is obliged to maintain an

effective skeletal workforce during the strike or lockout. The movement of the skeletal
force shall be unhampered and unrestricted.
2. The striking union or employer involved in the lockout shall ensure proper and
adequate protection of the life and health of patients particularly in emergency cases.

c) Statement 1 is true.
d) Statement 2 is true.
BASIS: Article 278(g) [263(g)], Labor Code; See Section 17, Rule XXII, Book V of the
Rules to Implement the Labor Code
142) Strikes in Hospitals, Clinics, and Medical Institutions
The striking union or employer involved in the lockout is obliged to maintain an effective
skeletal workforce during the strike or lockout. The movement of the skeletal force shall
be __________ and _____________.
a) Unhampered, unrestricted
b) Proper, adequate
c) Unhampered, adequate
d) Proper, unrestricted
BASIS: Article 278(g) [263(g)], Labor Code; See Section 17, Rule XXII, Book V of the
Rules to Implement the Labor Code
143) For purposes of the exercise of the rights to self-organization and to strike, the Labor
Code classifies employees in the government sector as follows, except:
a) Employees of government-owned and/or controlled corporations (GOCCs)

organized under the Corporation Code (without original charters) and are,
therefore, covered by the Labor Code.
b) Employees of the government and its political subdivisions or instrumentalities,
including government-owned and/or controlled corporations (GOCCs) organized
with original charters and are, therefore, covered by the Civil Service Law, rules
and regulations. They are called civil service employees.
c) Employees of government-owned and/or controlled corporations
(GOCCs) organized under the Corporation Code (with original charters) and
are, therefore, covered by the Labor Code.
BASIS: Articles 278 (g) [263(g)], 253 [244], 291 [276] of the Labor Code.
144) In the case of ____, although the Constitution vests in the government teachers the
right to organize, to assemble peaceably and to petition the government for a redress of
grievances, there is no like express provision granting them the right to strike. Rather, the
constitutional grant of the right to strike is restrained by the proviso that its exercise shall
be done in accordance with law.
a) Jacinto v. CA
b) AGW v. Minister of Labor
c) SSEA v. CA
d) Toyota Motor Phils. Corp. Workers Association v. NLRC
BASIS: Justification for absolute prohibition. Jacinto v CA, G.R. No. 124540, Nov. 14,
1997, 281 SCRA 657.
145) This is subject to the terms and conditions of employment in the unionized private
sector and are settled through the process of collective bargaining.
a) Minimum requirements of wage laws and other labor and welfare

legislation.
b) In accordance with law.
c) Governed by law, statutes and orders.
d) Through social legislation and social justice.
RATIONALE: The terms and conditions of employment in the Government, including any
political subdivision or instrumentality thereof are governed by law, hence, government
workers cannot use the same weapons employed by the workers in the private sector to
secure concessions from their employers. (Alliance of Government Workers v. Minister
of Labor and Employment, G.R. No. L-60403, Aug. 3, 1983, 124 SCRA 1).
146) In any unresolved grievances and appropriate action, government employees,

through their unions or associations, to either petition the Congress for the betterment of
the terms and conditions of employment which are within the ambit of legislation or
negotiate with the appropriate government agencies for the improvement of those which
are not fixed by law, the dispute may be referred to the:
a) Public Sector Labor-Management Committee.

b) Private Sector Labor-Management Committee.
c) Private Sector Labor-Management Council.
d) Public Sector Labor-Management Council.
RATIONALE: If there be any unresolved grievances, the dispute may be referred to the
Public Sector Labor-Management Council for appropriate action. The terms and
conditions of employment in the government, including any political subdivision or
instrumentality thereof and government-owned and controlled corporations with original
charters are governed by laws and employees therein shall not strike for the purpose of
securing changes thereto. (Social Security employees Association (SSSEA) v. CA, G.R.
No. 85279, July 28, 1989, 175 SCRA 686).
147) Which law governs employment contract?
a) Labor Code
b) Civil Code
c) Constitution
RATIONALE: The Employment Contract is governed by the Labor Code while the
Service Agreement is governed by the Civil Code.
148) Which law governs the Service Agreement?

a) Labor Code
b) Civil Code
c) RPC
d) All of the choices
RATIONALE: The Employment Contract is governed by the Labor Code while the
Service Agreement is governed by the Civil Code.
149) Which of the following is not considered a prohibited act in strikes?
a) Declaring and staging a strike without complying with the procedural but
mandatory requisites.
b) Declaring and staging a strike after having bargained collectively.
c) Declaring and staging a strike based on non-strikeable or invalid
grounds.
d) Declaring and staging a strike for unlawful purpose.
BASIS: [278(c), 263(c)], Labor Code. Declaring and staging a strike without first having
bargained collectively.
150) Which of the following is a valid ground for strike?
a) Inter-union or intra-union disputes.

b) Violation of CBA which is now considered a grievable issue.
c) Violation of labor standards
d) collective bargaining deadlock and unfair labor practice.
RATIONALE: There are only two (2) valid grounds, namely: (1) collective bargaining
deadlock; and (2) unfair labor practice. All other grounds therefore are non-strikeable.
- No. 21, NCMB Primer on Strike, Picketing and Lockout 2nd Edition, December 1995
a) Declaring and staging a strike while conciliation and mediation

proceedings are ongoing at the NCMB is a violation of the Rules to
Implement the Labor Code
b) Declaring and staging a strike while conciliation and mediation proceedings are
ongoing at the NCMB is not a violation of the Rules to Implement the Labor Code
c) Declaring and staging a strike while conciliation and mediation proceedings are
ongoing at the NCMB may be a violation of the Rules to Implement the Labor Code
d) Declaring and staging a strike while conciliation and mediation proceedings are
ongoing at the NCMB may not be considered a violation of the Rules to Implement
the Labor Code
RATIONALE: The Rules to Implement the Labor Code explicitly obliges the parties to
bargain collectively in good faith and prohibits them from impending or disrupting the
proceedings.
152) Declaring and staging a strike in violation of " no strike, no lockout clause" may be
invoked by the employer if it is ___ in nature.
a) economic
b) feasible
c) substantial
d) lawful
RATIONALE: This refers to one which is conducted to force wage or other concessions
from the employer that are not mandated to be granted by the law itself.
153) A strike conducted during the pendency of the compulsory arbitration proceedings
on a labor dispute certified to the NLRC by the DOLE Secretary for Compulsory arbitration
is ___________.
a) Valid
b) Invalid
c) Legal
d) Illegal
RATIONALE: Philippine Diamond Hotel and Resort Inc v. Manila Diamond Hotel
Employees Union, G.R. No. 158075, June 30, 2006 provides that a strike conducted
during the pendency of the compulsory arbitration proceedings on a labor dispute certified
to the NLRC by the DOLE Secretary for Compulsory arbitration is illegal.
154) Which of the following is a prohibited act in a strike?
a) Declaring and staging a strike during the pendency of a case involving the same
ground/s cited in the notice of strike or lockout.
b) Declaring and staging a strike in defiance of an assumption or certification or
return-to-work order.
c) Declaring and staging a strike in violation of a temporary restraining order or an
injunction order.
d) All of the above.
RATIONALE: All of the above are considered prohibited acts. Association of Independent
Unions in the Philippines v. NLRC, GR No. 120505, March 25, 1999
155) I. Only a legitimate labor organization is entitled to file a notice of strike on behalf of
its members.
II. An illegitimate labor organization is also entitled to file a notice of strike on behalf of its
members
a) Statement I is correct.
b) Statement II is correct.
c) Both statements are correct.
d) Both statements are wrong.
BASIS: Article 278(c) [263(c)] of the Labor Code
156) The following are prohibited acts in strikes, except:
a) Declaring and staging a strike by a majority union.

b) Declaring and staging a strike by a minority union.
c) Declaring and staging a strike by an illegitimate union
d) Declaring and staging a strik in violation of the Company Code
BASIS: United Restauror's Employees & Labor Union - PAFLU v. Torres
157) In the Toyota Motor Phils. Corp. Workers Association vs. NLRC, what is the ruling
of the Supreme Court regarding a situation when the DOLE Secretary assumes
jurisdiction over a labor dispute or certifies a case for compulsory arbitration to the NLRC?
a) The parties have to revert to the status quo ante ( the state of things as it
was before)
b) It can be deemed that there was a work disruption.
c) The parties can rely with the fact that their pickets and strikes caused no harm
at all.
d) There are no changes.
RATIONALE: In the case of Toyota Motor Phils. Corp. Workers Association vs. NLRC,
the Supreme Court asserted that once the DOLE Secretary assumes jurisdiction over a
labor dispute or certifies a case for compulsory arbitration to the NLRC, the parties have
to revert to the status quo ante ( the state of things as it was before). While it may be
conceded that there was no work disruption in the two Toyota plants, the fact still remains
that the union and its members picketed and performed concerted actions in front of the
company premises.
158) From the case of Toyota Motor vs. NLRC, what are the effects of the pickets and
concerted actions done by the dismissed employees?
a) It had a demoralizing and even chilling effect on the workers inside the
plants and can be considered as veiled threats of possible trouble to the
workers when they go out of the company premises.
b) It had little to no effect to the employees working inside the plant as the pickets
and concerted actions did not imply any harm.
c) It gave hope and courage to the current employees of Toyota to come out and
air their grievances to their employer.
d) It reaffirmed to the employer that they are the ones who are right and the
dismissed employees are mere nuisances to the company's greater success.
RATIONALE: From the case of Toyota Motor vs. NLRC, the Supreme Court ruled that
the pickets and concerted actions done by the dismissed employees had a demoralizing
and even chilling effect on the workers inside the plants and can be considered as veiled
threats of possible trouble to the workers when they go out of the company premises after
work and of impending disruption of operations to company officials and even to
customers in the days to come.
159) It is in the nature of a general strike and an extended sympathy strike which are
illegal since the striking employees have no labor dispute with their employer but who, on
a day they are scheduled to work, refuse to work.
a) Welga ng Bayan
b) Welga ng Barangay
c) Boycott
d) Abandonment of work
BASIS: Stoppage of work due to welga ng bayan is in the nature of a general strike and
an extended sympathy strike which are illegal since the striking employees have no labor
dispute with their employer but who, on a day they are scheduled to work, refuse to work.
160) Statement 1: Declaring and staging protest rallies in front of government offices may
constitute an illegal strike.
Statement 2: Protest actions staged by employees in front of the Office of the DOLE
Secretary is constitutive of illegal strike.
a) both statements are true

b) both statements are false
c) only statement 1 is true
d) only statement 2 is true
BASIS: Solidbank Corporation vs. Gamier, GR no. 159460 & 159461
161) This case held that not every claim of good faith is justifiable and herein petitioners'
claim of good faith should not be countenance since their decision to go on strike was
clearly unwarranted.
a) Peninsula Manila Hotel case

b) Sulpicio Lines case
c) Solidbank v Gamier
d) Manila Hotel case
BASIS: NUWHRAIN – The Peninsula Manila Chapter (Interim Union Junta) v. NLRC,
G.R. No. 125561, March 6, 1998
162) Why was the strike in Sulpicio Lines case declared illegal?
a) The Supreme Court found the accusation of union-busting bereft of any

proof
b) The union has the burden of proof to present substantial evidence to prove its
allegations
c) The strike was staged in good faith
BASIS: Samahang Manggagawa sa Sulpicio Lines, Inc.-NAFLY v. Sulpicio Lines, Inc.,

G.R. No. 140992, March 25, 2004
163) S1: The declaration or actual conduct of a strike results in the severance of the
employment relationship or renunciation thereof.
S2: Participation of an employee in legal strikes constitutes a sufficient ground for the
termination of his employment.

BASIS: Rex Taxicab Co. vs. CIR
164) S1: If in the course of a lawful strike, illegal acts are committed by the strikers, the
strike becomes illegal.
S2: A striker, who is an officer, who is guilty of committing illegal acts in strike cannot
evade personal and individual liability.

BASIS: Toyota Motor Phils Corp Workers Association vs NLRC
165) Union officers who knowingly participate in an illegal strike will result to:
a) Compromise
b) Dispute
c) Termination
d) Suspension
RATIONALE: The mere Finding or declaration of illegality of the strike will result in the
termination of all union officers who knowingly participated in the illegal strike. Lapanday
Workers Union v NLRC, GR No. 95494-97, September 7, 1995. Unlike ordinary members,
it is not required, for purposes of termination, that the officers should be proven to have
committed illegal acts during the strike in order to be held liable therefor.
166) Which among the following best illustrates a union officer who “knowingly
participates” in an illegal strike?
a) Their persistence in holding picketing activities despite the declaration by the

NCMB that their union was not duly registered as a legitimate labor
organization and notwithstanding the letter from the federation’s legal counsel
informing them that their acts constituted disloyalty to the national federation.
b) Their filing of the notice of strike and conducting a strike vote despite the fact
that their union has no legal personality to negotiate with their employer for
collective bargaining purposes.
c) Knowingly participates in the conduct and staging of an illegal strike.
BASIS: Abaria v NLRC GR No
167) Ordinary union members should not be meted loss of employment on the
considerations of _____, _____, and _____ provisions under the Constitution.
a) Compassion, good faith, and security of tenure

b) Sympathy, good faith, and self-organization
c) Compassion, self-organization, and collective bargaining
d) Sympathy, good faith, and just conditions of work
RATIONALE: Ordinary union members should not be meted loss of employment on the
considerations of compassion, good faith, and security of tenure provisions under the
Constitution. In Esso Philippines, it was explained that a member is not responsible for
the union’s illegal strike even if he voted for the holding of a strike that became illegal.
168) For purposes of identifying the union officers, the certifications as to the names of
the union officers issued by the Chief of the Labor Organization Division of
the __________ enjoy the presumption of regularity.
a) Bureau of Labor Relations

b) National Labor Relations Commission
c) National Conciliation and Mediation Board
d) Philippine Overseas Employment Administration
RATIONALE: For purposes of identifying the union officers, the certifications as to the
names of the union officers issued by the Chief of the Labor Organization Division of the
Bureau of Labor Relations, being public records, enjoy the presumption of regularity and
deserve weight and probative value.
169) As to the liability for commission of illegal acts, the legality or illegality of the strike
is__?
a) immaterial
b) material
c) irrelevant
d) unnecessary
RATIONALE: As long as the union officer or member commits an illegal act in the course
of the strike, be it legal or illegal, his employment can be validly terminated.
170) Which of the following constitute illegal acts?
a) Violation of Article 279(e) [264(e)] of the Labor Code.

b) Commission of crimes and other unlawful acts in carrying out the strike.
c) Violation of any order, prohibition, or injunction issued by the DOLE Secretary
or NLRC.
RATIONALE: The term “illegal acts” under Article 279(a) [264(a)] may encompass a
number of acts that violate existing labor or criminal laws.
171) It is a term used to describe the act of working during a strike, whether by strike-
breakers, management personnel, non-unionized employees or members of other unions
not on strike.
a) Crossing the picket line

b) Strike Breaker
c) Backleg
d) Scab
RATIONALE: Crossing the picket line is a term used to describe the act of working during
a strike, whether by strike-breakers, management personnel, non-unionized employees
or members of other unions not on strike.
172) This is a term used to describe the act of working during a strike, whether by strike-
breakers, management personnel, non-unionized employees or members of other unions
not on strike.
a) Crossing the picket line

b) Strike-breaker
c) Knobstick
d) Blackleg
173) What is prohibited to a person who is picketing under Article 279 (e) 264 (e) as
amended?
a) Obstruct the free ingress to or egress from the employer's premises for
lawful purposes, or obstruct public thoroughfares.
b) Apprehend people who are intervening with their peaceful picketing.
c) Show concerted actions and shout grievances through a microphone.
d) None of the choices.
RATIONALE: Article 279 (e) 264 (e) as amended expressly provides that no person
engaging in picketing shall obstruct the free ingress to or egress from the employer's
premises for lawful purposes, or obstruct public thoroughfares.
174) Statement I: Use of slanderous, libelous and obscene language during the strike is
a prohibited act in staging a strike.
Statement II: Exchange of hot words in the picket line is not an illegal act that would
impede or diminish the right to strike.
a) only statement II is true

b) only statement I is true
c) both statements are false
d) both statements are true
BASIS: THE INSULAR LIFE ASSURANCE CO., LTD., EMPLOYEES ASSOCIATION-

NATU vs. THE INSULAR LIFE ASSURANCE CO., LTD.
G.R. No. L-25291 January 30, 1971
175) The following are justifications for terminating defiant workers, except:
a) A strike that is undertaken after the issuance by the DOLE Secretary of an

assumption or certification order becomes a prohibited activity and thus illegal.
b) From the moment a worker defies a return-to-work order, he is deemed to have
abandoned his job
c) By so defying, the workers have forfeited their right to be readmitted to work
d) None of the choices
RATIONALE: The following are justifications for terminating defiant workers:
a. A strike that is undertaken after the issuance by the DOLE Secretary of an assumption
or certification order becomes a prohibited activity and thus illegal.
b. From the moment a worker defies a return-to-work order, he is deemed to have
abandoned his job
c. By so defying, the workers have forfeited their right to be readmitted to work
176) S1: From the moment a worker defies a return-to-work order, he is deemed to have
abandoned his job.
S2: Defiance of a return-to-work order is a sufficient ground for the termination of
employment.

BASIS: Article 278(g) [263(g)] of the Labor Code.
177) Statement 1: A strike that is undertaken despite the issuance by the Secretary of
Labor of an assumption or certification order becomes a prohibited activity
Statement 2: The union officers and members, as a result, are deemed to have lost their
employment status for having knowingly participated in an illegal act.
a) Both Statement 1 & Statement 2 are correct

b) Only Statement 1 is correct
c) Only Statement 2 is correct
d) Both Statement 1 & Statement 2 are not correct
RATIONALE: It was held in the case of UFE v. Nestle that a strike that is undertaken
despite the issuance by the Secretary of Labor of an assumption or certification order
becomes a prohibited activity and thus illegal, pursuant to the second paragraph of Art.
264 of the Labor Code as amended. The Union officers and members, as a result, are
deemed to have lost their employment status for having knowingly participated in an
illegal act.
178) True or False

The defiance of union officers and ordinary union members of the assumption or
certification order and/or return to work order is not a ground for termination for if done
so, it would be tantamount to unfair labor practice.
a) False. It is a brazen disregard of lawful orders and an abandonment of

employment.
b) True. Employers cannot force their employees to work during a strike.
c) None of the above
d) Neither a nor b.
RATIONALE: Defiance of the assumption/ certification order and/or return-to-work order

is deemed to be an abandonment of employment. Sarmiento v Tuico GR No., 75271 &
L-77567. June 27, 1988.
179) TRUE/FALSE
I. Defiance of the assumption order or a return-to-work order by a striking employee,

whether a union officer or a member, is an illegal act and, therefore, a valid ground for
loss of employment status.
II. The union officers or members who participated in a strike and committed prohibited
acts are deemed to have lost their status of employment.
a) True, True
b) False, False
c) True, False
d) False, True
BASIS: I- GR 154591, March 5,2007 : II-GR No 101539, Sept 4,1992.
180) _____________ of the assumption order or a return-to-work order by a striking

employee, whether a union officer or a member, is an illegal act and, therefore, a valid
ground for loss of employment status.
a) Defiance
b) Refusal
c) Neglect
BASIS: As stated in the case of MANILA HOTEL EMPLOYEES ASSOCIATION and its
members, vs. MANILA HOTEL CORPORATION, G.R. No. 154591, March 5, 2007.
181) Which of the following statement is correct?
a) The length of time within which the assumption or certification or return-to-work

order was defied by the strikers is significant in determining their liability therefor.
b) The length of time within which the assumption or certification or return-to-work
order was defied by the employer is not significant in determining their liability
therefor.
c) The length of time within which the assumption or certification or return-
to-work order was defied by the strikers is not significant in determining their
liability therefor.
d) The length of time within which the assumption or certification or return-to-work
order was defied by the employer is significant in determining their liability therefor.
RATIONALE: In the cases of University of San Agustin Employees’ Union-FFW v. The

CA, Federation of Free Workers vs. Inciong, and Sarmiento vs. Tuico, the Supreme Court
is consistent with its ruling that the length of time within which the assumption or
certification or return-to-work order was defied by the strikers is not significant in
determining their liability therefor.
182) Statement I: In legitimate job contracting, there is no employer-employee

relationship between the employer and the employee.
Statement II: In prohibited labor-only contracting, there is an employer-employee existed.
Statement III: In legitimate job contracting, the principal is considered only as an indirect
employer.
Statement IV: In prohibited labor-only contracting the principal is not considered the direct
employer

b) Statements I and III are false
c) Statement IV is false
RATIONALE: In the case of PCI Automation Center v NLRC, it provides the distinctions
between legitimate job contracting and prohibited labor-only contracting wherein in
legitimate job contracting, there is no employer-employee relationship between the
employer and the employee and in prohibited labor-only contracting, there is an
employer-employee existed
183) The following are correct principles on Defiance, except:

a) the assumption/certification order may be served at any time of the day or night
b) the defiant workers, besides being dismissed, may be subject to criminal
prosecution as well
c) the defiant strikers could be validly replaced
d) the period of defiance is material
RATIONALE: the length of time within which the assumption or certification order or
return-to-work order defied by the strikers is not significant in determining their liability
therefor.
184) __________ is a concerted activity of workers consisting in peacefully marching to

and fro before am establishment involved in a labor dispute generally accompanied by
the carrying and display of signs, placards and banners intended to inform public about
the dispute.
a) picketing
b) lockouts
c) strikes
d) union-busting
BASIS: Section 13, Rule XXII, book V, Implementing Rules of Labor Code, as amended
185) True or False
I. In the event, picketers employ impolite language in their picket, such may not result in,
or give rise to, libel or action for damages.
II. The only requirement to make picketing valid is that it should be peacefully conducted.
a) True, True
b) True, False
c) False, True
d) False, False
BASIS: I. Philippine Commercial and Industrial Bank v. Phinabank Employees

Association
II. Article 278 of the Labor Code
186) Does the NLRC has jurisdiction to issue injunction order in favor of the innocent
bystander?
a) Yes, it is one of the appellate jurisdiction of the NLRC.
b) Yes, because the presence of an employer-employer relationship
c) No, because it is under the jurisdiction of the DOLE.
d) No, because of the absence of an employer – employee relationship.
BASIS: Liwayway Publications, Inc vs. Permanent Concrete Workers Union, Gr No. L-
25003, October 23, 1981.
187) In distinguishing between a picket and a strike, what should be taken into account?
a) Totality of the circumstances

b) Right of employees to freedom of expression
c) Right of employees to peaceably assemble to air grievances
BASIS: In Santa Rosa Coca-Cola Plant Employees Union v. Coca-Cola Bottlers

Philippines, it was held that what is definitive of whether the action staged is a strike and
not merely a picket is the totality of the circumstances surrounding the situation.
188) Which of the following circumstances should be taken into account the most in
distinguishing between a picket and a strike?
a) Work Stoppage
b) Period of Defiance
c) Totality of Circumstances Doctrine
d) Employer-Employee Relationship
BASIS: Santa Rosa Coca-Cola Plant Employees Union v Coca-Cola Bottlers Phils Inc.,
GR Nos 164302-03, 24 Jan 2007
189) It was held in the case of ____________ that the right of employees to publicize
their dispute falls within the protection of freedom of expression and the right to peaceable
assemble to air grievances these rights are by no means absolute.
a) Phimco Industries Inc. vs. Phimco Industries Labor Association

b) Navale vs. CA
c) Deleon vs. National Labor Union
d) Liwayway Publications Inc. vs. Permanent Concrete Workers Union
BASIS: Phimco Industries Inc. vs. Phimco Industries Labor Association, GR No. 170830,
August 11, 2010
190) A picketing conducted as to amount to a _____ is unlawful.
a) nuisance
b) blockage
c) strike
d) protest
BASIS: Picketing is an act of nuisance when the obstruction to the free use of property
substantially interferes with the comfortable enjoyment of life or property or where the
picketing constitutes an unlawful obstruction to the free passage or use, in the customary
manner, of a street.
191) A peaceful moving picket may still be declared if it obstructed the ingress
and egress from the company premises.
a) Illegal
b) legal
c) voidable
BASIS: Phimco Industries, Inc. v. Phimco Industries Labor Association (PILA), G.R No.
178830, Aug 11, 2010.
192) ‘The basis for a “peaceful moving picket” is:
a) The absence of violence during the strike

b) The obstruction of the entry and exit points of the company premises
c) “petty blocking act” or an “insignificant obstructive act.”
d) Causing considerable damages against the company to prevent its operation
RATIONALE: ‘The “peaceful moving picket” that the NLRC noted was based apparently
on the absence of violence during the strike. Otherwise, it is illegal.
193) Kiwi Company refuses to furnish work to the employees of its credit card
division. The refusal to furnish work would not be considered a lockout if:
a) the employees of its credit card previously conducted a mass boycott
b) Kiwi Company permanently closes down its credit card division and pays
the employees separation benefits
c) Kiwi Company validly complies with the requisites laid down by law
d) the employees not furnished work is limited to non-union members
RATIONALE: Lockout refers to the temporary refusal of the employer to furnish work to
its employees as a result of an industrial or labor dispute. A valid lockout is still a
lockout. If the refusal to furnish work is permanent such as in cases of closure of the
establishment or retrenchment, the refusal to furnish work is not a lockout.
194) It means the temporary refusal of an employer to furnish work to its employees as a
result of an industrial or labor dispute.
a) Strike
b) Picket
c) Lockout
d) Deadlock
BASIS: Article 219 (p) [212(p)] of the Labor Code, as amended by Section 4 RA No. 6715
195) In case of an illegal lockout, any worker whose employment has been terminated as
a consequence thereof shall be ____________ with payment of full back wages and other
benefits.
a) restored
b) recalled
c) reinstated
d) reestablished
BASIS: As stated in the 3rd Paragraph of Article 279 (a) [264(a)] of the Labor Code, No.
28 of the Guideline Governing Labor Relations.
196) Statement 1: To be valid, a lockout must be based on any or both of the exclusive
grounds of: Unfair labor practice (ULP) of the labor organization; and/or Collective
bargaining deadlock (CBD).
Statement 2: Any worker whose employment has been terminated as a consequence of
an illegal lockout is reinstated, with payment of full backwages and other benefits.
a) Statement 1 is true
b) Statement 2 is true
BASIS: Department Order No. 7, Guidelines Governing Labor Relations s (19 October
1987); and the 3rd paragraph of Article 279(a) [264(a)] of the Labor Code; No. 28,
Guidelines Governing Labor Relations.
197) If it be established by evidence that both the employer and the union are guilty of
illegal lockout and illegal strike, respectively, what is the logical consequence?
a) The case should be dismissed right then and there.

b) The case should be remanded to the lower court for further investigation.
c) Because they are in pari delicto, they should be restored to their
respective positions prior to the illegal strike and illegal lockout.
d) Because they are in pari delicto, they should be restored to their respective
positions prior to the illegal strike and illegal lockout and pay each other the
necessary damages.
BASIS: Automotive Engine Rebuilders v. Progresibong Unyon ng mga Manggagawa sa

AER, GR No. 160138, 13 July 2011.
198) Article 278(g) [263 (g)] provides that when in the __________ of the
_______________, the labor dispute causes or will likely to cause a strike or lockdown in
an industry indispensable to the national interest, he is empowered to do either of two
things:
a) opinion, DOLE Secretary

b) opinion, NLRC
c) opinion, DOLE Officer
d) opinion, NCMB-DOLE
BASIS: Article 278(g) [263 (g)] provides that when in the opinion of the DOLE Secretary,
the labor dispute causes or will likely to cause a strike or lockdown in an industry
indispensable to the national interest, he is empowered to do either of two things:
(1) He may assume jurisdiction over the labor dispute and decide it himself; or
(2) He may certify it to the NLRC for compulsory arbitration, in which case, it will
be the NLRC which shall hear and decide it.
(See also Article 278(i) [263(i)]
199) Having two options, the DOLE Secretary may do the following variations:
a) Assume jurisdiction over a labor dispute and at the same time certify it to the
NLRC for compulsory arbitration.
b) Initially assume jurisdiction over a labor dispute and later, on a different date ,
certify the same labor disputes to the NLRC for compulsory arbitration.
c) Neither a nor b
d) Either a or b
BASIS: Article 278(g) [263(g)]
200) Having the two options, the DOLE Secretary may:
I. Assume jurisdiction over a labor dispute and at the same time certify it to the NLRC for
compulsory arbitration.
II. Initially assume jurisdiction over a labor dispute and later, on a different date, certify
the same labor dispute to the NLRC for compulsory arbitration
a) Both I and II
b) Only I
c) Neither I or II
d) Only II
RATIONALE: Having the two (2) options above, the DOLE Secretary may do the
following variations thereof:
(a) Assume jurisdiction over a labor dispute and at the same time certify it to the NLRC
for compulsory arbitration. This is illustrated by the case of PASVIL/Pascual Liner where,
on 21 February 1995, upon petition of private respondent PASVIL, then DOLE Secretary
Ma. Nieves R. Confesor, pursuant to Article 278(g) [263(g) of the Labor Code, assumed
jurisdiction over the dispute and certified it to public respondent NLRC for compulsory
arbitration.
(b) Initially assume jurisdiction over a labor dispute and later, on a different date, certify
the same labor dispute to the NLRC for compulsory arbitration, The case of Sulpicio Lines
best exemplifies this situation, On March 1,1994, petitioner union filed with the NCMB, a
notice of strike due to collective bargaining deadlock. On March 23, 1994, the DOLE
Secretary issued an Order assuming jurisdiction over the labor dispute pursuant to Article
278(g) (263(g) of the Labor Co. Meanwhile, on May 20, 1994, petitioner union filed with
the NCMB 2 second notice of strike alleging that respondent company committed acts
constituting ULP amounting to union busting, Provoked by respondent company’s alleged
unfair labor practice/s, petitioner union immediately conducted a stake vote. Thus, on May
20, 1994, about 9:30 o’clock in the morning, 167 rank- and-file employees, officers and
members of petitioner, did not report for work and instead gathered in front of Pier 12,
North Harbor at Manila. As a remedial measure, the DOLE Secretary issued an Order
dated May 20, 1994 directing the striking employees to return to work; and certifying the
labor to the NLRC for compulsory arbitration. On September 29, 1995, the NLRC issued
a Resolution declaring the strike of petitioner’s officers and members illegal, with notice
to respondent of the option to terminate their (petitioner’s officers) employment
Chan 10
1) Which of the following describes the nature of the power of the DOLE Secretary to
issue an assumption order?
a) Police power
b) Limited power
c) Absolute power
d) Executive power
BASIS: GR No. 145428, Trans Asia Shipping v. TASLI-ALU
2) True or False
I. The power granted to the DOLE Secretary to assume jurisdiction over national interest
labor disputes will not preclude the President to intervene at any time over such labor
dispute.
II. The President while possessed of the power of assumption has power to certify the
labor dispute to NLRC for compulsory arbitration
a) True, True
b) False, False
c) True, False
d) False, True
RATIONALE: Article 278 (g) 263(g), Labor Code No.30, NCMB Primer on Strike.
Statement II: The role of the President is confined to assuming jurisdiction, he has no
power to certify the labor dispute to the Commission
3) It is an error to view the _______________ order of the DOLE Secretary as a measure

to protect the striking workers from any retaliatory action from the employer because this
law was written as a means to be used by the State to protect itself from an emergency
or crisis.
a) Resolution
b) Assumption
c) Judgment
BASIS: PHILIPPINE SCHOOL OF BUSINESS ADMINISTRATION - MANILA, petitioner,

vs. NORIEL G.R. No. 80648 August 15, 1988; Sarmiento vs. Tuico, G.R. No. 75271-73
June 27, 1988; PAL vs. Drilon, G.R. No. 88210 January 23, 1991.
4) It is an error to view the assumption order of the DOLE Secretary as a measure to

protect the striking workers from any retaliatory action from the employer because this
law was written as a means to be used by the State to protect itself from an emergency
or crisis. It is not for labor, nor is it for ______________.
a) Employers
b) Capital
c) Management
BASIS: PHILIPPINE SCHOOL OF BUSINESS ADMINISTRATION - MANILA, petitioner,

vs. NORIEL G.R. No. 80648 August 15, 1988; Sarmiento vs. Tuico, G.R. No. 75271-73
June 27, 1988; PAL vs. Drilon, G.R. No. 88210 January 23, 1991.
5) Which of the following industries or services is not recognized as deemed

indispensable to the national interest?
a) Hospital sector
b) Electric Power Industry
c) Water Supply services
d) Small water services
BASIS: Section 16, Rule XXII, Book V of the Omnibus Rules Implementing the Labor
Code states that water supply services, to exclude small water supply services such as
bottling and refilling stations is recognized as deemed indispensable to the national
interest.
6) Who determines the specific industries indispensable to the national interest?
a) DOLE Secretary
b) President
c) Congress
d) DTI Secretary
RATIONALE: In the case of Phimco Industries, Inc. vs. Honorable Acting Secretary of
Labor Brillantes, the Court stated that the Labor Code vests in the Secretary of Labor the
discretion to determine what industries are indispensable to the national interest.
7) Serious misconduct implies that it must be of such _____ and aggravated character
and not merely trivial or ______.
a) grave, unimportant
b) crucial, important
c) dangerous, necessary
d) basic, unnecessary
BASIS: In the case of PNB v Velasco Gr. No. 113178, it states that serious misconduct
implies that it must be of such grave and aggravated character and not nearly trivial or
unimportant
8) Statement I: The charge for serious misconduct must not be a mere afterthought.
Statement II: Misconduct must relate to employer’s duties and must show his unfitness to
continue working for the employer.
Statement III: Series of irregularities, when put together may constitute serious
misconduct.
a) All of the statements are true

b) All of the statements are false
c) Only statement I is false
d) Only statement II is true
BASIS: The Labor Code provides some principles in serious misconduct and these are:
1. The charge for serious misconduct must not be a mere afterthought
2. Misconduct must relate to employer’s duties and must show his unfitness to continue
working for the employer
3. Series of irregularities, when put together may constitute serious misconduct
9) The following statements are correct regarding the rule on notice and hearing, except:
a) The discretion to assume jurisdiction may be exercised by the Secretary of

Labor and Employment without the necessity of prior notice or hearing given to
any of the parties.
b) The rationale for his primary assumption of jurisdiction can justifiably rest on his
own consideration of the exigency of the situation in relation to the national
interests.
c) It is well-established that the normal due process of notice and hearing is
required to be complied with before the DOLE Secretary.
d) The President of the Philippines shall be precluded from determining the
industries that, in his opinion, are indispensable to the national interest, and
may intervene only after the endorsement of the DOLE Secretary and
assuming jurisdiction.
BASIS: In CAPITOL MEDICAL CENTER, INC., v. HON. CRESENCIANO B. TRAJANO

the SC said that the President of the Philippines shall not be precluded from determining
the industries that, in his opinion, are indispensable to the national interest, and from
intervening at any time and assuming jurisdiction over any such labor dispute in order to
settle or terminate the same.
10) In national interest cases involving unresolved issues in the CBA negotiations, the
jurisdiction to assume over the labor dispute or certifying it to the NLRC is given to:
a) Labor Arbiter.
b) DOLE Secretary
c) President of the Philippines
d) Med Arbiter
BASIS: TABANGAO SHELL REFINERY EMPLOYEES ASSOCIATION vs. PILIPINAS

SHELL PETROLEUM CORPORATION.
11) Assumption or certification is valid even if made before conduct of strike or lockout.
I. The assumption or certification power may be exercised by the DOLE Secretary even
before the actual staging of a strike or lockout.
II. It is an extraordinary authority strictly limited to national interest cases and granted to
the Labor Arbiter or to the DOLE Secretary

c) only statement II is wrong
d) only statement I is wrong
RATIONALE: It is an extraordinary authority strictly limited to national interest cases and

granted to the President or to the DOLE Secretary, "which can justifiably rest on his own
consideration of the exigency of the situation in relation to the national interest".
12) The assumption of jurisdiction or certification to the NLRC of a labor dispute has the
following effects except:
I. Upon assumption /certification, the intended or impending strike or lockout is not

enjoined
II. If a work stoppage has already taken place at the time of the assumption/certification,
all striking or locked-out employees shall immediately return to work.
III. All cases between the same parties, except where the assumption for arbitration which
are already filed or may be filed and are relevant to or are proper incidents of the certified
case, are considered subsumed or absorbed by the assumed/certified case.
IV. The parties to an assumed/certified case, under pain of contempt, are required to
inform their counsels and the DOLE Secretary/NLRC Division concerned, as the case
may be, of all pending cases that are related or incident to the assumed/certified case
before it.
a) statement IV
b) statement I
c) none of the above
d) statement II
RATIONALE: Upon assumption /certification, the intended or impending strike or lockout

is automatically enjoined, notwithstanding the filing of any motion for reconsideration of
the assumption/certification order or the non-resolution of any such motion which may
have been duly submitted to the Office of the DOLE Secretary.
13) Are the parties under pain of contempt required to inform their counsel of all pending
cases related to the certified case before it?
a) Yes, the parties in an assumed or certified case, under pain of

contempt, are required to inform their counsel and the DOLE
Secretary/NLRC Division concerned as the case may be , of all pending
cases that are related or incidental to the assumed or certified case before
it.
b) Yes, the parties in an assumed or certified case, under pain of contempt are
required to inform the RTC and the DOLE Secretary concerned as the case may
be, of all pending cases that are related or incidental to the assumed or certified
case before it.
c) Yes, the parties in an assumed or certified case, under pain of contempt,
are required to inform their counsel and the Labor Arbiter or NLRC Division
concerned as the case may be , of all pending cases that are related or incidental
to the assumed or certified case before it.
d) Yes, the parties in an assumed or certified case, under pain of contempt,
are required to inform the judge concerned, as the case may be, of all pending
cases that are related or incidental to the assumed or certified case before it.
BASIS: Rule VIII, Section 3(b) , 2011 NLRC Rules of Procedure. (b) All cases between
the same parties, except where the certification order specifies otherwise the issues
submitted for arbitration which are already filed or may be filed, and are relevant to or are
proper incidents of the certified case, shall be considered subsumed or absorbed by the
certified case, and shall be decided by the appropriate Division of the Commission.
Subject to the second paragraph of Section 4 of Rule IV, the parties to a certified case,
under pain of contempt, shall inform their counsels and the Division concerned of all cases
pending with the Regional Arbitration Branches and the Voluntary Arbitrators relative or
incident to the certified case before it.
14) The other option of certification of the labor dispute to the NLRC, instead of directly
assuming jurisdiction thereover, simply means that is now the NLRC which shall hear and
decide the labor dispute so certified to it in the exercise of its original jurisdiction.
a) Optional cases
b) Certified labor dispute
c) Uncertified labor dispute
d) Alternate case
BASIS: Rule VIII, Sec 2, 2011 NLRC Rules of procedure. SECTION 2. CERTIFIED
LABOR DISPUTES. – Certified labor disputes are cases certified to the Commission for
compulsory arbitration under Article 263 (now 278) (g) of the Labor Code, as amended.
15) True or False
Statement 1: The NLRC cannot amend DOLE Secretary’s order.

Statement 2: The effects of certification are similar to those in assumed cases.
a) True, True
b) True, False
c) False, True
d) False, False
RATIONALE: Statement I: As the implementing body, the authority of the NLRC does not
include the power to amend secretary’s order.
Statement II: The authority of the NLRC to decide all issues related to the certified case
is broad enough as to include cases over which the law grants original and exclusive
jurisdiction to the labor arbiter.
16) The return-to-work order is _____ a statutory part of assumption or certification order.
a) Always
b) More often than not
c) Not
d) Sometimes
RATIONALE: Art 278 of the Labor Code.
The assumption of jurisdiction over a labor dispute or the certification of the same to the
NLRC for compulsory arbitration always co-exists with an order for workers to return to
work immediately for employers to readmit all of them under the same terms and
conditions prevailing before the strike or lockout. (University of San Agustin Employees’
Union v CA GR NO. 169632)
17) What is the correct course of action for the DOLE Secretary to undertake if at the time
the certification order was issued, no strike has been conducted by the union?
a) Issue certification order jointly with return to work order.

b) Issue certification order separately from return to work order.
c) Issue certification order only.
d) Issue return to work order only.
BASIS: Marcopper Mining V Brillantes (GR No. 119381, 11 March 1996)
18) Which of the following is a statutory part of a certification order issued by the DOLE
Secretary?
a) Cease and Desist Order

b) Bargaining For Members Only Agreement
c) Return to Work Order
d) Assumption Order
BASIS: Steel Corporation of the Philippines v SCP Employees Union (GR Nos 169829-
30, 16 April 2008)
19) Under this Article of the Labor Code, the concept of return-to-work contemplates
actual reinstatement and not payroll reinstatement.
a) Article 263 (e)

b) Article 263 (f)
c) Article 263 (g)
d) Article 263 (h)
RATIONALE: As a general rule, the concept of return-to-work under Article 263 (g)
contemplates actual reinstatement and not payroll reinstatement. This is in accordance
with the intent and spirit of Article 263 (g).
20) What is the purpose of Article 263 (g) in the concept of return-to-work?
a) To bring back the workers to their original work under the same terms and
conditions prevailing before the strike or lockout.
b) To bring back the workers to their original work under the new terms and
conditions prevailing after the strike or lockout.
c) To bring back the workers to their new work under the same terms and
conditions prevailing after the strike or lockout.
d) To bring back the workers to their new work under the new terms and conditions
prevailing before the strike or lockout.
RATIONALE: As a general rule, the concept of return-to-work under Article 263 (g)
contemplates actual reinstatement and not payroll reinstatement. This is in accordance
with the intent and spirit of Article 263 (g). The purpose of the law is to bring back the
workers to their original work under the same terms and conditions prevailing
before the strike or lockout. Payroll reinstatement, being temporary in nature, is
certainly not appropriate to implement a return-to-work order which is in the nature of a
permanent relief.
21) The actual reinstatement rule in Article 278 (g) 263 (g) is subject to exception. Which
of the following is the exception?
a) return to work
b) assumption order
c) payroll reinstatement
BASIS: The actual reinstatement rule in Article 278 (g) 263 (g) is subject to exception
which is payroll reinstatement. University of Sto. Tomas vs. NLRC.
22) In the case of University of Sto. Tomas vs. NLRC the striking teacher were entitled to
return to work order but the university could not reinstate them since in would be
impracticable and detrimental to the student to change teacher around the time of final
examination but the SC declared that the teachers are entitled to __________.
a) Actual Reinstatement
b) Payroll Reinstatement
c) Payroll Reinstatement and Actual Reinstatement
d) Actual Reinstatement may take effect at the start at the second semester
of the school year.
BASIS: University of Sto. Tomas vs. NLRC, GR. No. 89920, Oct. 18, 1990
23) The general rule in implementing the return-to-work order is actual reinstatement.
Payroll reinstatement may be made in lieu of actual reinstatement under which rule?
a) Special circumstances rule

b) Estoppel
c) Globe doctrine
d) Protection to labor clause
BASIS: University of Immaculate Conception Inc. v DOLE Secretary
24) In which scenario would the special circumstances rule apply where payroll
reinstatement in lieu of actual reinstatement is justified?
Scenario 1: It is nearing the end of the semester and around the time of final examinations
where the change in faculty with the dismissed faculty members would adversely affect
and prejudice the students.
Scenario 2: Where the confidential nature of the positions of the dismissed employees
would be impractical and would exacerbate the situation.
a) Both scenarios
b) None of the scenarios
c) Scenario 1 only
d) Scenario 2 only
BASIS: UST v. NLRC; University of Immaculate Conception Inc. v DOLE Secretary
25) As an exception to the rule, payroll reinstatement must rest on:
a) Special circumstances that render actual reinstatement impracticable or

otherwise not conducive to attaining the purposes of the law
b) Ordinary circumstances that render actual reinstatement impracticable or
c) Prevailing circumstances that render actual reinstatement impracticable or
d) Unknown circumstances that render actual reinstatement impracticable or
RATIONALE: In ordering payroll reinstatement in lieu of actual reinstatement, then Acting

Secretary of Labor Jose S. Brillantes said: “Anent the Unions Motion, we find that
superseding circumstances would not warrant the physical reinstatement of the twelve
(12) terminated employees, Hence, they are hereby ordered placed under payroll
reinstatement until the validity of their termination is finally resolved. “As an exception to
the rule, payroll reinstatement must rest on special circumstances that render actual
reinstatement impracticable or otherwise not conducive to attaining the purposes of the
law”.
26) The peculiar circumstances obtaining in the 2008 case of_____________, likewise
validated the DOLE Secretary’s decision to order payroll reinstatement instead of actual
reinstatement. It is obviously impracticable for the hotel to, actually reinstate the
employees who shaved their heads or cropped their hair’ in the light of the deadlock in
the CBA negotiation which led the union to file a notice of strike, because this was exactly
the reason why they were prevented from working in the first place.
a) Republic v. CA
b) Dusit Hotel Nikko
c) Miranda Case
d) Estrada Case
27) Which of the statements is correct?
I. Return-to-work order is compulsory in character and not offensive to involuntary

servitude.
II. Returning to work on the part of the worker is not a matter of option or voluntariness
but of obligation.
a) Both are correct

b) I is correct
c) II is correct
d) Neither I or II is correct.
BASIS: Marcopper Mining Corporation v. Brillantes, G.R No. 119381, March 11, 1996.
28) Return-to-work order is in character and not offensive to .
a) compulsory; involuntary servitude

b) not compulsory; servitude
c) voluntary; involuntary servitude
d) mandatory; servitude
RATIONALE: The worker must return to work to his job together with his co-workers so
that the operation of the company can be resumed and it can continue serving the public
and promoting its interest. (Sarmiento v. Tuico) This is the real reason such return can be
compelled.
29) Hen Lin is the president of the employees’ union of Bao Bank. Hen Lin and the other
officers complied with the procedural requisites before conducting a strike. Because of
the industry involved, the DOLE Secretary assumed jurisdiction and issued a return-to-
work order. Hen Lin and the other strikers refused, saying that their strike was perfectly
legal. What is the effect of disobeying the return-to-work order?
a) The strike by Hen Lin and the other union members is rendered illegal
b) The management of Bao Bank still may not fill the positions occupied by the
striking workers pending the determination of the legality of the strike
c) Hen Lin and the other striking workers may claim payment for work because
they are still legally employed by Bao Bank
d) Disobeying the return-to-work order has no effect because such order is only
permissive and compliance would violate the right against involuntary servitude
RATIONALE: The disregard of the return-to-work order would render the strike illegal.
The issue of the legality of the strike is immaterial in enforcing the return-to-work order of
the DOLE Secretary.
30) Hen Lin is the president of the employees’ union of Bao Bank. Hen Lin and the other
officers complied with the procedural requisites before conducting a strike. Later, Hen
Lin and the other striking workers voluntarily returned to work. Which of the following
statements is false given the circumstances?
a) The voluntary desistance of the employees bars Bao Bank from

proceeding against striking employees who have committed illegal acts
during the strike
b) The voluntary desistance of Hen Lin and the other striking workers is their
personal act and is not considered an act of the union
c) The voluntary desistance does not render the issue of legality of the strike moot
if illegal acts were conducted during the strike
d) The voluntary desistance of Hen Lin and the other employees is not considered
a waiver of their demands.
RATIONALE: The voluntary return to work of the striking employees should not be
considered as a waiver of their original demands. Such desistance cannot be used
against the union. The voluntary return to work of the employees cannot likewise be used
as a defense by the employees who have committed illegal acts during the strike.
31) Statement 1: A return-to-work order is immediately effective and executory

notwithstanding a filing of a motion for reconsideration.
Statement 2: A return-to-work order must be strictly complied with even during the
pendency of any petition questioning its validity.
a) Statement 1 is correct.
b) Statement 2 is correct.
c) Both statements are correct.
d) Both statements are incorrect.
BASIS: Telefunken Semiconductors Employees Union-FFW v. Secretary of Labor and

Employment, GR Nos. 122743 and 127215, December 12, 1997; Philcom Employees
Union v. Philippine Global Communications, GR No. 144315, July 17, 2006
32) Extension of return-to-work order and the admission of all striking workers by the
company, _____ in any way be considered waiver that the ________ can use to negate
liability for their illegal actions of defying the first return-to-work order and for commission
of illegal acts in the course of the strike.
a) Can; union members

b) Cannot; union members
c) Can; union officers
d) Cannot, union officers
BASIS: Bagong Pagkakaisa ng Manggagawa ng Triumph International v. SOLE, GR Nos.

167401 and 167407, July 5, 2010.
33) Statement 1: As a general rule, strikes and lockouts that are validly declared, enjoy
the protection of law and cannot be enjoined unless illegal acts are committed or
threatened to be committed in the course thereof.
Statement 2: This policy does not apply if the strike appears to be illegal in nature
Statement 3: The rationale for this policy is the protection extended to the right to strike
under the Constitution and the law.
a) Statement 1 is not correct

b) Statement 2 is not correct
c) Statement 3 is not correct
d) All of the statements are correct
e) All of the statements are not correct
RATIONALE: Statement 2 is not correct because the policy applies even if the strike
appears to be illegal in nature. This policy is basically treated as a weapon that the law
guarantees to employees for the advancement of their interest and for their protection.
/Caltex Refinery Employees Association v. Lucero, GR No. L-15338, April 28, 1962.
34) In this case, the Supreme Court ruled that injunction may be issued not only against
the commission of illegal acts in the course of the strike but against the strike itself.
a) San Miguel Corporation v. NLRC

b) Caltex Refinery Employees Association v. Lucero
c) University of Sto. Tomas v. NLRC
d) Scholastica’s College v. Torres
BASIS: In San Miguel Corporation v. NLRC, GR No. 119293, June 10, 2003, the notice
of strike filed by the union has been converted into a preventive mediation case. Having
been so converted, a strike can no longer be staged based on said notice. Upon such
conversion, the legal effect is that there is no more notice of strike to speak of. Article
279(a) [264(a)] of the Labor Code explicitly states that a declaration of strike without first
having filed the required notice is a prohibited activity, which may be prevented through
an injunction in accordance with Article 266 [254] of the same Code.
35) In this case, an injunction was allowed against the strike which was staged to compel
the employer to ignore the law. The reason is that when trade unionism and strikes are
used in violation of the law, misuse thereof can be the subject of judicial intervention.
a) San Miguel Corporation v. NLRC

b) IBM v. NLRC
c) Bulletin Publishing v. Sanchez
d) ALU-TUCP v. Borromeo
BASIS: Bulletin Publishing v. Sanchez (G.R. No. 74425, October 7, 1996).
36) As a general rule, this cannot be issued against the conduct of picketing by the
workers.
a) strike
b) lockout
c) injunction
d) picketing
RATIONALE: As in accordance to the ruling in the case of Molera v. CIR (G.R. No. L-
1340, October 13, 1947, 79 Phil 345).
37) As a general rule, injunction cannot be issued against the conduct of picketing by the
workers, exception:
a) Where picketing is carried out through the use of illegal means.
b) Where picketing involves the use of violence and other illegal acts.
c) Where picketing affects the rights of third parties and injunction becomes
necessary to protect such rights.
d) All of the above stated.
BASIS: Mortera v CIR, G.R. No. L-1340, October 13, 1947, 79 Phil. 345. As a general
rule, injunction cannot be issued against the conduct of picketing by the workers. Under
our constitutional set up. picketing is considered part of the freedom of speech duly
guaranteed by the Constitution. However, excepted from this legal proscription are the
following situations:
(1) Where picketing is carried out through the use of illegal means.
(2) Where picketing involves the use of violence and other illegal acts.
(3) Where picketing affects the rights of third parties and injunction becomes necessary
to protect such rights.
38) Under this rule, the third-party employers who have no employer-employee
relationship with the picketing strikers, may apply for injunction with the regular courts to
enjoin the conduct of the picket:
a) Featherbedding Rule
b) Blue-Sky Rule
c) Yellow Dog Rule
d) Innocent Bystander Rule
RATIONALE: Because of the absence of such employer-employee relationship, the

NLRC cannot entertain such application for injunction from "innocent bystanders".
39) Which of the following is not among the relevant topics included in termination by the
employer?
a) Just causes
b) Authorized causes
c) Twin requirement of notice and hearing to constitute due process
d) Equal protection of the laws as between union and employee
RATIONALE: Termination by employer, to be legal, must be due to just causes and
authorized causes enumerated under the Labor Code. In addition, due process must be
observed, as in the twin requirement of notice and hearing, to consider the termination by
the employer lawful.
40) Which of the following is not a kind of employment?
a) Regular
b) Casual
c) Seasonal
d) Rotational
BASIS: Choice (d) is not among those discussed in Article 280 of the Labor Code.
41) The following are the tests to determine existence of employer-employee

relationship, except:
a) Selection and engagement of employees

b) Payment of wages or salaries
c) Exercise of power of dismissal
d) Supervision of employees
BASIS: Philippine Global Communications Inc. v. De Vera, GR No. 157214, June 7,

2005
42) What is the other term for "control test"?
a) Boss Test
b) Superior Test
c) Under Test
d) Means-and-Method Control Test
RATIONALE: Chapter 6: Post Employment; A. Employer-Employee Relationship, 1.

Tests To Determine Existence of Employer-Employee Relationship.
43) This test is an inquiry into the putative employer’s power to control the employee with
respect to the means and methods by which the work is to be accomplished.
a) Legal rights and benefits compliance test

b) Direct relation to principal's business test
c) Substantial capital or investment test
d) Control test
RATIONALE: Recent jurisprudence adds another test, applied in conjunction with the
control test, in determining the existence of employment relations. This is the two-tiered
test enunciated in the 2006 cases of Francisco v. NLRC, which involves an inquiry into
the following:
(1) The putative employer’s power to control the employee with respect to the means and
methods by which the work is to be accomplished [control test]; and
(2) The underlying economic realities if the activity or relationship [economic reality test].
44) This is an inquiry into the underlying economic realities of the activity or relationship.
a) Economic control test

b) Substantial capital or investment test
c) Direct relation to principal's business test
d) Legal rights and benefits compliance test
RATIONALE: Recent jurisprudence adds another test, applied in conjunction with the
control test, in determining the existence of employment relations. This is the two-tiered
test enunciated in the 2006 cases of Francisco v. NLRC, which involves an inquiry into
the following:
(1) The putative employer’s power to control the employee with respect to the means and
methods by which the work is to be accomplished [control test]; and
(2) The underlying economic realities if the activity or relationship [economic reality test].
45) Under the ______________________, the proper standard of economic dependence

is whether the worker is dependent on the alleged employer for his continued employment
in that line of business.
a) economic reality test

b) control test
c) dependency test
d) independence test
BASIS: Halferty vs. Pulse Drug Company, 821, F 2d, 261 (5th Cir. 1987)
46) The _____-tiered test provides a framework of analysis which would take into
consideration the totality of circumstances surrounding the true nature of the relationship
between the parties.
a) one
b) two
c) three
d) four
BASIS: Francisco vs. NLRC, G.R. 170087, August 31, 2006
47) Which among these is not a principle on employer-employee relationship (EER)?
a) There is no uniform test prescribed by law or jurisprudence to determine the

existence of EER.
b) A retainer fee arranges does not give rise to employment relationship.
c) Only cases from an EER are cognizable by the labor courts.
d) A written contract is necessary for the creation and validity of the EER.
RATIONALE: An EER is contractual in nature; it may be an oral or written contract.

(Compania Maritima v. De Hio, G.R. No. L-10675, April 29, 1960)
48) Lee’s employment contract states that his employer will treat him as an employee
only after a year of service. Is there still an employer-employee relationship within that
year?
a) No, their relationship is contractual, so Lee will only be considered an employee

after a year.
b) No, Lee already consented to the term by signing it.
c) Yes, but his official title would not be ‘employee’.
d) Yes, the employment status of Lee is defined and prescribed by law and
not by the employment contract.
RATIONALE: Stipulation in a contract is not controlling in determining existence of the

relationship. The employment status of a person is defined and prescribed by law and not
by what the parties say it should be. (Chavez v. NLRC, G.R. No. 146530, Jan. 17, 2005)
49) The following are the kinds of employees except:
a) Regular employees
b) Project employees
c) Seasoned employees
d) Casual employees
e) fixed-term employees
BASIS: Article 295 of the Labor Code and Innodata Knowledge Services, Inc. vs Inting
et.al., G.R. No. 211892, December 06, 2017
50) Statement I: Regular employees or those who have been engaged to perform
activities which are usually necessary or desirable in the usual business or trade of the
employer.
Statement II: Project employees or those whose employment has been fixed for a specific
project or undertaking, the completion or termination of which has been determined at the
time of the engagement of the employee.
Statement III: Seasonal employees or those who work or perform services which are
seasonal in nature, and the employment is for the duration of the project
Statement IV: Casual employees or those who are also regular, project or seasonal
employees
a) All statements are correct

b) Only Statements I and II are correct
c) Only Statements III and IV are correct
d) Only Statement I is correct
BASIS: Article 295 of the Labor Code and Innodata Knowledge Services, Inc. vs Inting
et.al., G.R. No. 211892, December 06, 2017
51) __________________ are placed on a higher plane than ________________ since

these are imbued with public interest, and therefore subject to the
___________________ of the State.
a) Ordinary contracts; employment contracts; power of taxation

b) CBA; employment contracts; power of eminent domain
c) Labor contracts; ordinary contracts; police power
d) Lease contracts; contracts of service; regulatory powers
RATIONALE: Labor contracts, unlike ordinary contracts, are imbued with public interest,
and are subject to the police power of the State.
52) Default employment is our jurisdiction is _______________ employment.

a) Casual
b) Regular
c) Contractual
d) Special
RATIONALE: If there is reasonable doubt as to the status of employment, the default

employment should always be regular because the law presumed regularity of
employment.
53) If there is a reasonable doubt as to the status of employment, the default employment
should always be ______.
a) casual
b) seasonal
c) project or fixed-term
d) regular
RATIONALE: It is the law itself which presumes the regularity of employment, thus, it
follows that an employee is deemed regular by operation of law.
54) Written or oral agreement is _______ to determine regularity of employment.
a) indispensable
b) optional
c) obligatory
d) immaterial
RATIONALE: The facts established determines the regularity of employment not the
written or oral agreement stating that the employee is not regular.
55) True or False.
Statement I: The act of hiring and re-hiring the employees over a period of time without
considering them as regular employees proves bad faith on the part of the employer.
Statement II: Manner and method of payment of wage or salary is immaterial to the issue
of whether the employee is regular or not.

d) Both statements are false.
BASIS: Bustamante vs. NLRC, GR No. 111551, March 15, 1996; Columbus Philippines
Bus Corporation vs. NLRC, GR No. 114858-59, September 7, 2001; Lambo vs NLRC,
GR No. 75008, August 23, 1993.
56) True or False.
Statement I: There is a need for a declaration or appointment paper to make one a regular
employee.
Statement II: The doctrine of adhesion applies to employment contracts.
Statement III: The rule on the interpretation or construction of contracts of adhesion does
not apply when the stipulations contained in a contract are not obscure or ambiguous.
a) Only Statement I & II is true.

b) Only Statement II & III is true.
c) All statements are true
d) All statements are false.
RATIONALE: There is NO need for a declaration or appointment paper to make one a

regular employee.
Leveriza vs. Intermediate Appellate Court, GR No. L-66614, January 25, 1988; Article
1377 of the Civil Code; Powell Industrial Corp vs. Hon. CA, GR No. 167754, March 7,
2007.
57) 629 No question submitted
59) Probationary employment shall not exceed ______ from the date the employee
started working, unless it is covered by an apprenticeship agreement stipulating a longer
period.
a) 12 months
b) 6 months
c) 3 months
d) 1 month
BASIS: Article 296 [281], Labor Code
60) During the probationary period, the employer is given the opportunity to observe the
___, ____, ____, and ____ of the probationary employee while the latter seeks to prove
to the employer that he has the qualifications to meet the reasonable standards for
permanent employment.
a) skill, competence, attitude and fitness

b) skill, capability, attitude and health
c) skill, competence, perspective and fitness
d) skill, capability, attitude and fitness
BASIS: De la Cruz, Jr. v. NLRC, G.R. No. 145417, Dec. 11, 2003
61) In _____________employment, the parties mutually intend to make their relationship

regular after the lapse of the period; while in _____________ employment, no such
intention exists and the relationship automatically terminates at the expiration of the
period.
a) seasonal; project term

b) casual; ad interim term
c) regular; temporary term
d) probationary; fixed-term
RATIONALE: The distinction between probationary employment and fixed-term

employment lies in the intention of the employer and employee. Both employments
involve fixed period in term of duration of employment.
62) Where the first six (6) months is probationary during which the employer can terminate
the employee’s services by serving written notice, or whatever date within the six-month
period as the employer may determine. After working for six (6) months, the employee
was made to sign 3-month probationary employment and an extended 3-month
probationary employment until the end of the 1-year fixed term. The Supreme Court ruled
that:
a) Probationary period cannot be shortened.

b) Probationary period cannot be stipulated within the fixed period of
employment.
c) Probationary period can be extended.
d) Probationary period can be fixed.
BASIS: In Villanueva v. NLRC, and Servidad v. NLRC, that at the lapse of the 1-year, the
employee was dismissed from the service on the ground of alleged termination of contract
of employment. The Supreme Court declared the employees as regular employees and
struck down the employment contracts.
63) This statutory ground has been defined as the termination of employment initiated
by the employer through no fault of the employees and without prejudice to
the latter, resorted by management during periods of bus iness recession,
industrial depression, or seasonal fluctuations; or during lulls occasioned by
lack of work or orders, shortage of materials; or considerable reduction in the
volume of the employer's business, conversion of the plant for a new production
program or the introduction of new methods or more efficient
machinery, or of automation.
a) Retrenchment
b) Lay-off
c) Misconduct
d) Closure of business
BASIS: Anabev. Asian Construction, GR No. 183233, Dec.23, 2009.
64) What is the most singular distinctive requisite of retrenchment?
a) There should be proof of actual losses or possible imminent losses that

would justify termination of employment.
b) There must be loss in profit.
c) The business must have been in a state of net loss for the previous year.
RATIONALE: The unique requisite for this ground is that there should be proof of actual
losses or possible imminent losses that would justify termination of employment. This is
the most singular distinctive requisite of retrenchment. This in fact is the only statutory
ground in Article 298 [283] which requires this kind of proof. As stressed earlier, the
grounds of installation of laborsaving device and redundancy do not impose this
requirement. The other ground of closure or cessation of business operations may be
resorted to with or without losses. (Precision Electronics Corporation v. NLRC, G.R. No.
86657, Oct. 23, 1989)

I) An employee who is allowed to work even for a day after the probationary period is
considered a regular employee.
II) Employment is deemed regular if the employment contract has no stipulation on
probationary period;
II) Employee is deemed regular absent any written contract to prove probationary
employment.
a) Statements I and II only

b) Statements I and III only
c) Statements II and III only
d) All of the Statements are true
BASIS: Article 296 of the Labor Code.
66) Within the limited 6-month probationary period, probationary employees are entitled
to security of tenure notwithstanding their limited tenure and nonpermanent status.
Hence, during their probationary employment, they cannot be dismissed except:
a) For a just cause; or

b) For authorized cause; or
c) For a Valid cause
RATIONALE: Statement c. When the probationary employee fails to qualify as a regular

employee in accordance with reasonable standards made known by the employer to the
employee at the start of the employment.
Sections 2 (b]and 6 [c], Rule I. Book VI, Rules to Implement the labor Code, as amended:
See also Cathay Pacific Airways, Inc. v. Marin, G.R. No. 148931, Sept 12,2006.
67) The following are the requisites of the ground of failure to qualify a regular employee,
except:
a) the employer must communicate to the employee that he is being hired in a

probationary basis
b) the employer must convey to the probationary employee the reasonable
standards to qualify for regularization
c) all of the choices
RATIONALE: Letters a and b are both among the requisites of the ground of failure to
qualify a regular employee. Hence, neither is an exception.
68) The probationary status of the newly- hired employee must be communicated to him
__ to the commencement of his employment.
a) prior
b) after
c) during
RATIONALE: A newly- hired employee who is employed in a probationary status shall

be informed of such prior to the commencement of his employment.
69) This doctrine applies if dismissal of probationary employee for a just cause is without
due process.
a) Agabon doctrine
b) Jaka doctrine
c) Alabang doctrine
d) Navale doctrine
BASIS: Agabon v. NLRC, GR No. 158693
70) Project employees are those hired:
1. For specific project or undertaking.

2. The completion or termination of such project has been determined at the time of their
engagement.
a) I only
b) II only
c) Both I and II
d) Neither I nor II
BASIS: Article 295 [280], Labor Code

73) In the case of PLDT vs. Ylagan, what kind of duties were not considered by the
Supreme Court as distinct, separate and identifiable from the usual undertakings of the
PLDT?
a) accounting duties
b) management duties
c) hiring and firing duties
RATIONALE: In the case of PLDT vs. Ylagan, accounting duties were not considered
by the Supreme Court as distinct, separate and identifiable from the usual undertakings
of the PLDT
74) In the case of GMA Network, Inc. vs. Pabrigo, what jobs were not considered by the
Supreme Court as identifiably distinct or separate from the undertakings of the company?
I. Manning of Technical Operations Center.

II. Acting as Transmitter/VTR men.
a) Both I and II
b) I only
c) None of the choices
d) II only.
RATIONALE: In the case of GMA Network, Inc. vs. Pabrigo, Manning of Technical
Operations Center; Acting as Transmitter/VTR men; Acting as Maintenance staff; and
Acting as Cameramen were clearly within the regular or usual business of the employer
and are not identifiably distinct or separate from the undertakings of the company.
75) Statement 1 : A true project employee should be assigned to a project which begins
and ends at determined or determinable times and be informed thereof at the time of
hiring.
Statement 2 : An employee become regular employee by employer's act of assigning
them, even for a short moment, to another project.

c) statement 1 is false
d) statement 2 is false
BASIS: Goma v. Pamplona Plantation, Incorporated, GR No. 160905, July

4,2006; Innodata Knowledge Services, Inc. v. Inting, GR No. 2118, Dec. 6,2017
76) It is a test of whether or not the project employees were assigned to carry out a
specific project or undertaking, the duration and scope of which were specified at the time
the employees were engaged for that project.
a) litmus test of project employment

b) bloomberg test
c) employer-employee relationship test
d) all of the choices
BASIS: The litmus test of project employment, as distinguished from regular employment,
is whether or not the project employees were assigned to carry out a specific project or
undertaking, the duration and scope of which were specified at the time the employees
were engaged for that project.
77) Statement 1: Project employment and fixed-term employment are not the same and
thus cannot be interchangeably characterized.
Statement 2: The decisive dominant in fixed term employment is not the activity that the
employee is called upon to perform but the day certain agreed upon by the parties for the
commencement and termination of the employment relationship.
a) Both statements are true

b) Only statement 1 is true
c) Only statement 2 is true
BASIS: Innodata Knowledge v Inting
78) Which of the following is true?
a) A regular employee cannot be at the same time a project employee

b) A regular employee can be a project employee at the same time
c) Regular employee is consistent with a project employee
BASIS: Magcalas v NLRC
79) It refers to a group of workers from which an employer draws the workers it deploys
or assigns to its various projects or any phase/s thereof.
a) Pool work
b) Work pool
c) Worker’s group
d) Group work
BASIS: Work Pool Principle- page 640 Labor Law Reviewer, Chan
80) Members of a work pool may consist of:
I. Project employees
II. Non-project employees
III. Probationary employees
IV. Regular Employees
V. Seasonal Employees
a) I only
b) I and II only
c) III, IV, and V only
d) III and IV only
BASIS: Work Pool Principle- page 640 Labor Law Reviewer, Chan
81) In project employment cases, the duration of the project provided in the contract of
project employment should pertain to:
a) Duration of the employment contract

b) Duration of the specific project or undertaking
c) Length of service of a project employee
RATIONALE: The duration of the project provided in the contract of project employment
should not pertain to the duration of the employment contract but to the duration of the
specific project or undertaking which must be reasonably determinable at the time of
hiring of the project employee. Innodata knowledge services Inc v. Inting GR No. 211892
December 6, 2017
82) The absence of a day certain in a project employment contract means that:
a) It is subcontracting agreement
b) The employee is a regular employee
c) The employer may terminate the employee anytime
RATIONALE: For purposes of determining duration, there must be a day certain in the
project employment contract the absence of which means the employee is a regular
employee. This is so because a project employee assigned to a project which begins and
ends at determined or determinable times. Dacuital v. LM Camus Engineering Corp GR
No. 176748 September 1, 2010.
83) Statement I: A written project employment contract is an indispensable requirement.

Statement II: Failure to present contract of project employment means that the employee
is regular.
Statement III: Project employees should be informed of their status as well as the duration
and other details of their engagement.
a) All statements are true

b) All statements are false
d) Only Statement II is true
BASIS: 1) Hanjin Heavy Industries and Construction Co. Ltd v. Ibanez (GR No. 170181,
June 26, 2008)
2) Omni Hauling Services Inc. v, Bernardo Bon (GR No. 199388, September 03, 2014)
84) Statement I: The simple fact that the employment as project employees has gone
beyond 1 year does not detract from their status as project employees.
Statement II: One may start as a project employee but he may later become a regular
employee if his services were extended indefinitely.

BASIS: 1) Concrete Solutions, Inc v Cabusas (GR No. 177812, June 19, 2013)
2) Dacuital v. LM Camus Engineering Corp (GR No. 176748, Sept 1, 2020)
85) What is the status of a contract of employment on a “project-to-project basis” where

the employer and employee dealt with each other on more or less equal terms with no
moral dominance exercised by the employer?
a) Voidable
b) Void
c) Valid
d) Rescissible
BASIS: Salinas v. NLRC, GR No 116571
86) When may a project employee acquire the status of a regular employee?
I. There is a continuous rehiring of the project employee even after cessation of a project
for the same tasks or nature of tasks.
II. The tasks performed by the alleged project employee are vital, necessary, and
indispensable to the usual business or trade of the employer.
a) Situation 1
b) Situation 1 and 2 concur
c) Situation 2
d) In either situation
BASIS: Maraguinot Jr. v. NLRC ,GR No 120969
87) Project employees enjoy _____________ only during the term of their project
employment.
a) Security of tenure
b) Bonuses
c) Benefits
BASIS: G.R. No. 116781 September 5, 1997, TOMAS LAO CONSTRUCTION, LVM
CONSTRUCTION CORPORATION, THOMAS and JAMES DEVELOPERS (PHIL.),
INC., petitioners, vs. NATIONAL LABOR RELATIONS COMMISSION, MARIO O.
LABENDIA, SR., ROBERTO LABENDIA, NARCISO ADAN, FLORENCIO GOMEZ,
ERNESTO BAGATSOLON, SALVADOR BABON, PATERNO BISNAR, CIRPRIANO
BERNALES, ANGEL MABUHAY, SR., LEO SURIGAO, and ROQUE MORILLO,
respondents.
88) Project employees have presumably become _____________ if they are allowed to
work beyond the completion of the project or any phase thereof to which they were
assigned.
a) Permanent employees
b) Regular employees
c) Managers
BASIS: G.R. No. 211892, INNODATA KNOWLEDGE SERVICES, INC., Petitioner vs.
SOCORRO D'MARIE T. INTING, ISMAEL R. GARAYGAY, EDSON S. SOLIS, MICHAEL
A. REBATO, JAMES HORACE BALONDA, STEPHEN C. OLINGAY, DENNIS C. RIZON,
JUNETH A. RENTUMA, HERNAN ED NOEL I. DE LEON, JR., JESS VINCENT A. DELA
PENA, RONAN V. ALAMILLO, ENNOH CHENTIS R. FERNANDEZ, FRITZ J.
SEMBRINO, DAX MATTHEW M. QUIJANO, RODOLFO M. VASQUEZ, MA. NAZELLE
B. MIRALLES, MICHAEL RAY B. MOLDE, WENDELL B. QUIBAN, ALDRIN O.
TORRENTIRA, and CARL HERMES CARSKIT, Respondents.
89) Who among the following has work or service to be performed that is seasonal in
nature and that the employment is for the duration of the season?
a) Seasonal employee
b) Project employee
c) Regular employee
d) Term employee
BASIS: Article 290 (280) of the Labor Code.
90) Who has the burden of proof in the termination of project employment?
a) Employee
b) Employer
c) Labor Union
d) Labor Arbiter
RATIONALE: In the case of Southern Cotabato Development and Construction, Inc. vs.
NLRC, the court held that the burden of proving that an employee was dismissed with just
cause rests upon the employer. In respect of project employees, the employer bears the
same burden if the former are dismissed before the completion of the project, or of the
phases thereof for which their services were contracted.
91) In the case of ________ it was ruled that it devolves upon the employer the obligation
to obtain medical certificate from a competent public health authority that the employee’s
disease is at such stage or of such nature that it cannot be cure within 6 months
a) Tan v NLRC Gr. No. 116807 April 14, 1997

b) ATCI v CA supra
c) San Miguel Company v Hon. Deputy Minister of Labor
d) Duterte V Kingswood Company Gr No. 4324 October 4, 1996
BASIS: In the case of Tan v NLRC Gr. No. 116807 April 14, 1997 it was ruled that it
devolves upon the employer the obligation to obtain medical certificate from a competent
public health authority that the employee’s disease is at such stage or of such nature that
it cannot be cure within 6 months
92) Statement I: Due process in termination due to disease is similar o due process for
just cause termination.
Statement II: The employer must furnish the employee 2 written notices.
Statment III: The employee must not be given the opportunity to answer and be heard
a) Statement III is false

b) All of the statements are true
c) All of the statements are false
d) Only Statement I is true
Basis: In the case of Sy v CA, it was ruled that due process in termination due to disease
is similar to due process for just cause termination and the employer must furnish the
employee 2 written notices
93) Which of the following statement is correct regarding fixed-term employment?
a) The fact that an employee is engaged to perform activities that are usually
necessary or desirable in the usual trade or business of the employer does
not preclude the fixing of term of employment.
b) When an employee’s nature of work is necessary or desirable in the usual trade
or business of the employer, the employee becomes a regular worker regardless
of a fixed-term employment agreement.
c) Employees who perform activities that are necessary or desirable in the usual
trade or business of the employer cannot be a subject of a fixed-term employment.
d) A fixed-term employment impairs the right of an employee to security of tenure,
if the employee’s nature of work is necessary or desirable in the usual trade or
business of the employer.
BASIS: Philippine Village Hotel v. NLRC
94) I. Once an employee becomes a regular employee, they are entitled to security of
tenure and may not be circumvented in a subsequent contract that their employment is
one with a fixed term.
II. For as long as it was the employee who requested that the contract have a fixed term,
the validity of the contract will be upheld.
III. Where from the circumstances, it is apparent that the periods have been imposed to
preclude acquisition of tenurial security by the employee, they should be struck down.
IV. It is not a legal impossibility that an employee can be a regular employee with a fixed
term.
a) only I and II are correct

b) only I and III are wrong
c) only III and IV are correct
d) I, II, III, and IV are correct
BASIS: Fuji v. Espiritu and Maria Water Co. Inc. v. Pena
95) The scheme of the employer in hiring workers on a uniformly fixed 5-month basis and
replacing them upon the expiration of their contracts with other workers with the same
employment status circumvents their right to security of tenure.
a) 555 Doctrine
b) 5-month doctrine
c) 55 doctrine
d) floating doctrine
RATIONALE: 555 doctrine is the so called scheme of the employer in hiring workers on
a uniformly fixed 5-month basis and replacing them upon the expiration of their contracts
with other workers with the same employment status circumvents their right to security of
tenure.
96) Which of the following principles on fixed-term employment is not correct?
I. Employees is deemed regular if contract failed to state the specific fixed period of
employment.
II. Employees allowed to work beyond fixed term become regular employees.
III. Charged for misconduct or other wrongful acts or omissions are relevant only if
termination is due to expiration of fixed term
a) all statements
b) statement II
c) statement III
RATIONALE: Charged for misconduct or other wrongful acts or omissions are relevant
only in termination prior to expiration of the term. They are not relevant if termination
is due to expiration of fixed period.
97) Employment on __________ basis may ripen into regular employment.
a) As a dispute arises
b) As the rule provide
c) As the need arises
d) As an employer state
BASIS: Philips Semiconductors Inc., vs. Fadriquela, GR No. 141717, April 14,2004.
98) OFWs _________ acquire regular employment because they can only be engaged
on a fixed term basis.
a) Can
b) Temporarily
c) Permanently
d) Can never
BASIS: Milares vs NLRC; GR No. 110524, July 29,2002
99) This refers to any person who offers or renders personal service to watch or secure
a residence, business establishment, building, compound or any other area or property;
or inspects, monitors, or performs body check or searches of individuals or baggage or
other forms of security inspection.
a) Security Guard
b) Domestic Worker
c) Doorman
d) Custodian
BASIS: Section 2 Department Order 150 Series of 2016
100) The Department Order No. 150 Series of 2016, entitled “Revised Guidelines
Governing the Employment and Working Conditions of Security Guards and other Private
Security Personnel in Private Security Industry” was issued by the DOLE Secretary on
a) February 9, 2016
b) February 6, 2016
c) September 6, 2016
d) June 9, 2016
BASIS: Department Order No. 150 Series of 2016
101) Which of the following is considered as synonymous with Private Security Agency?
a) Security Service Contractor

b) Social Service Contractor
c) Principal Security Contractor
d) Integral Security Contractor
BASIS: Department Order No. 150, Section 2(f), Series of 2016)
102) Which of the following refers to any individual, company, cooperative, or

establishment, including GOCCs who or which puts out a security/or detective job,
service, work to a private Security Service Contractor (SSC)?
a) Employer
b) Principal
c) Contractor
d) Independent Contractor
BASIS: Department Order No. 150, Section 2(h), Series of 2016)

103) It is the direct employer of its security guards and other private security personnel
on duty detail to a principal or client under a Service Agreement.
a) Security Service Contractor

b) Private Security Agency
c) Both A & B
RATIONALE: Security Service Contractor is synonymous with Private Security Agency

which refers to any person, association, partnership, firm, or private corporation engaged
in contracting, recruitment, training, furnishing, or posting of security guards and other
private security personnel to individuals, corporation, offices and organizations, whether
private or public, for their security needs as the PNP may approve. It is the direct employer
of its security guards and other private security personnel on duty detail to a principal or
client under a Service Agreement.
104) Which of the following statements is incorrect?

Statement 1: The contractual relationship between the principal or client and security
service contractor is governed by the Security Agreement.
Statement 2: The contractual relationship between the security service contractor and
security guards and other private security personnel is governed by the Employment
Contract.
Statement 3: There is a contractual relationship between the principal or client and
security guards and other private security personnel
a) Statement 1
b) Statement 2
c) Statement 3
d) All of the Above
e) None of the Above
RATIONALE: The Security Service Contractor or Private Security Agency is the direct
employer of its security guards and other private security personnel on duty detail to a
principal or client under a Service Agreement. The principal, therefore, is not in any way
the employer of the security guards and other private security personnel assigned or
farmed out to it by the SSC or PSA. In fact, in the trilateral arrangement, there is no
contractual relationship of whatsoever nature between the principal, on the one
hand, and the security guards and other private security personnel, on the other.
105) It is an employment status in which the probationary period of newly hired security
guard and other private security personnel in the private security industry shall not exceed
six months.
a) Regular Employment
b) Probationary Employment
c) Contractual
RATIONALE: Employment status of security guard and other private security personnel
vis-a-vis their direct employer, SSC/PSA is concerned, they may hire as Regular
Employment or Probationary Employment. Probationary Employment is an employment
status in which the probationary period of newly hired security guard and other private
security personnel in the private security industry shall not exceed six months.
106) Any security guard or other private security personnel who is allowed to work after
the probationary period or in the absence of a valid probationary contract shall be
considered a _______________________.
a) Regular Employee
b) Probationary Employee
c) Contractual
BASIS: Security guards and other private security personnel affected by reapeted hiring-
firing- rehiring scheme for short period of time, the aggregate duration of which is atleast
six months shall be considered regular employees.
107) In regards to "floating status", the Supreme Court recognized that there is no
provision in the Labor Code which treats of a temporary retrenchment or lay-off.
Nevertheless, the Court has applied Art. 301 [286] of the Labor Code by analogy to set
the period of temporary lay-off to a maximum of_____
a) 6 months
b) 3 months
c) 9 months
d) 6 weeks
BASIS: Exocet Security and Allied Services Corporation v. Serrano

108) Floating status, as applied to security guards, refers to the period of time when:
I: Security guards are in between assignments.

II: They are made to wait after being relieved form a previous post until they are
transferred to a new one.
a) All of the choices

b) None of the choices
c) I only
d) II only
BASIS: Salvaloza v. NLRC
109) While the ______________rule is traditionally applicable to security guards who are
temporarily sidelined from duty while waiting to be transferred or assigned to a new post
or client Article 301 [286] has been applied as well to other industries when, as a
consequence of the bona-fide suspension of the operation of a business or undertaking,
an employer is constrained to put employees on "Floating status" for a period not
exceeding six (6) months.
a) No label status
b) Civil status
c) Floating status
d) Standby status
RATIONALE: "Floating status" takes place under any of the following circumstances: (1)
When the security agency's clients decide not to renew their contracts with the agency,
resulting in a situation where the available posts under its existing contracts are less than
the number of guards in its roster, or (2) When contracts for security services stipulate
that the client may request the agency for the replacement of the guards assigned to it
even for want of cause and there are no available posts under the agency's existing
contracts to which the replaced security guards may be placed.
110) The Supreme Court has recognized the fact that clients of the security agency have
the right to request for the removal of any of the security guards supplied by the latter to
the former without need to justify the same. The reason for this is the lack of
____________between the security guards and the client.
a) Employer-employee relationship
b) Written contract
c) Oral agreement
d) Formal meeting
RATIONALE: There exists no employer-employee relationship between the security

guards and the client
111) In the case of , the "floating status" principle was applied to

merchandisers hired by petitioner company which is engaged in the business of
recruitment and placement of workers. After they were notified of the cancellation of the
contract of petitioner with a client where they were assigned and pending their assignment
to other clients, the merchandisers have been deemed to be placed under "floating status"
for a period of not exceeding 6 months.
a) JPL Marketing Promotions v. C.A

b) Valdez v. NLRC
c) Nippon Housing Philippines v. Leynes
d) Pido v. NLRC
BASIS: G.R. NO. 151966 July 8, 2005
112) True/False. Some principles on "FLOATING STATUS" doctrine.
I. When an employee like a security guard is place on a "floating" status, he is not entitled
to any salary, financial benefit or financial assistance provided by law during the 6-month
period thereof.
II. As a general rule, "floating status" beyond 6 months amounts to illegal/ constructive
dismissal. This is so because "floating status" is not equivalent to dismissal so long as
such status does not continue beyond a reasonable time which mean six (6) months.
After 6 months, the employee should be recalled for work, or for a new assignment,
otherwise, he is deemed terminated.
a) TRUE; TRUE
b) FALSE; TRUE
c) FALSE; FALSE
d) TRUE; FALSE
BASIS: Pido vs. NLRC, Gr.No.169812, February 23, 2007 ; Leopard Security Agency vs.
Quitoy, Gr.No.186344, Feb 20, 2013; Emeretus Security and Maintenance Systems Inc.,
vs Dailig, Gr. No. 204761,April 2, 2014.
113) Which of the following is false regarding “floating status” of employees?
a) Floating status is distinct from preventive suspension.

b) Floating status is a situation wherein the employee is out of work because his
employer has no available work or job to assign him to.
c) Procedural due process should be complied with before an employee is
placed in floating status.
d) Floating status may result to constructive dismissal.
RATIONALE: There is no procedural due process to be complied with in placing an

employee under floating status because placing an employee under floating status is not
the same as dismissing the employee.
114) Hen Lin is a security guard working under Bao Security Agency. Hen Lin was placed
on floating status. Hen Lin filed a complaint for constructive dismissal on the first day of
his six month on floating status. The complaint would not be considered premature if:
a) Hen Lin refused to be re-assigned

b) Bao Security Agency failed to renew Hen Lin’s security guard license
c) Bao Security Agency evidently intended to terminate Hen Lin
d) Despite Hen Lin’s poor work performance Bao Security Agency failed to take
appropriate disciplinary action
RATIONALE: As a general rule, a complaint for constructive dismissal may only be filed
after a lapse of 6 months of floating status. Otherwise, the complaint would be considered
prematurely filed. However, in cases where the intent to terminate the employee is
evident, the employee placed on floating status may file the complaint for constructive
dismissal without waiting for the lapse of 6 months.
115) President Rodrigo Duterte issued Executive Order No. 51, Series of 2018 on May 1,
2018 which seeks to implement only one of the following articles of the Labor Code on
contractualization. Which of the following is it?
a) Article 106 – Contractor or Subcontractor

b) Article 107 – Indirect Employer
c) Article 108 – Posting of Bond
d) Article 109 – Solidary Liability
BASIS: Executive Order No. 51, Series of 2018 on May 1, 2018, as shown in its title,
“Implementing Article 106 of the Labor Code of the Philippines, As Amended, to Protect
the Right to Security of Tenure of All Workers Based on Social Justice in the 1987
Philippine Constitution.”
116) The party which contracts with the principal is the _______, while the party which
subcontracts with the contractor is called ___________.
a) Contractor; subcontractor
b) Subcontractor; contractor
c) Agent; contractor
d) Agent; subcontractor
117) Under the Department Order No. 174, Series of 2017, this refers to an arrangement
whereby a principal agrees to farm out to a contractor the performance or completion of
a specific job or work within a definite or predetermined period, regardless of whether
such job or work is to be performed or completed within or outside the premises of the
principal.
a) Contracting
b) Subcontracting
c) Contracting or subcontracting
d) Servicing Arrangement
RATIONALE: Under Department Order No. 174, Series of 2017: Rules Implementing
Articles 106 to 109 of the Labor Code, as Amended, the distinction between the terms
contracting and subcontracting are no longer underscored in the definition of terms. Thus,
it appears now that the foregoing terms may be used interchangeably for they are now
defined as follows:
1. "Contracting" or "Subcontracting"-refers to an arrangement whereby a principal

agrees to farm out to a contractor the performance or completion of a specific job or work
within a definite or predetermined period, regardless of whether such job or work is to be
performed or completed within or outside the premises of the principal.
2. "Contractor"- refers to any person or entity engaged in a
legitimate contracting or subcontracting arrangement providing services for a specific
job or undertaking farmed out by a principal under a Service Agreement.
118) This refers to the relationship in a contracting arrangement where there is (1) a
Service Contract for a specific job, work or service between the principal and the
contractor; and (2) an Employment Contract between the contractor and its employees.
a) Employer-employee relationship
b) Service Contract relationship
c) Trilateral relationship
d) Tripartite relationship
RATIONALE: The term "trilateral" connotes that there are three (3) parties involved:
The "Principal", the "Contractor", and the "Contractor's Employee"./Department
Order No. 174, Series of 2017.
119) Within the context of a valid contracting arrangement, a "principal" or "Indirect

employer" is also known as _____________.
a) statutory principal or simply the principal

b) statutory employee or simply an employee
c) statutory employer or simply an employer
d) statutory contractor or simply the contractor
BASIS: Baguio v. NLRC (GR No. 79004-08, Oct 4, 1991,202 SCRA 465).
120) Under this provision, a "principal" is also referred to as an "indirect employer." As

defined therein, an 'indirect employer” refers to any person, partnership, association or
corporation who/which contracts with an independent contractor for the performance of
any work, job, task or service.
a) Article 710
b) Article 701
c) Article 107
d) Article 71
121) The Employment Contract is governed by the _______________; while the Service
Agreement is governed by the ________________.
a) Civil Code; Labor Code

b) Civil Code; Commercial Code
c) Labor Code; Revised Penal Code
d) Labor Code; Civil Code
BASIS: Section 9 and Section 5[b], respectively, Department Order No. 18-A, Series of
2011.
122) Which of the following statements is true?
a) There exists no employer-employee relationship between the contractor and the

contractor's employee
b) There is an employment contract between the principal and the contractor's
employee.
c) In a legitimate contracting agreement, the contractor has no employment
contract with the employees it supplies to the principal.
d) There exists no employer-employee relationship between the principal
and the contractor's employees.
BASIS: Section 5[a], Department Order No. 18-A, Series of 2011. It bears nothing that
there is no employment contract or any other form of contract between the principal and
the contractor's employees. Hence, it is correct to say that there is no contractual
relationship between them of whatsoever nature. In legitimate contracting arrangeement,
there exists an employer-employee relationship only between the contractor and its
employees it supplies to the principal.
123) Which of the following statements is true?
a) The mere expiration of the Service Agreement shall not be deemed as

termination of employment of the contractor’s employees who are regular
employees of the latter.
b) The mere expiration of the Service Agreement shall be deemed as termination of
the employment of the contractor’s employees who are regular employees of the
latter.
c) The expiration of the Service Agreement is of no moment because the contractor
has the final decision on whose contract of service is terminated or extended.
BASIS: Section 13, Department Order No. 174, Series of 2017.
124) In the termination of employment by the pre-termination of the service agreement,

who shall bear the right of the contractor’s employees to unpaid wages and other
benefits?
a) The party at fault
b) The contractor only
c) The employer only
d) The employee only
BASIS: Section 13, Department Order No. 174, Series of 2017
125) Under this Department Order, contracting shall only be allowed if certain
circumstances concur.
a) Department Order No. 144, Series of 2017

b) Department Order No. 154, Series of 2017
c) Department Order No. 164, Series of 2017
d) Department Order No. 174, Series of 2017
BASIS: Department Order No. 174, Series of 2017: Rules Implementing Articles 106 to
109 of the Labor Code As Amended.
126) Absence of any of the requisites provided under Department Order No. 174, Series
of 2017 makes the arrangement a/an _____.
a) Illegal Contracting Arrangement.

b) Mixed Contracting Arrangement.
c) Employer-Only Contracting Arrangement.
d) Labor-Only Contracting Arrangement.
BASIS: Philippine School of Business Administration (PSBA)-Manila v. NLRC, GR No.

114143, August 28, 1996; Tabas v. California Manufacturing Co., Inc., GR No. 80680,
January 26, 1989, 169 SCRA 497.
127) Which of the following is not a test to determine the existence or nonexistence of
permissible or legitimate job contracting arrangement:
I. Right of control test

II. Substantial capital or investment test
III. Direct relation to principal's business test and
IV. Legal rights and benefits compliance test
a) Only I
b) Only IV
c) All of the above
RATIONALE: Based on the law and jurisprudence, to determine the existence or non-
existence of permissible or legitimate job contracting arrangement, the following tests
may be applied:
a) Right of control test;

b) Substantial capital or investment test;
c) Direct relation to principal's business test; and
d) Legal rights and benefits compliance test.
128) The "Right of Control" test basically addresses the issue of whether the contractor's
______ and _______ of performing the contracted job, work or service are completely
free from the control and direction of the principal except as to the result thereof.
a) Manner; Method
b) Control; Direction
c) Power; Discretion
d) Authority; Grasp
RATIONALE: The "Right of Control" test basically addresses the issue of whether the
contractor's manner and method of performing the contracted job, work or service are
completely free from the control and direction of the principal except as to the result
thereof. If the issue is answered in the affirmative, then this requisite of legitimate
contracting arrangement is fully satisfied.
129) The ___________________________ test seeks to address the issue of whether

the contractor has substantial capital or investment in the form of tools, equipment,
machineries, work premises and other materials which are necessary in the conduct of
its business.
a) economic dependence
b) control
c) substantial capital or investment
d) right of control
BASIS: Manila Electric Company vs. Benamira, G.R. No. 145271, July 14, 2005
130) The substantial capital or investment test seeks to address the issue of whether the
contractor has substantial capital or investment in the form of tools, equipment,
machineries, work premises and other materials which are necessary in the conduct of
its business. If the answer is ______________________, then this requisite in legitimate
contracting arrangement is fully complied with.
a) in the negative
b) in the affirmative
c) unsure
d) substantial
BASIS: Manila Electric Company vs. Benamira, G.R. No. 145271, July 14, 2005
131) The threshold amounts of the substantial capitals of corporations, partnerships,

cooperatives, and single proprietorships are fixed by which department order of the
DOLE?
a) No. 174, Series of 2011

b) No. 174, Series of 2013
c) No. 174, Series of 2015
d) No. 174 Series of 2017
RATIONALE: The threshold amounts set by D.O. No. 174, Series of 2017 is important in
weeding out illegitimate contractors from those who are legitimate.
132) Jobcrest, a corporation made under Philippine law, was reported to have increased
its paid-up capital stocks from ₱500,000 to ₱8 million with assets amounting to more than
₱28 million. Is it a legitimate contractor?
a) Yes, its assets are more than ₱3 million.

b) Yes, its assets are more than ₱5 million.
c) Yes, its paid-up capital stocks are more than ₱3 million.
d) Yes, its paid-up capital stocks are more than ₱5 million.
RATIONALE: D.O. No. 174, Series of 2017 mandates that corporations as legitimate
contractors should have a substantial capital of at least ₱5 million paid-up capital stocks
or shares.
133) In the case of Filipinas Synthetic vs NLRC, the Supreme Court ruled that a contractor
which is a going-concern duly registered with the Securities and Exchange Commission
(SEC) with the substantial capitalization of P1.6 Million, P400,000.00 of which is actually
subscribed, _______ be considered as engaged in labor-only contracting being a highly
capitalized venture.
a) cannot
b) can
c) should
d) may not
BASIS: Filipinas Synthetic vs NLRC, G.R. No. 113347, June 14, 1996
134) Per jurisprudence, "substantial capital" and "investment in tools, equipment,

implements, machineries and work premises" should be treated as two (2) ______ and
______ factors in determining whether legitimate job contracting arrangement exists in a
certain case.
a) distinct and separate

b) distinct and definite
c) definite and separate
d) indefinite and separate
BASIS: Neri vs NLRC, G.R. Nos. 97008-09, July 23, 1993
135) This test seeks to address the issue of whether the employees recruited, supplied
or placed by a contractor are performing activities which are directly related to the main
business of the principal.
a) ‘Direct Relation to Principal’s Business’ Test

b) ‘Causal connection’ Test
c) ‘Proximity’ Test
RATIONALE: The ‘Direct Relation to Principal’s Business’ Test seeks to address the
issue of whether the employees recruited, supplied or placed by a contractor are
performing activities which are directly related to the main business of the principal. If this
is answered in the affirmative, the contractor is deemed a labor-only contractor, and the
employees become direct employees of the principal.
136) In _______________________, the contractor’s employees worked as welders and
machine operators engaged in the production of steel crates which were sent to Japan
for use as containers of motorcycles that are then sent back to the company-employer.
Here, it was ruled that the functions of said employees are directly related and vital to the
employer’s business of manufacturing of Yamaha motorcycles.
a) Coca-cola v. Agito
b) Mandaue Galleon v. Andales
c) Norkis Trading Corporation v. Buenavista
d) Abella v. PLDT
BASIS: Norkis Trading Corporation v. Buenavista, GR No. 182018, October 10, 2012
137) In what case did the the supreme Court stress that the repeated rehiring of the
salesman bolstered the indispensability of their work to the business of CCBPI?
a) Almeda v. Asabi
b) San Miguel Corp. v. Aballa
c) Coca-Cola v Agito
d) Pacquing v. Coca-Cola
BASIS: Coca-Cola Bottlers Phils v. Agito
138) TRUE OR FALSE
I. The repeated rehiring of the salesman bolstered the indispensability of their work to the
business.
II. The contractor's employees were made to perform work directly related to
petitioner’s aquaculture operation. The nature of their work in shrimp harvesting, receiving
and packing formed and integral part of the shrimp processing operations.
a) true/ true
b) false/ false
c) false/ true
BASIS: Coca- cola v. Agito; San Miguel Corp v. Aballa
139) The test addresses the issue of whether the Service Agreement
between the principal and contractor assures the employees of the latter farmed out to
the former of their entitlement to all labor and occupational safety and health standards ,
free exercise of their right to self-organization, security of tenure, and social and welfare
benefits.
a) Benefits Compliance Test

b) Welfare Benefit Test
c) Legal Rights and Benefits Compliance Test
d) Social and Welfare Benefit Test.
BASIS: Consolidated Building Maintenance Inc. vs Asprec Jr., GR No. 217301, June 6,
2018
140) In this case, the route helpers were tasked to distribute to defendants products and
were likewise successively transferred to agencies after having been initially employed
by defendant. The court decreed therein that said helpers were regular employees of
defendant notwithstanding the fact that they were transferred to agencies while working
for the defendant.
a) Quintanar vs. Coca-Cola Bottlers Philippines Inc.

b) Consolidated Building Maintenance Inc vs Asprec Jr.
c) Mago vs Sun Power Manufacturing Limited
d) Lingat and Alvaros vs. Coca-Cola Bottlers Philippines Inc.
BASIS: Quintanar vs. Coca-Cola Bottlers Philippines Inc., GR No. 210565, June 28,
2016, 794 SCRA 654.
143) Labor-only contracting has the following elements, except:
a) The contractor or subcontractor does not have substantial capital, or the

contractor or subcontractor does not have investments in the form of tools,
equipment, machineries, supervision and work premises among others;
b) The contractor’s or subcontractor’s employees recruited and placed are
performing activities which are directly related to the main business operation of
the principal; or
c) The contractor or subcontractor does nor exercise the right to control over the
performance of the work of the employees.
BASIS: Article 106, Labor Code; Philippine Airlines, Inc v. Likigan, G.R No. 146408
144) TRUE OR FALSE
I. In order to for one to be considered by law as a labor-only contractor, all the elements
need not be present.
II. If the contractor enters into an arrangement characterized by any one of the foregoing
elements, it would be a clear case of labor-only contracting.
a) True, True
b) False, True
c) True, False
d) False, False
BASIS: Aboitiz Haulers, Inc. v. Dimapatol, G.R. No. 148619, Sept. 19, 2006; Aliviado v.
Procter & Gamble Phils., Inc. G.R. No. 160506, June 6,2011
145) As private recruitment and placement agency from the DOLE, while not conclusive
evidence of the status of the contractor as a legitimate job contractor, prevent the legal
presumption that a contractor is engaged in labor-only contracting.
a) DOLE Certificate of Registration and License

b) National Labor Relations Commission
c) Public Employment Agency
d) Philippine Overseas Employment Administration
BASIS: Jack C. Valencia, vs. Classique Vinyl Products Corporation, Johnny Chang
(Owner) and/or Cantingas Manpower Services, G.R. No. 206390, January 30, 2017
146) In ___________________, there is no operative presumption that the Jobcrest is a

labor-only contractor. That the registration with DOLE does not necessarily create a
presumption that Jobcrest is a legitimate and independent contractor. The Supreme Court
emphasizes that the DOLE Certificate of Registration issued to Jobcrest is presumed to
have been issued in the regular performance of official duty.
a) Valencia v. Classique Vinyl Products Corporation

b) Lingat v. Coca-Cola Bottlers Phils.
c) Mago v. Sun Power Manufacturing Limited
d) De los Santos v. NLRC
BASIS: That the petitioners must overcome the presumption of regularity accorded to the
official act of DOLE, which is no less than the agency primarily tasked with the regulation
of job contracting. Article 106 of the Labor Code of the Philippines, states that in so
prohibiting or restricting, the Secretary of Labor, may make appropriate distinctions
between labor-only contracting and job contracting as well as differentiations within these
types of contracting.
147) What is the effect if the resigning employee fail to work. during the 30-day period or
the agreed shorter period between the employer and employee?
a) The employee will be subjected to damage suit.

b) the employee will not receive backpay.
c) the employee will not be relieved from service.
d) the employee will be forced to work for another one year.
RATIONALE: The resigning employee is still required to work during the legally
mandated 30 day period or such shorter period as may be unilaterally prescribed by the
employer or such extended period as may be mutually agreed upon by the resigning
employee and the employer. Failure on the part of the resigning employee to work during
such period will subject him to damage suit.
148) It is a rule that the resigning employee is still required to work for a period of?
a) 30-day period or such shorter period as mutually agreed

b) 35-day period or such shorter period as provided
c) 30-day period or longer period as the management deems necessary
d) 40-day period only.
BASIS: The resigning employee is still required to work during the legally mandated 30
day period or such shorter period as may be unilaterally prescribed by the employer or
such extended period as may be mutually agreed upon by the resigning employee and
the employer.
149) The term ______ refers to a person or group of persons or to a labor group which,
under the guise of a labor organization, cooperative or any entity, supplies workers to an
employer, with or without any monetary or other consideration, whether in the capacity of
an agent of the employer or as an ostensible independent contractor.
a) Cabo
b) SEBA
c) Union Leader
d) Contractor
BASIS: Department Order No. 174, Series of 2017
150) ____________ refers to a contractor which is owned, managed, or controlled,

directly or indirectly, by the principal or one where the principal owns/represents any
share of stock, and which operates solely or mainly for the principal.
a) In-house Agency
b) Indepent Contractor
c) Indepent Agency
d) Labor Agency
BASIS: Department Order No. 174, Series of 2017
151) In legitimate job contracting, the principal in considered only as an _____; while in
labor- only contracting, the principal is considered ____ of the employees supplied by the
labor- only contractor.
a) indirect employer; direct employer

b) direct employer; indirect employer
c) direct employer; direct employer
d) indirect employer; indirect employer
BASIS: Article 106 and 107 of the Labor Code
152) In __, no employer- employee relationship exists between the contractor's

employees and the principal.
a) legitimate job contracting

b) labor- only contracting
c) illegitimate job contracting
RATIONALE: There exists an employer- employee relationship between contractor's

employee and the principal in a legitimate job contracting.
153) Principal becomes _____ liable with the labor-only contractor to the latter’s
employees in the same manner and extent that the principal is liable to employees directly
hired by him/her.
a) Solidarily
b) Jointly
c) Individually
d) Not
BASIS: Article 106 Labor Code
154) This must be considered in order that a labor relationship can be categorized as
legitimate job contracting:
a) Totality of the circumstances

b) Right of employees to freedom of expression
c) Right of employees to peaceably assemble to air grievances
BASIS: Totality of the circumstances. Alilin v. Petron Corporation GR No. 177592, June
9, 2014
157) Which of the following circumstances make the principal a direct employer and
solidarily liable with the contractor?
I. In case of commission of the prohibited acts under Department Order No. 174.
II. In case of non-compliance with legally mandated wage increases wherein, under R.A.
No. 6727, the principal is also considered solidarily liable with the contractor.
a) Both I and II.

b) I only
c) II only
RATIONALE: Six circumstances were enumerated in which choices I and II were

included where a principal shall no longer be treated as indirect but direct employer and
therefore it shall be deemed solidarily liable with the contractor. It is from the examination
of the provisions of the Labor Code and the Department Order No. 174, s. 2017.
158) In a legitimate job contracting arrangement, what does the term "solidary liability"
refer to?
a) liability of the principal

b) liability of the employee
c) liability of the insolent
RATIONALE: In a legitimate job contracting arrangement, the term "solidary liability"

shall refer to the liability of the principal, pursuant to the provisions of Articles 106 and
109 of the Labor Code.
159) Statement 1: In legitimate job contracting arrangement, the solidary Liability of the
principal would only be to the extent of the work performed under the employment
contract.
Statement 2: The solidary Liability of the principal should only involve the violations
connected to or related with the employment contract.

c) statement 1 is false
d) statement 2 is false
BASIS: Section 9 of Department Order No. 174.
160) Once the job contractor, although legitimate, fails to pay the wages of its employees
supplied to the principal or violates any provisions of the Labor Code, the principal would
no longer be considered merely as an indirect but as direct employer for the ______
purpose of complying with the wage requirement or legal provisions violated.
a) limited
b) sole
c) only
BASIS: Once the job contractor, although legitimate, fails to pay the wages of its
employees supplied to the principal or violates any provisions of the Labor Code, the
principal would no longer be considered merely as an indirect but as direct employer for
the LIMITED purpose of complying with the wage requirement or legal provisions violated.
161) Under the following articles of the Labor Code, should the contractor fail to pay the
wages of its employees in accordance with law, the indirect employer is jointly and
severally liable with the contractor.
a) Articles 106, 107, 109

b) Articles 101, 102, 103
c) Articles 110, 111, 112
d) Articles 106, 107, 108
BASIS: Rosewood Processing v NLRC
162) The Supreme Court ruled in this case that the principal is made liable to his indirect
employees because it can protect itself from irresponsible contractors by withholding such
sums and paying them directly to the employees or by requiring a bond from the
contractor for this purpose.
a) GSIS v NLRC
b) Rosewood v NLRC
c) Serano v CA
d) People v Siao
BASIS: GSIS v NLRC
163) Statement 1: The insolvency of the job contractor must be proved to hold the
principal liable
Statement 2: In legitimate job contracting, the principal is jointly and severally liable with
the contractor to pay the wages of the latter’s employees.
a) Only statement 1 is true.

b) Only statement 2 is true.
d) Both statements are not true.
BASIS: Development Bank vs. NLRC
164) Statement 1: The contractor’s employees have the right to collect from the legitimate
contractor only
Statement 2: The liability of a principal vis-à-vis a legitimate contractor is different from its
liability in relation to a labor-only contractor.

RATIONALE: The contractor’s employees have the right to collect either or both from the
principal or legitimate contractor. (Eparwa v. Liceo de Cagayan University)
165) Dismissal of employees requires observance of the two-fold due process requisites.
Dismissal of an employee for either Just Causes or Authorized Causes falls within the
purview of:
a) Procedural aspect.
b) Substantive aspect.
c) Contractual due process.
d) Statutory due process.
BASIS: Article 292 (b), 294 [279], 297 [282] and 298 [283] Labor Code. Substantive
aspect: Just and authorized causes. Procedural: Statutory and Contractual due process.
166) A dismissal based on Authorized Cause means that:
a) The employee has committed a wrongful act or omission.

b) There exists a ground which the law itself allows to be invoked to justify
the termination.
c) There is prevention of the circumvention of labor laws.
RATIONALE: A dismissal based on a just cause means that the employee has committed
a wrongful act or omission; while a dismissal based on authorized cause means that there
exists a ground which the law itself allows or authorizes to be invoked to justify the
termination of an employee even if he has not committed any wrongful act or omission
such as installation of labor-saving devices, redundancy, retrenchment, closure or
cessation of business operations or disease. Article 298 [283], Labor Code. San Miguel
Corporation v. MAERC Integrated Services, Inc., GR No. 144672, July 10, 2003.
167) Refers to a ground for termination of employment that is directly attributable to the
fault or negligence of the employee.
a) Just Cause
b) Authorized Cause
c) Serious Misconduct
d) Disease
RATIONALE: A just cause under Article 297 of the Labor Code, which refers to a ground
for termination of employment that is directly attributable to the fault or negligence of the
employee, such as:
• Serious misconduct or willful disobedience by the employee of the lawful orders of his
or her employer or representative in connection with his or her work;
• Gross and habitual neglect by the employee of his or her duties;
• Fraud or willful breach by the employee of the trust placed in him or her by his or her
employer or duly authorized representative;
• Commission of a crime or offense by the employee against the person of his or her
employer or any immediate member of his or her family or his or her duly authorized
representative; and
• Other causes analogous to the foregoing; or
168) Refers to a ground for termination of employment brought about by the necessity
and exigencies of business or changing economic conditions, or illness of the employee.
a) Just Cause
b) Authorized Cause
c) Serious Misconduct
d) Disease
RATIONALE: An Authorized cause under articles 298 and 299 of the Labor Code, which
is a ground for termination of employment brought about by the necessity and exigencies
of business or changing economic conditions, or illness of the employee, namely:
• Disease;
• Closure or cessation of operation of the establishment or undertaking owing to serious
business losses or financial reverses;
• Retrenchment to prevent losses;
• Redundancy; and
• The installation of labor-saving devices.
169) True or False.
I. Just causes under the labor code include Article 279 (a) which provides for the
Prohibited Activities and Article 278 (g) which provides for National Interest cases.
II. Union officers who unknowingly participate in an illegal strike and therefore deemed to
have lost their employment status falls under Article 279 (a) of the Labor Code

BASIS: Article 279 (a) and Article 278 (g) of the Labor Code.
170) An employer may terminate an employee on which of the following grounds?

a) Neglect by the employee of his duties
b) Participation in an illegal strike unknowingly
c) Violation of the union security agreement without demand from the bargaining
union
d) Violation of orders, prohibitions, or injunctions issued by the DOLE
Secretary or the NLRC in national interest cases
RATIONALE: Item (a) needs “gross and habitual” neglect; item (b) requires knowledge
by a union officer of the illegality; item (c) presupposes a demand from the bargaining
union. (Arts. 297, 279 (a), 259 (e) of the LC)
171) Based on prevailing jurisprudence, which of the following is/are also just cause/s for
termination of employment?
a) Violation of company rules and regulations

d) Theft of property owned by a co-employee
c) Incompetence, inefficiency or ineptitude
d) All of the choices.
BASIS: Aside from the just causes of termination enumerated under the Labor Code, the
following are also found in prevailing jurisprudence as just causes:
1. Violation of Company Rules and Regulations, Code of Conduct of Code of Discipline

(Sampaguita Auto Transport Corp. v. NLRC, GR No. 197384);
2. Theft of property owned by co-employee (John Hancock Life Insurance v. Davis, GR
No. 169549);
3. Incompetence, inefficiency or ineptitude (Reyes-Rayel v. Philippine Luen Thai
Holdings, Corp., GR No. 174893);
4. Failure to attain work quota (Aliling v. Feliciano, GR No. 185892);
5. Failure to comply with weight standards of employer (Yrasuegui v. Philippine Airlines,
GR No. 168081); and
6. Attitude problem (Reyes-Rayel v. Philippine Luen Thai Holdings, Corp., GR No.
174893).
172) The following are just causes found in prevailing jurisprudence except:
a) Violation of Company Rules and Regulations or Code of Conduct or Code of

Discipline
b) Theft of property owned by a co-employee, as distinguished from company-
owned property, which is considered serious misconduct
c) Incompetence, inefficiency or ineptitude
d) Tardiness
BASIS: Sampaguita Auto Transport Corporation vs NLRC, GR No. 197384, January 30,
2013; John Hancock Life Insurance Corp. vs Davis, GR No. 169549, September 03, 2008
and Reyes-Rayel vs Philippine Luen Thai Holdings Corp., GR NO. 174893, July 11, 2012
173) For misconduct or improper behavior to be a just case for dismissal, the following
requisites must concur, except?
a) It must be serious
b) It must relate to the performance of the employee's duties
c) It must show that he has become unfit to continue working for the employer
d) It must have been performed with wrongful intent.
e) None of the choices
BASIS: Yabut vs. Electric Company, GR No. 190436, January 16,2012; Imasen
Philippine Manufacturing Corp. vs. Alcon, GR No.194884, October 22,2014.
174) TRUE OR FALSE
There are four requisites of serious misconduct. For misconduct or improper behavior to
be a just cause of dismissal, it is sufficient that one requisite exists.
a) False because at least 2 requisites must be present.
b) True
c) True because what the law requires is the presence of any of its requisites.
d) False
RATIONALE: The requisites are equally important and required, thus, the requisites must
concur.
175) Under Articles 106,107 and 109 of the Labor Code, should the contractor fail to pay
the wages of its employees in accordance with law, the indirect employer, is ____ liable
with the contractor, but such responsibility should be understood to be limited to the extent
of the work performed under the contract, in the same manner and extent that he is liable
to the employees directly employed by him.
a) solidary
b) solidary and jointly
c) solidary or joint and several
d) jointly and severally
BASIS: Rosewood Processing, Inc. v. NLRC, G.R. No. 116476-84, 21 May 1998, 290
SCRA 408, 427
177) One (1) of the principle on serious misconduct, where ______________ is a just
ground to dismiss under Republic Act No. 7877.
a) Sexual harassment
b) Sleeping while on duty
c) Intoxication
d) Disrespectful conduct
BASIS: Republic Act No. 7877, otherwise known as Anti-Sexual Harassment Act of
1995 and Philippine Aeolus Automotive United Corporation vs. NLRC 331 SCRA 237,
April 28, 2000, the gravamen of the offense in sexual harassment is not the violation of
the employee's sexuality but the abuse of power by the employer. Any employee, male
or female, may rightfully cry "foul" provided the claim is well substantiated. Strictly
speaking, there is no time period within which he or she is expected to complain through
the proper channels. The time to do so may vary depending upon the needs,
circumstances, and more importantly, the emotional threshold of the employee.
178) In Pasig Cylinder Mfg. Corp b. Rollo, GR no. 173631, what is the instances of
constructive dismissal explained therein?
a) If transfer is occasioned by a government directive, there can be no constructive

dismissal to speak of
b) Denying entry to the workers to their work area and placing them on shifts
days not by weeks but almost by month by reducing their workweek to three
c) Both a and b
d) A only
BASIS: Pasig Cylinder Mfg. Corp b. Rollo, GR no. 173631
179) It refers to employees or those who, by the nature of their positions, are entrusted
with confidential and delicate matters and from whom greater fidelity to duty is
correspondingly expected.
a) Managerial positions
b) Supervisory positions
c) Fiduciary rank-and-file positions
d) Ordinary rank-and-file positions
BASIS: Alvarez v. Gotten G.R No. 202158, Sept 25, 2013
180) In order to validly invoke insubordination, the following requisites must be complied
with, except:
a) the employee's assailed conduct must have been willful or intentional

b) the order violated must be based on a reasonable and lawful company rule,
regulation, or policy, and made known to the employee, and must pertain to the
duties for which he has been engaged to discharge
c) the employee's assailed conduct must not have been willful or intentional
RATIONALE: The following are the requisites in order to validly invoke insubordination
or willful disobedience of lawful orders:
1. The employee's assailed conduct must have been willful or intentional; and
2. The order violated must be based on a reasonable and lawful company rule, regulation,
or policy, and made known to the employee, and must pertain to the dutis fo which he
has been engaged to discharge
181) On insubordination:
1. Employer has prerogative to formulate and implement company rules and regulations
or policies.
2. Filing of a case questioning validity of rules and policies does not prevent employer
from enforcing them.
a) True, True
b) True, False
c) False, True
d) False, False
RATIONALE: Both statements are true. Alilem Cooperative v. Bandiola, Jr., GR No.
173489 and Alcantara Jr. v. CA, GR No. 143397
183) The first requisite of gross and habitual neglect of duties is that there must be
negligence which is gross and/or habitual in character. What is the second requisite?
a) It must be work-related as would make him unfit to work for his employer.
b) It should be health-related which will make the employee unable to work.
c) It should fall under force majeure circumstances.
RATIONALE: The requisites of gross and habitual neglect of duties is that there must be
negligence which is gross and/or habitual in character; and it must be work-related as
would make him unfit to work for his employer.
184) Statement 1: Simple negligence is not sufficient to terminate employment.

Statement 2: Negligence is a question of fact.
a) Both statements are true

b) Both statements are false
c) Statement 1 is true
d) Statement 2 is true
BASIS: S1: St. Luke's Medicla Center, Inc. v. Notario, GR No. 152166. Oct. 20,2010
S2: School of the Holy SPirit of Quezon City v. Taguiam, GR No. 165565, July 14, 2006
185) ____ is a form of neglect of duty; hence, a just cause for termination of employment
under Article 297(b) [282(b)] of the Labor Code
a) Abandonment
b) Strike
c) Tardiness
d) Organization
BASIS: Forever Security v Flores
186) Statement 1: Gross negligence may result to loss of trust and confidence.
Statement 2: Tardiness or absenteeism, if not habitual cannot be cited as a ground to
terminate employment.

BASIS: Statement 1: Dycoco Jr. vs. Equitable PCI Bank;

Statement 2: Genuino Ice Company Inc vs. Magpantay
187) Which among the following constitutes abandonment of work which is a just cause
for termination of employment?
a) Cristy who failed to report for work and have been absent for 3 weeks because
she does not feel like going to work because she refuses to see her boss.
b) Anne who clearly intends to leave work and sever the employment relationship.
c) All of the above.
d) Neither a nor b.
RATIONALE: To constitute abandonment two elements must conquer, namely: 1. The

employee must have failed to report for work or must have been absent without valid or
justifiable reason; and 2. It must have been a clear intention on the part of the employee
to sever the employer-employee relationship manifested by some overt act. CRC
Agricultural Trading v NLRC GR No. 177664, December 23, 2009.
188) To constitute abandonment, two elements must concur:
Statement I: The employee must have failed to report for work or must have been absent
without valid or justifiable reason.
Statement II: There must have been a clear intention on the part of the employee to sever
the employer-employee relationship manifested by some overt act.

RATIONALE: To constitute abandonment, two elements must concur, namely:

1. The employee must have failed to report for work or must have been absent without
valid or justifiable reason; and
2. There must have been a clear intention on the part of the employee to sever the
employer-employee relationship manifested by some overt act.
189) An employee who failed to report for work after the expiration of the duly approved
leave of absence is considered to have _______________ his job.
a) Hated
b) Terminated
c) Abandoned
BASIS: G.R. No. 55629, MAGDALENA RAMO, NARCISO ALBARRACIN, ANTONIO

DUMLAO and NORMA RICAFORT, Petitioners, vs. INOCENCIA ELEFAÑO and HON.
AUXENCIO C. DACUYCUY, in his capacity as Presiding Judge of Branch IV, Court of
First Instance of Leyte, Respondents.
190) True/ False: Principles of Abandonment
I. Immediate filing of a complaint for illegal dismissal praying for reinstatement negates
abandonment.
II. Filing of a case to pre-empt investigation of the administrative case is tantamount to
abandonment.
a) True, True
b) False, False
c) True, False
d) False, True
BASIS: I- Pasig Cyfinder Mfg Corp v Rollo G.R No 173631, II- Intertranz Container Lines
Inc. V Ma. Teresa Bautista GR No 187693
191) In the computation of separation pay, the amount equivalent to at least _____ month
salary or to ______ month salary for every year of service, whichever is higher, a fraction
of at least ______ months being considered as one year must be included.
a) 1, 1, 6
b) 2, 4, 6
c) 1,3,6
d) 3, 5, 6
RATIOONALE: In the computation of separation pay, the amount equivalent to at least 1

month salary or to 1 month salary for every year of service, whichever is higher, a fraction
of at least 6 months being considered as one year must be included.
192) What is the correlation of fraud and loss of trust and confidence as enunciated under
Article 297 (282) of the Labor Code?
a) Separate and distinct

b) Similar
c) Somewhat related
RATIONALE: In the case of Sanden Aircon Philippines vs. Rosales, the court stated
that Article 297 (282) of the Labor Code prescribes two separate and distinct grounds for
termination of employment, namely: (1) fraud or (2) willful breach by the employee of the
trust reposed in him by his employer or duly authorized representative.
193) the following are principles on fraud except:
I. Falsification constitutes only serious misconduct and not fraud under the labor code.
II. failure to deposit collection constitutes willful breach of trust and confidence.
III. Lack of misappropriation or shortage is immaterial in case of unauthorized
encashment of personal checks by teller and cashier.
a) only statement III
b) both statements I & II
c) both statements I&III
d) only statement I
RATIONALE:
I. Falsification on fraud constitutes not only serious misconduct but fraud under the Labor
code.
II. failure to deposit collection constitutes fraud.
194) For the Doctrine of loss of trust and confidence to apply, the following requisites
must concur, except:
a) The employee holds a position of trust and confidence

b) The act must be in relation to his work which would render him unfit
c) The employee’s act was done intentionally but with justifiable excuse
d) There exists an act justifying the loss of trust and confidence
RATIONALE: The Court has repeatedly emphasized that the act that breached the trust
must be willful such that it was done intentionally, knowingly, and purposely, without
justifiable excuse, as distinguished from an act done carelessly, thoughtlessly, heedlessly
or inadvertently.
195) Which of the following are the guidelines for the loss of trust and confidence doctrine
to apply?
I. The loss of confidence must not be simulated.

II. It shall not be used as a subterfuge for causes which are illegal, improper or
unjustified.
III. It may not be arbitrarily asserted in the face of overwhelming evidence to the
contrary.
IV. It must be genuine, not a mere afterthought, to justify earlier action taken in bad
faith.
a) Statement I, II, III

b) Statement I, II, IV
c) All of the above
RATIONALE: The foregoing guidelines have been prescribed by the Supreme Court due
to the subjective nature of this ground which makes termination based on loss of trust
and confidence prone to abuse. ( Wah Yuen Restaurant vs. Jayona, GR No. 159448,
December 16,2005)
196) True or False
Statement 1: When the breach of trust and confidence is not borne by clearly established
facts, such dismissal on the ground of loss of trust and confidence cannot be
countenanced.
Statement 2: While an employer is at liberty to dismiss an employee for loss of trust and
confidence, he cannot use the same to feign what would otherwise be an illegal dismissal.
a) True, True
b) True, False
c) False, True
d) False, False
BASIS: The Coca-Cola Export Corp. v. Gacayan GR No. 149433 Dec. 15, 2010
Concorde Hotel v. CA, GR No. 144089 Aug 9, 2001
197) It is one where a person is entrusted with confidence on delicate matters such as
custody, handling, or care and protection of the employer’s money, assets, or property.
a) Position of Trust
b) Position of Confidence
c) Position of Trust and Confidence
RATIONALE: Position of Trust and Confidence is one where a person is “entrusted with
confidence on delicate matters,” such as custody, handling, or care and protection of the
employer’s money, assets, or property.
198) Which of the following is NOT one of the classes of positions of trust?
a) Managerial positions
b) Supervisory positions
c) Executive positions
d) Fiduciary rank-and-file positions
BASIS: Wesleyan University Philippines v. Nowella Reyes, (GR No. 208321, 30 July
2014)
199) May rank-and-file employees be given a position of trust and confidence?
a) Yes, but only when routinely charged with the custody, handling, or care
and protection of the employer's money or property, or entrusted with
confidence on delicate matters.
b) Yes. All rank-and-file employees are automatically in a position of trust and
confidence.
c) Yes, but only when the rank-and-file employee is estopped from claiming that
he is an ordinary rank-and-file employee.
d) No. Rank-and-file employees can never be in a position of trust and confidence.
BASIS: Martinez v. CENPELCO; Moya v. First Solid Rubber Industries, Inc.
200) ____________________ are those who in the interest of the employer effectively
recommend such managerial actions the exercise of which is not merely routinary or
clerical in nature but requires the use of independent judgment.
a) Rank and file employees

b) Managerial employees
c) Supervisory employees
RATIONALE: There are three classes of position of trust which are Fiduciary Rank and
file position, Managerial position and Supervisory position. Supervisory employees are
those who in the interest of the employer effectively recommend such managerial actions
the exercise of which is not merely routinary or clerical in nature but requires the use of
independent judgment.
Duka 7
ABALOS
1. Who has original and exclusive jurisdiction over all inter-union and intra-union conflicts?
a. The Bureau of Labor Relations.

b. The Labor Arbiter.
c. The National Labor Relations Commission.
d. Grievance machinery.
BASIS: Article 226 of the Labor Code provides: “The Bureau of Labor Relations and the
Labor Relations Divisions in the regional offices of the Department of Labor, shall have
original and exclusive authority to act, at their own initiative or upon request of either
or both parties, on all inter-union and intra-union conflicts, and all disputes, grievances
or problems arising from or affecting labor-management relations in all workplaces,
whether agricultural or non-agricultural, except those arising from the implementation
or interpretation of collective bargaining agreements which shall be the subject of
grievance procedure and/or voluntary arbitration.xxx” (Duka, p. 442).
2. The following are included in inter/intra-union disputes, except one:
a. Cancellation of registration of a labor organization filed by its members or by another

labor organization.
b. Conduct of election of union and workers’ association officers/nullification of election

of union and workers’ association officers;
c. Audit/accounts examination of financial support granted to the union by sponsors;
d. Deregistration of collective bargaining agreements.
BASIS: Under Section 1, Rule XI, D.O. No. 40-03, what is included in inter/intra-union
dispute is the audit/accounts examination of union or workers’ association funds, and
not of financial support granted to the union by sponsors (Duka, p. 443).
3. Who may file a complaint or petition involving intra/inter-union disputes or issues?
a. The employer.
b. The union head/s.
c. The union secretary.
d. Any legitimate labor organization or member (s) thereof.
BASIS: Section 4, Rule XI, D.O. No. 40-03 (Duka, p. 445).
AGUSTIN
4. The following are authorized to conduct preliminary conference in case of inter-union or
intra-union dispute:
a. Labor Arbiter, Secretary of Labor
b. Med-Arbiter, Hearing Officer
c. Bureau Director, Grievance Committee
d. Regional Director, Secretary of Justice
BASIS: Notice of Preliminary Conference - Within three (3) days from receipt of the
complaint or petition, the Med- Arbiter or Hearing Officer, as the case may be, shall
cause the service of summons upon the respondents named therein, directinng him/her
to file his/her answer/comment on the complaint or petition on or before the scheduled
preliminary conference and to appear before the Med-Arbiter or Hearing Officer on the
scheduled preliminary conference.
PAGE: 446-447, DUKA
5. Under the Labor Code, the , as the case may be, shall conduct a
preliminary conference and hearing within from receipt of the complaint or
petition. He/she shall exert every effort to effect an settlement of the dispute.
a. Med-Arbiter or Hearing Officer, 10 days, amicable
b. Regional Director, 15 calendar days, temporary
c. Secretary of Labor or Labor Arbiter, 10 calendar days, amicable
d. Bureau Director, 10 days, mandatory
BASIS: Conduct of Preliminary Conference - The Med-Arbiter or Hearing Officer, as the

case may be, shall conduct a preliminary conference and hearing within 10 days from
receipt of the complaint or petition. He/she shall exert every effort to effect amicable
settlement of the dispute.
PAGE: 447, DUKA
6. Statement I - The decision of the Med-Arbiter and Regional Director may be appealed to
the Office of the Secretary by any of the parties within 15 days from receipt thereof.
7. Statement II - The decision of the Med-Arbiter or Regional Director may be appealed to
the Bureau by any of the parties within 10 days from receipt thereof.
8. Statement III - The decision of the Bureau in the exercise of his/her original jurisdiction
may be appealed to the Office of the Secretary by any party within 10 days from receipt
thereof.
a. Only Statement II is not correct
b. Only Statement I is correct
c. Statement I, II, III is not correct
d. Statement I is not correct
BASIS: Appeal - The decision of the Med-Arbiter and Regional Director may be appealed
to the Bureau by any of the parties within ten (10) days from receipt thereof, copy
furnished the opposing party. The decision of the Bureau Director in the exercise of
his/her original jurisdiction may be appealed to the Office of Secretary by any of the
parties within the same period, copy furnished the opposing party.
PAGE: 447-448, DUKA
AMGAO
9. One of the two units comprising the Labor Relations Division is the ____________ which
conducts hearings and decides certification election or ___________ cases,
____________ and other related labor ___________ disputes.
a. Labor Organization and CBA Registration Unit, representation, unfair labor practice,
standards
b. NCMB, representation, inter/intra-union, relations
c. Med-Arbitration Unit, representation, inter/intra-union, relations
d. Med-Arbitration Unit, collective bargaining, representation, laws
BASIS: D.O. No. 40-03, Rule I, Section 1 (dd); Page 449 DUKA
10. A pending controversy exists between Luke, and his employer Skywalker Enterprises.
This pertains to Luke’s claim of unpaid wages and other monetary benefits which he
claims he is entitled to. May the parties enter into a compromise agreement?
a. No, parties are absolutely prohibited from entering into a compromise agreement as
the resolution of their controversy must be in the hands of the proper authority.
b. Yes, parties may enter into a compromise agreement to resolve a pending
controversy so long as it is made in good faith and voluntarily agreed upon by the
parties, which shall be valid and binding on the agreeing parties.
c. No, labor standards and labor relations cases are among the cases which cannot be
the subject of a compromise.
d. Yes, but the employers must always be more favored by such compromise
agreement.
BASIS: Art. 233, Labor Code; Chua v. NLRC, 190 SCRA 558, Page 451 DUKA
11. For the settlement of their claims against their employer Cloud 9 Corporation, the
employees signed the waivers and quitclaims after being presented with a reasonable
settlement of their claims. However, the employees suddenly decided to take further
legal actions, contending that waivers and quitclaims are invalid for being against public
policy and thus, have no force and not binding upon them. Are the employees correct?
a. Yes, they are correct, quitclaims are against public policy Thus, even with a reasonable
settlement of their claims, employees can always change their view on such waivers and
quitclaims.
b. No, not all waivers and quitclaims are invalid. If it shown that the agreement was
voluntarily entered into and that it represents a reasonable settlement, it is valid and
binding and may not later be disowned solely because of a change of mind.
c. Yes, they are correct, as the construction must be in favor of labor and since
quitclaims are invalid as against public policy, the decision of employees who later on
change their minds as to the execution of such waiver and quitclaim must be respected
as their rights must at all times, be protected.
d. No, the execution of waivers and quitclaims is encouraged by law
BASIS: Periquet v. NLRC; Garcia v. NLRC, GR No. 119649, July 28, 1997, DUKA Page 454
BALAJO
12. The following statements on Single Entry Approach (SeNa) are true, except I.
Single Entry Approach is an administrative approach to provide a speedy, impartial,
inexpensive and accessible settlement procedure for all issues/complaints arising from
employer-employee relations to prevent them from ripening into full blown disputes.
II. Under this approach, all labor and employment disputes shall undergo a 30-
day mandatory conciliation-mediation process to effect settlement among the
contending parties.
III. Request for SEnA can be filed at the Single Entry Assistance Desk (SEAD) in the
region where the employer principally operates. IV. SeNa covers issues on notices of
strikes or lockouts, or preventive mediation cases which shall remain with the National
Conciliation and Mediation Board (NCMB).
a. Statements II and IV
b. Statement II only
c. Statements III and IV
d. Statement IV only
e. None of the above
BASIS: Single Entry Approach (SeNa) is a 30-day mandatory conciliation-mediation which

seeks to provide a speedy, impartial, inexpensive, and accessible settlement services for
unresolved grievances and complaints arising from employer-employee relations (DO
No. 107-10). It was institutionalized in our labor dispute adjudication system upon the
enactment of Republic Act No. 10396.
It covers the following issues:

All issues arising from labor and employment which may include the following:
a) Termination or suspension of employment issues;
b) Claims for any sum of money, regardless of amount;
c) Intra-union and inter-union issues except petition for certification election,
after exhaustion of administrative remedies;
d) Unfair labor practices;
e) Closures, retrenchments, redundancies, temporary lay-offs;
f) OFW cases;
g) Occupational safety and health standards issues except those involving
imminent danger situation;
h) Issues arising from other labor and related issuances (OLRI)
i) Any other claims arising from employer-employee relationship; and
j) Cases falling under the administrative and quasi-judicial jurisdiction of all DOLE
offices and attached agencies, including NLRC.
But excludes the following issues in its coverage:

a) Notices of strikes or lockouts, or preventive mediation cases which shall
remain with the National Conciliation and Mediation Board (NCMB);
b) Issues arising from the interpretation or implementation of the collective
bargaining agreement and those arising from interpretation or enforcement of company
personnel policies which should be processed through the Grievance Machinery and
voluntary arbitration; and
c) Issues involving violations of the following permits, licenses or registrations:
(Alien Employment Permit (AEP), PRPA authority or license, Working child permit (WCP)
and violations of Republic Act No.9231 (Anti-Child Labor Law), Registration under
Department Order No. 18-02, POEA issued licenses under the Migrant Workers’ Act, as
amended, Professional license issued by the PRC, TESDA accreditations; and Other
similar permits, licenses or registrations issued by the DOLE or its attached agencies).
13. Downton Abbey Employees Association filed for a Petition for Certification Election with
the BLR. The BLR denied the same since the petition was filed before the 60-day
freedom period. Downton Abbey Employees Association contends that the petition
should be granted since the CBA was not registered. May BLR entertain the petition.
a. No, BLR should not entertain the petition whether the CBA is registered or not.
b. No, BLR cannot entertain the petition since contract bar rule dictates that PCE may
only be filed during the 60-day freedom period.
c. No, BLR cannot entertain the petition since contract bar rule dictates that PCE may
only be filed during the 60-day freedom period.
d. Yes, BLR may entertain the petition despite having been filed before the 60-day
freedom period since the failure to register the CBA warrants such filing.
BASIS: Under Article 238 of the Labor Code, the Bureau of Labor Relations shall not
entertain any petition for certification election or any other action which may disturb the
administration of duly registered existing collective bargaining agreements affecting the parties.
This rule does not apply in the following cases:
1. during the 60-day freedom period;
2. when the CBA is not registered with the BLR or DOLE Regional Offices;
3. when the CBA, although registered, contains provisions lower than the standards fixed by
law;
4. when the documents supporting its registration are falsified, fraudulent or tainted with
misrepresentation; chanrobles virtual law library
5.when the collective bargaining agreement is not complete as it does not contain any of the
requisite provisions which the law requires;
6. when the collective bargaining agreement was entered into prior to the 60-day freedom
period; chanrobles virtual law library
7. when there is a schism in the union resulting in an industrial dispute wherein the collective
bargaining agreement can no longer foster industrial peace
*** In TUPAS/FSM v. Laguesma (G.R. N. 95013, September 21, 1994), a PCE was denied where
there exists a CBA despite its belated filing or registration with the BLR or DOLE (failure to file
within the 30-day period from the date of the CBA’s execution). Non-compliance with the
procedural requirement should not adversely affect the substantive validity of the CBA.
14. The Bureau of Labor Relations has the following administrative functions, except:
I. Registration of labor unions

II. Keeping of registry of labor unions
III. Maintenance and custody of CBAs
IV. Keeping of records of settlement of labor disputes and orders and decisions of voluntary
arbitrators
a. Statement I only
b. Statements I and IV
c. Statement IV only
d. Statement II and III
BASIS: Article 237 of the Labor Code, enumerates the administrative functions of the
BLR which include the following: (1) registration of labor unions; (2) keeping of registry
of labor unions; (3) maintenance and custody of CBAs; and keeping of records of
settlement of labor disputes and orders and decisions of voluntary arbitrators.
The CBA shall be submitted to the BLR or the Regional Office within 30-days from its
execution. The submission shall be accompanied with verified proofs of its posting in two
conspicuous places in the place of work and ratification by the majority of all the workers in the
bargaining unit. The Bureau or Regional Offices shall act upon the application for registration of
such Collective Bargaining Agreement within five (5) calendar days from receipt thereof. The
Regional Offices shall furnish the Bureau with a copy of the Collective Bargaining Agreement
within five (5) days from its submission.
BALUBAR
15. When does a federation, national union or industry or trade union center or an
independent union acquire legal personality?
a. Upon the issuance of the certificate of registration

b. Upon its first convention/meeting
c. Upon election of officers
d. Upon registration with the Securities and Exchange Commission
(Article 240, pg. 462, DUKA)
16. It refers to any group of legitimate labor organizations operating within a specific
industry established for collective bargaining
a. Independent Labor Union

b. Industry Union
c. Company Union
d. Worker’s Association
(pg. 461, DUKA)

17. The following are requirements for application of an independent labor union except:
a. The name of all its members comprising at least 20% of the employees in the
bargaining unit
b. Annual financial reports if the applicant has been in existence for one or more
years
c. The applicant’s constitution and by-laws
d. Certificate of recognition from a chartered local of any federation or national
union
(Sec. 2(A), Rule III, D.O No. 40-03, pg. 465, DUKA)
BAUTISTA
18. Under the law, the application for registration of a __________ association operating in
more than one ___________ shall be __________, in addition to the requirements by a
resolution of membership of each member_________, duly approved by its board of
directors
a. workers, region, accompanied, association
b. employers, section, accompanied, association
c. leader, region, needed, faction
d. employed, region, accompanied, faction
Basis: Section 2(D), Rule III, D.0. No. 40-03 Page 465 Duka
19. Statement I: A legitimate labor organization has the right to act as the exclusive
representative of its members for collective bargaining
Statement II: A legitimate labor organization has the right to sue and be sued in its
registered name
Statement III: A legitimate labor organization has no right to own property, real or
personal property
Statement IV: A legitimate labor organization the right to undertake all other activities
to benefit the organization and its members
a, all of the statements are true
b. statements I and II are false
c. Statement III is false
d. All of the statements are false
Basis: Laguna Airports Corporation v DOLE Page 467 DUka
20. A duly registered federation or national union may ________ create a local chapter by
issuing a ________certificate indicating the establishment of the local chapter. The
chapter shall acquire ______personality only for purposes of filing a petition for
certification election from the ______it was issued a charter certificate.
a. directly, charter, legal, date
b. personally, charter, express, month
c. expressly, plan, legal, same day
d. impliedly, charter, legal, month
Basis: R.A. 9481 Page 470 Duka
BAUZON
21. A duly registered federation or national union may directly create a local/chapter after
submission to the DOLE or to the BLR of the following requirements, except:
a. A charter certificate issued by the federation or national union indicating the creation
or establishment of the local/chapter.
b. The names of the local/chapter’s officers, their addresses, and the principal office of
the local/chapter.
c. The local/chapter’s constitution and its by-laws without indicating that the said
constitution and by-laws are the same with those of federation or national union.
d. The requirements shall be certified under oath by the Secretary or the Treasury of the
local/chapter and attested to by the President.
BASIS: A duly registered federation or national union may directly create a local/chapter
by submitting to the Regional Office of the DOLE or to the Bureau of Labor Relations two
copies of the following: xxx. (3) The local/chapter’s constitution and by-laws; Provided,
That where the local/chapter’s constitution and by-laws is the same as that of the
federation or national union, this fact shall be indicated accordingly. xxx. (Article 241,
Labor Code) (p. 470-471, DUKA).
22. Lightborn Union (LU) is a local/chapter of Moniyan Empire National Union (MENU).
Determined to become a legitimate labor organization, Alucard, its president, sought
your legal advice. Which of the following advice is improper?
a. Lightborn Union must submit a charter certificate to the BLR, within 30 days from its
issuance by the Moniyan Empire National Union.
b. The constitution and by-laws, a statement on the set of officers, and the books of
accounts must be certified under oath by the secretary or treasurer, but need not be
attested by Alucard.
c. Lightborn Union must not submit false statements or misrepresentation to the BLR.
Otherwise, it is a ground for cancellation of registration, and likewise a ground for a
criminal charge of perjury.
d. The Lightborn Union need not comply with some of the requirements for registration
since it is a local or chapter of the Moniyan Empire National Union.
BASIS: A local or chapter becomes a legitimate labor organization only upon submission
of the following to the BLR: 1) A charter certificate, within 30 days from its issuance by
the labor federation or national union; and 2) The constitution and by-laws, a statement
on the set of officers, and the books of accounts all of which are certified under oath by
the secretary or treasurer, as the case may be, of such local or chapter, and attested to
by its president. (Article 241, Labor Code)
Issuance of any false statement and misrepresentation is not only a ground for
cancellation of registration; it is also a ground for a criminal charge of perjury (Phoenix
Iron and Steel Corporation v. Secretary of Labor and Employment, G.R. No. 112141, May
16, 1995).
When an unregistered union becomes a branch, local or chapter of a federation, some
of the requirements for registration are no longer required (Progressive Development
Corporation v. Secretary of Labor and Employment, G.R. No. 96425, February 4, 1992).
(p. 472-473, DUKA).
23. Jawhead Mech Union (JMU) is a local union affiliated with Chak National Union
(ChakNU). This year, JMU decided to disaffiliate with ChakNU. The following statements
are incorrect, except:
a. JMU does not owe its existence to ChakNU since it is a separate and distinct
voluntary association owing its creation to the will of its members.
b. Mere affiliation already divests JMU of its own personality and it gives ChakNU the
license to act independently of the local union.
c. The affiliation gives rise to a contract of agency, where JMU is considered as an agent
of ChakNU.
d. The local unions are no longer the basic units of association once affiliated.
BASIS: Local unions may separate from their mother federation on the ground that as
separate and voluntary associations, local unions do not owe their creation and
existence to the national federation to which they are affiliated but, instead, to the will
of their members (Liberty Cotton Mills Workers Union v. Liberty Cotton Mills, Inc., G.R.
No. L-33987, September 4, 1975, 66 SCRA 512).
Mere affiliation does not divest the local union of its own personality; neither does it
give the mother federation the license to act independently of the local union (Coastal
Subic Bay Terminal, Inc. v. DOLE-Office of the Secretary, G.R. No. 157117, November 20,
2006).
Local unions are considered principals while the federation is deemed to be merely their
agent (Coastal Subic Bay Terminal, Inc. v. DOLE-Office of the Secretary, G.R. No. 157117,
November 20, 2006).
The local unions remain the basic units of association, free to serve their own interest
subject to the restraints imposed by the constitution and by-laws of the national
federation xxx (Philippine Skylanders, Inc. v. NLRC, G.R. No. 127374, January 31, 2002).
(p. 474-475, DUKA).
BAYENG
24. Statement 1: The Bureau shall act on all applications for registration within 30 days from
filing.
Statement 2: All requisite documents and papers shall be certified under oath by the
secretary or the treasurer of the organization, as the case may be, and attested by its
president.
Statement 3: The Regional Office shall act on all applications for registration or notice of
change of name, affiliation, merger and consolidation within 10 days.
a. All Statements are True

b. All Statements are False
c. Statement 1 and 2 are True
d. Statement 1 and 3 are False
BASIS: Article 242 Labor Code, DUKA pages 475 -476
25. Statement 1: The decision of the Labor Relations Division in the Regional Office denying
the registration may be appealed by the applicant union to the Bureau.
Statement 2: The decision of the Labor Relations Division in the Regional Office denying
the registration may be appealed by the applicant union to the Bureau within 15 days
from receipt of notice
Statement 3: The form of denial of application or return of notice and appeal shall be in
writing stating in clear terms the reasons for the denial or return.

b. All Statement are False
d. Statement 1 and 3 are True
BASIS: Article 243 Labor Code, DUKA pages 476 - 4777
26. Statement 1: The report of creation of a chartered local shall be accompanied by a

acknowledgment issued by the federation or national union
Statement 2: Labor organizations operating within an identified industry may not apply
for registration as federation or national union.
Statement 3: The Bureau or the Office of the Secretary shall decide the appeal within 30
days from the receipt of the records of the case
b. All Statements are False
d. Statement 2 and 3 are True
BASIS: Article 244 Labor Code, DUKA pages 479 -480
BEDASUA
27. The following may constitute grounds for cancellation of union registration, EXCEPT:
a. Misrepresentation, false statement or fraud in connection with the adoption or
ratification of the constitution and by-laws or amendments thereto, the minutes
of ratification, and the list of members who took part in the ratification
b. Misrepresentation, false statements or fraud in connection with the election of
officers, minutes of the election of officers, and the list of voters
c. Voluntary dissolution by the members
d. Failure to submit list of individual members to the Bureau once a year or
whenever required by the Bureau
BASIS: Article 247 of the Labor Code, p. 484 DUKA
28. May the registration of a legitimate labor organization be cancelled by the organization
itself?
a. Yes, provided that at least two-thirds of its general membership votes for it in
a meeting and that an application for cancellation is submitted to the board
b. Yes, provided that at majority of its general membership votes for it in a meeting
and that an application for cancellation is submitted to the board
c. No, it may not be dissolved voluntarily by the organization itself
d. No, the organization may only be dissolved on the grounds provided for under
Article 247 of the Labor Code
BASIS: Article 248 of the Labor Code, p. 485 DUKA
29. Is the issuance of a certificate of registration in favor of a labor organization an

adequate and unassailable proof that it possesses the requisite legal personality to file a
Petition for Certification Election?
a. Yes, the issuance of certificate of registration is the ultimate proof that it has the
legal personality to file such petition
b. No, if the application for registration is vitiated by falsification and serious
irregularities, the labor organization has no legal personality to file the petition
and the labor organization must be denied recognition
c. Yes, as long as the certification of registration has already been issued, the labor
organization's legal personality to file such petition can no longer be directly or
collaterally attacked
d. No, it has no legal personality even if it has a certificate of registration if such
certificate has not been signed by all the members of the labor organization
BASIS: Progressive Development Corp. Pizza Hut v. Laguesma, p. 483 DUKA
CABALO
30.
31.
32.
CASTILLO
33. Which of the following is not correct regarding the Election of Union Officers?
a. The members shall directly elect their officers by secret ballot at intervals of five
years.
b. No qualification requirements for candidacy to any position shall be imposed other

than membership in good standing in subject labor organization
c. The secretary or any other responsible union officer must furnish the Secretary of
Labor with a list of the newly-elected officers within 30 calendar days after the election
d. Failure to submit the report to the Department of Labor under Sec 7, R.A. No.
9481 is a ground for the cancellation of union registration.
BASIS: Election of Union Officers, Page 492, DUKA
34. Which among the following is not among the three requisites for the validity of the
special assessment for union’s incidental expenses?
a. Authorization by a written resolution of the majority of all the members at the

general members meeting called for the purpose
b. Approval of the employer with the resolution passed by the majority of all the
members
c. Secretary’s record of the minutes of the meeting
d. Individual written authorization of the check off duly signed by the employees
concerned
BASIS: Special Assessment, Article 250, Page 495, DUKA
35. In Marino, Jr. v. Gamilla, the Supreme Court said that unlike the ______ which is
explicitly vested with the jurisdiction over claims for actual, moral, exemplary and other
forms of damages, the ______ is not specifically empowered to adjudicate claims of
such nature arising from intra-union or inter-union disputes.
a. NLRC, BLR
b. BLR, NCMB
c. NCMB, NLRC
d. NLRC, Secretary of Labor and Employment
BASIS: Marino, Jr. v. Gamilla, G.R. No. 132400, January 31, 2005, Page 498, DUKA
CAYATOC
36. Which of the following statements describe the right of legitimate labor organizations?
a. To act as the representative of its members for the purpose of collective

bargaining
b. To be certified as the exclusive representative of all the employees in an
appropriate bargaining unit for purposes of collective bargaining
c. To sue and be sued in its registered name
d. All of the statements
e. None of the statements
BASIS: Duka, Page No. 501. Labor Code, Article 242. To own property, real or personal,
for the use and benefit of the labor organization
37. One of the rights granted by the Labor Code to a legitimate labor organization is to sue
or be sued in its registered name. Which of the following statements is not correct
regarding representative suit /class suit in Labor cases?
a. Both “representative suit” and “class suit” are always filed in behalf of another
or others.
b. A ‘representative suit” is akin to a “class suit” in the limited sense that the
phrases found in Sec. 3 of Rule 3, “one or more may sue or defend for the
benefit of all,” and “the parties actually before it are sufficiently numerous and
representative,” are similar to the phrase “may sue or be sued without joining
the party for whose benefit the action is presented or defended” found in Sec. 3
of the same Rule.
c. The provision on Article 242 of the Labor Code regarding the right of a legitimate
labor organization to sue and be sued in its registered name, authorizes a union
to file a “representative suit” for the benefit of its members in the interest of
avoiding an otherwise cumbersome procedure of joining all union members in
the complaint, even if they number by the hundreds.
d. It was the function of the labor union to carry the representation of its
members. However, such functions exclude the filing of an action for their
benefit and behalf. It is necessary that each of the members must join as a
separate party.
BASIS: Duka, Page No. 500-501, Davao Free Workers Front v. Court of Industrial
Relations
38. Article 242 of the Labor Code provides that a legitimate labor organization shall have
the right to own a property. Which of the following statements is correct regarding such
right?
a. A legitimate labor organization shall have the right to own real and personal
property for the use of the officers of the labor organization, as well as for the
benefit of the employers.
b. The right of a labor organization to own a property is limited only to personal
property.
c. A legitimate labor organization shall have the right to own property, real or
personal, for the use and benefit of the labor organization and its members.
d. A legitimate labor organization shall have the right to own personal and real
property provided that majority of its members consent thereto.
BASIS: Duka Page No. 502. Labor Code, Article 242(d)
CORPUZ
39. Article 252 is a provision brought about by the passage and implementation of R.A. No.
9481 which lapsed into law on May 25, 2007 pursuant to the mandates of Article VII,
Section 27(1) of the 1987 Constitution. Failure to comply with the reportorial
requirements under Article 252 shall have the following effect:
a. It shall be a ground for cancellation of union registration but shall not subject the
erring officers or members to suspension, expulsion from membership, or any
appropriate penalty.
b. It shall not be a ground for cancellation of union registration but shall subject
the erring officers or members to suspension, expulsion from membership, or any
appropriate penalty.
c. It shall be a ground for cancellation of union registration and expulsion from
membership
d. It shall not be a ground for cancellation and shall not subject the erring officers
or members to suspension, expulsion from membership, or any appropriate penalty.
BASIS: Page no. 502 DUKA (Article 252- Reportorial Requirements)
40. The following are the groups of people who may join labor unions and workers’
associations:
a. All persons employed in commercial, industrial and agricultural enterprises
b. Employees of government-owned or controlled corporations without original

charters established under the Corporation Code
c. Employees of religious, charitable, medical or educational institutions whether

operating for profit or not
d. All of the above
BASIS: Page no. 504 (Who may join labor unions and workers’ associations)
41. The following are the groups of people whose right to self-organization is restricted by
the labor laws, except:
a. High ranking government employees
b. Employees of international organizations
c. Members of the AFP, PNP, firemen, jail guards, confidential employees
d. Employees of the cooperative who are members of that same cooperative
BASIS: Page no. 506 (Employees Who Do Not Have the Right to Self-Organization)
CUTA
42. Choose among the following whose right to self-organization is restricted by labor laws:
a. A Housing Regulation Officer VI of the DHSUD whose functions are to oversee
the works of her subordinates and make policy decisions;
b. A Jail Guard from the Baguio City Jail who keeps watch of prisoners 5 days a
week;
c. A staff employee of the United Nations Children’s Fund (UNICEF) who does
clerical work;
d. All of the above
BASIS: EO 180, page 506, DUKA
43. Tengo is an executive secretary of X company who is included in some closed-door

meetings with the management. He wants to be part of the company union. Is he
allowed?
a. Yes, because to do otherwise would be an act of discrimination which is an unfair
labor practice
b. Yes, because the union does not object to his being a member thereof
c. No, because all executive secretaries and similar high-paying positions are not
allowed to be members of the union
d. No, because he is a confidential employee whose community of interest is not
the same as that of other employees in the union.
BASIS: Manila Electric Comp v Quisumbing, page 511 DUKA
44. Which among the following is not restricted of their right to self-organization in terms of
a cooperative?
a. An employee who is also a co-owner and member
b. A member
c. A co-owner
d. An employee
BASIS: Cooperative Rural Bank of Davao v. Calleja, page 513 DUKA
DELA CRUZ
45. The security guards and other personnel employed by the security service contractor
shall have the right to ________,________, or ________ in the formation of a labor
organization of their own choosing for purposes of collective bargaining and to engage
in concerted activities which are not contrary to law including the right to strike.
a. form, join, assist
b. give, take, labor
c. make, enter, help

d. formulate, connect, support
BASIS: Section 10, D.O. No. 14, Series of 2001, December 2001
46. Joey, a security personnel in ABC company and was assigned to DEF bldg owned by ABC.
When their union declared strike, Joey neglected his duty and left his post. Is his action
valid?
a. Yes, in the event of a strike declared by their union, security personnel may neglect
or outrightly abandon their duties.
b. No, because it is his duty and he is not allowed to leave his post.
c. No, because he should be loyal to his employer.
d. Yes, because there is no work when there is strike.
BASIS: Meralco vs. Secretary of Labor, G.R. No. 91902, May 20, 1991
47. Which statements are correct?

I. Employees of government corporations established under the Corporation Code shall
have the right to organize and bargain collectively with their respective employers.
II. All other employees in the civil service shall have the right to form associations for
purposes not contrary to law.
III. Managerial employees are not eligible to join, assist or form any labor organization.
a. All statements are correct
b. I & II only
c. II & III only
d. I only
BASIS: Article 254 & Article 245, Title VII, Book V, Labor Code
DE VERA
48. I. Managerial employees are eligible to join, assist or form any labor organization.
II. Managerial employees are those who are vested with powers or prerogatives to lay
down and execute management policies.
III. Managerial employees fall in 2 categories; the managers per se composed of Top and
Middle Managers and supervisors who are the First-Line Managers
Which statement/s correct?

b. I and II are correct
c. III only is correct
d. II and III are correct.
Basis: Rule I, Sec 1(hh), D.O No. 40-3, Duka, p.517 & Paper Industries Corporation of the Phils v.
Laguesma, Duka, p. 518
49. Around 800 public school teachers joined a mass action. The mass action carried the
purpose of dramatizing and highlighting the teachers' plight resulting from the alleged
failure of the public authorities to act upon grievances that had time and again been
brought to the latter's attention. These grievances included, among other things,
clothing allowances, 13th month pay (1989), employment of new teachers to ease
overload work, reimbursement of real property taxes, increase in salary, and other
equally important demands. Is the mass action held by the public teachers be
considered as strike?
a. Yes. The mass actions held by the teachers shall be considered strikes because their
main purpose was the stoppage of or absence from work. Employees in public service
do not have the right to strike because this constitutes a disturbance in public service.
In addition, employment in the government is governed by law and the terms and
conditions of employment are affected through statutes and administrative rules and
regulations, not by collective bargaining agreements. In this case the teachers
absented from their work to participate in the mass action that was happening on a
Monday.
b. No. The underlying issue here is due process; not whether the petitioners have a right
to strike, which it is clear they do not, however justifiable their reasons, nor whether
there was in fact such a strike, it being equally evident from the pleadings that there
was, and there being no dispute about this. What, therefore, is brought before the
Court is the question of whether or not any rights of the petitioners under the due
process clause of the Constitution as it applies to administrative proceedings were
violated in the initiation, conduct, or disposition of the investigations complained of.
c. Yes. The mass actions held by the teachers shall not be considered strikes because
their main purpose was the stoppage of or absence from work. Employees in public
service have the right to strike because this constitutes a disturbance in public service.
In addition, employment in the government is governed by law and the terms and
conditions of employment are affected through statutes and administrative rules and
regulations, by collective bargaining agreements.
d. Yes. The underlying issue here is whether the petitioners have a right to strike, which
it is clear they do, however justifiable their reasons, nor whether there was in fact such
a strike, it being equally evident from the pleadings that there was, and there being no
dispute about this. What, therefore, is brought before the Court is the question of
whether any rights of the petitioners under the due process clause of the Constitution
as it applies to administrative proceedings were violated in the initiation, conduct, or
disposition of the investigations complained of.
Basis: MPSTA v Laguio G.R. No. 95445, Duka, p. 517
The SC declared that the mass actions staged by the public teachers from Sept 17 to 19,
were all intents and purposes a strike, they constituted a concerted and unauthorized
stoppage of, or absence from, work, which it was the teacher’s sworn duty to perform,
undertaken for essentially economic reasons it denied the petition, since the right to
strike did not extend to civil service employees.
50. A petition for certification of election among rank-and-file employees of X company was
filed with the Department of Labor in Davao City. The Med- Arbiter issued an order
calling for holding of certification elections. The managerial employees, supervisors,
employees under confidential/ special payrolls and employees not paying union dues
are disqualified for voting certification election. Are the contested employees
disqualified by express provision of law or under the existing CBA to vote the
certification election?
a. No. Only the managerial employees are disqualified.

b. No. Only the managerial employees are qualified.
c. No. Only managerial employees and supervisors are disqualified.
d. Yes. All of them are disqualified by law.
Basis: Southern Philippines Federation of Labor v. Calleja, G.R. No. 80882, Duka, p. 518. The SC
upheld the validity of the CBA as the law among the parties but its provision cannot override
what is expressly provided by law that ONLY MANEGERIAL employees are ineligible to join,
assist, or form any labor organization. The High Court declared that regardless of the challenged
employees’ designations, whether they are employed as Supervisors or in the definition of
“managerial” as defined in the Labor Code, they are eligible to be members of the bargaining
unit and to vote in the certification election. Their right to self-organization must be upheld in
the absence of an express provision to the contrary. It cannot be curtailed by a CBA.
DULNUAN
51. 1. Qualify the following statements
I. When there is Unfair Labor Practice the civil (administrative) aspect and
the criminal aspect may be filed simultaneously in one complaint with the regular trial
courts.
II. The offended party in an Unfair Labor Practice case instituted a civil or
administrative proceeding then subsequently filed a criminal proceeding. The civil or
administrative proceeding shall be suspended; it will only continue once the criminal
case has attained finality
III. The final judgment in a criminal case for ULP is a condition precedent for the
filing of the civil or administrative proceeding.
IV. The prescriptive period for the civil or administrative aspect shall be 2 years
from the accrual of the Unfair Labor Practice
a. Statement II and III is correct
b. Only Statement IV is correct
c. Only Statement IV is incorrect
d. All of the Statements is Correct
e. None
Basis: The criminal proceeding is suspended once the Civil or administrative aspect is
filed. The criminal proceeding will only continue once the administrative case has
attained finality. The final judgment in the administrative proceeding (civil aspect)
finding ULP is a pre requisite in the filing of the criminal case for ULP. However, the final
judgment in the civil case is only a condition precedent for the filing of the criminal case
and is not binding and cannot be used as evidence in the criminal case for ULP.
Art. 247 of the Labor Code Duka Pp. 524-525
2. It shall be unlawful for any person to ____________, ___________,

___________against or unduly interfere with employees and workers in their exercise of
the right to self-organization. Such right shall include the right to form, join, or assist
labor organizations for the purpose of collective bargaining through representatives of
their own choosing and to engage in lawful concerted activities for the same purpose for
their mutual aid and protection, subject to the provisions of Article 264 of this Code.
a. Restrain, coerce, discriminate
b. Refrain, constrain, differ
c. Restrict, compel, distinguish
d. Retain, coerce into, disfavor
Basis: Art. 246 Labor Code of the Philippines; DUKA Page 522
Art. 246. Non-abridgment of right to self-organization. It shall be unlawful for any

person to restrain, coerce, discriminate against or unduly interfere with employees and
workers in their exercise of the right to self-organization. Such right shall include the
right to form, join, or assist labor organizations for the purpose of collective bargaining
through representatives of their own choosing and to engage in lawful concerted
activities for the same purpose for their mutual aid and protection, subject to the
provisions of Article 264 of this Code.
3. What is the effect of Inclusion as Members of Employees Outside the Bargaining

Unit?
a. The Registration of the Union shall be cancelled
b. The Officers of the Union shall be liable for Unfair Labor Practice
c. The Member Employees are automatically removed from the list of membership of
said union
d. All of the Choices above
Basis: Duka p.521
The inclusion as union members of employees outside the bargaining unit shall not be a
ground for the cancellation of the registration of the union. Said employees are
automatically removed from the list of membership of said union.Clearly then, for the
purpose of de-certifying a union, it is not enough to establish that the rank-and-file
union includes ineligible employees in its membership. Pursuant to Article 239 (a) and
(c) of the Labor Code, it must be shown that there was misrepresentation, false
statement or fraud in connection with the adoption or ratification of the constitution
and by-laws or amendments thereto, the minutes of ratification, or in connection with
the election of officers, minutes of the election of officers, the list of voters, or failure to
submit these documents together with the list of the newly elected-appointed officers
and their postal addresses to the BLR. (Air Philippines v. BLR, June 22, 2006)
EDUARTE
52. Clary Fray was employed by The Shadowhunter Weapons Factory. Prior to her
employment, Hodge, its general manager, made Clary sign a contract stipulating that
she will be granted tenure if she will not join, assist, form, or even attempt to foster any
union in the factory. What act did Clary’s employer commit, if any?
a. Unfair labor practice in the form of a blue-sky bargaining.

b. Unfair labor practice in the form of a yellow dog contract.
c. Unfair labor practice in the form of a company unionism.
d. Unfair labor practice in the form of discrimination of unions.
BASIS: A yellow dog contract is an undertaking by the employees that as a condition for
employment they will not join, assist, form, or even attempt to foster a union for the
duration of their employment with the employer [Duka, 2019, p. 529].
53. The Shadowhunter Weapons Factory was found guilty of unfair labor practice upon a
complaint filed by its union, The Shadowhunters Union, when the latter discovered that
said employer made its new hires sign a contract stipulating that they will be granted
tenure if they will not join, assist, form, or even attempt to foster any union in the
factory. On appeal, The Shadowhunter Weapons Factory’s assailed such decision
primarily on the ground that its guilt for ULP was not sufficiently established by proof
beyond reasonable doubt. Is the employer correct?
a. No, because in order to show that the employer committed ULP, mere substantial
evidence is required to support the claim.
b. Yes, because being criminal in nature, the employer’s alleged commission of ULP
must be proven by proof beyond reasonable doubt.
c. No, because in order to show that the employer committed ULP, mere preponderance
of evidence is required to support the claim.
d. Yes, because being criminal in nature, the employer’s alleged commission of ULP
must be proven by testimonial and documentary evidence to that effect.
BASIS: It was held in Standard Chartered Bank Employees Union [NUBE] vs. Confesor,
G.R. No. 11497, that in order to show that the employer committed ULP under the
Labor Code, substantial evidence is required to support the claim. In this regard,
substantial evidence has been defined as such relevant evidence as a reasonable mind
might accept as adequate to support a conclusion [Duka, 2019, p. 528].
54. Valentine Morgenstern, owner of The Shadowhunters Weapons Factory, seething with
deep jealousy because his childhood sweetheart Jocelyn Fray is now married to Lucian
Graymark, union head of The Shadowhunters’ Union, gave financial and other support
to the organizers and supporters of said union, on the condition that they will use it to
finance the needs of the union and take credit for it to the exclusion of Lucian, so that
Lucian will look like a weak, incompetent, and inefficient union leader and thereby
humiliate him among his fellow union members. Is there any sanction provided by law
for Valentine’s actions?
a. Yes. Under the Labor Code, an employer is prohibited from initiating, dominating,
assisting, or otherwise interfering with the formation or administration of any labor
organization, including the giving of financial or other support to it or its organizers or
supporters.
b. None. The Labor Code does not prohibit employers from providing financial support
to union members as long as they benefit from it and because it only exhibits the
employer’s graciousness and generosity which is not deemed unlawful by law.
c. Yes. Under the Revised Penal Code, a man is not allowed to interfere with the
relationship of a married woman lest it constitutes adultery.
d. None. The Labor Code does not prohibit employers from providing financial support
to union members as long as the employer does not directly do so. As such, employers
are allowed under the Code to provide financial support through the union’s organizers
or supporters.
BASIS: The Labor Code, specifically Article 259 (d), expressly prohibits the employer
from initiating, dominating, assisting, or otherwise interfering with the formation or
administration of any labor organization, including the giving of financial or other
support to it or its organizers or supporters [Duka, 2019, p. 530].
GATCHALLAN
55. It is the failure or refusal on the part of the management to give counter proposals,
making them go through the motions of negotiating without any legal intent to reach an
agreement.
a. Surface Bargaining
b. Multi-employer Bargaining
c. Blue-Sky Bargaining
d. Single-Enterprise Bargaining
Basis: Surface Bargaining defined, page 533-534 DUKA (Standard Chartered Bank
Employees Union vs. Confesor, G. R. No. 114974, June 16, 2004).
56. It is the failure or refusal on the part of the union to give a counter proposal through
the act of making an exaggerated or unreasonable proposal.
a. Surface Bargaining
b. Multi-employer Bargaining
c. Blue-Sky Bargaining
d. Single-Enterprise Bargaining
Basis: Blue-Sky Bargaining defined, page 533 DUKA (Standard Chartered Bank
Employees Union vs. Confesor, G. R. No. 114974, June 16, 2004/ Arthur A. Sloane and
Fred Witney, Labor Relations, 7th Edition 1991, p. 195)
57. It is an industrial plant moved by its owners from one location to another to escape
union labor regulations or state laws. It may also be a relocation motivated by anti-
union animus rather than for business reasons.
a. Run-away Shop
b. Closed Shop
c. Union Shop
d. Agency Shop
Basis: Run-away shop defined, page 532 DUKA (Complex Electronics Employees
Association [CEEA] v. NLRC, G.R. No. 121315, July 19, 1999)
GAWE
58. Hector, a stalwart employee and an outstanding and charismatic member of the union
drew the ire of Achilles, the president of the registered labor organization in the company.
The latter, seeing Hector as a threat to his position as the head of the union, made
concessions to the employer in order to terminate Hector from employment on political
grounds, that is, if Hector eventually replaced Achilles as the leader of the union, the
harmony in the workplace might be affected. Eventually, Hector was terminated from his
employment. Hector filed a complaint against the employer and the union for unfair labor
practice. The union, on its part, contended that it cannot be the subject of said complaint
because it is only the employer who can be made liable for unfair labor practice. Is the
contention tenable?
a. Yes, because it is the management who has the power to dismiss employees from
service and not the union.
b. No, because Hector’s dismissal was caused by the union leader and not on the
instance of the management per se.
c. Yes, because fair dealing is not equally demanded of unions as well as of

employers in dealing with their employees.
d. No, because a labor union may also be held liable under Article 260 for Unfair Labor
Practice
Basis: Heirs of Cruz v. Court of Industrial Relations, G.R. Nos. L-23331-31, December 27,
1969 (“If the courts can strike down unjust exploitation of laborers by oppressive
employers, so will it strike down their unfair treatment by their own unworthy leaders.”)
Page 535, Duka
59. An employer filed a case of ULP, more specifically “featherbedding” against the union for
the latter’s attempt to exact payment for services that are unneeded and unwanted by
the employer but still performed by the workers. Is such an act of the union considered
featherbedding?
a. No, because the provision of the Labor Code on ULP does not outlaw securing
payment for work already performed (make-work).
b. Yes, because Article 260 (d) of the Labor Code, as amended outlaws such act of
the union.
c. No, because the demand by the union was not predicated on the nature of
exaction for services which are not performed or not to be performed.
d. Yes, because the work performed was unneeded and wanted by the employer.
Basis: As its wording makes clear, Article 260(d) of the Labor Code, as amended, outlaws
causing or attempting to cause an employer to pay for services "not performed or not to
be performed." It does not outlaw securing payment for make-work - i.e., for services that
are unneeded or unwanted, but performed.
Page 535, Duka
60. What is the purpose of Union Security Clauses?
a. Its purpose is to secure the existence and continuity of the union for the sole
benefit of the employees.
b. It is permitted by law in order to exemplify the social legislation embodied in the

Constitution.
c. The union security clauses are mutually beneficial to the employers and the labor
unions. It is also a means of self-preservation because it strengthens the union through
selective acceptance of new members on the basis of commitment and loyalty.
d. The union security clauses provide the union some remedy against its erring
members.
Basis: The union security clauses are mutually beneficial to the employers and the labor
unions. It provides protection to shield union members from whimsical and abusive
exercise of management prerogatives. Union security clauses grant benefits in the sense
that additional union membership will insure additional source of income to the union
from union dues and special assessment. It is also a means of self-preservation because
it strengthens the union through selective acceptance of new members on the basis of
commitment and loyalty.
Page 536-537, Duka
GURION
61. Teddy hired Mr. Bean who is a member of the contracting union based on the closed-
shop agreement. Mr. Clean thought that the agreement was illegal. Is Mr. Clean correct?
a. No. The Congress, in the exercise of its power, approved closed shop agreement, in
Section 4, subsection (a), paragraph 4 of R.A. No. 875. It is a valid form of union
security and is not a restriction of the right of freedom of association guaranteed by
the Constitution.
b. Yes. A closed shop agreement is a restriction of the right of freedom of association
guaranteed by the Constitution.
c. Yes. The closed-shop provision justifies the employer in discharging, or a union in

insisting upon the discharge of, an employee whom the union thus refuses to admit to
membership, without any reasonable ground thereof.
d. Both b and c
BASIS: Ange Malayang Manggagawa ng Ang Tibay Enterprise v. Ang Tibay, et al., G.R.
No. L-8259, December 23, 1957; Lirang Textile Mills, Inc. v. Blanco, G.R. No. L-2709,
November 12, 1981; page 537 Duka
62. Why did the state promote the Union Shop Agreement?
a. It is in line with the policy of the state to promote unionism by allowing the worker to
go his own separate way instead of joining his co-employees in planning collective
action.
b. It is to present a united front when they sit down to bargain with their employers on
unequal level and with the least persuasiveness than if they were to individually and
independently bargain for the improvement of their respective conditions.
c. It is a means of encouraging the workers to join and support the labor union of their
own choice as their representative in the negotiation of their demand and the
protection of their interest vis-à-vis the employer.
d. All of the above.

BASIS: Liberty Flour Mills Employees v. Liberty Flour Mills, Inc., Philippine Labor Alliance
Council (PLAC), G.R. Nos. 58768-70, December 29, 1989 page 538-539 Duka
63. Rudy, without the benefit of a hearing, dismissed Bong based on the union's
recommendation for termination of his employment. Under the union's investigation,
Bong is guilty of disloyalty. According to Rudy, under the Maintenance of Membership
provision of the Collective Bargaining Agreement, he is bound to dismiss any employee
upon formal request of the union due to failure to maintain the membership. Is the
dismissal of Bong valid?
a. Yes. The maintenance of membership clause provides that although it does not
require non-members to join the union, it provides that those who do join must
maintain their membership for the duration of the union contract, under penalty of
discharge.
b. Yes. The employer is bound by the Agreement. The union may demand application of
the Union Security Clause of the then existing Collective Bargaining Agreement.
c. No. The employer is bound to exercise caution in terminating the services of his
employee especially so when it is made upon the request of a labor union pursuant to
the Collective Bargaining Agreement. Dismissals must not be arbitrary and capricious.
Due process must be observed in dismissing an employee because it affects not only
his position but also his means of livelihood.
BASIS: Carino vs. NLRC G.R. No. 91086 May 8, 1990; page 539 Duka
IGOY
64. A group of employees in XYZ Factory belonging to a religious sect, in conformity with the
teachings and dictates of their religion, refused to join the labor union in the factory. The
officers of the union demanded their termination from the company pursuant to the
"closed shop" provision in the CBA. Should the company comply with the union's demand
of terminating the members of the religious sect?
a. Yes. Closed shop is that agreement embodied in a collective bargaining agreement

whereby the employer binds itself not to hire any person unless he is first a union member
of the collective bargaining representative. The employees belonging to the religious sect
must be terminated for refusing to join the union.
b. Yes. The obligatory force of the contract prevails and its terms should be carried out to
its full effect.
c. No. The right to join includes the right not to join by reason of religious beliefs.
Members of said religious sect cannot be compelled or coerced to join the labor union
even when the union has a closed shop agreement with the employer, that in spite of any
closed shop agreement, members of said religious sect cannot be refused employment or
dismissed from their jobs on the sole ground that they are not members of the collective
bargaining union.
d. Both A and B are correct.
Basis: Victoriano v. Elizalde Rope Workers' Union, G.R. No. L-25246, September 12,1974,
Page 540 Duka
65. The following requisites constitute just cause for terminating an employee based on the
CBA’s union security provision, except:
a. the union security clause is applicable
b.the union is requesting for the enforcement of the union security provision in the CBA
c. there is sufficient evidence to support the union's decision to expel the employee from
the union.
d. none of the above.

Basis: Alabang Town and Country Club v. NLRC, February 14, 2008, Page 541 Duka
66. _____________ is an agreement whereby an employer binds himself to hire only

members of the contracting union who must continue to remain members of the union
in good standing for the duration of the agreement as a condition for _____________.
While _____________ does not require non-members to join the union but provides that
those who do join must maintain their membership for the duration of the union contract,
under penalty of dismissal.
a. Maintenance of membership clause, continued employment, closed shop
b. Closed shop, continued employment, maintenance of membership clause
c. Closed shop, attaining regular employment, maintenance of membership clause
d. Check-off clause, continued employment, maintenance of membership clause
Basis: BPI v. BPI Employees Union-Davao Chapter-Federation of Unions in Bpi Unibank,

August 10, 2010, Page 542 Duka
JIMENEZ
67. ____ is a method of settling dispute/s be submitting the controversy before an
arbitrator or panel of arbitrators chosen by both parties. He shall render a decision after
proper hearing of the issues and decision after proper hearing of the issues and decision
thereof shall be final and binding on the contending parties.
a. Voluntary arbitration
b. Check-off
c. Labor Education
d. Interpretation clause
BASIS: Article 261 Labor Code, page 546 DUKA
68. A _____ is a contract executed upon request by either the employer or the exclusive
bargaining representative incorporating the agreement reached after negotiations with
respect to wage, hours of work and all other terms of employment including proposals
for adjusting any grievances or questions arising from such agreement.
a. Contract Bar Rule
b. Labor Negotiations
c. Collective Bargaining Agreement
d. Employee-Employer Relationship
Basis: Rivera vs. Espiritu , GR No. 135547 Jan. 23, 2002. Page 544 DUKA
69. Which of the following is correct in observing the procedures in collective bargaining?
a. When a party desires to negotiate an agreement, it shall serve a written notice upon
the other party with a statement of its proposals. The other party shall make a reply
thereto not later than 10 calendar days from receipt of such notice.
b. When a party desires to negotiate an agreement, it shall serve a written notice upon the
other party with a statement of its proposals. The other party shall make a reply thereto
not later than 15 calendar days from receipt of such notice.
c. When a party desires to negotiate an agreement, it shall serve a written notice upon the
d. When a party desires to negotiate an agreement, it shall serve a written notice upon the
Basis: Article 250 of the LAbor code, page 548 DUKA
KIDKID
70. The following procedures shall be observed in collective bargaining:
i. A party who desires to negotiate an agreement shall serve a written notice upon the
other party with a statement of its proposals.
ii. The other party shall reply thereto not later than 10 calendar days from receipt of
such notice.
iii. A conference may be called by either party in case differences arise on the basis of
such notice and reply. The conference shall begin not later than 10 calendar days from
the date of request.
iv. If the dispute is not settled, the NCMB shall intervene upon request of either or both
parties or its own initiative and immediately call the parties to conciliation meetings.
The NCMB shall have the power to issue subpoenas requiring the attendance of the
parties to such meetings. It shall be the duty of the parties to fully and promptly comply
in the conciliation meetings NCMB may call.
v. During the conciliation proceedings in the NCMB, the parties are prohibited from
doing any act which may disrupt or impede the early settlement of the disputes.
vi. The NCMB shall exert all efforts to settle disputes amicably and encourage the parties
to submit their case to a voluntary arbitrator.
a. i,ii,iii,iv,v,vi
b. ii,i,v,iii,iv,vi
c. iv,i,ii,iii,vi,v
d. iii,ii,i,vi,v,iv
Basis: Procedures for Collective Bargaining, DUKA pg 547
71. The purpose of collective bargaining is the acquisition or attainment of the best possible
covenants or terms relating to ______________ and ______________ benefits granted
by employers and due to employees. The Labor Code has actually imposed , as a
______________ ______________ of both parties, this duty to bargain collectively.
a. economic , non-economic, mutual obligation

b. financial, governmental, solidary obligation
c. economic, governmental, social obligation
d. financial, non-economic, joint obligation
Basis: Purpose of Collective Bargaining , DUKA pg 546
72. Which among the following statement/s is/are correct?

i. The collective bargaining as prescribed by the Code is mandatory because of the
interest of the state in ensuring lasting industrial peace.
ii. The duty to bargain does not include the obligation to reach an agreement.
iii. Good faith or bad faith is an inference to be drawn from the facts, to be precise, the
crucial question of whether or not a party has met his statutory duty to bargain in good
faith typically turns on the facts of the individual case.
iv. A party who desires to negotiate an agreement shall serve a written notice upon the
other party with a statement of its proposals.
a. i,ii,iii,iv
b.i,ii,iv are correct
c. Only statement i is correct
d. none of the statements are correct.
Basis: DUKA, page 546, 547, 549
LAWAGUEY
73. The following legitimate labor union(s) and employers may agree in writing to come
together for the purpose of collective bargaining in multi-Employer Bargaining, except:
a. only legitimate labor unions who are incumbent exclusive bargaining agents may
participate and negotiate in multi-employer bargaining.
b. only those legitimate labor unions who are members of the same registered
federation, national, or industry union are exempt from execution of written
agreement.
c. only those legitimate labor unions who pertain to employer units who consent to
multi-employer bargaining may participate in multi-employer bargaining.
d. only employers with counterpart legitimate labor unions who are incumbent
bargaining agents may participate and negotiate in multi-employer bargaining.
Basis: Duka, page 551, Section 5, Rule XVI, D.O. No. 40-03, Multi-Employer Bargaining
74. The following are the mechanics of collective bargaining is set in motion only when the
following jurisdictional preconditions are present, except:
a. possession of the status in accordance with any of the means of selection or designation
provided for by the Labor Code.
b. proof of majority representation.
c. a demand to bargain under Article 251, paragraph (a) of the New Labor Code
d. written notice with its proposals for collective bargaining
Basis: Duka, pages 549-550, Jurisdictional Preconditions in Collective Bargaining
75. 3. Which are the following is correct regarding the stages in collective bargaining?
a. (1) Preliminary, (2) Negotiation, (3) Execution, (4) Publication, (5) Registration, (6)
Ratification, (7) Administration, (8) Interpretation and application.
b. (1) Preliminary, (2) Negotiation, (3) Execution, (4) Publication, (5) Ratification, (6)
Registration, (7) Administration, (8) Interpretation and application
c. (1) Preliminary, (2) Negotiation, (3) Administration, (4) Publication, (5) Ratification, (6)
Registration, (7) Execution, (8) Interpretation and application
d. (1) Preliminary, (2) Negotiation, (3), Publication (4) Execution, (5) Ratification, (6)
Registration, (7) Administration, (8) Interpretation and application
Basis: Duka, pages 552-553, Stages in Collective Bargaining
PINAYAKAN
76. What is true about the effects of non-registration of the CBA?
a. A CBA that is not registered as mandated by Article 237 remains valid and
binding between the parties (employer and the union) however, it may not be
used to apply the contract bar rule as provided in Article 238 and prevent any
legitimate labor union from filing petition for certification election.
b. A CBA that is not registered as mandated by Article 237 remains valid and binding
between the parties (employer and the union) however, it may be used to apply
the contract bar rule as provided in Article 238 and prevent any legitimate labor
union from filing petition for certification election.
c. A CBA that is not registered as mandated by Article 237 remains valid and binding
between the parties (employer and the union) however, it may not be used to
apply the contract bar rule as provided in Article 238 and it will not prevent any
legitimate labor union from filing petition for certification election.
d. A CBA that is not registered as mandated by Article 237 remains valid and binding
between the parties (employer and the union) however, it may not be used to
apply the contract bar rule as provided in Article 238 and prevent any legitimate
labor union from filing petition for unfair labor dispute.
Basis: Page 556
Effects of non- registration of CBA.
A CBA that is not registered as mandated by Article 237 remains valid and binding
between the parties (employer and the union) however, it may not be used to apply the
contract bar rule as provided in Article 238 and prevent any legitimate labor union from
filing petition for certification election.
77. When shall the certificate of registration of collective bargaining agreement be issued by
the regional office?
a. The certificate of registration of collective bargaining agreement shall be issued
by the regional office upon payment of the prescribed registration fee (p
1,000.00)
b. The certificate of registration of collective bargaining agreement shall be issued
by the regional office before payment of the prescribed registration fee (p
1,000.00)
c. The certificate of registration of collective bargaining agreement shall be issued
by the regional office even without payment of the prescribed registration fee (p
1,000.00)
d. The certificate of registration of collective bargaining agreement shall be issued
by the regional office before and even without payment of the prescribed
registration fee (p 1,000.00)
Basis: Page 555
Payment of registration fee
The certificate of registration of collective bargaining agreement shall be issued by the

regional office upon payment of the prescribed registration fee (p 1,000.00)
78. Who has the responsibility to post copies of collective bargaining agreement?
a. Employer
b. Employee
c. Union officers
d. Labor arbiter
Basis: Page 553
Posting of CBA is Employer’s Responsibility.
79. In the first place the posting of the copies of the collective bargaining agreement is the
responsibility of the employer which can easily comply with the requirement through a
mechanical act.
80.
PALSIW
81. What does “Duty to Bargain Collectively” means?
a. it means the performance of a mutual obligation to meet and to convene

promtply and expeditiously in good faith for the purpose of negotiating an
agreement.
b. It is an offer or counter-offer that is not meant to be negotiated.
c. Where the parties are mandated by law to keep the status qou and to
continue with full force and effect the terms and conditions of the exisiting CBA.
d. It is the time when the parties may terminate or modify the terms and
conditions of the CBA.
PAGE: 557 DUKA
BASIS: G.R. No. 141471September 18, 2000COLEGIO DE SAN JUAN DE LETRAN,

petitioner,vs.ASSOCIATION OF EMPLOYEES AND FACULTY OF LETRAN and
ELEONOR AMBAS,”Art. 252. Meaning of duty to bargain collectively. - The duty to
bargain collectively means the performance of a mutual obligation to meet and
convene promptly and expeditiously in good faith for the purpose of negotiating
an agreement with respect to wages, hours of work and all other terms and
conditions of employment including proposals for adjusting any grievances or
questions arising under such agreement and executing a contract incorporating
such agreements if requested by either party but such duty does not compel any
party to agree to a proposal or to make any concession. Noteworthy in the above
definition is the requirement on both parties of the performance of the mutual
obligation to meet and convene promptly and expeditiously in good faith for the
purpose of negotiating an agreement.
82. What is the lifetime of a Collective Bargaining Agreement?
a. Both the economic and non-economic provision of the CBA has a term of 5 years
b. Both the economic and non-economic provision of the CBA has a term of 3 years
c. The CBA has a lifetime of three years, while the other provisions (economic)
shall be effective for 3 years from the date of execution.
d. The CBA has a lifetime of five years, from the time of its effectivity, while the
other provisions (economic) shall be effective for 3 years from the date of
execution.
PAGE: 563 DUKA

BASIS:Art. 253-A. Terms of a collective bargaining agreement. Any Collective
Bargaining Agreement that the parties may enter into shall, insofar as the
representation aspect is concerned, be for a term of five (5) years. No petition
questioning the majority status of the incumbent bargaining agent shall be
entertained and no certification election shall be conducted by the Department of
Labor and Employment outside of the sixty-day period immediately before the
date of expiry of such five-year term of the Collective Bargaining Agreement. All
other provisions of the Collective Bargaining Agreement shall be renegotiated not
later than three (3) years after its execution. Any agreement on such other
provisions of the Collective Bargaining Agreement entered into within six (6)
months from the date of expiry of the term of such other provisions as fixed in
such Collective Bargaining Agreement, shall retroact to the day immediately
following such date. If any such agreement is entered into beyond six months, the
parties shall agree on the duration of retroactivity thereof. In case of a deadlock
in the renegotiation of the Collective Bargaining Agreement, the parties may
exercise their rights under this Code. (As amended by Section 21, Republic Act No.
6715, March 21, 1989)
83. This phrase under Article 253 of the Labor Code which states “However, either party can
serve a written notice to terminate or modify the agreement at least sixty (60) days prior
to its expiration date” is refered to as?
a. Contract Bar Rule
b. Freedom Period
c. Negotiation Period
d. Automatic Renewal Clause
PAGE: 559 DUKA
BASIS: This rule simply provides that a petition for certification election or a
motion for intervention can only be entertained within 60 days prior to the expiry
date of an existing collective bargaining agreement. Otherwise put, the rule
prohibits the filing of a petition for certification election during the existence of a
collective bargaining agreement except within the freedom period, as it is called,
when the said agreement is about to expire. The purpose, obviously, is to ensure
stability in the relationship of the workers and the management by preventing
frequent modifications of any collective bargaining agreement earlier entered into
by them in good faith and for the stipulated original period. (Associated Trade
Unions (ATU) v. Trajano, G.R. No. 75321, June 20, 1988).
RAZON
84. Under this rule, a certification election cannot be held if there is in force and effect a
collective bargaining agreement that has been duly registered with the Department of
Labor and Employment except during the freedom period of such CBA which is the 60-
day period prior to the expiry date of said CBA.
a. Contract bar rule
b. Community of interest rule
c. Deadlock bar rule
d. Certification bar rule
BASIS: Section 3, Rule IX, DUKA, pages 567-568
85. This refers to the last 60 days immediately preceding the expiration of the CBA.
a. Freedom period
b. Cooling-off period
c. Prescriptive period
d. Freeze period
BASIS: PWUP v. Laguesma, March 18, 1992, DUKA, page 569.
86. This refers to any agreement on such other provisions of the CBA entered into within six
months from the date of expiry of the term of such other provisions as fixed in such
CBA, shall retroact to the date immediately following such date.
a. automatic retroaction clause
b. automatic renewal clause
c. retroaction clause
d. renewal clause
BASIS: Art. 253-A, Labor Code, DUKA, pages 570-571
SAGAMLA
87. Which of the following statements about substitutionary doctrine is/are correct?
I. Even during the effectivity of a collective bargaining agreement executed between the
employer and the employees through their agent, the employees can change their agent but the
contract continues to bind them up to its expiration date.
II. The employees cannot revoke the validly executed collective bargaining contract with
their employer by the simple expedient of changing their bargaining agent.
III. The employees, through their new bargaining agent, cannot renege on their collective
bargaining contract, except to negotiate with management for the shortening thereof.
IV. The justification for the substitutionary doctrine was “that the majority of the employees,
as an entity under the statute, is the true party in interest to the contract, holding rights through
the agency of the union representative”. Thus, any exclusive interest claimed by the agent is
defeasible at the will of the principal
V. The substitutionary doctrine can be invoked to support the contention that a newly
certified CBA automatically assumes all the personal undertaking like a no-strike stipulation.
a. Statements I, II, III, IV
b. Statements II, III, IV, V
c. Only statement V
d. Statements IV and V only
e. All of the above
Basis: Duka pages 572-574 -The substitutionary doctrine
88. In the case of San Miguel Corporation v. NLRC (G.R. No. 99266, March 2, 1999).
Collective Bargaining Deadlock was defined as “the between the labor
and management of the company where there is in the collective bargaining
negotiations resulting in a “
a. situation, failure, stalemate

b. stalemate, situation, failure
c. agreement, addition, compromise
d. compromise, addition, agreement
Basis: Duka p.574.
The case of San Miguel Corporation v. NLRC (G.R. No. 99266, March 2, 1999). Collective
Bargaining Deadlock was defined as “the situation between the labor and management
of the company where there is failure in the collective bargaining negotiations resulting
in a stalemate.
89. The regular courts may acquire jurisdiction over a labor case. Which of the following
statements correctly corroborate said jurisdiction acquisition by regular courts?
I. Jurisdiction of the court is determined on the basis of the material allegations of the
complaint and the character of the relief prayed for irrespective of whether the plaintiff is
entitled to such relief.
II. Where the principal relief sought is to be resolved not by reference to the Labor Code or
other labor relations statute or a collective bargaining agreement but by the general civil law, the
jurisdiction belongs to the regular courts of justice and not to the labor arbiter and the NLRC.
III. In a case where compulsory retirement age is questioned, the grievance machinery and
voluntary arbitrators do not have the jurisdiction and competence to decide the constitutional
and relative issues therein.
IV. Actions between employees and employer where the employer-employee relationship
is merely incidental, and the cause of action precedes from a different source of obligation is
within the exclusive jurisdiction of the regular courts.
a. Only statement II is correct
b. Statements I and III only
c. Statements I, II, III only
d. All of the statements are correct
e. All of the statements are wrong
Basis: Duka pages 578-580- The regular courts may acquire jurisdiction over a labor case.
Not every dispute between an employer and employee involves matters that only labor
arbiters and the NLRC can resolve in the exercise of their adjudicatory or quasi-judicial
powers.
Halaguena v. PAL, G.R. No. 172013, October 2, 2009
SANTOWEN
90. What is the rule on exclusive bargaining representation? And worker’s participation in
policy making?
a. The labor organization designated or selected by the majority of the
employees in an appropriate collective bargaining unit shall be the exclusive
bargaining representative of the employees. Workers shall have the right to
participate in policy and decision making of the establishment where they are
employed, subject to the rules and regulations promulgated by the SOLE.
b. The labor organization selected by the employer of the employees in an
appropriate collective bargaining unit shall be the exclusive bargaining
representative of the employees. Workers shall not have the right to participate
in policy and decision making of the establishment where they are employed.
c. The labor organization designated or selected by all of the employees of the
company shall be the exclusive bargaining representative of the employees.
Workers shall have the limited right to participate in policy and decision making
of the establishment where they are employed,
d. The labor organization designated or selected by the Secretary of Labor and
Employment shall be the exclusive bargaining representative of the employees.
Workers shall have the right to participate in policy and decision making of the
establishment where they are employed with the supervision of the employer
e. None of the above.
BASIS: Article 267, of the Labor Code of the Philippines. Exclusive Bargaining Representation
and Workers’ Participation in Policy and Decision MakingDuke, page 581
91. This is the rule which simply states that the community or affinity of employees’
interests, such as substantial similarity of work and duty, or similarity of compensation
and working conditions in a unit is the determining factor whether or not these
employees belong to one bargaining unit.
a. The Community of Interest Rule
b. The Control Test Rule
c. The Four-Folds Rule
d. The Rule of Dominion
e. The Bargaining Unit Interest Rule
BASIS: Philips Industrial Development Inc. v. NRLC, GR. NO.88957, June 25, 1992, Duke, page
585.
92. In International School Alliance of Educators v. Quisumbing, the Supreme Court states
the four factors in determining the appropriate collective bargaining unit. What are
they?
a. Will of the employees’ employer; affinity and community of the employees’
personal interest, such as substantial similarity of work and duties or similarities,
or similarity of compensation and working conditions; prior collective bargaining
history; and similarity of employment status.
b. Will of the employees; affinity and unity of the employees’ interest, such as
substantial similarity of work and duties, or similarity of compensation and
working conditions; prior collective bargaining history; and similarity of
employment status.
c. Globe doctrine; passion and affinity of the employees’ interest, such as
substantial similarity of work and duties, or similarity of compensation and
working conditions; prior collective bargaining history; and similarity of
employment status.
d. Globe doctrine; affinity and unity of the employees’ interest, such as substantial
similarity of work and duties, or similarity of compensation and working
conditions; prior collective bargaining history; and similarity of performance
status.
BASIS: International School Alliance of Educators v. Quisumbing, GR. NO. 128845, June 1, 2000,
The factors in determining the appropriate collective bargaining unit. Duke, pages 583-584.
SAQUIBAN
93. Which of the following statements are true about the certification election?
I. The purpose of a certification election is precisely the ascertainment of the
wishes of the minority of the employees in the appropriate bargaining unit.
II. Certification election is necessary even with the existence of voluntary recognition
by the employer of the union concerned and even if the employees designate a
union as their bargaining representative.
III. The Labor Code provisions on the conduct of certification election are precisely
for the protection of the right of the employees to determine their own bargaining
representative.
IV. Employers are strangers to the proceedings of certification election so long as
their rights are not hampered.
a. Statements I, II, and III are true

b. Statement IV is partly true
c. Only statement I is true
d. Only statement III is true
e. All statements are true
Basis: Page 590 Duka in relation to Article 268 of the Labor Code. The purpose of a
certification election is precisely the ascertainment of the wishes of the majority of the
employees in the appropriate bargaining unit, and not minority. Consequently,
certification election is no longer necessary when there is a voluntary recognition by the
employer of the union concerned and if the employees have designated a union as their
bargaining representative. Further, the employers, as strangers to the proceedings of
certification election, are not conditional and not dependent on circumstances.
94. Maria is a probationary employee of Jubilee Foods Corporation. However, she, together
with 20 other probationary employees, did not join any of the existing unions of
employees in the company and neither did they participate in the previous conduct of
certification election. Their reason for not joining in any union is merely on religious
grounds. They all belong to Templo Soloista de Independiente which prohibits its
members from joining, forming, or assisting labor organizations. A year after, the
incumbent bargaining representative filed a petition for certification election with the
Bureau of Labor Relations alleging that it no longer enjoys the support of the majority of
the rank-and-file employees due to mass resignation of its members. The petition was
approved and a certification election was scheduled to be conducted. On the conduct of
the election, the group of Maria was prohibited to cast their votes on the ground that
they are not members of any of the contending unions and that they did not participate
in the previous certification election. Is the prohibition or their denial to vote proper?
a. Yes, because their non-participation in the previous certification election has the
consequential effect of disqualification to participate in the succeeding
certification election.
b. No, because their nominal number will not in any way affect the result of the
certification election nor disenfranchise the members of the winning union.
c. Yes, because they are still probationary employees and their employment status
in the company is uncertain to the effect that they will not benefit in the collective
bargaining agreement later on if they will not become permanent employees of
the company.
d. No, because the prohibition will amount to violation of the right of the
employees concerned to self-organization.
Basis: Page 591-582 Duka in relation to Article 268 of the Labor Code. The non-
participation of employees in previous certification election based on religious grounds
shall not disqualify them in succeeding certification elections regardless of their number.
Their right to participate in the conduct of certification election is not even dependent on
their employment status. All rank-and-file employees in the bargaining unit, probationary
or permanent, have substantial interest in the selection of bargaining representative. Any
prohibition or denial to any of the employees of their right to cast votes is in violation of
their right to self-organization and it is an unfair labor practice on the part of the employer
or labor organization involved.
95. The following should be stated in the petition for certification election:
I. The name of the petitioner, its address, and disaffiliation if appropriate.
II. The exact number of employees in the bargaining unit.
III. A statement indicating that if another union had been previously recognized
voluntarily or certified in a valid certification, consent or run-off election, that the
petition is filed within the one-year period from entry of voluntary recognition or
conduct of certification or run-off election and no appeal is pending thereon.
IV. The signature of at least twenty percent (20%) of all employees in the appropriate
bargaining unit shall be attached to the petition at the time of its filing in the case
of an organized establishment.
a. Only statement II is correct

b. Only statement III is correct
c. Both statements II and III are correct
d. All statements are correct
e. All statements are incorrect
Basis: Page 594-595 Duka in relation to Article 268 of the Labor Code. The petition for
certification election, among others, should contain the following: (a) the name of the
petitioner, its address, and affiliation if appropriate, not disaffiliation; (b) the approximate
number of employees in the bargaining unit, not necessarily exact; (c) a statement
indicating that if another union had been previously recognized voluntarily or certified in
a valid certification, consent or run-off election, that the petition is filed outside (not
within) the one-year period from entry of voluntary recognition or conduct of certification
or run-off election and no appeal is pending thereon; (d) The signature of at least twenty-
five percent (25%) (not 20%) of all employees in the appropriate bargaining unit shall be
attached to the petition at the time of its filing in the case of an organized establishment.
SIBAYAN
96. Qualify the following statements
Statement 1: The employer shall not act as a by-stander in order to prevent harassment,
intimidation, threat or coercion by employees during and after the conduct of certificate
election
Statement 2: Within forty-eight (48) hours from receipt of notice of entry of final
judgment granting the conduct of a certification election, the Regional Director shall
cause the raffle of the case to an Election Officer who shall have control of the pre-
election conference and election proceedings
Statement 3: Within forty-eight (48) hours from receipt of the assignment for the
conduct of a certification election, the Election Officer shall cause the issuance of notice
of pre-election conference upon the contending unions and the employer, which shall
be scheduled within ten (10) days from receipt of the assignment.
Statement 4: Failure of any party to appear during pre-election conference despite

notice shall not be considered as a waiver to be present and to question or object to any
of the agreements reached in such pre-election conference.
a. All statements are incorrect
b. Statement 1 and 2 is correct
c. Statement 3 and 4 is correct
d. Statement 1 and 3 is correct
e. Statement 2 and 4 is correct
Basis: Secs. 1-3, Rule IX, D.O. No. 40-I-15

DUKA Page 599-600

Statement 1: Election officer shall keep the minutes of matters raised and agreed upon
during the pre-election conference. The party shall acknowledge the completeness and
correctness of the entries in the minutes by affixing their signatures thereon. Where any
of the parties refused to sign the minutes, the election officer shall note such fact in the
minutes, including the reason for refusal to sign the same. In all cases, the party shall be
furnished a copy of the minutes.
Statement 2: The pre-election conference, should be completed within 30 days from the
date of the first hearing. All employees who are members of the appropriate bargaining
unit 3 months prior to the filing of the petition or request shall be eligible to vote
employee has been dismissed from work but has contested the legality of the dismissal in
a forum of appropriate jurisdiction at the time of the issuance of the order for the conduct
of a certification election shall be considered a qualified voter, unless his or her dismissal
was declared valid in a final judgment at the time of the conduct of the certification
election.
Statement 3: In case of disagreement over the purchase list part over the eligibility of
voters, while contested both there shall be allowed to vote back their vote shall be
segregated in sealed in an individual envelopes in accordance with sections 11 and 12
work this rule.
Statement 4: The new rule has explicitly stated that without a final judgement declaring
the legality of dismissal, dismissed employees are eligible or qualified voters.

b. Statement 1 and 2 is incorrect
c. Statement 3 and 4 is incorrect
d. Statement 1 and 4 is incorrect
e. Statement 2 and 3 is incorrect
Basis: Secs. 4,10, Rule IX, D.O. No. 40-I-15; Yokohama Tire Philippines Inc. v. Yokohama
Employees Union, G.R. Mo. 159553
DUKA Page 600-601

Statement 1: In a certification election, only permanent rank and file employees in the
appropriate bargaining unit are allowed to vote, with the exception of probationary
employees and supervisory employees, because only they have a substantial interest in
the selection of the bargaining representative.
Statement 2: The number of qualified voters at the time of the certification electron is
used to determine the existence of quorum
Statement 3: The posting of the notice of election, the information required to be included
therein and the duration of posting cannot be waived by the contending unions or the
employer.
Statement 4: If there is any opposition to the representation officers ruling that the
question valid was spoiled, it should have done so seasonably during the canvas of the
votes because failure or inaction to assail such ballots validity shall not be deemed a
waiver of any defect or irregularity arising from said election.
b. Statement 1 and 2 is incorrect
c. Statement 3 and 4 is incorrect
d. Statement 1 and 4 is incorrect
e. Statement 2 and 3 is incorrect
Basis: Article 255, Labor Code; National Union of workers in hotel-Manila pavilion v.
Secretary of Labor and employment, G.R. No. 181531; St. James school of Quezon City
v. Samahang Manggagawa sa St. James school of Quezon City, G.R. No. 151326,
November 23, 2005; Sec. 11 D.O. No. 40-I-15; Algire v. De Mesa, G.R. No. 97622, October
19, 1994.
DUKA Page 601-605
TAROMA
99. Can a “no union” win in a certification election?
a. Yes, because no one is to be compelled to choose a labor union.
b. No, a “no union” is not even a choice in a run-off election
c. Yes, if this choice gets the majority of all the valid votes cast.
d. Yes, the right to join carries with it the right not to choose any labor union
.
BASIS: 2006 BAR Examination; DUKA page 608
A “no union” as a choice in a certification election can win if this choice gets the
majority of all the valid votes cast.
100. What will happen if a petition for certification election is filed outside the
freedom period.
a. It could still be entertained because the 30 day freedom period can be extended
to 30 days.
b. It does not have any effect after all the word freedom period suggests you have
the freedom to file it anytime.
c. It could still be entertained because the 60 day freedom period can be extended
to 60 days
d. It shall be dismissed outright.
BASIS: Duka Page 611; Any petition filed before or after the 60-day freedom period shall
be dismissed outright (PWUP v Laguesma, G. R. Nos 94929-30)
101. Statement 1: Once the negotiation for a new CBA has been commenced, a
petition for certification election may no longer be entertained by the DOLE.
Statement 2: A certification election cannot be held within 60 days from the date of
issuance of declaration of a final certification election result.
a. Statement 1 is correct.
b. Statement 2 is correct.
c. Both statements are correct
d. Both statements are incorrect.
BASIS: DUKA page 609 and 607. Statement 2 is incorrect. A certification election cannot
be held within 1 year from the date of issuance of declaration of a final certification election
result.
TORRES
102. The management of Company X committed a violation of the CBA. Thus, Union X
which negotiated the existing CBA charged the company with unfair labor practice for
the violation of the CBA. Is violation of a CBA is considered as unfair labor practice?
a. Yes. All violations of the CBA are considered as unfair labor practice
b. No. Only “gross” violations of the CBA are treated as unfair labor practice
c. Yes. Since the violation of the CBA was committed by the employer, hence, it is
an unfair labor practice
d. Yes. Any violation of the CBA is considered as unfair labor practice
BASIS: Article 274 of the Labor Code; Duka, page 625

103. Employer X committed a gross violation of the Collective Bargaining Agreement
for malicious refusal to comply with the economic provisions of the CBA. The collective
bargaining representative of the employees argues that such gross violation falls within
the jurisdiction of the Labor Arbiter and the NLRC because it is considered as unfair
labor practice. Is this correct?
a. Yes. Gross violations of the CBA are cognizable by the Labor Arbiter and the
NLRC because it is considered as unfair labor practice under Article 248.
b. No. Gross violations of the CBA fall within the jurisdiction of the Voluntary
Arbitrator or panel of Voluntary Arbitrators.
c. No. Gross violations of the CBA are not ULP, therefore, do not fall within the
jurisdiction of the Labor Arbiter and the NLRC.
d. No. Gross violations of the CBA must be referred first to the grievance
machinery.
104. There was a dispute between the employers and the collective bargaining
representative concerning the interpretation or implementation of their Collective
Bargaining Agreement. The jurisdiction to hear and decide the grievances arising from
the implementation or interpretation of the CBA falls within the jurisdiction of:
a. National Labor Relations Commission
b. Voluntary arbitrator or panel of voluntary arbitrator if named and designated
in advance in the CBA
c. Grievance machinery first, if unresolved within seven days, they shall be
automatically referred to voluntary arbitration
d. The employer will resolve the grievance
WAYAH
105. Joey works as a Tour Guide 1 in a museum and earns P15,000 a month. His friend
and supervisor Ross earns P18,000 a month. Due to a wage order, the salary of Joey was
increased to P19,000. The bargaining agent for supervisory employees signed a new CBA
with the employer for a P500 increase in the salary of supervisors. Ross says that despite
an increase. The supervisory union then submitted the issue of their wage to the
voluntary arbitrator. Does the voluntary arbitrator have jurisdiction?
a. Yes. The voluntary arbitrator has jurisdiction over wage distortion cases in
organized establishments.
b. No. The voluntary arbitrator does not have jurisdiction because issues of wage
distortion must be brought before the labor arbiter.
c. No. The voluntary arbitrator does not have jurisdiction over the implementation
of the wage order issued by the DOLE.
d. Yes. The voluntary arbitrator has jurisdiction because he needs to side with the
union.
BASIS: PI Manufacturing, Inc. vs. PI Manufacturing Supervisors and Foreman Association

(G.R. No. 167217, February 4, 2008), 2009 Bar Question; page 641 DUKA
106. In a dispute concerning a CBA provision where the employer shall grant a
birthday leave for union members, the voluntary arbitrator issued a decision in favour of
the employees. Feeling that the birthday leave is ridiculous and not needed, the
employer filed a motion for reconsideration 10 days after the decision. When it received
an order denying the motion for reconsideration, the employer filed an appeal before
the CA 3 days after receipt of the denial of the motion. The employees claim that the
appeal may not be entertained because Art. 276 of the Labor Code states that the
decision of the voluntary arbiter shall be final and executor 10 days after receipt. May
the appeal be allowed?
a. Yes. The 10-day period under Art. 276 refers to the period wherein the
aggrieved party may file for a motion for reconsideration. If such motion was
denied, the aggrieved party may file for an appeal within 15 days.
b. No. Art. 276 is clear that the decisions of the Labor Arbiter becomes final and
executor after 10 days.
c. Yes. The appeal should be allowed because the grant of a birthday leave is not
one of the requirements imposed upon employers under the Labor Code.
d. None of the above.
BASIS: Guagua National Colleges vs. CA ( G.R. No. 188492, August 28, 2018); page 637-
638, DUKA
107. The voluntary arbitrator issued a decision in favour of employees represented by
Amy in a case against their employer Sheldon, concerning the interpretation of a
provision in their Relationship Agreement (CBA) wherein the employer granted a weekly
date night incentive, allowing workers to go home an hour earlier to give them more
time with their families and loved ones. Thinking that the decision is wrong since date
night incentive should not be granted to workers who are single, Sheldon filed a petition
for certiorari under Rule 65 before the CA. Is the mode of appeal proper?
a. No. Appeals from the decisions of the voluntary arbiter may be filed to the CA
under Rule 43 within 15 calendar days.
b. Yes. Appeals from the decisions of the voluntary arbiter may be filed under Rule
65 if the decision amounts to lack or excess of jurisdiction.
c. Yes. The appeal should be allowed because it concerns an exercise of
management prerogative.
BASIS: Guagua National Colleges vs. CA ( G.R. No. 188492, August 28, 2018); page 637,
DUKA
Ungos 7
1. The Med-Arbiter will proclaim the election results and certify the winning union as the
collective bargaining agent if:
Statement 1: no protest has been filed within the five-day period from the close of the election
proceedings; and
Statement 2: no challenge or eligibility issue was raised, or if one was raised, the resolution of
the same will not materially alter the election results.
a. Statement 1 is False
b. Statement 2 is True
c. Both statements are False
d. Both statements are True
Basis: The Med-Arbiter will proclaim the election results and certify the winning union as the
collective bargaining agent if:
(1) no protest has been filed within the five-day period from the close of the election proceedings;
and
(2) no challenge or eligibility issue was raised, or if one was raised, the resolution of the same will
not materially alter the election results. (Ungos, p. 350)
2. If negotiations result in a deadlock, the parties can do any of the following courses of action
except:
I: Bring the matter to the NCMB for conciliation and mediation;
II: Submit the matter for arbitration; or
III: Declare a strike or lockout
a. I only
b. I and II
c. I, II, and III
Basis: Courses of Action In Case of Deadlock
If the parties are unable to agree on the terms of the collective bargaining agreement, a deadlock
will ensue. If negotiations result in a deadlock, the parties can do any of the following courses of
action:
(1) Bring the matter to the NCMB for conciliation and mediation;
(2) Submit the matter for arbitration; or
(3) Declare a strike or lockout (Ungos, p. 351)
3. The following statements are true, except:
Statement I: If the parties are able to come to an agreement on the terms of the CBA, the union
officers and the representatives of the management will sign the CIA.
Statement II: After signing, the CRA should be posted for five days in at least two conspicuous
places in the establishment. This is a mandatory requirement. The purpose of this is to inform
the covered employees about the terms and conditions of the CBA.
Statement III: Ten days after posting, the CBA should be submitted to the employees covered by
the collective bargaining unit for ratification.
a. Statement I only
b. Statement II only
c. Statement III only
d. Statements I, II and III
Basis: Signing of the CBA
If the parties are able to come to an agreement on the terms of the CBA, the union officers and
the representatives of the management will sign the CIA
Posting of CBA
After signing, the CRA should be posted for five days in at least two conspicuous places in the
establishment. This is a mandatory requirement. The purpose of this is to inform the covered
employees about the terms and conditions of the CBA.
Ratification of CBA
Five days after posting, the CBA should be submitted to the employees covered by the collective
bargaining unit for ratification. (Ungos, p. 352)
4. Within _____ days from the execution of a CBA, the parties shall submit copies of the same
directly to the Bureau or the Regional Offices of the DOLE for registration accompanied with
verified proofs of its posting in two conspicuous places in the place of work and ratification by
_____ of the workers in the bargaining unit.
a. 30; majority
b. 15; all
c. 10; two-thirds
d. 5; minority
BASIS: Article 237 of the Labor Code (Ungos, page 353)
5.Which of the following statement/s is or are correct?
I. A duly registered CBA will not bar the filing of a petition for certification election by any union.
II. If there is a duly registered CBA, a petition for certification election can only be filed after the
freedom period.
a. Both statements are correct.

b. Only I is correct.
c. Only II is correct.
BASIS: Articles 238 and 265 of the Labor Code (Ungos page 353)
6. If there is a duly registered CBA, filing of a petition for certification election will be allowed only
during the _____-day period prior to the expiry of the _____-year term of the CBA.
a. 60; 10
b. 30; 5
c. 60; 5
d. 30; 10
BASIS: Article 265 of the Labor Code (Ungos page 355)
7. The 60-day period is called the freedom period because it is during this time when
a. a union member can validly resign from the union
b. a local union can disaffiliate from its mother federation
c. the parties can seek the termination or modification of the existing CBA
d. all of the above
Basis: AG&P vs Laguesma, 212 SCRA 281 (Ungos, p. 356)
8. The following statements are true regarding the “substitutionary doctrine”, except
a. employees cannot revoke a validly executed CBA
b. the new collective bargaining agent is obliged to respect the CBA
c. the employees may change their bargaining agent, but the CBA continues to bind them
d. the collective bargaining agent is obligated to assume the personal undertaking of the former
collective bargaining agent
Basis: The new collective bargaining agent is not obliged to assume the personal undertaking of the
former collective bargaining agent e.g. no-strike stipulation (Benguet Consolidated Inc. vs. BCI
employees union 23 SCRA 465.) (Ungos, p. 357)
9. Although the term of a collective bargaining agreement is set at five years, the parties can renegotiate
the agreement not later than
a. two years after its execution
b. 1 year 6 months after its execution
c. 4 years after its execution
d. 3 years after its execution
Basis: ART. 265 Terms of Collective Bargaining Agreement- all other provisions of the Collective
Bargaining Agreement shall be renegotiated not later than three (3) years after its execution. (Ungos,
p. 358)
10. This principle states that in the absence of a new CBA, the parties must maintain the status
quo and must continue to observe the terms and conditions of the existing agreement until a
new agreement is reached.
a. Hold-over principle
b. Status quo principle
c. Continuity principle
d. Holding-on principle
Basis: Article 264, Labor Code. (Ungos, p. 359)
11. The right of employees to participate in policy and decision-making is confined only to
processes that directly affect:
a. the employees' rights, benefits, and welfare.

b. the employer's business operations or management of business.
c. the provisions of the collective bargaining agreement.
d. the traditional areas of collective bargaining.
Basis: Art. 267, Labor Code. (Ungos, p. 360)

12. Individual employees have the right to directly present their grievances to the employer on
the following conditions, except:
a. The grievance is individual in nature.

b. The adjustment of the grievance does not contravene the terms of the CBA.
c. The bargaining agent must be given the opportunity to be present during the adjustment.
d. The grievance must be brought up during the freedom period only.
Basis: Art. 267, Labor Code. The individual employee or group of employees shall have the right
at any time to present grievances to their employer. (Ungos, p. 361)
13. Which grievances are cognizable by the grievance machinery?
a. Those arising from the interpretation or implementation of their CBA.

b. Those arising from the interpretation and enforcement of company personnel policies.
c. Violations of a CBA which are not gross in character.
BASIS: Article 273 and 274 of the Labor Code; (Ungos, p. 362)
14. This refers to a system whereby the parties agree to refer their dispute to an impartial third
person for a final and binding resolution.
a. Grievance
b. Voluntary arbitration
c. Mediation and Conciliation
d. Compulsory Arbitration
BASIS: Voluntary arbitration is a system whereby the parties agree to refer their dispute to an
impartial third person for a final and binding resolution. It differs from compulsory arbitration in
the sense that in compulsory arbitration, the third party is appointed by the government. (Ungos,
p. 363)
15. The following are the jurisdictional preconditions of voluntary arbitration, except:
a. The dispute should first be brought to the grievance machinery for resolution.
b. The shop steward brings the grievance to the employee’s immediate supervisor.
c. The grievance machinery failed to resolve the dispute.
d. The parties agree to submit the dispute for voluntary arbitration.
BASIS: The jurisdictional preconditions of voluntary arbitration are as follows: 1) The dispute
should first be brought to the grievance machinery for resolution; 2) The grievance machinery
failed to resolve the dispute; and 3) The parties must agree to submit the dispute for voluntary
arbitration. (Ungos, p. 363-364)
16. Voluntary arbitrators have original and exclusive jurisdiction over the following, except:
a. Unresolved grievance arising from interpretation or implementation of a CBA or

interpretation or enforcement of company personnel policies.
b. Wage distortion disputes in organized establishments.
c. Disputes arsing from interpretation and implementation of the productivity incentive
programs under RA 6971.
d. None of the choices
BASIS: Article 274 and 124 of the labor code, and Section 9 of RA 6971 (Ungos, p. 365).
17. Statement 1: Voluntary arbitrators can also exercise jurisdiction over other labor disputes,
such as termination disputes, complaints for ULP or deadlock in collective bargaining
negotiations, even if one of the parties do not agree to submit the matter to voluntary arbitration.
Statement 2: Voluntary arbitration acquires jurisdiction over the dispute upon receipt of the
submission agreement duly signed by the union or employees.
a. Statement 1 is incorrect ; Statement 2 is correct

b. Statement 1 is correct ; Statement 2 is incorrect
c. Both statements are correct
d. Both statements are incorrect
BASIS: Statement 1: There must be an express agreement on both parties to submit the matter
to voluntary arbitration before voluntary arbitrators can exercise jurisdiction over such labor
dispute.. (See San Miguel Corporation V. NLRC, 255 SCRA 133)
Statement 2: The Rules governing the proceedings before a voluntary arbitrator or panel of
voluntary arbitrators shall be the subject of the agreement among the parties to a labor dispute/s
and their chosen arbitrator. In the absence of agreement on any or various aspects of the
voluntary arbitration proceedings, the pertinent provisions of these Guidelines and the Revised
Rules of the Court shall apply by analogy or in a directory or suppletory character and effect.
(Section 3 of the Procedural guidelines in the conduct of voluntary arbitration proceedings.)
(Ungos, p. 366)
18. Decisions or awards of voluntary arbitrators are appealable to?
a. Court of Appeals under Rule 43 of the rules of court

b. National Labor Relations Commission
c. Court of Appeals through special civil action for certiorari
d. All of the above
BASIS: AMA Computer College V. Nacino, 544 SCRA 502 (Ungos, p. 367)
19. ____________ is any temporary stoppage of work by the concerted action of employees
because of a labor dispute.
a. Lockout
b. Picketing
c. Strike
d. Mass resignation
Basis: Article 219 (o), Labor Code as amended; Lapanday Workers v. NLRC, 248 SCRA 95 (Ungos,
p. 368)
20. Labor dispute includes any ___________ or matter concerning ______________ of

employment or the association or representation of persons in negotiating, fixing, maintaining,
changing, or arranging the terms and conditions of employment, regardless of whether the
disputants stand in the proximate relation of employer and employee.
a. Settlements; contract
b. Alternative dispute resolutions; conditions
c. Controversy; terms or conditions
d. questions; issues
Basis: Article 219 (l) of the Labor Code (Ungos, p. 369)
21. Which of the following is a legal ground for declaring a strike?
a. Inter-union dispute
b. Intra-union dispute
c. Collective bargaining deadlock
d. Violation of labor standards
Basis: There are only two legal grounds for declaring a strike, namely: (1) collective bargaining
deadlock; and (2) unfair labor practice (ULP). (Ungos, p. 370)
22. What are the mandatory requirements of a strike?
a. Notice of strike, strike vote and strike vote report.

b. Notice of strike, approval of NCMB, cooling-off period report
c. Aprroval of NCMB, strike vote report
d. No requirements as long as all Union members agreed
Basis: (Ungos, p. 371)
23. In this case, it was held that even as the union is given the authority to immediately strike
without exhausting the cooling-off period, it is still obliged to observe the mandatory
requirements of a strike.
a. Sukothai Cuisine and Restaurant vs CA

b. NFSW vs Ovejara
c. Union of Filipino Employees vs Nestle
d. Samahang Manggagawa sa Sulpicio Lines vs Sulpicio Lines.
Basis: Sukothai Cuisine and Restaurant vs CA 495 SCRA 336 (Ungos, p. 372)
24. The union can declare strike only when the dispute is not settled after the lapse of the :
a. Cooling-off period and seven day strike ban.

b. 15 days strike ban.
c. Cooling-off for the period of 9 days
Basis: The seven day strike ban is the seven day period reckoned from the date the strike vote
report was submitted to the NCMB (Ungos, p. 373)
25. Choose the best statement that corresponds with the provisions of the Labor Code.
a. Strikes, picketing, and lockouts shall be allowed in hospitals, clinics and similar institutions
b. The assumption by the Secretary of Labor within 24 hours in the dispute resulting in the
strike, picketing and lockout has no basis in law.
c. Should strike be inevitable, the striking union must provide and maintain an effective
skeletal workforce of medical and health personnel whose movement and services shall
be unhampered.
d. Strikes, picketing, and lockouts shall be discouraged because of their effects on life and
health.
Basis: Article 278(g) (Ungos, p. 374)
26. Which among the following statements is true?
a. The employment status of a worker is not deemed abandoned when such worker
exercised his right to strike.
b. An employee who participated in a strike shall not be entitled to his daily wage.
c. After the strike, the return to work order issued shall not be immediately executory.
d. Notwithstanding the declaration of strike, the NCMB is still obliged to continue mediation
and concilliating.
Basis: Article 278(g) (Ungos, p. 375)
27. The following can issue an injunction against strike except?
a. Secretary of Labor and Employment

b. National Labor Relations Commissions
c. Regional Trial Court
d. Court of Appeals
Basis: Article 280 (Ungos, p. 376)
28. Ninong Ry was beaten by several union members of Samahang Manggagawa ng Katayan ng
Manok ni Kuya Bokbok for not participating in the strike being conducted by the said union.
Hence, Ninong Ry requested to be escorted by police while in the strike area so that he could
work. The said union opposes the escort by police claiming that such act is prohibited under the
Labor Code. Is the contention of the union valid?
a. Yes. Art. 279(d) of the Labor Code states that no public official or employee including
officers and personnel of the AFP or the Integrated National Police or armed person shall
bring in, introduce, or escort in any manner any individual who seeks to replace strikers
in entering or leaving the premises of a strike area, or work in the place of strikers.
b. Yes. As a member of the union, Ninong Ry should have participated in the strike.
c. Yes. It is clear from Labor Laws that such act is prohibited.
d. No. What is prohibited is the escorting of replacements. If the person escorted will not
replace the strikers, then Art 279(d) is not violated.
BASIS: No violation is committed because non-striking employees have the right to freely enter
and go out of the company premises and work. They will work not as replacements but as non-
striking employees. (Ungos, p. 377)
29. After Ninong Ry’s duty at Katayan ng Manok ni Kuya Bokbok, he saw several police officers
stationed within the picketing lines thereby preventing the employees from picketing.
Thereafter, the picketing employees argued that such act violates their right to picket. However,
the officers contended that they were simply enforcing peace and order. Is the argument of the
police valid?
a. Yes. Maintenance of peace and order is the primary duty of the police. As such, if the
picketing is violent, then the police may step in to ensure peace and order.
b. No. As there were no reports of the picketing employees violating the peace and order,
police action is unnecessary.
c. Yes. The State, in the exercise of its police power can send officers to preserve peace and
order.
d. No. Labor Laws states that the police force shall keep out of the picket line unless actual
violence or other criminal acts occur therein.
BASIS: Article 279(d) states that the police force shall keep out of the picket line unless actual
violence or other criminal acts occur therein. However, they are not prevented from taking any
measure necessary to maintain peace and order, protect life and property, and/or enforce the
law and legal order. (Ungos, p. 378)
30. Ian and Jerome were among those participating in the strike conducted by Samahang
Manggagawa ng Katayan ng Manok ni Kuya Bokbok. While in the middle of the strike, they saw
one of the union officers hiding under his shirt a Cal. 45 Pistol. Immediately, they informed the
police officers stationed 50 meters away from the strike area. Thereafter, the said union officer,
identified as Duduts, was arrested. Duduts argued that during a strike, union officers cannot be
arrested without previous consultation with the Secretary of Labor. Is the contention of Duduts
correct?
a. Yes. Any union officers, members, or organizers cannot be arrested or detained for union
activities without previous consultation with the Secretary of Labor.
b. Yes. As the pistol was not being used during the strike.
c. Yes, because previous consultation with the Secretary of Labor is necessary.
d. No. Any person who possesses deadly weapons may be arrested and charged
accordingly in court without consultation with the Secretary of Labor.
BASIS: Article 281 of the Labor Code states that except on grounds of national security and public
peace, or in case of commission of a crime, no union members or union organizers may be
arrested or detained for union activities without previous consultation with the Secretary of
Labor. (Ungos, p. 379)
31. Notice of lockout should be filed with the NCMB, at least :
I. 15 days before the intended date of lockout, if based on unfair labor practice.
II. 30 days before the intended dat3 of lockout, 9f based on collective bargaining deadlock.
a. both statements are correct

b. only statmement I is correct
c. both statements are wrong
d. only statement II is correct
BASIS: Article 278 (c) of the labor code. (Ungos, p. 380)
32. Before declaring a lockout, the employer__________ first conduct a referendum among the
Board of Directors ( in case of corporation), or partners ( in case of partnership) to determine
whether the Board or Partners are fabor of lockout. this a ________ requirement.
a. must, mandatory
b. may, discretionary
c. request, mandatory
d. can, discretionary
BASIS: Article 278 (f) of the labor code (Ungos, p. 381)
33. The employer can declare a lockout only when the dispute is not settled after the lapse of
the:
I. cooling-off period, and
2. seven-day lockout ban
a. both statements are correct

b. both statements are wrong
c. only statement I is correct
d. only statement II is wrong
BASIS: Article 278 (f) of the labor code (Ungos, p. 382)
34. If the majority of the ____________ votes to accept the reduced offer, the lockout ends.
a. Employees
b. board of directors or partners
c. secretary of labor
d. union officers
Rationale: In case of a lockout, the Department of Labor and Employment shall also conduct a
referendum by secret balloting on the reduced offer of the union on or before the 30th day of
the lockout. When at least a majority of the board of directors or trustees or the partners holding
the controlling interest in the case of a partnership vote to accept the reduced offer, the workers
shall immediately return to work and the employer shall thereupon readmit them upon the
signing of the agreement. (Ungos, p. 383)
35. Labor organizations or employers are forbidden from declaring a strike or lockout
a. without first having bargaining collectively

b. without filing a notice of strike or notice of lockout
c. all of the above
d. without conducting a strike vote\lockout vote and submitting a report thereof
RATIONALE: No labor organization or employer shall declare a strike or lockout without first
having bargained collectively in accordance with Title VII of this Book or without first having filed
the notice required in the preceding Article or without the necessary strike or lockout vote first
having been obtained and reported to the Ministry. (Ungos, p. 384)
No strike or lockout shall be declared after assumption of jurisdiction by the President or

the Minister or after certification or submission of the dispute to compulsory or voluntary
arbitration or during the pendency of cases involving the same grounds for the strike or lockout.
36. An illegal strike will result in the dismissal of
a. union officer who participated in the legal strike

b. union officers who committed legal acts during the strike
c. union officers who participated in the illegal strike
d. union officers during the strike
RATIONALE: Sanction for illegal strike, an illegal strike will result in the dismissal of union officers
who participated in the illegal strike and union officers or members who committed illegal acts
during the strike (Ungos, p. 385)
37. Statement I. The mother federation is an agent of the local union.

Statement II. The local union is an agent of the mother federation.
Statement III. Knowledge of the principal is knowledge of the agent.
Statement IV. The local union is liable for damages resulting from an illegal strike.
a. Only Statement I is correct.

b. Statements II and III are correct.
c. Statements I and IV are correct.
d. Statements I, III, and IV are correct.
BASIS: The local union, not the mother federation, is liable for damages resulting from an illegal
strike because the mother federation is merely an agent of the local union (Ungos, p.386).
38. The Secretary of DOLE has the power to assume jurisdiction or certify the dispute for
compulsory arbitration in the following instances, except:
a. Without necessity of prior notice

b. Necessity of an actual strike or lockout
c. Existence of a labor dispute
d. Without necessity of hearing
BASIS: The Labor Code does not require the existence of an actual strike or lockout, but merely
the existence of a labor dispute causing or likely to cause a strike or lockout (Ungos, p. 387).
39. The Secretary of DOLE has the following powers, except:
a. Assume jurisdiction over a labor dispute

b. Order strikers to lift their pickets and return to work
c. Prohibit the employer from taking retaliatory action against the strikers
d. Certify the dispute for compulsory arbitration
BASIS: The Secretary of DOLE does not have the power to prohibit the employer from taking
action against union officers who participated in an illegal strike and strikers who committed
illegal acts (Ungos, p.388).
40. It is the marching to and fro before the premises of an establishment involved in a
dispute, generally accompanied by the carrying and display of a sign, placard or banner
bearing statements in connection with the dispute.
a. Protesting
b. Striking
c. Picketing
d. Bargaining
Basis: Teller, Labor Disputes and Collective Bargaining Vol. 1 (Ungos, p. 389)
41. Persons and employees engaged in picketing are prohibited from the following,
except:
a. Committing any act of violence, coercion, or intimidation

b. Obstructing the free ingress to and egress from the employer's premises
c. Protecting the rights of the employees
d. Obstructing public thoroughfares
Basis: ART. 279. Prohibited Activities - xxx (e) No person engaged in picketing shall commit
any acts of violence, coercion, or intimidation or obstruct the free ingress to and egress
from the employer's premises for lawful purposes, or obstruct public thoroughfares.
(Ungos, p. 389)
42. Under this doctrine, picketers may be enjoined from picketing establishments with
whom they have no employment relation or dispute.
a. Totality of Conduct Doctrine

b. Confidential Employee Doctrine
c. Innocent Bystander Doctrine
d. Globe Doctrine
Basis: Liwayway Publications v. Permanent Concrete Workers 108 SCRA 161 (Ungos, p.
390)
43.Which of the following statement is/are true

I. Security of tenure simply means that the employer cannot dismiss an employee without
just cause or authorized cause
II. Security of tenure does not oblige an employer to keep the employment of an employee
who is guilty of misfeasance or malfeasance towards his employer, because the law, in
protecting the rights of the employees, authorizes neither oppression nor self destruction
of the employer.
III. Neither does security of tenure give employees an absolute vested right to their positions
to the extent of depriving the employer of its prerogatives.
a. I and II only
b. II and III only
c. III only
d. All of the above
44. Which of the following statements is/are true?

I. Security of tenure does not principally protect employees who are holding regular
employment.
II. Project employees, seasonal employees or fixed term employees cannot be dismissed
without valid cause prior to the expiration of the term of their employment.
III. Probationary employees can be dismissed only for a valid cause or for failure to qualify
for regular employment.
IV. Even casual employees who have rendered at least one year of service are entitled to
security of tenure, in the sense that their employment cannot be terminated without valid
or authorized cause, if the activity in which they were engaged still exist
a. I, II and III
b. I and III
c. II, III and IV
d. III and IV
45. Which of the following statements is/are true?

I. Security of tenure protects an employee not only against dismissal without just cause but
also against other personnel actions (such as transfer or demolition) which are calculated
to force an employee to give up his employment without valid reason.
II. There is constructive dismissal when an employee quits his job because the employer
utilizes schemes to force him to relinquish his job.
III. Constructive dismissal is involuntary resignation brought about by the harsh, hostile and
unfavorable conditions set by the employer
a. I and II only
b. II only
c. II and III only
d. All of the above

46. What is the proper relief in cases of constructive dismissal?
a. Reinstatement
b. Filing a complaint
c. Resignation
d. Separation pay
Basis: In Cases of constructive dismissal the separation pay would be appropriate relief so that
the employee can be spared the agony of having to work a new with his employer under an
atmosphere of antipathy and antagonism (Ungos, p. 396)
47. Which is constructive dismissal in the following cases?
a. The employee left her job because her immediate superior discriminate against her
without no reason.
b. Employee who is a machinist for 16 years but the employer demoted him to the servile
job of transporting filing materials
c. Employee who is a production recorder for the past 14 years but the employer demoted
her to the position of picker.
Basis: Globe Telecom vs. Torres, Jarcia machine shop vs. NLRC, Gaco vs. NLRC (Ungos, Page 395)
48. A situation where an employee is dismissed without just cause or authorized cause or the
dismissal is too harsh a penalty.
a. Constructive dismissal
b. Reinstatement
c. Separation Pay
d. Illegal Dismissal
Basis: Illegal dismissal is a situation where an employee is dismissed without just cause or
authorized cause or the dismissal is too harsh a penalty not commensurate to an offense
committed. (Ungos, Page 396)
49. The following are reliefs for illegal dismissal for locally employed workers, except one.
a) reinstatement without loss of seniority rights and other privileges.

b) separation pay if reinstatement is no longer possible or feasible.
c) backwages
d) reimbursement of his placement fee with 12% interest per annum.
Rationale:
Art. 294 of the Labor Code (pg. 398-399, Ungos)
50. The following statements are correct, except one.
a) Reinstatement is a relief similar from backwages necessarily complementing each

other.
b) In reinstatement, if an employee at the time of his dismissal was occupying a lower

position, he cannot be ordered reinstated to a higher position.
c) Reinstatement refers to a restoration to a state from which one has been removed or
separated.
d) In reinstatement, if an employee at the time of his dismissal was occupying a temporary

position, he cannot be ordered reinstated to a permanent position.
Rationale:
Reinstatement is a relief separate and distinct from backwages. Reinstatement restores

the lost position while backwages restores the lost income. While ordinarily, reinstatement is a
concomitant of backwages, the two are not necessarily complements. Reinstatement may be
ordered without awarding backwages. Conversely, backwages may be awarded without ordering
reinstatement. (pg. 399, Ungos)
51. I. Under the doctrine of strained relations, reinstatement should not be ordered anymore if
the relationship between the parties has become so strained and ruptured as to preclude a
harmonious working relationship.
II. The doctrine of “strained relations” should not be applied indiscriminately since every labor
dispute almost invariably results in strained relations.
a) I is correct, II is wrong
b) I is correct, II is correct
c) I is wrong, II is correct
d) I is wrong, II is wrong
Rationale:
De Vera v. NLRC, 191 SCRA 623; Capili v. NLRC, 270 SCRA 488 (pg. 400, Ungos)
52. This refer/s to compensation for services already rendered but withheld by the employer.
a. Backwages
b. Unpaid wages
c. Salary
d. Unpaid salary
BASIS: GENERAL BAPTIST BIBLE COLLEGE and GENERAL BAPTIST CHURCH OF THE PHILIPPINES,
petitioners, vs. NATIONAL LABOR RELATIONS COMMISSION; G.R. No. 85534; March 5, 1993
(Ungos, p. 401)
53. The following are instances in order that limited backwages maybe allowed, EXCEPT:
a. Limited backwages maybe awarded if the penalty of dismissal is not commensurate to the
offense committed.
b. Limited backwages maybe awarded if there is delay in filing the complaint for illegal
dismissal.
c. Limited backwages maybe awarded if the employee was dismissed without any cause,
whatsoever.
BASIS: OLIGARIO SALAS, PETITIONER, V.S. ABOITIZ ONE, INC., AND SABIN ABOITIZ,
RESPONDENTS; G.R. No. 178236, June 27, 2008 (Ungos, p. 402)
54. The following are instances when backwages may not be awarded, EXCEPT:
a. Backwages may not be awarded if the employer acted in good faith in dismissing the
employee.
b. Backwages may not be awarded if the cessation of employment was brought about
neither by dismissal nor abandonment.
c. Backwages may not be awarded if the penalty of dismissal is commensurate to the
offense committed.
BASIS: BASIS: 6 SCRA 227 and 172 SCRA 831 (Ungos, p. 403)
55. Which of the following statements is correct?
I. Back wages may not be awarded if the cessation of employment was not caused by dismissal
but by the employer's refusal to work
II. Earnings elsewhere by an illegally dismissed employee may be deducted from his back wages.
III. Separation pay and back wages can be awarded simultaneously
a. both I and II
b. both II and III
c. both III and I
d. none of the above
RATIONALE: In the case of Bustamente v. NLRC the Supreme Court stated that "back wages to be
awarded to an illegally dismissed employee, should not as a rule, be diminished or reduced by
the earnings derived by him elsewhere during the period of his illegal dismissal." Because the
employee, while litigating the matter of his dismissal, must still earn a living to support himself
and family, while full back wages have to be paid by the employer as part of the price or penalty
he has to pay for illegally dismissing his employee. (Ungos, p. 404)
56. Can separation pay be awarded if the dismissal is adjudged to be valid?
a. No, an employee dismissed for a just cause is not entitled to separation pay.
b. Yes, but only in instances where the employee was validly dismissed for a cause other
than serious misconduct of offenses reflecting on his moral character
c. Yes, except in those instances where the employee was validly dismissed for a cause other
than serious misconduct of offenses reflecting on his moral character.
d. None of the Above
RATIONALE: In the case of PLDT v. NLRC the Supreme Court stated that "Exceptionally, separation
pay may be awarded as a measure of social justice but only in instances where the employee was
validly dismissed for a cause other than serious misconduct of offenses reflecting on his moral
character. (Ungos, p. 405)
57. Which statement is correct regarding claims on moral damages and exemplary damages?
I. No, it is enough for an employee to just prove that he was dismissed with just cause of due
process
II. No, because moral damages and exemplary damages are reliefs prescribed not be the Labor
Code but by the Civil Code
III. Yes, because moral damages and exemplary damages are reliefs prescribed not be the Labor
Code but by the Civil Code
a. Only I
b. Both I and III
c. Only III
d. None of the Above
RATIONALE: In the case of PAL v. NLRC/ NFLv. NLRC/ PVB v. NLRC the Supreme Court held that in
order to be entitled to moral damages and exemplary damages, it is not enough for an employee
to just prove that he was dismissed without just cause or due process. Additional facts must be
pleaded and proved. The employee should prove that his dismissal was attended by bad faith or
fraud, or constituted an act contrary to morals, good customs or public policy, and of course, that
social humiliation, wounded feelings, grave anxiety, and similar injury resulted therefrom.
(Ungos, p. 406)
58. Which of the following statement/s is or are correct?
I. Attorney's fees are awarded every time a party wins a suit.

II. Attorney's fees, in its extraordinary sense, are the reasonable compensation paid to the lawyer
by his client for legal services rendered.
a. Both statements are correct

b. Both statements are incorrect
c. Only I is correct
d. Only II is correct
Basis: Ungos, page 407
I: The award of attorney's fee is the exception rather than the rule. It is not to be awarded every
time a party wins a suit.
II. Attorney's fees, in its ordinary sense, are the reasonable compensation paid to the lawyer by
his client for legal services rendered.
59. In which situation/s would corporate officers be held personally or solidarily liable?
I. If the corporate officer acted in bad faith
II. If the corporate officer was impleaded in the suit
III. If the corporation is no longer existing, and the employee can no longer run after the company
a. I and II
b. II and III
c. I and III
d. I, II, III
Basis: Generally, corporate officers cannot be held personally or solidarily liable with the
corporation for backwages, damages, or other money claims of employees, even if they were
impleaded in the complaint.
Exceptions:
(1) If the corporate officer acted in bad faith; or
(2) If the corporation is no longer existing, and the employee can no longer run after the company
to satisfy the judgment in his favor (Ungos, p. 408)
60. Solidary liability is imposed upon the _______________ officer of the corporation.
a. erring
b. legal
c. highest-ranking
d. human resource
Basis: Usually, solidary liability is imposed upon the highest-ranking officer of the corporation,
such as the President or Administrator. It does not extend to the Vice-President, unless the Vice
President happens to be the highest-ranking officer, as in cases when the President of the
corporation is the complainant himself. (Ungos, p. 409)
61. Josephine Bracken, a regular employee, was terminated by SM (Sirok Maharlika) Company
because the ownership of the company has changed. Josephine filed her application for
employment. Jose Rizal, the new owner hired her as a new employee on probationary status for
six months. Josephine questioned the decision of the new owner contending that the latter could
not validly hire her on probationary status because she was a regular employee when he took
over. Decide.
a. Josephine is correct because the change of ownership did not change the nature of her
employment.
b. Josephine is correct because it is not a management prerogative of Jose to place her in a
probationary status.
c. Josephine is wrong because it is the right (management prerogative) of Jose, the new
owner, to place her under probation notwithstanding her regular employment status
with the old owner.
d. Josephine is correct because as the new owner of the company, Jose is under the
obligation to absorb the employees of the old owner as regular employees.
BASIS/RATIONALE: MANLIMOS VS. NLRC (242 SCRA 145; GR NO. 113337, MARCH 2, 1995). The
Supreme Court held that the new owner had the right to place the employees under probation
notwithstanding their regular employment status with the old owner. Considering that the new
owner is not under legal obligation to absorb the employees of the old owner, their hiring as
probationary employees was not irregular because it is the prerogative of the new owner to
choose whom to hire and to place them on probationary status. (Ungos, pp. 410-411)
62. As an exception to the management prerogative to choose whom to hire as provided under
RA 10911, employers are forbidden from placing job advertisement which suggests age
preference or discrimination based on age. Junjun Bingay, owner of TDN Company, would,
however, want to set an age preference in hiring his employees. As the best labor law student of
the Ateneo de Patatas Island, which of the following circumstances would warrant the valid
setting of age limitations?
a. If age is a bona fide occupational qualification

b. If done in observance of a bona fide seniority system
c. If done in observance of a bona fide early retirement plan
d. If the action is duly certified by the Secretary of Labor and Employment.
e. All of the choices.
Basis/Rationale: Section 5 (Limitations) and Section 6 (Exceptions), Republic Act 10911 (Anti-Age
Discrimination in Employment Act) (Ungos P. 411)
63. Martin Leather, a supervisory employee, was suddenly promoted to a managerial position.
ANAKLUPA Union then questioned the employer’s action claiming that the sudden promotion
was intended to remove Martin, a supervisory employee, from the coverage of the union. Is
ANAKLUPA Union correct?
a. Yes, because such promotion must be with consent of the union.

b. Yes, because promotion of a supervisory employee to managerial employee is prejudicial
to the interest of the union.
c. No, because the employer has the management prerogative to promote employees.
d. No, because supervisory and managerial are different positions.
BASIS/RATIONALE: Bulletin Publishing Co. vs. Sanchez (144 SCRA 628), promotion of employees
to supervisory or managerial positions is a prerogative of management because such positions
are offices that can only be held by persons who have the trust of the employer. Consequently,
a labor union cannot validly claim that the sudden promotion of supervisory personnel to
managerial positions was intended to remove them from the coverage of the union. A promotion
that is manifestly beneficial to the employee should not give rise to a gratuitous speculation that
such a promotion was made simply to deprive the Union of membership of the promoted
employee, who after all appears to have accepted the promotion. (Ungos, P. 412)
64. Statement I: An employer can change the work schedule of its employees whenever the
exigencies of the service so require.
Statement II: Even if a prerogative 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, the
exercise of such right should not be upheld.
a. True, True
b. True, False
c. False, False
d. False, True
Rationale: “Management retained the prerogative, whenever exigencies of the service so

require, to change the working hours of its employees. And as long as such prerogative 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 under valid
agreements, this Court will uphold such exercise”. (San Miguel Brewery Sales Force Union
(PTGWO) v. Ople, 170 SCRA 25 [1989]) (Ungos, p. 413)
65. The following are some of the prerogatives of the management, except:
a. Prerogative to Reorganize and abolish positions

b. Prerogative to reduce personnel
c. Prerogative to deduct from wages
d. Prerogative to transfer business ownership.
Rationale: Chapter IV. Art. 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. (Ungos, p. 414-415)

a. An employer can be compelled to give employment to a greater number of persons than
the economic operations of his business requires.
b. The State cannot interfere with the employer’s decision to close its business.
c. The employer may merge/consolidate its business with another or sell/dispose its assets
and properties even if it may bring about the dismissal or termination of its employees in
the process.
d. The right to close and establishment is a privilege of management considering the many
factors that are linked with the business and capital which can should only be solved and
determined by management.
Basis: Dee C. China v. Naha, 95 Phil. 837; Industrial Timber Corporation v. NLRC, 273 SCRA 200;
Columbia’s Rope Co. v. TALE, 6 SCRA 425 (Ungos, p. 415)
67. Which among the following choices is the most accurate rule?
a. The transferee or buyer is not legally obliged, under any circumstance, to absorb the
employees of the transferor or the seller
b. Except in case of bad faith in the transfer, the transferee or buyer is not legally obliged
to absorb the employees of the transferor or the seller
c. The transferee or buyer is legally obliged to absorb the employees of the transferor or the
seller
d. If the transfer or sale was done in bad faith, the liability should be borne by the transferee
or buyer
Basis: As a rule, the transferee or buyer is not legally obliged to absorb the employees of the
transferor or the seller. However, if the transfer or sale was done in bad faith the liability should
be shared by both transferor and transferee. (Cruz v. PAFLU, 42 SCRA 68) (Ungos p. 416)
68. May the company compel the employee to disclose existing or future relationships?
a. No, under any circumstance

b. No, if such requirement amounts to a prohibition to marry
c. Yes, if such relationship is with employees of competitors
d. Yes, as the prerogative to promulgate company rules is absolute on the part of the
employer
Basis: In Duncan Association of Detailman v. Glaxo, 438 SCRA 343, the Supreme Court ruled that
the prohibition against personal or marital relationships with employees of competitor
companies is reasonable because relationships of that nature might compromise the interest of
the company. (Ungos, p. 417)
69. The employer has the prerogative to dismiss employees regardless of the nature of the
offense:
a. Yes, the prerogative to discipline employees is inherent in the employer

b. Yes, because no matter what nature of the offense is, the offense results in serious
damage to the business
c. No, the penalty of dismissal should be meted out only in cases of serious offenses
d. No, the penalty of dismissal should be meted out only after a repetition of offenses
Basis: Offenses that are not so serious would merely warrant a penalty lower than dismissal. The
penalty should be proportionate to the gravity of the offense. (Rubberworld. Phils v. NLRC, 175
SCRA 450) (Ungos, p. 418)
70. Determine if the disciplinary action of the employer is proper in the following cases:
i. Undertaker was dismissed by his employer because his past record shows that he was
repeatedly admonished, warned and suspended for incurring excessive unauthorized absences
during a span of six years.
ii. Niggar, an employee of Caltex with a salary of P325.00 a day, took a bottle of lighter fluid
valued at P8.00. With this, Niggar was dismissed by his employer.
a. Proper; Not Proper

b. Not Proper; Proper
c. Proper; Proper
d. Not Proper; Not Proper
Basis: Worldwide Papermills, Inc v. NLRC; Caltex Refinery Employees Association v. NLRC (Ungos,
p. 419)
71. True or False
Statement I: In disciplining an employee, his or her length of service should be taken against him.
Statement II: An employer cannot impose sanctions lighter than those specifically prescribed by
the rules.
a. False; True
b. True; Turtle
c. False: False
d. True; False
Basis: The longer an employee stays in the service, the greater is his responsibility for knowledge
and compliance with the norms of conduct and the code of discipline of the employer.
An employer can impose sanctions lighter than those specifically prescribed by the rules. (Ungos,
p. 420)
72. Which of the following is not a just cause for dismissal:
a. Serious misconduct or willful disobedience by the employee of the lawful orders of his
employer or representative in connection with his work
b. Gross and habitual neglect by the employee of his duties
c. Installation of Labor Saving Device
d. Fraud or willful breach by the employee of the trust reposed in him by his employer or
duly authorized representatives
Basis: Art. 297. List of just causes (Ungos, p. 421)

73. The following constitute serious misconduct that will warrant the penalty of dismissal,
EXCEPT:
a. An employee who cannot get along with his co-employees, is hard to deal with,
belligerent and picks a fight with peers and other employees
b. Fighting within the company premises
c. A security guard who was not only lax in the performance of his duties, reported to work
under the influence of liquor and entertained outsiders at night while on duty
d. Violation of the “first-come-first-served policy” in delivering gasoline to customers
BASIS: Tidewater Associated Oil Co. v Victory Employees, 85 Phil 66 Violation of the “first-come-
first-served policy” in delivering gasoline to customers is a misconduct that is not so serious,
hence, it will not warrant the penalty of dismissal. (Ungos, p.422)
74. Statement 1: Harassing a co-employee within the company premises after office hours does
not warrant a dismissal as the quarrel is a purely private affair.
Statement 2: Engaging in sexual intercourse inside company premises is serious misconduct.
a. Only Statement 1 is CORRECT.

b. Only Statement 2 is CORRECT.
c. Both Statements are CORRECT.
d. Both Statements are INCORRECT.
BASIS: Harassing a co-employee within the company premises even after office hours is a work-
related serious misconduct considering that it disturbs the tranquility of the plant.
Navarro v Damasco, 246 SCRA 260 The harassment of an employee by a co-employee within the
company premises even after office hours is a work-related matter considering that the peace of
the company is thereby affected. (Ungos, p.423)
75. Insofar as morality under our law is concerned, __________ determines the prevailing norms
of conduct.
a. Public and secular morality

b. Religious morality
c. Christian morality
d. Civil morality
BASIS: Leus v. St. Scholastica (GR No. 187226;, January 28, 2015),The morality referred to in the
law is public and necessarily secular, not religiousx x x. "Religious teachings as expressed in public
debate may influence the civil public order but public moral disputes may be resolved only on
grounds articulable in secular terms." Otherwise, if government relies upon religious beliefs in
formulating public policies and morals, the resulting policies and morals would require
conformity to what some might regard as religious programs or agenda. The non-believers would
therefore be compelled to conform to a standard of conduct buttressed by a religious belief, i.e.,
to a "compelled religion," anathema to religious freedom. (Ungos, p.424)
76. The gravamen of the offense in sexual harassment is not the violation of the employee's
sexuality but
a. the abuse of power by the employer or superior

b. taking advantage of a woman because of sexual desire
c. the offensive treatment by the employer on the sexuality of the employee
d. all of the above
BASIS: Philippine Aeolus Automotive United Corp. v NLRC, G.R. No. 124617. April 28, 2000. The
gravamen of the offense in sexual harassment is not the violation of the employee's sexuality but
the abuse of power by the employer xxx. (Ungos, p. 425)
77. In order to improve the financial conditions of the Chinese General Hospital, Dr. Zhong Xi Na,
the medical director, directed Shang Chi Jinping, the chief dietician, to purchase food from Jolly
Beanz instead of Chao King. However, Mr. Shang liked the food of Chao King better, so he refused
to follow Dr. Zhong's order. Dr. Zhong repeatedly requested Mr. Shang to follow his order but
the latter deliberately refused. Mr. Shang was then suspended and later on dismissed. Was the
dismissal proper?
a. Yes, on the ground of willful disobedience.

b. Yes, on the ground of negligence in the line of duty.
c. No, Mr. Shang had discretion to choose which supplier he wanted since he was the Chief
Dietician and knew what was best.
d. No, Dr. Zhong was not in the position to question Mr. Shang's decisions since he was not
a food expert.
Basis: St. Luke's Hospital v. Minister of Labor (Ungos, p. 426)

78. Ramon Dock was employed by the Statutory Construction Company as a truck driver. In the
construction of a hotel, Ramon was ordered by his employer to dig canals, make excavations, and
haul construction materials, to which he refused saying that he was employed as a truck driver
and not a construction worker. Thus, he was dismissed from employment on the ground of willful
disobedience. Is the dismissal proper?
a. Yes, on the ground of willful disobedience.

b. Yes, on the ground of negligence in the line of duty.
c. No, because the employer acted with abuse of power.
d. No, because the task was not in connection with his employment.
Basis: Tierra Construction v. NLRC (Ungos, p. 427)
79. It is defined as the failure to give proper attention to a task expected of an employee because
of carelessness or indifference.
a. Neglect of duty
b. Gross absence
c. Misrepresentation
d. Insubordination
Basis: Labis v. Estanol, 547 SCRA 11,15. (Ungos, p. 428)
80. To constitute a just cause for dismissal, the fraud must be:
a. work-connected; and committed against the employee

b. work-connected; and committed against the employer
c. gross; and habitual
d. none of the above
Basis: Philippine Airlines v. NLRC (Ungos, p. 429)

81. Statement I: The basic premise for the dismissal on the ground of willful breach of trust is
that the employee concerned holds a position of trust and confidence
Statement II: In the application of the doctrine of loss of trust and confidence, the treatment of
rank-and-file employees does not differ from managerial employees and those holding positions
of trust.
a. Both statements are not correct.

b. Only statement I is correct.
c. Both statements are correct.
d. Only statement II is correct.
BASIS: Statement I is correct. In the case of Tirazona vs. CA (G.R. No. 169712, March 14, 2008),
the Supreme Court reiterated that it is an established principle that loss of confidence must be
premised on the fact that the employee concerned holds a position of trust and confidence.
Statement II is incorrect. In the case of Velez vs. Shangri-la (G.R. No. 148261, October 9, 2006),
with respect to rank-and-file personnel, loss of trust and confidence as ground for valid dismissal
requires proof of involvement in the alleged events in question and that mere uncorroborated
assertions and accusations by the employer will not be sufficient. But as regards a managerial
employee, the mere existence of a basis for believing that such employee has breached the trust
of his employer would suffice for his dismissal. (Ungos, p. 430)
82. Statement I: Dismissal of dishonest employees works one way – it protects the interest of the
employer.
Statement II: The relief of reinstatement is not available to an employee dismissed for loss of
confidence.

b. Only statement II is correct.
c. Both statements are not correct.
d. Only statement I is correct.
BASIS: Statement I is incorrect. It works both ways. In the case of International Hardwood &
Veneer Co. vs. Leogardo (G.R. No. L-57429, October 28, 1982), the Supreme Court ruled that the
dismissal of a dishonest employee is as much in the interests of labor as it is of management.
Statement II is correct. The Supreme Court ruled in Philippine Education Co. vs. Union of
Philippine Education Employees (G.R. No. L-13778, April 29, 1960) that when the employer has
lost its confidence in the employee, it would be highly unfair to require said employer to continue
employing him or to reinstate him, for in that case, the former might find it necessary for its
protection to employ another person to watch and keep an eye on him. (Ungos, p. 431)
83. Statement 1: The employer may dismiss employees who are married to employees of a
competitor.
Statement 2: The ground for statement 1’s dismissal is breach of trust.
a. Both statements are correct

b. Both statements are incorrect
c. Only statement 1 is correct
d. Only statement 2 is correct
Basis: Duncan Association of Detailman v Glaxo, 483 SCRA 343. (Ungos, p. 433)
84. Which of the following is NOT a requirement of a non-compete agreement?
a. Must limit the time and place

b. Must be stipulated in the contract
c. Must be necessary to avoid reasonable protection to the employer
d. Must not limit the time or place
Basis: Ollendorf v. Abrahamson, 38 Phil 585. (Ungos, p. 433)

85. The commission of a crime by the employee against the following is a just cause for dismissal,
except against one. Which one is not included?
a. Employer.
b. Co-employees.
c. Immediate member of the employer’s family.
d. Authorized representative of the employer.
RATIONALE: Article 297, Labor Code: Termination by Employer. An employer may terminate an
employment for any of the following causes:
(a) Serious misconduct or willful disobedience by the employee of the lawful orders of his
employer or representative in connection with his work;
(b) Gross and habitual neglect by the employee of his duties;
(c) Fraud or willful breach by the employee of the trust reposed in him by his employer or
duly authorized representative;
(d) Commission of a crime or offense by the employee against the person of his employer or
any immediate member of his family or his duly authorized representatives; and
(e) Other causes analogous to the foregoing. (Ungos, pg. 434)
86. Noel, an employee of Oasis Company, does not get along with his brother Liam who is also
an employee. Their disagreements stem from attitudinal problems of Noel thinking that
everything his brother does is wrong, this leads to Noel constantly controlling his brother
including everyone around him, leading to conflicts within the workplace. Noel, on the other
hand, is indeed, a good and productive employee. May Noel be dismissed? If so, on what
grounds?
a. No, Noel may not be dismissed. He is a productive employee.

b. No, Noel may not be dismissed because of family conflicts with a co-employee.
c. Yes, Noel’s attitude problem is analogous to breach of trust.
d. Yes, Noel’s conceitedness is annoying to Liam and others.
RATIONALE: In the case of Heavylift Manila v Court of Appeals, the Supreme Curt opined that
attitude problem (i.e., cannot get along with co-employees), is analogous to breach of trust which
will warrant the dismissal of the employee to ensure the tranquility of the work environment.
(Ungos, pg. 435)
87. In dismissing an employee for just cause the following are correct, EXCEPT?
a. Five (5) days from notice is the reasonable period to give an employee an opportunity to
study the accusation.
b. The employer must serve a written notice to the employee specifying the act or omission
committed.
c. Preventive suspension is a penalty the employer can impose if the continued presence
of the employee poses a serious and imminent threat to the life and property of the
employer or of his co-employees.
d. Opportunity to be heard is satisfied when the employee is first required to explain before
imposing a disciplinary action.
BASIS: Nera vs. Garcia, G.R. No. L-13160, January 30, 19610 “xxx suspension was not a
punishment or penalty for the acts of dishonesty and misconduct in office, but only as a preventive
measure. Suspension is a preliminary step in an administrative investigation.” (Ungos, p. 436)
88. In dismissing an employee for just cause the following are correct, EXCEPT?
a. The employer may conduct a hearing, if necessary, to give the employee further
opportunity to respond to the charge.
b. Hearing is a matter of right in a disciplinary proceeding and the employee need not ask
for it.
c. During the hearing, the employee need not be appraised of right to counsel.
d. Confrontation of witness is not essential.
BASIS: Banez vs. De La Salle University, G.R. No. 167177, September 27, 2006 “Parties to a labor
case may ask for a hearing, but such is not a matter of right.” (Ungos, p. 437)
89. The burden of proving the validity of dismissal rests upon the . But the
burden of proving the fact of dismissal rests upon the .
a. employer; union officers

b. employee; employer
c. employer; employee
d. union officers; employer
BASIS: In cases of illegal dismissal, the employer bears the burden of proof to prove that the
termination was for a valid or authorized cause. But before the employer must bear the burden
of proving that the dismissal was legal, the employees must first establish by substantial evidence
that indeed they were dismissed. If there is no dismissal, then there can be no question as to the
legality or illegality thereof. (Ledesma, Jr. v. National Labor Relations Commission, 562 Phil. 939,
951 [2007]) (Ungos, pg. 438)
90. The following statements regarding the effect of acquittal (or conviction) of an employee in
a criminal case are correct, except?
a. The right of an employer to dismiss an erring employee is not dependent upon a verdict
of guilt or innocence in a criminal case.
b. An employer can proceed with the dismissal of an employee even if court orders the
acquittal of the employee.
c. A court order declaring an employee guilty in a criminal case carries with it the dismissal
of that employee from employment.
d. Acquittal in the criminal case does not invalidate the dismissal of an employee because
the evidence required in a criminal case is proof beyond reasonable doubt while it is
merely substantial evidence in a labor case.
BASIS: Pepsi Cola v. Guanson, 172 SCRA 57; PLDT v. NLRC, 129 SCRA 163; NOLE v. Roldan, 95 Phil.
727. (Ungos, pg. 439)
91. A telephone company terminated its switchmen employees because it replaced its electro-
mechanical switches (which were manually operated) with digital switches (which are
operated by computers). Was the termination valid?
a. Yes. The employment of the switchmen was no longer necessary.

b. No. The telephone company should not have replaced its switches to continue the
employment of the switchmen.
c. Yes. The continued employment of the switchmen would result in redundancy.
d. No. There was no authorized cause to warrant the termination.
Basis: In Soriano v. NLRC, a case with similar facts, the Supreme Court upheld the validity of the
termination because the continued employment of switchmen was no longer necessary because
of the introduction of the digital switches. Article 298 of the Labor Code also provides that the
installation of a labor saving device is an authorized cause for the termination of an employment
(Ungos, p. 440)
92. Statement I: The employer abolished its security section and engaged the services of an
independent security agency. As a result, the employer can validly terminate the employees of
the security section on the ground of redundancy.
Statement II: The characterization of positions as redundant is an exercise of business judgment,

the wisdom or soundness of which is beyond the discretionary review of the labor courts.

b. Only Statement II is correct.
Basis: For both statements -Serrano v. NLRC, 323 SCRA 445 (Ungos, p. 441)
93. __________ is reduction of personnel by an employer to prevent or minimize business losses.

It is a method of protecting and preserving the employer’s viability.
a. Forced Leave
b. Retrenchment
c. Lay-off
d. Mass Removal
Basis: Ungos, p. 442
94. Statement I: An employer can adopt retrenchment measure even before business losses are
sustained
Statement II: The losses required to necessitate a retrenchment must be substantial, not de
minimis.

b. Only Statement II is correct.
Basis: Article 298 of the Labor Code uses the phrase “retrenchment to prevent losses.” This
means that an employer can adopt retrenchment measure even before business losses are
sustained. Precisely, retrenchment is resorted to by an employer primarily to avoid or minimize
business losses.
One of the three basic requisites for a valid retrenchment is that the retrenchment is necessary
to prevent losses. Actual losses should be substantial, not de minimis. (Ungos, p. 442)
95. For installation of labor-saving devices or redundancy - _________ pay for every year of
service. For retrenchment to prevent losses or closure of establishment not due to serious
business losses - at least one month pay or one-half month pay for every year of service,
whichever is _________ and no ____________ if the closure is due to serious business
losses.
a. two months; higher; basic pay

b. three months; lower; hazard pay
c. one month; higher; separation pay
d. four months; lower; back pay
Basis: Amount of Separation Pay
(1) For installation of labor-saving device or redundancy - one month pay for every year of service
(2) For retrenchment to prevent losses or closure of establishments not due to serious business
losses - at least one month pay or one-half month pay for every year of service, whichever is
higher.
(3) No separation pay if the closure is due to serious business losses. (Ungos, Page 444)
Statement I: The basis for computing the separation pay is the latest salary unless the same was
reduced by the employer to defeat the intention of the Labor Code, in which case, the separation
pay shall be based on the salary rate before its deduction.
Statement II: For Salesmen Paid on Commission Basis -Their separation pay shall be based on
their average commissions earned during the past year of employment.
Statement III: For Seasonal Workers - Their separation pay shall be computed at one-fifth of their
respective average monthly pay during the last season multiplied by the number of years they
rendered actual service, provided that they worked for at least six-month during a given year.
Statement IV: For Piece-Rate Workers - In the absence of specially prescribed wage rates for
piece-rate workers, the special minimum wage rates prescribed by the Regional Tripartite Wages
and Productivity Boards shall apply.
a. Statement I only
b. Statements III and IV only
c. Statements II and III only
Basis: Basis for Computing the Separation Pay
The basis for computing the separation pay is the latest salary. unless the same was reduced by
the employer to defeat the intention of the Labor Code, in which case, the separation pay shall
be based on the salary rate before its deduction.
For Salesmen Paid on Commission Basis -Their separation pay shall be based on their average
commissions earned during the past year of employment.
For Seasonal Workers Their separation pay shall be computed at one-half of their respective
average monthly pay during the last season multiplied by the number of years they rendered
actual service, provided that they worked for at least six-month during a given year.
For Piece-Rate Workers-In the absence of specially prescribed wage rates for piece-rate workers,
the ordinary minimum wage rates prescribed by the Regional Tripartite Wages and Productivity
Boards shall apply. Thus, the separation pay should be computed on the basis of the applicable
minimum wage. (Ungos, Page 445)
97. Statement I. The mere fact that an employee is suffering from a disease, like tuberculosis,
does not ipso facto make him a sure candidate for dismissal.
Statement II. The termination is illegal in the absence of a medical certificate from a competent
public health authority attesting that the disease is of such nature or at such stage that it cannot
be cured within six months even with proper medical treatment.

b. Only statement I is correct.
c. Only statement II is correct.
Basis: Statement I - Tan v. NLRC, 271 SCRA 216
Statement II - Cebu Royal Plant v. DOLE, 153 SCRA 38; Duterte v. Kingswood Trading, 534
SCRA 607 (Ungos, p.446)
98. The following are conditions that must be complied with before terminating the services of
an employee on the ground of illness, except:
a. the continued employment of the sick employee is prohibited by law or prejudicial to his
health or health of his co-employees
b. a medical certificate issued by a competent public health authority
c. the medical certificate certifies that disease is of such nature or at such stage that is
cannot be cured within a period of six months with proper medical treatment
d. a medical certificate issued by a private physician chosen by the employee
Basis: Sec. 8, Rule II, Book VI, Implementing Rules of the Labor Code (Ungos, p. 446)
99. _____________ is the temporary separation of an employee from service brought about by
bona fide suspension of operations or fulfillment by an employee of a military or civic duty.
a. Termination
b. Lay-off
c. Suspension
d. Abandonment
Basis: Lay-off is the temporary separation of an employee from service brought about by bona
fide suspension of operations or fulfillment by an employee of a military or civic duty. (Ungos, p.
447)
100. Is HIV infection a ground for termination of Employment?
a. Yes. HIV infection is a ground for termination of employment if such disease is perceived
during the employment.
b. No. HIV infection is not a ground for termination of employment if the employee discloses
his health status to his employer.
c. Yes. HIV infection is a ground for termination of employment if the employee refuses to
submit himself for testing despite being HIV positive.
d. No. actual, perceived, or suspected HIV infection is not a ground for dismissal from
employment.
Basis: Art. 299. Disease as Ground for Termination.- HIV Not a Ground for Termination of
Employment - Actual, perceived, or suspected HIV infection is not a ground for dismissal from
employment. In fact, compulsory pre-employment HIV testing is unlawful. Job applicants cannot
be asked or compelled to disclose HIV-related personal information. (Ungos, p. 447)
Azucena 7
1. The following are just causes for a valid dismissal, except:
a. Employee's commission of a crime or offense against the person of his

employer or against any immediate member of the employer's family;
b. Being found positive for use of dangerous drugs;
c. Being found positive of HIV/AIDS;
d. Loss of trust and confidence in the employee which is substantial and
sufficiently established
BASIS: Page 414, Azucena
2. What constitutes first notice under the Two-Notice Rule in a dismissal based on a
just cause?
a. Notice which informs the employee of the employer's decision;

b. Notice informing the employee of the infractions he allegedly committed
and requires him to explain in writing why he should not be penalized, or
possibly be dismissed, because of those infractions;
c. Notice of the immediate dismissal of such employee;
d. Notice which informs the employee of the employer's compliance with due
process.

3. If the separation is based on the "authorized causes" under Article 298 or 299, the
law requires the employer to give both the worker and the DOLE written notices
______ ahead Of the projected separation.
a. 15 days
b. 30 days
c. 60 days
d. 5 days
BASIS: Legal basis (Page 416 and 417, Azucena)
4. What is the employer's liability in not observing proper procedure under a valid
cause of dismissal?
a. Make the employer liable for damages.

b. The employer should reinstate the employee.
c. All of the above.
BASIS: Legal basis (Page 417, Azucena)
5. What is the maximum period for preventive suspension? Beyond this period, the
employee becomes entitled to his pay and benefits and the employer may be req
uired to pay indemnity.
a. 90 days
b. 60 days
c. 30 days
d. 20 days
BASIS: JRS Business Corp. v. NLRC, et. al., 246 SCRA 445, 1995, (P. 419, Azucena L
abor Reviewer)
6. This connotes a dismissal hidden behind acts that appear neutral or normal, or e
ven helpful, but in truth are motivated by hidden desire to expel the employee, su
ch as when the preventive suspension exceeds 30 days, when employee’s status
is changed from regular to casual, or reduction of work for unspecified reasons.
a. Justified Dismissal
b. Constructive Dismissal
c. Illegal Dismissal
d. Dismissal in the exercise of management prerogative
BASIS: Hyatt Taxi v. Catinoy, GR No. 143204, June 26, 2001 (P. 421, Azucena Labor R
eviewer)
7. It is a term which connotes a dismissal hidden behind acts that appear neutral or
normal or even helpful, but in truth are motivated by hidden desire to expel the
employee.
a. constructive dismissal
b. floating dismissal
c. perpetual dismissal
d. freezing dismissal
BASIS: Page 422, Azucena 2021. It is a dismissal in disguise, an act amounting to

dismissal but made appear as if it were not. (Galang v. Baie, July 20, 2016)
8. A. Just causes of employment termination deal with authorized causes.
B. The just causes and authorized causes are not intrinsically different because what is
"just" can also be authorized and something authorized should not be presumed unjust.
a. Statement A is correct only.

b. statement B is correct only.
c. Both A and B are correct.
d. Both A and B are not correct.
BASIS: Under Art. 297 takes up "just causes" of employment termination, Art 298 and
299 deal with "authorized cases.
The difference in labels is not strictly observed even in judicial statements. But
the differentiation has significance. The just causes relate to acts done by the employee,
while the authorized causes (except disease) involve measures taken by the employer
because of business exigencies. Moreover, the just causes generally do not entail
payment of separation pay; the authorized causes generally do. (Page 424, Azucena
2021)
9. Retrenchment is the authorized reduction of personnel because of losses

or imminent losses of the business
Which of the following is/are fair and reasonable criteria to be used in selecting
employees to be dismissed on account of retrenchment?
a. Less preferred status, seniority, physical fitness

b. Efficiency rating,
c. financial hardship
d. all of the above
e. letter A only
BASIS: Azucena reviewer P. 427 There must be fair and reasonable criteria to
be used in selecting employees to be dismissed on account of retrenchment, such as (a)
less preferred status (ie, temporary employees); (b) efficiency rating; and (c)
seniority, (Asiaworld, July 23, 1987) Physical fitness, age,
or financial hardship for certain workers may also be Consiidered. (Phil, Airlines,
June 8, 2016)
10. Maria was illegally retrenched. However she already signed quitclaims and
accepted retrenchment pay. Is she entitled for reinstatement or separation pay?
a. No, Maria had accepted the retrenchment pay, this amounts to estoppel.
b. No, Maria was already properly compensated, no separation pay nor
reinstatement is necessary.
c. Yes, Maria may be awarded at the rate of half moth’s pay for every year of
service but she is not entitled to back wages because she received
retrenchment pay.
d. Yes, Maria may be reinstated but if she asks for separation, she is entitled
to a separation pay in lieu of reinstatement may be awarded at the rate of
one month’s pay for every year of service and full back wages will have
to be paid in view of illegality of separation.
BASIS: Azucena Reviewer P. 426 (F.F. Marine Corp., April 8, 2005)

11. The following are the three requirements for the cessation of business not due to
business reverses to be valid, except:
a. Service of a written notice to the employees and to the DOLE at least one
month before the intended date thereof;
b. The cessation of or withdrawal from business operations must be bona fide in
character;
c. Payment to the employees of termination pay amounting to at least onehalf
month pay for each year of service, or one month pay, whichever is higher;
d. Publication in a newspaper of general circulation for three consecutive
weeks.
BASIS: Page 428 of Azucena (2021)
Cessation of business not due to business reverses is subject to three requirements,

namely;
(a) service of a written notice to the employees and to the DOLE at least one month
before the intended date thereof;
(b) the cessation of or withdrawal from business operations must be bona fide in
character; and
(c) payment to the employees of termination pay amounting to at least onehalf month
pay for each year of service, or one month pay, whichever is higher.
(Mobil Employees, March 28, 1990)
12. Which among the statements relating to the purchase/sale of a corporation,

is incorrect?
a. There is no law which requires the purchaser to absorb the employees of the
selling corporation.
b. The purchasing company may do, for purposes of public policy and social
justice, is to give preference to the qualified
c. separated employees of the selling company who in its judgment are necessary
in the continued operation of the business establishment.
d. Termination of the services of employees, which are reasonable and done
in good faith, will allow the employer [the selling corporation} to avoid
payment of the corresponding separation pay.
BASIS: PAGE 429 of Azucena (2021)
Sale In Good Faith; OBLIGATIONS OF TRANSFEREE
There is no law which requires the purchaser to absorb the employees of the selling
corporation, (MDI Supervisors, 79 SCRA 40 [1977])
As there is no such law, the most that the purchasing company may do, for purposes of
public policy and social justice, is to give preference to the qualified separated
employees of the selling company who in its judgment are necessary in the continued
operation of the business establishment. (Ibid.)
However, the termination of the services of employees, though reasonable and done in
good faith, will not allow the employer [the selling corporation} to avoid payment of the
corresponding separation pay in accordance with law, (Lucena Oil, November 17, 1986;
Second Division, Minute Resolution)
13. An employer may terminate the services of an employee who has been found to
be suffering from any disease and whose continued employment is prohibited by
law or is prejudicial to his health of his co-employees: Provided,
a. That he is paid separation pay equivalent to at least one (1) month salary or to
one-half (1/2) month salary for every year of service, whichever is lesser, a
fraction of at least six (6) months being considered as one (1) whole year.
b. That he is paid separation pay equivalent to at least one (1) month salary
or to one-half (1/2) month salary for every year of service, whichever is
greater, a fraction of at least six (6) months being considered as one (1)
whole year.
c. That he is paid separation pay equivalent to at least one (1) month salary or to
one-half (1/2) month salary for every year of service, whichever is lesser, a
fraction of at least three (3) months being considered as one (1) whole year.
d. That he is paid separation pay equivalent to at least one (1) month salary or to
one-half (1/2) month salary for every year of service, whichever is greater, a
fraction of at least 3 (three) months being considered as one (1) whole year.
BASIS: Art. 299-Disease as ground for termination (Page 431, Azucena)
14. A. The employment termination based on authorized causes requires payment of

separation pay and service of notice.
B. The notice should be served to the individual employee and to DOLE at least 30
days after the effectivity of the separation.
a. Only Statement A is correct

b. Only Statement B is correct
c. Both A and B are correct
d. Both A and B are incorrect.
BASIS: The notice should be served to the individual employee and to DOLE at least 30
days before the effectivity of the separation. (Page 431, Azucena)
15. Where the charge against an employee has not been substantiated, his dismissal
is unwarranted and therefore, illegal. Considering that the relationship between the
employee and the employer has been severely strained by reason of their
respective imputations of bad faith against each other, to order reinstatement
would no longer serve any prudent purpose. In this situation, instead of
reinstatement, the Court would order _____________.
a. payment of back wages and separation.

b. fine and separation
c. Suspension of employer and payment of back wages
d. Suspension of business permit and fine.
BASIS: Azucena (2021), page 434
16. What are the two (2) reliefs given to an illegally dismissed employee?
a. Reinstatement if viable or separation pay if reinstatement is no longer

viable and back wages.
b. Separation pay and back wages
c. Separation pay in lieu of reinstatement (SPIR) and back wages
d. Promotion and fine against the employer.
BASIS: Azucena (2021), page 435.
17. The long-standing jurisprudence holds that in the event the aspect of reinstatement
is disputed, backwages including separation pay, shall be computed from the
___________ until the ___________ ordering the separation pay.
a. Time of dismissal, finality of the decision

b. Time of dismissal, promulgation of judgment
c. Filing of complaint, finality of the decision
d. Filing of complaint, promulgation of judgment
BASIS: Page 437 of Azucena Book, The long-standing jurisprudence holds that in the
event the aspect of reinstatement is disputed, backwages including separation pay, shall
be computed from the time of dismissal until finality of the decision ordering the
separation pay.
18. Are the company officials personally liable for the wrongful dismissal of
employees?
a. Yes, because its part of their responsiblity as the employer.

b. Yes, because company officials are the one managing the task of the
employees.
c. As a rule, cannot be held personally liable for damages for an employee's
illegal dismissal. This is because the employer corporation has a
personally separate and distinct from that of its officers who merely acts
as its agents.
d. Both a and b are correct.
BASIS: Page 439 of Azucena Book, Are the company officials personally liable for the
wrongful dismissal of employees? As a rule, cannot be held personally liable for
damages for an employee's illegal dismissal. This is because the employer corporation
has a personally separate and distinct from that of its officers who merely acts as its
agents. (Malayang Samahan ng mga Manggagawa, February 28, 2000).
19. An employee may put an end to the relationship without serving any notice on the
employer for any of the following just causes, except for:
a. Serious insult by the employer or his representative on the honor and person
of the employee
b. Inhuman and unbearable treatment accorded the employee by the employer or
his representative
c. Commission of a crime or offense by the employer or his representative against
the person of the employee or any of the immediate members of his family
d. By serving 1 week notice in advance
BASIS: Page 440 of Azucena (2021), Article 300 of the Labor Code
20. What is the liability of an employer for unjustly putting an employee in a “floating
status”?
a. The employer is liable to pay the back wages of the dismissed employee
b. The employer is liable for constructive dismissal
c. The employer is not liable for anything since it is a management prerogative
d. The employer is not liable because the employee is still considered as an
employee of the company
BASIS: Telus International Phil. us. H. De Guzman, December 4, 2019. Page 441 of
Azucena (2021)
21. As applied to security guards, this is the period of time when security guards are
in between assignments or when they are made to wait after being relieved from
a previous post until they are transferred to a new one.
a. Request for Removal

b. Floating Status
c. Waiting Period
d. Preventive Suspension
BASIS: Applying Article 301 [286] by analogy, the Supreme Court has recognized that
Security Guards may be temporarily sidelined with clients. This is called "floating status".
As applied to security guards, this is the period of time when security guards are in
between assignments or when they are made to wait after being relieved from a
previous post until they are transferred to a new one. (Page 443, Azucena)
22. In the absence of the retirement age established in a Collective Bargaining
Agreement, the compulsory retirement age for any employee is:
a. 50 years old
b. 60 years old
c. 65 years old
d. 70 years old
BASIS: Article 302[c] In the absence of a retirement plan or agreement providing for
retirement benefits of employees in the establishment, an employee upon reaching the
age of of sixty (60) years or more, but not beyond sixty-five (65) years, which is hereby
declared as compulsory retirement age x x x (Page 445, Azucena)
23. Part- time workers are entitled to retirement pay after satisfying the following
conditions for optional retirement, except;
a. There is no retirement plan between the employer and the employee

b. The employee should have reached the age of 60 years
c. Should have rendered at least five (5) years of service with the employer
d. The employer should have reached the age of 60 years
BASIS: Handbook on Workers Statutory Monetary Benefits,2016 p.48 (Page 447,

Azucena)
24. The retirement pay under Article 302 of the Labor Code consists of the following
items, except;
a. Fifteen days’ salary based on the latest salary rate

b. Cash equivalent of five days of service incentive leave
c. One-twelfth (1/12) of the thirteenth month pay (1/12x365/12= .083x30.41=2.5)
BASIS: Article 302 Labor Code. (Page 446, Azucena)

25. Except as otherwise provided in this Code, or unless the acts complained of hinges
on a question of interpretation of implementation of ambiguous provisions of an
existing CBA, any violation of the provision of this Code declared to be unlawful or
penal in nature shall be punished with __________________________.
a. a fine of not less than PHP10,000.00 nor more than PHP20,000.00, or

imprisonment of not less than 6 months nor more than 3 years, or both such
fine and imprisonment at the discretion of the court.
b. a fine of not less than PHP1,000.00 nor more than PHP10,000.00, or
c. a fine of not less than PHP10,000.00 nor more than PHP50,000.00, or
d. a fine of not less than PHP1,000.00 nor more than PHP10,000.00, or
imprisonment of not less than 3 months nor more than 3 years, or both
such fine and imprisonment at the discretion of the court.
BASIS: Art 303 (288), page 449 Azucena Reviewer 2021
26. Offenses penalized under this Code and rules and regulations issued pursuant
thereto shall prescribe in ____________.
a. 3 years
b. 1 year
c. 2 years
d. 4 years
BASIS: Art 305 (290), page 450 Azucena Reviewer 2021
27. Who shall initiate such measure as may be necessary for the integration of
maternity leave benefits into the Social Security Services in the case of private
employment and Government Service Insurance System in the case of public
employment?
a. Secretary of Finance
b. Labor Arbiter
c. Mediator
d. Secretary of Labor
BASIS: Art. 309 [294]. SECRETARY OF LABOR TO INITIATE INTEGRATION OF
MATERNITY LEAVE BENEFITS. PAGE 452, Azucena
28. What court was abolished under Presidential Decree No. 21, whereby all
unexpected funds, properties, equipment and records of the said court were
transferred to the Commission and to its regional branches?
a. Court of Commerce
b. Court of Justice
c. Labor Arbiter
d. Court of Industrial Relations
BASIS: Art. 313 [ 298]. ABOLITION OF THE COURT OF INDUSTRIAL RELATIONS

AND THE NATIONAL LABOR RELATIONS COMMISSION. PAGE 453, Azucena
29. Who are ultra-high net worth individuals?
a. They are people with investible assets of at least $30 million.

b. They are people with investible assets of at least $10 million.
c. They are people with investible assets of at least $5 million.
BASIS: Page 445, Book of Azucena, provides for an article for Millionaires for Humanity
30. What group stated that, “they should be taxed higher, immediately, substantially,
permanently”?
a. Ultra-high net worth individuals

b. Oxfam Tax Justice
c. Millionaires for Humanity
BASIS: Page 455, Azucena, provides the data gathered and presented through tables
the topics on Household Population 15 Years Old and Over and Employment Status by
Sex and Employed Persons by Sex, Age Group and Highest Grade Completed
31. It refers to any person, partnership or corporation engaged in the recruitment and
placement of workers for local employment.
a. Private employment agency or agency

b. Public employment agency
c. Overseas employment agency
d. Public Employment Service Office
BASIS: Section 3 REVISED RULES AND REGULATIONS GOVERNING

RECRUITMENT AND PLACEMENT FOR LOCAL EMPLOYMENT. ( Page 462. Azucena
Reviewer. 2021)
32. It refers to any person engaged in domestic work within an employment

relationship, whether on a live in or live out arrangement, such as, but not limited
to general househelp, yaya, cook, gardener, or laundry person, but shall exclude
service providers, family drivers, children who are under foster family arrangement,
or any person who performs domestic work only occasionally or sporadically and
not on occupational basis.
a. Domestic Worker
b. Kasambahay
c. Either a or b
d. Neither a nor b
BASIS: Section 3 REVISED RULES AND REGULATIONS GOVERNING

RECRUITMENT AND PLACEMENT FOR LOCAL EMPLOYMENT. ( Page 463. Azucena
Reviewer. 2021)
33. This person refers to a person engage in domestic work within an employment
relationship, whether on a live in or out arrangement, such as, but not limited to
general househelper, yaya, cook, gardener, or laundry person, but shall exclude
service providers, family drivers, children who shall under foster family
arrangement, or any person who performs domestic work only occasionally or
sporadically and not on occupational basis.
a. Domestic Worker or kasambahay
b. Domestic Seafarer
c. Recruiter
d. Seafarer
BASIS: Department Order No. 142-14 Revised Rules and Regulations Governing
Recruitment and Placement for Local Employment (Page 463, Azucena)
34. ________ refers to the amount charged by a private employment agency to a local
employment as payment for actual services rendered in relation to the recruitment
and placement of workers.
a. Service contract
b. Employment contract
c. Service fee
d. Deployment expenses
BASIS: Department Order No. 142-14 Revised Rules and Regulations Governing
Recruitment and Placement for Local Employment (Page 463, Azucena)
35. Who is not qualified to engage in the business of recruitment and placement for
local employment
a. Convicted of illegal recruitment

b. Those against whom probable cause finding of guilt for illegal recruitment
c. Agencies whose licenses have been previously revoked
d. All of the above states
BASIS: Legal basis (Page 464, Azucena) Department order no. 141-14 series of 2014,
Section 5 - Disqualifications.
36. Where to file the application for license
a. Regional trial court where the place of business

b. Regional office of the POEA where the place of business is located
c. Regional office or field office having jurisdiction over the place where the
applicant’s intends to establish its office
d. Office of the mayor
BASIS: Legal basis (Page 464, Azucena) Department order no. 141-14 series of 2014,
Section 8 - Where to file.
37. In case of transfer to another region and within fifteen (15) days prior to the date
of transfer, the agency shall do the following except:
a. Secure a clearance of no pending case from the issuing Regional Office

b. Notify the Regional Office which has jurisdiction over the new place of business
c. Submit to the receiving Regional Office a clearance of no pending case, location map
of the new office and a copy of the contract of lease or certificate of ownership
d. Post the new address for ten days in a public location
BASIS: Section 18. Change of address. xxx 4. Publish the new address for two (2)
consecutive weeks in a newspaper of general circulation. (Azucena, 2021 pg. 467)
38. An agency applying for an authority to operate branch office must submit the
following requirements except;
a. Proof of payment of filing fee of P2,000.00

b. Certified copy of a valid license
c. Organizational structure of the branch office, including duly notarized appointments
d. Affidavit of Good Moral Character of branch manager
BASIS: Section 26. Requirements. — An agency applying for an authority to operate

branch office must submit the following requirements: xxx c) NBI clearance of the branch
manager and staff members; e. Bio-data and one passport-size picture of the branch
manager and staff members; and d) Certification that the branch office has an office
space with a minimum floor area of 50 square meters for the exclusive use of the branch
office.(Azucena, 2021 pg. 469)
39. An employer is entitled to a refund of ____ of the service fee if the agency failed
to provide a replacement of worker based on the enumerated valid grounds after
the lapse of 1 month from receipt of request unless the parties agreed on a longer
period.
a. 50%
b. 65%
c. 75%
d. 80%
BASIS: Section 38. Refund of service fee- the employer is entitled to a refund
of seventy-five (75%) percent of the service fee if the agency failed to provide a
replacement of worker based on the enumerated valid grounds after the lapse of 1
month from receipt of request unless the parties agreed on a longer period. (Page 471 ,
Azucena)
40. Statement 1: No fees whatsoever shall be collected neither deducted from the
salaries or wages of the workers.
Statement 2: In case of loss of license or authority, the license or holder of authority

shall submit another application for the issuance of a new license or authority.
a. Statement 1 is correct
b. Statement 2 is correct
c. Both are correct
d. Both are incorrect
BASIS: Section 35. Fees and Charges-No fees whatsoever shall be collected neither
deducted from the salaries or wages of the workers.
Section 34. Loss of license or authority- In case of loss of license or authority, the
license or holder of authority shall submit an affidavit of loss and pay a replacement fee
of P1,000.00. (Page 470, Azucena)
41. What is illegal recruitment?
a. Illegal recruitment shall mean any act of conserving, delisting, contracting,

utilizing, hiring, or procuring workers and includes referrals whether for profit or
not.
b. Illegal recruitment shall mean any act of canvassing, enlisting, contracting,
utilizing, hiring or procuring workers and includes referrals, contract services,
promising or advertising for local employment, whether for profit or not, when
undertaken by a licensee or holder of authority; Provided, that any such
licensee or holder of authority who, in any manner, offer or promises for a fee
employment to two or more persons shall be deemed so engaged.
c. Illegal recruitment shall mean any act of canvassing, enlisting,
contracting, utilizing, hiring or procuring workers and includes referrals,
contract services, promising or advertising for local employment,
whether for profit or not, when undertaken by a non-licensee or non-
holder of authority; Provided, that any such non-licensee or non-holder
of authority who, in any manner, offer or promises for a fee employment
to two or more persons shall be deemed so engaged.
BASIS: Acts constituting illegal recruitment- Section 42, DO No. 141-14 Series of 2014
42. Which of the following are considered serious administrative offenses with the
penalty of cancellation of license/authority?
a. Recruitment and placement of workers in violation with the penalty of

cancellation of license/authority;
b. Engaging in acts of misrepresentation for the purpose of securing a license or
renewal thereof;
c. Engaging in the recruitment or placement of workers in jobs harmful to public
health or morality or to the dignity of the Republic of the Philippines
d. All of the above
BASIS: Classification of offenses- Section 51, DO No. 141-14 Series of 2014
43. Which of the following is NOT a content of a labor complaint?
a. name and address of the complainant

b. specific act complained of
c. relief sought
d. why the acts complained of was committed
BASIS: Section 55, Department Order No. 141-14, Series of 2014 (Page 476-477,
Azucena)
44. Upon receipt of the complaint, the Regional Director shall issue a cause order
directing the respondent to file within _________ from receipt thereof a verified
answer/counter-affidavit attaching all pertinent documents in support of its
defense.
a. 5 days
b. 10 days
c. 15 days
d. 20 days
BASIS: Section 56, Department Order No. 141-14, Series of 2014 (Page 477, Azucena)
45. This refers to the attestation by the Philippine Consular Office or competent
authority of the genuineness of the signature appearing on the document, for the
purpose of identifying a specific document and giving credence to the official act
of the notary public or certifying officers thereon for use, if and when required, as
an instrument of evidence in a foreign country.
a. Accreditation
b. License
c. Delegation
d. Authentication
BASIS: Authentication refers to the attestation by the Philippine Consular Office or

competent authority of the genuineness of the signature appearing on the document, for
the purpose of identifying a specific document and giving credence to the official act of
the notary public or certifying officers thereon for use, if and when required, as an
instrument of evidence in foreign country. (RULE II, Revised POEA Rules and
Regulation, Page 481- Azucena).
46. Accreditation is the grant of authority by the _________ to a foreign __________

to recruit and hire Filipino workers through a licensed recruitment agency for
overseas employment.
a. DOLE; principal
b. NLRC; employer
c. OWWA; agency
d. POEA; principal
BASIS: Accreditation is the grant of authority by the POEA/ Administration to a foreign
principal/employer to recruit and hire Filipino workers through a licensed recruitment
agency for overseas employment (RULE II, Revised POEA Rules and Regulation, Page
481- Azucena).
47. Refers to the actual costs incurred in the documentation of an applicant- worker in
relation to his/ her application for overseas employment.
a. Documentation cost
b. Placement fee
c. Agency fee
d. Employment contract costs
e. Finders fee
BASIS: Page 83 of Azucena's Reviewer on Labor Law.
48. Refers to the document issued by Secretary or his/ her duly authorized
representative authorizing a person, partnership or corporation to operate a
recruitment agency.
a. License
b. Licensed recruitment document
c. Employment contract
d. Master employment contract
e. Overseas employment contract
BASIS: pages 483 and 484 of Azucena's Reviewer on Labor Law.
49. The following persons and entities are disqualified to participate or engage in the
recruitment and placement of workers for overseas employment except?
a. Travel agencies and sales agencies of airline companies

b. Officers or members of the Boards of any corporation or partners in a
partnership engaged in the business of a travel agency
c. Corporations, partnerships and sole proprietors, where any of its officers,
members of the board or partners is also an officer, member of the board
or partner of a corporation or partnership engaged in the business of a
travel agency
d. Individuals, partners, officers or directors of an insurance company who make,
propose or provide an insurance contract under the compulsory insurance
coverage for agency-hired Overseas Filipino Workers
BASIS: Implementing Rules of Book I, Rule 1, Section 3. Who are Disqualified: (c)
Corporations and partnerships , where any of its officers, members of the board or
partners is also an officer, member of the board or partner of a corporation or
partnership engaged in the business of a travel agency (Page 485, Azucena)
50. Any person applying for a license to operate a recruitment agency shall file a
written application with the Administration, together with the following requirements
except?
a. Business Name Certificate issued by the DTI in the case of single

proprietorship, or a certified copy of the Articles of Partnership or Articles of
Incorporation duly registered with the SEC in the case of a Partnership or
Corporation
b. Proof of Financial Capacity
c. Proof of possession by the sole proprietor, managing partner, president
or chief executive officer, as the case may be, of a bachelor's degree or
at least five (5) years’ experience in human resource management or
experience in heading or managing a manpower business
d. A duly notarized undertaking by the sole proprietor, the managing partner, or
the president of the corporation
BASIS: Rule 2, Section 4. Pre-Qualification Requirements. (d) Proof of possession by

the sole proprietor, managing partner, president or chief executive officer, as the case
may be, of a bachelor's degree or at least four (4) years experience in human resource
management or experience in heading or managing a manpower business (Page 486-
487, Azucena)
51. In case of a corporation or partnership, there is a need to have a duly notarized

undertaking by the corporate officers and directors, prior to the issuance of a
license to operate. What is the contractual liability of corporate officers and
directors, or partners in cases for claims and/or damages that may be awarded to
the workers?
a. Regardless of the circumstance, in case of bad faith, they are jointly

and severally liable.
b. They have unlimited liability because this involves public interest and that
Labor is Constitutionally protected.
c. Jointly liable unless it is proved to be contrary.
d. Only liable if it is expressly mentioned in the contract.
52. The applicant of the license to operate shall submit a post-qualification requirement
of an escrow agreement with a bank authorized by the Bangko Sentral ng Pilipinas
to handle trust accounts. What is NOT true with regard to this escrow agreement?
a. The escrow agreement shall have a minimum amount of deposit of PhP

1,000,000.00.
b. The escrow deposit shall answer only for all valid and legal claims arising
from contracts of employment and violations of the conditions for the grant
and use of the license, including fines imposed by the Administration.
c. The escrow deposit shall be sourced from the capitalization
requirement.
d. The escrow will guarantee compliance with prescribed recruitment
procedures, rules and regulations, appropriate terms and conditions of
employment, and relevant issuances of the DOLE.
BASIS: Page 489-490, Azucena
53. The POEA shall evaluate the application within working days from receipt
of the application of renewal of license of a recruitment agency.
a. 5 working days.
b. 10 working days.
c. 15 working days.
d. Within a month.
BASIS: Section 16. Action of renewal of license - The Administration shall evaluate the
application within five (5) working days from receipt of such application. The license
remains valid until the application shall have been finally acted upon. (Page 492.
Azucena Reviewer. 2021)
54. During the renewal of license, the POEA shall require an additional escrow
deposit and the total escrow deposit shall, in no case,
exceed .
a. One million pesos (PhP1,000,000.00)

b. Two million pesos (PhP2,000,000.00)
c. Three million pesos (PhP3,000,000.00)
d. None of the choices.
BASIS: The total escrow deposit shall, in no case, exceed Two million pesos
(PhP2,000,000.00) (Page 491. Azucena Reviewer. 2021)
55. The following must be submitted by licensed recruitment agency before they can
transfer business address EXCEPT:
a. Copy of lease contract or proof of building ownership.

b. Letter of Intent to transfer office in the case of sole proprietorship, or a
partnership or Board Resolution approving the transfer of office in case of a
partnership or a corporation.
c. General Information Sheet and the bio-data, pictures, NBI
clearances, AIRB clearances, and income tax returns with proof of
payment for the last two (2) years of the new directors.
BASIS: Section 28, Rule II, Revised POEA Rules and Regulations Governing
the Recruitment and Employment of Landbased Overseas
Filipino Workers Of 2016. (Page 494, Azucena)
56. The Assessment for upgrading of the provisional license to a regular license,
renewal of license and branch authority, and transfer of office shall cover the
following EXCEPT:
a. Examination of books of accounts, official receipts, and financial statements.

b. Maintenance of the required signs and postings, such as POEA door sticker,
agency license, organizational chart, “Kaukulang Bayad” poster and anti-
illegal recruitment campaign posters.
c. Compliance with the assessment rules and occupational safety and
health standards.
d. Maintenance of the minimum office space, facilities, and equipment.
BASIS: Section 35 (b), Rule III of the Revised POEA Rules and Regulations Governing
the Recruitment and Employment Of Landbased Overseas Filipino Workers Of 2016
provides that the assessment shall cover Compliance with general labor standards and
occupational safety and health standards. (Page 496, Azucena).
57. In case of non-compliance, the LLCO together with the accomplished assessment
checklist indicating the deficiencies, shall issue what?
a. Notice of Results
b. Notice of Non-compliance
c. Notice of Accomplishment
d. Notice of Assessment
BASIS: Part II, Rule III, Sec. 41 of the REVISED POEA RULES AND REGULATIONS
GOVERNING THE RECRUITMENT AND EMPLOYMENT OF LANDBASED
OVERSEAS FILIPINO WORKERS OF 2016 (p.497, Azucena Book)
58. From receipt of application, the Administration shall issue a special license to the
POCB-registered companies provided all the requirements are met by the
applicant, within how many hours?
a. twenty-four (24)
b. sixteen (16)
c. twelve (12)
d. eight (8)
BASIS: Part II, Rule IV, Sec. 45 of the REVISED POEA RULES AND REGULATIONS
GOVERNING THE RECRUITMENT AND EMPLOYMENT OF LANDBASED
OVERSEAS FILIPINO WORKERS OF 2016 (p.498, Azucena Book)
59. A licensed recruitment agency may conduct recruitment activities outside its
registered address by securing a ____ prior to the conduct of the recruitment.
a. Special Recruitment Authority

b. General Recruitment Authority
c. Standard Employment Contract
d. Overseas Employment Certificate
BASIS: Sec. 58. Special Recruitment Authority. – A licensed recruitment agency may
conduct recruitment activities outside its registered address by securing a Special
Recruitment Authority prior to the conduct of the recruitment. (Page 501, Azucena)
60. Which of the following are not requirements for the issuance of Special
Recruitment Authority (SRA)?
a. Letter request from the agency stating the exact date and venue of the special
recruitment activity, as well as the name(s) of the designated representative/s.
b. List of accredited principals/employers with sufficient job order balance.
c. Proof of notice to the local government unit through the Public Employment Service
Office (PESO).
d. An undertaking that the agency shall take full responsibility for the acts of its
representative officers and employees, and/or the employer or his/her authorized
representative.
e. None of the above. All are requirements for the issuance of SRA.
BASIS: Sec. 59. Requirements for the Issuance of Special Recruitment Authority. – A
Special Recruitment Authority (SRA) may be issued upon submission of the following
requirements:
a. Letter request from the agency stating the exact date and venue of the special
recruitment activity, as well as the name(s) of the designated representative/s;
b. List of accredited principals/employers with sufficient job order balance;
c. Proof of notice to the local government unit through the Public Employment
Service Office (PESO); and
d. An undertaking that the agency shall take full responsibility for the acts of its
representative officers and employees, and/or the employer or his/her authorized
representative. (Page 501, Azucena)
61. This refers to any act of canvassing, enlisting,contracting, transporting , utilizing or

hiring or procuring workers and includes referrals, contract services, promising or
advertising for employment abroad, whether for profit or not , when undertaken by
a non-licensee or non- holder of authority.
a. Illegal recruitment
b. Recruitment
c. Illegal trafficking of persons
BASIS: Section 76, Rule X of the Rules Implementing the Labor Code. (Page 504 of
Azucena Reviewer (2021)).
62. The following are prohibited acts committed by any person whether or not a
licensee or a holder of authority which may held him/her liable for illegal
recruitment, except:
a. To furnish or publish any false notice or information or document in relation to

recruitment or employment.
b. To obstruct or attempt to obstruct inspection by the .Secretary of Labor or
his/her authorized representative.
c. To fail to actually deploy a contracted worker without valid reason as
determined by DOLE.
d. To allow Filipino citizen to head or manage a recruitment agency.
BASIS: Section 76, Rule X paragraph c, h, m and o of the Rules Implementing the Labor
Code. What is prohibited under paragraph O is “to allow non-Filipino citizen to head
or manage a recruitment agency”. (Page 505, Azucena Reviewer (2021)).
63. The Administration shall adopt policies and procedures, prepare and implement
programs toward the eradication of illegal recruitment and trafficking in persons
committed by means of, or in the guise of recruitment for overseas employment
such as, but not limited to the following:
a. Legal assistance and counseling to victims on criminal and/or administrative

actions.
b. Investigation and conduct of operations such as surveillance of persons and
entities, closure of establishment, and assistance during entrapment/arrest;
c. Prosecution including legal assistance to victims during preliminary
investigation and during trial in collaboration with the prosecutors of the
Department of Justice;
d. Information and education campaign on overseas employment and ant-illegal
recruitment and anti-trafficking in persons.
e. All of the above
BASIS: Section 78 Anti-Illegal Recruitment and Anti-Trafficking in Persons Programs of

Rules Implementing the Labor Code. (Page 506 Azucena Reviewer 2021).
64. Victims of illegal recruitment or trafficking in persons involving recruitment for
overseas employment and related eases may report or file a complaint with the
___________ or its regional offices, or the Administration or its regional centers/
extension units.
a. NLRC
b. DOLE
c. Labor Arbiter
d. OWWA
BASIS: Section 80 Receiving Complaints Rules Implementing the Labor Code. (Page
507 Azucena Reviewer 2021).
65. Which of the following has authority for the accreditation of principals/employers in
countries/territories where it has jurisdiction.
a. Philippine Overseas Labor Office (POLO)

b. Philippine Overseas Office
c. Philippines Labor Embassy
d. Department of Foreign Affairs
BASIS: (Page 509, Azucena) Accreditation of Principals/Employers. The

Administration shall accredit principals/employers. This authority may be delegated to
the POLO in countries/territories where it has jurisdiction.
66. Which of the following is NOT a general requirement for accreditation of the
Principal/Employer?
a. Recruitment Agreement
b. Service Agreement
c. Master Employment Contract
d. Contingency Plan
BASIS: (Page 510, Azucena)

The following are General requirements for accreditation of the principal/employer
1. Recruitment Agreement;
2. Job order indicating the positions, the number of positions required and salary per po
sition;
3. Copy of valid commercial registration and business license of the principal issue
d and authenticated by the chamber of commerce or a relevant government office, includ
ing information on business activities, number of years in operation and volume; size of c
urrent labor force;
4. Master employment contract signed on all pages by the principal or his/her authoriz
ed representative; and
5. Contingency plan as may be applicable,
67. What is the effect of suspension of accreditation by the POLO?
a. The suspension of accreditation by the POLO shall have the effect of

suspending the documentary processing of the principal/employer at the
POLO and the administration.
b. The suspension of accreditation by the POLO shall have the effect of cancelling
the documents of the principal/employer at the POLO and the administration.
c. The suspension of accreditation by the POLO shall have the effect of ceasing
the application of the principal/employer at the POLO and the administration.
d. The suspension of accreditation by the POLO shall have the effect of rescinding
the application of the principal/employer at the POLO and the administration.
BASIS: Page 512, Azucena.
68. Job orders approved by the administration shall be valid for a period of________
years subject to revalidation for another ________ years upon confirmation of the
principal/employer.
a. Two (2); two (2)

b. Three (3); three (3)
c. Four (4); four (4)
d. Five (5); five (5)
BASIS: Page 513, Azucena.
69. Under the provisions on documentation and deployment of OFWs, the following
are the documentary requirements for the processing of new hires except:
a. Request for processing using the POEA-prescribed form;
b. Passport valid at least three (3) months from the intended date of
departure;
c. Pre-Employment Orientation Seminar and Pre-Departure Orientation Seminar
Certificates;
d. Certificate of medical fitness issued by DOH-accredited medical clinics for
OFWs
70. The registration of the returning OFW shall be online or by submission of the
following documents except:
a. Passport valid at least six (6) months from the date of intended departure;
b. Valid and appropriate visa or work permit;
c. Certificate of insurance coverage;
d. TESDA Skill Certification
71. The following are exempted from the ban on direct hiring:
a. Members of the diplomatic corps;

b. International organizations;
c. Heads of state and government officials with the rank of at least deputy
minister;
72. Administration shall recruit and place Overseas Filipino Workers primarily on
_____________ arrangements and shall therefore service the hiring of foreign
governments and their instrumentalities.
a. contractual
b. permanent
c. government-to-government
d. employer-employee
73. Generally, employers shall not directly hire an Overseas Filipino Worker for
overseas employment. Who among the following are
NOT exempted from the ban on direct hiring?
a. Members of the diplomatic corps

b. International organizations
c. Head of state
d. Charity organizations to which the Philippines is a beneficiary
BASIS: Section 123 & 124 of the IRR of Book 1 (P. 518, Azucena Labor Reviewer)
74. Who is obligated to repatriate an overseas filipino worker in case of imminent dan
ger due to war, calamity and other analogous circumstances?
a. It shall be at the expense of the employee IF he is not dead.

b. The employer.
c. The employer and employee jointly.
d. The employer and recruitment agency jointly.
BASIS: Section 135 (m), IRR of Book 1 (P. 520, Azucena Labor Reviewer)
75. The penalty of cancellation of license is imposed in acts where engaging in the
recruitment or placement of workers in jobs declared by the Administration is as
harmful to public health or morality or to the dignity of the Republic of the
Philippines.
a. No. it should be suspension only.

b. Yes. It is cancellation under serious offenses.
c. both statements A and B are correct.
BASIS: Page 524, Azucena 2021

Under serious offenses, which are those that, by their nature and effect, are punishable
by cancellation of license, Paragraph d provides that the penalty of cancellation should
be imposed. "Engaging in the recruitment or placement of workers in jobs declared
by the Administration as harmful to public health or morality or to
the dignity of the Republic of the Philippines. "
76. These are offenses which are by their nature and effect are punishable by the
penalty of suspension to cancellation of license.
a. Serious offenses
b. less serious offenses
c. light offenses
d. none of the above.
BASIS: Page 525, Azucena 2021
77. XYZ Recruitment Agency is a licensed recruitment agency. It withheld and denied
the release of travel and other pertinent documents of Inday, an overseas worker
applying on the said recruitment agency. Inday demanded the release of the said
travel and other pertinent documents but the recruitment agency denied. What is
the penalty of the recruitment agency?
a. For first offense -Suspension of License for one year to two year. Plus return
of documents or refund of cost of the documents that the licensed agency failed
to return.
b. For first offense -Suspension of License for four to eight months. Plus return of
documents or refund of cost of the documents that the licensed agency failed
to return.
c. For first offense -Suspension of License for Six months and one day to one
year. Plus return of documents or refund of cost of the documents that the
licensed agency failed to return.
d. For first offense -Suspension of License for two months to six months.
Plus return of documents or refund of cost of the documents that the
licensed agency failed to return.
BASIS: P. 527 Azucena Reviewer 2021 RECRUITMENT VIOLATION CASES,

CLASSIFICATION OF OFFENSES AND SCHEDULE OF PENALTIES -sec. 143 II.
Less serious offenses
78. Fly now Recruitment Agency is imposing a compulsory and exclusive
arrangement whereby an OFW is required to undergo health examinations,
training, seminar, instruction or schooling of any kind only from specifically
designated institutions, entities, or persons or medical clinics, and the cost is
shouldered by the OFW. What is the penalty of Fly now Recruitment Agency for
its violation?
a. For first offense, suspension of License (Two months to Six months)

b. Cancellation of license -the violation is serious
c. Payment of the OFW’s expenses on medical check-ups and trainings, or
seminar
d. None, there is no violation, medical check-ups, trainings, and seminars are
requirements in the application of the OFW.
BASIS: P. 529 Azucena Reviewer RECRUITMENT VIOLATION CASES,

CLASSIFICATION OF OFFENSES AND SCHEDULE OF PENALTIES -sec. 143 II.
Less serious offenses
79. The following are serious offenses under Section 144, committed by a
principal/employer and which shall be grounds for disciplinary action for which
corresponding penalty shall be imposed, except:
a. Simple misconduct against the worker.

b. Unauthorized/ unjustified collection of fee or illegal exaction from an Overseas
Filipino Worker through whatever means, including salary deduction.
c. Gross negligence leading to serious injury or illness or disability or death of the
Overseas Filipino Worker.
d. Conviction of an offense against the Overseas Filipino worker.
SECTION 144 (Implementing Rules of Rule IV of the Labor Code)
Grounds for Disciplinary Action Against Principals/Employers and Penalties. —

Commission by a principal/employer of any of the offenses below shall be a ground for
disciplinary action for which the corresponding penalty shall be imposed.
I. The following are SERIOUS OFFENSES with their corresponding penalties:
a. Unauthorized/ unjustified collection of fee or illegal exaction from an Overseas Filipino

Worker through whatever means, including salary deduction.
Penalty: Permanent Disqualification and delisting from the roster of accredited

principals/employers
b. Passing on to the worker or deducting from the Overseas Filipino Worker's salary the
payment of the cost of the premiums, as provided under the compulsory worker's
insurance coverage.

c. Gross negligence leading to serious injury or illness or disability or death of the

Overseas Filipino Worker.

xxx
e.Conviction of an offense against the Overseas Filipino worker.

Note: Simple misconduct against the worker is considered as less serious offense in
Section 145.
80. Section 143 of the Implementing Rules of the Labor Code, provides that
__________________ offenses are those that by their nature and effect are
punishable by the penalty of reprimand to ______________________ of license.
a. Light; suspension
b. Light; cancellation
c. Less Serious; suspension
d. Less Serious; cancellation
e. Serious; cancellation
Section 143
III. LIGHT OFFENSES are those that by their nature and effect are punishable by the
penalty of reprimand to suspension of license.
a. Influencing any person or entity not to employ any worker who has not applied for
employment through his/her agency, or influencing any person or entity not to employ
any worker who has formed, joined or supported, or has contacted or is supported by
any union or workers’ organization;
Penalty:
1st Offense — Reprimand

2nd Offense — Fine of PhP20,000.00
3rd Offense — Suspension of License
(One month to Three months)
4th Offense — Suspension of License
(Three months to Six months)
XXX
81. The following are SERIOUS OFFENSES which are considered as grounds for
disciplinary action against Principals/ Employers except:
a. Conviction of an offense against the Overseas Filipino Worker
b. Violation of the Anti-Human Trafficking Law
c. Unreasonable/unjustifiable delay and refusal in securing an entry visa for
an Overseas Filipino Worker who needs to be repatriated
d. Non-payment or underpayment of wages and benefits
82. The following are LESS SERIOUS OFFENSES which are considered as grounds
for disciplinary action against Principals/ Employers except:
a. Default on other contractual obligations to the Overseas Filipino Worker

b. Withholding or denying of the worker’s travel and other pertinent documents
c. Grave misconduct against the worker
d. Negligence leading to injury or illness of the worker.
83. Possession or use of prohibited drugs, contraband, alcohol, or ____________

materials in violation of company policy or laws of the host country.
a. pornographic
b. counterfeit
c. seditious
d. Malicious
BASIS: RULE V Disciplinary Action Against Overseas Filipino Workers, paragraph

d. Azucena (2021), page 536
84. An aggrieved person may file a complaint _________ and ___________ for
violation of laws, rules and regulations or other issuances relating to overseas
employment.
a. In writing and under oath

b. Orally and under oath
c. In writing and before the Ambassador
d. In wring and before the vice consul
BASIS: Rule IV, Section 146 Azucena (2021), page 538.
85. The complaint shall be under oath and must be accompanied by the following,
except?
a. Supporting documents
b. Certificate of failure to conciliate
c. Certificate of verification
d. Certificate of non-forum shopping
BASIS: (Page 539, Book of Azucena, Section 148; The complaint shall be under oath
and must be accompanied by the following, a. Supporting documents; b. Certificate of
failure to conciliate; c. Certificate of non-forum shopping)
86. In case the respondent recruitment agency fails to file an Answer, the assigned
_________________ shall proceed with the investigation/ hearing of the case.
a. Overseas Employment Adjudicator (OEA)

b. OWWA
c. POEA
d. Labor Arbiter
BASIS: (Page 540, Book of Azucena, Section 154, Rule V, In case the respondent
recruitment agency fails to file an Answer, the assigned Overseas Employment
Adjudicator (OEA) shall proceed with the investigation/ hearing of the case.)
87. What is the effect of the withdrawal of complaint/desistance in a recruitment case?
a. It shall serve as bar from proceeding with the investigation

b. It shall not bar the Administration from proceeding with the investigation
of the recruitment violation
c. The license of the respondent recruitment agency or the accreditation of the
principal/ employer, or the processing of documents of the Overseas Filipino
Worker, may be given back
d. The Administration shall will no longer resolve the case on the merits
BASIS: Section 164 - Effects of Withdrawal of Complaint/Desistance, Page 542 of
Azucena (2021)
88. In the determination of the penalties to be imposed against a licensed recruitment

agency, the following mitigating, aggravating and alternative circumstances
attendant to the commission of the offense shall be considered, except for:
a. Bad faith
b. Exemplary performance
c. Habitual offender
d. Prejudice to the worker
BASIS: Section 172 - Mitigating, Agpravating or Alternative Circumstances, Page 544 of

Azucena (2021)
89. What will happen to a principal or employer who refused to honor the medical result
of a DOH-Accredited medical clinic?
a. Permanently Disqualified to participate in Overseas Employment Program

b. Temporarily Disqualified to participate in Overseas Employment
Program
c. Shall be granted Clemency
d. Shall be penalized and arrested
BASIS: Rule VI, Sec. 180. A principal/employer who refused to honor the medical result
of a DOH-accredited medical clinic shall be temporarily disqualified o participate in the
overseas employment program. (Page 546, Azucena)
90. What shall have exclusive jurisdiction to act on appeals from the Orders of the
Administration?
a. Office of the President

b. Court of Appeals
c. Office of the DOLE Secretary
d. POEA
BASIS: Rule VII, Section 185. The Office of the DOLE Secretary shall have exclusive
jurisdiction to act on appeals from the Orders of the Administration. (Page 547, Azucena)
91. Execution shall proceed against the assets of the losing recruitment agency in the
following Order, except;
a. supersedeas bond
b. escrow deposit
c. personal property;
d. real property
BASIS: RULE VII, Section 193 of the Rule Implementing the Labor Code, (page 548-
549, Azucena)
92. What should a lawyer indicate in his or her pleadings and motions when appearing
for a party?
a. Attorney’s roll number

b. PTR number
c. IBP number for the current year
d. All of the above
BASIS: RULE VIII, Section 199 of the Rules Implementing the Labor Code, (page 550,
Azucena)
93. When in the course of investigation, another offense is discovered, the

Administration may issue the necessary ______________ or inform the
respondent of the charge discovered during the investigation and enter the same
in the minutes.
a. Suspension Order
b. Termination Order
c. Show Cause Order
d. Show Cause Order or Summons
BASIS: Section 203 IRR, page 551 Azucena Reviewer 2021

94. The _________ shall immediately issue a notice requiring the licensed recruitment
agency to provide, within 48 hours from such notice, the plane ticked advice to the
POLO of Philippine Embassy.
a. POEA
b. OWWA
c. Office of the President
d. DOLE
BASIS: Section 214 (B) IRR, page 553 Azucena Reviewer 2021
95. In order to protect Overseas Filipino Workers from the hazards of war or
deteriorating political and security situations the POEA Governing Board shall
decline specific areas as ________.
a. State of Calamity
b. Safe Areas
c. Danger Zone
d. War Risk Areas
BASIS: Sec. 218. Declaration of War Risk Areas. Page 555, Azucena
96. What agency of the government shall the OWWA coordinate with to undertake the
repatriation of Overseas Filipino Workers in cases of war, pandemic, disasters or
calamities, natural or man-made and other similar events?
a. DOLE
b. DILG
c. SEC
d. DFA
BASIS: Sec. 216. Emergency Repatriation. Page 554, Azucena
97. When will there be a mandatory repatriation without delay?

a. Upon discovery or upon being informed of the presence of an Overseas
Filipino Worker whose actual age falls below the minimum age
requirement for overseas, deployment, the responsible officers in the
foreign service shall, without delay, repatriate the said Overseas Filipino
Worker and advise the DFA through the fastest means of communication
available of such discovery and other relevant information.
b. Upon discovery or upon being informed of the presence of an Overseas Filipino
Worker who shall be repatriated upon advise from the DFA through the fastest
means of communication available of such discovery and other relevant
information.
c. Upon discovery or upon being informed of the presence of an Overseas Filipino
Worker whose actual age is the minimum age requirement for overseas,
deployment, the responsible officers in the foreign service shall, without delay,
repatriate the said Overseas Filipino Worker and advise the DFA through the
fastest means of communication available of such discovery and other relevant
information.
d. Upon discovery or upon being informed of the presence of an Overseas Filipino
Worker for repatriation.
BASIS: Section 217 – Mandatory Repatriation of Underage Overseas Filipino Worker -

Upon discovery or upon being informed of the presence of an Overseas Filipino Worker
whose actual age falls below the minimum age requirement for overseas, deployment,
the responsible officers in the foreign service shall, without delay, repatriate the said
Overseas Filipino Worker and advise the DFA through the fastest means of
communication available of such discovery and other relevant information.(Page 555,
Azucena)
98. This refers to a program wherein the administration shall undertake a

comprehensive and integrated program on overseas employment involving
workers, licensed recruitment agencies, principals/employers and government
personnel for purposes of promoting safe and legal migration and preventing illegal
recruitment and trafficking in persons.
a. Manpower Sourcing Program

b. Public Education Program
c. Workers Education Program
d. Agency Education Program
BASIS: Section 220 – Public Education Program – The Administration shall undertake a
comprehensive and integrated public education program on overseas employment
involving workers, licensed recruitment agencies, principals/employers and government
personnel for purposes of promoting safe and legal migration and preventing illegal
recruitment and trafficking in persons. (Page 555, Azucena)
99. What package of incentive is granted to a recipient of Outstanding Agency Awards

wherein it shall be entitled of an extension of license validity for three (3) full terms,
effective upon expiration of license, subject to corresponding license fee and
escrow agreement?
a. Employer Awardees
b. Presidential Awardees
c. Awardees of Excellence
d. Top Performers
BASIS: SECTION 234. Incentives and System of Recognition (Page 560. Azucena
Reviewer. 2021)
100. The Administration shall confer every four (4) years a two-level award to
deserving principals/employers who have been major providers of decent and
quality employment to Overseas Filipino Workers and who have significantly
contributed to their development as well as the protection and promotion of their
well-being. Which of the following are referred to as the two-level award?
a. Ministerial Award of Commendation and Presidential Award of

Distinction
b. Ministerial Award of Commendation and Award of Excellence
c. Ministerial Award of Commendation and Presidential Employer Award
d. Ministerial Award of Commendation and Presidential Loyalty Award
BASIS: Section 256. Two-Level Award System for Principals/Employers. (Page 561 -
562. Azucena Reviewer. 2021)
101. Which of the following is the venue of on-the-job trainings of

apprentices?.
a. In the plant, shop or premises of the employer or firm concerned if the

apprenticeship program is organized by an individual employer or firm.
b. In the premises of one or several firms designated for the purpose by the
organizer of the program if such organizer is an association of employers, civic
group or the like.
c. In the Department of Labor Training Center or other public training institution
with which the Bureau has made appropriate arrangement.
d. All of the above
BASIS: Rule and Regulations Implementing the TESDA Act of 1994(Republic Act No.
7796) Rule VI, Section 4. (Page 566, Azucena)
102. Which of the following is not qualify as an apprentice?.
a. Be at least twelve years of age, provided those who are at least twelve
years of age but less than fifteen may be eligible for apprenticeship only
in nonhazardous occupation.
b. Be physically fit for the occupation in which he desires to be trained.
c. Possess vocational aptitude and capacity for the particular occupation as
establish through appropriate test
d. Possess the ability to comprehend and follow oral and written instructions.
BASIS: Rule and Regulations Implementing the TESDA Act of 1994(Republic Act No.
7796) Rule VI, Section 11. (Page 566, Azucena).
103. Which is not a qualification of an apprentice?
a. At least fifteen years of age

b. Be physically fit for the occupation
c. Possess vocational aptitude and capacity for the particulat occupation as
established through appropriate tests
d. Has at least completed secondary school level
BASIS: Legal basis (Page 567, Azucena) Rule VI: Apprenticeship Training and
Employment of Special Workers – Section 11. Qualifications of apprentices. To qualify
as an apprentice, an applicant shall:
(a) Be at least fifteen years of age, provided those who are at least fifteen years of age
but less than eighteen may be eligible for apprenticeship only in nonhazardous
occupation;
(b) Be physically fit for the occupation in which he desires to be trained;
(c) Possess vocational aptitude and capacity for the particular occupation as
established through appropriate tests; and
(d) Possess the ability to comprehend and follow oral and written instructions.
104. Is being physically fit required of an apprentice-applicant?
a. Physical fitness is mandatory

b. Be physically fit for the occupation is absolutely mandatory
c. Physical fitness is not required at all
d. Total physical fitness need not be required of an apprentice-applicant
unless it is essential to the expeditious and effective learning of the
occupation.
BASIS: Legal basis (Page 567, Azucena) Rule VI: Apprenticeship Training and
Employment of Special Workers – Section 13. Physical Fitness. - Total physical fitness
need not be required of an apprentice-applicant unless it is essential to the expeditious
and effective learning of the occupation. Only physical defects which constitute real
impediments to effective performance as determined by the plant apprenticeship
committee may disqualify an applicant
105. An apprenticeship agreement with a minor shall be signed in his behalf by

his ______________, or if the latter is not available, by _________________ of
the Department of Labor?
a. parent or guardian, an authorized representative

b. superior or senior, the secretary
c. supervisor and manager, the general director
d. adviser, any employee
BASIS: SEC. 22. Parties to agreement — Every apprenticeship agreement shall be

signed by the employer or his duly authorized representative and by the apprentice. An
apprenticeship agreement with a minor shall be signed in his behalf by his parent or
guardian, or if the latter is not available, by an authorized representative of the
Department of Labor. (Azucena, 2021 pg. 569)
106. The wage rate of the apprentice shall start at _______________ of the
statutory minimum wage for the first _____________; thereafter, he shall be paid
the full minimum wage, including the full cost-of living allowance.
a. 50%; year
b. 75%; six months
c. 80%; three months
d. 80%; six months
BASIS: Wages. — The wage rate of the apprentice shall start at seventy five percent
(75%) of the statutory minimum wage for the first six (6) months; thereafter, he shall be
paid the full minimum wage, including the full cost-ofliving allowance. (Azucena, 2021
pg. 571)
107. ________ is a person hired as a trainee in industrial occupations which are

non-apprenticeable and which may be learned through practical training on the job
for a period not exceeding three (3) months, whether or not such practical training
is supplemented by theoretical instructions.
a. Handicapped Worker
b. Learner
c. Apprentice
d. Worker
BASIS: Section 1, Rule V11 Learner is a person hired as a trainee in industrial

occupations which are non-apprenticeable and which may be learned through practical
training on the job for a period not exceeding three (3) months, whether or not such
practical training is supplemented by theoretical instructions. (Page 572, Azucena)
108. Those whose earning capacity is impaired by age or physical or mental

deficiency or injury, are?
a. Handicapped Workers
b. Learner
c. Apprentice
d. Worker
BASIS: Section 1(a), Rule V111 (Page 574, Azucena)

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Chan Week 9

1) It is a principle guaranteed by the Constitution upholding the validity of an agreement

BASIS: Rivera v. Espiritu, GR No. 135547, January 23,2002

2) The following are indicative of a company union except:

a) Act of employer in securing authorization cards from employees and by

a) Refused to bargain with petitioner union

BASIS: Article 259 [248] of the Labor Code

7) The following are the prohibited acts in strikes except?

a) Declaring and staging a strike without first having bargained collectively

RATIONALE: The Labor Code provides the prohibited acts in strikes:

8) Statement I: A mass action or protest may actually be considered a strike.

a) All of the statements are correct

RATIONALE: In the case of Bagalisan V CA, it provides what constitutes a strike in

a) a provision in the CBA to grant better bonus to those who are

BASIS: Philippine Blooming Mills Employees Organization vs Philippine Blooming Mills

a) dividing equally to all employees certain percentage of its net profit

BASIS: Manila Hotel Co. vs. Pines Hotel Employees Association

a) union security clause

12) True or false

RATIONALE: A union security clause is NOT a violation or restriction of the employee's

13) A _______________ may be defined as a scheme in which, by agreement between

a) Union Shop Agreement

a) Union Shop Agreement

BASIS: Article 259(c) of the Labor Code

BASIS: Rothenberg on Labor Relations, page 410

a) Article 248 (e)

a) Non-retroactivity of Union Security Clause

RATIONALE: As a general Rule, a union security provision such as a closed shop

BASIS: Sta. Cecilia Sawmills v. CIR

a) union security clause

BASIS: Juat v. CIR

25) The prohibition in the second sentence of paragraph (e) of ____________expressly

a) Chi Ming Tsoi vs CA

RATIONALE: Termination of employment by virtue of a union security clause embodied

a) The dismissal was illegal. The clause required rank-and-file employees to

a) Refusal to become members of the SEBA

1. Disloyalty to the SEBA;

a) The union security clause is applicable

a) approval of the DOLE Secretary

39) Which of the following statement/s is/are true?

a) Both are true.

a) All statements are true.

a) the employer is not duty-bound to immediately implement the

a) termination of his membership with the employer; termination of his employment

a) Malayang Samahan ng mga Manggagawa sa M. Greenfield vs. Ramos

RATIONALE: The Supreme Court declared that such is an act of self-preservation of

49) The case of ___________________ illustrates the situation where

a) General Milling Corporation vs Casio

BASIS: GR No. 149552, March 10, 2010.

a) Both statements are true.

52) An employee who is _______________________ from work shall

a) Unjustly dismissed; be entitled

BASIS: Article 294 [279] of the Labor Code

BASIS: Rizal Labor Union vs. Rizal Cement Co.

BASIS: Ferrer vs NLRC, G.R. No. 100898

55) True or False

a) Only statement I is true

BASIS: Itogon-Suyoc Mines, Inc Vs. Baldo

a) To violate the duty to bargain collectively as prescribed in the Labor Code.

BASIS: Duty to bargain collectively when there exists a collective bargaining

BASIS: Article 296 [281]. Probationary Employment. Probationary employment shall

a) The salary increases.

65) Which of the following statement is false?

107) A simple violation of the CBA is considered _, but _