MID-TERM EXAM ON LABOR STANDARDS AND SOCIAL LEGISLATIONS

Instruction: Answer the questions as if you are taking the bar.

Questions:

1. Enumerate at least three (3) policies enshrined in Section 3, Article XIII of the
Constitution that are not covered by Article 3 of the Labor Code. (5%)

2. The House of Representatives passed a bill, which eventually signed into law by
the President, abolishing the security of tenure clause in the Labor Code in order
to provide an investor-friendly business environment to enable the country to
compete in the global economy which is now suffering from a crisis leading to
recession.

The constitutionality of the law is being challenged by KMU. As Judge, how will
you rule on the issue? (5%)

3. Ben, an employee of Company XYZ, was dismissed for allegedly stealing his co-
worker’s money. A case for illegal dismissal was filed by Ben. The Labor Arbiter,
citing Article 4 of the Labor Code, ruled in favor of Ben upon finding his co-
workmates testimony doubtful. The NLRC reversed the Labor Arbiter’s ruling
stating that Article 4 applies only when doubt involves “implementation and
interpretation” of the Labor Code provisions. The NLRC further explained that the
doubt may not necessarily be resolved in favor of labor since this case involves
the application of the Rules on Evidence, not the Labor Code. Resolve with
reasons. (5%)

4. CAP Corporation, owned and managed by Waley siblings, has been in business
for 25 years. Serious business reverses for the last five (5) years made them
decide to close the business for good.

a. Is the closure allowed by law? (5%)

b. What is the doctrine of “Management Prerogative”? (5%)

5. What is the principle of codetermination? (5%)

6. Havey Corporation (HC) and Waley Manpower Cooperative (WMC) entered into
a “Service Agreement” where WMC in consideration of service fees to be paid by
Havey Corp. will exclusively supply Havey Corp. motorcycle-owning members
who will henceforth perform HC’s food delivery service. WMC assumes, under
the agreement, full obligation for the payment of the salaries and other statutory
monetary benefits of its members deployed to HC. The parties also stipulate that
there shall be NO employer-employee relationship between HC and WMC
members. However, if HC is materially prejudiced by any act of the delivery, it
has the authority to impose disciplinary sanctions on, including the power to
dismiss, the erring WMC member/s.

a. What are the four fold tests in determining employer-employee

relationship? (5%)
b. What is regular employee? (5%)
c. Who is the employer of WMC members? (5%)
 7. Estoy, a plumber, was recruited by 4ME and its principal 5G, to work in South
Korea for a period of one (1) year. However, soon after the contract was
approved by the POEA, 5G advised 4ME to forego Estoy’s deployment because
it had already hired another Filipino plumber who had just completed his contract
in Qatar. Aggrieved, Estoy filed a complaint against 4ME and 5G with the NLRC
for damages corresponding his one year salary under the POEA-approved
contract. 4ME and 5G argued that since Estoy was not able to leave for South
Korea, no employer-employee relationship was established between them.

a. Is the argument of 4ME and 5G tenable? (5%)

b. How can employer-employee relationship be established? (5%)

8. Perfecto is an employee of XYZ, a prestigious company in General Santos City.

Unknown to his employer, Perfecto found a lucrative job in Davao City. As such,
he has absent without official leave for more than a month, for which reason he
was terminated by XYZ on the ground of abandonment. Perfecto filed a case for
illegal dismissal arguing that he was not afforded due process.

a. What is “twin notice” rule? (5%)

b. Is Perfecto perfectly correct? (5%)
c. Can XYZ be made liable? If yes, what is its liability? (5%)

9. A plumber is hired by private School in General Santos City.

a. Is the plumber a regular or a casual employee? (5%)

b. Define regular as well as casual employee. (5%)

10. Are seafarers who have worked for 20 years on board of the same vessel
regulars employees? (5%)

11. When is retirement due? (5%)

12. How should retirement pay be computed? (5%)

13. May Retirement Law have retroactive effect? Explain (5%)

GOOD LUCK!!!!!!!!!!!!!!