LABOR LAW MCQs Week 1 17

LABOR LAW 1 MCQ (Week 1-17)
JD 2 SP-B Class Mayor: Glenie Jen Ulban

JD 2 SP-A Class Mayor: Alyssa Trinidad E. Siadto
JD 2 SP-B (Week 1-2; items 1-50)
1. I. In the case of Coca-Cola Bottlers Philippines Incorporated v. NLRC, G.R. nos.

82580 & 84075, April 25, 1989, 172 SCRA 751,the employer has the right to expect from the
employee no less than adequate work, diligence and good conduct.
II. The constitutional prohibition against impairing contractual obligations is absolute and is
not to be read with literal exactness.
a. I is True
b. I is False
c. I is false, II is true
d. I is true and II is false
RATIONALE: In the case of Coca-Cola Bottlers Philippines Incorporated v. NLRC, G.R. nos.
82580 & 84075, April 25, 1989, 172 SCRA 751, the employer has the right to expect from the
employee no less than adequate work, diligence and good conduct.
In the case of THE CONFERENCE OF MARITIME MANNING AGENCIES, INC., CASE

declares that CONSTITUTIONA PROHIBITION AGAINST IMPAIRING CONTRACTUAL
OBLIGATIONS IS NOT ABSOLUTE.
2. In case of doubt, all labor legislation and all labor contracts shall be construed in
favor of ___________.
a. the safety and decent living of the laborer.
b. The safety and decent living of the employer.
c. All of the above
d. None of the above
RATIONALE: Article 1702 of the Civil Code ordains that "In case of doubt, all labor
legislation and all labor contracts shall be construed in favor of the safety and decent living of
the laborer.
3. I. The relations between capital and labor are contractual.
II. The contracts are subject to the special laws on labor unions, collective bargaining, strikes
and lockouts, closed shop, wages, working conditions, hours of labor and similar subjects.
a. I and II is true
b. I and II is False
c. I Neither true nor false
D. II is false
RATIONALE: Art. 1700 of the Labor Code states that the relations between capital and labor
are not merely contractual. They are so impressed with public interest that labor contracts must
yield to the common good. Therefore, such contracts are subject to the special laws on labor
unions, collective bargaining, strikes and lockouts, closed shop, wages, working conditions,
hours of labor and similar subjects.
4. These are the four elements of an employer-employee relationship, except:

a. power of dismissal
b. Payment of wages
c. employer's control his/her employee
d. selection and engagement of employee
RATIONALE: The four (4) elements of an employer-employee relationship are as follows:
(a) Selection and engagement of the employee; (b) Payment of wages; (c) Power of dismissal;
and (d) Employer’s power to control the employee’s conduct with respect to the means and
methods by which the work is to be accomplished (Brotherhood Labor Unity Movement of the
Philippines et. al. v. Zamora, G.R. No. 48645, (1987))
5. Statement I: The important element in employer-employee relationship is the employer's

control of the employee's conduct.
Statement II: Every form of control has the effect of establishing an employer-employee
relationship.
a. Both I and II are true

b. Statement I is false, Statement II is true
c. Statement I is true, Statement II is false
d. Both I and II are false
RATIONALE: In Lirio v. Genovia, G.R. No. 169757, The most important element in employer-
employee relationship is the employer’s control of the employee’s conduct, not only as a result
of the work to be done but also as to the means and methods to accomplish it.
In the case of Insular Life Assurance Co. Ltd. v. NLRC, G.R. No. 84484, Not every form of
control will have effect of establishing ER-EE relationship. The line should be drawn between:
● (1) Rules that merely serve as guidelines towards the achievement of mutually desired
results without dictating the means or methods to be employed in attaining it. These aim
only to promote the result. In such case, NO EE-ER relationship exists
● (2) Rules that control or fix the methodology and bind or restrict the party hired to the
use of such means. These address both the result and the means used to achieve it and
hence, EE-ER relationship exists.
6. In the following cases, the employment relationship is deemed suspended by express

provisions of the Labor Code or its implementing rules:
I. In case of imposition of punitive suspension of an employee who is undergoing an

administrative investigation for an offense and his presence in the company premises
poses a serious or imminent threat to the life or property of the employer or of his co-
employees.
II. In case of preventive suspension as a form of disciplinary penalty on an employee who
is found guilty of committing a wrongful act under Art 297 of the Labor Code or under
the Company Rules and Regulations.
A. Only statement I is true

B. Only statement II is true
C. Both statements are true
D. Both statements are false
RATIONALE: The definitions in statements 1 and 2 are interchanged.
7. Article 82, Title I, Book III, which excludes the following workers from the coverage of the
provisions on working conditions and rest periods, more specifically on normal hours of work,
meal periods, night shift differential, overtime work, weekly rest periods, holidays, service
incentive leaves and service charges:
I. Government employees, Managerial employees, and Field personnel;

II. Members of the family of the employer who are dependent on him for support;
III. Domestic helpers and Persons in the personal service of another
IV. Workers who are paid by results, as determined by the Secretary of Labor in appropriate
regulations.
A. Only one statement is true
B. Two statements are true
C. Three statements are true
D. All statements are true
E. All statements are false
RATIONALE: Article 82, Title I, Book III, which excludes the following workers from the
coverage of the provisions on working conditions and rest periods, more specifically on normal
hours of work, meal periods, night shift differential, overtime work, weekly rest periods,
holidays, service incentive leaves and service charges:
❖ Government employees;
❖ Managerial employees;
❖ Field personnel;
❖ Members of the family of the employer who are dependent on him for support;
❖ Domestic helpers;
❖ Persons in the personal service of another; and
❖ Workers who are paid by results, as determined by the Secretary of Labor in appropriate
regulations.
8. _______________, Title 11, Book VI, excepts from the coverage of the retirement pay benefit,
employees of retail, service, and agricultural establishments or operations employing not more
than ten (10) employees or workers.
A. Article 302 [287]

B. Article 255 [245]
C. Article 255 [254]
D. Article 302 [278]
RATIONALE: Article 98, Title 11, Book III, excludes the following workers from the coverage
of the provisions on wages:
● Farm tenancy or leasehold; Domestic service; and Persons working in their respective
homes in needle work or in any cottage industry duly registered in accordance with law.
● Article 255 [245], Title V, Book V, which provides for the ineligibility of managerial
employees to join, assist or form any labor organization.
● Article 302 [287], Title 11, Book VI, which excepts from the coverage of the retirement
pay benefit, employees of retail, service and agricultural establishments or operations
employing not more than ten (10) employees or workers.
9. True or False
Statement I: The existence of employer-employee relationship is necessary in order for the Labor
code to apply.
Statement II: The application of the rights and benefits of the labor code is applicable to all
workers.
A. True, True
B. True, False
C. False, False
D. False, True
RATIONALE: The existence of employer-employee relationship is necessary. Without this

relationship, the Labor Code does not apply. The Labor Code has, in certain specified cases,
excepted certain groups of workers from the application of the rights and benefits provided
therein.
10. True or False
Statement I: Managerial employees are eligible to join, assist or form any labor organization.
Statement II: The Labor code protects the right of workers to self-organization and to form, join,
or assist labor organizations of their own choosing.
A. True, True
B. True, False
C. False, False
D. False, True
RATIONALE: Article 255 [245], Title V, Book V, which provides for the ineligibility of
managerial employees to join, assist or form any labor organization. Managerial employees are
not eligible to join, assist or form any labor organization. Supervisory employees shall not be
eligible for membership in a labor organization of the rank-and-file employees but may join,
assist or form separate labor organizations of their own.
Article 3 of the Labor Code states “Declaration of basic policy. The State shall afford protection
to labor, promote full employment, ensure equal work opportunities regardless of sex, race or
creed and regulate the relations between workers and employers. The State shall assure the rights
of workers to self-organization, collective bargaining, security of tenure, and just and humane
conditions of work.”
11. Under the following circumstances, Article 301 of the Labor Code deems the employment
relationship not terminated but merely suspended, except:
A. Bona-fide suspension by the employer of the employer of the operation of his
business or undertaking for a period not exceeding 1 year
B. Fulfillment by the employee of a military duty
C. Bona-fide suspension by the employer of the employer of the operation of his business or
undertaking for a period not exceeding 6 months;
D. Fulfilment by the employee of a civic duty.
RATIONALE:
Article 301 of the Labor Code deems the employment relationship not terminated but merely
suspended when:
❖ Bona-fide suspension by the employer of the employer of the operation of his

business or undertaking for a period not exceeding 6 months;
❖ Fulfillment by the employee of a military duty; or
❖ Fulfilment by the employee of a civic duty.
12. How can Labor legislation and all labor contracts be construed?
a. favor of the safety and decent living for the laborer
b. favor of labor
c. favor against the state
d. favor of protection of equality
RATIONALE: G.R. NOS. 182978-79: Becman vs. Cuaresma states that; case of doubt,
all labor legislation and all labor contracts shall be construed in favor of the safety and decent
living for the laborer.
Art. 1702. In case of doubt, all labor legislation and all labor contracts shall be construed in
favor of the safety and decent living for the laborer.
13. Serano Doctrine implies that;
a. The dismissal is declared ineffectual and the employer must pay full back wages
from the time of the termination until it is judicially declared that the dismissal was
for a just and authorized cases.
b. Any legislation whose effect or purpose is to impede the observance of one or all
religions, or discriminate invidiously between the religions, is invalid even though the
burden may be characterized as being only indirect.
c. Both a and b
RATIONALE: Serrano doctrine , Ineffectual Dismissal
The Court held that the violation by the employer of the notice requirement in termination for
just and authorized causes was not a denial of due process that will nullify the termination.
However the dismissal is declared ineffectual and the employer must pay full back wages from
the time of the termination until it is judicially declared that the dismissal was for a just and
authorized cases.
14. Strike focuses on;
a. publicizing the labor dispute
b. stoppage of work
c. incidents to inform the public of what is happening in the company struck against.
RATIONALE: Strike and picketing on publicizing the labor dispute
To strike is to withhold or to stop work by concerted action of the employees as a result of an

industrial or labor dispute. The work stoppage may be accompanied by the striking employees
outside the company accompanied by picketing by the striking employees outside of the
company compound. While a strike focuses on stoppage of work, picketing focuses on
publicizing the labor dispute and its incidents to inform the public of what is happening in the
company struck against.
15. It should be borne in mind that the __________ calls merely for the existence of the
__________ the manner of doing the work, not the__________________.
a. control test, right to control, actual exercise of the right

b. right to control, actual exercise of the right, control test
c. actual exercise of the right, right to control, control test
d. actual exercise of the right, control test, right to control
RATIONALE: It should be borne in mind that the control test calls merely for the existence of
the right to control the manner of doing the work, not the actual exercise of the right. [Zanotte
Shoes v. NLRC, G.R. No. 100665, (1995)]
16. Statement 1: During off-season, in case of regular seasonal employment. The nature of the
relationship of regular seasonal workers with their employer is such that during the off-season,
they are permanently laid off.
Statement 2: They are separated from the service and are considered on leave of absence without
pay. Their employment relationship during the off-season is suspended.
a. Only statement 1 is correct

b. Only statement 2 is correct
c. Both Statements are correct
d. Both statements are not correct
RATIONALE: During off-season, in case of regular seasonal employment. The nature of the
they are temporarily laid off but they are re-employed during next season or when their services
may be needed.They are not separated from the service but are merely considered as on leave of
absence without pay until they are re-employed. Their employment relationship during off-
season is never severed but only suspended.
17. The _______ realities prevailing within the activity or between the parties are _______,
taking into consideration the totality of circumstances surrounding the true nature of the _______
between the parties.
a. examined, economic, relationship

b. economic, examined, relationship
c. relationship, economic, examined
d. relationship, examined, economic
RATIONALE: The economic realities prevailing within the activity or between the parties are
examined, taking into consideration the totality of circumstances surrounding the true nature of
the relationship between the parties. [Orozco v. CA, G.R. No. 155207, (2008)]
18. What article in the Constitution talks about the labor protection?
A. Article II, Section 3
B. Article III, Section 4
C. Article III, Section 3
D. Article II, Section 4

RATIONALE: Section 3 (Labor), Article XIII [Social Justice and Human Rights] of the 1987
Constitution
19. No involuntary servitude in any form shall exist except jkkjbbb

whereof the party shall have been duly convicted.
A. As payment for punishment
B. As payment for debt
C. As a punishment for crime
D. As punishment for felony
RATIONALE: Art. III, Sec. 18, par. 2 –No involuntary servitude in any form shall exist except
as a punishment for a crime whereof the party shall have been duly convicted.
20. A laborer's wages shall be paid in .
A. Any form of currency, both local or foreign.
B. Full or partial every month.
C. Legal currency.
D. None of the above
RATIONALE: Article 1705. The laborer's wages shall be paid in legal currency.
21.Statement I. A dismissal of the employee based on an authorized cause means that he/she has
committed a wrongful act or omission.
Statement II. A dismissal of the employee based on an authorized cause means that there exists a
ground in which the law itself allows it to be invoked to justify the termination of an employee
even if he has not committed any wrongful act or omission.
a. Both Statements are True

b. Both Statements are False
c. I is False and II is True
d. I is True and II is False
RATIONALE: In substantive due process, it requires that the termination of employment must
be based on just or authorized causes.The termination of employment based on just causes are
enumerated in Article 297 [282] of the Labor Code. Meanwhile, Articles 298 [283] and 299
[284] provide for the authorized causes to terminate the employment relationship.
A dismissal based on 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 authorizes to be invoked to justify the termination of an employee even if he has
not committed any wrongful act or omission.
22. In determining the existence of an employment relationship, what is the most important
element to be considered?
a. selection and engagement of the employee

b. employer’s power to control the employee’s conduct.
c. payment of wages
d. power of dismissal
RATIONALE:The four (4) elements of an employer-employee relationship are as follows:
(a) Selection and engagement of the employee;

(b) Payment of wages;
(c) Power of dismissal; and
(d) Employer’s power to control the employee’s conduct with respect to the means and
methods by which the work is to be accomplished.
The most important element is the employer’s control of the employee’s conduct, not only as to
the result of the work to be done, but also as to the means and methods to accomplish it. (Lirio v.
Genovia, G.R. No. 169757, 2011)
23. The four (4) elements of an employer-employee relationship are as follows except:
(a) the “actual exercise” of the right.
(b) Payment of wages
(c) Power of dismissal

(d) Employer’s power to control the employee’s
(e) Selection and engagement of the employee
RATIONALE: 4 Elements/tests of an employer-employee relationship
There is no uniform test of the employment relationship but the four (4) elements of an
employer-employee relationship are as follows:
(a) Selection and engagement of the employee;
(b) Payment of wages;
(c) Power of dismissal; and
(d) Employer’s power to control the employee’s conduct with respect to the means and methods
by which the work is to be accomplished [Brotherhood Labor Unity Movement of the
Philippines et. al. v. Zamora, G.R. No. 48645, (1987)]
24. It refers to non-agricultural employees who regularly perform their duties away
from the principal place of business or branch office of the employer and whose
actual hours of work in the field cannot be determined with reasonable certainty.
(a) Field personnel
(b) Supervisor
(c) Managerial employees
(d) Government employees
RATIONALE: Article 82. “Field personnel” shall refer to non-agricultural employees who
regularly perform their duties away from the principal place of business or branch office of the
employer and whose actual hours of work in the field cannot be determined with reasonable
certainty.
25. The additional compensation for work performed beyond eight (8) hours a day.
(a) Overtime Work
(b) Night Shift Differential

(c) Normal hours of work
(d) Emergency overtime work
RATIONALE: Article 87. Overtime Work - Work may be performed beyond eight (8) hours a
day: Provided, That the employee is paid for the overtime work an additional compensation
equivalent to his regular wage plus at least twenty-five percent (25%) thereof, Work performed
beyond eight hours on a holiday or rest day shall be paid an additional compensation equivalent
to the rate of the first eight hours on a holiday or rest day plus at least thirty percent (30%)
thereof.
26.Statement 1: Employment contract is not a labor contract.
Statement 2: There are four types of labor contracts referred to in Article 1700.
a. Both statements are true

b. Statement 2 is false
c. Both statements are false
d. Statement 1 is false
RATIONALE: The employment contracts referred to in Article 1700 may either be

Employment contract or Collective Bargaining Agreement (CBA). Leyte Geothermal vs. PNOC-
EDC, illustrates a case involving an employment contract.
27. Statement 1: The nature of the relationship of regular seasonal workers with their employer is
such that during the off-season, they are permanently laid off but they are re-employed during
next season or when their services may be needed.
Statement 2: Seasonal workers’ employment relationship during off-season is never severed but
only suspended.
a. Statement 1 is true, Statement 2 is false

b. Both statements are true
c. Only Statement 1 is true
d. Statement 1 is false, Statement 2 is true
RATIONALE: During off-season, in case of regular seasonal employment. The nature of the
they are temporarily laid off but they are re-employed during next season or when their services
may be needed. They are not separated from the service but are merely considered as on leave of
absence without pay until they are re-employed. Their employment relationship during off-
season is never severed but only suspended.
28. What is the most important element of the employer-employee relationship test?
a. Payment of wages
b. Employer’s power
c. All of the above
d. Power of dismissal
RATIONALE: The most important element is the employer’s control of the employee’s conduct,
not only as to the result of the work to be done, but also as to the means and methods to
accomplish it. Lirio v. Genovia, G.R. No. 169757, (2011)].
29. The following choices are the types of illegal recruitment:
I. Simple Illegal Recruitment
II. Illegal Recruitment Not Involving Economic Sabotage
a) Both choices are correct

b) Both choices are incorrect
c) Only Choice I is Correct
d) Only Choice II is correct
RATIONALE: There are two types of illegal recruitment: (a) Simple Illegal Recruitment; and (b)
Illegal Recruitment involving Economic Sabotage. Illegal Recruitment involving Economic
Sabotage consists of either (1) Illegal Recruitment committed by a syndicate; or (2) Illegal
Recruitment committed in large scale.
30. Which of the following statements is true?
a) The “Construction in Favor of Labor” rule applies to all government employees.

b) The “Construction in Favor of Labor” rule applies to all workers whether in the
government or in the private sector.
c) The “Construction in Favor of Labor” rule applies to all workers in the private sector
only.
d) None of the above.
RATIONALE: The Construction in favor of Labor rule applies to all employees, whether
working for government or the private sector, in order to give flesh and vigor to the pro-poor and
pro-labor provisions of the Constitutions. It is in keeping with the constitutional mandate of
promoting social justice and affording protection to labor
31. A Collective Bargaining Agreement will terminate every ______.
a. 5 years
b. 3 years
c. 2 years
d. 1 year
RATIONALE: 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.
32. Under Article XII, Sec. 16 - The Congress shall not, except by general law, provide for the
formation, organization, or regulation of _______________. ______________ or controlled
corporations may be created or established by special charters in the interest of the common
good and subject to the test of economic viability.
a. partnerships; Privately-owned
b. public corporations; Government-owned
c. private corporations; Government-owned
d. government-owned; Privately-owned
RATIONALE: Under Article XII, Sec. 16 - The Congress shall not, except by general law,
provide for the formation, organization, or regulation of private corporations. Government-
owned or controlled corporations may be created or established by special charters in the interest
of the common good and subject to the test of economic viability.
33. The following form part of the basic principles of the Labor Code on protection to labor
EXCEPT:
a. In case of doubt, labor laws and rules shall be interpreted in favor of labor.
b. Labor Code applies to all workers, whether agricultural or industrial.
c. The State shall afford protection to labor, promote full employment, ensure equal work
opportunities regardless of sex, race or creed and regulate the relations between workers
and employers.
d. Labor contracts are not ordinary contracts as the relation between capital and labor is
impressed with public interest.
RATIONALE: The Labor Code applies to all workers, whether agricultural or non-
agricultural.
34. Humane work conditions cover:
a. physical workplace
b. treatment in the workplace
c. a only
d. b only
e. a and b
RATIONALE: Section 3 specifically provides that labor is entitled to “humane conditions of

work.” These conditions are nor restricted to the physical workplace – the factory, the office or
field – but include as well the manner by which employers treat their employees.
35. Article 301 of the Labor Code deems the employment relationship not terminated but merely
suspended, except;
a) Bona-fide suspension by the employer of the employer of the operation of his

business or undertaking for a period not exceeding 6 months;
b) Fulfillment by the employee of a military duty; or
c) Fulfilment by the employee of a civic duty.
d) Filling of a certificate of candidacy of employees with GOCC’s without

original charter
RATIONALE: Article 301 of the Labor Code provides:
“ARTICLE 301. [286] When Employment not Deemed Terminated. — The bonafide
suspension of the operation of a business or undertaking for a period not exceeding six (6)
months, or the fulfillment by the employee of a military or civic duty shall not terminate
employment. In all such cases, the employer shall reinstate the employee to his former
position without loss of seniority rights if he indicates his desire to resume his work not
later than one (1) month from the resumption of operations of his employer or from his
relief from the military or civic duty.” Filling of a certificate of candidacy of employees
with GOCC’s without original charter is a ground for termination, it is ipso facto
resignation. "Employees in government-owned or controlled corporations," and come
within the letter of Section 66 of the Omnibus Election Code, declaring them "ipso facto
resigned from . . . office upon the filing of . . . (their) certificate of candidacy." (Quinto
and Tolentino, Jr vs. COMELEC G.R. No. 189698:December 1, 2009)
36. This is the best index in the determination of an employer-employee relationship.
a) Selection and engagement of the employee
b) Payment of wages
c) Power of dismissal
d) Power of Control
RATIONALE: Power of control is the most important test in distinguishing an employee

from an independent contractor because it refers to the employer’s power to control or
right to control the employee not only as to the result of the work to be done but also to
the means and method by which the same is to be accomplished.
37. It is the quantum of evidence required in all termination cases in labor law. It has been
defined to be such relevant evidence as a reasonable mind might accept as adequate to support a
conclusion.
a) Proof beyond reasonable doubt
b) Substantial evidence
c) Preponderance of the Evidence
d) Clear and Convincing Evidence
RATIONALE: "It is an oft-repeated rule that in labor cases, as in other administrative

and quasi-judicial proceedings, 'the quantum of proof necessary is substantial evidence,
or such amount of relevant evidence which a reasonable mind might accept as adequate
to justify a conclusion.” (Valencia vs. Classique Vinyl and Chang, G.R. No. 206390,
January 30, 2017)
38. Under the following circumstances, Article 301 of the Labor Code deems the employment
relationship not terminated but merely suspended:
a. the fulfillment by the employee of a military or civic duty shall not terminate
employment
b. bonafide suspension of the operation of a business or undertaking for a period not

exceeding six (6) months.
c. if the employee indicates his desire to resume his work not later than one (1) month
from the resumption of operations of his employer or from his relief from the military or
civic duty
d. all of the above
RATIONALE: Article 301 of the Labor Code provides: “ARTICLE 301. When
Employment not Deemed Terminated. — The bonafide suspension of the operation of a
business or undertaking for a period not exceeding six (6) months, or the fulfillment by the
employee of a military or civic duty shall not terminate employment.
39. Which of the following is not a salient feature of the Labor Code?
a. It reorients labor laws towards and employment goals

b. It establishes the wage-fixing function of the Wage Commission
c. It ends the wasteful energy-snapping anarchy and opportunism in the Philippine labor
movement by restructuring it by region and by industry.
d. It institutionalizes the NLRC in place of the Court of Industrial Relations.
RATIONALE: The following are the salient features of the Labor Code at the time of its
enactment:
1. It reorients labor laws towards development arid employment goals
2. It institutionalizes the National Labor Relations Commission (NLRC) established
under
P.D. No. 21 in place of the Court of Industrial Relations (CIR).
3. It abolishes the workmen's compensation system.
4. It establishes an Overseas Employment Develop rent Board (OEDB) and a
National Seamen Board (NSB).
5. It implements the provision of the 1973 Constitution, placing employees of
government
-owned and controlled corporations under the Civil Service and mandating
the National Assembly to standardize their salaries.
6. It ends the wasteful energy-snapping anarchy and opportunism in the
Philippine labor movement by restructuring it by region and by industry.
7. It abolishes the wage-fixing function of the Wage Commission by
transforming it into a study and research body.
40. Which of the following is not an employee?

a. A person who is compensated for his labor or services by profits
b. A person who works for an employer.
c. A person who is in the service of another a contract for hire
d. A person whose work has ceased as a result of or in connection with any current labor dispute.
RATIONALE: The term “employee” refers to a person who works for an

employer. He is person who is compensated for his labor or services by wages
rather than by profits. He works for salary or wages. One who is in the service of
another under a contract for hire, express or implied, oral or written, is an employee.
This term includes any person in the employ of an employer but it shall not be
limited to the employees of a particular employer unless the labor code so explicitly
states.
41. What is the test to determine employment relationship?
a. Lie detector test
b. Three-fold test
c. Test of Validity
d. Four-fold test
RATIONALE: There are certain elements which may be used to determine the existence of
employer- employee relationship. In Viaña v. Al-Lagadan (G.R. No. L-8967), the four-fold test
to determine the existence of an employer-employee relationship was first enunciated. The four
(4) elements of such relationship have since been adopted in subsequent jurisprudence, which are:
(1) Selection and engagement of the employee;
(2) Payment of wages or salaries;

(3) Exercise of the power of dismissal; or
(4) Exercise of the power to control the employee’s conduct.
42. What case states that the employer has the burden to prove that the termination of the
employment was valid.
A) Century Canning Corp vs. Ramil
B) Colegio de san juan de letran vs Villas
C) Philippine Long Distance Telephone Co., v. NLRC
D) International School Alliance of Educators vs. Quisumbing
RATIONALE: Under the Century Canning Corp vs. Ramil, It states that the law mandates, that
the burden of proving the validity of the termination of employment rests with the employer.
Failure to discharge this evidentiary burden would necessarily mean that the dismissal was not
justified and, therefore, illegal.
43. Discrimination, particularly in terms of wages, is frowned upon by the Labor Code.
Statement 1) Article 248, for example, prohibits and penalizes the payment of lesser
compensation to a female employee as against a male employee for work of equal value.
Statement 2) Article 135 declares it an unfair labor practice for an employer to discriminate in
regard to wages in order to encourage or discourage membership in labor organization.
A) Statement 1 is True while Statement 2 is False.
B) Statement 2 is True while Statement 1 is False.
C) Both Statements are True
D) Both Statements are False

RATIONALE: The Labor Code provides, Article 135 prohibits and penalizes the payment of
lesser compensation to a female employee as against a male employee for work of equal value.
While Article 248 declares it an unfair labor practice for an employer to discriminate in regard to
wages in order to encourage or discourage membership in labor organization.
44. The following are basic principles enunciated in the Labor Code on protection to labor,
except?
a) The State shall afford protection to labor, promote full employment, ensure equal work
opportunities regardless of sex, race or creed and regulate the relations between workers and
employers. The State shall assure the rights of workers to self-organization, collective bargaining,
security of tenure, and just and humane conditions of work.
b) Labor contracts are not ordinary contracts as the relation between capital and labor is
impressed with public interest.
c) In case of doubt, labor laws and rules shall be interpreted in favor of the Government.
d) Labor Code applies to all workers, whether agricultural or non-agricultural.
RATIONALE: Article 4 enunciates the time-honored principle that all doubts in the
implementation and interpretation of its provisions should be resolved in favor of labor. This rule
applies not only in the interpretation of the provisions of the Labor Code but also of its
Implementing Rules.
AGADAN, ARA TAMARA KLAIRE
45. In what year was the Labor Code (PD No. 442) enacted:
a) 1974
b) 1984
c) 1994
d) 2004
RATIONALE: It was enacted on May 1 (Labor day) of 1974 by President Ferdinand Marcos,
in the exercise of his then extant legislative powers.
46. The Labor Code is composed of a Preliminary Title and how many books?
a) five (5) books
b) six (6) books
c) seven (7) books
d) eight (8) books
RATIONALE: The Labor Code is composed of a Preliminary Title and seven (7) books.
47.
Statement I: "Worker" means only those members of the labor force who are employed.
Statement II: "Seaman" means any person employed in a vessel engaged in maritime navigation
a) Only Statement I is correct
b) Only Statement II is correct
c) Both Statements I and II are correct
d) Both Statements I and II are incorrect.
RATIONALE: "Worker" means any member of the labor force, whether employed or
unemployed; "Seaman" means any person employed in a vessel engaged in maritime navigation.
(Definitions, Article 13, Labor Code)
48. This dependence tells whether the worker is dependent on the alleged employer for his
continued employment?
a. Economic Dependence
b. Political Dependence
c. Physical Dependence
d. Social Dependence
RATIONALE: [Orozco v. CA, G.R. No. 155207, (2008)] The standard of “economic
dependence” is whether the worker is dependent on the alleged employer for his continued
employment in that line of business.
49. Migrant Workers and Overseas Filipinos Act of 1995 is the relevant law on what?
a. Recruitment for local employment

b. Recruitment for overseas employment
c. Recruitment for permanent positions abroad
d. Recruitment for indigent people abroad
RATIONALE: Under R. A. No. 8042, also known as Migrant Workers and Overseas Filipinos
Act of 1995 is the relevant law on recruitment for overseas employment.
50. Retrenchment is permanent when it results in the termination of employment, through no

fault of, nor with prejudice to, the employees. This happens during
a. periods of business recession, industrial depression, seasonal fluctuations
b. during lulls occasioned by lack of orders, shortage of materials, conversion of the plant
for a new production program, or
c. the introduction of new methods or more efficient machinery, or of automation.
d. All of the above
e. None of the above
RATIONALE: Article 298 of the Labor Code provides:
“ARTICLE 298. [283] Closure of Establishment and Reduction of Personnel. — The

employer may also terminate the employment of any employee due to the installation of
labor-saving devices, redundancy, retrenchment to prevent losses or the closing or
cessation of operation of the establishment or undertaking unless the closing is for the
purpose of circumventing the provisions of this Title, by serving a written notice on the
workers and the Ministry of Labor and Employment at least one (1) month before the
intended date thereof. In case of termination due to the installation of labor-saving devices
or redundancy, the worker affected thereby shall be entitled to a separation pay equivalent
to at least his one (1) month pay or to at least one (1) month pay for every year of service,
whichever is higher. In case of retrenchment to prevent losses and in cases of closures or
cessation of operations of establishment or undertaking not due to serious business losses
or financial reverses, the separation pay shall be equivalent to one (1) month pay or at least
one-half (1/2) month pay for every year of service, whichever is higher. A fraction of at
least six (6) months shall be considered one (1) whole year.”
JD 2 SP-A (Week 3-5; items 51-100)
51. The State shall deploy overseas Filipino workers only in countries where the rights
of Filipino migrant workers are protected.
a.) Section 3, R.A 8042

b.) Section 2, R.A 8042
c.) Section 4, R.A 8042
d.) Section 6, R.A 8042
Rationale: SEC. 4. Deployment of Migrant Workers - The State shall deploy overseas Filipino
workers only in countries where the rights of Filipino migrant workers are protected.
52. Which of the statements is true?

Statement 1: PEA derives its authority to recruit and place workers from a document
denominated as a “license”; while PRE sources its authority from a document called
“authority.
Statement 2: A PRE has a right duly recognized in law to charge a fee, directly or
indirectly, from the workers or the employers or from both; while a PEA does not charge
any fee either directly or indirectly from the workers or employers to which they would
be deployed.
a.) Only statement 1 is correct

b.) Only statement 2 is correct
c.) Both statements are correct
d.) Both statements are not correct
Rationale: Article 13 of the Labor Code provides:

1. A PEA has a right duly recognized in law to charge a fee, directly or indirectly, from
the workers or the employers or from both; while a PRE does not charge any fee
either directly or indirectly from the workers or employers to which they would be
deployed;
2. PEA is authorized to recruit only for overseas placement or deployment; while PRE
is allowed to recruit for both local and overseas deployment.
3. PEA derives its authority to recruit and place workers from a document denominated
as a “license”; while PRE sources its authority from a document called “authority.”
53. Statement I. The term “Irregular/Undocumented Filipino migrant workers” refers to (a)
those who possess valid passports and appropriate visas or permits to stay and work in
the receiving country, and (b) those whose contracts of employment have been processed
by the POEA, or subsequently verified and registered on-site by the POLO, if required by
law or regulation.
Statement II. This term was defined in R.A. No. 10022.
a.) Both statements I and II are correct.

b.) Both statements I and II are incorrect.
c.) Only statement I is correct.
d.) Only statement II is correct.
Rationale: The definition in Statement I pertains to “Regular/Documented Filipino migrant

workers.” And this was defined in the 2010 Omnibus Rules and Regulations, not in R.A. No.
10022 (Migrant Workers Act).
“Irregular/Undocumented Filipino migrant workers” are those:
 who acquire their passports through fraud or misrepresentation;
 who possess expired visas or permits to stay;
 who have no travel document whatsoever;
 who have valid but inappropriate visas; or
 whose employment contracts were not processed by the POEA or subsequently
verified and registered on-site by the POLO, if required by law or regulation.
54. Is the nationality of the employer material to the coverage of overseas Filipino workers in
pertinent statutes and relevant regulations?
a.) Yes. Only Filipinos employed overseas with non-Filipino employers are made reference to by
pertinent laws and regulations, hence those with Filipino employers are not covered.
b.) Yes. Only Filipinos employed by non-Filipino employers and working domestically or
internationally are covered by pertinent statutes and relevant regulations.
c.) No. The nationality of the employer is immaterial because all Filipino employees, whether
employed domestically or overseas are covered by the pertinent laws and regulations.
d.) No. The pertinent laws and regulations do not limit the coverage to non-Filipino employers.
Thus, OFW employers may be Filipino or non-Filipino.
Rationale: The nationality of the employer of the OFW is immaterial. Filipinos working
overseas share the same risks and burdens whether their employers be Filipino or foreign.
55. In Serrano vs. NLRC. The Court held that the violation by the employer of the
notice requirement in termination for just and authorized causes was not a denial of
due process that will nullify the termination. However, the dismissal is
____________?
a.) Inefficient dismissal
b.) Ineffectual dismissal
c.) Efficient dismissal
d.) Effective dismissal
e.) Punitive dismissal
Rationale: The rule on the extent of the sanctions was changed in the en banc decision in
Serrano vs. NLRC. The Court held that the violation by the employer of the notice requirement
in termination for just and authorized causes was not a denial of due process that will nullify the
termination. However, the dismissal is declared ineffectual and the employer must pay full back
wages from the time of the termination until it is judicially declared that the dismissal was for a
just and authorized cases.
56. The constitutional prohibition against impairing contractual obligations is

____________ and is not to be read with literal exactness.
a.) Absolute
b.) Inoperative
c.) Not absolute
d.) Operative
e.) None
Rationale: The constitutional prohibition against impairing contractual obligations is not

absolute and is not to be read with literal exactness. It is restricted to contracts with respect to
property or some object of value and which confer rights that maybe asserted in a court of justice;
it has no application to statutes relating to public subjects within the domain of the general
legislative powers of the State and involving the public rights and public welfare of the entire
community affected by it.
57. OFWs may only be terminated under the Constitution and the Laws of the
Philippines for __________________?
a.) OFWs may only be terminated for a just or authorized cause and after compliance with
procedural due process requirements.
b.) OFWs may only be terminated for unpaid taxes after compliance of payment required.
c.) OFWs may only be terminated by the company owner and after giving a verbal admonition.
d.) OFWs may only be terminated for by being delinquent and after non compliance of all
necessary statutory process.
Rationale: OFWs may only be terminated for a just or authorized cause (substantive due
process) and after compliance with procedural due process requirements. Art. 297 [282] of the
Labor Code enumerates the just causes of termination by the employer and Articles 298 [283]
and 299 [284] thereof enumerate the authorized causes. The fundamental procedural rights
afforded under the Philippine laws to workers equally apply to OFWs. This means that the
employer must give the concerned employee at least two (2) notices before his or her termination.
Specifically, the employer must inform the employee of the cause or causes for his or her
termination, and thereafter, the employer’s decision to dismiss him. Aside from the notice
requirement, the employee must be accorded the opportunity to be heard.
58. When is Agabon Doctrine can be applied in the form of nominal damages?
a.) When an OFW is dismissed for a just and authorized cause and after affording him
procedural process.
b.) When there is just or authorized cause but statutorial process was not afforded to the OFW.
c.) When an OFW is dismissed illegally and was not given due course of time.
d.) When there is just or authorized cause but procedural process was not afforded to the
OFW.
Rationale: Indemnity in the form of nominal damages. If an OFW is dismissed for a just and
authorized cause and after affording him procedural process, his dismissal is considered perfectly
valid and legal, and therefore, he is not entitled to any salary for the unexpired portion of his
employment contract or any other form of relief. However, if there is just or authorized cause
but procedural process was not afforded to him, the rule that applies is the Agabon Doctrine.
59. The following statements about monetary awards to OFWs are TRUE except:
a.) A validly dismissed OFW is not entitled to his salary for the unexpired portion of his
employment contract.
b.) Reinstatement or separation pay in lieu of reinstatement or full backwages, are not
available to OFWs as provided for in ART 279.
c.) Any and all claims arising from the employment of OFWs, including those for death or
illness compensations, are not rooted from the provisions of the Labor Code
d.) The reliefs under Article 279 of the Labor code are always available to OFWs.
Rationale: The reliefs under Article 279 of the Labor Code are not available to OFWs. Art. 279.
Security of tenure. In cases of regular employment, the employer shall not terminate the services
of an employee except for a just cause or when authorized by this Title. An employee who is
unjustly dismissed from work shall be entitled to reinstatement without loss of seniority rights
and other privileges and to his full back wages, inclusive of allowances, and to his other benefits
or their monetary equivalent computed from the time his compensation was withheld from him
up to the time of his actual reinstatement. (As amended by Section 34, Republic Act No. 6715,
March 21, 1989).
It is not explicitly provided in this provision that OFWs are covered because the provisions
covering the monetary awards are enshrined in REPUBLIC ACT NO. 8042 Migrant Workers
and Overseas Filipinos Act of 1995 also known as an act to institute the policies of overseas
employment and establish a higher standard of protection and promotion of the welfare of
migrant workers, their families and overseas Filipinos in distress, and for other purposes.
60. Which of the following is true about indemnity for OFWs.
a.) Each OFW upon separation from their employment will receive separation pay from their
employers which is computed as ⅕ of their total years of service.
b.) The award of salaries for the unexpired portion of an OFW’s employment contract is not an
award of backwages or separation pay; it is a form of acknowledgement for their service to
the country
c.) The award of salaries for the unexpired portion of an OFW’s employment contract is not
an award of backwages or separation pay but a form of indemnity for the OFW who was
illegally dismissed.
d.) OFWs are always given monetary awards from the Philippines and from the country where
they worked.
Rationale: The award of salaries for the unexpired portion of an OFW’s employment contract is
not an award of back wages or separation pay but a form of indemnity for the OFW who was
illegally dismissed. (Skippers United Pacific, Inc. v. NLRC, G.R. 148893, July 12, 2006).
61. How much is the entitlement of attorney’s fees which is legally and morally justified?
a.) 30%.
b.) 20 %.
c.) it depends.
d.) 10%.
Rationale: In the 2005 case of Athenna, the High Tribunal ruled that because of the breach of
contract and bad faith alleged against the employer and the petitioner recruitment agency, the
award of P50,000 in moral damages and P50,000 as exemplary damages, in addition to
attorney’s fees of ten percent (10%) of the aggregate monetary awards, must be sustained.
Likewise, in the case of ATCI Overseas, the award of attorney’s fees equivalent to ten percent
(10%) of the total award was held legally and morally justified as the OFWs were compelled to
litigate and thus incur expenses to protect their rights and interests.
62. The basis of computation of death benefits of OFW is?
a.) Whichever is greater between Philippine law and foreign law.

b.) Philippine law
c.) Foreign law
d.) None of the above
Rationale: The basis of computation of death benefits of OFW generally, is whichever is greater
between Philippine law and foreign law.
The family of an active OFW at the time of his death is entitled to receive P100, 000.00 if the
cause of death is natural, and P200, 000.00 if the cause of death is accident. On top of that is a
burial benefit of P20,000.00 shall be provided in case of the member’s death.
63. Which of the following statements are true?

I. In case of conflict opinions regarding how seafarer's disability is determined and
declared, that which is favorable to the state is adopted.
II. Disability should be understood on the basis of its medical significance and not on the
basis of earning capacity.
a.) Both statements are true

b.) Statement 1 only
c.) Both statements are false
d.) Statement 2 only
Rationale: In case of conflict opinions, that which is favorable to the OFW should be adopted.
Disability should be understood on the basis of loss of earning capacity and not on its medical
significance.
64. Which of the following are true based on the right of OFW to seek a second opinion
from physicians other than company-designated physician.
I. The seafarer may appoint his own physician who shall make a separate medical
examination.
II. If a doctor appointed by the seafarer disagrees with the assessment , a third doctor may be
agreed jointly between the employer and the seafarer.
III. The third doctor's decision shall be final and binding on both parties.
a.) All of the above

b.) Only I and II
c.) I only
d.) Only III and I
Rationale: Under Section 20(A)(3) of the 2010 POEA-SEC, the seafarer shall submit himself to
a post- employment medical examination by a company -designated physician within three
working days upon his return except when he is physically incapacitated to do so, in which case
a written notice to the agency within the same period is deemed compliance. In the course of the
treatment, the seafarer shall also report regularly to the company-designated physician
specifically on the dates as prescribed by the company designated physician and agreed by the
seafarer. Failure of the seafarer to comply with the mandatory reporting requirement shall result
in his forfeiture of the right to claim the above benefits.
65. Which of the statements is correct?

I. Monetary awards given to an illegally dismissed OFW should be paid at its prevailing peso
equivalent at the time of its payment.
II. In case the salary of an illegally dismissed OFW is in foreign currency, the monetary
award should also only be in foreign currency.
III. The parties may agree that the obligation or transaction shall be settled in any other
currency at the time of payment.
a.) Only I is correct.

b.) I, II, III are correct.
c.) I and III are correct.
d.) II and III are correct.
Rationale: R.A. No. 8183 Section 1 states that “All monetary obligations shall be settled in the
Philippine currency which is legal tender in the Philippines. However, the parties may agree that
the obligation or transaction shall be settled in any other currency at the time of payment.
66. The following funds were established under RA 8042 for availment by migrant and
overseas Filipinos, except:
a. Migrant Workers Loan Guarantee Fund

b. Emergency Repatriation Fund
c. Legal Assistance Fund
d. Congressional Migrant Workers Scholarship Fund
e. One Fair Wage Emergency Fund
Rationale: RA No. 8042

a. Rule IX Section 3 Legal Assistance Fund
b. Rule XIII Section 8 Emergency Repatriation Fund
c. Rule XV Section 2 The Migrant Workers Loan Guarantee Fund
d. Rule XVII Section 5 Establishment of the Congressional Migrant Workers
Scholarship Fund
67. Ada Lovelace a renowned cryptographer who is also OFW in Silicon Valley, USA. She
is earning $150,000 per month as her basic pay plus $5,000 of stock options exercisable if
she remains employed as cryptographer of Metaverse Company for 5 years. How much is
the foreign currency should she remit to the Philippines monthly?
a.) 50% of basic pay or $75,000 per month.

b.) 70% of basic pay or $112,500 per month.
c.) 50% of basic pay plus the stock option or $77,500 per month.
d.) 70% of basic pay plus the stock option or $116,250 per month.
Rationale: The Executive Order 857 1982 required certain percentage of basic pay of OFWs to
be remitted in foreign currency to their dependents and families in the Philippines. In the case of
Ada Lovelace her profession as cryptographer qualifies her of “other professional workers”.
Section 2 of EO 857 provides:
SECTION 2. All contracts of employment and agency or service agreements submitted to
the Ministry of Labor and Employment shall contain a proviso that shall make it
mandatory for workers to remit to the Philippines in foreign exchange at least the
following portions of their earnings:
a) Seamen or mariners: Seventy (70) percent of basic salary;
b) Workers of Filipino contractors and construction companies: Seventy (70) percent of
basic salary;
c) Doctors, engineers, teachers, nurses and other professional workers whose contract
provide for free board and lodging: Seventy (70) percent of basic salary;
d) All other professional workers whose employment contracts do not provide for
free board and lodging facilities: Fifty (50) percent of basic salary;
e) Domestic and other service workers: Fifty (50) percent of basic salary;
f) All other workers not falling under the aforementioned categories: Fifty (50) percent of
basic salary.
68. The following are consequence if Ada Lovelace failed remit the appropriate foreign
currency, except:
a) Workers who fail to comply shall be suspended or excluded from the list of eligible
workers for overseas employment.
b) Subsequent violations shall warrant his repatriation from the job site at the expense of
the employer or at his expense.
c) Filipino or foreign employers and/or their representatives who fail to comply with the
mandatory remittance requirements shall be excluded from the overseas employment
program, while local private employment agencies or entities shall face cancellation
or revocation of their licenses or authority to recruit, without prejudice to other
liabilities under existing laws and regulations
d) None of the above
e) All of the above
Rationale: The Section 9 of EO 857 provides:

“SECTION 9. Contract workers who fail to comply with the requirements of this Order
shall be suspended or excluded from the list of eligible workers for overseas employment.
In cases of subsequent violations, he shall be repatriated from the job site at the expense
of the employer or at his expense, as the case may be.
Filipino or foreign employers and/or their representatives who fail to comply with the
requirements under this Order shall be excluded from the overseas employment program.
In the case of local private employment agencies and entities, failure to comply with the
provisions hereof shall be a ground for cancellation of their license or authority to recruit
workers for overseas employment, without prejudice to their liabilities under existing
laws and regulations.”
69. Which of the following are prohibited activities provided in Article 34 of the Labor
Code?
a.) To give any false notice, testimony, information or document or commit any act of
misrepresentation for the purpose of securing a license or authority.
b.) To influence or to attempt to influence any person or entity not to employ any worker
who has not applied for employment through his agency.
c.) To furnish or publish any false notice or information or document in relation to
recruitment or employment.
d.) All of the above.
Rationale: Article 34. Prohibited practices. It shall be unlawful for any individual, entity,
licensee, or holder of authority:
 To charge or accept, directly or indirectly, any amount greater than that specified in the
schedule of allowable fees prescribed by the Secretary of Labor, or to make a worker pay
any amount greater than that actually received by him as a loan or advance;
 To furnish or publish any false notice or information or document in relation to
recruitment or employment;
 To give any false notice, testimony, information or document or commit any act of
misrepresentation for the purpose of securing a license or authority under this Code.
 To induce or attempt to induce a worker already employed to quit his employment in
order to offer him to another unless the transfer is designed to liberate the worker from
oppressive terms and conditions of employment;
 To influence or to attempt to influence any person or entity not to employ any worker
who has not applied for employment through his agency;
 To engage 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;
 To obstruct or attempt to obstruct inspection by the Secretary of Labor or by his duly
authorized representatives;
 To fail to file reports on the status of employment, placement vacancies, remittance of
foreign exchange earnings, separation from jobs, departures and such other matters or
information as may be required by the Secretary of Labor.
 To substitute or alter employment contracts approved and verified by the Department of
Labor from the time of actual signing thereof by the parties up to and including the
periods of expiration of the same without the approval of the Secretary of Labor;
 To become an officer or member of the Board of any corporation engaged in travel
agency or to be engaged directly or indirectly in the management of a travel agency; and
 To withhold or deny travel documents from applicant workers before departure for
monetary or financial considerations other than those authorized under this Code and its
implementing rules and regulations.
70. Which of the statements is true?

Statement 1. A contract which diminishes the pay and benefits of the employee as
embodied in the contract duly approved by the POEA is valid.
Statement 2. A subsequent contract providing for lesser pay and benefits is null and void
even when approved by the POEA.
a.) Statement 1 is correct

b.) Statement 2 is correct
c.) Both 1 and 2 are correct
d.) None of the above.
Rationale: A contract which diminishes the pay and benefits of the employee as embodied in the
contract duly approved by the POEA is null and void. The exception is when such subsequent
contract providing for lesser pay and benefits is approved by the POEA. (Chavez v. Bonto-Perez,
G. R. no. 109808, March 1 1995)
71. I. Any alien seeking admission to the Philippines for employment purposes and any
domestic or foreign employer who desires to engage an alien for employment on the
Philippines shall obtain an employment permit from the Department of Foreign Affairs.
II.The employment permit may be issued to a non-resident alien or to the applicant
employer after a determination of the non-availability of a person in the Philippines who
is competent, able and willing at the time of application to perform the services for which
alien is desired.
Which of the following statements is/are true?
a.) Statement I and II

b.) Statement I only
c.) Statement II only
d.) Neither Statements I nor II
Rationale: Article 40 of the Labor Code of the Philippines states that in the employment of
permit of non-resident aliens, they may seek admission for employment purposes and any
domestic or foreign employer who desires to engage an alien for employment on the Philippines
shall obtain an employment permit from the Department of Labor. The employment permit may
be issued to a non-resident alien or to the applicant employer after a determination of the non-
availability of a person in the Philippines who is competent, able and willing at the time of
application to perform the services for which alien is desired. For an enterprise registered in
preferred areas of investments, said employment permit may be issued upon recommendation of
the government agency charged with the supervision of said registered enterprise.
72. I. It is an exclusive authority for a foreign national to work in the Philippines.
II. It is just one of the requirements in the issuance of a work visa to legally engage in
gainful employment on the country.
III. It is a document issued by the DOLE Secretary through the DOLE-Regional Director
who has jurisdiction over the intended place of work of the foreign national, authorizing
the foreign national to work in the Philippines.
Which of the following best describe/s an Alien Employment Permit (AEP)?
a.) Statements I and II only

b.) Statements II and III only
c.) Statements I,II and III
d.) None of the above
Rationale: In the book of Chan, Alien Employment Permit was defined as a document issued by
the DOLE Secretary through the DOLE-Regional Director who has jurisdiction over the intended
place of work of the foreign national, authorizing the foreign national to work in the Philippines.
Moreover, this is just one of the requirements in the issuance of a work visa to legally engage in
gainful employment on the country and it does not give an exclusive authority for a foreign
national to work in the Philippines.
73. The following are exempt from securing an employment permit, except:
I. All members of the diplomatic service and foreign government officials
accredited by and with reciprocity arrangement with the Philippine government.
II. Officers and staff of international organizations of which the Philippine
government is a member, and their legitimate spouses desiring to work in the Philippines.
III. Foreign nationals who come to the Philippines to teach, present and/or conduct
research studies in the universities and colleges as visiting, exchange or adjunct
professors under formal agreements between the universities or colleges in the
Philippines and foreign universities or colleges; or between the Philippine government
and foreign government, provided that the exemption is on a reciprocal basis.
IV. Permanent resident foreign nationals and probationary or temporary resident visa
holders under Section 13 (a-f) of the Philippine Immigration Act of 1940 and Section 3 of
the Alien Social Integration Act of 1995 (R.A. 7917).
a.) None of the above

b.) A and B
c.) D only
d.) All of the above
Rationale: All of the following categories of foreign nationals stated are exempt from securing
an employment permit.
74. Non-immigrant foreigners who wish to avail of the SVEG should comply with the
following conditions, except one:
a.) The foreigner’s commercial investment/enterprise must provide actual employment to at
least 10 Filipinos in accordance with Philippine labor laws and other applicable special
laws.
b.) The foreigner shall actually, directly or exclusively engage in a viable and sustainable
commercial investment/enterprise in the Philippines, exercises/performs management
acts or has the authority to hire, promote and dismiss employees.
c.) He is not a risk to national security.
d.) He must have resided in the Philippines for at least 1 year.
e.) He evinces a genuine intention to indefinitely remain in the Philippines.
Rationale: The law does not require that the non-immigrant foreigner should have stayed in the
Philippines prior to his request for a Special Visa for Employment Generation.
75. Which of the following is not considered a goal and objective of RA 7796, otherwise
known as the “TESDA ACT of 1994”?
a.) Focus technical education and skills development on meeting the changing demands for
quality middle-level manpower.
b.) Recognize and encourage the complementary roles of public and private institutions in
technical education and skills development and training systems.
c.) Promote and strengthen the quality of technical education and skills development
programs to attain international competitiveness.
d.) Inculcate desirable values through the development of moral character with emphasis on
work ethic, self-discipline, self-reliance and nationalism.
e.) Encourage critical and creative thinking by disseminating the scientific and technical
knowledge base of middle-level manpower development programs.
f.) None of the above.
Rationale: This is to help the State provide relevant, accessible, high quality and efficient
technical education and skills development in support of the development of high quality
Filipino middle-level manpower responsive to and in accordance with Philippine development
goals and priorities.
76. Dual Training System is the framework where a worker-trainee receives training
both in school through theoretical instructions and in the workshop or factory with
actual practice or application. This is to:
I. Promote minimum protection and welfare of the worker-trainee.

II. Improve the quantity, irrelevance, and accountability of technical education and
skill development.
III. Accelerate the employment-generation efforts of the government.
IV. Expand the range of opportunities for upward social mobility of the school-going
population beyond traditional higher levels of formal education.
Which among those listed above are correct?

a.) I and III
b.) II and IV
c.) I and II
d.) III and IV
e.) None of the above
Rationale: The Dual Training System aims to promote maximum protection and welfare of the
worker-trainee and it aims to improve the quality, relevance, and accountability of technical
education and skill development as stated under RA 7686.
77. In Book II, Title I, Art. 44 of the Labor Code, ___________ is the portion of the
nation’s population which has actual or potential capability to contribute directly to
the production of goods and services while __________ is the training for self-
employment or assisting individual or small industries.
a.) Labor Force, Recruitment

b.) Production, Training
c.) Manpower, Entrepreneurship
d.) Laborers, Pioneering
Rationale: Article 44. Definitions. As used in this Title:

"Manpower" shall mean that portion of the nation’s population which has actual or potential
capability to contribute directly to the production of goods and services.
"Entrepreneurship" shall mean training for self-employment or assisting individual or small
industries within the purview of this Title.
78. Book II, Title I, Art. 45 of the Labor Code was repealed by what law.
a.) R.A. No. 7796
b.) R.A. No. 7974
c.) R.A. No. 9677
d.) R.A. No.9776
Rationale: Repeal of Article 45.
Article 45 was repealed by R.A. No. 7796. Its first paragraph was repealed by Section 5
[TESDA Creation] of the latter law and its second paragraph by Section 7 [Composition
of the TESDA Board] thereof.
Consequently, TESDA replaced and absorbed all the functions of the National Manpower
and Youth Council (NMYC) and the Bureau of Technical and Vocational Education
(BTVE) and the personnel and functions pertaining to technical-vocational education in
the regional offices of the Department of Education, Culture and Sports (DECS) [now
Department of Education or DepEd].
79. Under Article 45, Title 1, Book II of the Labor Code there is a National Manpower
and Youth Council tasked to carry out the objectives of Title 1. Because of the
repeal of Article 45, the National Manpower and Youth Council is now replaced by
what agency of the government?
a.) DOLE
b.) POEA
c.) NLRC
d.) TESDA
Rationale: By virtue of R.A. No. 7796 also known as the “Technical Education and Skills
Development Act of 1994”, the abolition of the NMYC and the creation of TESDA in its place,
the term “Council” now refers to TESDA.
80. Under Book II Human Resources Article 52, Incentive scheme, how much is the
additional deduction from the taxable income of the value of labor training expenses
incurred for development programs that shall be granted to the person or enterprise
concerned provided that such development programs, other than the apprenticeship,
are approved by the Council and the deduction does not exceed ten percent of the
direct labor wage?
a) One half (1/2) of the value of labor expenses
b) One half (1/2) of the value of labor wages
c) One third (1/3) of the value of the labor expenses
d) Either A or B
Rationale: Article 52, Incentive Scheme. — An additional deduction from taxable income
of one-half (1/2) of the value of labor training expenses incurred for development programs
shall be granted to the person or enterprise concerned provided that such development
programs, other than apprenticeship, are approved by the Council and the deduction does
not exceed ten per cent (10%) of the direct labor wage.
There shall be a review of the said scheme two years after its implementation.
81. Under Book II of the Human Resources Article 53, who has administrative
supervision over the Council Secretariat?
a.) Secretary of Labor
b.) Secretary of TESDA
c.) Secretary of Tourism
d.) Secretary of NMYC
Rationale: Article 53. Council Secretariat, - The Council (With the abolition of the NMYC and
the creation of TESDA in its place, the term “Council” now refers to TESDA) shall have a
Secretariat headed by a Director-General who shall be assisted by a Deputy Director-General,
both of whom shall be career administrators appointed by the President of the Philippines on
recommendation of the Secretary of Labor. The Secretariat shall be under the administrative
supervision of the Secretary of Labor and shall have an Office of Manpower Planning and
Development, an Office of Vocational Preparation, a National Manpower Skills Center regional
manpower development office and such other offices as may be necessary.
82. Who appoints the Director-General of TESDA?

a.) TESDA Board of Directors
b.) President of the Republic of the Philippines
c.) Chief Executive Officer of the TESDA
d.) Vice President of the Philippines
Rationale: THE DIRECTOR-GENERAL. The TESDA Secretariat is headed by a Director-

General who should likewise be a member of the TESDA Board. The Director-General is
appointed by the President of the Philippines and enjoys the benefits, privileges and emoluments
equivalent to the rank of undersecretary. As Chief Executive Officer of the TESDA Secretariat,
he exercises general supervision and control over its technical and administrative
personnel (Section 11, Sections 3 and 6, Rule IV).
83. According to the TESDA Act of 1994 which provides for the Regional TESDA Offices,
The Director-General has direct control over the offices of TESDA, these are the
functions of the Director-General except:
a.) To provide effective supervision, coordination and integration of technical education and
skills development programs, projects and related activities in their respective jurisdictions.
b.) To develop and recommend TESDA programs for regional and local-level
implementation within the policies set by TESDA.
c.) To review and recommend TESDA programs for implementation within their
localities.
d.) To serve as Secretariat to Regional Technical Education Skills Development (TESDA)
Committees.
e.) To perform such other duties and functions as may be deemed necessary
Rationale: The review and recommendation of TESDA programs for implementation within
specific localities is one of the Skills Development Officers of the TESDA Provincial Offices
functions and not the Director-General himself.
84. The Council which is referring to TESDA pursuant to the council’s objectives they
are authorized to set aside a portion of their appropriation for what of the following
reasons?
a.) For research and publication.

b.) For the development of its services they provide.
c.) For better management in between the offices of the council.
d.) For the hiring of better technological advancement in order to provide better programs in their
respective localities.
LABOR LAW 1 MCQ 1 (Week 1-5)
2 SP-B Class Mayor: Glenie Jen Ulban (Week 1-2; items 1-50)
2 SP-A Class Mayor: Alyssa Trinidad E. Siadto (Week 3-5; items 51-100)
85. Choose the best answer to fill in the blanks: “Article 56 Rules and regulations. The
Council shall define its broad functions and issue rules and regulations
necessary to the provision of this Code.”
a.) relevant, develop
b.) firm, administer
c.) stable, form
d.) appropriate, implement
86. In the Labor Code, there are three (3) groups that are considered “special workers”
under Title IL, Book II of the Labor Code, namely:
a.) Apprentices, Learners and Handicapped workers
b.) Women, Minors, Househelpers and Homeworkers
c.) Apprentices, Learners and Homeworkers
d.) Women, Minors and Homeworkers
Rationale: Apprentices, Learners and Handicapped workers are considered “special workers.
Women, Minors, Househelpers and Homeworkers are “special groups of employees”.
Being “special workers” and “special groups of employees,” they are governed by rules separate
and distinct from those applicable to all other workers.
87. Who is an apprentice?
a.) A worker who is covered by a written apprenticeship agreement with an individual

employer or any of the entities recognized under the law.
b.) an employment contract wherein the employer binds himself to train the apprentice and
the apprentice in tum accepts the terms of the training and agrees to work for the
employers.
c.) any trade, form of employment or occupation approved for apprenticeship by the DOLE
Secretary, which requires for proficiency, more than three (3) months of practical training
on the job supplemented by related theoretical instructions.
d.) a worker who is covered by an oral apprenticeship agreement with an individual
employer or any of the entities recognized under the law.
Rationale: An "apprentice" is a worker who is covered by a written apprenticeship agreement

with an individual employer or any of the entities recognized under the law. ( Article 58 [b]
Labor Code, reffering to Chapter I, Title II of Book II d the Labor Code, Section 2, Rule VI, Book
II Rules to implement the Labor Code).
88. Apprenticeship programs are being implemented pursuant to the following laws except:
a.) No. 7769 (Technical Education and Skills Development Act of 1994) and its
Implementing Rules and Regulations)
b.) No. 7796 (Technical Education and Skills Development Act of 1994) and its Implementing
Rules and Regulation)
c.) No. 442(Labor Code of the Philippines) and its Implementing Rules and Regulations;
d.) Executive Order No. 111
e.) No. 1826“National Apprenticeship Act of 1957"
f.) TESDA'S APPRENTICESHIP PROGRAM
Rationale: By virtue of R.A. No. 7796, the apprenticeship program of the Bureau of Local
Employment (BLE) of the Department of Labor and Employment (DOLE) had been
replaced and absorbed by TESDA (Section 5, RA. No. 7796; Section 1, Rule III, Rules and
Regulations implementing the TESDA Act of 1994). Consequently, TESDA is now tasked
to implement and administer said program in accordance with existing laws, rules and
regulations (Section 18, RA No. 7796). Using the user-led or market-driven strategy,
TESDA is mandated to implement and administer a reformed industry-based
apprenticeship program (Section 3, Rule V1, Rules and Regulations implementing the
TESDA Act of 1994). With the transfer of the apprenticeship program to TESDA, all
applicable systems and procedures in the Technical-Vocational Education and Training
(TVET) are applied to said program. Implementation of the said program, however,
remains to be in accordance with the Labor Code and Executive Order No. 111, per
Section 18 of R.A. No. 7796.
89. What is the age of qualification apprenticeship?

a.) 13 years of age
b.) 14 years of age
c.) 15 years of age
d.) 16 years of age
Rationale: Article 59 prescribes that the minimum age of the applicant-apprentice should be at
least fourteen (14) years of age. However, the minimum age requirement under the Rules to
Implement the Labor Code is fifteen (15) years. Generally, the well-settled rule of legal
hermeneutics dictates that if there is a conflict between the law and its implementing rule or
regulation, the provision of the former should prevail over the latter. The implementing rule
cannot certainly operate to amend the law. Consequently, the minimum age requirement should
have been fourteen (14) years of age except for the fact that the age requirement in the said
Implementing Rules is based on and more congruent with latest legislation, more particularly,
the 2003 law, RA. No. 9231,( Entitled AN ACT PROVIDING FOR THE ELIMINATION OF THE
WORST FORMS OF CHILD LABOR AND AFFORDING STRONGER PROTECTION FOR THE
WORKING CHILD. AMENDING FOR THIS PURPOSE REPUBLIC ACT NO. 7610, AS
AMENDED. OTHERWISE KNOWN AS THE 'SPECIAL PROTECTION OF CHILDREN
AGAINST CHILD ABUSE, EXPLOITATION AND DISCRIMINATION ACT' approved on
December 19, 2003.) where it is provided that:
(1) All persons under eighteen (18) years of age shall be considered as a "child"; and
(2) Children below fifteen (15) years of age shall not be employed except if he/she falls under
any of the exceptions (The exceptions, as enumerated in Social 12 of RA No. 7610, as amended
by Section 2 of RA. No. 9231) mentioned and enumerated in the law. (Article 59, Labor Code;
Section 11, Rode VI Book it Rules to Implement the Labor Code.)
Apprenticeship is not one of the exceptions, therefore, this prohibition on employing an
apprentice below the age of fifteen (15) years applies to apprentices. Consequently, the proper
age qualification is fifteen (15) years but not because of the Rules to Implement the Labor
Code's provision as mentioned above but by reason of R.A. No. 9231.
90. Who may establish apprenticeship programs?

a.) Any entity, whether or not organized for profit, may establish or sponsor apprenticeship
programs and employ apprentices.
b.) Any entity, organized for profit, may establish or sponsor apprenticeship programs and
employ apprentices.
c.) Any entity, not organized for profit, may establish or sponsor apprenticeship programs and
employ apprentices.
d.) Any entity, whether or not organized for profit, cannot establish or sponsor apprenticeship
programs and employ apprentices.
Rationale: Section 9, Rule VI. Book II. Rules to Implement the Labor Code. Who may establish
programs. – Any entity, whether or not organized for profit may establish or sponsor
apprenticeship programs and employ apprentices.
91. The following are the required contents of apprenticeship agreements except?
a.) The full names and addresses of the contracting parties;
b.) Date of birth of the apprentice;
c.) Place of birth of the apprentice;
d.) Name of the trade, occupation or job in which the apprentice will he trained and the dates on
which such training will begin and will approximately end;
e) The approximate number of hours of on-the-job training as well as of supplementary
theoretical instructions which the apprentice shall undergo during his training.
Rationale: Under Article 61 and its Implementing Rules, every apprenticeship agreement should
include the following:
1. The full names and addresses of the contracting parties;
2. Date of birth of the apprentice;
3. Name of the trade, occupation or job in which the apprentice will he trained and the
dates on which such training will begin and will approximately end;
4. The approximate number of hours of on-the-job training as well as of supplementary
theoretical instructions which the apprentice shall undergo during his training;
5. A schedule of the work processes of the trade/occupation in which the apprentice
shall be trained and the approximate time to be spent on the job in each process;
6. The graduated scale of wages to be paid the apprentice;
7. The probationary period of the apprentice during which either party may summarily
terminate their agreement; and
8. A clause that if the employer is unable to fulfill his training obligation, he may
transfer the agreement, with the consent of the apprentice, to any other employer who
is willing to assume such obligation. (Article 61, Labor Code, Section 18, Rule VI,
Book II, Rules to Implement the Labor Code.)
92. The following are valid causes for termination by employer except:
a.) Habitual absenteeism in on-the-job training and related theoretical instructions.
b.) Poor physical condition, permanent disability or prolonged illness which incapacitates the
apprenticeship from working.
c.) Poor efficiency or performance on the job or in the classroom for a prolonged period despite
warning duly given to the apprentice; and
d.) Engaging in violence or other forms of gross misconduct outside the employer’s premises
e.) None of the above
Rationale: The employer may terminate the apprenticeship agreement upon any of the following
causes:
1. Habitual absenteeism in on-the-job training and related theoretical instructions;
2. Willful disobedience of company rules or insubordination to lawful order of a superior;
3. Poor physical condition, permanent disability or prolonged illness which incapacitates the
apprenticeship from working;
4. Theft or malicious destruction of company property and/or equipment;
5. Poor efficiency or performance on the job or in the classroom for a prolonged period despite
warning duly given to the apprentice; and
6. Engaging in violence or other forms of gross misconduct inside the employer’s premises. ( 25,
Rule VI, Book II, Ibid)
93. Following the Doctrine of Exhaustion of Administrative Remedies enunciated in Article

67 of the Labor Code, no person is allowed to institute any action for the enforcement of
any apprenticeship agreement or for damages for breach thereof, unless he has availed of
all the means of administrative processes afforded him. Which administrative bodies and in
what order should they be in settling issues?
a.) PAC, DOLE Secretary, DOLE Regional/Provincial
b.) PAC, DOLE Secretary, Supreme Court
c.) PAC, DOLE Regional/Provincial, Supreme Court
d.) DOLE Regional/Provincial, PAC, DOLE Secretary
e.) None of these
Rationale: ADMINISTRATIVE REMEDIES REFERRED TO IN ARTICLE 67.

Following this doctrine enunciated in Article 67 of the Labor Code, no person is allowed to
institute any action for the enforcement of any apprenticeship agreement or for damages for
breach thereof, unless he has exhausted all available administrative remedies.
The Administrative remedies referred to in article 67 are as follows:
1. Mediation and/or settlement of disputes involving violation of the apprenticeship
agreement.
According to Sec. 24, Rule VI, Book II of the Rules to Implement the Labor Ode, the
Plant Apprenticeship Committee (PAC) has the initial responsibility for settling differences
arising out of apprenticeship agreements. In the same vein, Section 32, Rule VI, Book II thereof
also mentions that the PAC is tasked to “mediate and/or settle in the first instance differences
between the employer and the apprentices arising out of an apprenticeship agreement”. TESDA
Circular No. 16, Series of 2004, also embodies the same rule that in case of any violation of an
apprenticeship agreement, the PAC, upon filing a complaint by the aggrieved party, shall have
the initial responsibility for settling differences. (No. 3, 12, thereof)
2. Decision on the dispute.
According to the same TESDA Circular, in case of failure by the PAC to settle the issue,
the TESDA Provincial Office or its authorized representative should refer the case to DOLE
Regional/Provincial Office which has jurisdiction over the concerned company to investigate and
render a decision pursuant to pertinent rules and regulations. (No. 3, 12, Ibid)
3. Appeal to DOLE secretary.
The decision of the DOLE Regional/Provincial Office which is the authorized agency of
the Department of Labor and Employment referred to in Article 66 of the Labor Code and under
TESDA Circular No. 16, Series of 2004, may be appealed by any aggrieved person to the DOLE
Secretary within five (5) days from receipt of the decision. The decision of the DOLE secretary
shall be final and executory.
94. Who shall perform the service free of charge if employers or entities with duly
recognized apprenticeship programs do not have adequate facilities for the purpose?
a.) National Labor Relations Commission
b.) Department of Agrarian Reform
c.) Department of Labor and Employment
d.) Department of Finance
Rationale: Article 68. Aptitude Testing of Applicants
95. What is the technical information based on apprenticeship standards approved by

TESDA (Formerly the Bureau of Apprenticeship) which provides the apprentice
theoretical competence in his trade?
a. On –The-Job Training
b. Related Theoretical Instructions
c. Apprenticeship
d. Labor Code
Bases: Sec. 2, Rule VI, Book II, Rules to Implement the Labor Code
Article 69, Responsibility for Theoretical Instruction
96. In Article 71. Deductibility of Training Costs. – An additional deduction from

taxable income of _____of the value of labor training expenses incurred for
developing the productivity and efficiency of apprentices shall be granted to the
person or enterprise organizing an apprenticeship program; Provided, that such
program is duly recognized by the Department of Labor and Employment;
Provided, further, That such deduction shall not exceed _____of direct labor wage:
and Provided, finally, That the person or enterprise who wishes to avail himself or
itself of this incentive should pay his apprentices the minimum wage.
a. one-fourth (1/4); ten percent (10%)
b. one-fourth (1/4); twenty percent (20%)
c. one-half (1/2); ten percent (10%)
d. one-half (1/2); twenty percent (20%)
97. ________ refers to any practical training on learnable occupation which may or may
not be supplemented by related theoretical instructions.
a.) Learning
b.) Learnership
c.) Learnable Occupation
d.) Learnership agreement
Rationale: "Learnership" refers to any practical training on learnable occupation which may or
may not be supplemented by related theoretical instructions. (No. 2, Circular No.16, Series of
2004, dated Aug. 12, 2004 [Revised Guidelines in the Implementation of Apprenticeship and
Learnership Program].)
98. The DOLE Secretary may authorize the hiring of apprentices without compensation
under the following situations:
Statement I: When the training on the job as an apprentice is required by the school curriculum as
a prerequisite for graduation;
Statement II: When the same training is required for taking a government board examination.
a) Only Statement 1 is correct.
b) Only Statement 2 is correct.
c) Both statements are correct.
d) Both statements are not correct.
Rationale: Under Article 72, The DOLE Secretary, through its Apprenticeship Division (now
TESDA) may authorize the hiring of apprentices without compensation under the following
situations:
1. When the training on the job as an apprentice is required by the school curriculum as a
prerequisite for graduation; or
2. When the same training is required for taking a government board examination. (Article72,
Labor Code; Section 40, Rule VI, Book II, Rules to Implement the Labor Code.)
99. In Article 75, Learnership Agreement includes the following, except:

a.) The names and addresses of the learners:
b.) The duration of the learnership period this shall not exceed five (5) months;
c.) The wages or salary rates of the learners which shall begin at not less than seventy-five
percent (75%) of the applicable minimum wage; and
d.) A commitment to employ the learners if they so desire as regular employees upon completion
of the learnership. All learners who have been allowed or suffered to work during the first two (2)
months shall be deemed regular employees if training is terminated by the employer before the
end of the stipulated period through no fault of the learners.
e.) All of the Above
Rationale:
Article 75. Learnership Agreement. (b) The duration of the learnership period this shall not
exceed three (3) months;
100.Which of the statements is true?

Statement 1: A minor below seventeen (17) years of age shall be eligible for employment
as a learner. Those below nineteen (19) years of age may only be employed in non-
hazardous occupations.
Statement 2: A minor below fifteen (15) years of age shall not be eligible for employment
as a learner. Those below eighteen (18) years of age may only be employed in non-
hazardous occupations.
a.) Both are True
b.) Both are False
c.) Statement 1 is True
d.) Statement 2 is True
Rationale: EMPLOYMENT OF MINORS AS LEARNERS.

A minor below fifteen (15) years of age shall not be eligible for employment as a learner.
Those below eighteen (18) years of age may only be employed in non-hazardous occupations.
(Section 6, Rule VII, Book II, Rules to implement the Labor Code.)
JD 2 SP-A Class Mayor: Alyssa Trinidad E. Siadto (items 1-45)
JD 2 SP-B Class Mayor: Glenie Jen Ulban (items 51-100)
1 and 2 by Perlin Ba-awa
1.) Which of the following statement is true:

Statement 1: Managerial employees are not those whose primary duty consists of
the management of the establishment in which they are employed or of a
department or subdivision thereof, and to other officers or members of the
managerial staff.
Statement 2: Managerial employee is one who is vested with the powers or
prerogatives to lay down and execute management policies and/or to hire,
transfer, suspend, lay-off, recall, discharge, assign or discipline employees.
A. Only statement 1 is true

B. Both statements are true
C. Statement 2 is false
D. Statement 1 is false, statement 2 is true
E. Both statements are incorrect
Answer: D.
2.) Fill in the blank:

If an employer assigns the domestic workers or kasambahay to work, whether in
full or part-time, in __________, __________ or, __________ the kasambahay
ceases to be one and thus shall be treated as a regular employee of such enterprise
and be entitled to all the labor standards provided in the Labor Code.
A. Personal, comfort and enjoyment

B. comfort, industrial, agricultural
C. commercial, industrial, agricultural enterprise
D. commercial, enjoyment, industrial.
Answer: C.
3 and 4 by Shielah Baguec
3.) Work is measured:

A. Based on work output, productivity, or yield.
B. Both by piece and by task.
C. Either by piece or by task.
D. Either by piece, by task, or by time.
E. Work is not measured at all.
BASIS / RATIONALE: Generally, workers paid by results are those whose work is not
measured in accordance with the time they spent to complete the work. The time element,
in fact, is NOT a material consideration.
Such work is measured either: (1) By piece, or (2) by task.
“By piece” refers to those who are compensated on the basis of the units or pieces of work
they produced and accomplished. The work process involved is usually repetitive and the
compensation is uniform per unit or per piece.
“By Task”, on the other hand, refer to those who are compensated on the basis of the
completion or accomplishment of a certain specified task. This is commonly known as
pakyao (Sometimes spelled “pakyaw” as in the case of Ariel David v. Macasio, GR No.
195466, July 2, 2014) which simply means “wholesale.”
4.)
STATEMENT I:
In Barcenas v. NLRC, the Supreme Court held that petitioner Filomena Barcenas, who
attended to temple visitors, supervised food preparation for them, and paid the temple’s
utility bills, was a mere servant in the Manila Buddhist Temple.
STATEMENT II:
The fact that petitioner Filomena Barcenas attended to temple visitors, supervised food
preparation for them, and paid the temple’s utility bills, are enough to consider her a mere
servant of the temple.
Which of the following is correct?

A. Both statements are correct.
B. Neither statement is correct.
C. Only statement II is correct.
D. Only statement I is correct.
BASIS / RATIONALE: In Barcenas v. NLRC, private respondent Manuel Chua contends

that petitioner Filomena Barcenas was not an employee but a servant at the Manila
Buddhist Temple. The Supreme Court, however, disagreed. It ruled that Barcenas was a
regular employee of the Manila Buddhist Temple, as secretary and interpreter of its Head
Monk, Su. As Head Monk, President, and Chairman of the Board of Directors of the Poh
Toh Buddhist of the Phils., Inc., Su was empowered to hire the petitioner under Art. 5 of
the By-Laws of the association.
Moreover, the work that petitioner performed in the temple could NOT be categorized as
mere domestic work. Barcenas, being proficient in the Chinese language, attended to the
visitors, mostly Chinese, who came to pray or seek advice before Buddha for personal or
business problems; arranged meetings between these visitors and the Head Monk and
supervised the preparation of the food for the temple visitors; acted as tourist guide of
foreign visitors; acted as liaison with some government offices; and made the payment for
the temple's Meralco, MWSS and PLDT bills. Indeed, these tasks may not be deemed
activities of a household helper. They were essential and important to the operation and
religious functions of the temple.
5 and 6 by Stephanie Bigay
5.) It means 24 consecutive-hour period which commences from the time the
employee regularly starts to work. It does not necessarily mean that it based on the
ordinary calendar day from 12:00 midnight to 12:00 midnight unless the employee
starts to work at this unusual hour.
A. work day
B. work week
C. reckoning point
D. compressed work week
E. none of the choices
Rationale: SECTION 5. Regular working hours. — The regular working hours of any
person covered by this Rule shall not be more than eight (8) hours in any one day nor
more than forty (40) hours in any one week.
For purposes of this Rule a "day" shall mean a work day of twenty-four (24) consecutive
hours beginning at the same time each calendar year.
6.) It consists of 168 consecutive hours or 7 consecutive 24 hour work days

beginning at the same hour and on the same calendar day each calendar
week.
A. reckoning point
B. compressed work week
C. work week
D. work day
E. none of the choices
Rationale: SECTION 5. Regular working hours. — The regular working hours of any
person covered by this Rule shall not be more than eight (8) hours in any one day nor
more than forty (40) hours in any one week.cralaw
For purposes a "week" shall mean the work of 168 consecutive hours, or seven
consecutive 24-hour work days, beginning at the same hour and on the same calendar
day each calendar week.
7 and 8 by Aurora Briz
7.) A compressed work week is allowed provided that the employees voluntarily
agree thereto, that there is no diminution in pay, and it is only for a temporary
duration.
The employer may compress the work days from 6 days (Monday to Saturday) to
five days (Monday to Friday) under certain conditions imposed by the
Department of Labor and Employment provided that some conditions are met,
and this case which one below goes awry?
A). Employees VOLUNTARILY AGREE to work 9 hours a day from Monday to

Friday;
B). There is no diminution in the take-home pay and fringe benefits of the
employees;
C). Value of benefits that will accrue to the Employee under proposed work
schedule is MORE THAN or, at least, COMMENSURATE with, or equal to, the
one-hour overtime pay that is due them during weekdays based on the Employees
quantification;
D). The one-hour overtime pay of the employees will become due and
demandable if ever they permitted or made to work on any Saturday during the
effectivity of the new working time arrangement, since the agreement between
the employees and management is that there will be no Saturday work in
exchange for a longer work day during week-days;
E). The work of the employees DOES NOT involve STRENUOUS

PHYSICAL EXERTION and they are provided with few rest periods or
snacks of their choice from time to time.
Rationale:
A compressed work week is allowed provided that the employees voluntarily

agree thereto, that there is no diminution in pay, and it is only for a temporary
duration.
The employer may compress the work days from 6 days (Monday to Saturday) to
five days (Monday to Friday) under certain conditions imposed by the
Department of Labor and Employment; and
In situation, for instance, where the employees’ workweek was forty-five (45)
hours consisting of eight hours daily from Monday to Friday and five (5) hours
on Saturday, the employer may propose to compress or shorten the work week
from Monday to Friday with work for nine (9) hours per day without overtime
pay for the excess one (1) hour, provided the following conditions are met:
1. Employees VOLUNTARILY AGREE to work 9 hours a day from Monday to

Friday;
2. There is no diminution in the take-home pay and fringe benefits of the
employees;
3. Value of benefits that will accrue to the Employee under proposed work
schedule is MORE THAN or, at least, COMMENSURATE with, or equal to,
the one-hour overtime pay that is due them during weekdays based on the
Employees quantification;
4. The one-hour overtime pay of the employees will become due and
demandable if ever they permitted or made to work on any Saturday during
the effectivity of the new working time arrangement, since the agreement
between the employees and management is that there will be no Saturday
work in exchange for a longer work day during week-days;
5. The work of the employees DOES NOT involve STRENUOUS PHYSICAL
EXERTION and they are provided with adequate rest periods or coffee
breaks in the morning and afternoon; and
6. The effectivity of the proposed working time arrangement should be of
TEMPORARY duration as determined by the Secretary of Labor
*Maximum working hours per day-12 hours otherwise OT applies
8.) If the standards set in determining the justifiability of the financial losses were to
be considered under what article of the Labor Code, petitioners would end up
failing to meet the standards in case synthesis of Bisig Manggagawa sa Tryco vs
NLRC Linton Commercial Co., Inc. vs. Hellera cases?
a. Art. 286 or Article 284 of the Labor Code

b. Art. 284 or Article 282 of the Labor Code
c. Art. 283 or Article 286 of the Labor Code
d. Art. 284 or Article 288 of the Labor Code
e. Art. 282 or Article 280 of the Labor Code
Rationale:
The compressed workweek scheme was originally conceived for establishments wishing
to save on energy costs, promote greater work efficiency and lower the rate of employee
absenteeism, among others. Workers favor the scheme considering that it would mean
savings on the increasing cost of transportation fares for at least one day a week; savings
on meal and snack expenses; longer weekends, or an additional 52 off-days a year, that
can be devoted to rest, leisure, family responsibilities, studies and other personal matters,
and that it will spare them for at least another day in a week from certain inconveniences
that are the normal incidents of employment, such as commuting to and from the
workplace, travel time spent, exposure to dust and motor vehicle fumes, dressing up for
work, etc. Thus, under this scheme, the generally observed workweek of 6 days is
shortened to 5 days but prolonging the working hours from Monday to Friday without
the employer being obliged to pay overtime premium compensation for work performed
in excess of 8 hours on weekdays, in exchange for the benefits above-cited that will
accrue to the employees.
Case synthesis: Bisig Manggagawa sa Tryco vs NLRC Linton Commercial Co., Inc. vs.
Hellera cases
MOA: employee waives the right to claim overtime pay for work rendered after 5:00 pm
until 6:12 pm from Monday to Friday considering that the compressed workweek
schedule is adopted in lieu of the regular workweek schedule which also consists of 46
hours. However, should an employee be permitted or required to work beyond 6:12 pm,
such employee shall be entitled to overtime pay.
CWW: 3 days on a rotation basis
- each worker would be working on a rotation basis for three working days only instead
of 6 days a week.
The MOA is enforceable and binding against petitioners. The CWW was unjustified and
illegal. Thus, petitioners committed illegal reduction of work hours.
Where it is shown that the person making the waiver did so voluntarily, with full
understanding of what he was doing, and the consideration or the quitclaim is credible
and reasonable, the transaction must be recognized as a valid and binding undertaking.
Financial losses must be shown before a company can validly opt to reduce the work
hours of its employees.
If the standards set in determining the justifiability of the financial losses under Art. 283
or Article 286 of the Labor Code were to be considered, petitioners would end up
failing to meet the standards.
9 and 10 by Nazrene Cimacio

9.) The following statements are true regarding the Historical background of Flexible
work arrangement and COVID advisory except:
I. Jan. 29, 2002: Advisory No. 02 with attachment requiring conformity of the
union with reporting to DOLE.
II. March 4, 2020: Advisory No. 09 which is a reconfigured advisory 02 to address
Covid situation (it appears that Advisory No. 09 has no attachment thus refer to
Advisory No. 02 attachment)
III. March 17, 2020: Advisory No. 209 (CAMP advisory which erroneously referred
on sec 1(b) art IV the use of Advisory No. 09 attachment which is non-existent or
referred to Advisory No. 02)
IV. March 18, 2020: Advisory No. 12 amending sec 1(b) art IV of Advisory No. 209
and introducing the Establishment Report for CAMP instead of the non-existent
or not applicable 09 attachment.
V. NLRC apparently realized that Advisory No. 09 has an incorrect attachment
attachment or the attachment being referred to is the attachment of Advisory
No. 02 which is applicable to Advisory No. 209 thus the amendment in Advisory
No. 12.
RATIONALE: It is DOLE not NLRC who apparently realized that Advisory No. 09
has no attachment or the attachment being referred to is the attachment of Advisory
No. 02 which is not applicable to Advisory No. 209 thus the amendment in Advisory No.
12.
10.) Which of the following statements is/ are true about DOLE Advisory no. 9:March 4,
2020.
I. Advisory no.9 posted March 4,2020 issued to assist and guide employers and
employees in the implementation of various flexible work arrangements as
alternative mechanisms and remedial measures.
II. Advisor no. 9 gives the employers an authority to terminate the employment of
their employees if the employers suffered significant financial loss during the
peak of COVID 19.
III. The adoption of flexible work arrangements is considered a better alternative than
outright termination of the services or the closure of establishments.
IV. Advisory no.9 is the reconfigured version of Advisory no.2 to address COVID
19 situation.
RATIONALE/ BASIS: Labor Advisory No. 09-20 Guidelines on the Implementation of

Flexible Work Arrangements as Remedial Measure due to the Ongoing Outbreak of
Coronavirus Disease 2019 (COVID-19)
11 to 13 by Wagner Dionisio
11.) Flexible Work Schedule is (Sec 3) is defined by Law as _______________?

a. the right granted to a solo parent employee to vary his/her arrival
and departure time without affecting the core work hours as defined
by the employer, provided: (Sec 6)
b. refers to one where employees are required to go on leave for several days
or weeks utilizing their leave credits, if there are any
c. refer to one where the work schedule is not continuous but the work-hours
within the day or week remain
d. none of the choices.
Rationale
RA 8972 known as “The Solo Parent’s Welfare Act of 2000” allows SOLO PARENT to
work on Flexible Schedule.
Flexible Work Schedule (Sec 3) is defined by Law as the right granted to a solo parent
employee to vary his/her arrival and departure time without affecting the core work hours
as defined by the employer, provided: (Sec 6)
1. Individual and company productivity is not affected; and

2. Employer may request exemption from above requirements from DOLE for certain
meritorious grounds.
12.) The Concept of “Flexible work arrangements”.

a. refers to alternative arrangements or schedules other than the
traditional or standard work hours, workdays and work week
b. refers to one where employees are required to go on leave for several days
or weeks utilizing their leave credits, if there are any
c. refers to one where the employees agree to avail of the holidays at some
other days provided there is no diminution of existing benefits as a result
of such agreement.
d. Compressed Workweek
Rationale
1. Specific Guideline - Department Advisory No. 2 Series of 2009

2. Purpose – Adoption of flexible work arrangements is considered as better
ALTERNATIVE than OUTRIGHT TERMINATION of the services of employees or
the TOTAL CLOSURE of the establishments
3. Concept – “Flexible work arrangements” refers to alternative arrangements or
schedules other than the traditional or standard work hours, workdays and work week
4. Flexible Work Arrangements
 Compressed Workweek
 Reduction of Workdays – refers to one where the normal workdays per week are
reduced but should not last for more than 6 months
 Rotation of Workers- refers to one where the employees are rotated or alternately
provided work within the workweek
 Forced Leave – refers to one where employees are require to go on leave for several
days or weeks utilizing their leave credits, if there are any
 Broken Time Schedule – refer to one where the work schedule is not continuous but
the work-hours within the day or week remain
 Flexi-holidays Schedule – refers to one where the employees agree to avail of the
holidays at some other days provided there is no diminution of existing benefits as a
result of such agreement.
13.)In case of administrative flexible work arrangements differences, the following

guidelines are to be observed:
a. Differences are treated as grievances under applicable grievance of the
company
b. If no grievance mechanism or if it is inadequate, the grievance shall be
referred to the Regional Office which has jurisdiction over the workplace
for appropriate conciliation
c. Employees are required to maintain, as part of their records, the
documentary requirements providing that the flexible work arrangement
was voluntarily adopted
d. all of the above statements.
Rationale
1. In case of differences, following guidelines are observed:
 Differences are treated as grievances under applicable grievance of the company

 If no grievance mechanism or if it is inadequate, the grievance shall be referred to the
Regional Office which has jurisdiction over the workplace for appropriate
conciliation
 Employees are required to maintain, as part of their records, the documentary
requirements providing that the flexible work arrangement was voluntarily adopted
Notice Requirement- Employer shall NOTIFY the DOLE through the Regional Office
which has jurisdiction over the workplace.
14 and 15 by Indira Dizuosa

14. Which of the following instances in connection to the effects of power interruption is
compensable or paid? Please select the letter of your choice.
A. Days when employees could not work due to lack of raw materials.
B. A shutdown due to power interruption.
C. Days when the employer required his employees to work due to workloads
that needs to be accomplished within a given deadline.
D. Days when work cannot be done because the main machinery used for the
production and operation of the business is out of order and is under repair.
Answer:
C.) Days when the employer required his employees to work due to workloads that
needs to be accomplished within a given deadline.
RATIONALE:
Policy Instructions No. 36 dated May 22,1978 was issued by the Undersecretary of
Labor and Employment to clarify the effects of power interruptions or brown outs on
productive man-hours provides that the days when work was not required and no
work could be done because of shutdown due to electrical power interruptions, lack of
raw materials and repair of machines, are not deemed hours worked.
15.) Which of the following scenarios are not treated as paid hours or non-compensable?
Please select the letter of choice.
A. Brown outs that last for 2 hours and most employees uses these hours to
visit the mall for personal shopping.
B. A power outage for more than 20 minutes and no work interruption happened
because the company has a backup generator.
C. Power interruption of less than 20 minutes where some employees gone to the
cafeteria for snacks, and some took a nap on the benches at the park.
D. An employer extending the working hours of his employees outside the
regular schedules to compensate for the loss of productive man-hours.
Answer: A. Brown outs that last for 2 hours and most employees uses these hours to
visit the mall for personal shopping.
RATIONALE:
Policy Instructions No. 36 dated May 22,1978 was issued by the Undersecretary of
Labor and Employment to clarify the effects of power interruptions or brown outs on
productive man-hours, provides that:
1. Brownouts of short duration but not exceeding 20 minutes shall be treated as

worked or compensable hours whether used productively by the employees or
not.
2. Brownouts running for more than 20 minutes may not be treated as hours
worked provided any of the following conditions are present: a) the
employees can leave their workplace or go elsewhere, whether within or
without the work premises; or b) the employees can use the time effectively
for their own interest.
3. In each case, the employer may extend the working hours of his employees
outside the regular schedules to compensate for the loss of productive man-
hours without being liable for overtime pay. (Employees are still paid but not
with an additional overtime pay)
16-18 by Abbijah Dulnuan
16.) Employers are required by law to give their employees not less than ____________
time-off for their regular meals. An exception to the rule is when a meal period of not less
than twenty minutes may be given by the employer provided that such shorter meal period
is credited as __________ hours worked of the employee:
1. Where the work is non-manual work in nature or does not involve strenuous
physical exertion;
2. Where the establishment regularly operated for not less than 16 hours a day;
3. In cases of actual or impending emergencies or when there is urgent work
to be performed on machineries, equipment or installations to avoid serious
loss which the employer would otherwise suffer; and
4. Where the work is necessary to prevent serious loss of perishable goods.
a. 20 minutes, not compensable

b. 60 minutes, compensable
c. 60 minutes, more
d. 20 minutes, less
RATIONALE: Article 85 of the Labor Code of the Philippines provides that “[I]t shall be
the duty of the employer to give his employees not less than sixty (60) minutes time-off
for their regular meals”.
(IRR, Book III, Rule, Sec. 7)
An exception to the rule is when a meal period of not less than twenty (20) minutes may
be given by the employer provided that such shorter meal period is credited as
compensable hours worked of the employee:
1. Where the work is non-manual work in nature or does not involve strenuous
physical exertion;
2. Where the establishment regularly operated for not less than 16 hours a day;
3. In cases of actual or impending emergencies or when there is urgent work to be
performed on machineries, equipment or installations to avoid serious loss which
the employer would otherwise suffer; and
4. Where the work is necessary to prevent serious loss of perishable goods
17.) The law allows a situation where the employees themselves request for the shortening
of meal period to not less than 20 minutes for the purpose of allowing them to leave work
earlier than the lapse of the 8 hours required by law.
However, the shortened period shall not be considered compensable working time
provided the following conditions are complied with, except for one:
a. The employees voluntarily agree in writing to a shortened meal period of 30

minutes and are willing to waive the overtime pay for such shortened meal period;
b. Where the establishment regularly operated for not less than 16 hours a day;
c. There should be no diminution in the benefits of the employees which they receive
prior to the effectivity of the shortened meal period
d. The work of the employees does not involve strenuous physical exertion and they
are provided with adequate coffee breaks in the morning and afternoon;
e. The value of the benefits derived by the employees from the proposed work
arrangement is equal to or commensurate with the compensation due them for the
shortened meal period as well as the overtime pay for 30 mins as determined by
the employees concerned;
f. The overtime pay of the employees will become due and demandable if ever they
are permitted or made to work beyond 4:30 pm; and
g. The effectivity of the proposed working time arrangement shall be for a temporary
duration as determined by the Secretary of Labor and Employment.
RATIONALE: When not compensable

The law allows a situation where the employees themselves request for the shortening of
meal period to not less than 20 minutes for the purpose of allowing them to leave work
earlier than the lapse of the 8 hours required by law. This shortened period, however, shall
not be considered compensable working time provided the following conditions are
complied with:
1. The employees voluntarily agree in writing to a shortened meal period of 30

minutes and are willing to waive the overtime pay for such shortened meal period;
2. There should be no diminution in the benefits of the employees which they receive
prior to the effectivity of the shortened meal period
3. The work of the employees does not involve strenuous physical exertion and they
are provided with adequate coffee breaks in the morning and afternoon;
4. The value of the benefits derived by the employees from the proposed work
arrangement is equal to or commensurate with the compensation due them for the
shortened meal period as well as the overtime pay for 30 mins as determined by
the employees concerned;
5. The overtime pay of the employees will become due and demandable if ever they
are permitted or made to work beyond 4:30 pm; and
6. The effectivity of the proposed working time arrangement shall be for a temporary
duration as determined by the Secretary of Labor and Employment.
18.) Which of the following statements is FALSE regarding waiting time?
a. An employee who is not required to leave word at his home or with company
officials where he may be reached is not working while on call.
b. The waiting time spent by an employee shall be considered as working time

when spent effectively and gainfully for his own purpose.
c. Waiting time spent by an employee shall be considered as working time if waiting

is an integral part of his work or the employee is required or engaged by the
employer to wait.
d. An employee who is required to remain on call in the employer’s premises or so

close thereto that he cannot use the time effectively and gainfully for his own
purpose shall be considered as working while on call.
RATIONALE: Book Three, Section 5 (Omnibus Rules to Implement the Labor Code of
the Philippines), Waiting Time
a. Waiting time spent by an employee shall be considered as working time if waiting

is an integral part of his work or the employee is required or engaged by the
employer to wait.
b. An employee who is required to remain on call in the employer’s premises or so

close thereto that he cannot use the time effectively and gainfully for his own
purpose shall be considered as working while on call. An employee who is not
required to leave word at his home or with company officials where he may be
reached is not working while on call.
19 and 20 by Fidel Khalang
19.)Ada Lovelace is a night shift accountant in a BPO company handling US and

Australian account, her regular working hours is from 8PM to 4AM. Her daily
basic pay amounts to P 850.00. Compute for her pay when she worked on May 1,
2022.
a) Her pay when she worked on May 1, 2022 is P 1,402.50

b) Her pay when she worked on May 1, 2022 is P 1,020.75
c) Her pay when she worked on May 1, 2022 is P 935
d) Her pay when she worked on May 1, 2022 is P 850
Rationale:
The night shift differential pay is 10% of the basic hourly rate or a total of 110%
of the basic hourly rate, thus, in a normal working day of Ada Lovelace, the basic
pay plus the night shift differential pay amounts to P 935 or P850 x 110%. Since
the problem presented is not a normal working day but regular Holiday we need
to first compute the rate for the holiday rate which is the 200% of the daily wage
or P850 x 2 in this case, and then compute for the night shift differential pay.
Notice also that in this problem, her work starts from 8PM to 4AM, since May 1,
2022 would end at 12 midnight the premium should only be computed from 8PM
to 12 midnight. So with this analysis it should be computed in the following
manner:
Regular Holiday. = P850 x 200%

= P1,700
May 1, 2022 Holiday pay (8PM to 12 midnight) = (P1,700 / 8 hours) x 4

hours.
= P850 for the 4

hours
worked
NOTE: Again the rationale of the computation above is because Ada is

not working for the whole day of May 1, 2022 but only worked 4 hours of the
holiday and the other 4 hours of her work is not a holiday, so we get the hourly
rate and then multiply it to the hour worked.
4 hour regular day = (P850 / 8 hours) x 4 hours

= 425 for the 4 hours worked
8 hours worked = P850 (Holiday)+ P425 (regular night shift work)

= P 1,275
NOW THE COMPUTATION OF REGULAR HOLIDAY + NIGHT SHIFT

DIFFERENTIAL PAY:
Regular Holiday + Night Shift Differential = P 1,275 x 110%

= P 1,402.5
GUIDE in the computation of premium and OT pay vis-à-vis NSD

20.)Ada Lovelace is a night shift accountant in a BPO company handling US and
Australian account, her regular working hours is from 8PM to 4AM. Her daily
basic pay amounts to P 850.00. On May 1, 2022 she was asked to work because
of the tax deadline of her clients, she was asked for overtime until 6AM, this also
happened to be her rest day. Compute for her pay at the end of her work.
a) Her pay when she worked on May 1, 2022 is P 1,823.50
b) Her pay when she worked on May 1, 2022 is P 1,657.75
c) Her pay when she worked on May 1, 2022 is P 1,275
d) Her pay when she worked on May 1, 2022 is P 2,416.14
RATIONALE: May 1 is a regular holiday and she is working at night, so half of

her work falls on a regular day. Thus, we should compute first for the holiday pay
which is 200% of P850 and then divide it to 2 since half of the work day is not
holiday but a rest day. After the computation of the holiday pay we proceed in the
computation of the rest day pay which is 30% of the daily wage. But notice that
her wage for May 1, 2022 work is half regular holiday and half non-holiday, so
after we add the holiday and non-holiday component, the sum is the daily wage
where we can compute the 30% for the rest day pay component. We also need to
keep in mind that Ada is a regular night shift accountant, thus entitled for the
NSD. With this analysis, the computation below:
Regular Holiday = P850 x 200%

= P1,700
May 1 (Reg. Holiday Component) = P 1,700 / 2 or (P1,700/8 hr) x 4hr

= P 850
Non-Holiday Component = P 850/2 or (P850 /8 hr.) x 4hr

= P425
Daily Wage (May 1) = Regular Holiday Component + non-holiday component

= P 850 + P 425
= P 1,275
Daily wage + Rest day (May1) = Daily wage x 130% or P1,275 + (P1,275 x 30%)
= P1,275 x 130%
= P 1,657.5
NOTE: The computation does not end there, we need to compute for NSD and
overtime pay:
Daily wage + Rest day + NSD (May 1) = (Daily wage + Rest Day) x 110*
= P 1,657.5 x 110%
= P 1,823.5
After the computation of the NSD we now proceed with the computation of the
overtime pay which is 130% of the hourly rate, since the overtime fall on a rest
day and holiday:
Overtime pay = [(Daily wage + Rest day + NSD) / 8 hrs ] x 130%

= (P 1,823.5 x/ 8hr) x 130%
= P227.94/hr. x 130%
= P296.31/hr.
NOTE: Ada worked until 6AM so she is entitled for 2 hours overtime pay thus
the total amount she earned working on May 1, 2022 which happens to be a rest
day plus 2 hours of overtime is computed below:
May 1, 2022 earning = P1,823.5 + Overtime pay

= P 1,823.5 + (296.31/hr. x 2hr.)
= P 1,823.5 + P 592.64
May 1, 2022 earning = P 2,416.14
The following guide may also be helpful:
Ordinary day 100& or 1
Sunday or rest day 130 % or 1.3
Special day 130% or 1.3
Special day falling on a rest day 150% or 1.5
Regular Holiday 200% or 2
Regular holiday falling on rest day 260% or 2.6
Ordinary day, night shift 1 x 1.1 = 1.1 or 110%
Rest day, night shift 1.3 x 1.1 =1.43 or 143%
Special day, night shift 1.3 x 1.1 = 1.43 or 143%
Special day, rest day, night shift 1.5 x 1.1 = 1.65 or 165%
Regular holiday, night shift 2 x1.1 = 2.2 or 220%
Regular holiday. Rest day, night shift 2.6 x 1.1 = 2.86 or 286%
Double holiday, night shift 3 x 1.1 = 3.3 or 330%
Double holiday, rest day, night shift 3.9 x 1.1 = 4.29 or 429
Ordinary day, overtime (OT) 1 x 1.25 = 1.25 or 125%
Rest day, overtime 1.3 x 1.3 = 1.69 or 169%
Special day, rest day, overtime 1.5 x 1.3 = 1.95 or 195%

Regular holiday, overtime 2 x 1.3 = 2.6 or 260%
Regular holiday, rest day. Overtime 2.6 x 1.3 = 3.38 or 338%
Double holiday, overtime 3 x 1.3 = 3.9 or 390%
Double holiday, rest day, overtime 3.9 x 1.3 = 5.07 or 507%
Ordinary day. Night shift, overtime 1 x 1.1 x 1.25 = 1.375 or 137.5%
Rest day, night shift, overtime 1.3 x 1.1 x 1.3 = 1.859 or 185.9%
Special day, night shift, overtime 1.3 x 1.1 x 1.3 = 1.859 or 185.9%
Special day, rest day, night shift, OT 1.5 x 1.1 x 1.3 = 2.145 or 214.5%
Regular holiday, night shift, OT 2 x 1.1 x 1.3 = 286 or 286%
Regular holiday, rest day, night shift, OT 2.6 x 1.1 x 1.3 = 3.718 or 317.8%
Double holiday, night shift, OT 3 x 1.1 x 1.3 = 4.29 or 429%
Double holiday, rest day, night shift, OT 3.9 x 1.1 x 1.3 = 5.577 or 557.7%
21 and 22 by Mary Jane Lawagan
21.)What is included as part of the regular rate of the employee in the computation of
overtime pay for any work rendered especially if the employer pays only the
minimum overtime rates prescribed by law.
a. Premium pay for work performed on the rest days.
b. Premium pay for work performed on the special days.
c. Premium pay for work performed on the regular holidays.
d. All of the above.
Answer: D.
Rationale: Generally, the premium pay for work performed on the employee’s rest days
or on special days or regular holidays is included as part of the regular rate of the
employee in the computation of overtime pay for any overtime work rendered on said
days, especially if the employer pays only the minimum overtime rates prescribed by
law.
22.)What is the correct criterion in determining whether or not the sailor is entitled to
overtime pay?
a. Whether they are on board and cannot leave ship beyond the regular 8
working hours a day.
b. Whether they actually rendered service in excess of said number of hours.
c. Both A and B
d. None of the choices.
Answer: A
Rationale: The correct criterion in determining whether or not the sailor are entitled to
overtime pay is not whether they are on board and cannot leave ship beyond the regular 8
working hours a day, but whether they actually rendered service in excess of said number
of hours.
23 to 25 by Noraine Mendoza
23.) True or False: Where the choice of the employee as to their rest day based on
religious grounds will inevitably result in serious prejudice or obstruction to the
operations of the undertaking and the employer cannot normally be expected to resort to
other remedial measures, the employer may suspend the employee’s rest day as he sees
fit.
a. True
b. False
Rationale: The preference of an employee as to his weekly rest day shall be respected by
the employer if the same is based on religious grounds. Where, however, the choice of
the employee as to their rest day based on religious grounds will inevitably result in
serious prejudice or obstruction to the operations of the undertaking and the employer
cannot normally be expected to resort to other remedial measures, the employer may so
schedule the weekly rest day of their choice for at least 2 days in a month.
24.) For work performed on rest days or on special holidays, the premium pay is:
a. Plus 100% of the daily wage rate of 30% or a total of 130%.
b. Plus 50% of the daily wage rate of 100% or a total of 150%.
c. Plus 30% of the daily wage rate of 100% or a total of 130%.
d. Plus 100% of the daily wage rate of 50% or a total of 150%.
Rationale: DOLE established the rule that for work performed on rest days or on special
holidays, the premium pay is Plus 30% of the daily wage rate of 100% or a total of
130%.
25.)For work performed on a rest day which is also a special holiday, the premium pay
is:
e. Plus 50% of the daily wage rate at 100% or a total of 150%.
f. Plus 100% of the daily wage rate of 30% or a total of 130%.
g. Plus 30% of the daily wage rate of 100% or a total of 130%.
h. Plus 100% of the daily wage rate of 50% or a total of 150%.
Rationale: DOLE established the rule that for work performed on a rest day which is
also a special holiday, the premium pay is Plus 50% of the daily wage rate at 100% or a
total of 150%.
26 to 28 by Kate Orpiano
26. The following are regular holidays except one.

a. Good Friday
b. Independence Day
c. All Saints Day
d. National Heroes Day
Rationale:
Regular Holidays
New year’s Day-January 1
Maundy Thursday-Movable date
Good Friday-Movable date
Eidul Fitr-Movable date
Araw ng Kagitingan-Monday nearest April 9
Eidul Adha - Movable date
Labor Day-Monday nearest May 1
Independence Day-Monday nearest June 12
National Heroes Day-Last Monday of August
Bonifacio Day-Monday nearest November 30
Christmas Day-December 25
Rizal Day-Monday nearest December 30
Nationwide Special Holidays:

Ninoy Aquino Day-Monday nearest August 21
All Saints Day-November 1
Last Day of the Year-December 31
27. What is holiday pay?

a. Holiday pay is a day’s pay given by law to an employee even if he does not work
on a regular holiday, provided that he is present or is in leave with pay on the work
day immediately preceding the holiday. The purpose is to prevent diminution of the
monthly income of workers on account of work interruptions declared by the State.
b. Holiday pay is a day’s pay given by the employer to a laborer even if he does not work
on a regular holiday, provided that he is present or is in leave with pay on the work day
immediately preceding the holiday. The purpose is to prevent diminution of the monthly
income of workers on account of work interruptions declared by the State.
c. Holiday pay is a day’s pay given by employer to an employee if he works on a regular
holiday, provided that he is present or is in leave with pay on the work day immediately
preceding the holiday. The purpose is to prevent diminution of the monthly income of
workers on account of work interruptions declared by the State.
d. Holiday pay is a day’s pay given by law to an employee if he works on a regular
holiday, provided that he is present or is in leave with pay on the work day immediately
preceding the holiday. The purpose is to prevent diminution of the monthly income of
workers on account of work interruptions declared by the State.
Rationale:
Holiday pay is a day’s pay given by law to an employee even if he does not work on a
regular holiday, provided that he is present or is in leave with pay on the work day
immediately preceding the holiday. The purpose is to prevent diminution of the monthly
income of workers on account of work interruptions declared by the State. (In other
words, although the worker is forced by law to take a rest, he is not deprived of what he
should earn)
28.True or False: The following are the distinctions between “regular holidays” and
“special days”:
Statement 1: A covered employee who does not work during regular holidays is paid 100%
of his regular daily wage; while a covered employee who does not work during a special
day does not receive any compensation under the principle of “no work, no pay.”
Statement 2: A covered employee who works during regular holidays is paid 200% of his
regular daily wage; while a covered employee who works during special days is only paid
an additional compensation of not less than 30% of the basic pay or a total of 130% and at
least 50% over and above the basic pay or a total of 150%, if the worker is permitted or
suffered to work on special days which fall on his scheduled rest day.
a. False, False
b. False, True
c. True, False
d. True, True
Rationale:
The following are the distinctions between “regular holidays” and “special days”:
Statement 1: A covered employee who does not work during regular holidays is paid 100%
of his regular daily wage; while a covered employee who does not work during a special
day does not receive any compensation under the principle of “no work, no pay.”
Statement 2: A covered employee who works during regular holidays is paid 200% of his
regular daily wage; while a covered employee who works during special days is only paid
an additional compensation of not less than 30% of the basic pay or a total of 130% and at
least 50% over and above the basic pay or a total of 150%, if the worker is permitted or
suffered to work on special days which fall on his scheduled rest day.
29 and 30 by Christian Mark Pagaddut
29. When does an employee be paid by 200% of regular wage?
a. Regular holiday pay on rest day.
b. Regular holiday pay with over time
c. Regular holiday pay on regular workday
d. Regular holiday pay on sabbatical
RATIONALE: A covered employee who works during regular holidays is paid 200%
of his regular daily wage; while a covered employee who works during special days is
only paid an additional compensation of not less than 30% of the basic pay or a total of
130% and at least 50% over and above the basic pay or a total of 150%, if the worker is
permitted or suffered to work on special days which fall on his scheduled rest day.
30. What should be the computation of a Regular Holiday Pay on rest day on the
following basis?
Regular wage per hour = P100
Regular work Hours = 8 hours
Daily Wage = P800
a) P1600
b) P2080
c) P2100
d) P1280
RATIONALE:
FORMULA: Regular holiday pay on rest day (200% + 30%)
800 X 200% = 1600 Regular holiday pay
1600 x 30 % = 480 Rest day premium
1600 + 480 = P2080 Take home pay
31 and 32 by Ma. Skyla Rivera
31. Rules to Implement the Labor Code of the Philippines In Book 3, Rule IV,
Section 1, It shall apply to all employees except:
a) Field personnel and other employees whose time and performance is unsupervised
by the employer including those who are engaged on task or contract basis, purely
commission basis, or those who are paid a fixed amount for performing work
irrespective of the time consumed in the performance thereof.
b) Private school teachers, including faculty members of colleges and universities,
may not be paid for the regular holidays during semestral vacations. They shall,
however, be paid for the regular holidays during Christmas vacation.
c) Where a covered employee is paid by results or output, such as payment on piece
work, his holiday pay shall not be less than his average daily earnings for the last
seven (7) actual working days preceding the regular holiday; Provided, however, that
in no case shall the holiday pay be less than the applicable statutory minimum wage
rate.
d) Seasonal workers may not be paid the required holiday pay during off-season when
they are not at work.
Rationale: Rule IV Holidays with Pay

SECTION 1. Coverage. — This rule shall apply to all employees except:
(a) Those of the government and any of the political subdivision, including government-
owned and controlled corporation;
(b) Those of retail and service establishments regularly employing less than ten (10)
workers;
(c) Domestic helpers and persons in the personal service of another;
(d) Managerial employees as defined in Book Three of the Code;
(e) Field personnel and other employees whose time and performance is unsupervised
by the employer including those who are engaged on task or contract basis, purely
irrespective of the time consumed in the performance thereof.
32. In Labor Code Article 88 that cannot be offset by to allow offsetting

would prejudice the worker.
a) Undertime, Overtime
b) Overtime, Undertime
c) Holiday pay, Regular pay
d) Regular pay, Holiday pay
Rationale: Article 88 of the Labor Code that overtime cannot be offset by

undertime, to allow offsetting would prejudice the worker. He would be deprived of the
additional pay for the rest day work he has rendered and which is utilized to offset his
equivalent time off on regular workdays. To allow private respondent to do so would be
to circumvent the law on payment of premiums on rest day.
33 and 34 by Janos Tol-an
33. The following employees does not benefit with the SIL except:
a. Government employees, whether employed by the National Government or

any of its political subdivisions, including those employed in government-
owned and/or controlled corporations with original charters or created under
special laws;
b. Persons in the personal service of another;
c. Managerial employees, if they meet all the following conditions: Their
primary duty is to manage the establishment in which they are employed or of
a department or subdivision thereof; They customarily and regularly direct the
work of two or more employees therein; and They have the authority to hire
or fire other employees of lower rank; or their suggestions and
recommendations as to hiring, firing and promotion, or any other change of
status of other employees are given particular weight.
d. Officers or members of a managerial staff, if they perform the following
duties and responsibilities: Primarily perform work directly related to
management policies of their employer; Customarily and regularly exercise
discretion and independent judgment; (i)Regularly and directly assist a
proprietor or managerial employee in the management of the establishment or
subdivision thereof in which he or she is employed; or (ii) execute, under
general supervision, work along specialized or technical lines requiring
special training, experience, or knowledge; or (iii) execute, under general
supervision, special assignments and tasks; and Do not devote more than 20
% of their hours worked in a workweek to activities which are not directly
and closely related to the performance of the work described in paragraphs
4.1, 4.2 and 4.3 above;
e. Field personnel and those whose time and performance are supervised by
the employer, including those who are engaged on task or contract basis,
purely commission basis, or those who are paid a fixed amount for
performing work irrespective of the time consumed in the performance
thereof;
f. Those already enjoying this benefit;
g. Those enjoying vacation leave with pay of at least 5 days; and
h. Those employed in establishments regularly employing less than 10
employees.
BASIS: Rationale of SIL
- To afford an employee the chance to get much-needed rest to replenish his worn-
out energies and acquire new vitality to enable him to efficiently perform his
duties and not merely to give him additional salary or bounty. An employee, as a
matter of public policy, is entitled to this leave benefit in order to improve his
health and physical well-being.
E. Field personnel and those whose time and performance are unsupervised by the
employer, including those who are engaged on task or contract basis, purely
irrespective of the time consumed in the performance thereof;
34. Which of the following statement is correct?

a. A retiring taxi driver, being a field personnel is entitled to SIL during his
employment. Consequently, the SIL component of his retirement benefits
should not be included in the computation thereof.
b. A retiring taxi driver, being a field personnel is entitled to SIL during his
employment. Consequently, the SIL component of his retirement should still
be included in the computation thereof.
BASIS:
SIL is included as part of the retirement benefits that an employee who is retiring
optionally or compulsorily in entitled to.
However, it bears stressing that the inclusion of the SIL benefit as part of the retirement
benefits presupposes that during the employment of the retiring employee, he was
entitled to such benefit. If not so entitled, then the SIL should not be excluded in the
computation of the retirement benefits.
35-37 by May Camille Vencio
35. Under Article 96 of the Labor Code, all service charges collected by hotels,
restaurants and similar establishments shall be distributed at the rate of percent for all
covered employees, which must be equally distributed among them, and percent for
management.
a) 85;15
b) 80;20
c) 75:25
d) 50:50
e) None of the above
BASIS:
Under Article 96 of the Labor Code, all service charges collected by hotels,
restaurants and similar establishments shall be distributed at the rate of 85 percent for
all covered employees, which must be equally distributed among them, and 15 percent
for management.
36. The enactment of Republic Act No. 11360 — or “An Act Providing that Service
Charges Collected by Hotels, Restaurants and other Similar Establishments be
Distributed in Full to All Covered Employees” — amends Article 96 of the Labor Code
of the Philippines. It provides that rank-and-file employees of restaurants, hotels and
similar establishments are now entitled to of the service charges collected from
customers.
a) 89 %
b) 50 %
c) 90 %
d) 100%
f) None of the above
BASIS:
Republic Act No. 11360 — or “An Act Providing that Service Charges
Collected by Hotels, Restaurants and other Similar Establishments be Distributed in
Full to All Covered Employees”
37. Under the Republic Act 11360 or the Service Charge Law amending Article 96 of
the Labor Code:
1. All establishments collecting service charge such as

hotels and restaurants to distribute complete and equally or 100
percent service charges to all employees, including those in a
managerial position.
2. The Department of Labor and Employment (DOLE)

also issued the law’s Implementing Rules and Regulations
(IRR), which defines pertinent subjects, and sets out the
procedure for covered establishments and similar
establishments in distributing the service charges to covered
employees.
a) I is correct, II is incorrect
b) I is incorrect, II is correct
c) Both statements are correct
d) Both statements are incorrect
e) Both statements are unrelated
BASIS:
Under the Republic Act 11360 or the Service Charge Law amending Article 96 of
the Labor Code:
I. All establishments collecting service charge such as hotels and restaurants to distribute
complete and equally or 100 percent service charges to all employees, EXCEPT those in a
managerial position.
II. The Department of Labor and Employment (DOLE) also issued the law’s Implementing
Rules and Regulations (IRR), which defines pertinent subjects, and sets out the procedure
for covered establishments and similar establishments in distributing the service charges to
covered employees.
38 and 39 by Joanna Marie Ymson
38. Which activities are not considered to be part of the term “agriculture” based on Article
97 of the Labor Code?
a. Cultivation and tillage of soil;
b. Production, cultivation, growing, and harvesting of any agricultural and
horticultural commodities;
c. Raising of livestock or poultry
d. Manufacturing and/or processing of sugar, coconut, tobacco, pineapple,

aquatic or other farm products
Basis:
Labor Code, Book III, Conditions of Employment, Article 97(d)
“Agriculture” includes farming in all its branches and, among other things,
includes cultivation and tillage of soil, dairying, the production, cultivation, growing
and harvesting of any agricultural and horticultural commodities, the raising of
livestock or poultry, and any practices performed by a farmer on a farm as an incident
to or in conjunction with such farming operations, but does not include the
manufacturing or processing of sugar, coconuts, abaca, tobacco, pineapples or other
farm products.
39. What is the significance of distinguishing between agricultural and non-agricultural
workers in ascertaining wages rates?
a. The significance in the distinction lies in the fact that the rates of wages of non-
agricultural workers are often fixed by law lower than those of agricultural
workers.
b. The significance in the distinction lies in the fact that the rates of wages of non-
agricultural workers are often fixed by the Department of Agriculture lower than
those of agricultural workers.
c. The significance in the distinction lies in the fact that the rates of wages of
agricultural workers are often fixed by law lower than those of non-
agricultural workers.
d. The significance in the distinction lies in the fact that the rates of wages of
agricultural workers are often fixed by law higher than those of non-agricultural
workers.
Basis:
Labor Code, Book III, Conditions of Employment, Art. 99.
Regional minimum wages. The minimum wage rates for agricultural and non-
agricultural employees and workers in each and every region of the country shall be
those prescribed by the Regional Tripartite Wages and Productivity Boards. (As
amended by Section 3, Republic Act No. 6727, June 9, 1989).
40 and 41 by Jalliah Yusoph
40. This is the law used in determining the equivalent monthly regional minimum wage rates.
A. RA 9492
B. RA 8042
C. RA 9262
D. RA 10022
Rationale:
The use of factors or divisors in the computation of estimated monthly rates of employees
pursuant to Republic Act No. 9492, or an “Act Rationalizing the Celebration of National
Holidays.”
Section 9. Suggested Formulae in Determining the Equivalent Monthly Regional Minimum
Wage Rates. Without prejudice to existing company practices, agreements or policies, the
following computation of the Estimated Equivalent Monthly Rate (EEMR) of employees in the
private sector because of the National Heroes’ Day which is now observed on the Last Monday
of August, shall accordingly use the following formulae in the determining the EEMR of the
employees:
For those who are required to work every day including Sundays or rest days, special days and
regular holidays, the previous factor of 392.8 will now be 392.5;
For those who do not work and are not considered paid on Sundays or rest days, the previous
factor of 314 will now be 313;
For those who do not work and are not considered paid on Saturdays and Sundays or rest days,
the previous factor of 262 will now be 26;
As to 365 days/year factor, although there is no effect as to the payment in the monthly salary
of employees as they are paid all days of the year.
41. This recognizes the right of everyone to the enjoyment of just and favorable conditions
of work which ensure, in particular: ( a) Remuneration which provides all workers, as
a minimum, with (i) Fair wages and equal remuneration for work of equal value without
distinction of any kind, in particular women being guaranteed conditions of work not
inferior to those enjoyed by men, with equal pay for equal work; mentioned in the case
of International School Alliance of Educators vs Quisumbing (2000) 333 SCRA 13.
A. Right to Organise and Collective Bargaining Convention

B. Equal Remuneration Convention
C. Discriminatopn (Employment and Occupation) Convention
D. International Covenant on Economic, Social, and Cultural Rights
Rationale:
In the case of International School Alliance of Educators vs Quisumbing (2000) 333 SCRA
13 it was ruled that Employees are entitled to same salary for performance of equal work.
Notably, the International Covenant on Economic, Social, and Cultural Rights, supra, in Article
7 thereof, provides: The States Parties to the present Covenant recognize the right of everyone
to the enjoyment of just and favorable conditions of work, which ensure, in particular: ( a)
Remuneration which provides all workers, as a minimum, with: (i) Fair wages and equal
remuneration for work of equal value without distinction of any kind, in particular women
being guaranteed conditions of work not inferior to those enjoyed by men, with equal pay for
equal work; The foregoing provisions impregnably institutionalize in this jurisdiction the long
honored legal truism of "equal pay for equal work." Persons who work with substantially equal
qualifications, skill, effort and responsibility, under similar conditions, should be paid similar
salaries.
42 to 45 by Jasmaine Otanes
42. The ________ is the factor or number of days used by an employer in determining the
daily rate of monthly-paid employees.
a. Divisor
b. Sick leave pay
c. Overtime pay
d. Service incentive leave
Answer:
A. Divisor. The "divisor" is the factor or number of days used by an employer in
determining the daily rate of monthly-paid employees.
For purposes of this study, the term "divisor test" signifies the method of
computing the daily wage rate of monthly-paid employees. It is well to note that
the "divisor" forms an integral element of the "divisor test."
43. It prescribes that the 60% of increases in tuition shall be allocated for increase of salaries
and wages of teaching and non-teaching personnel and the balance be allocated to
institutional development, student assistance and extension services.
a. Batas Pambansa 232
b. Presidential Decree 451
c. Republic Act 6728
d. Batas Pambansa 129
Answer:
B. Presidential Decree 451. PRESIDENTIAL DECREE No. 451 May 11, 1974.
AUTHORIZING THE SECRETARY OF EDUCATION AND CULTURE TO
REGULATE THE IMPOSITION OF TUITION AND OTHER SCHOOL FEES,
REPEALING REPUBLIC ACT NO. 6139, AND FOR OTHER PURPOSES
45. How many percentages does the law allows increase in the school tuition fees?
a. 50%
b. 45%
c. 70%
d. 75%
Answer:
C. 70%. The law allows increase in school tuition fees on the condition that 70% of
the increase shall go to the payment of salaries, wages, allowances and other
benefits of teaching and non-teaching personnel.
51. Which of the following statements is/are true?

I. Work day means 24 consecutive-hour period which commences from the time the
employee regularly starts to work.
II. Work day means that it is based on the ordinary calendar day from 12:00 midnight to
12:00 midnight unless the employee starts to work at this unusual hour.
III. Work week is a week consisting of 120 consecutive hours or 5 consecutive 24-hour work
days beginning at the same hour and on the same calendar day each calendar week.
a) Only statement I
b) Only statement II
c) Only statement III
d) None of the above
e) All of the statements are true
RATIONALE: Work day means 24 consecutive-hour period which commences from the
time the employee regularly starts to work. It does not necessarily mean that it based on the
ordinary calendar day from 12:00 midnight to 12:00 midnight unless the employee starts to
work at this unusual hour. Work week is a week consisting of 168 consecutive hours or 7
consecutive 24 hour work days beginning at the same hour and on the same calendar day
each calendar week.
52. What is the reckoning point on how a work day or work week is?
a) from the time the employee regularly starts to work on a work day or from the time
and day the employee regularly starts to work on a work week
b) strictly from Monday to Friday/Saturday
c) from the time and day the employee regularly starts to work on a work week only
d) from the time the employee regularly starts to work on a work day only
e) none of the above
RATIONALE: The reckoning point on how a work day or work week is from the time the
employee regularly starts to work on a work day or from the time and day the employee
regularly starts to work on a work week.
53. Which of the following is not a qualification of an apprentice under the Rules to
Implement the Labor Code.?
a. at least 15 years of age, provided those who are at least 15 years of age but less than
18 years old may be eligible for apprenticeship only in hazardous occupation.
b. 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
d. possess the ability to comprehend and follow oral and written instructions.
RATIONALE: Section 11, Rule VI, Book II, OMNIBUS RULES IMPLEMENTING THE
LABOR CODE SECTION 11. Qualifications of apprentices. — To qualify as 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 non-hazardous occupations;
(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.
54. It refers to any practical training on learnable occupation which may or may not be
supplemented by related theoretical instructions for a period not exceeding three (3) months.
a. Learners
b. Apprenticeship agreement
c. Apprentice
d. Learnership
RATIONALE: TESDA CIRCULARS 2020, Number 120 Series of 2020,Revised Guidelines

in the Implementation of Apprenticeship and Learnership Programs, “Learnership – refers to
any practical training on learnable occupation which may or may not be supplemented by
related theoretical instructions for a period not exceeding three (3) months".
55. Which of the following is not an act of discrimination against PWDs?

a. Limiting, segregating or classifying a job applicant with disability in such a manner that
adversely affects his work opportunities
b. Providing more compensation, such as salary, wage or other forms of remuneration
and fringe benefits, to a qualified employee with disability, by reason of his disability,
than the amount to which a non-disabled person performing the same work is entitled;
c. Re-assigning or transferring an employee with disability to a job or position he cannot
perform by reason of his disability;
d. Excluding PWDs from membership in labor unions or similar organizations
RATIONALE: No entity, whether public or private, shall discriminate against a qualified

PWD by reason of disability in regard to job application procedures, the hiring, promotion, or
discharge of employees, employee compensation, job training, and other terms, conditions
and privileges of employment. The following constitute acts of discrimination: (d) Providing
less compensation, such as salary, wage or other forms of remuneration and fringe benefits,
to a qualified employee with disability, by reason of his disability, than the amount to which a
non-disabled person performing the same work is entitled;
56. The following statements are true except:

a. Wage distortion is a situation where there’s gradual increase prescribed wage rates
results in the elimination or severe contraction of intentional quantitative differences in
wage or salary rates.(ANSWER)
b. Wage distortion refers to the disappearance or virtual disappearance of pay differentials
between lower and higher positions in an enterprise because of compliance with a wage
order.
c. There is a wage distortion when a significant change occurs at the lowest level of positions
in terms of basic wage without a corresponding change in the other level in the hierarchy of
positions.
d. None of the above.
RATIONALE: Wage distortion as defined, is a situation where an increase prescribed wage

rates results in the elimination or severe contraction of intentional quantitative differences in
wage or salary rates between and among employee groups in an establishment as to
effectively obliterate the distinctions embodied in such wage structure based on skills, length
of service, or other logical bases of differentiation.
57. It refers to lowest basic wage rate fixed by law that an employer can pay his workers.
a. Minimum wage
b. Regional minimum wage
c. Statutory minimum wage(ANSWER)
d. Allowance
RATIONALE: The term statutory minimum wage refers to the lowest basic wage rate fixed
by law that an employer can pay his workers.
58. Which of the choices are not true?

a. The term wage rates include cost-of-living allowances as fixed by the RTWBs, but
excludes other wage-related benefits such as overtime pay, bonuses, night shift differential
pay, holiday pay, premium pay, 13th month pay, leave benefits, and others.
b. The minimum wage rates for agricultural and non-agricultural employees and workers in
each and every region of the country shall be those prescribed by the Regional Tripartite
Wages and Productivity Boards (RTWBs).
c. The issue of whether or not a wage distortion exists is a question of fact that is within the
distinction of the quasi-judicial tribunals.
d. One of the elements of wage distortion is publication of notice of petition/public

hearing.(ANSWER)
RATIONALE: The four (4) elements of wage distortion are as follows:

(1) An existing hierarchy of positions with corresponding salary rates;
(2) A significant change in the salary rate of a lower pay class without a concomitant increase
in the salary rate of a higher one;
(3) The elimination of the distinction between the two levels; and
(4) The existence of the distortion in the same region of the country.
59. “The Solo Parent’s Welfare Act of 2000” which allows SOLO PARENT to work on
Flexible Schedule.
a. RA 8972
b. RA 9872
c. RA 8927
d. RA 9827
60. In “The Solo Parent’s Welfare Act of 2000” Employer may request exemption from
above requirements from DOLE for certain___________________grounds.
a. Meritorious
b. Gratuitous
c. Exemplary
d. Justifiable
61. Deductions from the wages of the employees may be made by the employer except when:
a. Deductions made pursuant to a judgment against the worker under circumstances where the
wages may be the subject of attachment or execution but only for debts incurred for food,
clothing, shelter and medical attendance.
b. Withholding tax mandated under the National Internal Revenue Code.
c. Withholding of wages because of employee’s debt to a private individual which is
already due.
d. When deductions from wages are ordered by the court.
61. True or False:
Statement 1: Employers may deduct agency fee from the wages of the non-union members
who accept the benefits under the CBA negotiated by the bargaining union. This form of
deduction does not require the written authorization of the non-union member.
Statement 2: Employers may deduct from the wages of the worker if under circumstances
where the wages may be the subject of attachment or execution but only for debts incurred
for food, clothing, shelter and medical attendance.
a. True, True
b. True, False
c. False, False
d. False, True
62. Employers are allowed to deduct from the wages of the employees when:
a. When the deductions are authorized by law, (e.g., SSS, Pag-IBIG).
b. Withholding of wages because of employee’s debt to the employer which is already due;
c. Deductions made for agency fee from non-union members who accept the benefits under
the CBA negotiated by the bargaining union.
d. All of the above
62. On rest days based on religious grounds, what is the period shall an employer give to the
employees?
A. Twenty- four consecutive hours for each period of seven days
B. Eight hours consecutive hours for each period of seven days
C. Twenty- four hours within the seven days
D. Eight hours within the seven days
RATIONALE: Every employer shall give his employees a rest period of not less than twenty-
four consecutive hours for each period of seven days. The employer shall determine and
schedule the weekly rest day of his employees, subject to collective bargaining agreement
and to such rules and regulations as the Secretary of Labor may prescribe; Provided,
however, That the preference of an employee as to his weekly rest day shall be respected by
the employer if the same is based on religious grounds. Th employee should make known his
preference to the employer in writing at least 7 days before the desired effectivity of the
initial rest day so preferred.
63. Statement 1: Holiday pay is a day’s pay given by law to an employee even if he does not
work on a regular holiday, provided that he is present or is in leave with pay on the work day
immediately preceding the holiday.
Statement 2: An employee may not be paid for both holidays if he absents himself from work
on the day immediately preceding the first holiday, unless he works on the first holiday, in
which case, he is entitled to his holiday pay on the second holiday.
A. Only Statement 1 is correct.

B. Only Statement 2 is correct.
C. Both Statement is correct.
D. Both Statement is false.
RATIONALE: Statement 1: *Holiday pay is a day’s pay given by law to an employee even if
he does not work on a regular holiday, provided that he is present or is in leave with pay on
the work day immediately preceding the holiday. The purpose is to prevent diminution of the
monthly income of workers on account of work interruptions declared by the State. (In other
words, although the worker is forced by law to take a rest, he is not deprived of what he
should earn) Statement 2: The rule in case of successive regular holidays is as follows: An
employee may not be paid for both holidays if he absents himself from work on the day
immediately preceding the first holiday, unless he works on the first holiday, in which case,
he is entitled to his holiday pay on the second holiday. Holidays falling on the same day
DOLE Explanatory Bulletin on Workers’ Entitlement to Holiday Pay on 9 April 1993, Araw
ng Kagitingan and Good Friday enunciated the following rule in case of two regular holidays
falling on the same day (e.g., Araw ng Kagitingan and Good Friday falling in 1993, 2004 and
2020): 1. If employee did not work: 200% of basic pay; 2. If employee worked: 300% of
basic pay.
64. All statements are true, except.

a. Unsupervised workers are those workers whose time and performance are unsupervised by
the employer.
b. In supervision, the workers are supervised over the manner as how to work is to be
performed.
b. Supervised workers are workers whose time and performance are supervised by the
employer;
c. In unsupervised workers, the employer's control is over the time of work.
65. All statements are false, except.

a. In case of payment of wages by results involving work which cannot be finished in two (2)
weeks, payment shall be made at intervals not exceeding sixteen (20) days in proportion to
the amount of work completed.
b. No employer shall make payment thrice a month.
b. Wages shall be paid not less than once every two (2) weeks or twice a month at intervals
not exceeding sixteen (16) days.
c. When payment cannot be made with such regularity due to force majeure or circumstances
beyond the employer’s control. The employer shall pay the wages immediately before such
force majeure or circumstances have ceased.
The following are considered as special workers, except:

a. learners
b. homeworkers
c. apprentices
d. handicapped
RATIONALE: The three groups considered as “special workers” are apprentices, learners,
and handicapped workers
67. A disparity in wages between employees holding similar positions but in different regions
does not constitute wage distortion as contemplated by law. This doctrine was discussed in:
a. Linton Commercial Co., Inc. vs. Hellera

b. Bisig Manggagawa sa Tryco vs. NLRC
c. Prubankers Association vs. Prudential Bank And Trust Company
d. Arica vs. NLRC
RATIONALE: In Prubankers Association vs. Prudential Bank And Trust Company, the
Court ruled that there is NO wage disorder. Wage distortion presupposes an increase in the
compensation of the lower ranks in an office hierarchy without a corresponding raise for
higher-tiered employees in the same region of the country, resulting in the elimination or the
severe diminution of the distinction between the two groups. Such distortion does not arise
when a wage order gives employees in one branch of a bank higher compensation than that
given to their counterparts in other regions occupying the same pay scale, who are not
covered by said wage order. In short, the implementation of wage orders in one region but not
in others does not in itself necessarily result in wage distortion.
68. Which of these statements is NOT entirely correct?
STATEMENT I: The three groups considered as “special workers” are apprentices, learners,
and handicapped workers.
STATEMENT II: The “special group of workers” refers to women, minors, househelpers,
and homeworkers.
a. Statement I
b. Statement II
c. None of the above
d. All of the above
RATIONALE: The three groups considered as “special workers” are apprentices, learners,
and handicapped workers while the “special group of workers” refers to women, minors,
househelpers, and homeworkers. Being “special workers” and “special group of employees”,
they are governed by rules separate and distinct from those applicable to all other workers.
69.Which of the following is not a criteria to ascertain the existence of a binding and
enforceable company practice?
a. The act of employer has been done for a considerable period of time
b. The act should be done consistently and intentionally
c. The act should not be a product of erroneous interpretation or construction of a doubtful or
ambiguous question of law or provisions of the CBA;
d. All of the above
RATIONALE:
Criteria to ascertain the existence of a binding and enforceable company practice:
The act of employer has been done for a considerable period of time;
The act should be done consistently and intentionally;
The act should not be a product of erroneous interpretation or construction of a doubtful or
ambiguous question of law or provisions of the CBA;
Existence of a company practice should be duly proved by evidence; and
The grant of benefit should not be by reason of legal or contractual obligation but by reason
of liberality.
70. What is “Done for a considerable period of time” meaning?

a. To be considered a company practice, the giving of the benefits should have been
done over a long period of time, and must be shown to have been consistent and
deliberate.
b. To be considered a company practice, the giving of the benefits should have been done
over at least 2 years period of time, and must be shown to have been consistent and
deliberate.
c. To be considered a company practice, the giving of the benefits should have been done
over 6 years period of time, and may not be shown to have been consistent and deliberate.
d. To be considered a company practice, the giving of the benefits should have been done
over a long period of time, and may not be shown to have been consistent and deliberate.
RATIONALE:
To be considered a company practice, the giving of the benefits should have been done over a
long period of time, and must be shown to have been consistent and deliberate.
In the following cases, the act of the employer has been declared as having ripened to a
company practice for having been done for a considerable period of time, thus can no longer
be withdrawn:
(1) In Davao Fruits Corp. v. ALU, involving the employer’s act for six (6) years of freely and
continuously including in the computation of the 13th month pay, certain items that were
expressly excluded by law.
(2) In Sevilla Trading Co. v. Semana, where petitioner kept the practice of including non-
basic benefits such as paid leaves for unused sick leave and vacation leave in the computation
of the employee’s 13thmonth pay for at least two (2) years.
(3) In Central Azucarera v. Central Azucarera, where petitioner, for thirty (30) years, granted
its workers the mandatory 13th month pa computed in accordance with the following
formula: Total Basic Annual Salary divided by twelve (12). Included in petitioner’s
computation of the Total Basic Annual Salary were the following: basic monthly salary; first
eight (8) hours overtime pay on Sunday and legal/special holiday; night premium pay; and
vacation and sick leaves for each year.
71. Which of the following statement is NOT an element of permissible contracting?
STATEMENT I. The contractor or subcontractor carries on a distinct and independent

business and undertakes to perform a job, work or service on its own account under its own
responsibility, according to its own manner and method, and free from the control and
directions of the principal in all matters connected with the performance of the work except as
to the results thereof;
STATEMENT II. The contractor or subcontractor has substantial capital or investment; and
STATEMENT III. The agreement between the principal and the contractor or subcontractor
assures the contractual employees’ entitlement to all labor and occupational safety and health
standards, free exercise of right to self-organization, security of tenure and social and welfare
benefits.
a. Statement I and II only

b. Statement III only
c. All of the above
RATIONALE: Elements of Permissible contracting
Contracting or subcontracting shall be permissible if the following circumstances concur:
1. The contractor or subcontractor carries on a distinct and independent business and

undertakes to perform a job, work or service on its own account under its own
directions of the principal in all matters connected with the performance of the work
except as to the results thereof;
2. The contractor or subcontractor has substantial capital or investment; and
3. The agreement between the principal and the contractor or subcontractor assures the
contractual employees’ entitlement to all labor and occupational safety and health
standards, free exercise of right to self-organization, security of tenure and social and
welfare benefits.
72. What is substantial capital or investment?
a. refers to capital stocks and subscribed capitalization in the case of corporations, tools,
equipment, implements, machineries and work premises, actually and directly used by the
contractor or subcontractor in the performance or completion of the job, work or service
contracted out.
b. The contractor or subcontractor carries on a distinct and independent business and

undertakes to perform the job, work or service on its own account and under its own
directions of the principal in all matters connected with the performance of the work except
as to the results thereof;
c. It is the agreement between the principal and the contractor or subcontractor assures the
contractual employees' entitlement to all labor and occupational safety and health standards,
free exercise of the right to self-organization, security of tenure, and social and welfare
benefits.
d. an asset acquired or invested in to build wealth and save money from the hard
earned income or appreciation
RATIONALE: 3 tests to determine existence of legitimate contracting. The contractor or

subcontractor has substantial capital or investment: “Substantial capital or investment” refers
to capital stocks and subscribed capitalization in the case of corporations, tools, equipment,
implements, machineries and work premises, actually and directly used by the contractor or
subcontractor in the performance or completion of the job, work or service contracted out.;
73.In this case it was held the petitioners’ employees are entitled to “outpatient medicine
reimbursements” distinct and separate from the “medicine allowances” granted in the CBA
because there is an established company practice of reimbursement of outpatient services,
including medicine reimbursement, despite the absence of a provision in the group
hospitalization insurance plan regarding outpatient benefits.
A. Standard Chartered Bank v. SCBEU

B. Sevilla Trading Co. v. Semana
C. Central Azucarera v. Central Azucarera
D. Davao Fruits Corp. v. ALU
RATIONALE:
In Standard Chartered Bank v. SCBEU, it was held the petitioners employees are entitled to
“outpatient medicine reimbursements” distinct and separate from the “medicine allowances”
granted in the CBA because there is an established company practice of reimbursement of

outpatient services, including medicine reimbursement, despite the absence of a provision in
the group hospitalization insurance plan regarding outpatient benefits.
74. It is an amount granted and paid ex gratia to the employee. Its payment constitutes an act
of enlightened generosity and self-interest on the part of the employer rather than as a
demandable or enforceable obligation.
A. Bonus
B. Basic salary
C.13TH month pay
D. Basic wage
RATIONALE:
Bonus, as a general rule, is an amount granted and paid ex gratia to the employee. Its
payment constitutes an act of enlightened generosity and self-interest on the part of the
employer rather than as a demandable or enforceable obligation.
75. One who is vested with the powers or prerogatives to lay down and execute management
policies and/or to hire, transfer, suspend, lay-off, recall, discharge, assign or discipline
employees.
A.President/CEO
B.Supervisor
C.Managerial Employee
D.Hr Officer
RATIONALE:
Article 212 (M)
-"Managerial employee"is one who is vested with the powers or prerogatives to lay down and
execute management policies and/or to hire, transfer, suspend, lay-off, recall, discharge,
assign or discipline employees.
-Used only for purposes of Book V (forming, joining and assisting of unions, certification
election and collective bargaining)
-Supervisors are not manager employees under Book V
76. What is the maximum working hours per day?
A. 12
B .8
C. 10
D.15
RATIONALE:
Maximum working hours per day-12 hours otherwise OT applies.
77. What is Republic Act No. 11360 ?
A.An Act Providing that Service Charges Collected by Hotels, Restaurants and other
Similar Establishments be Distributed in Full to All Covered Employees.
B.The Solo Parent’s Welfare Act of 2000” allows SOLO PARENT to work on Flexible
Schedule.
C.Migrant Workers and Overseas Filipinos Act of 1995
D.An Act Providing Charge collected by Hotel and other similar establishments be
distributed in single employees.
RATIONALE:
The enactment of Republic Act No. 11360 — or “An Act Providing that Service Charges
Collected by Hotels, Restaurants and other Similar Establishments be Distributed in Full to
All Covered Employees” — amends Article 96 of the Labor Code of the Philippines. It
provides that rank-and-file employees of restaurants, hotels and similar establishments are
now entitled to 100% of the service charges collected from customers.
78. The employment of apprentices is allowed only upon the concurrence of two conditions
namely:
Select the true statements?
i.The employer is engaged in a highly technical industry.

ii. The apprentice is employed in an apprenticiable occupation approved by the Secretary of
Labor.
iii. ) i and ii are true
iv) None of the above
v. Only (i )is true
RATIONALE:
Article 60 ,Labor Code as amended by E.O. 111,December 24,1986.
The employment of apprentices is allowed only upon the concurrence of two conditions
namely: 1. The employer is engaged in a highly technical industry ;and 2) the apprentice is
employed in an apprenticiable occupation approved by the Secretary of Labor. Article 60
,Labor Code as a,ended bu E.O. 111,December 24,1986.
79. Who is the approving authority on the apprenticiable occupations under Article 60 of the
Labor Code?
a)Secretary of Trade and Industry

b) Secretary of Labor and Employment
c) Secretary of Education
d) Tesda Director
RATIONALE:
employed in an appre Article 60 ,Labor Code as amended by E.O. 111,December 24,1986.
employed in an apprenticiable occupation approved by the Secretary of Labor. Article 60
,Labor Code as amended by E.O. 111,December 24,1986.
80. Which is a true statement?

a) The law defines “highly technical “industries, but Section 2 of the Rules Implementing
E.O. No.111 states that “ highly technical industries”means
trade,business,enterprises,industry,or other activity which is engaged in the application of
advanced technology.”
b) The law does not define highly technical “industries, but Section 2 of the Rules
Implementing E.O. No.111 states that “ highly technical industries” means trade,
business, enterprises, industry, or other activity which is engaged in the application of
c) The Law has not definitely defined “highly technical “industries, but Section 2 of the Rules
Implementing E.O. No.111 states that “ highly technical industries”means
trade,business,enterprises,industry,or other activity which is engaged in the application of
RATIONALE:
The law does not define highly technical “industries, but Section 2 of the Rules Implementing
E.O. No.111 states that “ highly technical industries” means trade, business, enterprises,
industry, or other activity which is engaged in the application of advanced technology.”
81. The period of apprenticeship shall not exceed
a) 3 months
b) 6 months.
c) 9 months
d) 12 months
RATIONALE:
Contents of apprenticeship agreements. - Apprenticeship agreements, including the wage

rates of apprentices, shall conform to the rules issued by the Secretary of Labor and
Employment. The period of apprenticeship shall not exceed six months.
Book Two : Labor Code of the Philippines : Presidential Decree No. 442, as Amended
82. Statement I: Brown-outs of short duration but not exceeding 20 minutes shall be treated
as worked or compensable hours whether used productively by the employees or not.
Statement II: Industrial enterprises with one or two work shifts may adopt any of the
workshifts prescribed for enterprises with 3 workshifts to prevent serious loss or damage to
materials, machineries or equipment that may result in case of power interruptions.
a. Statement I is TRUE; Statement II is TRUE

b. Statement I is FALSE; Statement II is TRUE
c. Statement I is FALSE; Statement II is FALSE
d. Statement I is TRUE; Statement II is FALSE
RATIONALE:
The Policy Instructions No. 36 dated May 22,1978 was issued by the Undersecretary of
Labor and Employment to clarify the effects of power interruptions or brown-outs on
productive man-hours.
1. Brown-outs of short duration but not exceeding 20 minutes shall be treated as worked or
compensable hours whether used productively by the employees or not.
2. Brown-outs running for more than 20 minutes may not be treated as hours worked
provided any of the following conditions are present: a) the employees can leave their
workplace or go elsewhere, whether within or without the work premises; or b) the
employees can use the time effectively for their own interest.
3. In each case, the employer may extend the working hours of his employees outside the
regular schedules to compensate for the loss of productive man-hours without being liable for
overtime pay.
4. Industrial enterprises with one or two work shifts may adopt any of the workshifts
prescribed for enterprises with 3 workshifts to prevent serious loss or damage to materials,
machineries or equipment that may result in case of power interruptions.
5. The days when work was not required and no work could be done because of shutdown
due to electrical power interruptions, lack of raw materials and repair of machines, are not
deemed hours worked.
83. Which of the statements define permissible job contracting except:
A. no employer-employee relationship exists between the employees of the job contractor

and the principal employer (indirect employer);
B. the principal employer is considered the “direct employer” of the employees

C. the joint and several obligation of the principal employer and the legitimate job contractor
is only for a limited purpose, that is, to ensure that the employees are paid their wages (the
principal employer is not responsible for any claim made by the employees)
D. the legitimate job contractor provides specific services
RATIONALE: Subcontracting (Legitimate Job Contracting) vs. Labor-Only

Contracting
The principal distinctions between legitimate, permissible job contracting, on the one hand,
and the prohibited labor-only contracting, on the other.
1. In the former, no employer-employee relationship exists between the employees of the job
contractor and the principal employer (indirect employer); while in the latter, an employer-
employee relationship is created by law between the principal employer and the employees
of the labor-only contractor.
2. In the former, the principal employer is considered only an “indirect employer”, as this
term is understood under Article 107 of the Labor Code; while in the latter, the principal
employer is considered the “direct employer” of the employees in accordance with the last
paragraph of Article 106 of the Labor Code.
3. In the former, the joint and several obligation of the principal employer and the legitimate
job contractor is only for a limited purpose, that is, to ensure that the employees are paid
their wages. Other than this obligation of paying the wages, the principal employer is not
responsible for any claim made by the employees; while in the latter, the principal
employer becomes solidarily liable with the labor-only contractor for all the rightful claims
of the employees.
4. In the former, the legitimate job contractor provides specific services; while in the latter,
the labor-only contractor provides only manpower.
5. In the former, the legitimate job contractor undertakes to perform a specific job for the
principal employer; while in the latter, the labor-only contractor merely provides the
personnel to work for the principal employer.
84. For holidays falling on the same day, for example Araw ng Kagitingan and Good Friday
falling on Friday, what percentage of basic salary is the employee entitled to?
a. If employee did not work: 100% of basic pay; If employee worked: 200% of basic pay
b. If employee did not work: 100% of basic pay; If employee worked: 250% of basic pay
c. If employee did not work: 200% of basic pay; If employee worked: 300% of basic pay
d. If employee did not work: 200% of basic pay; If employee worked: 400% of basic pay
RATIONALE:
DOLE Explanatory Bulletin on Workers’ Entitlement to Holiday Pay on 9 April 1993, Araw
ng Kagitingan and Good Friday enunciated the following rule in case of two regular holidays
falling on the same day (e.g., Araw ng Kagitingan and Good Friday falling in 1993, 2004 and
2020):
1. If employee did not work: 200% of basic pay;

2. If employee worked: 300% of basic pay.
85. Statement 1 : When diminution of benefits is done to correct an error.

Statement 2: If the benefit being claimed is a contingent or conditional benefit, whose
demandability depends on a certain pre-conditions.
A.Both are true.

B.Both are false
C.Only statement 1 is true
D.Only statement 2 is false
RATIONALE: If the error is not corrected in a reasonable time, it ripens into a company
policy and employees can demand it as a matter of right.
86. Constructive dismissal is an involuntary resignation resorted to when continued

employment becomes impossible, unreasonable, or unlikely, due to any of the following:
Statement 1 : demotion in rank or a diminution in pay.
Statement 2: when a clear discrimination, insensibility, or disdain by an employer becomes
unbearable to an employee.
A.Both are true.

B.Both are false.
C.Only statement 1 is true
D.Only statement 2 is false
RATIONALE: Constructive dismissal is illegal and usually occurs when an employee resigns
as a result of unfavorable work conditions instigated by the employer. It is typically resorted
to by employers who do not want to undergo the procedural due process involved in legally
terminating an employee.
87. The following are the exceptions in directly paying the wage on an employee except:
A) Where the employer is authorized in writing by the employee to pay his wages to a
member of his family;
B) Where payment to another person of any part of the employee’s wages is authorized by
the existing law, including payments for the insurance premiums of the employee and union
dues where the right to check-off has been recognized by the employer in accordance with a
collective agreement or authorized in writing by the individual employees concerned; or
C) In case of death of the employee, in which case, the same shall be made to his heirs
without the necessity of intestate proceedings.
D) In case of permanent disability of an employee and he can not present himself to his
employer.
RATIONALE:
Permanent disability is not included in the list provided for by law.
88. How many parties are there in a contracting arrangement

A) 1
B) 2
C) 3
D) 4
RATIONALE:
A contracting arrangement is always a trilateral relationship.
89. Who are the parties in a Contracting arrangement?

A) Principal, Contractor, and Contractual employee.
B) Contractor or Subcontractor, Principal, and Contractual employee
C) Contractual employee, Subcontractor, and principal
D) Contractor, Subcontractor, and principal
90. The following are exceptions to the general rule on place of payment, which one is not?
a. When payment cannot be effected at or near the place of work by reason of the
deterioration of peace and order conditions, or by reason of actual or impending emergencies
caused by fire, flood, epidemic or other calamity rendering payment thereat impossible;
b. When the employer does not provide free transportation to the employees back and
forth;
c. Under any other analogous circumstances; Provided, That the time spent by the employees
in collecting their wages shall be considered as compensable hours worked.
d. No employer shall pay his employees in any bar, night or day club, drinking establishment,
massage clinic, dance hall, or other similar places or in places where games are played with
stakes of money or things representing money except in the case of persons employed in said
places.
RATIONALE: RULE VIII Payment of Wages SECTION 4. Place of payment. (b) When the
employer provides free transportation to the employees back and forth.
91. Payment through banks is allowed in business and other entities with 25 or more
employees. Provided the following conditions are met, except:
a. The ATM system of payment is with written consent of the employees concerned;
b. The employees are given reasonable time to withdraw their wages from the bank facility
which time, if done during working hours, shall be considered compensable hours worked;
c. There is a bank or ATM facility within a radius of one (1) kilometer to the place of work;
RATIONALE: NCC Art. 1705. The laborer's wages shall be paid in legal currency.
SECTION 2. Payment by check. — Payment of wages by bank checks, postal checks or
money orders is allowed where such manner of wage payment is customary on the date of the
effectivity of the Code, where it is so stipulated in a collective agreement, or where all of the
following conditions are met:
(a) There is a bank or other facility for encashment within a radius of one (1) kilometer from
the workplace;
(b) The employer or any of his agents or representatives does not receive any pecuniary
benefit directly or indirectly from the arrangement;
(c) The employees are given reasonable time during banking hours to withdraw their wages
from the bank which time shall be considered as compensable hours worked if done during
working hours; and
(d) The payment by check is with the written consent of the employees concerned if there is
no collective agreement authorizing the payment of wages by bank checks.
Payment of wages through ATM - Conditions
92. The following are exceptions to the general rule on place of payment, which one is not?
a. When payment cannot be effected at or near the place of work by reason of the
deterioration of peace and order conditions, or by reason of actual or impending emergencies
caused by fire, flood, epidemic or other calamity rendering payment thereat impossible;
b. When the employer does not provide free transportation to the employees back and
forth;
c. Under any other analogous circumstances; Provided, That the time spent by the employees
in collecting their wages shall be considered as compensable hours worked.
d. No employer shall pay his employees in any bar, night or day club, drinking establishment,
massage clinic, dance hall, or other similar places or in places where games are played with
stakes of money or things representing money except in the case of persons employed in said
places.
RATIONALE: SECTION 4. Place of payment. (b) When the employer provides free
transportation to the employees back and forth.
93. Payment through banks is allowed in business and other entities with 25 or more
employees. Provided the following conditions are met, except:
a. The ATM system of payment is with written consent of the employees concerned;
b. The employees are given reasonable time to withdraw their wages from the bank facility
which time, if done during working hours, shall be considered compensable hours worked;
c. There is a bank or ATM facility within a radius of one (1) kilometer to the place of work;
RATIONALE: NCC Art. 1705. The laborer's wages shall be paid in legal currency.
SECTION 2. Payment by check. — Payment of wages by bank checks, postal checks or
money orders is allowed where such manner of wage payment is customary on the date of the
effectivity of the Code, where it is so stipulated in a collective agreement, or where all of the
following conditions are met:
(a) There is a bank or other facility for encashment within a radius of one (1) kilometer from
the workplace;
(b) The employer or any of his agents or representatives does not receive any pecuniary
benefit directly or indirectly from the arrangement;
(c) The employees are given reasonable time during banking hours to withdraw their wages
from the bank which time shall be considered as compensable hours worked if done during
working hours; and
(d) The payment by check is with the written consent of the employees concerned if there is
no collective agreement authorizing the payment of wages by bank checks.
94. Payment of wages through ATM - Conditions

Statement I. There shall be no additional expenses and no diminution of benefits and
privileges as a result of the ATM system of payment.
Statement II. The employer shall not assume responsibility in case the wage protection
provisions of law and regulations are not complied with under the arrangement.
a. Both true
b. False, True
c. True, False
d. Both false
RATIONALE: Explanatory Bulletin issued by DOLE Secretary Leonardo Quisumbing dated

November 25, 1996 on payment of wages through ATM - conditions
There shall be no additional expenses and no diminution of benefits and privileges as a result
of the ATM system of payment;
The employer shall assume responsibility in case the wage protection provisions of law and
regulations are not complied with under the arrangement.
95. The provisions for working conditions and rest periods prescribed in Book III (Conditions
of Employment) of the Labor Code (P.D. No. 442) only apply to:
A. Government employees
B. Managerial employees
C. Domestic helpers
D. Employees in all establishments, whether for profit or not
RATIONALE:
Article 82 of the Labor Code (P.D. No. 442):
Article 82. Coverage. The provisions of this Title shall apply to employees in all
establishments and undertakings whether for profit or not, but not to government employees,
managerial employees, field personnel, members of the family of the employer who are
dependent on him for support, domestic helpers, persons in the personal service of another,
and workers who are paid by results as determined by the Secretary of Labor in appropriate
regulations.
As used herein, "managerial employees" refer to those whose primary duty consists of the
management of the establishment in which they are employed or of a department or

subdivision thereof, and to other officers or members of the managerial staff.
"Field personnel" shall refer to non-agricultural employees who regularly perform their duties
away from the principal place of business or branch office of the employer and whose actual
hours of work in the field cannot be determined with reasonable certainty.
95. Which of the following statement is/ are true about service charges:
Statement 1. All service charges collected by hotels, restaurants, and similar establishments
shall be distributed completely and equally among the covered workers including managerial
employees.
Statement 2. All service charges collected by hotels, restaurants, and similar establishments
shall be distributed completely and equally among the covered workers excluding managerial
employees.
Statement 3. In the event that the minimum wage is increased by law or wage order, service
charges paid to the covered employees shall be considered in determining the employer’s
compliance with the increased minimum wage.
Statement 4. In the event that the minimum wage is increased by law or wage order, service
charges paid to the covered employees shall not be considered in determining the employer’s
compliance with the increased minimum wage.
A. Only Statement 1 is True

B. Only Statement 3 is True
C. Only Statements 1 and 3 are True.
D. Only Statements 2 and 4 are True
RATIONALE:
Republic Act No.11360 approved on August 7, 2019 amends Article 96 of the Labor Code as
follows:
Article 96. Service Charges. All service charges collected by hotels, restaurants, and similar
establishments shall be distributed completely and equally among the covered workers
excluding managerial employees.
In the event that the minimum wage is increased by law or wage order, service charges paid
to the covered employees shall not be considered in determining the employer’s compliance
with the increased minimum wage.
To facilitate resolution of any dispute between the management and the employees on the
distribution of service charges, a grievance mechanism shall be established. If no grievance
mechanism is established or if inadequate, the grievance shall be referred to the regional
office of the Department of Labor and Employment which has jurisdiction over workplace
for conciliation.
For purposes of this Article, managerial employees refer to any person vested with powers of
prerogatives to lay down and execute management policies or hire, transfer, suspend, lay-off,
recall, discharge, assign or discipline employees or to effectively recommend such
managerial actions.
96. With the enactment of Republic Act 11360 in 2019 which amends Article 96 of the Labor
Code, the management now therefore takes what percentage of the service charge of the
employees?
A. 15 %
B. 12 %
C. 10 %
D. 0%
RATIONALE:
The management is no longer entitled to a share in the service charge due to Republic Act
No.11360 approved on August 7, 2019 which amends Article 96 of the Labor Code.
97. All of these statements describes a Labor-only contracting except:
A. an employer-employee relationship is created by law between the principal employer and

the employees of the labor-only contractor
B. the principal employer is considered the “direct employer” of the employees
C. the principal employer becomes solidarily liable with the labor-only contractor for all the
rightful claims of the employees
D. the legitimate job contractor provides specific services
RATIONALE: Subcontracting (Legitimate Job Contracting) vs. Labor-Only

Contracting
The principal distinctions between legitimate, permissible job contracting, on the one hand,
and the prohibited labor-only contracting, on the other.
1. In the former, no employer-employee relationship exists between the employees of

the job contractor and the principal employer (indirect employer); while in the latter, an
employer-employee relationship is created by law between the principal employer and
the employees of the labor-only contractor.
2. In the former, the principal employer is considered only an “indirect employer”, as
this term is understood under Article 107 of the Labor Code; while in the latter, the
principal employer is considered the “direct employer” of the employees in accordance
with the last paragraph of Article 106 of the Labor Code.
3. In the former, the joint and several obligation of the principal employer and the
legitimate job contractor is only for a limited purpose, that is, to ensure that the
employees are paid their wages. Other than this obligation of paying the wages, the
principal employer is not responsible for any claim made by the employees; while in the
latter, the principal employer becomes solidarily liable with the labor-only contractor for
all the rightful claims of the employees.
4. In the former, the legitimate job contractor provides specific services; while in the
latter, the labor-only contractor provides only manpower.
5. In the former, the legitimate job contractor undertakes to perform a specific job for
the principal employer; while in the latter, the labor-only contractor merely provides the
personnel to work for the principal employer.
99.. A compressed workweek policy to be approved includes the following conditions:
I. The effectivity of the proposed working time arrangement should be of TEMPORARY

duration as determined by the Labor Arbiter
II. The work of the employees DOES NOT involve STRENUOUS PHYSICAL EXERTION
and they are provided with adequate rest periods or coffee breaks in the morning and
afternoon
III. There is no diminution in the take-home pay and fringe benefits of the employees
IV. Value of benefits that will accrue to the Employee under proposed work schedule is
MORE THAN or, at least, COMMENSURATE with, or equal to, the one-hour overtime pay
that is due them during weekdays based on the Employees quantification
a) Only statements I, II, and III are true
b) Only statements I, II, and IV are true
c) Only statements II, III, and IV are true
d) All statements are true
e) All statements are false
RATIONALE: The effectivity of the proposed working time arrangement should be of

TEMPORARY duration as determined by the Secretary of Labor.
100. Fill in the blanks. The agreement between the principal and the contractor or
subcontractor assure the contractual employees’ entitlement to all _______ and
______________ and health standards, free exercise of the right to self-organization, security
of tenure, and social and welfare benefits.
a) Salary, Occupational Safety

b) Labor, Salary
c) Benefits, Salary
d) Labor, Occupational Safety
RATIONALE: 3 tests to determine existence of legitimate contracting. The agreement

between the principal and the contractor or subcontractor assures the contractual employees'
entitlement to all labor and occupational safety and health standards, free exercise of the right
to self-organization, security of tenure, and social and welfare benefits.
.
1 to 3 by Perlin Ba-awa (JD 2 SP-A)
1. In what case determine the Two tiered- test as a framework of analysis which would
take into consideration the totality of circumstances surrounding the true nature of the
relationship between the parties and 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 of the activity or relationship economic reality test. a.
Francisco v. Court of Appeal
b. Francisco v. NLRC c .Antonio
v. Skycable Corporation d. None
of the above
Rationale:
Francisco vs. NLRC(G.R No.170087, August 31, 2006)
This two-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.
This is especially appropriate in a case where there is no written agreement or terms of
reference to base the relationship on and there exists a complexity in the relationship based on
the various positions and responsibilities given to the worker over the period of the latter’s
employment.
2. It gives a complete picture of the relationship between the parties. Aside from the
employer’s power to control the employee, and inquiry into the economic realities of the
relationship helps provide a comprehensive analysis of the true classification of the
individual, whether as employee, independent contractor, corporate officer or some
other capacity.
A. Economic Reality Test
b. Two-Tiered Test
c. Control Test
d. None of the Above Basis:
3. Under this test, 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. It calls for the determination of the nature of the relationship based on the
circumstances of the whole economic activity.
a.) Control Test
b.) Reality Test
c.) Economic Reality Test

d.) Two-Tiered Test Rationale:
Francisco Doctrine: The broader economic reality test calls for the determination of the
nature of the relationship based on the circumstances of the whole economic activity. Under
this test, 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. By analogy, the
benchmark of economic reality in analyzing possible employment relationships for purposes
of the Labor Code ought to be the economic dependence of the worker on his employer.
4 to 6 by Shielah Mae Baguec (JD 2 SP-A)
4.
STATEMENT I.
The primary standard that determines regular employment is the reasonable connection
between the particular activity performed by the employee and the usual business or trade of
the employer.
STATEMENT II.
Regular employment is also called a permanent employment.
STATEMENT III.
A casual arrangement is also a regular employment when the casual employee’s
engagement has lasted for at least one year, provided, however, that such service is
continuous.
Which of the following statements is/are correct?

A. I only
B. I and II only
C. II and III only
D. I, II, and III
E. None is correct.
CORRECT ANSWER: B. I and II only

BASIS / RATIONALE
See Article 280, Labor Code.
Regular or Permanent Employment is when an employee performs activities that are

necessary or desirable to the business/trade of the employer. Regular employees enjoy the
benefit of tenure and cannot be terminated for causes other than those provided by law and only
after due process.
The primary standard that determines regular employment is the reasonable connection
between the particular activity performed by the employee and the usual business or trade of
the employer; the emphasis is on the necessity or desirability of the employee’s activity. Thus,
when the employee performs activities considered necessary and desirable to the overall
business scheme of the employer, the law regards the employee as regular.
In addition, the Labor Code also considers as regular employment a casual arrangement
when the casual employee’s engagement has lasted for at least one year, regardless of the
engagement’s continuity, i.e. whether such service is continuous or broken. The controlling test
in this arrangement is the length of time during which the employee is engaged. (See Universal
Robina v. Acibo, G.R. No. 186439, 15 January 2014)
5. _________ is when an employee is hired for a specific project and where the duration
of employment is defined by the scope of work and/or length of the project.
A. Seasonal employment
B. Regular employment
C. Specific employment
D. Project employment
E. None of the choices.
CORRECT ANSWER: D. Project employment

BASIS / RATIONALE
See Article 280, Labor Code.
Project employment contemplates an arrangement whereby “the employment has been
fixed for a specific project or undertaking whose completion or termination has been
determined at the time of the engagement of the employee.”
Since the employee’s services are coterminous with the project, the services of the
project employees are legally and automatically terminated upon the end or completion of the
project.
6. Probationary employment is mandatory.

A. TRUE. All companies in the Philippines require their new employees to undergo
probationary employment for a maximum of six (6) months to evaluate their skills and
performance and determine if they are able to meet the reasonable standards to become
permanent employees.
B. TRUE. The Labor Code of the Philippines under Article 281 mandates all private
companies to engage the services of new employees on a probationary basis for a period not
exceeding six (6) months before qualifying them as regular employees.
C. FALSE. Probationary employment only exists when the employee, upon his
engagement is made to undergo a trial period where the employee determines his fitness
to qualify for regular employment, based on reasonable standards made known to him at
the time of engagement. It is a common practice among companies in the Philippines;
however, it is not made mandatory by law.
D. FALSE. The Labor Code of the Philippines expressly prohibits probationary employment
as a practice for the reason that it is discriminatory against new employees.
CORRECT ANSWER: C. FALSE. Probationary employment only exists when the employee,
upon his engagement is made to undergo a trial period where the employee determines his
fitness to qualify for regular employment, based on reasonable standards made known to him
at the time of engagement. It is a common practice among companies in the Philippines;
however, it is not made mandatory by law.
BASIS / RATIONALE
Probationary employment is not mandatory, but the law provides rules for how it
should be practiced.
Probationary employment exists when the employee, upon his engagement is made to
undergo a trial period where the employee determines his fitness to qualify for regular
employment, based on reasonable standards made known to him at the time of engagement.
The employer shall make known to the employee the standards under which he will qualify as
a regular employee at the time of his engagement. Where no standards are made known to the
employee at that time, he shall be deemed a regular employee. (See Section 6(d), Implementing
Rules of Book VI, Rule VII-A of the Labor Code)
Generally, probationary employment shall not exceed six (6) months from the date the
employee started working. (See Article 281, Labor Code)
7 to 8 by Stephanie Bigay (JD 2 SP-A)
7. Generally, the probationary period of employment is limited to __________.

A. ) 2 months
B. ) 3 months
C. ) 4 months
D. ) 6 months
E. ) 8 months
Rationale:
Section 29, Rule VI, Book II, Rules to Implement the Labor Code
the probationary period should generally not exceed six (6) months which is "the authorized
apprenticeship period" unless a longer period is stipulated in the employment agreement.
8. An apprentice who is allowed to work beyond six (6) months is presumed
_______________.
A. ) a regular employee
B. ) entitled to the regular minimum wage
C. ) entitled to allowances
D. ) entitled to benefits due to a regular
E. ) None
F. ) All of the choices
Rationale:
Section 29, Rule VI, Book II, Rules to Implement the Labor Code
In the absence therefore of any agreement that the probationary period is longer than six (6)
months, an apprentice who is allowed to work beyond six (6) months is presumed to be a
regular employee and thus must be entitled to the regular minimum wage, allowances, and
benefits due to a regular employee.
9 to 10 by Nazrene Cimacio (JD 2 SP-A)
9. Which of the following statements is/are true with regard to substantive due
process in relation to dismissal of employees?
Statement 1: The dismissal must be for any of the (1) just causes provided under Article 282
of the Labor Code .
Statement 2 :The cause of dismissal can be the company rules and regulations promulgated
by the employer; or (2) authorized causes under Articles 283 and 284 thereof
Statement 3: The cause of dismissal is solely based on key performance indicators of the
employee that is not satisfactory for the past 6 months.
A. Statement 1 and 3 is correct
B. Statement 1 and 2 are correct
C. Only Statement 3 is correct
D. All statements are correct
Answer: B. Statement 1 and 2 are correct

Rationale: dismissal of employees requires the observance of the two-fold due process
requisites, namely:
1. Substantive aspect which means that the dismissal must be for any of the (1) just
causes provided under Article 282 of the Labor Code or the company rules and
regulations promulgated by the employer; or (2) authorized causes under Articles
283 and 284 thereof; and
2. Procedural aspect which means that the employee must be accorded due process,
the elements of which are notice and the opportunity to be heard and to defend
himself.
10. _______________protects the individual from the government and assures him
his rights in criminal, civil or administrative proceedings; while________
protects employees from being unjustly terminated without just cause after
notice and hearing. Put differently the Bill of Rights is not meant to be invoked
against acts of private individuals like employers. Private actions, no matter how
egregious, cannot violate the constitutional guarantees.
A. Criminal due process; Normal due process

B. Constitutional due process; Citizen due process
C. statutory due process ;Constitutional due process
D. Constitutional due process; statutory due process
Answer: Constitutional due process; statutory due process
Rationale: “Constitutional due process” protects the individual from the government and
assures him his rights in criminal, civil or administrative proceedings; while “statutory due
process” protects employees from being unjustly terminated without just cause after notice
and hearing. Put differently the Bill of Rights is not meant to be invoked against acts of
private individuals like employers. Private actions, no matter how egregious, cannot violate
the constitutional guarantees.
11 to 12 by Wagner Dionisio (JD 2 SP-A)
11. Abbott Laboratories Doctrine is also known as_______________

A. Contractual Due Process Doctrine
B. Wenphil Doctrine
C. Francisco Doctrine
D. Estrada Doctrine Rationale:
Abbott Laboratories Doctrine (2013): Contractual Due Process
Where there is an existing company policy enunciating the procedural due process
(Contractual Due Process) that must be observed in termination of an employment,
compliance alone with the statutory due process, would not suffice. Otherwise, the same
consequence as in Agabon will ensue, that is, the termination shall be legal but the employer
is liable to the payment of indemnity in the form of nominal damages amounting to Php
30,000.
12. Serrano Doctrine is also known as_______________
A. Contractual Due Process Doctrine
B. Ineffectual Dismissal Rule
C. Francisco Doctrine
D. Estrada Doctrine
Serrano Doctrine (2000): Ineffectual Dismissal Rule
The violation by the employer of the notice requirement in termination for just or authorized
causes was not a denial of due process that will nullify the termination. But, the dismissal is
declared INEFFECTUAL and the employer must pay full back wages from the time of
termination until it is judicially declared that the dismissal was for just and authorized cause.
13 to 15 by Abbijah Dulnuan (JD 2 SP-A)
13. This case discusses the procedural due process requirement in the termination of an
employee. In said case, the Supreme Court ruled that the bus company failed to comply
with the due process requirements when it terminated its employee. Thus, the bus
company was ordered to indemnify the dismissed employee the amount of thirty thousand
pesos (P30,000.00) as nominal damages.
a. Abott Laboratories, Philippines vs. Perlie Ann F. Alcaraz

b. King of Kings Transport vs. Santiago O. Mamac
c. Johnson & Johnson (Phils), Inc., et al. vs Johnson Office & Sales Union-
Federation of Free Workers
d. Auto Bus Transport Systems, Inc. vs. Antonio Bautista
RATIONALE:
G.R. No. 1666208, June 29, 2007
King of Kings Transport vs. Santiago O. Mamac
“Due process under the Labor Code involves two aspects: first, substantive the valid and
authorized causes of termination of employment under the Labor Code; and second, procedural
the manner of dismissal.In the present case, the CA affirmed the findings of the labor arbiter
and the NLRC that the termination of employment of respondent was based on a "just cause."
This ruling is not at issue in this case. The question to be determined is whether the procedural
requirements were complied with.
Art. 277 of the Labor Code provides the manner of termination of employment, thus:
Art. 277. Miscellaneous Provisions. x x x

(b) Subject to the constitutional right of workers to security of tenure and their right to
be protected against dismissal except for a just and authorized cause without prejudice
to the requirement of notice under Article 283 of this Code, the employer shall furnish
the worker whose employment is sought to be terminated a written notice containing a
statement of the causes for termination and shall afford the latter ample opportunity to
be heard and to defend himself with the assistance of his representative if he so
desires in accordance with company rules and regulations promulgated pursuant to
guidelines set by the Department of Labor and Employment. Any decision taken by
the employer shall be without prejudice to the right of the worker to contest the
validity or legality of his dismissal by filing a complaint with the regional branch of
the National Labor Relations Commission. The burden of proving that the termination
was for a valid or authorized cause shall rest on the employer.
Accordingly, the implementing rule of the aforesaid provision states:
SEC. 2. Standards of due process; requirements of notice. In all cases of termination of

employment, the following standards of due process shall be substantially observed:
I. For termination of employment based on just causes as defined in Article 282 of the Code:
(a) A written notice served on the employee specifying the ground or grounds for termination,
and giving said employee reasonable opportunity within which to explain his side.
(b) A hearing or conference during which the employee concerned, with the assistance of
counsel if he so desires is given opportunity to respond to the charge, present his evidence, or
rebut the evidence presented against him.
(c) A written notice of termination served on the employee, indicating that upon due
consideration of all the circumstances, grounds have been established to justify his termination.
In case of termination, the foregoing notices shall be served on the employee's last known
address.
To clarify, the following should be considered in terminating the services of employees:
(1) The first written notice to be served on the employees should contain the specific causes or
grounds for termination against them, and a directive that the employees are given the
opportunity to submit their written explanation within a reasonable period. "Reasonable
opportunity" under the Omnibus Rules means every kind of assistance that management must
accord to the employees to enable them to prepare adequately for their defense. This should be
construed as a period of at least five (5) calendar days from receipt of the notice to give the
employees an opportunity to study the accusation against them, consult a union official or
lawyer, gather data and evidence, and decide on the defenses they will raise against the
complaint. Moreover, in order to enable the employees to intelligently prepare their explanation
and defenses, the notice should contain a detailed narration of the facts and circumstances that
will serve as basis for the charge against the employees. A general description of the charge
will not suffice. Lastly, the notice should specifically mention which company rules, if any, are
violated and/or which among the grounds under Art. 282 is being charged against the
employees.
(2) After serving the first notice, the employers should schedule and conduct a hearing or
conference wherein the employees will be given the opportunity to: (1) explain and clarify their
defenses to the charge against them; (2) present evidence in support of their defenses; and (3)
rebut the evidence presented against them by the management. During the hearing or
conference, the employees are given the chance to defend themselves personally, with the
assistance of a representative or counsel of their choice. Moreover, this conference or hearing
could be used by the parties as an opportunity to come to an amicable settlement.
(3) After determining that termination of employment is justified, the employers shall serve
the employees a written notice of termination indicating that: (1) all circumstances involving
the charge against the employees have been considered; and (2) grounds have been established
to justify the severance of their employment.
14. The following standards of due process shall be substantially observed in the
termination of employment based on just causes, except one. Which one is it?
a. A written notice served on the employee specifying the ground or grounds for
termination, and giving said employee reasonable opportunity within which to explain
his side.
b. A hearing or conference during which the employee concerned, with the assistance
of counsel if he so desires is given opportunity to respond to the charge, present his
evidence, or rebut the evidence presented against him.
c. A written notice of termination served on the employee, indicating that upon due
consideration of all the circumstances, grounds have been established to justify his
termination.
d. A hearing or conference during which the employee concerned, with or
without the assistance of counsel if he so desires is given opportunity to respond to
the charge, present his evidence, or rebut the evidence presented against him.
RATIONALE: Art. 277 of the Labor Code provides the manner of termination of employment,
thus:
Art. 277. Miscellaneous Provisions. x x x
(b) Subject to the constitutional right of workers to security of tenure and their right to
be protected against dismissal except for a just and authorized cause without prejudice
to the requirement of notice under Article 283 of this Code, the employer shall furnish
the worker whose employment is sought to be terminated a written notice containing a
statement of the causes for termination and shall afford the latter ample opportunity to
be heard and to defend himself with the assistance of his representative if he so desires
in accordance with company rules and regulations promulgated pursuant to guidelines
set by the Department of Labor and Employment. Any decision taken by the employer
shall be without prejudice to the right of the worker to contest the validity or legality of
his dismissal by filing a complaint with the regional branch of the National Labor
Relations Commission. The burden of proving that the termination was for a valid or
authorized cause shall rest on the employer.

and giving said employee reasonable opportunity within which to explain his side. (b) A
hearing or conference during which the employee concerned, with the assistance of counsel
if he so desires is given opportunity to respond to the charge, present his evidence, or rebut the
evidence presented against him.
address.
15. Which of the following statements is true regarding the procedural process in the
termination of employment?
I. The first written notice to be served on the employees should contain the specific causes or
opportunity to submit their written explanation within a reasonable period.
II. Reasonable period is a period of at least five (5) calendar days from receipt of the notice to
give the employees an opportunity to study the accusation against them, consult a union official
or lawyer, gather data and evidence, and decide on the defenses they will raise against the
complaint.
III. After serving the first notice, the employers should schedule and conduct a hearing or
rebut the evidence presented against them by the management.
IV. During the hearing or conference, the employees are given the chance to defend themselves
personally, with the assistance of a representative or counsel of their choice. Moreover, this
conference or hearing could be used by the parties as an opportunity to come to an amicable
settlement.
V. After determining that termination of employment is justified, the employers shall serve
a. I, III, V only
b. I, II, III, only
c. none of the statements
d. all the statements
RATIONALE: Art. 277 of the Labor Code provides the manner of termination of employment.

and giving said employee reasonable opportunity within which to explain his side.
(b) A hearing or conference during which the employee concerned, with the assistance of
counsel if he so desires is given opportunity to respond to the charge, present his evidence, or
rebut the evidence presented against him.
address.
To clarify, the following should be considered in terminating the services of employees:
(1) The first written notice to be served on the employees should contain the specific causes or
opportunity to submit their written explanation within a reasonable period. "Reasonable
opportunity" under the Omnibus Rules means every kind of assistance that management must
accord to the employees to enable them to prepare adequately for their defense. This should be
construed as a period of at least five (5) calendar days from receipt of the notice to give the
employees an opportunity to study the accusation against them, consult a union official or
lawyer, gather data and evidence, and decide on the defenses they will raise against the
complaint. Moreover, in order to enable the employees to intelligently prepare their explanation
and defenses, the notice should contain a detailed narration of the facts and circumstances that
will serve as basis for the charge against the employees. A general description of the charge
will not suffice. Lastly, the notice should specifically mention which company rules, if any, are
violated and/or which among the grounds under Art. 282 is being charged against the
employees.
(2) After serving the first notice, the employers should schedule and conduct a hearing or
rebut the evidence presented against them by the management. During the hearing or
conference, the employees are given the chance to defend themselves personally, with the
assistance of a representative or counsel of their choice. Moreover, this conference or hearing
could be used by the parties as an opportunity to come to an amicable settlement.
(3) After determining that termination of employment is justified, the employers shall serve
16 to 18 by Mary Jane Lawagan (JD 2 SP-A)
16. Which doctrine interpreted the term “ampule opportunity to be heard”?

a. Francisco doctrine
b. Abbott Laboratories doctrine
c. Bustamante Doctrine
d. Perez Doctrine
Rationale: The Perez doctrine enunciates the new guiding principle on the hearing
requirement and has interpreted the term “ample opportunity to be heard”.
17. In what circumstances does a formal hearing or conference is mandatory?

a. when requested by the employee in writing
b. when substantial evidentiary disputes exist
c. when a company rule or practice requires it
d. when similar circumstances justify it
e. all of the above
Rationale: A formal hearing or conference is no longer mandatory except on any of the
following circumstances:
a. when requested by the employee in writing; or
b. when substantial evidentiary disputes exist; or
c. when a company rule or practice requires it; or
d. when similar circumstances justify it.
(Perez vs. Philippine Telegraph and Telephone Company, G.R. No. 152048; April 7,2009)
18. Which of the following statements is true regarding “ample opportunity to be

heard”?
a. “Ample opportunity to be heard” means any meaningful opportunity (verbal or

written) given to the employee to answer the charges against him and submit evidence
in support of his defense, whether in a hearing, conference or some other fair, just and
reasonable way.
b. A formal is no longer mandatory.
c. “Ample opportunity to be heard” standard in the Labor Code prevails over the
“hearing conference” requirement in its Implementing Rules and Regulation.
d. All of the above.
Rationale:
The Perez doctrine enunciates the new guiding principle on the hearing requirement. IT has
interpreted the term: ample opportunity to be heard” as follows:
a) “Ample opportunity to be heard” means any meaningful opportunity (verbal or

written) given to the employee to answer the charges against him and submit evidence
in support of his defense, whether in a hearing, conference or some other fair, just and
reasonable way.
b) A formal hearing is no longer mandatory except: 1) when requested by the employee
in writing; or 2) when substantial evidentiary disputes exist; or 3) when a company
rule or practice disputes exist; or 4) when similar circumstances justify it.
c) “ample opportunity to be heard” standard in the Labor Code prevails over the“
hearing or conference” requirement in its Implementing Rules and Regulations. This
is how the Supreme Court resolved the conflict in the following provisions of the
Labor Code and its implementing rules.
(Perez vs. Philippine Telegraph and Telephone Company, G.R. No. 152048; April)
19 to 20 by Noraine Mendoza (JD 2 SP-A)
19. The doctrine of “strained relations” or “antipathy and antagonism” or “irretrievable

estrangement” applies when reinstatement will no longer be in the best interest of both
employee and employer because of what?
a. Because of the animosity and antagonism that exist between them brought about by
the filing of the administrative case.
b. Because of the animosity and antagonism that exist between them brought about
by the filing of the labor case.
c. Because of the building tension between the employer and the employee.
d. Because of the embarrassment brought by the employee to the employer by winning
his/her labor case.
e. None of the above.
RATIONALE: Where reinstatement is not feasible, expedient, or practical, as where reinstatement

would only exacerbate the tension and strained relations between the parties, or where the relationship
between the employer and employee has been unduly strained by reason of their irreconcilable
differences, particularly where the illegally dismissed employee held a managerial or key position in
the company, it would be more prudent to order payment of separation pay instead of reinstatement. (
Johnson & Johnson (Phils), Inc., et al. vs Johnson Office & Sales Union- Federation of Free Workers,
et al., G.R. No. 172799, July 6,2007).
20. Which among the following statements is/are correct?

I. The principle of strained relations cannot be applied indiscriminately.
II. Strained relations, to warrant separation pay in lieu of reinstatement, must be
demonstrated as a matter of law.
a. All statements are correct.
b. Only statement II is correct.
c. Only statement I is correct.
d. None of the statements are correct.
RATIONALE:
The Principle of “strained relations” cannot be applied indiscriminately. Otherwise, reinstatement can
never be possible simply because some hostility is invariably engendered between the parties because
of litigation. That is human nature. (Gabriel vs Bilon, G.R No. 146989, February 7, 2007).
Strained relations, to warrant separation pay in lieu of reinstatement, “must be demonstrated as a

matter of fact”. Strained relations must be demonstrated as a fact, adequately supported by evidence
on record. Mere allegations of such by the petitioners, without evidence, are self-serving. (Tower
Industrial Sales vs CA, G.R No. 165727, April 19, 2006)
21 to 22 by Kate Orpiano (JD 2 SP-A)
21. In Agabon Doctrine, the dismissal of the employee was based on __________
Hence, the employee is entitled to nominal damages amounting to Php 30,000. The
sanction imposed upon the employer is tempered because the employee has
committed a wrongful act.
a. authorized cause
b. just cause
c. just and authorized cause
d. legal cause
Rationale:
In Agabon Doctrine, the dismissal of the employee was based on just cause but due
process was not observed. Hence, the employee is entitled to nominal damages
amounting to Php 30,000. The sanction imposed upon the employer is tempered
because the employee has committed a wrongful act.
22. In Jaka Doctrine, the dismissal of the employee was based on __________Hence,
the employee is entitled to nominal damages amounting Php 50,000. The sanction
imposed upon employer is stiffer because the employee has not committed any
blameworthy act nor any delinquency or culpability.
a. authorized cause
b. just cause
c. just and authorized cause
d. legal cause Rationale:
In Jaka Doctrine, the dismissal of the employee was based on authorized cause but
due process was not observed. Hence, the employee is entitled to nominal damages
amounting Php 50,000. The sanction imposed upon employer is stiffer because the
employee has not committed any blameworthy act nor any delinquency or culpability.
23 to 25 by Christian Mark Pagaddut (JD 2 SP-A)
23. In the case of (Dolores vs NLRC), how many years of backwages was awarded to
the employee because of the employer’s act of terminating the latter’s service
without malice or bad faith?
a) 3
b) 2
c) 4
d) 5
RATIONALE
Reinstatement with limited backwages:
There are instances where backwages were not awarded in full but merely limited for the
same reason of good faith on the part of the employer. Award of backwages was limited to: 2
years; or
Dolores vs NLRC: Employee was awarded backwages limited to a period of two (2) years,
given that the employer acted without malice or bad faith in terminating the employee’s
services.
24. When the dismissal is deemed too harsh a penalty; the Supreme Court ruled in
this case that: “The penalty of dismissal was reduced to suspension due to
mitigating circumstances. The justification was that the entire period when the
employee was out of job because of his dismissal should already be considered as
the period of his suspension; hence, he should no longer be entitled to backwages
for the same period.”
a) Pepsi-Cola vs NLRC
b) ALU-TUCP vs NLRC
c) Itogon-Suyoc vs NLRC
d) Leopard vs Quitoy
RATIONALE:
When the dismissal is deemed too harsh a penalty;
ALU-TUCP vs NLRC: The penalty of dismissal was reduced to suspension due to
mitigating circumstances. The justification was that the entire period when the employee was
out of job because of his dismissal should already be considered as the period of his
suspension; hence, he should no longer be entitled to backwages for the same period.
Yupangco vs NLRC: The employee was illegally dismissed but at the same time guilty of
misconduct. The penalty of suspension without backwages is proper.
Pepsi-Cola vs NLRC: Employee was absent for 25 days without prior leave. He was ordered
reinstated but he was denied backwages.
25. In this circumstance When the employer acted in good faith, the Supreme Court
decision in the case of Pepsi-Cola vs Molon, which statement is true?
I. Employee was absent for 25 days without prior leave. He was ordered reinstated but
he was denied backwages.
II. The ends of social and compassionate justice would therefore be served if the private
respondent is reinstated but without backwages in view of petitioner’s good faith.
III. Employee was reinstated but without backwages because the penalty of dismissal is
too harsh for his infractions considering that his failure to report to work was clearly
prompted by a medical emergency and not by any intention to defy the return-
towork order.
IV. Reinstatement without backwages was ordered because the petitioners/employers
were found not to have dismissed respondents/security guards and that the latter, for
their part, have not abandoned their employment. a) II, III & IV are true
b) II & I are true
c) Only III is true
d) Only II is true
RATIONALE:
Cases where SC award reinstatement without backwages and reinstatement with
limited backwages
Reinstatement without backwages:

Under the following situations, reinstatement of an illegally dismissed employee is granted
without the accompanying backwages:
When the employer acted in good faith;
Itogon-Suyoc vs NLRC: “The ends of social and compassionate justice would therefore be
served if the private respondent is reinstated but without backwages in view of petitioner’s
good faith.”
Pepsi-Cola vs Molon: Employee was reinstated but without backwages because the penalty
of dismissal is too harsh for his infractions considering that his failure to report to work was
clearly prompted by a medical emergency and not by any intention to defy the return-to-work
order.
Integrated Microelectronics, Inc. (IMI) vs Pionella: Backwages was deleted on the grounds
that (a) the penalty of dismissal was too harsh a penalty to be imposed against Pionella fo his
infractions and (b) IMI was in good faith when it dismissed Pionella.
26 to 27 by Ma. Skyla Keri P. Rivera (JD 2 SP-A)
26. The most common authorized causes for dismissal under Article 298 (283) of the
Labor Code of the Philippines are
A. Installation of Labor-Saving Device and Cost cutting measures

B. None of the choices
C. Closure or Cessation of Business Operations
D. Retrenchment and Redundancy
E. All of the above
Rationale:
Retrenchment and Redundancy- these are causes for dismissal from employment that are
not attributable to the employee but falls under the employer’s exercise of management
prerogative.
Retrenchment as authorized cause for dismissal is rooted from the principle that losses in the
operation of the enterprise, lack of work, or considerable reduction on the volume of business
may justify an employer to reduce the work force. However, for retrenchment to be a valid
authorized cause for dismissal, the three (3) basic requirements are:
Proof that the retrenchment is necessary to prevent losses or impending losses;

Service of written notices to the employees and to the Department of Labor and Employment
at least one (1) month prior to the intended date of retrenchment; and
Payment of separation pay equivalent to one (1) month pay, or at least one-half (1/2) month
pay for every year of service, whichever is higher (Sanoh Fulton Phils., Inc. vs. Bernardo 703
SCRA 565, August 14, 2013).
Redundancy exists when the service capability of the workforce is in excess of what is
reasonably needed to meet the demands of the enterprise. A reasonably redundant position is
one rendered superfluous by any number of factors, such as overhiring of workers, decreased
volume of business, dropping of a particular product line previously manufactured by the
company or phasing out of service activity priorly undertaken by the business. Among the
requisites of a valid redundancy program are: (1) the good faith of the employer in abolishing
the redundant position; and (2) fair and reasonable criteria in ascertaining what positions are
to be declared redundant and accordingly established (Ocean East Agency vs. Allan I. Lopez,
G.R. No. 194410, October 14, 2015).
Under Article 298 (283) of the Labor Code, the following are the requirements for dismissal
of employment due to Redundancy:written notice served on both the employees and the
Department of Labor and Employment at least one month prior to the intended date of
retrenchment;payment of separation pay equivalent to at least one month pay or at least one
month pay for every year of service, whichever is higher;
good faith in abolishing the redundant positions; and fair and reasonable criteria in
ascertaining what positions are to be declared redundant and accordingly abolished
(Manggagawa ng Komunikasyon sa Pilipinas vs. Philippine Long Distance Telephone
Company, Incorporated 823 SCRA 595, April 19, 2017)
27. Article 298 (283) Two (2) separate written notices are served on both the affected
employee and the DOLE prior to the intended date of
termination;
A. At least One (1) year

B. At least One(1) month
C. At least One (1) week
D. At least Two (2) month
E. None of the choices
Rationale:
Written notice of dismissal to the employee specifying the grounds at least 30 days or at least
1 month before the date of termination. A copy of the notice shall also be furnished the
Regional Office of the Department of Labor and Employment (DOLE) where the employer is
located.
28 to 29 by Joanna Ymson (JD 2 SP-A)
28. What is the 4th requisite that was added in the case of Imasen v. Alcon for
misconduct or improper behaviour to be a just cause for dismissal?
a. The misconduct must be serious,
b. It must relate to the performance of the employee’s
c. It must show that he has become unfit to continue working for the employer
d. It must have been performed with wrongful intent.
Rationale:
In the case of Philippine Manufacturing Corporation v. Alcon, G.R. No. 194884,

October 22, 2014, the 4th requisite, ‘It must have been performed with wrongful intent’ , is
“equally important and required” for misconduct or improper behaviour to be a just cause for
dismissal.
The following requisites must concur:

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; and
d. It must have been performed with wrongful intent.
29. Is sexual intercourse inside the company premises a ground for dismissal of service
based on the 2014 case of Imasen v. Alcon?
a. Yes, engaging in sexual intercourse inside company premises during work hours
amount to serious misconduct which is just cause for dismissing an employee.
b. Yes, engaging in sexual intercourse inside company premises during work hours
amount to light misconduct which is just cause for dismissing an employee.
c. No, sexual intercourse inside company premises during work hours are not usual
violations to dismiss an employee and are not found in abundance under the public
policy.
d. No, sexual intercourse inside company premises during work hours are not usual
violations to dismiss an employee and are not found in abundance under the public
moral.
Rationale:
The Supreme Court Ruled in Philippine Manufacturing Corporation v. Alcon, G.R. No.
194884, October 22, 2014 that the just causes for dismissing an employee are provided under
Article 282 (now Article 296) of the Labor Code. Under Article 282(a), serious misconduct by
the employee justifies the employer in terminating his or her employment.
For misconduct or improper behavior to be a just cause for dismissal, the following elements
must concur: (a) the misconduct must be serious; (b) it must relate to the performance of the
employee’s duties showing that the employee has become unfit to continue working for the
employer; and (c) it must have been performed with wrongful intent.
In this case the respondents engaged in sexual intercourse inside company premises and during
work hours. These circumstances, by themselves, are already punishable misconduct. Added
to these considerations, however, is the implication that the respondents did not only disregard
company rules but flaunted their disregard in a manner that could reflect adversely on the status
of ethics and morality in the company.
30 to 31 by Jalliah Yusoph (JD 2 SP-A)
30. The following are the other requisites for the termination of employment due to
disease except?
1. The employee is suffering from a disease;

2. His continued employment is either: prohibited by law; or prejudicial to his health; or
prejudicial to the health of his co-employees;
3. There is a certification by a competent public health authority that the disease is of such
nature or at such stage that it cannot be cured within a period of six (6) months even with
proper medical treatment;
4. Notice of termination based on this ground should be separately served both to the
employee and the Department of Labor and Employment at least one (1) month prior to
the effectively of the termination;
A. All of the above B.

None of the above
C. I,II, and III.
D. I only.
Basis: The following requisites must be complied with before termination of employment due
to disease may be justified:
1.The employee is suffering from a disease;
2. His continued employment is either: prohibited by law; or prejudicial to his health; or

prejudicial to the health of his co-employees;
3. There is a certification by a competent public health authority that the disease is of such
nature or at such stage that it cannot be cured within a period of six (6) months even with
proper medical treatment;
4. Notice of termination based on this ground should be separately served both to the
employee and the Department of Labor and Employment at least one (1) month prior to the
effectively of the termination; and
5. Separation pay should be paid to the employee in an amount equivalent to at least one (1)
month salary or to one-half (½) 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.
31. Which statement is true:
I. Separation pay should be paid to the employee in an amount equivalent to at least one (1)
II. Separation pay should be paid to the employee in an amount equivalent to more than one
(1) month salary or to one-half (½) 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.
A. Statement I is true
B. Statement II is true
C. Both statements are true
D. Both statements are false

Basis: One of the requisites to terminate employment due to disease is:
Separation pay should be paid to the employee in an amount equivalent to at least one (1)
32 to 34 by Aurora Briz (JD 2 SP-A)
32. In cases of regular employment, the employer shall not terminate the services of an
employee except for:
A. for a just cause or with due process

B. for a just cause or when authorized by labor department office.
C. for a just compensation or when authorized by this Title
D. for a just cause or when authorized by this Title
ANSWER: In cases of regular employment, the employer shall not terminate the
services of an employee except for a just cause or when authorized by this Title.
An employee who is unjustly dismissed from work shall be entitled to reinstatement
without loss of seniority rights and other privileges and to his full backwages,
inclusive of allowances, and to his other benefits or their monetary equivalent
computed from the time his compensation was withheld from him up to the time of
his actual reinstatement.
33. There are two types of employment termination in the Philippines:

A. termination by employer and voluntary resignation or termination by DOLE.
B. termination by employee and involuntary resignation or termination by employee.
C. termination by employer and voluntary resignation or termination by
employee.
D. termination by employer and involuntary resignation or termination by employee.
ANSWER: There are two types of employment termination in the Philippines:
termination by employer and voluntary resignation or termination by employee.
Employers can dismiss an employee based on just and authorized causes. Just causes are
based on acts attributable to an employee’s own wrongful actions or negligence while
authorized causes refer to lawful grounds for termination which do not arise from fault or
negligence of the employee
Voluntary resignation is defined as a voluntary act committed by employees who knowingly
dissociate themselves from their employment for personal reasons. It does not cover instances
where employees are forced to resign with the use of threats, intimidation, coercion,
manipulation, or where dismissal is imposed as a penalty for an offense. Forced or coerced
resignation is illegal and considered “constructive” dismissal – a dismissal in disguise.
34. Which of the following involves Due Process for Authorized Causes:
A. Submission of a written notice of dismissal to the employee specifying the

grounds for dismissal at least 30 days before the date of termination and a
written notice, commonly referred to as a notice to explain specifying the
grounds for termination and giving the employee ample opportunity to explain
their side.
B. A copy of the notice which shall be provided to the Regional Office of the
Department of Labor and Employment (DOLE) where the employer is located
and A notice of decision indicating the justification for termination as well as
the corresponding sanctions (if any) after due consideration of all evidence.
C. Submission of a written notice of dismissal to the employee specifying the

grounds for dismissal at least 30 days before the date of termination and a
copy of the notice which shall be provided to the Regional Office of the
Department of Labor and Employment (DOLE) where the employer is
located.
D. A copy of the notice which shall be provided to the Regional Office of the
Department of Labor and Employment (DOLE) where the employer is located
and a hearing or conference to allow the employee to respond to the charge/s,
present evidence, or rebut the evidence presented against them.
ANSWER: Dismissals based on authorized causes involve the following:
Submission of a written notice of dismissal to the employee specifying the

grounds for dismissal at least 30 days before the date of termination and a copy of
the notice which shall be provided to the Regional Office of the Department of
Labor and Employment (DOLE) where the employer is located.
35 to 37 by Indira Dizuosa (JD 2 SP-A)
35. What type of rule was applied under the WenPhil Doctrine? Please choose the
correct letter of your answer.
A. Ineffectual Dismissal Rule

B. Belated Dismissal Rule
C. Contractual Due Process D. Statutory Due Process Rule Rationale:
Wenphil Doctrine (1989): Belated Dismissal Rule.
Where the employer had a valid reason to dismiss an employee but it did not follow
the due process requirement, the dismissal may be UPHELD but the employer will be
penalized to pay an indemnity to the employee amounting Php 1000.
36. The ________________ Doctrine where the Contractual Due Process was
enunciated.
Please choose the letter. A.
Agabon Doctrine (2004)
B. Abbott Laboratories Doctrine (2013)
C. Serrano doctrine (2000)
D. Wenphil Doctrine (1989)
Rationale:
Abbott Laboratories Doctrine (2013): Contractual Due Process
Where there is an existing company policy enunciating the procedural due process (
Contractual Due Process) that must be observed in termination of an employment,
compliance alone with the statutory due process, would not suffice. Otherwise, the
same consequence as in Agabon will ensue, that is, the termination shall be legal but
the employer is liable to the payment of indemnity in the form of nominal damages
amounting to Php 30,000.
37. Among the 7 rules on termination which of the following are not correct. Please
choose the letter.
I. The dismissal was for a just cause under Article 297 (282), for an authorized cause
under Article 298 (283), or for health reasons under Article 299 (284), and due
process was observed- This termination is LEGAL
II. The dismissal was brought about by the implementation of a law- This termination
is LEGAL
III. The dismissal was for a non-existent cause- This termination is LEGAL IV.
The dismissal is LEGAL, if it was done with substantive due process but without
procedural due process.
A. All are Legal

B. All are Illegal C. Only 3 is Illegal.
D. Only 3 is Legal.
Rationale:
The rules on termination of employment in the Labor Code and pertinent jurisprudence are
applicable to seven (7) different situations, namely:
1. The dismissal was for a just cause under Article 297 (282), for an authorized cause under
Article 298 (283), or for health reasons under Article 299 (284), and due process was
observed- This termination is
2. The dismissal was without a just or authorized cause but due process was observed- This
termination is
3. The dismissal was without a just or authorized cause and due process was not observed- This
termination is ILLEGAL
4. The dismissal was for a just or authorized cause but due process was not observed- This
termination is
5. The dismissal was for a non-existent cause- This termination is
6. The dismissal was not supported by any evidence of termination- This termination is
NEITHER LEGAL OR ILLEGAL as there is no dismissal to speak of. Reinstatement is
ordered not as a relief for illegal dismissal but on equitable ground.
7. The dismissal was brought about by the implementation of a law- This termination is
LEGAL
Stated otherwise:
1. The dismissal is LEGAL, if it was done with both substantive and procedural due process.
2. The dismissal is ILLEGAL, if it was done without substantive due process although
procedural due process was observed.
3. The dismissal is ILLEGAL, if it was done without substantive and procedural due process.
4. The dismissal is LEGAL, if it was done with substantive due process but without procedural
due process.
38 to 39 by Fidel Khalang (JD 2 SP-A)
38. Ada Lovelace is the junior programmer in Charles Babage Inc., and she was with the
company for 2 years. Due to Covid-19 and the clients of Charles Babage Inc.
discontinued their contracts, the company has no choice but to retrench its employees in
order to survive and not go out of business. In April 1, 2020 the CEO of Charles Babage
personally handed the notice of termination to all the employees that were about to be
retrenched after the end of the month of April, 2020. The CEO simultaneously notified
the DOLE Regional Office for the retrenchment plan. After the dismissal, in June of
2020, Ada, who was also terminated because of retrenchment filed a complaint assailing
that she was illegally dismissed because of the lack of the required 2nd notice. Was the
contention of Ada valid?
a) Yes, the 2nd notice is required for the procedural due process right of Ada.
b) No, the 2nd notice rule is not required.
c) Yes, the 2nd notice should have been issued together with the separation pay required
under the law.
d) No, the second notice is not applicable to termination due to authorized cause such
as retrenchment.
RATIONALE: The second written notice (notice of termination) is not applicable in

cases of termination due to authorized causes. Procedural due process in termination
due to any of the authorized causes, of installation of labor-saving device,
redundancy, retrenchment and closure of business or establishment is deemed
complied with upon the separate and simultaneous service of a written notice of the
intended termination to both:
1.) the employee to be terminated; and
2.) the appropriate DOLE Regional Office,
At least one month before the intended date of the termination specifying the ground/s
therefor and the undertaking to pay the separation required under Article 298 [283] of
the Labor Code or the employment contract or the CBA, whichever is higher.
39. The following are termination due to authorized causes that does not require 2nd notice
to comply with the procedural due process, except:
a) Installation of labor-saving device

b) Redundancy
c) Retrenchment
d) Covid-19
RATIONALE: The Covid-19 pandemic per se is not authorized cause for termination, but
retrenchment or closure of business due to the effect of the pandemic may be the authorized
cause of termination.
40 to 42 by Liven Faith Lozano (JD 2 SP-A)

40. This case was decided by the Supreme Court where the OFWs were declared
regular employees and thus entitled to backwages and separation pay in lieu of
reinstatement.
A. ATCI Overseas Corporation vs. CA, GR. No. 148893, August 9, 2001
B. Gu-Miro vs. Adorable, GR. No. 160952, August 20, 2004
C. Skippers United Pacific Inc. vs. NLRC, GR. No. 148893, July 12, 2006 D. None
of the above
ANSWER: A
Rationale: In the case of ATCI Overseas Corp. vs. CA, GR. No. 144394, August 9, 2001, the
private respondents (Filipino doctors) were hired as dental hygienists by the Ministry of Public
Health of Kuwait (Ministry) for a period of 2 years. After having worked for only 2 months,
however, private respondents were terminated from their employment. Moreover, private
respondents were informed that they were physically unfit for their jobs. Seven (7) months after
they had ceased to work, private respondents were repatriated to the Philippines. Petitioner
claimed that they were probationary employees at the time of their termination. The Supreme
Court, however, did not agree. First of all, there is nothing in the record that would attest to
petitioner's claim that private respondents were merely probationary employees at the time
they were summarily dismissed from employment Petitioner could not cite any provision in the
employment contract providing for a probationary period, nor was such a stipulation included
in the Memorandum of Understanding concluded between petitioner and the Ministry, although
the Memorandum of Understanding provided for the general terms of employment. Neither is
there any finding of probationary employment in the decisions of the POEA, NLRC and Court
of Appeals. Moreover, the records do not show that private respondents were apprised of the
fact that they were to be placed on probationary status and the requirements that they should
comply with in order to quality as regular employees. In the absence of such evidence, no other
conclusion can be drawn but that private respondents were regular employees at the time they
were dismissed by the Ministry. Being regular employees, the dismissal effected by petitioner
must comply with the requirements of Article 299 [284] of the Labor Code.
41. Which of the following statements is true?
I. In case of termination of overseas employment without just, valid or authorized

cause as defined by law or contract, the workers shall be entitled to the full
reimbursement of his placement fee with interest of twelve percent (10%) per
annum, plus his salaries for the unexpired portion of his employment contract
or for three (3) months for every year of the unexpired term, whichever is less.
II. In case of termination of overseas employment without just, valid or authorized
III. In case of termination of overseas employment without just, valid or authorized
IV. In case of termination of overseas employment without just, valid or authorized
A. Statement I
B. Statement II
C. Statement III
ANSWER: C
Rationale: Section 10 of R.A. No. 8042, paragraph 5 which discusses the legal basis for the
reckoning of the monetary awards in case of illegal dismissal of OFWs.
42. Which of the following statements was declared as unconstitutional in the case of
Antonio M Serrano vs. Gallant Maritime Services Inc. and Marlow Navigation
Co., Ltd.?
a. "or for three months for every year of the unexpired term, whichever is greater"
b. "or for four months for every year of the unexpired term, whichever is greater"
c. "or for three months for every year of the unexpired term, whichever is less"
d. "or for four months for every year of the unexpired term, whichever is less"
A. None of the above

B. A
C. C
D. D
Answer: C
Rationale: The quoted statement, or for three months for every year of the unexpired term,
whichever is less has been declared unconstitutional in Antonio M Serrano v. Gallant Maritime
Services. Inc. and Marlow Navigation Co., Ltd., G.R. No 167614, March 24. 2009, for being
discriminatory, among other significant reasons cited therein.
43 To 44 by May Camille B. Vencio (JD2 SP-A)
43. It was well settled in this case that there is nothing reprehensible or illegal when the
employer grants the employee a chance to resign and save face rather than smear
the latter's employment record.
a) Del Rio vs. DPO Philippines, Inc.
b) Imasen Philippine Manufacturing Corporation vs. Alcon
c) Cojuanco vs NLRC
d) Leonida vs NLRC

BASIS:
It is settled that there is nothing reprehensible or illegal when the employer grants the
employee a chance to resign and save face rather than smear the latter's employment record.
(Del Rio vs. DPO Philippines, Inc.)
44. A call center agent employee, has committed several infractions which were
established by evidence during the administrative investigation conducted by
petitioner. However, instead of being dismissed for just cause, he requested that he
be allowed to resign from the company effective immediately to protect his
reputation and his future employment chances, to which the petitioner accepted.
However, he later filed a constructive/illegal dismissal case against petitioner. Will
the complaint prevail?
a) Yes, because he was dismissed without just cause since mere infractions are
not sufficient to justly dismiss an employee.
b) Yes, because the employee was manipulated into submitting a resignation

letter.
c) No, even if the employee had not submitted his resignation letter, the
company could still not be held liable for constructive dismissal given
the existing just cause to terminate the employee’s employment.
d) Yes, the company should have formally dismissed the employee as they
should have in the first place instead of allowing him to submit a
resignation letter instead.
BASIS:
Note in the case of (Sutherland Global Services v. Labrador):

Respondent Labrador, a call center agent, has committed several infractions which were
established by evidence during the administrative investigation conducted by petitioner.
However, instead of being dismissed for just cause, he requested that he be allowed to resign
from the company effective immediately to protect his reputation and his future employment
chances, to which the petitioner accepted. However, he later filed a constructive/illegal
dismissal case against petitioner. Raised was one of the issues was whether his resignation letter
was voluntarily executed. The Supreme Court found such issue moot. Even if Labrador
had not submitted his resignation letter, petitioner could still not be held liable for
constructive dismissal given the existing just cause to terminate Labrador’s employment.
45 to 46 by Jasmaine Angeli B. Otanes (JD 2 SP-A)
45. The word _________ in the legal phrase "_________ public health authority" refers
to a government doctor whose medical specialization pertains to the disease being
suffered by the employee.
A. Able; Able public health authority

B. Competent; Competent public health authority
C. Qualified; Qualified public health authority
D. Adept; Adept public health authority Rationale:
The word "competent" in the legal phrase "competent public health authority" refers to a
government doctor whose medical specialization pertains to the disease being suffered by the
employee.
46. A competent public health authority certifies that the disease is of such nature or at
such a stage that it cannot be cured within a period of _________ even with proper
medical treatment.
A. Six months
B. Three months
C. Seven months
D. Two months Rationale:
In terminating an employee due to disease, the Labor Code and its Implementing Rules
and Regulations (IRR) require the presence of the following substantive requirement:
(1) An employer has been found to be suffering from any disease.
(2) His continued employment is prohibited by law or prejudicial to his health, as well as
to the health of his co-employees.
(3) A competent public health authority certifies that the disease is of such nature or
at such a stage that it cannot be cured within a period of six months even with
proper medical treatment.
47 to 48 by Razz Von Patting (JD 2 SP-A)
47. What doctrine used the term “full backwages”?

A.) Abbot Laboratories Doctrine
B.) Agabon vs Jaga Doctrine
C.) Fransisco Doctrine
D.) Bustamante Doctrine
E.) The Kings of Kings Transport Doctrine
Rationale: In Bustamante v. NLRC, it shows that the dismissal of employees does not
constitute the termination of their backwages because employees dismissed from their work
in good faith are still entitled to their full backwages. This is also reflected in the case of
Manila Electric Company v. NLRC. In this case, the court ordered the reinstatement of an
employee with backwages because although there was a valid cause for dismissal, the penalty
was too severe for an employee who had rendered service for an uninterrupted period of
twenty (20) years with two commendations for honesty. In Bustamante v. NLRC, there is no
valid cause for dismissal. The employees (petitioners) have not performed any act to warrant
termination of their employment. Consequently, petitioners are entitled to their full
backwages and other benefits from the time their compensation was withheld from them up
to the time of their actual reinstatement.
48. Fill in the blanks “without deducting from backwages the ___________ derived
elsewhere by the concerned employee during the period of his illegal dismissal”
A.) Earnings
B.) Salary
C.) Wages
D.) Credits
E.) Savings
Rationale: Also reflected in the case of Manila Electric Company v. NLRC, but in this case,
the illegal dismissal of the concerned employee is about the earnings of the employee which
will still be reflected under the Bustamante Doctrine.
49 to 50 by Janos Tol-an (JD 2 SP-A)
49. It is a reduction of personnel usually due to poor financial returns as to cut down on
costs of operations in terms of salaries and wages to prevent bankruptcy of the company.
A.) Closure
B.) Separation
C.) Retrenchment
D.) Reduction
Basis:
G.R. No. 157611 - Alabang Country Club Inc., et al. v. National Labor Relations Commission, et
al.
Retrenchment is the reduction of personnel for the purpose of cutting down on costs of operations
in terms of salaries and wages resorted to by an employer because of losses in operation of a
business occasioned by lack of work and considerable reduction in the volume of business.
50. Which of the statement is correct?
Statement 1: Closure of a business or undertaking due to business losses is the reversal of fortune of
the employer whereby there is a complete cessation of business operationsto prevent further
financial drain upon an employer who cannot pay anymore his employees since business has
already stopped.
Statement 2: Closure of a business is the reversal of fortune of the employer whereby there is a
complete cessation of business operations and or an actual locking up of the doors of the
establishment, usually due to financial losses. Closure of business as an authorized cause for
termination of employment aims to prevent further financial drain upon an employer who cannot
pay anymore his employees since business has already stopped.
A.) only statement 1 is true
B.) Both are false
C.) Only statement 2 is true
D.) Both are true
E.) None of the choices
Basis:
G.R. No. 157611 - Alabang Country Club Inc., et al. v. National Labor Relations Commission, et
al.
~
51 to 100 by JD 2 SP-B
51. The Supreme Court has pronounced that the rule on due process in termination due to
disease is similar to the rule on due process for just cause termination. Thus, the
employer must furnish the employee two (2) written notices, namely : (1) The notice
to apprise the employee of the ground for which his dismissal is sought; and (2) the
notice informing the employee of his dismissal, to be issued after the employee has
been given reasonable opportunity to answer and to be heard on his defense.
In what case was this two-notice rule on due process in termination due to disease
pronounced?
a. Deoferio vs. Intel (G.R. No. 202996, June 18, 2014)

b. Jaka Food Processing vs. Darwin Pacot, 454 SCRA 119
c. Ledesma, Jr. vs. NLRC, 537 SCRA 358, October 19, 2007
d. Aurora Land Project Corp. vs NLRC, 266 SCRA 48
Rationale:
In Deoferio vs. Intel (G.R. No. 202996, June 18, 2014), the Supreme Court
upheld the dismissal yet also decided that “Deoferio is entitled to nominal
damages for violation of his right to statutory procedural due process.”
52. This case has expounded the rule on due process requirement in termination due to
disease by categorically specifying the right of the ailing employee to present
countervailing evidence in form of medical certificates to prove that his dismissal due
to disease is not proper and therefore illegal.
a. Fuji Television Network, Inc. vs. Arlene S. Espiritu (G.R. No. 204944-45,
December 3, 2014)
b. Jaka Food Processing vs. Darwin Pacot, 454 SCRA 119
c. Ledesma, Jr. vs. NLRC, 537 SCRA 358, October 19, 2007
d. Aurora Land Project Corp. vs NLRC, 266 SCRA 48
Rationale:
Fuji Television Network, Inc. vs. Arlene S. Espiritu (G.R. No. 204944-45,
December 3, 2014) : “That a person has a disease does not per se entitle
the employer to terminate his or her services. Termination is the last
resort. At the very least, a competent public health authority must certify
that the disease cannot be cured within six ( 6) months, even with
appropriate treatment.”
53. There are three classes of positions of trust: (1) Managerial positions; (2) Supervisory
positions; and (3) Fiduciary rank-and-file positions.
Rank-and-file employees are further classified into (1) fiduciary rank-and-file; and (2)
ordinary rank-and-file.
What classification does a security guard belong to?
a. managerial position
b. supervisory position
c. fiduciary rank-and-file
d. ordinary rank-and-file
Rationale:
Marina Port Services, Inc. v. NLRC (G.R. No. 80962. January 28, 1991):
“EMPLOYMENT; POSITION OF TRUST AND CONFIDENCE,
CONSTRUED; SECURITY GUARDS NOT EMBRACED THEREIN. — As we
see it, a strictly literal interpretation of the phrase was not intended in
Paragraph 7. On the contrary, we feel that the reference intended was not to any
employee entrusted with the custody of company property but to a higher
category of employees not belonging to the rank-and-file but holding managerial
positions. It is the persons on such levels who, because they discharge these
sensitive duties, safekeeping and safeguarding company policies, management
instructions, and company secrets such as operation devices may be considered

holding positions of trust and confidence. The security guard does not belong in
such category.”
54. All statement are characteristics of a preventive suspension except:

A. It is a legal and justifiable remedy
B. Not a penalty
C. The employee is not entitled to the payment of salaries during the suspension because
of the infractions committed.
D. when it is determined that there is no sufficient basis to justify an employee’s
preventive suspension, the latter is entitled to the payment of salaries during the time
of preventive suspension.
E. None of the above.
Rationale:
A preventive suspension is a reasonable and justifiable legal remedy given to an employer for
the purpose of investigating and/or resolving workplace-related incidents that affect his
company’s operations. It is important to note that preventive suspension is not a penalty, but a
part of a process to investigate a questioned action of an employee. And when it is
determined that there is no sufficient basis to justify an employee’s preventive suspension,
the latter is entitled to the payment of salaries during the time of preventive suspension.
Whereas, a suspension as a penalty is imposed as an administrative penalty for infractions
committed. The employee is not entitled to the payment of salaries during the suspension
because of the infractions committed.
55. The following are just causes for involuntary resignation except for:
A. Serious insult to honor and person of the employee
B. inhuman and unbearable treatment given by the employer
C. crime committed against the employee or his/her family
D. All of the above E. None of the above
Rationale:
An employee may file a voluntary resignation (without just cause) or involuntary resignation
(with just cause).
The just causes for filing a resignation are as follows:
1. serious insult to the honor and person of the employee;

2. inhuman and unbearable treatment given by the employer; 3. crime
committed against the employee or his/her family; or
4. other related causes.
If the resignation is without just cause, the employee must give a one (1) month advance
written notice for resignation (referred to as a resignation letter (Links to an external site.)) to
the employer to enable them to look for a replacement and prevent work delay. The
resignation letter should be accepted by the employer in writing. Failure to file a resignation
letter can make the employee incur liability for damages.
56. When resignation is without just cause, the following must be done for the resigning
employee must not incur liabilities except for:
A. employee must give a one (1) month advance written notice for resignation to the
employer to enable them to look for a replacement and prevent work delay. B.
The resignation letter must have an affidavit attached to it.
C. The resignation letter should be accepted by the employer in writing.
D. None of the above.
Rationale:
An employee may file a voluntary resignation (without just cause) or involuntary resignation
(with just cause).
The just causes for filing a resignation are as follows:

written notice for resignation (referred to as a resignation letter) to the employer to enable
them to look for a replacement and prevent work delay. The resignation letter should be
accepted by the employer in writing. Failure to file a resignation letter can make the
employee incur liability for damages.
57. Which of the following statements is not correct regarding involuntary resignation
initiated by an employee ?
a)serious insult to the honor and person of the employee

b)crime committed against the employee or his/her family; or
c) It is typically resorted to by employers who do not want to undergo the procedural
due process involved in legally terminating an employee d)inhuman and unbearable
treatment given by the employe Rationale:
Involuntary resignation is a termination initiated by the employee based on the following
just causes:

58. If Ihe resignation is without just cause, the employee must give a _advance written
notice for resignation to the employer to enable them to look for a replacement and prevent
work delay.
a. At least two month

b. At least three month
c. One month
d. At least 15 days
Rationale:
written notice for resignation (referred to as a to the employer to enable them to look for a
replacement and prevent work delay.
59. It is an involuntary resignation resorted to when continued employment becomes

impossible, unreasonable, or unlikely. a. Forced resignation
b. Illegal dismissal
c. Constructive dismissal
d. Suspension
Rationale:
Constructive dismissal is an involuntary resignation resorted to when continued employment
becomes impossible, unreasonable, or unlikely, due to any of the following:
· demotion in rank or a diminution in pay; or
· when a clear discrimination, insensibility, or disdain by an employer becomes unbearable

to an employee.
Constructive dismissal is illegal and usually occurs when an employee resigns as a result of
unfavorable work conditions instigated by the employer. It is typically resorted to by
employers who do not want to undergo the procedural due process involved in legally
terminating an employee
60. Which is the following Statement is in the 30-day period for the benefit of the employer
and not for the resigning employee are correct.
Statement I. Insist on the full observance by the resigning employee of the entire 30 days.
Statement II.Shorten it to such number of days as it may deem appropriate or necessary.
Statement III Waive it completely and make the resignation effective immediately.
Statement IV. Shorten and waive the resignation effective for 15- days period.
A. I and II
B. I and III
C. I and II and III
D. All of the statement are correct.
E. All of the statement is not correct.
Rationale:
The 30-day period is for the benefit of the employer and not for the resigning employee. The
employer may thus:
(a) Insist on the full observance by the resigning employee of the entire 30 days; or
(b) Shorten it to such number of days as it may deem appropriate or necessary; or
(c) Waive it completely and make the resignation effective immediately.
The employer has the discretion to waive such period. Its purpose is to afford the employer
enough time to hire another employee if needed and to see to it that there is proper turn-over
of the tasks which the resigning employee may be handling.
61. How many days are allowed in the unilateral extension period by the employer?
A. 30 days
B. 40 days
C. 20 days
D. 14 days E. 10 days
Rationale:
The unilateral extension by the employer of the period beyond 30 days is not allowed since
the 30-day period is the maximum allowed by law. In order to make the extension valid and
legal, the employer should secure the written consent of the resigning employee to such
extension. It is of course different if it is the resigning employee who voluntarily sets the
effectivity of his resignation beyond 30-day period. If the employer consents to the
prolonged period, the employee cannot be heard to complain later on that he was made to
serve against his will, in violation of the period mentioned in Article 300 [285].
62. In what case the test of constructive dismissal is define as whether a reasonable person
in the employee’s position would have felt compelled to give up his position under the
circumstances.
A. McMer Corp vs NLRC

B. Globe Telecom vs. Florendo-Flores
C. Tan Brothers vs. Escudero
D. Philippine Advertising Counselors v. NLRC
E. The Orchard Golf and Country Club vs. Francisco
Rationale:
the test of constructive dismissal is whether a reasonable person in the employee’s position
would have felt compelled to give up his position under the circumstances. (McMer Corp vs
NLRC)
63. Where the employer had a valid reason to dismiss an employee but it did not follow the
due process requirement, the dismissal may be UPHELD but the employer will be penalized
to pay an indemnity to the employee amounting Php 1000.
a. Belated Dismissal Rule
b. Ineffectual Dismissal Rule
c. Statutory Due Process Rule
d. Contractual Due Process
e. Strained Relations Rule
Rationale: Under the so-called WENPHIL DOCTRINE (Belated Dismissal Rule) if the
services of the employee was terminated due to a just or authorized cause but the affected
employee’s right to due process has been violated, the dismissal is legal but the employee is
entitled to damages by way of indemnification for the violation of the right. Wenphil v. NLRC,
[170 SCRA 69, February 8, 1989]
64. Where the dismissal is for just cause, the lack of statutory due process should not nullify
the dismissal nor render it ineffectual. The employee is entitled to nominal damages
amounting to Php 30,000.
Rationale: Agabon Doctrine (Statutory Due Process Rule) provides that a dismissal due to
abandonment - a just cause - was not illegal or ineffectual, even if done without due process;
but the employer should indemnify the employee with “nominal damages for non-compliance
with statutory due process. (Agabon v. NLRC, [G.R. No. 158693, November 17, 2004)
65. Applies when reinstatement will no longer be in the best interest of both employee and
employer considering the animosity and antagonism that exist between them brought about
by the filing of the labor case.

Rationale: Where reinstatement is not feasible, expedient, or practical, as where
reinstatement would only exacerbate the tension and strained relations between the parties,
or where the relationship between the employer and employee has been unduly strained by
reason of their irreconcilable differences, particularly where the illegally dismissed employee
held a managerial or key position in the company, it would be more prudent to order payment
of separation pay instead of reinstatement. ( Johnson & Johnson (Phils), Inc., et al. vs
Johnson Office & Sales Union- Federation of Free Workers, et al., G.R. No. 172799, July
6,2007)
66. In the case of _______ it was ruled that, “If transfer is occasioned by government
directive, there can be no constructive dismissal to speak of.” a. Star paper corp. vs. Espiritu
b. Bisig Manggagawa sa Tryco vs. NLRC - Answer
c. Razon vs. NLRC
d. San Miguel vs. Lao
Rationale: Tryco's decision to transfer its production activities to San Rafael, Bulacan,
regardless of whether it was made pursuant to the letter of the Bureau of Animal Industry, was
within the scope of its inherent right to control and manage its enterprise effectively. While the
law is solicitous of the welfare of employees, it must also protect the right of an employer to
exercise what are clearly management prerogatives. The free will of management to conduct
its own business affairs to achieve its purpose cannot be denied.
Indisputably, in the instant case, the transfer orders do not entail a demotion in rank or
diminution of salaries, benefits and other privileges of the petitioners. Petitioners, therefore,
anchor their objection solely on the ground that it would cause them great inconvenience since
they are all residents of Metro Manila and they would incur additional expenses to travel daily
from Manila to Bulacan.
The Court has previously declared that mere incidental inconvenience is not sufficient to
warrant a claim of constructive dismissal. Objection to a transfer that is grounded solely upon
the personal inconvenience or hardship that will be caused to the employee by reason of the
transfer is not a valid reason to disobey an order of transfer.
67. Which of the following Statement is/are true:

I. "Illegal or actual" dismissal is shown by the act of the employer in openly and expressly
seeking and effecting the termination of employment of an employee
II. “Constructive" dismissal, being dismissal in disguise, is readily shown or indicated by any
similar act of the employer that would openly and expressly show its desire and intent to
terminate the employment relationship.
III. Constructive dismissal does not always involve forthright dismissal or even diminution in
rank, compensation, benefit and privileges. a. Statement I and II
b. Statement II and III
c. Statement I and III - Answer
d. Statement II only
Rationale: “constructive" dismissal, being dismissal in disguise, is NOT readily shown or
indicated by any similar act of the employer that would openly and expressly show its desire
and intent to terminate the employment relationship.
68. 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 sixty (60)
years or more, but not beyond sixty-five (65) years which is hereby declared the
compulsory retirement age, who has served at least ___ years in the said
establishment, may retire and shall be entitled to retirement pay equivalent to at least
___ month salary for every year of service, a fraction of at least ___ months being
considered as one whole year.
A. Ten (10) years; one-fourth (1/4) month; four (4) months
B. Five (5) years; one-half (1/2) month; six (6) months
C. Three (3) years; one- fourth (1/4) month; five (5) months
D. Five (5) years; one-half (1/2) month; four (4) months
Basis:
RA 7641 Art. 287 provides, “Any employee may be retired upon reaching the
retirement age established in the collective bargaining agreement or other applicable
employment contract.
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 sixty (60)
years or more, but not beyond sixty-five (65) years which is hereby declared the
compulsory retirement age, who has served at least five (5) years in the said
establishment, may retire and shall be entitled to retirement pay equivalent to at least
one-half (1/2) month salary for every year of service, a fraction of at least six (6)
months being considered as one whole year.
69. For purposes of determining the minimum retirement pay due an employee, the term
“one-half (1/2) month salary” shall include all of the following, except:
a. 15 days’ salary of the employee based on his latest salary rate. The term “salary” includes
all remunerations paid by an employer to his employees for services rendered during normal
working days and hours, whether such payments are fixed or ascertained on a time, task,
piece or commission basis, or other method of calculating the same, and includes the fair and
reasonable value, as determined by the DOLE Secretary, of food, lodging or other facilities
customarily furnished by the employer to his employees. The term does not include cost-of-
living allowances, profit-sharing payments, and other monetary benefits which are not
considered as part of or integrated into the regular salary of the employees; b. The cash
equivalent of 10 days of service incentive leave;
c. 1/12 of the 13th month pay due the employee; and
d. All other benefits that the employer and employee may agree upon that should be
included in the computation of the employee’s retirement pay.
Basis:
Article 302 (previously Art. 287) of the Labor Code, as amended by Republic Act No.
7641, otherwise known as the Retirement Pay Law. Section 5. Retirement Benefits.
The cash equivalent of 5 days of service incentive leave not 10 days.
70. Ben has been working as a guard in ABC Company for 10 years. However, ABC
company legally dismissed Ben on the ground of habitual absence. Ben before being
dismissed asked ABC Company for his retirement benefits since he was about to
retire.
Can ABC Company grant the retirement benefits of Ben?
A. No, Since it is stated in the retirement plan that dismissal for just cause prohibits
the grant of retirement benefits.
B. Yes, Because Ben has worked hard for his retirement benefit.
C. Yes, Since he ased for his retirement benefit before being dismissed.
D. No, Because retirement benefit is not a benefit of a dismissed employee.
Rationale:
It was held in San Miguel vs Lao, the Supreme Court ruled that the retirement
plan expressly prohibits the grant of retirement benefits in case of dismissal for
just cause. Hence, the employee is bound by such prohibition.
71. As a general Rule, management discretion may not be exercised _________ or

__________ especially with regards to the implementation of the retirement plan
A) arbitrarily, capriciously
B) liberally, arbitrarily
C) strictly, capriciously
D) arbitrarily, liberally Rationale:
In Razon vs NLRC, the Supreme Court declared that the employer’s refusal to give the
employee his retirement benefits is based on the retirement plan giving management wide
discretion to grant or not retirement benefits, a prerogative that obviously cannot be exercised
arbitrarily or whimsically.
72. What are the class/es of positions of classes?
A. Managerial positions, Supervisory positions and Fiduciary rank- and - file

positions.
B. Managerial positions and Supervisory positions.
C. Managerial positions and Fiduciary rank- and - file positions.
D. Fiduciary rank- and - file positions and Ordinary rank- and -file positions.
Rationale: There are three (3) classes of positions of trust:

The first class consists of managerial 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. Their primary duty consists of the management of the establishment
in which they are employed or of a department or a subdivision thereof and to other officers or
members of the managerial staff.
The second class consists of supervisory employees 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.
The third class is comprised of fiduciary rank-and-file employees, such as cashiers, auditors,
property custodians, or those who, in the normal and routine exercise of their functions,
regularly handle significant amounts of the employer’s money or property. These employees,
though rank-and-file, are routinely charged with the custody, handling or care and protection
of the employer’s money or property, or entrusted with confidence on delicate matters, and are
thus classified as occupying positions of trust and confidence.
73. TRUE/FALSE
Statement I : A requisite for dismissal on the ground of loss of trust and confidence is that the
employee concerned must be holding a position of trust and confidence.
Statement II : There must be an act that would justify the loss of trust and confidence.
A. True, False
B. False, True
C. True, True
D. False, False
Rationale : Article 282(c) 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.
Loss of trust and confidence, to be a valid cause for dismissal, must be based on a willful breach
of trust and founded on clearly established facts. The basis for the dismissal must be clearly
and convincingly established but proof beyond reasonable doubt is not necessary.
74. The Supreme Court issued the following guidelines concerning the transfer of
employees:
1. A transfer is a movement from one position to another of equivalent rank,
level or salary without break in the service or a lateral movement from one
position to another of equivalent rank or salary;
2. The employer has the inherent right to transfer or reassign an employee for
legitimate business purposes;
3. A transfer becomes unlawful where it is motivated by discrimination or
bad faith or is effected as a form of punishment or is a demotion without sufficient
cause;
4. The employer must not be able to show that the transfer is not
unreasonable, inconvenient, or prejudicial to the employee.
Answer:
a) Statements 1 ,2 and 3 are true,
b) Either 1 or 4 is correct
c) Statement no. 4 is true
d) Only Statement no. 2 is true
Rationale: Jenny F. Peckson vs. Robinsons Supermarket Corporation (G.R. No. 198534, July
3, 2013).
In addition, management may transfer an employee form one office to another within the
business establishment provided there is no demotion in rank or diminution of salary, benefits,
and other privileges, and the action is not motivated by discrimination or bad faith or effected
as a form of punishment without sufficient cause.
Also, the Supreme Court issued the following guidelines concerning the transfer of
employees:
1. A transfer is a movement from one position to another of equivalent rank, level or
salary without break in the service or a lateral movement from one position to another
of equivalent rank or salary;
2. The employer has the inherent right to transfer or reassign an employee for
legitimate business purposes;
3. A transfer becomes unlawful where it is motivated by discrimination or bad faith
or is effected as a form of punishment or is a demotion without sufficient cause;
4. The employer must be able to show that the transfer is not unreasonable,
inconvenient, or prejudicial to the employee.
In this case, it was sufficiently established by RSC that the transfer was not unreasonable or
inconvenient to Jenny and that it was a valid exercise of RSC’s management prerogative.
75. True or false.

I. In Cruz v. Coca- Cola Bottlers Phils nc., the fact that the offense was
committed for the first time or has not resulted in any prejudice to the
company was held to be a valid excuse.
II. It is well settled rule that employer has the right to impose a heavier
penalty than that prescribed in the company rules and regulations if
circumstances warrant the imposition thereof.
Answer:
a) none of the choices
b) only II is true
c) Both 1 and II true
d) Both I and II are false
Rationale: Admittedly, the company rules violated by petitioner are punishable, for the first
offense, with the penalty of suspension. However, respondent company has presented evidence
showing that petitioner has a record of other violations from as far back as 1986. ([G.R. NO.
165586 : June 15, 2005]
CORNELIO C. CRUZ, Petitioner, v. COCA-COLA BOTTLERS PHILS., INC., MANUEL A.

REMULLA, JR., ROMEO A. LARA and/or RENE P. HORRILLENO, Respondents.
76. Statement I. Employers have the freedom and prerogative, according to their
discretion and best judgment, to regulate and control the time when workers should
report for work and perform their respective functions.
Statement II. Employees have the freedom and prerogative, according to their discretion and
best judgment, to regulate and control the time when to work.
1. Statement III. Labor Unions have the freedom and prerogative, according to their discretion
and best judgment, to regulate and control the time when workers should report for work
and perform their respective functions.
A. Statement I is true
B. Statement II is true
C. Statement III is false
D. Statement I and II are false
Rationale: ·In Sime Darby Pilipinas, Inc v. NLRC, where it was held that management retains
to prerogative to change the working hours of its employees whenever exigencies of the service
so require. Furthermore, in Manila Jockey Club Employees Labor Union- PTGWO, v. Manila
Jockey Club, Inc, where the validity of the exercise of the same prerogative to change the
working hours was affirmed in this case. It was found that while Section 1, Article IV of the
CBA provides for a 7-hour work schedule from 9:00 a.m to 12:00 noon and from 1:00 p.m to
5:00 p.m from Mondays to Saturdays, Section 2 Article XI thereof expressly reserves to
respondent the prerogative to change existing methods or facilities and to change the schedules
of work. Consequently, the hours of work of regular monthly-paid employees were changed
from the original 9:00 a.m to 5:00 p.m schedule to 1:00 p.m. to 8:00 p.m. schedule for nonrace
days was, however, retained. Respondent, as employer, cited the change in the program of
horse races as reason for the adjustment of the work schedule. It rationalized that when the
CBA was signed, the horse races started at 10:00 a.m. When the races were moved to 2:00
p.m., there was no other choice for management but to change the work schedule as there was
no work to be done in the morning. Evidently, the adjustment in the work schedule is justified.
:
77. The amount of bonus is dependent upon the realization of profits. A.
the bonus is not demandable and enforceable.
B. The bonus is demandable
C. The bonus is not demandable and not enforceable
Rationale: if the amount of bonus is dependent upon the realization of profits, the bonus is not
demandable and enforceable.
78. What are the certain prohibitions that an employer may insist on an agreement
with the employee after the termination of their employer-employee relationship?
a. Confidentiality and Non-Disclosure Clause
b. Non-Recruitment or Anti-Piracy Clause
c. Non-Solicitation Clause
d. All of the above
Answer: d. All of the above

Rationale: The employer, in the exercise of its prerogative, may insist on an agreement with
the employer for certain prohibitions to take effect after the termination of their
employeremployee relationship. The following stipulations in an employment are illustrative
of the prohibitions normally agreed upon by the employer and employee: a) Non-Compete
Clause b) Confidentiality and Non-Disclosure Clause c) Non-Solicitation Clause d) Non-
Recruitment or Anti-Piracy Clause e) Inventions Assignment Clause (Intellectual Property
Clause).
79. True or False
Statement I: the no-spouse policy could be a valid exercise of management prerogative

provided it reflects an inherent quality reasonably necessary for satisfactory job performance.
Statement II: To justify a bona fide occupational qualification (BFOQ) the employer must
prove that the employment qualification is reasonably related to the essential operation of the
job involved; and that there is a factual basis for believing that all or substantially all persons
meeting the qualification would be unable to properly perform the duties of the job.
a. True, False
b. False, False
c. True, True
d. False, true
Answer: c. True, True
Rationale: the no-spouse policy could be a valid exercise of management prerogative provided
it reflects an inherent quality reasonably necessary for satisfactory job performance and the
employer has the burden to prove the existence of this reasonable business necessity. To justify
BFOQ the employer must prove two factors: that the employment qualification is reasonably
related to the essential operation of the job involved; and that there is a factual basis for
believing that all or substantially all personsmeeting the qualification would be unable to
properly perform the duties of the job.
80.
In this case, the Supreme Court ruled that a contract of employment expressly p
rohibiting an employee from having a relationship with an employee of a compet
itor company is valid exercise of management prerogative. a. The Duncan Case
b. Star Paper Corp. vs. Simbol case
c. The PT &T Case
d. .Daisy B. Tiu vs. Platinum Plans Philippines, Inc Case Answer: a. The Duncan Case
Rationale:
Duncan Association of Detailman – PTGWO v. Glaxo Welcome Philippines, Inc. GR
No. 162994, Sept. 17, 2004: The Supreme Court ruled that this stipulation is a valid exercise
of management provocative. The prohibition against personal or martial relationships with
employees of competitor-companies upon its employees is reasonable under the circumstances
because relationships of that nature might compromise the interest of the company. In laying
down the assailed company policy, the employer only aims to protect its interest against the
possibility that a competitor company will gain access to its trade secrets, manufacturing
formulas, marketing strategies and other confidential programs
81. In what case the Supreme Court passed on the validity of the policy of a
pharmaceutical company prohibiting its employees from marrying employees of any
competitor company?
a. Duncan Association of Detailman- PTGWO vs. Glaxo Welcome Philippines, Inc.
b. Daisy B. Tiu vs. Platinum Plans Philippines, Inc.
c. Del Castillo vs. Richmond
d. Consulta vs. Court of Appeals
Rationale: In the case of Duncan Association of Detailman- PTGWO vs. Glaxo Welcome
Philippines, Inc., the Supreme Court passed on the validity of the policy of a pharmaceutical
company prohibiting its employees from marrying employees of any competitor company. It
held that Glaxo has a right to guard its trade secrets, manufacturing formulas, marketing
strategies and other confidential programs and information from competitors.
82. What may be the probable reason when company prohibits its employees from
marrying employees of any competitor company?
a. to guard its trade secrets, manufacturing formulas, marketing strategies and
other confidential programs and information from competitors. b. to protect its
personal interests
c. to guard the company’s investors information
d. to prevent nuisance to the work purpose of the employee
Rationale: In the case of Duncan Association of Detailman- PTGWO vs. Glaxo Welcome
Philippines, Inc., the Supreme Court passed on the validity of the policy of a pharmaceutical
company prohibiting its employees from marrying employees of any competitor company. It
held that Glaxo has a right to guard its trade secrets, manufacturing formulas, marketing
strategies and other confidential programs and information from competitors. It considered
the prohibition against personal or marital relations with employees of competitor companies
upon Glaxo’s employees reasonable under the circumstances because relationships of that
nature might compromise the interests of Glaxo.
83. Statement 1: The protection given to labor in our jurisdiction is vast and extensive that
we cannot prudently draw inferences from the legislature’s silence that married
persons are not protected under our Constitution and declare valid a policy based on a
prejudice or stereotype.
Statement 2: Thus for failure of petitioners to present undisputed proof of a
reasonable business necessity, the Court ruled that the questioned policy is an invalid
exercise of management prerogative.
a. True, True
b. True, False
c. False, False
d. False, True
Rationale: In the case of Star Paper Corp. vs. Simbol, the protection given to labor in our
jurisdiction is vast and extensive that we cannot prudently draw inferences from the
legislature’s silence that married persons are not protected under our Constitution and declare
valid a policy based on a prejudice or stereotype. Thus for failure of petitioners to present
undisputed proof of a reasonable business necessity, the Court ruled that the questioned
policy is an invalid exercise of management prerogative.
84. Which of the following are correct as stated by the Non-Employment Provision?
Statement 1: The EMPLOYEE further undertakes that during his/her engagement with
EMPLOYER and in case of separation from the Company, whether voluntary or for cause,
he/she shall not, for the next THREE (3) years thereafter, engage in or be involved with any
corporation, association or entity, whether directly or indirectly, engaged in the same business
or belonging to the same pre-need industry as the EMPLOYER.
Statement 2: Any breach of the foregoing provision shall render the EMPLOYER liable to the
EMPLOYER in the amount of One Hundred Thousand Pesos (P100.000.00) for and as
liquidated damages.
a. Statement 1 is True and Statement 2 is False
b. Only Statement 2 is False
c. Statement 1 is False and Statement 2 is True
d. Both statements are False
RATIONALE: NON-INVOLVEMENT PROVISION – The EMPLOYEE further

undertakes that during his/her engagement with EMPLOYER and in case of separation from
the Company, whether voluntary or for cause, he/she shall not, for the next TWO (2) years
thereafter, engage in or be involved with any corporation, association or entity, whether
directly or indirectly, engaged in the same business or belonging to the same pre-need
industry as the EMPLOYER. Any breach of the foregoing provision shall render the
EMPLOYER liable to the EMPLOYER in the amount of One Hundred Thousand Pesos
(P100.000.00) for and as liquidated damages.”
85. In 2007 case of Daisy B. Tiu vs. Platinum Plans Philippines, Inc, Supreme Court held
that
Non-Involvement Clause is
a. a non-involvement clause is not necessarily void for being in restraint

of trade as long as there are reasonable limitations as to time, trade and
place.
b. a non-involvement clause is necessarily void for being in restraint of trade
as long as there are reasonable limitations as to time, trade and place.
c. a non-involvement clause is necessarily valid for being in restraint of trade

as long as there are reasonable limitations as to time, trade and place
d. a non-involvement clause is not necessarily valid for being in restraint of
trade as long as there are reasonable limitations as to time, trade and place
RATIONALE: In affirming validity of the Non-Involvement Clause, the Supreme Court

ruled that a non-involvement clause is not necessarily void for being in restraint of trade as
long as there are reasonable limitations as to time, trade and place.
86. In the case mentioned above, Non-Involvement Clause has limitation,
a. It is also limited as to trade, since it gives petitioners freedom from

engaging business with the respondents.
b. It is also limited as to trade, since it only prohibits petitioner from
engaging in any pre-need business akin to repondent’s.
c. It is also limited as to trade, since it only allows petitioner from engaging
in any pre-need business akin to repondent’s.
d. It is also limited as to trade, as the petitioner bounds herself to fulfill not

only what was expressly stipulated in the contract, but also all its consequences
that were not against good faith, usage and law.
RATIONALE: In this case, the non-involvement clause has a time limit: two years from the
time petitioner’s employment with respondent ends, It is also limited as to trade, since it only
prohibits petitioner from engaging in any pre-need business akin to repondent’s.
87. What are the certain prohibitions that an employer may insist on an agreement
with the employee after the termination of their employer-employee
relationship?
a. Confidentiality and Non-Disclosure Clause
b. Non-Recruitment or Anti-Piracy Clause
c. Non-Solicitation Clause
d. All of the above
Rationale: The employer, in the exercise of its prerogative, may insist on an agreement with
the employer for certain prohibitions to take effect after the termination of their
employeremployee relationship. The following stipulations in an employment are illustrative
of the prohibitions normally agreed upon by the employer and employee: a) Non-Compete
Clause b) Confidentiality and Non-Disclosure Clause c) Non-Solicitation Clause d) Non-
Recruitment or Anti-Piracy Clause e) Inventions Assignment Clause (Intellectual Property
Clause).
88. True or False
Statement I: the no-spouse policy could be a valid exercise of management prerogative

provided it reflects an inherent quality reasonably necessary for satisfactory job performance.
Statement II: To justify a bona fide occupational qualification (BFOQ) the employer must
prove that the employment qualification is reasonably related to the essential operation of the
job involved; and that there is a factual basis for believing that all or substantially all persons
meeting the qualification would be unable to properly perform the duties of the job.
a. True, False
b. False, False
c. True, True
d. False, true
Rationale: the no-spouse policy could be a valid exercise of management prerogative provided
it reflects an inherent quality reasonably necessary for satisfactory job performance and the
employer has the burden to prove the existence of this reasonable business necessity. To justify
BFOQ the employer must prove two factors: that the employment qualification is reasonably
related to the essential operation of the job involved; and that there is a factual basis for
believing that all or substantially all personsmeeting the qualification would be unable to
properly perform the duties of the job.
89. In the case of Del Castillo vs. Richmond, the employee was restricted from
opening, owning or having any connection with any other drugstore within a
radius of four miles from the employer’s place of business during the time the
employer was operator his drugstore. The court upheld this as?
a. Void for being unreasonable restraint

b. Contrary to public policy
c. Legal, reasonable, and not contrary to public policy
d. None of the choices
Rationale: In Del Castillo vs. Richmond, we upheld a similar situation as legal, reasonable,
and not contrary to public policy. In the said case, the employee was restricted from
opening, owning or having any connection with any other drugstore within a radius of four
miles from the employer’s place of business during the time the employer was operating
his drugstore. We said that a contract in restraint of trade is valid provided there is a
limitation upon either time or place and the restraint upon one party is not greater that the
protection the other party requires.
90. In this case, the court declared a similar stipulation as void for being
unreasonable restraint of trade.
a. Consulta vs. Court of Appeals

b. G. Martini, Ltd. vs. Glaserman
c. Del Castillo vs. Richmond
d. Daisy B. Tiu vs. Platinum Plans Philippines, Inc.
Rationale: In G. Martini, Ltd. vs. Glaserman, we also declared a similar stipulation as void
for being an unreasonable restraint of trade. There, the employee was prohibited from
engaging in any business similar to that of his employer for a period of one year. Since the
employee was employed only in connection with the purchase and export of abaca, among
the many businesses of the employer, the Court considered the restraint too broad since it
effectively prevented the employee from working in any other business similar to his
employer even if his employment was limited only to one of its multifarious business
activities.
91. In Consulta vs. Court of Appeals, a non-involvement clause was considered in

accordance with?
a. Article 1306 of the Civil Code

b. Article 282 of the Labor Code
c. Article 136 of the Labor Code
d. Article 129 of the Revised Penal Code
Rationale: In Consulta vs. Court of Appeals, we considered a non-involvement clause in

accordance with Article 1306 of the Civil Code. While the complainant in that case was an
independent agent and not an employee, she was prohibited for one year from engaging
directly or indirectly in activities of other companies that compete with the business of her
principal. We noted therein that the restriction did not prohibit the agent from engaging in
any other business, or from being connected with any other company, for as long as the
business or company did not compete with the principal’s business. Further, the prohibition
applied only for one year after the termination of the agent’s contract and was therefore a
reasonable restriction designed to prevent acts prejudicial to the employer.
92. A post-employment prohibition where all the records and documents and all
information pertaining to employer’s business or affairs or any of its affiliated
companies are confidential and no unauthorized disclosure or reproduction shall
be made by an employee any time during or after employment.
a. Reasonable Restraint of Trade

b. Non-involvement clause
c. Non-disclosure of Company Information and/or Documents
d. None of the choices
RATIONALE:
Non-disclosure of Company Information and/or Documents:
A mandatory obligation that all the records and documents and all information pertaining to
employer’s business or affairs or any of its affiliated companies are confidential and no
unauthorized disclosure or reproduction shall be made by an employee any time during or after
employment. To enforce such confidentiality clause and in order to ensure strict compliance of
the confidentiality clause, the employer may insert a provision allowing the latter to enforce
liability for damages and forfeiture of forms of compensation including commissions and
incentives, against the erring employee in the event of breach.
93. Most of the employment contracts or agreements, has non-compete clause

mandatory to resigned or terminated employees for a period of _______ years
from separation.
a. one (1) to two (2)

b. two (2) to three (3)
c. three (3) to four (4)

d. five (5)
RATIONALE:
A non-compete clause provides that an employee shall not work or engage in work for
whatsoever capacity, either as an employee, agent or consultant with any person whose
business is in direct competition with the company for a reasonable period from date of
resignation or termination. Most of the employment contracts or agreements has non-compete
clause mandatory to resigned or terminated employees for a period of one (1) to two (2) years
from separation.
94. It is a ________ obligation that all the records and documents and all
information pertaining to employer’s business or affairs or any of its affiliated
companies are confidential and no _______ disclosure or reproduction shall be
made by an employee any time during or after employment. To enforce such
confidentiality clause and in order to ensure strict compliance of the
confidentiality clause, the employer may insert a provision allowing the latter
to enforce liability for damages and forfeiture of forms of compensation
including commissions and incentives, against the erring employee in the event
of breach.
a. Mandatory, authorized
b. Compulsory, authorized
c. Mandatory, unauthorized
d. Compulsory, unauthorized
RATIONALE:
Non-disclosure of Company Information and/or Documents:
A mandatory obligation that all the records and documents and all information pertaining to
employer’s business or affairs or any of its affiliated companies are confidential and no
unauthorized disclosure or reproduction shall be made by an employee any time during or
after employment. To enforce such confidentiality clause and in order to ensure strict
compliance of the confidentiality clause, the employer may insert a provision allowing the
latter to enforce liability for damages and forfeiture of forms of compensation including
commissions and incentives, against the erring employee in the event of breach.
95.
In this case, the Supreme Court ruled that a contract of employment expressly p
rohibiting an employee from having a relationship with an employee of a compet
itor company is valid exercise of management prerogative. a. The Duncan Case
b. Star Paper Corp. vs. Simbol case
c. The PT &T Case
d. .Daisy B. Tiu vs. Platinum Plans Philippines, Inc Case
Rationale:
Duncan Association of Detailman – PTGWO v. Glaxo Welcome Philippines, Inc. GR
No. 162994, Sept. 17, 2004: The Supreme Court ruled that this stipulation is a valid exercise
of management provocative. The prohibition against personal or martial relationships with
employees of competitor-companies upon its employees is reasonable under the circumstances
because relationships of that nature might compromise the interest of the company. In laying
down the assailed company policy, the employer only aims to protect its interest against the
possibility that a competitor company will gain access to its trade secrets, manufacturing
formulas, marketing strategies and other confidential programs.
96. Which of the following statements are true about involuntary resignation?
Statement I: It is a termination initiated by the employer based on crime committed against
the employee or his/her family.
Statement II: It is a termination initiated by the employee based on inhuman and unbearable
treatment given by the employee.
Statement III: It is a termination initiated by the employee based on serious insult to the honor
and insult of the employee.
Statement IV: It is a termination initiated by the employee based on crime committed against
the employee or his/her family.
a. All Statements are true
b. I and III
c. II and III
d. III and IV
Rationale:
Involuntary resignation is a termination initiated by the employee based on the
following just causes:
2. inhuman and unbearable treatment given by the employer;
3. crime committed against the employee or his/her family; or

97. Which of the following refers to the doctrine wherein every employer has the inherent
right to regulate, according to his own discretion and judgment, all aspects of
employment, including hiring, work assignments, working methods, the time, place and
manner of work, work supervision, transfer of employees, lay-off of workers, and

discipline, dismissal, and recall of employees?
a. Doctrine of employer prerogative
b. Doctrine of management superiority
c. Doctrine of management prerogative
d. Doctrine of employer prerogative
Rationale:
Under the doctrine of management prerogative, every employer has the inherent right to
regulate, according to his own discretion and judgment, all aspects of employment,
including hiring, work assignments, working methods, the time, place and manner of
work, work supervision, transfer of employees, lay-off of workers, and discipline,
dismissal, and recall of employees. The only limitations to the exercise of this
prerogative are those imposed by labor laws and the principles of equity and substantial
justice.
98. Which of the following is also known as the Statutory Due Process Rule?
a. Wenphile Doctrine (1989)
b. Serrano Doctrine (2000)
c. Agabon Doctrine (2004)
d. Abbott Laboratories Doctrine (2013)
Rationale:
Agabon Doctrine (2004): Statutory Due Process Rule
Abandoned the Serrano Doctrine and reverted to Wenphil Doctrine. Where the dismissal is
for just cause, the lack of statutory due process should not nullify the dismissal nor render it
ineffectual. The employee is entitled to nominal damages amounting to Php 30,000.
99. Which of the following statements are correct?
Statement I: Retirement benefits are mandated by law.

Statement II: Retirement benefits are intended to help the employee enjoy the
remaining years of his life.
A. Both statements are correct.

B. Only statement II
C. Both statements are incorrect.
D. Only statement I
Rationale: Retirement benefits, where not mandated by law, may be granted by agreement of
the employees and their employer or as a voluntary act on the part of the employer. Retirement
benefits are intended to help the employee enjoy the remaining years of his life, lessening the
burden of worrying for his financial support, and are a form of reward for his loyalty and service
to the employer.
100. An employee who is retired pursuant to a bonafide _________ or in accordance

with the applicable individual or ____________ or established employer _________ shall
be entitled to all the retirement benefits provided therein or to termination pay.
A. Policy; CBA; Retirement Plan

B. Retirement Plan; Policy; CBA
C. CBA; Policy; Retirement Plan
D. Retirment Plan; CBA; Policy
Rationale: Book VI, Section 14, Rule 1, of the Omnibus Rules Implementing the Labor Code,
which provides as follows:
(a) An employee who is retired pursuant to a bonafide retirement plan or in accordance with
the applicable individual or collective agreement or established employer policy shall be
entitled to all the retirement benefits provided therein or to termination pay equivalent to at
least one-half month salary for every year of service, whichever is higher, a fraction of at least
six (6) months being considered as one whole year.

LABOR LAW MCQs Week 1 17

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LABOR LAW MCQs Week 1 17

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LABOR LAW 1 MCQ (Week 1-17)

JD 2 SP-B Class Mayor: Glenie Jen Ulban

JD 2 SP-B (Week 1-2; items 1-50)

1. I. In the case of Coca-Cola Bottlers Philippines Incorporated v. NLRC, G.R. nos.

d. I is true and II is false

In the case of THE CONFERENCE OF MARITIME MANNING AGENCIES, INC., CASE

a. the safety and decent living of the laborer.

b. The safety and decent living of the employer.

c. All of the above

d. None of the above

c. I Neither true nor false

4. These are the four elements of an employer-employee relationship, except:

RATIONALE: The four (4) elements of an employer-employee relationship are as follows:

5. Statement I: The important element in employer-employee relationship is the employer's

a. Both I and II are true

6. In the following cases, the employment relationship is deemed suspended by express

I. In case of imposition of punitive suspension of an employee who is undergoing an

A. Only statement I is true

RATIONALE: The definitions in statements 1 and 2 are interchanged.

I. Government employees, Managerial employees, and Field personnel;

A. Article 302 [287]

RATIONALE: The existence of employer-employee relationship is necessary. Without this

10. True or False

❖ Bona-fide suspension by the employer of the employer of the operation of his

a. favor of the safety and decent living for the laborer

c. favor against the state

d. favor of protection of equality

13. Serano Doctrine implies that;

RATIONALE: Serrano doctrine , Ineffectual Dismissal

14. Strike focuses on;

a. publicizing the labor dispute

d. None of the above

RATIONALE: Strike and picketing on publicizing the labor dispute

To strike is to withhold or to stop work by concerted action of the employees as a result of an

a. control test, right to control, actual exercise of the right

a. Only statement 1 is correct

a. examined, economic, relationship

A. Article II, Section 3

B. Article III, Section 4

C. Article III, Section 3

D. Article II, Section 4

19. No involuntary servitude in any form shall exist except jkkjbbb

A. As payment for punishment

B. As payment for debt

C. As a punishment for crime

D. As punishment for felony

20. A laborer's wages shall be paid in .

A. Any form of currency, both local or foreign.

B. Full or partial every month.

D. None of the above

a. Both Statements are True

a. selection and engagement of the employee

RATIONALE:The four (4) elements of an employer-employee relationship are as follows:

(a) Selection and engagement of the employee;

(a) the “actual exercise” of the right.

(b) Payment of wages

(c) Power of dismissal

(e) Selection and engagement of the employee

RATIONALE: 4 Elements/tests of an employer-employee relationship

(a) Selection and engagement of the employee;

(b) Payment of wages;

(c) Power of dismissal; and

(a) Field personnel