LABOR LAW 1 – LABOR STANDARDS (FINALS SAMPLEX)
Professor: Atty. Peter-Joey Usita
A. DISCUSSION
1. Define, then explain briefly the legal significance of
the following: (2016)
A. Wage distortion (2016, 2017)
SUGGESTED ANSWER:
Article 124 of the Labor Code defines wage distortion as
a situation where an increase in the 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.
The employer and the union shall negotiate to correct the
distortions. If there is no union, the employer and the
workers shall endeavor to correct such distortions.
B. Labor-only contracting
SUGGESTED ANSWER:
Under Article 106 of the Labor Code, there is labor-only
contracting when the person supplying workers to an
employer does not have substantial capital or investment
and the workers recruited and placed by such person are
performing activities which are directly related to the
In labor-only contracting, the law creates an employer-
employee relationship for a comprehensive purpose to
prevent the circumvention of labor laws. The principal is
treated as direct employer and becomes solidarily liable with
the contractor not only for unpaid wages but also for all the
rightful claims of the employee under the law.
C. 24-hour duty doctrine
SUGGESTED ANSWER:
Under the 24-hour duty doctrine, members of the national
police by the nature of their functions are technically on duty
24 hours a day except when they are on vacation leave.
Death arising from police service, although not in official line
of duty is compensable.
For the purpose of determining compensability of injury or
death, soldiers and policemen and even firemen, by the
nature of their work, may be considered on duty round-the-
clock. But this doctrine, while it relaxes the workplace factor,
does not dispense with the work-connection requisite.
D. Solo parent
SUGGESTED ANSWER:
The term solo parent refers to a woman who gives birth as
a result of rape and other crimes against chastity; a parent
left solo or alone with the responsibility of parenthood by
reason of death or incapacity of, or abandonment, by
spouse, annulment or declaration of nullity of their marriage,
or their legal separation; or any other person who solely
provides parental care and support to a child or children; or
any family member who assumes the responsibility of head
of the family.
A parental leave of not more than 7 working days every year
shall be given to a solo parent who has rendered service of
at least 1 year. This leave shall be non-cumulative.
E. Principle of aggravation
SUGGESTED ANSWER:
2. How is wage distortion fixed? (2017)
SUGGESTED ANSWER:
Under Article 124 of the Labor Code, the employer and the
union shall negotiate to correct the distortions. Any dispute
arising therefrom should be resolved through grievance
procedure under their CBA. If the dispute remains
unresolved, it shall be resolved through voluntary arbitration.
If there is no union, the employer and the workers shall
endeavor to correct such distortions. Any dispute arising
therefrom should be resolved through National Conciliation
and Mediation Board (NCMB). If it remains unresolved after
10 days, it shall be referred to the NLRC.
The formula for resolving wage distortion is as follows:
Existing Prescribed
Min. Wage = % x Wage = Distortion Adjustment
Actual Salary Increase
3. Discuss the benefits provided under the Limited
Portability Law. (2017)
SUGGESTED ANSWER:
R.A. 7699 of the Limited Portability Law applies to all
worker-members of the SSS and/or GSIS who transfer from
one sector to another and who wish to retain their
membership in both systems.
The creditable services or contributions in both systems shall
be credited to their service or contribution record in each
system, and totalized for the purposes of old-age disability,
survivorship, and other benefits in case the covered member
does not qualify for any benefits for SSS or GSIS benefits in
either or both systems without totalization.
Benefits to be paid by the system shall be in proportion to
the number of contributions actually remitted to that system.
All contributions paid by such member personally, and those
that were paid by his employers to both systems (SSS and
GSIS) shall be considered in the processing of benefits
which he can claim from either or both systems.
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LABOR LAW 1 – LABOR STANDARDS (FINALS SAMPLEX)
Professor: Atty. Peter-Joey Usita
4. What is “bonus”? When may it be legally
demandable? (2017)
SUGGESTED ANSWER:
5. When is contracting or subcontracting considered
legitimate under DOLE Administrative Order 18-A,
Series of 2011? (2013)
SUGGESTED ANSWER:
*Under DOLE Administrative Order 174, Series of 2017,
contracting or subcontracting shall only be allowed if ALL of
the following circumstances concur:
(1) The contactor or subcontractor is engaged in a distinct
and independent business and undertakes to perform
the job or work on its own responsibility, according to its
own manner and method;
(2) The contractor or subcontractor has substantial capital
and/or investment
(3) The contractor or subcontractor is free from control
and/or direction of the principal in all matters
connected with the performance of the work except as
to the results thereof; and
(4) The Service Agreement ensures compliance with all the
rights and benefits for all the employees of the
contractor or subcontractor under labor laws.
[*substantially the same as DOLE AO No. 18-A, except as to
#1 – previously “must be registered in accordance with the
rules”]
6. What is “compassionate visit”? (2013)
SUGGESTED ANSWER:
When a migrant worker is hospitalized and has been
confined for at least 7 consecutive days, he shall be
entitled to a compassionate visit by 1 family member or a
requested individual.
The insurance company shall pay for the transportation
cost of the family member or requested individual to the
major airport closest to the place of hospitalization of
the worker. It is, however, the responsibility of the family
member or requested individual to meet all visa and travel
document requirements.
7. What is the “going and coming rule”? Give the
exceptions to the rule. (2013)
SUGGESTED ANSWER:
As a general rule, in the absence of special circumstances,
the injury sustained by an employee in, going to or coming
from, his place of work is not compensable.
The exceptions, in which the injury is compensable, are:
(1) When the injury is sustained when the employee is
proceeding to or from his work in the premises of the
employer;
(2) Ingress-Egress/Proximity Rule – where the employee
is about to enter or about to leave the premises of his
employer by way of the exclusive or customary means
of ingress or egress.
(3) Special Errand Rule – where the employee is charged,
while on his way to or from his place of employment or
at his home, or during his employment, with some duty
or special errand connected with his employment.
(4) Extra-premises Rule/The Shuttle Bus Rule – where
the employer, as an incident to the employment,
provides the means of transportation to and from the
place of employment.
8. Explain the “no double recovery rule” under the State
Insurance Fund. (5pts.)
SUGGESTED ANSWER:*
The injured employee cannot claim payment twice for the
same injury from both the third party and the GSIS or SSS,
as the case may be.
Simultaneous recovery under the Labor Code and the Civil
Code cannot be made. The action is selective and the
employee may choose to file the claim under either. But
once the election is made, the claimant cannot opt for the
other remedy.
Note, however, that simultaneous recovery under the Labor
Code and the SSS can now be made since PD 1921 has
lifted the ban on simultaneous recovery.
9. What is compressed workweek? (2013)
SUGGESTED ANSWER:
Compressed Work Week (CWW) is an alternative
arrangement whereby the normal workweek is reduced to
less than six (6) days but the total number of hours per week
remains at 48 hours. The normal workday is increased to
more than 8 hours but not to exceed 12 hours without
corresponding overtime pay.
To be valid, the CWW scheme must be expressly and
voluntarily supported by majority of the employees affected.
If the work is hazardous, a certification is needed that work
beyond 8 hours is within the limits of exposure set by
DOLE’s occupational safety and health standards. The
DOLE must also be duly notify thereof.
10. a. Discuss the duty of the employer in connection
with the meal periods of his employees. (2013)
SUGGESTED ANSWER:
Article 85 of the Labor Code provides that subject to such
regulations as the Secretary of Labor may prescribe, it shall
be the duty of every employer to give his employees not less
than sixty minutes time-off for their regular meals.
It is non-compensable except where during the meal
period, the laborers are required to standby for emergency
work, or said meal hour is not one of complete rest, such
period is considered overtime hours worked.
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LABOR LAW 1 – LABOR STANDARDS (FINALS SAMPLEX)
Professor: Atty. Peter-Joey Usita
b. May the employer shorten the meal period to less
than one (1) hour? Explain. (2013)
SUGGESTED ANSWER:
Yes. The employer may shorten the meal period to less than
1 hour, but should not be less than 20 minutes and the
shortened mealtime must be with full pay, under the
following instances:
(1) Where the work is non-manual work in nature and
does not involve strenuous physical exertion;
(2) Where the establishment regularly operates not
less than 16 hours a day;
(3) In cases of actual or impending emergencies or
there is urgent work to be performed on
machineries, equipment or installations to avoid
serious loss which the employer would otherwise
suffer; or
(4) Where the work is necessary to prevent serious
loss of perishable goods.
B. DISTINGUISH BETWEEN:
1. Labor-only contracting and job contracting. (2017)
SUGGESTED ANSWER:
2. Paternity and Maternity Leave Benefits (2016)
SUGGESTED ANSWER:
Paternity leave benefits of 7 days with full pay are
granted to every married male employee in the private
sector for the first four deliveries or miscarriages by his
lawful spouse under such terms and conditions as provided
by law.
On the other hand, maternity leave benefits of 60
days(normal delivery) or 78 days(caesarian delivery) with
full pay are granted to a female employee for her first four
deliveries or miscarriages. To be entitled thereto, she need
not be legally married, and must have paid for at least 3
monthly contributions in the 12-month period immediately
preceding the semester of her childbirth or miscarriage.
3. Facilities and Supplements (2013, 2016)
SUGGESTED ANSWER:
Facilities shall include items of expense necessary for the
laborer and his family’s existence and subsistence. These
are part of the wages and are, therefore, deductible
therefrom.
On the other hand, supplements are items which constitute
extra remuneration or special privileges or benefits given to
or received by the laborer over and above his ordinary
earnings or wages. These are independent of the wage and
are, therefore, not deductible therefrom.
4. Workmen’s Compensation Act and Employees
Compensation Law (2016)
SUGGESTED ANSWER:
5. Overtime pay from Premium pay (2013)
SUGGESTED ANSWER:
Overtime pay refers to the additional compensation required
by law for work performed beyond eight hours a day.
On the other hand, premium pay refers to the additional
compensation required by law for work performed within
eight hours on non-working days, such as rest days and
regular and special holidays.
B. ENUMERATION
1. What are the benefits of a solo parent? (2017)
SUGGESTED ANSWER:
R.A. 8972 or the Solo Parents’ Welfare Act grants to a solo
parent a parental leave of not more than 7 working days
every year, provided that the solo parent employee has
rendered service of at least 1 year.
It also provides for the prohibition on employers to
discriminate against any solo parent employee with respect
to terms and conditions of employment on account of his/her
status.
Moreover, the employers are also mandated to provide for
flexible work schedule for solo parents, but the same
should not affect the individual and company productivity.
2. What are the benefits of a senior citizen? (2017)
SUGGESTED ANSWER:
3. Enumerate the benefits that may be enjoyed by a
domestic worker under the new Kasambahay Law.
(2013, 2016, 2017)
SUGGESTED ANSWER:
Under the new Kasambahay Law, a kasambahay is entitled
to the following: (MOB-SIR-PABLO)
(1) Minimum wage
(2) Other mandatory benefits such as Service Incentive
Leave (SIL) and 13th month pay
(3) Basic necessities including board, lodging and medical
attendance
(4) Coverage under SSS, PhilHealth and Pag-IBIG laws
(5) Freedom from employer’s Interference in disposal of
wages
(6) Right to exercise Religious beliefs and cultural
practices
(7) Right to Privacy in all forms of communication and
personal effects
(8) Freedom from Abuse or any form of physical violence
or harassment or any act tending to degrade the dignity.
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LABOR LAW 1 – LABOR STANDARDS (FINALS SAMPLEX)
Professor: Atty. Peter-Joey Usita
(9) Opportunity to finish Basic education and access to
alternative learning systems.
(10) Right to join a Labor organization of his own choosing
for mutual aid and collective negotiation.
(11) Access to Outside communication during free time, or
even during work time in case of emergency.
4. What are the liabilities of a principal in job
contracting? (2017)
SUGGESTED ANSWER:
5. What are the legal grounds when the State Insurance
Fund may validly deny a claim for compensation made
by a covered employee or his dependents? (2013, 2016,
2017)
SUGGESTED ANSWER:
Art. 178 of the Labor Code provides that the State
Insurance Fund shall be liable for compensation to the
employee or his dependents, except when the disability or
death was occasioned by the employee’s:
(1) Intoxication,
(2) Willful intention to injure or kill himself or another,
(3) Notorious negligence, or
(4) Otherwise provided under Book 4, Title II of the Labor
Code.
C. HYPOTHETICAL QUESTIONS
1. May the employer change of meal time from 1 hour
paid to 1 hour unpaid. (2017)
SUGGESTED ANSWER:
2. The labor union’s chief manager worked overtime to
“fix” wages. Employer said the overtime hours worked
are not compensable because he could have fixed it not
at that time. (2017)
SUGGESTED ANSWER:
3. Did the Labor Code provisions on the retirement pay
expand the term “one half (1/2) month salary” because it
means 15 days’ pay plus a full 13th month pay? (2016,
2017)
SUGGESTED ANSWER:
No. Article 287 of the Labor Code, as amended by R.A.
7641, expanded the concept of one-half month salary from
the usual one-month salary divided by 2 because the term
shall include:
a. 15 days salary of the employee based on his latest
salary rate;
b. The cash equivalent of not more than 5 days of service
incentive leave (SIL);
c. 1/12 of the 13th month pay due the employee; and
d. All other benefits that the employer and employee may
agree upon
Consequently, as established in Serrano v. Severino Santos
Transit, the term one-half (½) month salary shall be
computed for 22.5 days for every year of service.
4. Are learners paid 25% less than the minimum wage
while apprentices are paid 100%? (2017)
SUGGESTED ANSWER:
5. A is residing in QC but works in Mendiola. While
waiting for a bus in Marilao, he got swiped by a taxi. Is
the death/injury suffered by A compensable? (2017)
SUGGESTED ANSWER:
6 A employed the services of B in his computer shop
business. During the period of employment, A shot B. Is
the death of B compensable? (2017)
SUGGESTED ANSWER:
7. F, single and living-in with G (legally separated from
his wife) is pregnant with her fifth child. She applied for
maternity leave but her employer refused the application
because she is not married. Decide. (2016, 2017)
SUGGESTED ANSWER:
The employer may refuse F’s application for maternity leave,
but not on the ground that she is not married.
Maternity leave benefits of 60 days(normal delivery) or 78
days(caesarian delivery) with full pay are granted to a
female employee for her first four deliveries or miscarriages.
To be entitled thereto, she need not be legally married, and
must have paid for at least 3 monthly contributions in the 12-
month period immediately preceding the semester of her
childbirth or miscarriage.
In the case at bar, F is pregnant with her fifth child. Since
maternity leave benefits are given only for the first four
deliveries or miscarriage, F is not entitled thereto and the
employer may validly refuse her application therefor.
8. Marikina Shoe Company employs 20 laborers and 2
supervisors. It also employed the services of carpenters
and welders for the fixing of the roof of its building.
A. Who are covered by the SSS Law? (2017)
SUGGESTED ANSWER:
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LABOR LAW 1 – LABOR STANDARDS (FINALS SAMPLEX)
Professor: Atty. Peter-Joey Usita
B. Who are entitled to 13th month pay? (2017)
SUGGESTED ANSWER:
P.D. 851 or the 13th Month Pay Law provides that, as a
general rule, all rank-and-file employees regardless of the
amount of basic salary that they receive in a month, if their
employers are not otherwise exempted from paying the 13th
month pay. Such employees are entitled to the 13th month
pay regardless of their designation or employment status,
and irrespective of the method by which their pages are
paid, provided that they have worked for at least 1 month
during a calendar year.
The said benefit under P.D. 851, however, does not apply to
government employees, employees paid purely on
commission basis, and employees already receiving 13th
month pay.
9. B, a building contractor, entered into a contract with
CDE Insurance Company for the construction of the
latter’s new five-storey office building. In connection
with the aforesaid contract, B hired carpenters, masons
and laborers. (2013, 2016)
A. What are the factors in determining whether CDE
Insurance Company may be considered an “indirect
employer” of the workers of B?
SUGGESTED ANSWER:
For CDE to be considered as the indirect employer of the
workers of B, the following factors shall be considered:
(1) Whether or not B is engaged in a distinct and
independent business and undertakes to perform the
job or work on its own responsibility, according to its
own manner and method;
(2) Whether or not B has substantial capital and/or
investment
(3) Whether or not B is free from control and/or direction
of CDE in all matters connected with the performance of
the work except as to the results thereof; and
(4) The Service Agreement ensures compliance with all the
rights and benefits for all the employees of B under
labor laws.
If all the said considerations are answered in the affirmative,
there is a legitimate job contracting or subcontracting and
consequently, CDE is considered as the indirect employer of
the workers of B.
B. May CDE Insurance Company be held liable for
unpaid wages and other monetary claims of B’s
workers? Explain.
SUGGESTED ANSWER:
We must distinguish. Article 106 of the Labor Code
provides that In the event that the contractor or
subcontractor fails to pay the wages of his employees in
accordance with this Code, the employer shall be jointly and
severally liable with his contractor or subcontractor to such
employees to the extent of the work performed under the
contract, in the same manner and extent that he is liable to
employees directly employed by him.
The liability, however, does not extend to the payment of
backwages and separation pay of employees who were
constructively or illegally dismissed by the contractor.
10. The projected bonus for the employees of H
Company was 30% of their monthly compensation.
Unfortunately, due to the slump in the business, the
president unilaterally reduced the bonus to 5% of their
compensation. (2016)
A. As counsel for the company, explain the legal
justification(s) for the president’s action.
SUGGESTED ANSWER:
B. As counsel for the employees, explain the legal
ground(s) for your opposition to the president’s action.
SUGGESTED ANSWER:
11. J, a project worker, was being assigned by his
employer, K Builders Corporation, to Aparri, Cagayan. J
refused to comply with the transfer claiming that in
effect, he was being constructively dismissed because it
would take him away from his family and his usual work
assignments in Metro Manila. The Labor Arbiter found
that there was no constructive dismissal but ordered the
payment of separation pay due to strained relations
between the parties, plus attorney’s fees equivalent to
twenty percent (20%) of the value of J’s separation pay.
Is the award of attorney’s fees valid? Explain your
answer. (2016)
SUGGESTED ANSWER:
12. The DOLE Regional Director does not have
jurisdiction over money claims arising from employer-
employee relationship if such claims exceed P5,000.00.
Do you agree? Explain. (2016)
SUGGESTED ANSWER:
13. Y Company, which employs more than 100 workers
in its vast car assembly plant in Laguna, has 15 foremen
and 15 supervisors, given the power to recommend the
hiring, firing and suspension of warehouse employees.
The ultimate power to hire, fire and suspend however is
vested to the plant personnel manager. Are the foremen
and supervisors considered managerial employees?
Explain. (2013)
SUGGESTED ANSWER:
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LABOR LAW 1 – LABOR STANDARDS (FINALS SAMPLEX)
Professor: Atty. Peter-Joey Usita
It depends. Under the Rules to Implement the Labor Code, proper dispostition. In the death of PO3 Tom Cruz work-
the following conditions must be present for an employee to connected and therefore, compensable? Why? (2013)
be considered as a managerial employee:
SUGGESTED ANSWER:
(1) Their primary duty consists of the management of the
establishment in which they are employed or of a
department or subdivision thereof;
(2) They customarily and regularly direct the work of two or
more employees therein; and
(3) They have the authority to hire or fire other employees
of lower rank; or their suggestions and
recommendations as to the hiring and firing, and as to
the promotion and other change of status of other
employees, are given particular weight.

In the case at bar, the foremen and supervisors are given

the power to recommend the hiring, firing and suspension of
employees. Should their recommendation are given weight
by the plant personnel manager, and if their primary duty
consists of the management of the establishment and they
customarily and regularly direct the work of two or more
employees therein, they are considered as managerial
employees.

Otherwise, if any of the conditions set forth by the

Implementing Rules is absent, then the foremen and
supervisors are not considered as managerial employees.

14. X, a nurse employed by the Ospital ng Maynila,

works for eight (8) hours a day, six (6) days a week. Is
she entitled to overtime pay? Explain. (2013)

SUGGESTED ANSWER:
No. X is not entitled to overtime pay. Health personnel in
government services are excluded from the coverage of
Arts. 82-96 of the Labor Code. Their employment benefits
are governed by R.A. 7305 or Magna Carta of Public
Health Workers.

Supposing, however, that X is within the coverage of the

Labor Code, Article 87 thereof provides that overtime pay is
paid for work performed beyond 8 hours a day. Since her
work does not exceed 8 hours a day, she is not entitled to
overtime pay.

15. During his employment as chief security officer of

Manila Diamond Hotel, Z was provided with meals,
water, electricity and lodging. Are these items deemed
facilities? (2013)

SUGGESTED ANSWER:

16. PO3 Tom Cruz, a member of the Quezon City Police

District, was shot to death by a Barangay Chairman in
front of the Manila City Hall. The fatal incident stemmed
from a stabbing incident a day earlier between the sons
of PO3 Tom Cruz and the Barangay Chairman. Although
he was supposed to be on duty at Camp Karingal in
Quezon City, PO3 Tom Cruz was accompanying his son
to the Office of Mayor Alfredo Lim for interview and

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