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Page10
Page 4 of 108
5
6
7
8
(d) No, because this amounts to a diminution of
benefits which is prohibited by the Labor Code;
(e) No, because it is a fringe benefit that has
already ripened into a demandable right or
entitlement. (10%)
ALTERNATIVE ANSWER:
(b) Yes, because it is suffering losses for the first
time;
(c) Yes, because this is a management prerogative
which is not due any legal or contractual obligation;

An employer cannot be forced to continue giving a

benefit, being given as a management prerogative,
when it can no longer afford to pay for it. To hold
otherwise, would be to penalize the employer for his
past generosity. (Producer's Bank of the Philippines
v. NLRC, G.R. No. 100701, March 28, 2001)

ALTERNATIVE ANSWER:
(d) No, because this amounts to a diminution of
benefits which is prohibited by the Labor Code;
(e) No, because it is a fringe benefit that has already
ripened into a demandable right or entitlement.

A company practice favorable to employees had

indeed been established and the payments made
pursuant thereto, ripened into benefits enjoyed by
them. And any benefit and supplement being
enjoyed by the employees cannot be reduced,
diminished, discontinued or eliminated by the
employer by virtue of Article 100 of the Labor Code
of the Philippines which prohibits the diminution or
elimination of the employer of the employees'
existing benefits. (Sevilla Trading Co. v. Semana,
G.R. No. 152456, April 28, 2004)
ALTERNATIVE ANSWER:
(b) Yes, because it is suffering losses for the first
time;
(d) No, because this amounts to a diminution of
benefits which is prohibited by the Labor Code. You
cannot compel an employer to continue paying the
benefits if it is suffering from serious business
losses. However, the benefit has already ripened into
an employer practice or policy, and therefore it
cannot be withdrawn without violating Article 100 of
the Labor Code on non-diminution of benefits.
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whom
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organization.
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arguing that Department Managers, Branch Managers, benefits and/or medical care when contingenciesa
the union
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ora
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employees,
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the
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consumer products. clearly agrees but
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employ
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continue and
workers in
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XX,
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ZZ,
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is theanonly can
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LOCKOUT
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certified
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hand,Petition
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security
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For
SCRA it 37O)
negotiated
on August
prerogatives appearedfortoits
30, 1993
lay that
members?
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down XX,and YYexecute
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were
agreement ng rank-and-filers
Mgawhereby Manggagawa theand employertwo sa(2) Pids were
agrees
SUGGESTED
recently
of the sale
policies promoted
or to ANSWER:
of hire, as
the Company's supervisors
transfer, suspend, and
assets to resigned
Lyra Music
lay-off, from
recall, and 2) The
managers.
not toCo. answer
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majority be the
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is not in if
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discharge, But
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employees. theIf(union)their employees
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year after to be
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not act
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powers theirCode
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resignations
to carry Article
September 245)
alone.
outside
out their It provides
30, 1993. represents
the freedom
duties CRP, that all supervisory
Tabaco
national
employees filed
union inunion
a a Motion
PAFLU because
bargaining
and Collective Bargaining Agreement. Bickerings to Dismiss
between confidential
unit. on
its the
National employees,
ground that
President,
managerial
the
period
likewise,employees
after
responsibilities employees incovered
the 1996–2000
requested that are
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by
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employee
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Pakyao,
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separation
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174
pendingSCRA
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asserting Mandatory 388), forbefore
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majority Subjects
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Secretary of
The
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not avail
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ofwere CBA that
by
butalso managerial
benefits
promoting
mayconverted bearesupervisory
required
the three ALTERNATIVE
to cash, (1996)
Labor. ANSWER:
problem, the Company and the three other unions
employees
under
and histhe
employees. law doThat notpay
to have agency
could the
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fees.
viewed interests as as the
rewarding My
SMCT
1) answer
What filed would
an opposition remain the
to the same, said even
Motion if thealleging
personnel.
supervisory
13th-month
employees
pay
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1993.
compose the agreed
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tomatters
hold a are
employees
consent considered
were
election
sought
mandatory
under
to be
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employees for their disloyalty to the union, said the of that the infirmity,
collective bargaining? if any, in the membership of the
supervision
in the
union supervisory
can be
ofremedied
theunion.Bureau in
of pre-election
Labor Relations.
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the employees In the
CBU; Company
union officers. Union vs. Union Shop (2004) SUGGESTED ANSWER:
consent election, Pids and Co, Worker's Union
are
validly
and legally
officers
determining claim
Employment ordismissed.
that
what
members he was
(DOLE)
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still
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government.
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there
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considered
213 was no
SCRA
conciliation 759)
as just cause
ANSWER:
members
hearings to for of their
resolve dismissal.
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the deadlock. staff, and refusing general
SUGGESTED strike
to accept may
ANSWER: be declared
the offer of the bystrikers
workerstotoreturn to
No. The to
ALTERNATIVE
therefore,
Unable employer
aagree
managerial is merely
ANSWER:
despite employee
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primary
DOLE, publicly
Right
A
duty work. toprotest
MANAGERIAL
Under Strike; the the stand
Effects;
EMPLOYEE
set of of factsPresident
illegal in oneArroyo
is strike
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question, that
is vestedthe
mandate
What
a) Theis employer
consists
Magdalo toof afford
involved
called work a thein
cannot employee
the
directly
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unilaterally
related
participated due
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management
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If theispowers
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beexecute
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corporation
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unionright
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exercise this
of much time.
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consumer
their
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the Right the
employees.
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doctrine
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SUPERVISORY iswill be: No work,
illegal. Power
EMPLOYEES, no pay, unless on the
against
knowingly
whose the
primary participated
company duty
strike which Magdalo staged without observing the cannot
in
consists the be
of commission
considered
the management ofa strike
illegal of FACTS:
other
there is
hand,Jenson
an agreement
are & Jenson
those to pay(J
who & J)
strike
in is thea domestic
duration interest pay. of the
Employees;
in
acts.
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If any,
establishment groups
may
indispensable
in be ofdeclared
which employeesfor
they the to
are (1996)
national
have
employed lost
interest, their
or a Right
corporation
employer, to Strike; engaged
effectively illegal strike;
in recommend
the manufacturing Loss such of ofmanagerial
seven-day ban under the Labor Code. Oakwood
1) Who
then theare
employment
subdivision the
assumptionstatus.managerial,
thereof; (Art.
of Jurisdiction
264). supervisory byunder andSecretary
the rank- consumer
Employment
actions, if products. (1994)
the exercise Its rank-and-flle
of such authority workers is not merely
claimed that the strike or being execute
illegal, all those general who
and-file
of Laboremployees?
supervision is not workproper. along Therefore, specializedhe or cannot
technical legally organized
lines routinary
Union A filed theclerical
or Jenson
a Notice inEmployees
nature
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requires the the ause
National dutyof
participated
b) The employer
SUGGESTED
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ANSWER:
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exercise
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or knowledge; Right
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in the independent
SUGGESTED to Strike;
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judgment
and Effects;
union Mediation [Art.illegal
affiliated 212 with
Board(m), strike
PAFLU,
Labor
(NCMB) (2000)a national
Code] of the
be dismissed
1execute
"MANAGERIAL It may as, in fact, they
declare
EMPLOYEE" were
theisstrikers
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who having
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A After
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VOLUNTARY
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of RECOGNITION
aand company as the taunted exclusive
— Uponaisunion thea
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or dispute. under general supervision special Department of Labor Employment.
by Oakwood.
withemployment Decidestatus the case.
SUGGESTED
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prerogatives andtowho laytodo Art.
down not264 and
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bargaining
voluntary
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days of
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after
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When
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Strike;
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union
Department
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as Supreme
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the
members2 recall,
Certification
layoff,
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discharge,NLRCfile anot
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(1995)
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directly or discipline
and theclosely
Labor
in the Arbiter,strike before
related Bargaining
employees
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Agreement
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The strike thorough
vote. with
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Oakwood
SUGGESTED
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CERTIFICATION
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it assures lockout
Art.
they217
Code). the cannot(1995)
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executives of the company, the same, although of union
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products.
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Laguesma, Canthe the
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early
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229 his
SCRA employment
settlement of Chief
its
730, 737 of
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union;
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strike matter Company,
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shall of right
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bargain to collectively.
self-organization,
a public
sufficient (Art. utility,
ground a (1993)
for Labor
status.
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[Art
dispute.Officer
citing 263theFranklin
(Arts. tolabor
(c),
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investigate also
Baker (f); Art
250(d); Gary. 264
Company Labor (a),Code)
Instead Labor
of the of
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managerial
immediately to
245, Labor Code;
termination Strike;employee
petitioned Industries
National Sugar
of his employment, cannot
the Vitalexercise
Secretary
even to
Refineries National
of such
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if a replacement Corp. right;
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submitting tov.theTrajano,
Philippines awarding
investigation, the
157JEU Gary
SCRA CBAfiled Proposals
416, a petition
422-433 to
while
Interest
Employment
vs. NLRC,
had a supervisor
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220toSCRA
hired and
assume
by the452). aemployer
rank andduring
jurisdiction
ALTERNATIVE file and employee certify
such can
lawful the (1988)]."
enjoinas the
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the NLRC.
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following On Code).
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EMPLOYEES, considered
day of the among
strike
under and parties?
Right
a) The to
would appear
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considering
330 SCRA prosecutor illegal that
295, (2000)] Acts
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directs
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Manila. with the participates
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other Page 32 of 108
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{Nagkakaisang
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222
report ofSCRA
SCRA
proceeded the604 676 (1988)
to(1995),
strike vote;ruled
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(2)those
all is also of violence,
who government
number
unfair
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Eventually,laborof124 Supreme
practice
operations.
its SCRA
members and
Court
448 shall
decisions,
not be the
(1983);
informed strikeable.
it has
Free ruled
Telephone
company No of
important to in
intimidation
participated emphasize
orthe strike that
coercion asand the blockade
having return lost to theirwork order
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Workers or defiance
lockout
intentionUniontov.may by
PLDT,
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113work. of a(10%)
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1/3
reinstatement ofactually
Work
the total take
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their place
(1996)
positions only after
uponathe
of rankand-file
In Baguio
Being
SUGGESTED
Notice of Colleges
executory
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DOLE. v. NLRC, there
Theywas 222 nothing
barricaded 30-day
A deadlock
employees
termination waiting period
ofinSuper
in the thestrike after(Insular
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Stores, notice Inc.,was for
agitated
Life filed for
the collective
Assurance hisa fellow Co.
SCRA
1) for604
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company Company's(1993)
thegates partiesand the toCourt
action do isbut
damaged ruled:
valid. implement Any
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corporation
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shall any
to
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497
service. boat
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action ANSWER:
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with
for is theis
a union
permitted
damages
industrial
not Househelpers
under which
or the caused
or suffered
has
agricultural
compulsory by
not
(2000) their
presented
to work,
enterprise employees
coverage withany
at a
of or
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nature
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legitimate industry."
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139parts. of Employment;
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ABC & Co. majority within
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is includes Employee
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right
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principle
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LABOR STANDARDS
an
paid
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SUGGESTED
provisions
performance their
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boatmen.
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alleged
activities have It
As could the
such,
Department
usually be
power a
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necessaryboatmenpromote,
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DOLE the
are
and Employment;
of
bank hiring,
corporation legally payment
is an Aliens;
consider of
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separate
the power and
caretaker, (1995)
to
distinctdismiss
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duty
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Department
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days
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FACTS: Teofilo was one of more than one
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(1997)
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a section or department,
Dismissal; Authorized or adoptionClosure
Causes; of laborsaving
& of closure
whenRETRENCHMENT or cessation
the service capability of
onoperation
of
thetheother dueishand,
work toinserious
excess
... is
arrangements.
Cessation of Business; Poor forecasting Separationdoes not Payinvalidate business
of what
resorted islosses
reasonably or financial
to primarily needed
to avoidreverses.
to ormeetminimize
the demandsbusiness
redundancy.
(2006) Forecasting after all is not fail-free. on losses."
the enterprise. A REDUNDANT POSITION is one
[Wiltshire
ABC Tomato File Corporation,
Co..Inc. v. NLRC. owned 193andSCRA 665 by
managed Dismissal;
rendered Authorized
superfluous by any Causes;numberClosure of factors, & such
(1991)].
three (3) elderly brothers and two (2) sisters, has as
In overhiring(2001)
Escareal
Cessation of workers,
vs. NLRC, 213 decreased
SCRA 472 volume of the
(1992),
been in business for 40 years. Due to serious business
Companydropping
Supreme Court
"A" was ofengaged
ruled athat
particular
the in lawline previously
does
the not requireof
manufacture
b) Yes, redundancy
business losses andcan exist where
financial reverses workduring
efficiency
the manufactured
financial
goods using loss as byathe
the basis company
by-products or
of phasing
for redundancy. coconutout of a and
trees
has
last been five (5) improved
years, mechanically
they decided thus to resulting
close the in service
employed activity
somepreviously
fifty workers undertaken
who livedbyinthe the coconut
excessive
business. or superfluous manpower. [Wiltshire File Dismissal;
business.
plantation Under in Authorized
QuezontheseProvince. Causes;
conditions, The Redundancy
the employer
land upon whichhas
Co.,
1. AsInc. v. NLRC,
counsel 193corporation,
for the SCRA 665(1991)]. what steps will no legal
(1999) obligation to keep
A conducted its operation was subjected to land in its payroll more
you take prior to its closure? (2.5%) employees
FACTS:
reform under than
Harvester
R.A.are6657necessary
Independent for theVentures
for distribution operation
to the tenantsof
(HIV)its
2. Are the employees entitled to separation pay? business.
adopted
and residents a redundancy
of the land. program Consequently, to streamline
A had to
Dismissal; Authorized Causes;
(2.5%) operations.
close its operations Positions which overlapped
and dismiss its each
workers. other, Theor
Retrenchment
SUGGESTED ANSWER: & Redundancy (2001) which are in excess
union representing of the requirements
the employees demanded of thatthe A
(a)
1. What Stepsconditions
to take priormust to closure:prevail and what For
pay the
service,the implementation
were declared
dismissed workers of redundant.
aseparation
redundancy This
pay program
program
under to
Art.
requirements,
a) if any,Notice
Written must to anDOLEemployer30 dayscomply priorwith
to be
283 valid,
resultedof the in the employer
the reduction
Labor Code that ofmustmanpower
requires, complyamong withothers,
complement the
to justify/effect
the intended a valid
dateretrenchment
of termination, program?
showing (2%).a following
and
the payment REQUISITES:
consequent of separation termination
pay to employeesof fifteen in cases(15)
bona fide reason for closure; (1)
of written
employees,
"closing noticeor served
which included
cessation on boththe the
of secretaryemployees
operations of theofand
local
the
SUGGESTED
b) ANSWER;
Written Notice to employees 30 days the
union Department
and the company's
establishment orof undertaking".
Labor and PollutionEmployment
Is control
the union's at least
Officer. claim
In the prior caseto of the Asianintended
Alcohol Corp. date vs. of NLRC,
terminationG.R. one
correct monthor not?priorWhy?to the(5%) intended date of
No. (Catatista
131108, March v. NLRC, 25,1999,
GR. No. the 102422,
SupremeAug. Court 3 retrenchment;
stated 1995).that the requirements for a valid retrenchment (2) payment
SUGGESTED
Ilaw at Buklod of ANSWER:
separation
ng Manggagawa pay equivalent (IBM), to at least
questioned
must be proved by clear and convincing evidence: one month
union'spay
Thetermination
the or
of at
claim the least
is 15 one
notemployees,monthIn
correct. pay thefor case
contending everythatof
SUGGESTED ANSWER: year
National
the of service
same Federation whichever
constituted ofunion is higher;
Labor vs. NLRC,
busting and G.R. No.
therefore,
(1) that Art.
2. NO, the retrenchment
283 of the Labor is reasonably
Code doesnecessary not obligate (3) good
127718,
illegal, if faith
March
the in abolishing
same 2. is2000, the Supreme
the
undertaken redundant positions;
withoutCourt prior ruled
union
and likely to prevent
an employer to paybusinessseparation losses which,when
benefits if the and
that there is no obligation to pay separation pay if
approval.
already
closure is due to serious business losses or but
incurred, are not merely de minimis, financial (4)
1.
theIs fair
IBMandcorrect
closure reasonable
is not ina its criteria
contention
unilateral inandascertaining
that what
redundancy
voluntary act of
SUBSTANTIAL,
reverses (NorthSERIOUS, Davao Mining ACTUAL andand REAL or if
Development positions
can are to be declared
be implemented
the employer. by HIVredundantonly uponand prior union
Dismissal;
only
Corp.expected,
v. NLRC, Authorized
are No.Causes
reasonably
G.R. vs.
imminent
112546, MarchJust
as 13,1996), accordingly
approval? Why? abolished.
(3%)
perceived
Cause
except if(2004) theobjectively
CBA provides and inotherwise
good faith(JAKA by theFoods v. In the question,ANSWER:
SUGGESTED the closure was brought about not by
employer;
What are
Pacot, G.R. theNo. authorized
151378, causes Mar. 28,for a valid dismissal
2005). The Labor and
a unilateral Codevoluntary
(in Article act283) of thevery clearlybut
employer gives
due
(2)
by that
the the employer
employer of served
an employee?WRITTENWhy NOTICE are they the
to theemployer
act of governmentthe right intotheterminate implementation any ofof the its
both
distinct to the
fromemployees
the just causes? and to the (5%)Department of employees
Comprehensive for redundancy.
Agrarian Reform Law.
Labor
Dismissal;
SUGGESTED and Employment
Authorized
ANSWERS: at Causes;
least one Downsizing
month prior to 2. Can the position of Pollution Control Officer be
the
The intended
AUTHORIZED
Employees (2001) date of retrenchment;
CAUSES for a valid dismissal declared redundant? Why? (2%)
(3)
Soon after the Asian meltdown began inemployees
are that
the the employer
following: pays the retrenched October Dismissal;
SUGGESTED Authorized
ANSWER: Causes; Closure &
SEPARATION
1
1997, ABC installationPAY of
Realty equivalent
labor-saving
and to one
Management month
devices pay or at
Corporation If there is of
Cessation a law requiring
Business; Old companies
Age (2006) to have a
least
2
undertook oneredundancy
month pay for every
a downsizing year ofand
program service,
terminated Pollution
If the reason Officer,
for thethen closure HIVis cannot
due to old declare
age ofsuch the
whichever
3
nearly is higher;
aretrenchment
third to prevent
of its regular losses The affected
workforce. office
brothers redundant.
and sisters:
(4)
4 that the
employees the employer
closing orexercises
questioned cessation its
of prerogative
their termination operation
arguingoftothe
that 1. Is the closure allowed by law? (2.5%)
retrench
establishment
the action employees
was in GOODinFAITH
or undertaking
precipitate that forABCthe had not If theretheisemployees
2. Are no such law, thentothe
entitled Pollution Officer
separation
advancement
proved that it of its interest
sustained any and not to Is
losses. defeat or
the claim of could
benefits? be considered
(2.5 %) redundant.
circumvent
SUGGESTED the employees'
ANSWERS: right
the employees correct? Explain your answer, (3%). to security of SUGGESTED Panel:ANSWER: Consider case of Escareal. A
tenure;
The
SUGGESTED and ANSWER:
authorized causes for a valid dismissal are If closureposition
is due to old created
age — by law cannot be
(5) that
distinct the
from employer
The claim of the employees just used FAIR
causes and REASONABLE
because
may or maywhere not thebe 1. YES,declared it is allowed redundant.
by law. The employer may go
CRITERIA
dismissal When
correct. ofin an
ascertaining
employee who
the Corporation would on
is based be dismissed
just causes,
undertook its Dismissal;
out of business Authorized
by closingCauses; the sameRedundancy regardless of his
and
thesewhojust
"downsizing" would be retained
causes
program, areit may among
acts the employees,
committed
have terminated by the its (2000)
reasons, if done in good faith and due to causes
such
employee
employees as status on (i.e.,
which whether
provide
either onetheofthey twoare
basis fortemporary,
his dismissal.
grounds, namely, a) Can redundancy
beyond his control.exist (LVN wherePicturesthe same is due toand
Employees
casual,
On the other
redundancy regular or managerial
orhand, where theemployees),
retrenchment. dismissal isefficiency,
based on the
Workerscompany's failure to
Association v. properly
LVN Pictures, forecastNo. its L-23495,
seniority,
authorizedphysical causes,fitness,
these age, and financial
authorized causeshardship
are the manpower
September requirements?
30,1970;J.A,T. (3%) General b) Can redundancy
Services v. NLRC,
for
For certain
results workers.
of the
REDUNDANCY, proper exercise there is by no the employer
requirement of hisof exist where theSeptember
No. L-26432, work performed 30, 1970; by twelve
Alabang (12)Country
management
losses, whereas prerogatives.
in retrenchment, substantial losses, workers
Club, Inc.can be performed
v. NLRC, G.R. No. as157611,
efficiently by ten9,(10)
August 2005)
actual or anticipated, is a requirement. (Article 283, workers by increasing the speed of a machine
(b)
If a What
Labor valid conditions
dismissal
Code). ismust
In Atlanticbased prevail
on just
Gulf andand what there
causes,
Pacific Company is without
SUGGESTED detriment to the health and safety of the
ANSWER:
requirements,
no liability
vs. NLRC,onG.R. if any,
the part
No. must anemployer,
of127516.
the employer comply
May although
28, 1999, withthe workers?
2. YES. One (3%)month pay, or one-half month pay for
to justify/effect
sometimes,
Supreme Court aruled:
validassistance
financial redundancy to program?
be given to(2%). the every year of service, a fraction of at least 6 months
dismissed employee to
"... it is necessary is asked of theredundancy
distinguish employer. If a SUGGESTED
or more equivalent ANSWER: to one year, whichever is higher.
SUGGESTED
valid
from dismissal ANSWER:
is based Redundancy
retrenchment... on authorizedexists causes,when the a) Yes, REDUNDANCY
(Catatista v. NLRC, GR. existsNo. when102422,a position has
August
In the
employer case
the services ofpay
has of Asian
to anAlcohol
separation
employee Corp. pay
are (supra),
inexcept
excess the
inofcase become
3,1995). an excess or superfluous which, in turn,
Supreme
what isCourt required statedby an thatenterprise.
REDUNDANCY exists may be caused by reorganization, closure of
Is the action
business losstaken
occurs. by the
Theemployer
Supremejustified?Court in Lopez (5%) employeestest
evaluation concerned 30 days prior
by the Mahusay Medical to the intended
Center is
Sugar Corporation
SUGGESTED ANSWER: v, Federation of Free Workers, datethe
not of certification
termination, required
as well as forthe requisite
disease to be a
189 SCRA
The employer's 179 (1990). said:
act of terminating the employment of ground separation pay, were not
for termination. Thecomplied
Rules and with.Regulations
In its is
Gabriela ordinary
not justified.connotation,
There is no theshowingphrase that "to implementing the Labor Code require a certification
saidprevent
employee losses" is sick with meansSARS, or that that she the by a public health
ANOTHER SUGGESTED authorityANSWER:
that the disease is of
retrenchment
associated or had contact or termination
with the deceased of nurse. some suchYes. nature or at such a cause
The authorized stage that to itdismiss
cannot be due to
Theyemployees
are merelyis townmates. authorizedFurthermore, to be undertaken there is cured
redundancywithin aorperiod of six (6) under
retrenchment monthsArt. even 283withof the
no bycertification
the employer by sometime
a competent before health proper
the losses
public Labor Code medical hastreatment.
been disproved by Daisy's engaging
anticipated
authority that the diseaseare actuallyis of such asustained nature or such or ANOTHER
the servicesSUGGESTED of a substituteANSWER:checker at a salary much
realized.
a stage that it It cannotis not,be cured in within
other a words, period of the six The
lowerissues
than involved
that which areLeoas follows:
used to receive. Also, it
(6)intention
months even of the withlawmaker
proper medical to compel treatment. the 1. Is there
appears constructive
that the one (1) dismissal?
month notice rule required
employer to
(Implementing Rules,stayBook his hand
VI, Rule and1, Sec.keep8,all Laborhis 2.
in Is
saidthere lawa was
valid notexercise of management
complied with. Such being the
employees until sometime after losses shall prerogative?
Code). case, the twin On requirements
the first issue, for there a isvalid
constructive
dismissal
have in fact materialized; if such an intent dismissal. under Arts.RS 277cannot
(b) and be283placedof the on Code
"off-detail"
have and clearly
Dismissal;
were expressly Constructive writtenDismissal;
into law, the Floating
law may "floating
not beenstatus" complied indefinitely.
with. That If itnolasts for morepay
separation thanwas
Status be to constitutional attack property from one mansix
well (2004)
vulnerable to (6)Leo,
paid months, RS shallofbeArt.
in violation deemed 283 of to the
haveCode,been his
RS, a security
(underscoring guard, asa
supplied] filedtaking
a complaint constructively dismissed thus entitling
for illegal dismissal can all the more be successfully assailed.
nother, Dismissal; him to
dismissal
Authorized against
Causes; Star Retrenchment
Security Agency.(2003) He alleged separation benefits. (Superstar Security Agency v.
he was constructively dismissed after ten years of NLRC, 184 SCRA 74, [1990]).
service to the Agency. Having been placed on “off- Dismissal; Authorized Causes; Seniority
Daisy's
detail” and Department
“floating status” Storefor 6hiredmonths Leoalready,
as a checker he Rule (2001)
to apprehend
claimed the Agencyshoplifters. Leo wanted
just really later became to get rid Chief of (c) Is the SENIORITY RULE or "last in first out"
of him
the Checkers
because Sectionhim
it required andto acquired the status of a policy to be strictly followed in effecting a
take a neuro-psychiatric
regular employee.
evaluation By way ofMedical
test by Mahusay a cost-cutting
Center.measure, RS said retrenchment or redundancy program? (1%).
Daisy's
he already decided
submitted to abolish
the resultthe of hisentire Checkers
evaluation test SUGGESTED ANSWER:
Section.
by BrentThe services
Medical of Leo,
Clinic as along with those
precondition his Again, in Asian Alcohol Corp., the Supreme Court
to aof new
co-employeesbut
assignment, working in the was
the report samerejected section,bywere the stated that with regard the policy of "first in, last out"
Agency. RS added that Mahusay Medical Center had in choosing which positions to declare as redundant
terminated on the same day. A month after the
dismissal
close ties of with Leo,Star’sDaisy's engaged
president. the services
It could manipulate of or whom to retrench to prevent further business
another
tests to person
favor only as anthose ordinary
guardscheckerwhom and with a losses, there is no law that mandates such a policy.
the Agency
salary much
wanted to retain. lower Starthan that which
defended its policy Leo ofused reliance Dismissal;
to The reason Authorized
is simple enough. Causes; A host of relevant
receive.
on Mahusay Given the above
Medical Centerfactualbecause settings
it has been (nothing Retrenchment
duly factors come into (1998)
play in determining cost efficient
more having
accredited bybeen established),
the Philippine NationalcouldPolice.
the dismissal The Company
It is not measures and Legal Counsel
in choosing theadvised
employees the Board
who will of be
of Leo
one of bethosesuccessfully
dubious assailed
testing centersby him?issuing ready- retained Directors or as follows:
separated "A company
to save cannot the companyretrench fromto
prevent
made reports. Star cited its sad experience last year closing shop. In determining these issues, losses until actual losses occur. The
SUGGESTED
when a guard ANSWER: ran amuck and shot an employee of a management Company must wait playsuntilathepre-eminent
end of the Business role. The
Yes. Given the factual setting
client-bank. Star claimed management prerogative in in the problem, and Year when
characterization its Booksof of Accounts,
positions asProfit and Loss
redundant is an
since "nothing more (have) been
assigning its guards, and prayed that RS’ complaint established", the Statement
exercise showing
of business the actual
judgment loss onand Balance
the part of the
dismissal
be dismissed. of Leo can be successfully assailed by him. Sheet
employer. have It been
will audited
be upheld by an
as Independent
long as it auditing
passes the
This is so because the burden of proof is upon the test firm."ofIsarbitrariness.
the legal advice of counsel correct?[5%]
employer to show compliance with the following
requisites for reduction of personnel: Dismissal; Authorized
SUGGESTED ANSWER: Causes; Sickness
1. Losses
What are or theexpected
issues?losses Identifyshould andbe substantial
resolve them. The
(2004) legal advice is not correct. The Labor Code (in
and not merely de minimis;
(5%) Article
A. 283) provides
Gabriela Liwanagthathasretrenchment been working may be as
2. The expected
SUGGESTED losses must be reasonably
ANSWER: resorted to "TO
bookkeeper PREVENT
at Great Foods, LOSSES"
Inc., whichThus, operatestherea
imminent,
The facts in and thesuch imminence
question raise thesecan be perceived
issues: could of
chain behigh-end
legal basis for retrenchment
restaurants throughouteven before
the country,
objectively
1 When andRS in good faith byon
was placed the"off-detail"
employer.or "floating since actual 1970 losseswhen as long as the
it was stilllosses
a small are imminent
eatery at
status" for more than six months, can RS claim that he Binondo. and serious.In the early part of the year 2003,
3. It must
was terminated?
be necessary and likely to prevent the ANOTHER
Gabriela, whoSUGGESTED
was alreadyANSWER: 50 years old, reported for
expectedIslosses.
2 there a The validemployer
reason for must
the have
termination
taken of RS?The workadviseafter aofweek-long
the Company vacationLegalinCounsel that anIt
her province.
other measures to cut costs other than labor costs; employer cannot retrench
was the height of the SARS (Severe Acute to prevent losses until
and actual losses occur is not
Respiratory Syndrome) scare, and managementcorrect. The Labor Code
4. Losses
On the first if issue, already
basedrealized,
on prevailingor the expected
jurisprudence, provides:
learned that the first confirmed SARS death case in
losses
RS canmust be proved by
be considered as sufficient
terminated and convincing
because he has theArt. 283. Closure
Philippines, of establishment
a “balikbayan” nurse from and reduction
Canada, is
evidence.
been placed (Lopez
on "off Sugar Corp.
detail" or v."floating
Federation of for a a oftownmate
status" personnel. -The
of Gabriela. employer may also
Immediately, a
Sugar Workers.
period which is more 189 SCRAthan six 179(1990).
(6) months. terminate the employment
memorandum was issued of any byemployee
management xxx
retrenchment
terminating to preventoflosses.
the services Gabriela on the ground
that she is a probable carrier of SARS virus and that
Moreover,
On the second the notice
issue,requirements to be given
it is true that disease is aby The law does not
her continued require that
employment retrenchment
is prejudicial to thecanhealth
be
Daisy's for
ground Department
termination. Store Buttothe DOLE and the
neuro-psychiatric undertaken
of her co-employees.by an employer only after an actual
"PAYROLL
counsel;
Antonio.
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suspicion that Marimar and Sergio indulged in Inc. the
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pistols and ammunitionHe Law
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1957)
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November
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voluntary
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include
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(2001) may law
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Still, ithisis
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Art 4theof arrest
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is cohabiting.
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due to
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Juan JovyInsurance
accidental
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grounds
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years of age; Provided, that an employee who is the
provides
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companyall fordoubts the reason
hired in to the
fix house)
total
whom he excluded
compensable?
disability
(Philippine
lumber is
company. which
cohabiting.
Blooming In Millsfrom
1970, Why?
should
The
Co., Pablo this
(3%).
fact entitle
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him
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total
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interpretation the
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to v. Socialexamination
of SUGGESTED
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wife benefits
and ANSWER:
laid-off. System,
that allowed
InWeto in
1972,Yes.
17had Labor
by To
SCRAPablo bechildren
4law. and
compensable
107(1966);
Her disability
recovered Social
with RA.
his
and
(3)
by
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R.A.
compulsory
qualify for the No.
Law 8291
shall total
coverage or
be
retirement disability
the
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favor
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under
No.
which
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wifeInsurance
the Legislation.
should GSIS
as
is amended Law,
entitle
beside Fund the
her
the
resumed working for the same lumber company, now by (1995)
death
to RA
point. the No.The need8282}.
maximum not
important be work
falls factwithin is
Connected Disability (1996)
(4) Separation
employees
because
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therefore,
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System should
casual
shall be beconsidered
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The
to What
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definition
this the
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first of
child
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total
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with intervention
Weto. The law in
Efrenia Reyes was a classroom teacher assigned by
(5) Retirement
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under
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Security
compulsory benefit.
coverage.Law provides
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did compensation
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distinguish process
Coverage
and
away. In 1996, Pablo retired. When Pablo applied for we and
should(2002) the payment
therefore not of
the Department of Education, Culture and Sports
Maternity
casual Benefits (2000) benefits
GSIS;
b)
The No,owners Death
the toGSIS employees
of Benefits;
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Dependent;
denying
Factory, the athe State 24-hour
claim.
company Insurance
Note,
engaged that
(DECS)and not for Capiz.
in Panitan, the purposeShe has of beenoccupation in the or the retirement distinguish. benefits SSS that same year, he
GSIS;
Ms. Sara
The
business Death
Employees Mira
of Benefit
the is an
Compensation (1999)
employer unwed are mother
Commissionnot with under three
shall its Fund?
the
Duty
in the
discovered Explain.
original
Rule
assembling claimthe
(2005)
that and
of grant company
automotive
lumber of benefitscomponents, was based
never decided
enrolled on
government service since 1951 up to November,
SSS;
children
FACTS:
ensure
compulsory GSIS; from
Pitoy
adequate Beneficiality;
three
Mondero
coverage. different
coverage was Portability
fathers.
employed
of Filipino Inas 1999, a
employees she
public SUGGESTED
Presidential
The
Odeck,
to
him have paternity
as atheir
an Decree
policeman,ANSWER:
leaveNo,
building
employee, was
was 626,
renovated.much onor leave
intended Book Fifty
less IV,
to for
(50) Title
enable
remitted a II ofthe
month.
persons, the
his
1985 when she retired at 55 due to poor health.
Provisions
became
school teacher
employed a member of at
abroad, RAthe 7699
of
subject the (2005)
Marinduque Social
to regulations Security
High School System.
as it may from In The
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Employees
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The
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How
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July 1, 1983 2000,the
(Art,untilshe
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suffered a
provisions
170}his untimely demise on May 27, (1999)
miscarriage, of also
Republic out of
Act built
period up
Insurance of
neighborscompany
construction
lumber by the
Fund.
recovery
fighting contributions
workers, The and/or
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were
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law
the
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to by does
nursing
payOdeck not
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provide
the
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Pablo's on tofor
for
Marvin
wedlock,
No. Any
1997. 7699 Patrimonio
person
and again
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advantageous rendering
covered father.by to caddying
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Can
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separation
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pacify
was The
asTo
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basis
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estimated
maintained for
Weto
protagonists. does
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this be
In March, 1982, while she was teaching her Grade 1
Mira
GSISincluding
services claim
members
for the
the members
maternitymembers in of terms ofand
benefits the guests Armed
of under their Forces
of the
the of the of
Social
creditable
Barili not intervene
of benefits.
benefit
However,
completed
Pablo's would he in be
claims in
was the
to
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already death
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prescribed process
by
The foremployees
one the
under and
of law.
the
Art, it
pupils the proper way scrubbing and sweeping
On April
Philippines,
Security
employment
Golf
the & Country
floor, 27,
she1997,
Act and
ofaccidentally
1997?
services
Club. aany memorandum
As inperson
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employed
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Civil over
case
Zhop, since
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Weto housemaid,
(Art. work is aof
1150 would benefits.
gray
provides area
was
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Odeck's
"The the
SUGGESTED
school
to emergency,
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Barili principal,
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temporary,
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regulations "You
substitute be, are fororhereby
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doubt worsening
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resolved school
for prescription of all kinds of actions, when therefor
after more spouse
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year, his
he teacher's
they favor.
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abandoned
should be is
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edge of a desk. She later complained of weak lower
Yes,
designated
or
death,
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Please language, Entitlement
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explain the SSS
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ALTERNATIVE
another
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result,
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or a Workmen's
ANSWER:continuing
years
coverage back. underCompensation
result
When the of shethe
Social Act,
first
learned injury
Security of
extremities and difficulty in walking. After an X-ray no special provision which ordains otherwise, shall
employers
which
Weto's Dowas are
contention deemed no longer
iswith
correct. directly
work-connected
a R.A. liable
No. for the
thereto
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are will
answer
However,
examination, is be
covered
briefly.
henotthe does
she dependent
(3%) official
by
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have
found on
Employees ofbe
toto theobserveclaimant's
orsuffering
school the
Compensation
any from being Odeck's
Law.
be counted death,
you agree
from Zhop the filed
day their they claim
contention?
may be8187
with bythe the
Explain
brought.").provides
GSIS GSIS for
your Is
legally
forthcoming
SUGGESTED
Program. married. Division (Sec.
ANSWER: Search14-A, Social
for Security
Outstanding Act of income
that
and
death
answer hence and
paternity
benefits.
fully. medical
leave
compensable.
(5%) of
However,and(7) related
days her with benefits
claimfull pay that
was shallare
denied beto
working
Pott's disease hours,and he was is free advised to leave anytimean
to undergo he the Lumber company's contention correct? Why?
Improvised be paid to
granted to (a)covered whenemployees
all married employees if they
in the should he suffer
private andon
1997).
Portabilityand
pleases;
operation. InSecondary
provisionshe can
1985, she of
stayScience
R.A.
filed away No.Equipment
with 7699
for
the as GSIS shall
long afor
benefit
as he a
claim because:
(3%), Odeck was killed, was
Teachers
covered
State to
worker
Insurance be held
who Fund in Manila
transfers (1994) on June
employment 4, 1997. from You
one from
In
public work
Diopenes
SUGGESTED sectors connected
vs. for GSIS,
ANSWER: the
leave; and (b) she was not the dependent spouse of injury
205
first or
SCRA
four sickness
(4) 331
deliveries or
(1992), death.
of the
for
likes.disability
Nonetheless, benefits ifunder he isPresidential
found remiss Decree in the
Paternity
are
sector hereby to anotherLeave
instructed or(2002)isto completeinthis
employed both MODEL The
Supremepayment
legitimate
SUGGESTED
Odeck when Court
spouse ofANSWER:
he employees
cautioned
died.with whom compensation
againsthe isa too strict is