LAB REB

Week 1 Bar Questions

1.Soon after the Asian meltdown began in October 1997, ABC Realty and management Corporation
undertook a downsizing program and terminated nearly a third of its regular workforce. The affected
employees questioned their termination arguing that the action was precipitate in that ABC had not
proved that it sustained any losses.

Is the claim of the employees correct? Explain your answer. (3%)

2. Eduardo Santiago, a project worker, was being assigned by his employer, Bagsak Builders, to Laoag,
Ilocos Norte. Santiago refused to comply with the transfer claiming that it, in effect, constituted a
constructive dismissal 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 Santiago and Bagsak Builders plus
attorney’s fees equivalent to ten percent (10%) of the value of Santiago’s separation pay.

Is the award of attorney’s fees valid? State the reasons for your answer. (2%)

3.On September 3, 1998, the National Bureau of Investigation (NBI) extracted from Joko Diaz --without
the assistance of counsel – a sworn statement which made it appear that Joko, in cahoots with another
employee, Reuben Padilla, sold ten (10) cash registers which had been fore-closed by North-South Bank
for P50,000.00 and divided the proceeds therefrom in equal between the two of them.

On September 10, 1998, Joko was requested by Rolando Bato, the bank manager, to appear before the
Disciplinary Board for an investigation in the following tenor: “You are requested to come on Thursday,
September 14, 1998, at 11:00 a.m. the Board Room, without counsel or representative, in connection
with the investigation of the foreclosed cash registers which you sold without authority.”

Mr. Bato himself conducted the investigation, and two (2) days thereafter, he dismissed Joko. The bank
premised its action in dismissing Joko solely on the latter’s admission of the offense imputed to him by
the NBI in its interrogation on September 3, 1998. Aside from this sworn statement, no other evidence
was presented by the bank to establish the culpability of Joko in the fraudulent sale of the bank’s
foreclosed properties.

a.Is the dismissal of Joko Diaz by North-South Bank legally justified? Explain briefly. (3%)

b.Can Reuben Padilla’s participant in the fraudulent sale of the bank’s foreclosed properties be made
to rest solely on the unilateral declaration of Joko Diaz? Why? (2%)

4. The Labor Arbiter dismissed the complaint for illegal dismissal filed by Genevieve Cruz against Bulag
Optical Inc. (BOI) which denied her prayer for reinstatement but awarded financial assistance in her
favor. BOI appealed the decision of the Labor Arbiter to the NLRC within the reglementary period.
Genevieve filed an opposition to the appeal. The NLRC affirmed in toto the decision of the Labor Arbiter. Both
the BOI and Genevieve are not satisfied with the decision of the NLRC.

a.What is the remedy, if any, of BOI and before what forum? Explain briefly. (3%)
b.Can Genevieve Cruz avail herself of the same remedy as that of BOI? Why? (2%)

5. Lowland Cement & Factory Company (LCFC) borrowed P500M from the Development Bank of the
Philippines and mortgaged the entire company, inclusive of its land, buildings and equipment, to
guarantee the payment of the loan. However, because of the economic conditions, LCFC incurred heavy losses
and eventually failed to pay DBP the required monthly amortizations over a period of more than one (1)
year. In due time, DBP foreclosed the mortgaged assets of LCTC resulting in the closure of the
company and the displacement of all its employees for want of work.

The LCFC Labor Union (Union) filed in behalf of the displaced workers labor case against DBP as the
new owner of the defunct cement factory for wage differentials, retirement pay and other money claims.
The Labor arbiter decided in the favor of the Union. DBP appealed to the NLRC.

DBP contended in its appeal that its acquisition of the mortgage assets of LCFC through foreclosure sale
did not make it the owner of the defunct Lowland Cement, and that the doctrine of successor-employer
is not applicable in this case, since DBP did not continue the business operation of LCFC.

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The NLRC while finding merit in DBP’s contention nonetheless held DBP liable to the extent of the
proceeds of the foreclosure sale since the Union’s claims in behalf of the workers constitute a first
preference with respect thereto pursuant to article 110 of the Labor Code.

Is the NLRC correct in holding DBP liable to the extent of the proceeds of the foreclosure sale? Explain
briefly (5%)

6.What are the salient features of the protection to labor provision of the Constitution? (5%)

7.A Recruitment and Placement Agency declared voluntary bankruptcy. Among its assets is its license to
engage in business.

Is the license of the bankrupt agency an asset which can be sold in public auction by the liquidator?
(5%)

8.A lady worker was born with a physical deformity, specifically, hard of hearing, speech impaired and
color blind. However, these deficiencies do not impair her working ability.

Can the employer classify the lady worker as a handicapped worker so that her daily wage will only be
75% of the applicable daily minimum wage? (5%)

9.The services of an employee were terminated upon the completion of the probationary period of
employment for failure to qualify for the position. The employee filed a complaint for Illegal Dismissal on
the ground that the employer failed to inform him in writing the reasonable standards for regular
employment.

Will the complaint for Illegal Dismissal prosper? (5%)

10.A labor union lawyer opined that a labor organization is a private and voluntary organization; hence, a
union can deny membership to any and all applicants.

Is the opinion of counsel in accord with law? (5%)

11 .Differentiate labor standards law from labor relations law.

Are the two mutually exclusive?

12.Ruben Padilla entered into written agreement with Gomburza College to work for the latter in
exchange for the privilege of studying in said institution. Ruben’s work was confined to keeping clean the
lavatory facilities of the school. One school day, Ruben got into a fistfight with a classmate, Victor
Monteverde, as a result of which the latter sustained a fractured arm.

Victor Monteverde filed a civil case for damages against Ruben Padilla, impleading Gomburza College
due to the latter’s alleged liability as an employer of Rubven Padilla.

Under the circumstances, could Gomburza College be held liable by Victor Monteverde as an employer
of Ruben Padilla?

13.On 01 August 1992, Pro-Knit, a corporation engaged in the manufacture of textile garments, entered
into a collective bargaining agreement with the Kamao Union in representation of the rank and file
employees of the corporation.

The CBA was effective up to 20 June 1995. The contract had an automatic renewal clause which would
allow the agreement after its expiry date to still apply until both parties would have been able to execute
a new agreement.

On 10 May 1995 Kamao Union submitted to Pro-knit’s management their proposals for the renegotiation
of a new CBA. The next day, Pro-Knit suspended negotiation while Kamao Union since Pro-knit had
entered into a merger with Eagle Garments, a corporation also engaged in the manufacture of textile
garments. Eagle garments assumed all the assets and liabilities of Pro-Knit.

Kamao filed a complaint with the Regional Trial Court for specific performance and damages with a
prayer for preliminary injunction against Pro-knit and Eagle Garments.

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Pro-knit and Eagle Garments filed a Motion to Dismiss based on lack of jurisdiction. How would you
rule on the Motion to Dismiss?

14. State the respective coverages of (a) the Social Security Law; (b) the Revised Government Service
Insurance Act and (c) the Employees Compensation Act.

15.When does an employer-employee relationship exist?

16.What are the rights of an employer and an employee?

17.What is the importance of labor organizations?

18.Gil Bates, a computer analyst and programmer of Hard Drive Company, work eight hours a day for five
days a week at the main office providing customers information technology assistance.

On Saturdays, however, the company requires him to keep his cellular phone open from 8:00 A.M. to
5:00 P.M. so that the Management could contact him in case of heavy work load or emergency problems
needing his expertise.

May said hours on Saturdays be considered compensable working hours “while on call”? If so, should
said compensation be reported to the Social Security System? (5%)

19.TRX, a local shipping firm, maintains a fleet of motorized boats plying the island barangays of AP, a
coastal town. At day’s end the boat operators/crew members turn over to the boat owner their cash
collections from cargo fees and passengers’ fares, less the expenses for diesel fuel, food landing fees and
spare parts.

Fifty percent (50%) of the monthly income or earnings derived from the operations of the boats are
given to the boatmen by way of compensation. Deducted from the individual shares of the boatmen are
their cash advance and peso value of their absences, if any.

Are these boatmen entitled to overtime pay, holiday pay and 13 th month pay? (5%)

20. B. Ukol was compulsorily retired by his employer, kurot Bottling Corporation, upon the
former’s reaching 65 years of age, having rendered 30 years of service. Since there was no CBA,
B. Ukol was paid his retirement benefits computed 15 days’ pay for every year of service, based
on B. Ukolis highest salary during each year of his employment. Not satisfied, B. Ukol filed action
with the Arbitration Branch of the NLRC claiming that his retirement benefits were not
computed properly.

Is B. Ukol’s claim meritorious? What are the components of his retirement benefits? (2%)

21.“A”was able to obtain a judgement against his former employer, Company “B”, for P750,000.00. in
executing the judgment in favor of A, the Labor Arbiter sought to levy on B’s office equipment. B filed an
action for damages and injunction against the Labor Arbiter before the Regional Trial Court of the
province where B’s offices are located. Is B’s action tenable? Why? (5%)

22.You were asked by a paint manufacturing company regarding the possible employment as a mixer of a
person, aged seventeen (17), who shall be directly under the care of the section supervisor. What advice
would you give? Explain briefly. (2%)

23.The projected bonus for the employees of Suerte Co. was 50% of their monthly compensation.
Unfortunately, due to the slump in the business, the president reduced the bonus to 5% of their
compensation. Can the company unilaterally reduce the amount of bonus? Explain briefly. (2%)

24.Ana Cruz las a low IQ. She has to be told at least three times before she understands her daily work
assignment. However, her work output is at least equal to the output of the least efficient worker in her
work section. Is Ms. Cruz a handicapped worker? Explain. (5%)

25.How do the provisions of the law on labor relations interrelate, it at all, with the provisions
pertaining to labor standards?

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