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(a) Does the hotel have valid legal grounds to deduct food and lodging costs from
Nelda�s basic salary? (2.5%)
(b) Applying labor standards law, how much should Nelda be paid for work done on
Good Friday? Show the computation in your test booklet and encircle your final
answer. (2.5%)
Due to serious business reverses, ABC Co. decided to terminate the services of
several officers receiving �fat� compensation packages. One of these officers was
Mr. X, its Vice-President for External Affairs and a member of the Board of
Directors. Aggrieved, Mr. X filed a complaint for illegal dismissal before the
National labor Relations Commission (NLRC) � Regional Arbitration Branch.
ABC Co. moved for the dismissal of the case on the ground of lack of jurisdiction,
asserting that since Mr. X occupied the position of Vice-President for External
Affairs which is listed in the by-laws of the corporation, the case should have
been tiled before the Regional Trial Court.
The Labor Arbiter (LA) denied ABC Co.�s motion and proceeded to rule that Mr. X was
illegally dismissed. Hence, he was reinstated in ABC Co.�s payroll pending its
appeal to the NLRC.
(a) Did the LA err in denying ABC Co.�s motion to dismiss on the ground of lack of
jurisdiction? Explain. (2.5%)
(b) Assuming the LA�s ruling of illegal dismissal with finality, may ABC Co. claim
reimbursement for the amounts it paid to Mr. X during the time that he was on
payroll reinstatement pending appeal? Explain. (2.5%)
Benito is the owner of an eponymous clothing brand that is a top seller. He employs
a number of male and female models who wear Benito�s clothes in promotional shoots
and videos. His deal with the models is that Benito will pay them with 3 sets of
free clothes per week. Is this arrangement allowed? (2%)
B. The same driver claims that for work performed on Tuesday, Thursday and
Saturday, he should be paid the minimum daily wage of a driver of a commercial
establishment. Is the claim of the driver valid? (5%)
Is there an employer-employee relationship between Star Crafts and the 100 workers
from People Plus? Explain. (4%)