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In her State of the Nation Address, the President stressed the need to provide an
investor-friendly business environment so that the country can compete in the
global economy that now suffers from a crisis bordering on recession.
Responding to the call, Congress passed two innovative legislative measures,
namely: (1) a law abolishing the security of tenure clause in the Labor Code; and
(2) a law allowing contractualization in all areas needed in the employer’s
business operations. However, to soften the impact of these new measures, the
law requires that all employers shall obtain mandatory unemployment insurance
coverage for all their employees. The constitutionality of the two (2) laws is
challenged in court. As judge, how will you rule?
2

Cris filed a complaint for illegal dismissal against Baker Company. The Labor
Arbiter dismissed the complaint but awarded Cris financial assistance. Only the
company appealed from the Labor Arbiter's ruling. It confined its appeal solely
to the question of whether financial assistance could be awarded. The NLRC,
instead of ruling solely on the appealed issue, fully reversed the Labor Arbiter's
decision; it found Baker Company liable for illegal dismissal and ordered the
payment of separation pay and full backwages. Through a petition for certiorari
under Rule 65 of the Rules of Court, Baker Company challenged the validity of
the NLRC ruling. It argued that the NLRC acted with grave abuse of discretion
when it ruled on the illegal dismissal issue, when the only issue brought on
appeal was the legal propriety of the financial assistance award. Cris countered
that under Article 218(c) of the Labor Code, the NLRC has the authority to
"correct, amend, or waive any error, defect or irregularity whether in substance
or in form" in the exercise of its appellate jurisdiction. Decide the case.

May the NLRC or the courts take jurisdictional cognizance over compromise
agreements/settlements involving labor matters?

P.D. 1508 requires the submission of disputes before the Barangay Lupong
Tagapamayapa prior to the filing of cases with the courts or other government
bodies. May this decree be used to defeat a labor case filed directly with the Labor
Arbiter? Discuss fully.
5

Alexander, a security guard of Jaguar Security Agency (JSA), could not be given
any assignment because no client would accept him. He had a face only a mother
could love. After six (6) months of being on "floating" status, Alexander sued JSA
for constructive dismissal. The Labor Arbiter upheld Alexander’s claim of
constructive dismissal and ordered JSA to immediately reinstate Alexander. JSA
appealed the decision to the NLRC. Alexander sought immediate enforcement of
the reinstatement order while the appeal was pending.

JSA hires you as lawyer, and seeks your advice on the following: Because JSA
has no client who would accept Alexander, can it still be compelled to reinstate
him pending appeal even if it has posted an appeal bond?

Mam-manu Aviation Company (Mam-manu) is a new airline company recruiting


flight attendants for its domestic flights. It requires that the applicant be single,
not more than 24 years old, attractive, and familiar with three (3) dialects, viz:
llonggo, Cebuano and Kapampangan. lngga, 23 years old, was accepted as she
possesses all the qualifications. After passing the probationary period, lngga
disclosed that she got married when she was 18 years old but the marriage was
already in the process of being annulled on the ground that her husband was
afflicted with a sexually transmissible disease at the time of the celebration of
their marriage. As a result of this revelation, lngga was not hired as a regular
flight attendant. Consequently, she filed a complaint against Mam-manu alleging
that the pre-employment qualifications violate relevant provisions of the Labor
Code and are against public policy. Is the contention of lngga tenable? Why?

For humanitarian reasons, a bank hired several handicapped workers to count


and sort out currencies. The handicapped workers knew that the contract was
only for a period of six-months and the same period was provided in their
employment contracts. After six months, the bank terminated their employment
on the ground that their contract has expired. This prompted the workers to file
with the Labor Arbiter a complaint for illegal dismissal. Will their action prosper?
Why or why not?

Diosdado, a carpenter, was hired by Building Industries Corporation (BIC), and


assigned to build a small house in Alabang. His contract of employment
specifically referred to him as a "project employee," although it did not provide
any particular date of completion of the project. Is the completion of the house a
valid cause for the termination of Diosdado’s employment? If so, what are the
due process requirements that the BIC must satisfy? If not, why not?

The weekly work schedule of a driver is as follows: Monday, Wednesday, Friday


- drive the family car to bring and fetch the children to and from school. Tuesday,
Thursday, Saturday - drive the family van to fetch merchandise from suppliers
and deliver the same to a boutique in a mall owned by the family. 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?

10

Dennis was a taxi driver who was being paid on the "boundary" system basis. He
worked tirelessly for Cabrera Transport Inc. for fourteen (14) years until he was
eligible for retirement. He was entitled to retirement benefits. During the entire
duration of his service, Dennis was not given his 13th month pay or his service
incentive leave pay. Is Dennis entitled to 13th month pay and service leave
incentive pay? Explain.

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