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Labor Standards Take Home Exams : Philippine Law School

Comm. Cecilio A. C. Villanueva 27 Sept 2018

Date of Submission: 3 October 2018 Thursday at 7pm.
Penalty for late submission: P50.00 Penalty for non-submission: P100
Answers must be handwritten in an exam booklet. Answers must be
complete with legal basis both in law and jurisprudence. Cite the applicable
law and cases.

1. Employee-employer relationship exists under the following, except :

a. Jean, a guest relations officer in a nightclub and Joe, the
nightclub owner;
b. Atty. Sin’ Cruz, who works part-time as the resident in house
lawyer of X Corporation;
c. Paul, who works as registered agent on commission basis in an
insurance company; ·
d. Jack and Jill, who work in X Company, an unregistered
Association. 2012 Bar Exams 1%

2. Mr. Ortanez has been in the building construction business for several
years. He asks you, as his new labor counsel, for the rules he must observe in
considering regular employment in the construction industry.

You clarify that an employee, project or non-project, will acquire regular

status if __________. (1%)

(A) he has been continuously employed for more than one year

(B) his contract of employment has been repeatedly renewed, from

project to project, for several years

(C) he performs work necessary and desirable to the business,

without a fixed period and without reference to any specific project or

(D) he has lived up to the company's regularization standards

(E) All of the above. 2013 Bar Exams

3. Inggo is a drama talent hired on a per drama "participation basis" by
DJN Radio Company. He worked from 8:00 a.m. until 5:00 p.m., six days a
week, on a gross rate of P80.00 per script, earning an average of P20,000.00
per month. Inggo filed a complaint before the Department of Labor and
Employment (DOLE) against DJN Radio for illegal deduction, non-payment
of service incentive leave, and 13th month pay, among others. On the basis
of the complaint, the DOLE conducted a plant level inspection.

The DOLE Regional Director issued an order ruling that Inggo is an

employee of DJN Radio, and that Inggo is entitled to his monetary claims in
the total amount of P30,000.00. DJN Radio elevated the case to the
Secretary of Labor who affirmed the order. The case was brought to the Court
of Appeals. The radio station contended that there is no employer-employee
relationship because it was the drama directors and producers who paid,
supervised, and disciplined him. Moreover, it argued that the case falls under
the jurisdiction of the NLRC and not the DOLE because Inggo's claim
exceeded P5,000.00.

[a] May DOLE make a prima facie determination of the existence of an

employer-employee relationship in the exercise of its visitorial and
enforcement powers? (2.5%)

[b] If the DOLE finds that there is an employee-employer relationship,

does the case fall under the jurisdiction of the Labor Arbiter
considering that the claim of inggo is more than P5,000.00. Explain.
(2.5%) 2016 Bar Exam

4. Is the contractor a necessary party in a case where labor contracting is

the main issue and labor-only contracting is found to exist?
a. Yes, the contractor is necessary in the full determination of the
case as he is the purported employer of the worker;
b. Yes, no full remedy can be granted and executed without
impleading the purported contractor;
c. No, the contractor becomes a mere agent of the employer-
principal in labor contracting;
d. No, the contractor has no standing in a labor contracting case.
2012 Bar Exams 1%

5. Which is a characteristic of a labor-only contractor?

a. Carries an independent business different from the employer’s;
b. The principal’s liability extends to all rights, duties and liabilities
under labor standards laws including the right to self-
c. No employer-employee relationship;
d. Has sufficient substantial capital or investment in machinery,
tools or equipment directly or intended to be related to the job
contracted. 2012 Bar Exams 1%

6. What is not an element of legitimate contracting?

a. The contract calls for the performance of a specific job, work or
b. It is stipulated that the performance of a specific job, work or
service must be within a definite predetermined period;
c. The performance of specific job, work or service has to be
completed either within or outside the premises of the principal;
d. The principal has control over the performance of a specific job,
work or service. 2012 Bar Exams 1%

7. Constant Builders, an independent contractor, was charged with illegal

dismissal and non-payment of wages and benefits of ten dismissed
employees. The complainants impleaded as co-respondent Able Company,
Constant Builder's principal in the construction of Able's office building. The
complaint demanded that Constant and Able be held solidarily liable for the
payment of their backwages, separation pay, and all their unpaid wages and

If the Labor Arbiter rules in favor of the complainants, choose the statement
that best describes the extent of the liabilities of Constant and Able. (1%)

(A) Constant and Able should be held solidarily liable for the unpaid
wages and benefits, as well as backwages and separation pay, based on
Article 109 of the Labor Code which provides that "every employer or
indirect employer shall be held responsible with his contractor or
subcontractor for any violation of any provision of this Code."

(B) Constant and Able should be held solidarily liable for the unpaid
wages and benefits, and should order Constant, as the workers' direct
employer, to be solely liable for the backwages and separation pay.

(C) Constant and Able should be held solidarily liable for the unpaid
wages and benefits and the backwages since these pertain to labor
standard benefits for which the employer and contractor are liable
under the law, while Constant alone – as the actual employer - should
be ordered to pay the separation pay.
(D) Constant and Able should be held solidarily liable for the unpaid
wages and benefits, and Constant should be held liable for their
backwages and separation pay unless Able is shown to have
participated with malice or bad faith in the workers' dismissal, in which
case both should be held solidarily liable.
(E) The above statements are all inaccurate. 2013 Bar Exams 1%

8. Matibay Shoe and Repair Store, as added service to its customers,

devoted a portion of its store to a shoe shine stand. The shoe shine boys were
tested for their skill before being allowed to work and given ID cards. They
were told to be present from the opening of the store up to closing time and
were· required to follow the company rules on cleanliness and decorum. They
bought their own shoe shine boxes, polish, and rags. The boys were paid by
their customers for their services but the payment is coursed through the
store's cashier, who pays them before closing time. They were not supervised
in their work by any managerial employee of the store but for a valid
complaint by a customer or for violation of any company rule, they can be
refused admission to the store. Were the boys employees of the store?
Explain. (5%) 2016 Bar Exam

9. XYZ Manpower Services (XYZ) was sued by its employees together

with its client, ABC Polyester Manufacturing Company (ABC). ABC is one of
the many clients of XYZ. During the proceedings before the Labor Arbiter,
XYZ was able to prove that it had substantial capital of Three Million Pesos.
The Labor Arbiter ruled in favor of the employees because it deemed XYZ as
a labor only contractor. XYZ was not able to prove that it had invested in
tools, equipment, etc.

a. Is the Labor Arbiter’s ruling valid? Explain. (5%)

b. Does the performance by a contractual employee, supplied by a
legitimate contractor, of activities directly related to the main business
of the principal make him a regular employee of the principal? Explain.
(5%) 2012 Bar Exams