PHILIPPINE LAW SCHOOL

LONG QUIZ IN LABOR STANDARDS

QUIZ NO. 1
COMM. CECILIO A.C. VILLANUEVA
Q&A (with suggested/acceptable answers)
Reference: Labor Law Review (The Fundamentals) by Ungos & Ungos

Answer completely, clearly and cleanly.

1. Define Labor Standards. (2%)

Labor Standards is that branch of labor law that prescribes the minimum requirements for
hours of work, monetary benefits, welfare benefits, and occupational health and safety.

Labor Standards is that branch of labor law that prescribes the minimum TERMS,
CONDITIONS and BENEFITS of employment that ERs must provide or comply with and to which EEs
are entitled as a matter of legal right (TCB) – also acceptable

2. What are the 4 elements of ER EE relationship? (4%)

The following elements are generally considered in determining the existence of employer-
employee relationship:

1) Selection and engagement of the employee;

2) Payment of wages;
3) Power of dismissal; and
4) Power to control the employee’s conduct

3. What are the 4 basic rights of an employee under the Labor Code? (4%)

The following are the 4 basic rights of an employee under the Labor Code:

1) Right to Security of Tenure;

2) Right to Just and Humane Conditions of work;
3) Right to Self-organization; and
4) Right to Collective Bargaining.

4. What are the 3 Statutory Classification of Employees? (3%)

The labor Code classifies employees in the following manner:

1) Managerial;
2) Supervisory; and
3) Rank-and-file.

5. What are the significance of the Classification? (2%)

The classification is significant for purposes of determining eligibility to form, join, or assist in
the formation of a labor organization and the degree of their culpability in disciplinary cases.
6. What are the 3 categories of employment? (3%)

The Labor Code classifies employment into:

 1) Regular employment;
2) Non-regular employment; and
3) Casual employment.

7. Define Security of Tenure. (2%)

In cases of regular employment, the employer shall not terminate the services of an
employee except for a just cause or authorized cause and DUE PROCESS.

8. Define Regular Employment (2%)

Regular employment is a job where the employee was engaged to perform activities which
are USUALLY NECESSARY OR DESIRABLE (UNOD) in the usual business or trade of the employer.

9. What are the 5 classification of non-regular employment? (5%)

Non-regular employment may be classified as follows:

1) Project employment;
2) Seasonal employment;
3) Fixed-term employment;
4) Probationary employment; and
5) Casual employment.

10. What are the 2 basic requirements for hiring probationary employment? (2%)

The 2 basic requirements for hiring probationary employee are:

1) Written contract of probationary employment; and

2) Notification of standards for regularization.

11. List 2 grounds to terminate the services of a probationary employee. (2%)

The services of a probationary employee may be terminated:

1) For any of the valid or authorized causes prescribed by the Labor Code; or
2) For failure to qualify as a regular employee in accordance with reasonable standards
made known by the employer at the time of his engagement.

12. A. Define Management Prerogative. (2%)

Management Prerogative is the right of an Employer to regulate, according to his own

discretion and judgment, all aspects of employment.

12. B Give 2 examples (2%)

It includes:

1) Hiring
2) Work assignments
3) Working methods
4) Time, place and manner of work
 5) Tools to be used
6) Processes to be followed
7) Supervision of workers
8) Working regulations
9) Transfer of Employees
10) Work supervision
11) Lay-off of workers
12) Discipline
13) Dismissal
14) Recall of workers

12. C Is management prerogative an absolute prerogative. Explain your answer. (2%)

No, it is not an absolute prerogative because it is limited by law, contract, and principles of
fair play and justice.

(from UST Golden Notes)

13. What is the doctrine of compassionate justice? (2%) Give case example (2%)

Compassionate justice means disregarding rigid rules and giving due weight to all equities of
the case (Gandara Mill Supply and Milagros Sy v. NLRC and Silvestre Germano, GR NO. 126703,
December 29, 1998)

Example, an employee who was validly dismissed may still be given severance pay.

14. A. What agency has jurisdiction over cases where there exists ER-EE relationship? (1%)

- National Labor Relations Commission (NLRC)

B. What agency has jurisdiction over cases where there exists NO ER-EE relationship? (1%)

- Regular Courts

15. When is illegal recruitment deemed committed by a syndicate? (1%)

Illegal recruitment is deemed committed by a syndicate if it is carried out by a group of three

or more persons conspiring and confederating with one another in carrying out illegal or unlawful
recruitment activity.
16. When is illegal recruitment committed in large scale? (1%)

Illegal recruitment is committed in large scale when it is carried out against three or more
persons, individually or as a group.

17. What is the penalty if illegal recruitment constitutes economic sabotage? (1%)

If illegal recruitment constitutes economic sabotage, the penalty of LIFE IMPRISONMENT

AND a FINE of NOT LESS THAN P2 MILLION nor more than P5 Million shall be imposed.

18. TRUE OR FALSE. Answer TRUE if the statement is true, or FALSE if the statement is FALSE. Explain
your answer in not more than two (2) sentences. 1% each answer
 ANSWER: ALL STATEMENTS ARE FALSE
QUESTION
a License to recruit is valid for 3 years from date of
issuance.
b RA 8042 as amended applies exclusively to Migrant
Workers
c The nationality requirement for a recruitment
agency is 60/40
d A person cannot be charged and convicted for both
illegal recruitment and estafa
e A foreigner can be the Chairman of the Board of
recruitment agency
f The number of persons dealt with is an essential
ingredient of the act of recruitment and placement
of workers
g Migrant workers are regular employees
h A Labor Arbiter can award reinstatement aside from
money claims for illegal dismissal of migrant workers
i Deployment is the same as repatriation
j The minimum amount of Placement fee is
equivalent to one month salary
k License is the same as Authority
l Serrano vs. Gallant Maritime cases declares that
section of money claims regarding phrase for “3
months for every year of the unexpired term,
whichever is less” under RA 10022 as
Unconstitutional
m Simple Illegal recruitment prescribes in 4 years
n Illegal recruitment involving economic sabotage
prescribes in 10 years
o Money claims under RA 8042 prescribe in 5 years
p Employees of retail and service establishments
employing not more than ten (10) workers are not
entitled to NIGHT SHIFT DIFFERENTIAL
q An employer can alone mandate the rest day of the
employees
ANSWER / EXPLANATION
4 years from date of issuance
applies to migrant workers, their families and
overseas Filipinos in distress and for other
purposes
75/25
can be charged and convicted for both.
cannot be the chairman
is not an essential ingredient
Migrant workers are contractual or fixed-term
employees
A Labor Arbiter cannot award reinstatement. It
can only award money claims
deployment is not the same as repatriation.
Deployment means sending out workers from
Philippines to another country; while repatriation
means sending back workers to the Philippines
from another country
maximum amount
License is not the same as Authority.
License is the document issued by DOLE
authorizing a person or entity to operate a
private employment agency; whereas Authority is
a document issued by the DOLE to a person to
conduct recruitment at a designated place
RA 8042
5 years
20 years
3 years
not more than five (5) workers
Preference of the employee should be respected
if it is based on religious grounds. It is also subject
to collective bargaining agreement and rules and
regulations as the Secretary of Labor may provide
(Art. 91 of the Labor Code)
r December 8 is now a regular holiday not a Regular Holiday but a Special Non-working
holiday
s Employees of retail and service establishments less than ten (10) workers
regularly employing less than five (5) workers are
not entitled to Holiday Pay.
t To ease the burden of employees from traffic, 7th hospitals cannot adopt compressed work week
Day hospital can adopt compressed work week
u Congress alone can fix the wages of employees Wage-fixing is a power inherently belongs to
Congress. However Congress has delegated the
said power to RTWPB – Regional Tripartite Wages
and Productivity Board
v Common law wife of a security guard can demand Gen Rule: to the employee;
that the salary of her partner be paid to her directly Exception: 1. EE authorized in writing to deliver
his wages to member of his family or to another
person; 2. When the law authorizes payment to
another.
th
w 13 month pay of a minimum wage earner is taxable non-taxable
x Maternity leave has now been increased to 100 days 105 days
y Paternity leave is convertible to cash if unused is not convertible to cash
z Paternal leave for solo parents is 5 calendar days 7 calendar days
aa VAWC leave is equivalent to 7 days 10 days
bb Special Leave for women is equivalent to one month two months
cc In the interpretation or implementation of the Labor all doubts are to be resolved in favor of the labor
Code, some doubts are to be resolved in favor of the
labor
dd Is 8 hours the normal hours of work? normal hours of work is not exceeding 8 hours
ee P500 is the new minimum wage for workers in the P537
NCR
ff AN employer can legally pay a PWD 75% of the an employer cannot legally pay PWD 75% of the
minimum wage minimum wage. Should be 100%
gg To simplify payment of salaries, employer can set employer cannot set one-time payment of
one-time payment of salaries salaries. Wages shall be paid at least every 2
weeks or twice a month at intervals not
exceeding sixteen (16) days (Art. 103. Of the
Labor Code)
hh P4Million is the required substantial capital for a Job P5 Million
Contractor
ii Employers are required by law to give 13th month -ERs are not required by law to give 13th month
pay to its managers. pay to its managers; or
-ERs are required by law to give 13th month pay
to its rank-and-file employees
jj For the purpose of determining taxable income, 13th 13th month pay not exceeding P82k shall be
month pay exceeding P82,000 shall be excluded in excluded in the computation of gross
the computation of gross compensation income. compensation income

19. Why are family members exempted from prescribed working conditions? (2%)

They are exempted from prescribed working conditions because the employer already takes
care of the sustenance, dwelling, clothing, medial attendance or education of that particular
member of the family
20. Define the principle of “a fair day’s wage for a fair day’s labor” (1%)

This means that the time during which the employees did not render service is not
compensable.

“no work, no pay”’ is also an acceptable answer.

21. Who has the burden of proof in claiming for overtime pay? (1%)

The burden of proving a claim for overtime pay devolves upon the employee.

22. Distinguish overtime pay from premium pay. (1%)

Overtime pay is an additional compensation given to a covered employee for working

beyond eight hours a day; whereas Premium pay is an additional compensation given to a covered
employee for working on a special holiday or rest day.

23. What is the new policy regarding service charges? (1%)

100% of the Service charges shall be given to the employees

24. Define Flexible Work Schedule (2%)

Flexible work schedule is an arrangement where the employee can vary his arrival and
departure time without affecting the core work hours as defined by the employer.

25. Differentiate Facilities from Supplements (3%)

FACILITIES
Items of expenses necessary for the laborer’s
and his family’s existence and subsistence
NOTE: Does not include tools of trade or articles / services
primarily for the benefit of the Er or necessary to the
conduct of the Er’s business.
form part of the wages
Deductible from wage
For the benefit of workers and his family
SUPPLEMENTS
Extra remuneration or special privileges or benefits
given to or received by the laborers over and above
their ordinary earnings or wages [Atok Big Wedge
Mining Co. v. Atok Big Wedge Mutual Benefit Assoc.,
G.R. No. L-7349, July 19, 1955).
Independent of wage
not wage deductible
Granted for the convenience of the employer

*from UST golden notes

26. Define the principle of non-diminution of benefits (2%)

Benefits granted voluntarily, regularly, and unconditionally cannot be reduced or withdrawn

because benefits given regularly, voluntarily and unconditionally become part of the terms and
conditions of employment

27. What are the 2 sanctions to be imposed on employer’s failure or refusal to pay the minimum
wage? (2%)

Employer’s failure or refusal to pay the minimum wage will subject the employer to the
following sanctions:
 1) Double Indemnity, i.e., double the unpaid benefits owing to the employee; and
2) Criminal Liability, i.e., fine ranging from P25k to P100k or imprisonment ranging from 2
years to 4 years or both without benefit of probation

28. Define wage distortion. (2%)

Wage distortion is a situation where an increase in the minimum wages prescribed by law or
wage order results in the elimination or severe contraction of intentional quantitative differences
in wage or salary rates between and among employee groups in the same establishment within the
region thereby obliterating the distinctions embodied in the wage structure based on skills, length of
service, or other logical bases of differentiation.

29. A company suspended its business for a month now because of financial difficulty. The union
is demanding immediate payment of salaries. Do they have a legal right while the company is
currently closed? Explain. (2%)

No. There must be filing of complaint first. (???)

30. Give the 4 distinctions of JOB Contracting and Labor Only Contracting (4%)

1) In Job contracting, the contractor provides services; whereas in labor-only

contracting, the contractor provides manpower only;
2) In job contracting, no employer-employee relationship exists between the
employees of the contractor and the principal employer; whereas in labor-only
contracting, employer-employee relationship is created by law between the
principal employer and the employees of the labor-only contractor;
3) In job contracting, the principal employer is considered only as an indirect
employer; whereas in labor-only contracting, the principal employer is considered
as direct employer of the contractor’s employee;
4) In job contracting, the principal employer and contractor are solidarily liable only for
unpaid wages; whereas in labor-only contracting, the principal employer and labor-
only contractor are solidarily liable for all the rightful claims of the contractor’s
employees

31. What are the 3 powers of the DOLE Secretary in Labor Standards (3%)

The powers of the DOLE Secretary in Labor Standards are as follows:

1) Visitorial Power;
2) Enforcement Power; and
3) Adjudicatory Power.