Labor Standards

Mid-term Exam (AY 2019-20)

27 September 2019

Choose the best answer and encircle the letter before it. (5pts each.)

1. K is a legitimate contractor hired by G for six (6) months. On the third month, G
remitted to K the salaries and wages of the employees. However, K absconded
with the money leaving the employees unpaid. The disgruntled employees
demanded from G the payment of their salaries. Is G liable?
a. No, because G has already remitted the employees’ salaries to K, validly
excusing G from liability;
b. Yes, because he is jointly and solidarily liable for whatever monetary
claims the employees may have against K;
c. Yes, because of the principle of "a fair day’s wage for a fair day’s work".

2. Corporation X is owned by L’s family. L is the President. M, L’s wife,

occasionally gives loans to employees of Corporation X. It was customary that
loan payment were paid to M by directly deducting from the employee’s monthly
salary. Is this practice of directly deducting payments of debts from the
employee’s wages allowed?

a. Yes, because where the employee is indebted to the employer, it is

sanctioned by the law on compensation under Article 1706 of the Civil
Code;
b. Yes, because it has already become customary such that no express
authorization is required;
c. No, because an employee’s payment of obligation to a third person is
deductible from the employee’s wages if the deduction is authorized in
writing;
d. No, because Article 116 of the Labor Code absolutely prohibits the
withholding of wages and kickbacks. Article 116 provides for no
exception

3. A neighbor's gardener comes to you and asks for help because his employer
withheld his salary for two (2) months amounting to P4,000.00. Where will you
advise him to file his complaint?

a. Labor Arbiter;
b. DOLE Regional Director;
c. Conciliator/Mediator;
d. MTC Judge.

4. Which is not a constitutional right of the worker?

a. The right to engage in peaceful concerted activities;
b. The right to enjoy security of tenure;
c. The right to return on investment;
d. The right to receive a living wage.

5. Lolong Law Firm (LLF), which employs around 50 lawyers and 100 regular staff,
suffered losses for the first time in its history. The management informed its
employees that it could no longer afford to provide them free lunch.
Consequently, it announced that a nominal fee would henceforth be charged.
Was LLF justified in withdrawing this benefit which it had unilaterally been
providing to its employees? (1%)

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 a. Yes, because it is suffering losses for the first time.
b. Yes, because this is a management prerogative which is not due to any
legal or contractual obligation.
c. No, because this amounts to a diminution of benefits which is prohibited
by the Labor Code.
d. No, because it is a fringe benefit that has already ripened into a
demandable right.

6. Pepito has been an employee of Sagana Marketing in Malabon for two years.
Sometime in September, he went home to Camarines Sur, his home province,
for a ten-day approved leave with pay. His mother suffered a stroke. Being an
only child, Pepito felt obliged to attend to her. He had to stay in the hospital for
about a month, long after Pepito’s approved leave had expired. Last week of
November, Pepito’s mother died. He returned to Malabon, to return to work. His
supervisor refused to reinstate him telling him that he had been dismissed for
abandonment of his job. Immediately, Pepito went to the NLRC and filed a case
for illegal dismissal. Will the case prosper?

a. Yes. That he filed a case for illegal dismissal is indicative of intention

to return.
b. No. After failing to return after his approved leave expired is equivalent
to abandonment.
c. If none of the above, supply the correct answer.

7. The contract entered into by a contractor who has substantial capital or

investment in the form of tools, equipment, machinery and other materials
necessary in the conduct of his business is:

a. job contracting.
b. labor-only contracting
c. sub-contracting

8. The situation where an establishment must reduce personnel on account of

installation of labor-saving devices is called:

a. mass dismissal.
b. redundancy.
c. retrenchment.

9. The relationship between the owner/operator and the jeepney driver/conductor

under the “boundary” system is that of:

a. lessor-lessee;
b. employer-employee;
c. If none of the above, supply the correct answer.

10. The regular hours of work 5 days/8 hours a week. Among the exceptions are
the health workers who may be required 6 days/48 hours a week. They are,
however, entitled to additional compensation of at least:

a. 10% of their regular wage.

b. 15% of their regular wage.
c. 30% of their regular wage.

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 Cases: (10 points each)

1. On 18 October Jose reported at 8:00 o’clock for his 6:00 – 2:00 shift. On 22
October, one of the team members of the 2:00-10:00 shift was absent. His
supervisor asked Jose to take his (the absent member) post. On pay day,
Jose was paid for only 6 hours overtime. When he demanded payment for his
8-hour overtime, his supervisor explained that his undertime had been
deducted from his overtime. Was the action of the management correct?
Explain.

2. MCQ is a security agency. It has a contract with ABC Grocery and provides
the latter with security guards. Meantime, the Wage board issued a Wage
Order increasing the minimum wage. MCQ wrote ABC asking for a
corresponding increase in the salaries of the security guards assigned to it.
ABC refused, arguing that nowhere in its contract with MCQ is there a
provision obliging it to pay any increase in the security guards’ salaries.

May MCQ oblige ABC to pay the increase in the salaries of the security
guards? Why? Explain.

3. Pedro, Jose , and Pablo were employees of Delibakery who resigned from
their jobs but wanted to file money claims for unpaid wages and 13th month
pay.
Pedro’s claim totals P20,000.00, Jose’s P3,000.00, and Pablo’s P22,000.00.
Jose changed his mind and now also wants reinstatement because he
resigned only upon the instigation of Pedro and Pablo.

All three come to you for advice. Where should they file their claims?
Explain your answer.

4. Jessie James is a doctor. He has been working as a resident physician at the

Philippine General Hospital, a training hospital. Eight months into his residency,
Jessie James was dismissed on grounds of some alleged irregularities in the
dispensation of some medicines.
Jessie James filed a complaint for illegal dismissal, citing that there was no
compliance with due process.
Will the complaint for illegal dismissal prosper? Explain.
.
5. On 16 November 1993 Regional Wage Board passed Wage Order No. R02—
02 providing increase in minimum wage in Region II. More than a year later, the
Board passed Wage Order R02-02-A amending Wage order No. R02-02
granting instead for an across the board wage increase, retroactive to date of
effectivity of Wage Order 02-02. Is the amendment valid?

Good Luck!