LABOR LAW (2010-2012)

1. A deed of release, waiver, or quitclaim is generally considered invalid under which of the following circumstances?

Authority:

A. When the employee is in severe financial distress at the time of signing.

B. When the consideration for the quitclaim is credible and reasonable, but not the full amount of the employee’s claim.

C. When the employee’s consent was vitiated, such as being induced to resign based on the false belief that the company was closing.

D. When the document is not notarized before a notary public.

2. The relationship between an employer and an employee is characterized as what?

Authority:

A. Purely contractual, governed strictly by the terms and conditions agreed upon by the parties.

B. A matter of public interest, where the law assumes the employee is at a disadvantage.

C. Primarily a property right of the employer over the employee’s service.

D. A partnership where both parties share equal footing and risk.

3. What is the general rule regarding the hiring of Overseas Filipino Workers (OFWs)?

Authority:

A. Direct hiring by foreign employers is encouraged to reduce costs for the OFW.

B. Direct hiring is not allowed, subject to certain exceptions.

C. All hiring must be processed through the Philippine Overseas Employment Administration (POEA) without exception.

D. OFWs can only be hired through private recruitment agencies.

4. Which mode of dispute resolution involves a third party assisting the disputing parties in reaching a settlement, but without the authority to impose a binding resolution?

Authority:

A. Arbitration

B. Conciliation

C. Litigation

D. Assumption of Jurisdiction

5. A bargaining strategy characterized by making exaggerated or unreasonable proposals that are not meant to be taken seriously is known as:

Authority:

A. Surface bargaining

B. Good faith bargaining

C. Blue-sky bargaining

D. Boulwarism

6. A single, unwed female employee who is an active SSS member and is seven months pregnant requires a caesarean section delivery Is she entitled to maternity benefits?

Authority:

A. No, because the benefit does not extend to employees who are unwed.

B. Yes, she is entitled to 60 days of maternity leave.

C. Yes, she is entitled to 78 days of maternity leave due to the caesarean delivery.

D. No, because she has been a member for only 20 months, which is less than the required period.

7. An employee was on paid leave on a Wednesday He reported for work on Maundy Thursday and Good Friday, both of which are regular holidays How should his holiday pay be computed?

Authority:

A. He is not entitled to holiday pay because he was on leave the day before the holidays.

B. He is entitled to holiday pay for both Maundy Thursday and Good Friday.

C. He is only entitled to holiday pay for Maundy Thursday, the first holiday.

D. He is entitled to holiday pay for Good Friday only, as it follows a workday.

8. A rank-and-file union officer was promoted to a supervisory position A rival union sought the cancellation of the union’s registration because the promoted officer remained a member Is the petition meritorious?

Authority:

A. Yes, the inclusion of a supervisor in a rank-and-file union is a ground for cancellation of its registration.

B. No, the inclusion of a disqualified employee is not a ground for cancellation of the union’s registration.

C. Yes, because the promoted officer is now part of management and has a conflict of interest.

D. No, as long as the promoted officer does not participate in union activities.

9. A union with 500 members held a strike vote where 245 members voted to stage a strike A notice of strike was filed on March 16, and the strike commenced on March 23 Was the strike legal?

Authority:

A. Yes, because a notice of strike was filed with the National Conciliation and Mediation Board (NCMB).

B. No, because the strike vote failed to obtain the required majority of the total union membership.

C. Yes, because the 7-day strike ban after the vote was observed.

D. No, because the strike was initiated less than 30 days from the filing of the notice.

10. During an illegal strike, an employee left the picket line to go to the hospital where his wife was giving birth The company dismissed him along with other strikers Was his dismissal valid?

Authority:

A. No, because his absence from the picket line means he did not commit any illegal acts during the strike.

B. Yes, because participation in an illegal strike is a valid ground for termination.

C. No, because his reason for leaving was a family emergency which is a justifiable cause for absence.

D. Yes, but he is entitled to separation pay for humanitarian reasons.

11. An able seaman on a foreign vessel tested positive for marijuana during a random drug test conducted pursuant to a policy he acknowledged After being given a chance to explain, he was repatriated and dismissed Was the dismissal valid?

Authority:

A. No, because the drug test was conducted without a warrant and violated his privacy.

B. Yes, because he violated a reasonable company policy which he agreed to, and he was afforded due process.

C. No, because his dismissal was effected in a foreign port, outside the jurisdiction of Philippine labor laws.

D. Yes, but only if the drug use impaired his ability to perform his duties.

12. An illegally dismissed OFW claims salaries for the unexpired portion of his contract Is this claim tenable?

Authority:

A. No, the claim is limited to three months’ salary for every year of the unexpired term.

B. Yes, the claim for the full unexpired portion of the contract is tenable.

C. No, because he was dismissed for a just cause.

D. Yes, but the amount is subject to negotiation with the recruitment agency.

13. When a CBA expires and negotiations for a new one are ongoing, what is the status of the economic provisions of the expired CBA, such as a midyear bonus?

Authority:

A. They are automatically terminated, and the company is no longer obliged to provide them.

B. They remain in force until a new CBA is executed.

C. They are suspended and may be reinstated retroactively depending on the new CBA.

D. Their continued effectivity is at the sole discretion of the employer.

14. A company has a policy requiring employees to disclose any relationship with employees of competing companies An employee questions the validity of this policy What advice should be given?

Authority:

A. The policy is void as it infringes on the employee’s right to privacy and to form relationships.

B. The policy is valid as it is a reasonable exercise of management prerogative to protect against potential conflicts of interest.

C. The policy is valid only if the employee holds a managerial or highly confidential position.

D. The policy is void unless it is included in a Collective Bargaining Agreement (CBA).

15. Can an employee of a cooperative who is also a member-owner of the same cooperative join a union of the cooperative’s employees?

Authority:

A. Yes, because the right to self-organization is absolute for all employees.

B. No, an employee-owner is considered part of management and is ineligible to join a rank-and-file union.

C. Yes, as long as his ownership stake does not exceed 10% of the cooperative’s capital.

D. No, unless he waives his right to receive dividends from the cooperative.

16. An employee voluntarily resigned and signed a quitclaim based on the company’s representation that it was closing down The company, however, continued its business under a new name Is the quitclaim valid?

Authority:

A. Yes, because he admitted he was not forced to sign it.

B. No, because the consent was vitiated by the employer’s misrepresentation.

C. Yes, because the separation pay was equivalent to seven months’ pay, which is a substantial amount.

D. No, because all quitclaims are against public policy.

17. An OFW signed a POEA-approved contract but was not deployed for more than three months after securing his exit clearance, for no valid reason Is he entitled to any relief?

Authority:

A. No, because the employment contract commences only upon actual departure.

B. Yes, he may be considered to have been constructively dismissed and can claim damages.

C. No, his only remedy is to demand a new deployment date from the manning agency.

D. Yes, but his claim is limited to a refund of any fees he paid.

18. An employee who is not a member of the sole and exclusive bargaining agent (SEBA) union receives benefits from the CBA negotiated by the SEBA Can the SEBA assess him agency fees?

Authority:

A. No, because he is not a member of the SEBA.

B. Yes, because he benefits from the CBA, and the collection of agency fees is authorized by law.

C. No, because he has not provided a written authorization for the deduction.

D. Yes, but only if he is a member of a rival union.

19. An employee who works from 10 a m to 5 p m was ordered by his manager to work a second shift starting at 10 p m on the same day Can the employee validly refuse?

Authority:

A. No, because the employer’s order is a legitimate exercise of management prerogative.

B. Yes, because an employee cannot be compelled to render overtime work against his will, subject to exceptions.

C. No, because filling in for an absent co-worker is a valid emergency that justifies compulsory overtime.

D. Yes, but only if he is not being offered overtime pay.

20. An employee worked from 11 p m on Thursday to 2 a m on Friday The company argued that since he was two hours late for his regular shift on Thursday morning, he should only be paid for work from 1 a m to 2 a m Is this correct?

Authority:

A. Yes, the company can offset the undertime against the overtime work.

B. No, the undertime from a regular shift cannot be offset against overtime work on a different day.

C. Yes, because the total hours worked within the 24-hour period did not exceed the standard 8 hours.

D. No, because all work rendered after midnight is automatically considered overtime.

21. A member of the company’s managerial staff was admitted into a union of supervisory employees Is this membership proper?

Authority:

A. Yes, because supervisors and managers are both considered management employees.

B. No, managerial employees are not eligible to join, assist, or form any labor organization.

C. Yes, as long as the managerial employee does not hold a top-tier position like CEO or President.

D. No, unless the union’s constitution and by-laws are amended to allow such membership.

22. If a union of supervisory employees is found to have an ineligible managerial employee as a member, what is the effect on the union’s registration?

Authority:

A. The registration will be automatically cancelled.

B. The registration of the union shall not be cancelled.

C. The union will be suspended until the ineligible member is removed.

D. The union will be ordered to conduct a new election of officers.

23. During CBA negotiations, a union went on mass leave to participate in a prayer rally after the company suggested discussing political provisions before economic ones Can the company file a petition for assumption of jurisdiction?

Authority:

A. No, because a prayer rally is a valid exercise of the employees’ freedom of religion.

B. Yes, because the mass leave can be considered a strike in disguise that paralyzes the company’s operations.

C. No, because the company was guilty of unfair labor practice by refusing to discuss economic provisions.

D. Yes, but only if the company is an industry indispensable to the national interest.

24. A union contended its strike was valid because it was prompted by the company’s refusal to discuss the economic provisions of the CBA Is this contention correct?

Authority:

A. Yes, refusal to bargain on economic provisions is a form of unfair labor practice (ULP) and a valid ground for a strike.

B. No, the strike was premature as the parties had just agreed on ground rules for the negotiation.

C. Yes, because economic provisions are the most important part of a CBA.

D. No, because a strike can only be staged after the 60-day cooling-off period has expired.

25. After the Secretary of Labor assumed jurisdiction over a labor dispute, the company served a notice of termination on a union member who led a prayer rally Is this termination valid?

Authority:

A. Yes, because leading a protest action during negotiations is an act of insubordination.

B. No, because the assumption of jurisdiction by the Secretary results in a status quo, and no employee may be terminated during its pendency.

C. Yes, if the employee has a prior record of disciplinary infractions.

D. No, unless the employee’s position is declared redundant.

26. A worker was hired as a plantation worker but also worked as a houseboy at the owner’s house Later, the owner decided to only retain him as a houseboy and not as a plantation worker The worker filed a case for illegal dismissal How should this be decided?

Authority:

A. The case should be dismissed because a houseboy is a domestic helper, not a regular employee.

B. The dismissal from his role as a plantation worker is valid as there is no downward demotion in being retained as a houseboy.

C. The case will prosper as he was illegally dismissed from his job as a plantation worker without just or authorized cause.

D. The case will not prosper because the owner has the management prerogative to decide who to hire for the season.

27. An airline requires flight attendants to maintain a specific weight A flight attendant exceeded the limit, was given 60 days to “shape up,” but only partially met the target Can she be dismissed?

Authority:

A. No, because obesity is not a just cause for dismissal under the Labor Code.

B. Yes, if the weight standard is a bona fide occupational qualification and she failed to comply despite being given an opportunity to do so.

C. No, because the company’s standard is unreasonable and discriminatory.

D. Yes, but she must be given separation pay equivalent to one month’s salary for every year of service.

28. After a union staged a strike, the Secretary of Labor assumed jurisdiction without conducting a hearing Was the order to assume jurisdiction legal?

Authority:

A. No, the Secretary must always conduct a hearing to satisfy due process.

B. Yes, the Secretary’s power to assume jurisdiction is discretionary and may be exercised without a prior hearing.

C. No, because the strike was in response to the termination of employees due to redundancy, which is a valid ground.

D. Yes, but only if the President of the Philippines certifies the labor dispute.

29. In an assumption of jurisdiction order, the Secretary of Labor directed all striking workers to return to work, except those who were terminated due to redundancy Is this order legal?

Authority:

A. No, the order must direct all workers to return to work without exception to maintain the status quo.

B. Yes, the Secretary has the discretion to determine who should be included in the return-to-work order.

C. No, because it makes a premature finding on the legality of the redundancy.

D. Yes, because employees terminated for an authorized cause like redundancy are not considered strikers.

30. A bus driver, paid on a commission basis, sued for non-payment of service incentive leave (SIL) credits after five years of employment Is he entitled to SIL?

Authority:

A. No, because he is a field personnel paid on commission, which exempts him from the SIL benefit.

B. Yes, because a bus driver is not considered field personnel as his work is supervised and his route is controlled by the employer.

C. No, because SIL is only for employees paid a fixed monthly salary.

D. Yes, but his claim has prescribed as it should be filed within three years.

31. An individual who was an unregistered employee of a licensed recruitment agency conducted interviews and collected processing fees from an applicant Can this individual be held criminally liable for illegal recruitment?

Authority:

A. No, because he is merely an employee and liability rests solely with the agency’s officers.

B. Yes, any person, whether a non-licensee or non-holder of authority, who performs recruitment activities can be liable.

C. No, because the agency itself was licensed by the POEA.

D. Yes, but only if he was the one who informed the applicant that he could not be deployed.

32. Can the officers of a licensed recruitment agency be held criminally liable for the illegal recruitment activities performed by an unregistered employee?

Authority:

A. No, if they were not aware of the employee’s specific actions.

B. Yes, because the obligation to register its personnel with the POEA belongs to the officers of the agency.

C. No, because the agency’s license protects its officers from liability for the acts of its employees.

D. Yes, but only if they directly received the processing fees paid by the applicant.

33. A recruitment agency deployed a worker to a Saudi Arabian firm On site, the employer compelled the worker to sign a new contract with a different employer for a much lower salary Can the original agency be held liable?

Authority:

A. No, because the agency was not privy to the new contract signed abroad.

B. Yes, the agency is jointly and severally liable with the foreign principal for any breach of the original POEA-approved contract.

C. No, because the worker consented to the new contract by signing it.

D. Yes, but only if the second employer is also accredited by the POEA.

34. A hotel deducts the costs of food and lodging from its roomboys’ wages, resulting in a net pay below the minimum wage The hotel argues this is based on a long-standing, unwritten policy Is this deduction valid?

Authority:

A. Yes, if the policy is long-standing and accepted by the employees.

B. No, because the deduction for facilities must meet certain legal requirements, which were not shown to be met.

C. Yes, because food and lodging are valid facilities that can be charged to the employee.

D. No, because deducting from wages is illegal under all circumstances.

35. A union’s registration was petitioned for cancellation because the submitted minutes of ratification of its CBL were allegedly fraudulent The union claimed it was a mere typographical error in the date How should the case be decided?

Authority:

A. Cancel the registration, as fraudulent submissions are a serious violation.

B. Uphold the registration, as such a minor error, if proven, should not prejudice the union’s right to organize.

C. Suspend the union and require a new ratification meeting.

D. Refer the matter to the members to vote on whether to retain the union.

36. A company banned the use of cell phones in the factory to prevent operational disruptions A union challenged the ban’s validity in the Regional Trial Court (RTC) The company moved to dismiss, arguing the issue belongs to the grievance machinery Is the company correct?

Authority:

A. No, the RTC has jurisdiction because the union challenged the constitutionality of the policy.

B. Yes, the dispute arises from the interpretation or implementation of a company policy, which is a proper subject for the grievance machinery and voluntary arbitration.

C. No, the Labor Arbiter has jurisdiction over all disputes between employers and employees.

D. Yes, but only if the cell phone ban was explicitly mentioned in the CBA.

37. What is the primary difference between Labor-Only contracting and Job-Only (or Legitimate Job) contracting?

Authority:

A. Labor-Only contracting involves work that is not necessary for the principal’s business, while Job-Only contracting involves essential work.

B. In Labor-Only contracting, the contractor does not have substantial capital or investment in tools and exercises no control over the employees.

C. A Labor-Only contractor has a valid DOLE registration, whereas a Job-Only contractor does not.

D. Labor-Only contracting is for a fixed term, while Job-Only contracting is indefinite.

38. The Labor Secretary assumed jurisdiction over a strike at a college and issued a return-to-work order The union filed a motion for reconsideration and continued the strike Is the union’s contention that they were not obligated to return to work immediately correct?

Authority:

A. Yes, the filing of a motion for reconsideration suspends the effectivity of the return-to-work order.

B. No, a return-to-work order is immediately executory, and its defiance can result in the termination of the striking employees.

C. Yes, because the union has the right to question the Secretary’s assumption of jurisdiction.

D. No, but the employees cannot be terminated until the motion for reconsideration is resolved.

39. In a dispute where the Labor Secretary assumes jurisdiction, the union argues that a private college is not an industry indispensable to the national interest Is this argument sufficient to invalidate the assumption of jurisdiction?

Authority:

A. Yes, assumption of jurisdiction is strictly limited to essential industries like power and transportation.

B. No, the Labor Secretary’s determination of what constitutes an industry indispensable to the national interest is given great weight and is discretionary.

C. Yes, if the college is not one of the top universities in the country.

D. No, because all educational institutions are considered indispensable to national interest.

40. A union demanded the dismissal of members who were initiating a disaffiliation movement, based on a “maintenance of membership” provision in the CBA The company complied Will an illegal dismissal case against the company prosper?

Authority:

A. No, because the company was merely complying with its contractual obligation to the union under the CBA.

B. Yes, because the act of disaffiliation is not an act of disloyalty to the union that would warrant termination.

C. No, because the CBA contained a clause holding the company free from any claims.

D. Yes, but only if the members were not given 30 days’ notice before dismissal.

41. In an illegal dismissal case arising from the enforcement of a union security clause, what is the liability of the employer who complied with the union’s demand for dismissal?

Authority:

A. The employer has no liability as it acted in good faith based on the CBA.

B. The employer is held solidarily liable with the union that demanded the dismissal.

C. The employer is solely liable as the ultimate act of dismissal was carried out by it.

D. The employer is only liable for separation pay, while the union is liable for backwages.

42. A union filed a complaint for specific performance against a company in the RTC to compel it to negotiate a new CBA The company had merged with another corporation The company filed a motion to dismiss based on lack of jurisdiction Is the motion valid?

Authority:

A. No, the RTC has jurisdiction because specific performance is a civil action.

B. Yes, the dispute is a labor dispute arising from CBA negotiations, which falls under the jurisdiction of the Labor Arbiter or NLRC, not the RTC.

C. No, because the case involves two corporations, which makes it an intra-corporate dispute for the RTC.

D. Yes, but the case should be filed with the NCMB for mediation.

43. Company A closed, and its owners immediately established Company B with the same officers, address, and business Can Company B be held liable for the labor claims of Company A’s illegally dismissed employees?

Authority:

A. No, because Company B is a separate and distinct juridical entity.

B. Yes, by piercing the corporate veil, as Company B appears to be a mere continuation or alter ego of Company A.

C. No, unless Company B formally assumed the liabilities of Company A in a written agreement.

D. Yes, but only if the employees of Company A were rehired by Company B.

44. Guest Relations Officers (GROs) work in a nightclub without fixed compensation but earn from commissions and tips under the supervision of the manager Can they form a labor union for collective bargaining purposes?

Authority:

A. No, because they are not paid a salary and thus lack an employer-employee relationship.

B. Yes, because the element of control exercised by the club’s manager is sufficient to establish an employer-employee relationship.

C. No, because they are free to ply their trade elsewhere and are thus independent contractors.

D. Yes, but only for the purpose of standardizing their commission rates, not for a full CBA.

45. A 12-year-old boy does chores for a teacher after school hours for a small allowance The teacher is charged with violating the law against child labor Her defense is that the work is not hazardous Is her defense tenable?

Authority:

A. Yes, because the prohibition only applies to hazardous work for children below 15.

B. No, because the general rule is that children below 15 years of age shall not be employed, subject to limited exceptions.

C. Yes, because there is no formal employment contract.

D. No, because giving an allowance makes it a form of employment.

46. A person is employed as a driver On Mondays, Wednesdays, and Fridays, he drives the family car for the children’s school On Tuesdays, Thursdays, and Saturdays, he drives the family van to deliver goods for the family’s boutique Is he a house helper?

Authority:

A. Yes, because his primary duty involves serving the family directly.

B. No, because he is not living within the employer’s household.

C. No, because he regularly performs work for his employer’s commercial business.

D. Yes, but he is considered a “dual-role” employee.

47. A driver performs both domestic duties (driving the family car) and commercial duties (delivering goods for a boutique) For his work on the days he delivers goods, is he entitled to the minimum wage for a commercial driver?

Authority:

A. No, his salary is governed by the single contract he has as a family driver.

B. Yes, the portion of his work dedicated to the commercial enterprise must be compensated according to the statutory minimum wage.

C. No, unless the boutique is his principal work assignment.

D. Yes, but only if he works more than 8 hours on those days.

48. A bank hired several handicapped workers for a fixed period of six months to sort currency After six months, their employment was terminated Will an illegal dismissal complaint prosper?

Authority:

A. Yes, because handicapped workers are entitled to security of tenure like regular employees.

B. No, because the fixed-term contract was validly entered into, and the termination was due to the expiration of this term.

C. Yes, because the work of sorting currency is necessary and desirable to the bank’s business.

D. No, unless they can prove that non-handicapped workers were hired to replace them.

49. An airline requires flight attendant applicants to be single An applicant who was hired revealed after her probationary period that she was married, although the marriage is being annulled She was not regularized as a result Is this non-regularization legal?

Authority:

A. Yes, because she violated the company’s policy and was dishonest about her civil status.

B. No, because a “single-only” requirement is a form of marital discrimination prohibited by the Labor Code.

C. Yes, because an employer has the prerogative to set its own pre-employment qualifications.

D. No, but only because her marriage is in the process of being annulled.

50. An electronics technician works within the premises of an auto shop, using parts provided by the shop The shop collects service fees from customers and pays the technician weekly The shop claims he is an independent contractor Is this correct?

Authority:

A. Yes, because it is common practice in the industry to treat technicians as independent contractors.

B. No, because the elements of control and economic dependence suggest he is a regular employee.

C. Yes, because he is free to render service in other auto shops.

D. No, because he is loyal to the shop and does not work for anyone else.

51. Which of the following is NOT a recognized mode of determining an exclusive bargaining agent?

Authority:

A. Voluntary Recognition

B. Certification Election

C. Consent Election

D. Direct Recognition by the Employer

52. How does a Certification Election differ from a Consent Election?

Authority:

A. A Certification Election is ordered by the DOLE, while a Consent Election is voluntarily agreed upon by the parties.

B. A Certification Election can have a “No Union” choice, while a Consent Election cannot.

C. A Certification Election is final, while a Consent Election requires ratification by the DOLE Secretary.

D. A Certification Election involves one union, while a Consent Election involves multiple unions.

53. A corporation decides to close its business due to serious business losses over the past five years What is a key step it must take prior to closure?

Authority:

A. Obtain permission from the Securities and Exchange Commission (SEC).

B. Serve a written notice to the employees and the DOLE at least one month before the intended date of closure.

C. Negotiate a closure bonus with the employees’ union.

D. Publish the notice of closure in a newspaper of general circulation.

54. If a company closes due to serious business losses, are the employees entitled to separation pay?

Authority:

A. Yes, they are entitled to one month’s pay for every year of service.

B. No, when the closure is due to serious business losses, the employer is not required to pay separation pay.

C. Yes, they are entitled to half a month’s pay for every year of service.

D. It depends on the company’s ability to pay, as determined by the Labor Arbiter.

55. If the reason for a company’s closure is the old age of its owners, is this closure allowed by law?

Authority:

A. No, old age is not one of the authorized causes for closure under the Labor Code.

B. Yes, the closure is allowed as it is a voluntary business decision and a valid exercise of management prerogative.

C. No, unless the owners are physically incapacitated to manage the business.

D. Yes, but only if the company is a sole proprietorship.

56. When a company closes due to the old age of its owners and not due to financial losses, are the employees entitled to separation benefits?

Authority:

A. No, because it is not a closure due to an authorized cause listed in the Labor Code.

B. Yes, since the closure is not due to serious business losses, the employees are entitled to separation pay.

C. No, because the closure is voluntary and not forced upon the employer.

D. It depends on what is stipulated in the Collective Bargaining Agreement.

57. A taxi driver paid on the “boundary” system worked for 14 years Is he entitled to 13th-month pay?

Authority:

A. No, because the boundary system means he is not a regular employee.

B. Yes, because taxi drivers under the boundary system are considered employees for the purpose of labor standards like 13th-month pay.

C. No, because his income is not fixed and depends on his daily earnings.

D. Yes, but only if his boundary payments exceeded the minimum wage.

58. A taxi driver who was not paid service incentive leave (SIL) for 14 years retires Should his retirement pay include the cash equivalent of his accrued SIL?

Authority:

A. No, retirement pay is computed based on salary alone.

B. Yes, the retirement pay computation should include the cash equivalent of the five days SIL.

C. No, because his claim for SIL has prescribed for most of the 14-year period.

D. Yes, but only for the last three years of service.

59. A manpower service company has a substantial capital of three million pesos but has no investment in tools, equipment, or machinery A Labor Arbiter rules that it is a labor-only contractor Is this ruling valid?

Authority:

A. No, having substantial capital is sufficient to be considered a legitimate contractor.

B. Yes, because to be a legitimate contractor, one must have either substantial capital OR investment in tools, equipment, etc.

C. Yes, because the law requires a contractor to have BOTH substantial capital AND investment in tools and equipment.

D. No, the ruling is not valid because the Labor Arbiter failed to consider if the contractor exercised control over the employees.

60. If a contractual employee supplied by a legitimate contractor performs activities directly related to the main business of the principal, does this automatically make him a regular employee of the principal?

Authority:

A. Yes, because performing activities directly related to the principal’s business is the test of regular employment.

B. No, this does not necessarily make him a regular employee of the principal, as long as the contractor is legitimate.

C. Yes, unless the employee’s contract is for a fixed term of less than one year.

D. No, he remains an employee of the contractor, but the principal becomes solidarily liable for his wages.

61. What is the key legal principle governing the validity of waivers and quitclaims?

Authority:

A. They are always valid as long as they are signed by the employee.

B. They are generally frowned upon but not automatically void.

C. They are void if the payment is less than the legal minimum wage.

D. They must be approved by the Labor Arbiter to be valid.

62. Which of the following best describes the nature of “arbitration” in labor law?

Authority:

A. A process where parties negotiate directly to resolve their differences.

B. A system where a neutral third party issues a binding award after hearing both sides.

C. A method where a government official mediates but cannot compel an agreement.

D. A formal court proceeding before a judge.

63. An employee is promoted to a supervisory role What is the impact on their membership in a rank-and-file union?

Authority:

A. They can remain a member but cannot vote in union elections.

B. They are automatically deemed removed from the rank-and-file union upon promotion.

C. They must be expelled by the union through a formal process.

D. They can choose to remain a member of the rank-and-file union.

64. What is the consequence of an employer’s refusal to bargain with the sole and exclusive bargaining agent?

Authority:

A. It constitutes an unfair labor practice.

B. It automatically triggers a legal strike.

C. It allows the employees to directly negotiate with management.

D. It results in the cancellation of the employer’s business license.

65. The “automatic renewal clause” or evergreen clause in a CBA means that:

Authority:

A. The CBA is automatically renewed with the same terms for another full term.

B. The CBA provisions remain in effect after expiry until a new one is concluded.

C. The union is automatically recognized for another term without a certification election.

D. The economic provisions automatically increase based on the inflation rate.

66. A complaint for illegal dismissal was filed by an OFW The dismissal occurred on a vessel docked in a foreign port Which body has jurisdiction over the complaint?

Authority:

A. The courts of the foreign country where the dismissal occurred.

B. The National Labor Relations Commission (NLRC) in the Philippines.

C. The Philippine Overseas Employment Administration (POEA).

D. The Maritime Industry Authority (MARINA).

67. For a deduction for facilities from an employee’s wage to be valid, which condition is NOT required?

Authority:

A. The employee must have voluntarily accepted it in writing.

B. The deduction must be for the employer’s profit.

C. The facility must be customarily furnished by the trade.

D. The facility must be for the benefit of the employee or his family.

68. The act of an employer of going through the motions of negotiating without any real intent to reach an agreement is called:

Authority:

A. Blue-sky bargaining

B. Surface bargaining

C. Collective bargaining

D. Good faith bargaining

69. What is the prescriptive period for filing a claim for service incentive leave?

Authority:

A. One year

B. Three years

C. Five years

D. Ten years

70. In the 2010 bar problem, an employee was made to work from 11 p m to 2 a m Which part of this work period entitles him to night shift differential pay?

Authority:

A. From 11 p.m. to 12 a.m.

B. From 12 a.m. to 2 a.m.

C. The entire period from 11 p.m. to 2 a.m.

D. None, if the total work hours for the day do not exceed eight.

71. If an employee is found to have been illegally recruited, who is generally held liable?

Authority:

A. Only the individual recruiter.

B. Only the officers of the recruitment agency.

C. The recruiter, the agency, and its officers are all solidarily liable.

D. The Philippine Overseas Employment Administration (POEA) for lack of supervision.

72. Termination of employment due to the installation of labor-saving devices or redundancy is considered a/an:

Authority:

A. Just cause

B. Authorized cause

C. Unfair labor practice

D. Illegal dismissal

73. A termination based on the enforcement of a union security clause in a CBA requires that:

Authority:

A. The employee has committed an act of disloyalty against the employer.

B. The union must provide the employee with notice and hearing before demanding dismissal.

C. The dismissal be based on grounds such as disaffiliation, which is considered an act of disloyalty to the union.

D. The employer and the union are solidarily liable for illegal dismissal if the ground for dismissal is not valid.

74. The process of “piercing the corporate veil” in a labor case is applied when:

Authority:

A. A corporation declares bankruptcy to avoid paying its workers.

B. A new corporation is essentially a continuation or alter ego of a previous one, used to evade labor obligations.

C. Two corporations merge, and the surviving corporation refuses to absorb the other’s employees.

D. A corporation changes its name to rebrand its products.

75. Employment of a child below 15 years of age is generally prohibited An exception is when the child works directly under the sole responsibility of:

Authority:

A. Their school principal

B. A registered talent agency

C. Their parents or legal guardian

D. The Department of Social Welfare and Development (DSWD)

76. A pre-employment qualification that requires an applicant to be of a particular marital status, such as “single-only,” is:

Authority:

A. A valid exercise of management prerogative.

B. Generally considered unlawful discrimination.

C. Permissible for flight attendants and other similar professions.

D. Lawful if there is a bona fide occupational qualification.

77. The “control test” is the most crucial test in determining:

Authority:

A. The legality of a strike.

B. The existence of an employer-employee relationship.

C. The validity of a Collective Bargaining Agreement.

D. The computation of overtime pay.

78. What is Voluntary Recognition as a mode of determining the bargaining agent?

Authority:

A. The employer voluntarily recognizes a union that shows majority support without a formal election.

B. The employees voluntarily recognize the employer’s chosen union.

C. Two unions voluntarily agree to share representation.

D. The DOLE voluntarily recognizes a union in a new company.

79. What is the primary purpose of a return-to-work order issued by the Secretary of Labor?

Authority:

A. To punish the union for striking.

B. To restore the status quo and resolve the dispute while the parties are back at their respective positions.

C. To allow the employer to hire replacement workers.

D. To permanently resolve the issues in the labor dispute.

80. For a claim of illegal recruitment in the form of large-scale estafa, it must be committed against how many persons?

Authority:

A. Two or more persons.

B. Three or more persons.

C. Five or more persons.

D. Ten or more persons.

81. In the 2012 bar problem, a union filed a Motion for Reconsideration of the Secretary’s return-to-work order and continued their strike This action was deemed:

Authority:

A. A valid exercise of their right to legal process.

B. A justifiable defiance pending the resolution of their motion.

C. A ground for the termination of the striking union officers and members.

D. Contempt of court but not a ground for termination.

82. According to the 2012 bar problem, a CBA has an “automatic renewal clause ” What is the effect of this clause when the CBA expires?

Authority:

A. The CBA is extended for another term with identical provisions.

B. The agreement continues to apply until a new agreement is executed.

C. The union must renegotiate the clause for it to take effect.

D. The company can unilaterally withdraw the benefits from the expired CBA.

83. The act of a company merging with another corporation during CBA negotiations is:

Authority:

A. An unfair labor practice per se.

B. A valid business decision that can suspend negotiations.

C. A ground for the union to file a case in the Regional Trial Court.

D. A reason to automatically extend the old CBA for one year.

84. An employer cannot legally terminate a handicapped worker on the ground that:

Authority:

A. Their fixed-term contract has expired.

B. They are less efficient than able-bodied workers.

C. Their specific disability makes them unqualified for the job.

D. The work is necessary and desirable to the employer’s business.

85. In determining if a worker is a regular employee or an independent contractor, what did the 2012 bar problem emphasize for a technician working in an auto shop?

Authority:

A. The place of work being within the shop’s premises.

B. The technician’s loyalty to the shop.

C. The shop’s control over the service fees and payment schedule.

D. The common practice in the auto shop industry.

86. A taxi driver working under the “boundary system” is considered an employee Is he entitled to service incentive leave?

Authority:

A. No, because he is a field personnel who is not supervised.

B. Yes, because he is considered a regular employee entitled to labor standards.

C. No, because his earnings are not fixed.

D. Yes, but only if he remits a boundary fee that is above the industry average.

87. Can retirement pay be computed to include unpaid 13th-month pay and service incentive leave pay?

Authority:

A. No, retirement pay is based solely on the employee’s latest salary rate.

B. Yes, these unpaid benefits should be included in the final computation upon retirement.

C. No, because the claims for these benefits may have prescribed.

D. Yes, but only the amount corresponding to the last three years of service.

88. The performance of activities directly related to the main business of the principal by an employee of a contractor:

Authority:

A. Automatically makes the employee a regular employee of the principal.

B. Is a strong indicator of labor-only contracting, but not conclusive.

C. Is irrelevant if the contractor is registered with DOLE.

D. Makes the principal solidarily liable for wages only.

89. The act of an employer dismissing an employee for marrying an employee of a rival company could be challenged on the grounds of:

Authority:

A. Discrimination and violation of the employee’s personal freedom.

B. Unfair labor practice for interfering with union activities.

C. Serious misconduct.

D. Willful disobedience.

90. The power of the Secretary of Labor to assume jurisdiction over a labor dispute is invoked when the dispute occurs in an industry considered:

Authority:

A. Highly profitable

B. Indispensable to the national interest

C. Export-oriented

D. To have more than 1,000 employees

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Multiple Choice Quiz