Labor Standards

1.a. An employer may set age limitations in employment if it would constitute a bona fide occupational
qualification for a legitimate purpose taking into consideration the specific nature of business of the
employer, and to prohibit hiring of children below 15 y/o.

b. Permissible contracting/subcontracting arrangements: When contractor has a separate and

independent business, there is enough capitalization or investment in tools equipment, wart premises,
contractor exercises control over the method of accomplishing the work, and the service agreement
between contractor and principal stipulates the observance of proper labor standards.

c. Capitalization: Domestic-1million; Overseas-5million.

Citizenship requirement: Sole proprietor, Filipino citizen. Partnership/Corporations: at least 75% Filipino-
owner

Directors/owner was not previously disqualified/ had a license cancelled. For overseas agency:
directors/owner are not a director/owner of a travel agency. Must secure license and authority from
DOLE.

2. The award of attorney’s fees equivalent to the total monetary award is void. According to the Labor
Code, the attorney’s fees to be awarded as part of the damages shall not exceed 10% of the monetary
award to the employee.

3. Policy is void. Under the law, all kinds of employees, whether rank-and-file, on a piece-rate basis,
extras, casuals, and seasonal employees are entitled to a 13 th month pay benefit.

4. The Regional Tripartite Wages and Productivity Board’s Wage Order granting an across-the-board
increase of P21.00 to all employees/workers in the private sector is void. According to jurisprudence, the
RTWPB in setting the minimum wage for the region may use “floor wage” or “salary ceiling” and shall
affect only those receiving below the prescribed minimum wage and not all employees. The RTWPB
exceeded its authority when it issued a wage order mandating a salary increase for all employees since
its authority is only limited to setting the minimum wage.

5. Under section 10 of the Migrant Workers Act, an OFW who was illegally terminated may file a case
with the NLRC. A properly filed the case with the NLRC and not with POEA since POEA only has
jurisdiction over administrative cases and pre-employment disputes. Furthermore, a is entitled to all his
wages for the unexpired portion of his employment contract, the phrase “whichever is less” (referring to
the 3 month salary computation vis-à-vis the unexpired portion) being declared unconstitutional in the
Serrano and Sameen cases.

6. Y company shall be held jointly and severally liable with X security services for wage differentials and
premium pay since they have been proven to be valid claims, meaning that the ID security guards have
actually rendered services during their employment. The guards are entitled to such. Y company, as an
indirect employer under the Labor Code, is jointly and severally liable with the contractor for valid
claims for non-payment or underpayment of wages.

The cross claim of Y company against X Security Agency is in the wrong venue as there is no employee-
employer relation between them to place it under the NLRC jurisdiction. It should have been filed with
the RTC being a civil dispute. Furthermore, obligation of X security agency will only arise if there is actual
payment by Y company already.

7. The policy of X company prohibiting its employees from getting married, otherwise they are
terminated is VOID. In the absence of a legitimate business interest to be protected by the prohibition
(like in Duncan Association Galxo-Wellcome) and a reasonable limitation on the application of the policy
(as in for marriage to members/employees of competitor companies in highly competitive industries), a
policy prohibiting employees from marrying while they are employed is void. A same policy was declared
void in Star Paper v. Simbol, since a strict scrutiny of the policy should be applied, there is no legitimate
business purpose protected by the policy. Even when A earlier agreed that her employment will
automatically terminate upon getting married, the waiver is void for being contrary to law, morals,
public policy, for being discriminatory against A.

8. B rightfully authorized C an authority to conduct a compliance visit since one of the grounds to
conduct one is if there is a SEnA referral or an anonymous complaint. But the setting of the case for
mandatory conference was premature. After the visit, C should have issued a NR (notice of report)
noting the specific violations of X Agency and Y company and asked the representatives of employer and
employer to sign the same. Y company and X agency should have been given 10 days to correct the
violations and scheduled a verification visit after the receipt of the compliance order only then would
the case may be set for mandatory conference if X agency should still refuse to comply with the
deficiencies stated.

Furthermore, if the workplace has been deemed to be hazardous, posing a grave and imminent danger
to the health and safety of the employees. The LLCO may recommend the temporary closure of the
establishment or a temporary work stoppage and ask Y company to present evidence to lift the order.

For the finding that X agency is a labor only contractor, C may declare that all employees of X agency are
regular employees of Y company.

9. Under Article 128 of the Labor Code, for appeals of the monetary awards, company may elevate it to
the secretary of labor within the reglementary period. The appeal of Y company was not perfected as
the memorandum of appeal should not have been interposed with the secretary of labor, but filed with
the Regional Office/Director who issued the compliance order. A motion to reduce bond is likewise
prohibited under Do-131B for cases within the Article 128 (Visitorial and Enforcemnet Power of the
Secretary of Labor).

10. A may be considered B’s employee even when the agreement between them is not in writing. In the
definition of wages, it is remuneration for work done/to be done/ service performed/to be performed
under a written/ oral agreement. Under the labor code, the contract of employment need not be
written. A is not just a kasambahay/ domestic worker having been engaged/tasked to drive B’s newly-
bought innova enlisted with uber and grab. Apart from being a kasambahay, A is tasked to do work
outside the definition of domestic work for B but also a regular employee of his UBer/Grabe business. A
is entitled to separate compensation as a kasamabahay (providing cleaning services to B’s household)
and a regular employee of the Grab/Uber business as stipulated in the Kasambahay Law.
11.The transfer call still be considered a promotion. While generally, transfers may be made in the
exercise of management prerogative, according to jurisprudence, if it connotes a promotion/demotion,
it must be consented by the eomployee first. Otherwise, it would be in excess of its management
prerogative.

Furthermore, according to jurisprudence, a promotion need not be accompanied by a corresponding

salary increase, it may mean the giving of more responsibilities, or just a paper title but no obligation on
the part of company to increase salary unless it was previously stipulated or agreed upon already.

12. If the prohibition is limited as to the time and place of application (during work hours and only on
the production area), and would be for the pursuit of a legitimate business interest (for security, safety,
and work efficiency), such policy may be deemed to be made in the valid exercise of the company's
management prerogative.

But if the total prohibition is excessive (including breaks/meal times), it is void.

13. The non possession of DOLECertificate of Registration creates a prima facie presumption that Y
agency is engaged in labor only contractingbutjurisprudence dictate that such presumption may still be
rebutted by evidence to show that Y agency is a legitimate labor contractor. Under Article 106 of the
Labor Code and relevant jurisprudence, there is labor only contracting if the contractor has no sufficient
capital or investment in tools and the employees perform functions related to the principal business of
the employer or contractor has no control over the performance of the job contracted out. The test in
Vinoya warrants the examination of all the circumstances surrounding the relationship. In this case, Y
agency must show that it has control over its employees to overcome the prima facie presumption since
a mere substancial capital, or investment in tools is not enough.

14. Its a general rule, in the absence of grave abuse of discretion , according to jurisprudence, the
findings/decision of a Regional Director and affirmed by the Secretary of Labor and Employment is
already res judicata to the NLRC. But if there is a needto examine evidentiary matters, or if there are
matters which cannot be ascertained by a plain inspection ( in the exercise of the visitorial and
enforcement power of Secretary of Labor), the finding of the Regional Director does not bind the NLRC,
except when the same has already been affirmed by the Supreme Court in a separate case.

15. If the shift in the counting method of the leaves is prejudicial to the employees, it cannot be upheld,
but if it is for the benefit of the employees, the same may be valid. That it has been a long-standing
policy and therefore becomes a matter of right of employees cannot be upheld since that rule only
pertains to bonuses over and above the statutory minimum given by the employees without condition.
There can be no diminuition if benefits since the vacation and sick leaves are not monetary
benefits/bonus given to employees. But assuming that it is within the ambit of non-diminution, the
policy of changing from calendar to working days benefits the employees since their rest days are
effectively excluded, in effect giving them more leaves, analogous to the doctrine of the Coca-Cola
Bottlers Case.

16. During C's delivery to D,A cannot avail of his paternity leave benefit of 7days since C is not the
legitimate spouse of A.

C, being left solely to provide parental care and support to D, may avail of the parental leave of 7days,
provided she has rendered service for at least 1year, under the Solo Parents Act. During the delivery, C
could also avail of maternity leave benefits under the SSS Law (60 days for normal delivery and 78 days
for Caesarian) provided she has contributed at least 3 monthly contributions in the last 12mos.

A, being left alone with her 2children may also avail of the parental leave being a solo parent.

Labor

I.

A. Sheltered Employment applies to persons with disability when their regular employment in industries
are not afforded to them.

B. Direct hires are those OFWs hired without he assistance of the POEA and this is prohibited by law
except for those hired by diplomatic consuls and international organizations. Name hires are those
OFWs or migrant workers hired through the assistance and participation of the POEA.

C. The employees are entitled to holiday pay. The use of the divisor 262 is wrong because the employees
work from Monday to Saturday; therefore, they work for 312 days per year. The divisor 262 which
supposedly covers the number of days worked in a year falls short of the number of days actually
worked by the employees.

II.

A. Yes, jurisprudence provides that allowances, sss, Medicare and pag ibig premiums. May be charged
against the 70% incremental tuition for increase authorized under existing law.

B. Yes, according to jurisprudence, faculty members paid by lecture hour are entitled to be paid for
unworked special public holiday such as cancellation of classes due to storms for example because there
is already an expectancy in earning such amounts and the would be unduly ddeprived thereof without
their own fault or doing if these will not be granted to them.

C. Yes, Y company may be exempted from payment if the 14th month pay under P.D 851 because law
and jurisprudence provides that those who are already paying its employees 13th month pay or it's
equivalent are exempted from such mandate by the law. However, if such bonuses were not given for
any year due to an unfavorable performance of the company for that year as stated in the CBA the
company shall then be required to give its employees the 13th month pay required by the P.D. 851. Its
exemptionshall not apply so long as it actually gives out such.mid year and Christmas bonuses.

III.

A. No, working scholars are not employees of the school. There is no employer-employee relationship
between a student who renders service to a school in exchange for free education at such institution.

B. No, the principal may not be held liable with the independent contractor for back wages and
separation pay of the latter's employees according to jurisprudence because such claims exist by virtue
of a relationship which does not exist between a principal and its contracted employees from a
legitimate contractor.

C. According to the Kasambahay Law, A as the "Yaya"of B is entitled to:

1. Rest day of 24 consecutive hours in a week

2. 8 hoursconsecutive rest period per day

3. Service incentive leave 5days with full pay

4. A's employer shall make the necessary sss, philhealth, pag big contributions.

5. 3 full meals per day.

IV.

A.Assets minus Liabilities multiplied by K

K = 20 if duration of contract is > 2 years

15 if contract is bet 1-2years

10 if contract is less than 1year

B. Knowledge of an agent may be imputed as knowledge of the principal but not the other way around.
In relation to recruitment if workers, knowledge by the principal of the renewal of the employee's
contract cannot be imputed as knowledge of the agent or recruitment agency , should the employee not
inform the agent that he/she will renew her contract of employment with the principal.

C. Yes, the Labor Arbiter's ruling is valid. Not having a DOLE Certificate of Registration only creates a
presumption that the contractor engages in labor only contracting. This means that the burden if proof
is shifted to the contractor to prove through the other requirements in law that it does not engage in
labor only contracting. If it successfully proves compliance with the other requirements, it will be
adjudged as engaging in legitimate job contracting.

V.

A. Yes, pregnant women may be allowed by their employees to work at night provided a medical
certification showing such fitness to engage in night work is presented by the pregnant woman.

B. Yes, the employer may be held liable for damages for acts of sexual harassment committed by one of
its employees. If it shown that the employer was informed of such sexual harassment and it did not take
steps to address the incident.

C. Yes, the denial is valid. It is provided by R.A. 8187 or the law in paternity leave that to be a le to avail
of such benefit, the husband must be married to his wife, that she is his legitimate wife with whom he is
cohabiting. In this case, A is only the common law wife of B; therefore, B's application for paternity leave
should be denied.

VI.

A. Yes, part time employees are entitled holiday pay and 13th month pay. Both holiday and 13th month
pay does not make a distinction that the employees entitled to such benefits are only regular
employees.
B. The battered woman should show to her employer a barangay certification or a court order from the
clerk of courts for her to be entitled to the Battered Woman Laws of 10days.

C. Sunday - rest day

November 1 - special holiday

According to the law, A wouldbe entitled to his regular wage plus 50% thereof for working on that day.

VII.

A. Business Process Outsourcing (BPO's)

Knowledge Process Outsourcing (KPO's)

Construction Contractors

Canteens

B. Extraordinary Concept

This is the one referred to in Art. III wherein it is unlawful to demand or accept attorney's fee valued at
more than 10% of the total amount of claims received by the employee or the attorney's fee awarded
may not be greater than 10% of the total wages recovered by the employee in cases of unlawful
withholding of wages by the employer.

Ordinary concept

This applies to all otheraward of attorney's fees in court cases.

C. Yes, Z company can be compelled to continue employing the services of X. Ordinary sale of assets
does not give rise to the obligation by the buying company to assume the liabilities of the selling
company. However, if there is a merger or consolidation or a sale of all or substantially all of the assets
of a corporation, there arises an obligation of assuming the liabilities of such corporation. Therefore, in
this case, since Z company bought all of Y company's assets, it also assumedall of its liabilities, Z may
therefore be compelled to continue employing the services of X.

VIII.

A. If the child is earning more than P200,000 annually, the parent or legal guardian is under the
obligation to set aside at least 30% thereof in a trust fund. When the child reaches the age of majority,
he shall have total control over the trust fund.

B. No, the law provides that children below 18 but above may be employed for any kind of work
provided it is not of a hazardous nature which places the life of the child in danger. The employer will
not incur criminal liability if he allows a child above 15 but below 18 to work without a working permit
from the Department of Labor.

C. Yes, X should be convicted. The law on Anti-sexual harassment is committed by an employer,

employee, manager, teacher, coach or any person having moral ascendancy over the victim if he
demands or requests any sexual favor from the victim regardless of whether a demand or request was
granted or not.
In this case, even if Y agreed to the demand of her professor, the latter can still be liable for sexual
harassment, such consent of Y, the student, being disregarded by the law.

IX

A. Legitimate Job Contracting

- joint and several liability but only with respect to wages unpaid by the contractor to such employees.

Labor only contracting

- joint and several liability with all the claims of the contractual employees.

B. The person or entity investigated contests such investigation.

Offers documentary proof to support his contention

Such documents could not have been examined during the investigation.

C. There is no violation of the non-diminution of benefit principle.

The Christmas party, the loyalty and the good performance awards, the taking away of which, in order
to constitue non-diminution should have been an express policy of A company or has ripened into
practice and its Grant was consistent and deliberate. In this case, even if the grant has attained
regularity over the past 5years, it cannot however, be considered as having been given unconditionally.
In this case, the very nature of a loyalty and a good performance award is premised on a condition that
the employees be loyal and continue to work hard for the company. Such awards are only but to spur
the industry of the employees to greater heights.

Such being the case, A company validly exercised its management prerogative of cost cutting by deciding
to not hold the traditional Christmas party.

Also, Art. 100 may be used as a legal basis for disallowing diminution of benefits given often the
promulgationof the Labor Code as in a number of Supreme Court cases.

A. No, the Regional Director may only exercise its powers under Art. 129 of the Labor Code upon a
complaint filed.

B. The Philippine Overseas Employment Agency has jurisdiction to enforce the mandatory insurance
coverage of agency based workers.

C. Retainer agreement

This agreement is executed between X company and A as its retained company physician.

Terms and Conditions:

1. A shall be hiredby X company as an independent contractor providing the services of a physician.

2. As an independent contractor, shall provide and use own medical equipment necessary to his duties
as physician.
3. He shall be required to render for a total of 15 hours per week office hours at his discretion as to how
many hours of service per day he will render.

4. He shall do the general services of a physician

Yearly check ups of the employees

Administering medicine to employees whoreport to work with illness

Maintaining the medical records of the employees.

5. Before engaging his services, he shall be required to register with the Department of Labor as a
contractor.

6. His services shall be contracted for a period of one year, effective January 1, 2014 and ending on Dec.
31, 2014.

I will decide the case in favor of X company. Redundancy is one of the recognized authorized causes for
termination of employment. This may be resorted to by the employer if the work performed by the
employee is more than what is necessarily needed by the employer in its business. This must be
undertaken in good faith and no proof of substantial losses is needed.

Therefore, if X company proves that the task performed by A is more than what is reasonably needed,
A's employment may be terminated on the ground of redundancy.

The fact that X company outsourced the maintenance of its equipment does not make X company in bad
faith. It is valid exercise of management prerogative to resort to outsourcing and this does
notthedismissal of Awith bad faith.

Moreover, there are no facts that indicate that the waiver and quiteluim was executed under the causes
wherein the consent of A was vitinted. Therefore,. The waiver and quiteluim is valid and binding on A.

II.

I will decide the cause in favor of A. A project employee is specifically hired to undertake a project. His
employment is coterminous with the completion of the project. In other words, the employment
relationship is terminated automatically if the project is completed.

The fact that A was continuously hired for several years makes A's employment regular. There are no
facts indication that A was hired for the completion of the project l. Thereby, A is employee.

A was continuously hired to paint the building of the campus which is a continuing task. Clearly, the
employment contract was meant to circumvent A's security for tenure. A is thus a regular employee who
may only be terminated through a just or authorized cause. Mere poor performance is insufficient to
warrant the supreme penalty of dismissal.

III.
A. The cessation of operation was valid. Closure or cessation of business is one of the recognized
authorized causes to dismiss employees. Closure of business why or may not be due to substantial
losses, as long as it is done in good faith and not intended to prejudice the rights of the employees.

B. There was no compliance with the procedural due process requirement. For termination due to
closure of operations, the employer is required to send 1 month notice to the DOLE and to the
employees prior to the cessation.

In this case notice was sent only to the employees and not to DOLE.

Additionally, the employees are entitled to separation pay of 1 month salary or 1/2 month salary for
every year of service, wherever is higher.

IV.

The dismissal of A was valid. For willful insubordination to be a just cause to dismiss an employee, the
refusal to obey a lawful order of the employer must be willful and without just cause. In this case, the
refusal was with just cause because the reason A refused to transfer was because his family was already
settled in Davao and he already had established a good life in Davao. Therefore, refusal to obey the
order to transfer is not insubordination in the sense as to warrant the supreme penalty of dismissal.

V.

The reversal was valid. It is a requirement that for all overseas employment contracts to be valid, they
should be approved by the POEA. In this case, the POEA approved the contract of employment of A as a
network technician. However, Y company asked A to sign another employment contract for a different
position. This is a clear circumvention of the requirement that all overseas employment contracts should
be approved by the POEA. Therefore, the reversal was valid.

VI

The decision of the NLRC was valid.

The elements of an employer-employee relationship are:

1. Power of selection and supervision1

2. Power to pay wages

3. Power to dismiss

4. Power of control

In the present case, Y company exercised all these powers over the salesmen. Therefore, the
distributorship agreement was intended to circumvent security of tenure.

X company had the power to dismiss the employees because clause X company the power to impose
disciplinary actions over the salesman.

The power of control is the most important element, wherein the employer has the power to control
the means and method of the employee to perform his assigned task.
In the present case, X company had the power of control because it was the one who provided the
trainings to the sales personnel. Moreover, this is a case of Labor only contracting because in effect, Y
company merely supplied Y company with workers to perform tasks assigned by X company. Being labor
only contracting, Y company is regarded as an agent of X company, that is the direct employer of the
salesmen.

Morever, this is a case of labor-only contracting because in effect, Y company merely supplied Y
Company with workers to perform tasks assigned by X Company. Being Labor-only contracting Y
company is regarded as an agent of X Company that is the sirect employer of the salesmen.

11. Yes, Under the Labor Code, the compulsory retirement age is 65 years old. Upon reaching the
compulsory retirement age, employers are entitled to their retirement benefits. It is immaterial that A
worked for less than 5 years, because this requirement applies only to employees who choose to
voluntarily retire at the age of 60.

The requirement that A should have worked for at least 5years is not controlling, because it grants
benefits less than that granted by the Labor Code.

Therefore, A is entitled to retirement benefits despite him being a part-time lecturer since the law
makes a distinction between full time and part-time lecturers

12. Yes, I will grant the motion for reconsideration. IT is a rule that Regional Trial Courts have the
jurisdiction to try the criminal aspect of illegal recruitment cases. Morover, the complaint may be at the
place of residence of the injured party. In this case since the complaint was filed in a Regional Trial Court
of Pasig had jurisdiction over the case.

13. I will not give due course to the appeal. The fact that A was acquitted of the criminal charge does not
absolve X Company of its liability for non-remittance. Under the SSS Law, employers are required to
remit to the SSS the contributions. The fact that A was not performing his duties as President of X
Company is does not exempt X Company from remitting the SSS Contributions. TTherefore, I will not
give due course to the appeal.

I. A

Two types of illegal recruiters:

First, those who conduct recruitment and placement activities without the required license granted
by DOLE.

Second, those with a lciense to perform recruitmentand placement but perform any of the
prohibited acts under Section 6 of RA 8042, such as but not limited to overcharging, giving false
notices, misrepresentation in an application for license, inducement to quit, and others.
1B

“Simple” illegal recruitment is committed by one who performs recruitment and placement activities
without a license, or if with a license, performs one or more of the prohibited acts under Sec. 6 of
RA 8042

Illegal Recruitment as economic sabotage (qualified) is committed in 2 ways:

First, if committed by a syndicate by 3 or persons and/or

Second, in Large Scale (against 3 or more persons)

Simple Ilegal Recruitment prescribes in 5 years while economic sabotage in 20 years. Committed by
a syndicate or in large scale are two distinct crimes.

2. A. conditions for special leave:

First, that the employee has served for at last 6 months in the past 12 months before the surgery.

Second, that the employee is a woman who has undergone a gynaecological surgery, or a surgery on
a woman reproductive organ or system.

Third, proper notification is given the employer in a reasonable time.

Fourth, that such surgery is proved through a certification by a competent physician.

Fifth, that the employee is given paid leaves up to 2 months or 60 days. The basis of the pay her
gross mothly salary.

2B. Maternity Leave

First, that the woman need not be married.

Second, that the woman employee has served for at least 3 months in the past 12 months,
continuous or broken from her date of delivery or miscarriage or abortion.

Third, that notification is given to the employer within a seasonable time.

Fourth, that the woman is an SSS member at the time of birth or miscarriage or abortion.

Fifth, that the woman is given paid leaves based on her average daily credit for 60 days (natural birth
or miscarriage or abortion) or 78 days (caesarean)

Sixth, that the woman employee gave birth, suffered a miscarriage, or had an abortion

Seventh, this benefit is given only to the first 4 births.

3.A. First, entitlement to paternity leave. Here, the male employee cohabiting with his legal spouse
must be lawfully married to avail of his calendar day leave.

Second, benefits accruing the dependent spouse under the SIF (State Insurance Fund). The spouses
must be lawfully married as well.
 3B. Under the current law, the spouse is entitled beneficiary.

Previously, the spouse, to be entitled to the benefits under the SSS law, has to be legally used to the
SSS member-retiree at the time of his retirement. However, the qualification at the time of
retirement has been declared unconstitutional. It was struck down as such because it was arbitrary.
It created a presumption that those who marry pensioner only does so in order to get the monthly
benefits of the latter. This presumption, according to the Supreme Court, is arbitrary.

Today, those who marry a prisoner even after retirement may be entitled as a primary beneficiary.
The SSS has released certain guidelines in order that abuse may be avoided, such as the two have
been cohabiting even before retirement, or that the two already have a child.

4. A. No, it is not, AA 100 was created as a transitory provision, such that employers granting specific
benefits already at the time of the passing of the Labor Code will not retract the so that they can comply
with the benefits granted by the Labor Code.

The intent of the Labor Code was to grant additional benefits to those already enjoyed by employers
after the passing of the Labor Code. The law must also protect the employers. If this were not the rule
the law will unjustly burden t employers who are suffering from business losses and shall be forced to
grant the benefits they have been providing.

4B. Under the thirteenth month pay law, employers granting the “equivalent” of a 13 th month pay are no
longer required to grant additional pay. This, however, is true only if the equivalent is 1/12 of the basic
salary of the the employee for the year. If not, the remainder must be paid.

A “year-end bonus”, if equal to such amount and is granted without condition, is already an equivalent/
If the grants is subject to a condition, then it cannot be considered an equivalent of 13 th month pay.

5. A. It depends.

Those paid-by-result are employees paid based on their output for a given time, without consideration
as to the time they spend in work. WL can say that a paid-by-result worker is an employee if the
elements of an employee-employer relationship are present. Most important of the elements in this
case is the element of control not only on the results, but also the means and methods. Piece-rates
workers, for example, may be considered as employers under the Labor Union case. Though they are
paid by output, an employer may still supervise them, suchas for quality. Therefore, these supervised
piece-rate workers are employees.

Those however, who are not under any supervision and are strictly output-based paid, are not
considered employees.

5B. Yes, they are, but subject to certain conditions.

If an employer undertakes to have daily quotas of its paid-by results employees validated by DOLE
through time and motion studies, an employer can lawfully pay below the minimum wage. If an
employee does not meet his required quota. If an employee does not meet his required quota. It only
goes to show that the employee is a slowpoke. However, those without validated quotas cannot pay
below the minimum wage. Else, they can easily abuse their employees.

C. According to the Labor Union case also clarified this. All employees not over 60 years old are deemed
SSS members from Day 1 of their sevice.

No, they are not entitled. Those paid-by-result are paid strictly by output.

D. Yes, they are. The SSS Law, however, makes qualifications

15. B.

A. The most comment test is the four-fold –test. Under thus test,, the following elements must be
present: 1. The employer selects and hires a person, (2). The employer can fire or dismiss the person,
(3). The employer pays the person remuneration for services rendered, and (4) The employer has
control over the persons output or results and his means and methods in work. The last element
(element of control), is the most important of the four. The four-fold-test, however, is not the only test.
The two tiered test has also been used by the Supreme Court. This test has two elements (1) the
element of control over a persons output and his means and methods and economic dependence.

16. A.

Labor only contracting exists when an independentemployer, running a bona fide business, undertakes
to perform a specific job for another employer ( the principal). The following, however, must be present:

First, the contractor is not controlled by th principal in the means and methods he undertaked to
perform a job. Only the desire results controlles.

Second, the contractor has substantial capital. (3 million paid-up capital or P3 milliom as capital)

Third, the contractor controls its employees, and not the principal.

If there are not present, the so-called contractor is really a labor-only contractor. An labor-only
contractor or LOC, therefore is merely a supplier of manpower to the principal. LOC is prohibited
because it is a wayby which the Labor Code granted benefits may be circumvented.