ESPINOZA, Patricia Rachelle C.

2019-0571

LABOR RELATIONS
FINAL EXAMINATION
Sunday 4:00pm-7:00pm
Atty. Jose S. Diloy, Jr.

I
1. The appeal should be filed before the NLRC 10 calendar days from the receipt of the
decision of the Labor Arbiter This is in pursuant to section 1(a) of the NLRC Interim
Rules on Appeals Under R. A. 6715, Amending the Labor Code, which states that:

SECTION 1. (A) Appeals and Period. - Decisions, awards or orders of the Labor

Arbiter, Regional Director or any duly authorized Hearing Officer and the POEA
Administrator shall be final and executory unless appealed to the Commission by any
or both parties within the 10 calendar days from receipt of such decisions, awards or
orders of the Labor Arbiter or of the Administrator; and in case of the Regional
Director or any duly authorized Hearing Officer, five (5) calendar days from receipt
of such decisions, awards or orders.

2. Yes, as a rule, decisions involving monetary awards require a posting of a bond, in

form of cash or of surety bond issued by a reputable bonding company duly
accredited by the commission in an amount equivalent to the monetary award in the
judgment appealed from. This is in accordance with Section 7 of the NLRC Interim
Rules on Appeals Under R. A. 6715, Amending the Labor Code

3. No. Section 7 of the NLRC Interim Rules on Appeals Under R. A. 6715, Amending
the Labor Code further states that for purposes of the bond required under Article 223
of the Labor Code, as amended, the monetary award computed as of the date of
promulgation of the decision appealed from shall be the basis of the bond. For this
purpose, moral and exemplary damages shall not be included in fixing the amount of
the bond. Therefore, award of damages and attorney’s fees are not included.

4. No. Under article 223, in case of a judgment involving a monetary award, an appeal
by the employer may be perfected only upon the posting of a cash or surety bond
issued by a reputable bonding company duly accredited by the Commission in the
amount equivalent to the monetary award in the judgment appealed from. There was
no bond posted by ABC Corporation in this situation.

5. The filing of a motion to reduce appeal bond shall be entertained by the NLRC
subject to the following conditions:
a. there is meritorious ground; and
b. a bond in reasonable amount is posted;

For purposes of compliance with condition (b), a motion shall be accompanied by the
posting of a provisional cash or surety bond equivalent to ten percent (10%) of the
monetary award subject of the appeal, exclusive of damages and attorney’s fees.

Page | 1
 ESPINOZA, Patricia Rachelle C.
2019-0571

Compliance with the foregoing conditions shall suffice to suspend the running of the
10-day reglementary period to perfect an appeal from the Labor Arbiter’s decision to
the NLRC;

6. I would file a Motion to Dismiss with prayer for issuance of writ of execution. Since
there was no bond posted, the NLRC may immediately dismiss the appeal in
accordance with the labor code. Since the appeal cannot be perfected, then the
decision of the Labor Arbiter becomes final and executory, thus the need of filing of
the writ of execution.

II
1. Reasonable causal connection rule connotes that in labor cases, there must be an
existing employer-employee relationship in order for the case to prosper.
2. Equity of the incumbent rule describes that a federation or a national union which
possess all the qualifications and none of the grounds of disqualification shall
continue to exist and maintain its affiliation.
3. Conflict of Interest Rule; is a situation wherein a person is in a position to derive
personal benefit from actions or decisions made in their official capacity. In labor
cases, Conflict of Interest is applied on the case of Duncan Association of Detailman-
PTGWO v. Glaxo Welcome Philippines, Inc wherein it ruled that the prohibition of
against personal or marital relationships with employees of competitor-companies
upon its employees in management discretion.
4. Promissorial doctrine; may arise from the making of a promise, even though without
consideration, if it was intended that the promise should be relied upon. If in fact it
was relied on, a refusal to enforce it would virtually sanction the perpetration of fraud
or would result in other injustice. It presupposes the existence of a promise on the part
of one against whom estoppel is claimed. The promise must be plain and
unambiguous and sufficiently specific so that the court can understand the obligation
assumed and enforce the promise according to its terms. In order to make out a claim
of promissory estoppel, a party bears the burden of establishing the following
elements: (1) a promise was reasonably expected to induce action or forbearance; (2)
such promise did, in fact, induce such action or forbearance; and (3) the party suffered
detriment as a result Duty to bargain collectively.

III
Under the contract bar rule. rule, a petition for certification election may not be filed when a
CBA between the employer and a duly recognized or certified bargaining agent has been
registered with the Bureau of Labor Relations (BLR) in accordance with the Labor Code. The
purpose of this rule is ensure stability in the relationship of the workers and the employer by
preventing frequent modifications of any CBA entered into by them in good faith and for the
stipulated original period.

The contract bar rule does not apply in the following cases:

Page | 2
 ESPINOZA, Patricia Rachelle C.
2019-0571

1. Where there is an automatic renewal provision in the CBA but prior to the date when such
automatic renewal became effective, the employer seasonably filed a manifestation with the
Bureau of Labor Relations of its intention to terminate the said agreement if and when it is
established that the bargaining agent does not represent anymore the majority of the workers
in the bargaining unit.

2. Where the CBA, despite its due registration, is found in appropriate proceedings that (a) it
contains provisions lower than the standards fixed by law; or (b) the documents supporting its
registration are falsified, fraudulent or tainted with misrepresentation.

3. Where the CBA does not foster industrial stability, such as contracts where the identity of
the representative is in doubt since the employer extended direct recognition to the union and
conducted a CBA therewith less than one (1) year from the time a certification election was
conducted where the “no union” vote won. This situation obtains in a case where the
company entered into a CBA with the union when its status as exclusive bargaining agent of
the employees has not been established yet.

4. Where the CBA was registered before or during the last sixty (60) days of a subsisting
agreement or during the pendency of a representation case. It is well-settled that the 60-day
freedom period based on the original CBA should not be affected by any amendment,
extension or renewal of the CBA for purposes of certification election.

IV
1. Agency fees are those Collected by the union from non-members belonging to the
same bargaining unit who receive the benefits under the CBA , union fees on the other
hand are collected from the union members who receives the benefits of the union
itself. Agency fees can be assessed even without the written authorization of the
employee concerned, while in union fees, there must be an individual written
authorization by individual members.

2. Inter-union dispute refers to any conflict between and among legitimate labor unions
involving representation questions for purposes of collective bargaining or to any
other conflict or dispute between legitimate labor unions., while Intra-union dispute
refers to any conflict between and among union members, including grievances
arising from any violation of the rights and conditions of membership, violation of or
disagreement over any provision of the union’s constitution and by-laws, or disputes
arising from chartering or affiliation of union. Sec. 1 (dd) of DO No. 40-03 Amending
the Implementing Rules of Book V of the Labor Code of the Philippines

3. Labor Organization is defined as any union or association of employees in the private

sector which exists in whole or in part for the purpose of collective bargaining, mutual
aid, interest, cooperation, protection, or other lawful purposes. Workers’ Association

Page | 3
 ESPINOZA, Patricia Rachelle C.
2019-0571

is an association of workers organized for the mutual aid and protection of its
members or for any legitimate purpose other than collective bargaining.

V
1. According to Article 248 of the labor code, It shall be unlawful for an employer to
commit any of the following unfair labor practices:
a. To interfere with, restrain or coerce employees in the exercise of their right to
self-organization;
b. To require as a condition of employment that a person or an employee shall
not join a labor organization or shall withdraw from one to which he belongs;
c. To contract out services or functions being performed by union members
when such will interfere with, restrain or coerce employees in the exercise of
their right to self-organization;
d. To initiate, dominate, assist or otherwise interfere with the formation or
administration of any labor organization, including the giving of financial or
other support to it or its organizers or supporters;
2. None. To implement the reinstatement aspect of a Labor Arbiter’s decision, there are
only two (2) options available to the employer, to wit:
a.) Actual reinstatement. - The employee should be reinstated to his position which he
occupies prior to his illegal dismissal under the same terms and conditions prevailing
prior to his dismissal or separation or, if no longer available, to a substantially-
equivalent position; or
b.) Payroll reinstatement. – The employee should be reinstated in the payroll of the
company without requiring him to report back to his work.

According to the labor code, the perfection of an appeal shall stay the execution of the
decision of the Labor Arbiter except execution for reinstatement pending appeal.

VI
A.) Contractualization is the outsourcing or contracting-out of workers to perform functions
and duties or render services needed by the company. It is not an unfair labor practice nor
violative of the security of tenure provisions because it is an exercise of business judgment or
management prerogative. Absent any proof that management acted in a malicious or arbitrary
manner, the Court will not interfere with the exercise of judgment by an employer. It
becomes unfair labor practice if it will render the union inutile in protecting the rights of its
members as there will be more contractual employees than regular employees; and that the
redundancy program will result in the displacement of regular employees which is a clear
case of union busting.

B.) According to article 287 of the labor code, in the absence of a retirement plan or
agreement providing for retirement benefits of employees in the establishment, an employee
upon reaching the age of sixty (60) years or more, but not beyond sixty-five (65) years which

Page | 4
 ESPINOZA, Patricia Rachelle C.
2019-0571

is hereby declared the compulsory retirement age, who has served at least five (5) years in the
said establishment, may retire and shall be entitled to retirement pay equivalent to at least
one-half (1/2) month salary for every year of service, a fraction of at least six (6) months
being considered as one whole year.

Unless the parties provide for broader inclusions, the term ‘one-half (1/2) month salary’ shall
mean fifteen (15) days plus one-twelfth (1/12) of the 13th month pay and the cash equivalent
of not more than five (5) days of service incentive leaves.

VII
A) YES. Although the provision speaks of exclusive and original jurisdiction of LAs, the
cases enumerated may instead be submitted to a voluntary arbitrator by agreement of the
parties under Art. 262 of the LC. The law prefers voluntary over compulsory arbitration.

B) 1. NO. upon the appointment of the SEC of a rehabilitation receiver, all actions for
claims before any court, tribunal or board against the corporation shall ipso jure be
suspended.

2. NO because all actions under rehabilitation are suspended, XYZ Corporation for
indirect contempt should it refuse to satisfy the aforesaid decision.

3. YES, because according to the labor code, the court has the power motu proprio, by
court’s own action, to execute the decision.

4. YES, because the power to punish for contempt is inherent in all courts and is
essential to the preservation of order in judicial proceedings and to the enforcement of
judgments, orders, and mandates of the court, and consequently, to the due
administration of justice.

5. The NLRC-NCR detention centre is located at Banawe, Quezon City

VIII
A. 1.YES. A constructive dismissal occurs when the law deems that there is effectively a
termination of employment or "a quitting because continued employment is rendered
impossible, unreasonable or unlikely, such as in an offer involving a demotion in rank
and a diminution in pay." In this case, X was not given a chance to be heard, and was
simply not given a teaching load thus there is an illegal and/or constructive dismissal.

2. Yes. Under article 279, an illegally dismissed employee is entitled to the following
reliefs:
a.) Reinstatement without loss of seniority rights and other privileges;
b.) Full backwages, inclusive of regular allowances; and
c.) Other benefits or their monetary equivalent.

Page | 5
 ESPINOZA, Patricia Rachelle C.
2019-0571

B. 1. NO. The strike staged by the union is illegal. Their notice of strike does not fall
under union busting. Union Busting exists when:
a.) The union officers are being dismissed
b.) Those officers are the ones duly elected in accordance with the union
constitution and bylaws; and
c.) The existence of the union is threatened.

The existence of the union is not threatened in this case. Therefore, the 15-day
cooling period from filing of the notice of strike is not met in this case of unfair labor
practice.

2. No, a “no strike, no lockout” clause is a valid stipulation but may be invoked only
by employer when the strike is economic in nature or one which is conducted to force
wage or other concessions from the employer that are not mandated to be granted by
the law. It would be inapplicable to prevent a strike which is grounded on unfair labor
practice

C. 1. YES. Closed shop agreements are valid. Under the bargaining union can demand
from the employer the dismissal of an employee who commits a breach of union
security arrangement, such as failure to join the union or to maintain his membership
in good standing therein. The same union can also demand the dismissal of a member
who commits an act of disloyalty against it, such as when the member organizes a
rival union.

2. Members of religious sects cannot be compelled or coerced to join labor unions even
when said unions have closed shop agreements with the employers. Free exercise of
religious belief is superior to contract rights. In case of conflict, the latter must yield
to the former. It shall not be valid or legal because an employer has an obligation to
provide reasonable accommodations for the sincerely held religious beliefs of its
employees - unless, the accommodation would impose an undue hardship on the
employer. An employee may, as he pleases, join or refrain from joining an
association. It is, therefore, the employee who should decide for himself whether he
should join or not an association; and should he choose to join, he himself makes up
his mind as to which association he would join; and even after he has joined, he still
retains the liberty and the power to leave and cancel his membership with said
organization at any time
3. ABC Corporation shall answer to the payment of back wages as per computation of
the Labor Arbiter of the back wages and other fees. An employee who is unjustly
dismissed from work shall be entitled to reinstatement without loss of seniority rights
and other privileges and to his full back wages, inclusive of allowances, and to his
other benefits or their monetary equivalent computed from the time his compensation
was withheld from him up to the time of his actual reinstatement.

Page | 6
 ESPINOZA, Patricia Rachelle C.
2019-0571

IX
1. Yes, because it is a just cause in terminating an employee. Just cause means that the
employee has committed a wrongful act or omission.

2. No under jurisprudence if the employee has been reinstated during the appeal period
and such reinstatement order is subsequently reversed on appeal with finality, the
employee is not required to reimburse whatever salaries he has received for he is
entitled to such, more so if he actually rendered services during the said period.

3. NO because it has to be prayed for. There is a requirement of inclusion in prayer of

award of moral and exemplary damages

4. Under the Doctrine of Strained Relations where the continued relationship between
the employer and the employee is no longer viable due to the strained relations and
antagonism between them.

5. No because a motion for reconsideration is unavailing as a remedy against a decision

of the Labor Arbiter. The Labor Arbiter should treat the said motion as an appeal to
the NLRC.

It is invalid. HIV Status and AIDS are not a ground for termination. Discrimination in any
form from pre-employment to post-employment, including hiring, promotion or assignment,
based on the actual, perceived or suspected HIV status of an individual is prohibited.
Termination from work on the sole basis of actual, perceived or suspected HIV status is
deemed unlawful under RA No. 8504, Sec. 35.

XI
1. The act of XYZ Corporation at the Flat Bar and Meshwire Section amount to
retrenchment or closure. Closure involves 2 situations
a. When not due to serious business losses or financial reverses
b. When due to serious business losses or financial reverses
XYZ Corporation’s act can be attributed to situation (b) of closure.

2. Yes, as provided by the law, in both retrenchment and closure employees are entitled
to separation pay. Employment is the lifeblood upon which the worker and his family
owe their survival

3. The employees are entitled to the benefits of separation pay, if the dismissal is by
virtue of a just or authorized cause, but without due process, the dismissed workers
are entitled to an indemnity in the form of nominal damages, but no back wages.

Page | 7
 ESPINOZA, Patricia Rachelle C.
2019-0571

XII
YES, it is valid. The duration of a CBA for Economic and Non-Economic Aspect may last
for a maximum period of three years after the execution of the CBA, while representation
Aspect may last for five years. It refers to the identity and majority status of the union that
negotiated the CBA as the exclusive bargaining representative. The effectivity date depends
on whether the CBA is the first CBA or a renegotiated CBA. If it is the first CBA the
effectivity date depends upon the agreement of the parties but if it is Renegotiated CBA - If
within six (6) months from the expiry date of the old CBA, then the new CBA starts to take
effect on the date following such expiry date. If beyond six (6) months, the retroaction date
will have to be agreed upon by the parties.
In this case, it is a renegotiated CBA. The law provides that if it is renegotiated CBA, the
retroactivity of the date of effectivity depends upon the duration of conclusion, if it is
concluded beyond 6 months from the expiry date, the matter of retroaction and effectivity is
left with the parties.

XIII
1. Yes, because the return to work order is compulsory and immediately executory in
character. It should be strictly complied with by the parties even during the pendency
of any petition questioning its validity in order to maintain the status quo while the
determination is being made.

2. Yes because it constitutes as abandonment from post which is a ground for

termination of employment. An employee who failed to comply with the order for his
reinstatement is deemed to have abandoned his work.

3. The DOLE Secretary has the jurisdiction over cases questioning legality or illegality
of strikes involving interests indispensable to national interest. Schools are one of
those interests which are indispensable to national interest.

4. The Labor Arbiter because as provided by law, they have jurisdiction over illegal
dismissal of employees. These employees, being non faculty has an employer-
employee relationship which fall under the Labor Arbiter.

XIV
A. 1. Preventive suspension may be legally imposed against an errant employee only
while he is undergoing an investigation for certain serious offenses. Consequently, its
purpose is to prevent him from causing harm or injury to the company as well as to
his fellow employees, hence, his actual presence in the workplace would not be
desirable for the meaningful conduct of the investigation of his case. Its imposition is
thus justified only in cases where the employee’s continued presence in the company
premises during the investigation poses a serious and imminent threat to the life or

Page | 8
 ESPINOZA, Patricia Rachelle C.
2019-0571

property of the employer or of the employee’s co-workers. Without this threat,

preventive suspension is not proper.

2. During the 30-day preventive suspension, the worker is not entitled to his wages
and other benefits. However, if the employer decides, for a justifiable reason, to
extend the period of preventive suspension beyond said 30- day period, he is obligated
to pay the wages and other benefits due the worker during said period of extension. In
such a case, the worker is not bound to reimburse the amount paid to him during the
extension if the employer decides to dismiss him after the completion of the
investigation.

3. Preventive suspension should only be for a maximum period of thirty (30) days.
After the lapse of the 30-day period, the employer is required to reinstate the worker
to his former position or to a substantially equivalent position.

B.1. No, because his resignation is a voluntary resignation without just cause.
Voluntary Resignation requires the submission of a written resignation letter at least
thirty (30) days before its effectivity date, in this case, it was the same day of its
effectivity, therefore it is invalid.

2. Yes, it would constitute a violation of the said provision because

3. Yes. In Voluntary Resignation, the failure to serve the written resignation letter
within the said 30-day period would make the resigning employee liable for damages.

4, No. Because this restriction is not under a post-retirement competitive employment

restriction. A post-retirement competitive employment restriction is designed to
protect the employer against competition by former employees who may retire and
obtain retirement or pension benefits and, at the same time, engage in competitive
employment.

XV.
TRUE or FALSE
1. A project to project employee will never attain regular status of employment.

2. A probationary employee has no security of tenure.

3. Closure of business operation due to serious business loses/reverses negate payment of
separation pay.
4. A private school teacher after rendition of three (3) years teaching service is entitle to
regular status of employment.
5. A dismissed employee can no longer be allowed to vote in a certification election.

Page | 9
 ESPINOZA, Patricia Rachelle C.
2019-0571

6. A local/chapter of a national federation cannot disaffiliate during the lifespan of the

collective bargaining agreement that it [federation] executed and entered into with the
employer for and in behalf of said local/chapter [union].
7. Observance of the thirty (30) day notice by an employee to severe employee-employer
relationship is mandatory.
8. Unresolved issue on wage distortion in organized establishment should be filed with the
Office of the Labor Arbiter.
9. Conviction of a union member under Art. 247 [death and physical injuries under
exceptional circumstances] of the Revised Penal Code is a ground for disqualification to
any union appointive or elective position.
10. Illegal dismissal case prescribe in four (4) years while unfair labor practice case
prescribe in three (3) years.

11. A “no union” vote cannot win in a certification election whether held in an organized or
unorganized establishment.

12. The secretary of labor in the exercise of his visitorial power under Art. 274 of
the Labor Code can moto propio inquire/investigate into union financial matter.

13. An employee who at the time of hiring/commencement of employment was

never informed of the criteria, standard or yardstick to qualify for regularization
is already a regular employee or conferred the status of a regular employment.

14. Part time college/university professors are entitled to retirement pay.

15. Extension of service and/or rehiring of a compulsorily retired employee is

prohibited by law.

1. FALSE. A project employee can acquire the status of a permanent employee if they
are continuously rehired to undertake other projects for the company or the tasks they
perform are necessary and indispensable to the usual operations of the company.
Because project employees have presumably become regular employees if they are
allowed to beyond the completion of the project.

2. FALSE. A probationary employee also enjoys security of tenure, although it is not

on the same plane as that of a permanent employee, because the employee can only be
dismissed in three ways. Aside from just and authorized causes, a probationary
employee may also be dismissed due to failure to qualify in accordance with the
standards of the employer made known to him at the time of his engagement.

3. TRUE

4. TRUE

Page | 10
 ESPINOZA, Patricia Rachelle C.
2019-0571

5. FALSE. The votes of dismissed employees who contested their dismissal before the
National Labor Relations Commission (NLRC) shall be appreciated in the final
tabulation of the certification election results.

6. FALSE. a local union is a separate and voluntary association that under the
constitutional guarantee of freedom of expression is free to serve the interests of its
members, such right and freedom invariably include the right to disaffiliate or declare
its autonomy from the federation or mother union to which it belongs, subject to
reasonable restrictions in the law or the federation’s constitution.

7. TRUE.

8. FALSE. Any dispute arising from wage distortions shall be resolved through the
grievance procedure under their collective bargaining agreement and, if it remains
unresolved, through voluntary arbitration. Unless otherwise agreed by the parties in
writing, such dispute shall be decided by the voluntary arbitrator or panel of voluntary
arbitrators within ten (10) calendar days from the time said dispute was referred to
voluntary arbitration.

9. FALSE Article 247 of the Revised Penal Code does not define and provide for a
specific crime, but grants a privilege or benefit to the accused for the killing of
another or the infliction of serious physical injuries under the circumstances
enumerated under such Article.

10. FALSE The prescriptive period for filing an illegal dismissal complaint is four
years from the time the cause of action accrued. This four-year prescriptive period,
not the three-year period for filing money claims under Article 291 of the Labor
Code, applies to claims for backwages and damages due to illegal dismissal.

11. FALSE A No union vote may win as there is no prohibition under the law for
such.

12. FALSE. The visitorial power of the Secretary of Labor and enforcement of such
power is provided under Art. 128 of the Labor Code, as amended.

13. TRUE. In all cases of probationary employment, the employer shall make known
to the employee the standards under which he will qualify as a regular employee at
the time of his engagement. Where no standards are made known to the employee at
that time, he shall be deemed a regular employee.

14. TRUE. Section 1 of Republic Act 7641, amending the Labor Code of the
Philippines provides that all employees in the private sector, regardless of their
position, designation or status and irrespective of the method by which their wages are
paid, except to those specifically exempted are entitled to retirement pay.

Page | 11
 ESPINOZA, Patricia Rachelle C.
2019-0571

15. TRUE, To realize the purpose behind requiring that retirement be compulsory
upon attainment of age 65, the continuance in the service of those who are already
eligible to compulsory retirement should no longer be allowed except in cases of
special contracts, such as job orders and contracts of service

Page | 12