Set 2

1. Q: Discuss the differences between compulsory and voluntary/optional retirement

as well as the minimum benefits provided under the Labor Code for retiring
employees of private establishments. (2019 BAR)

A: A voluntary/optional retirement is a termination of employment based on a

bilateral agreement to terminate employment at an agreed age regardless of years in
service, or after a certain number of years in service regardless of age. It is a matter of
contract. In contrast, a compulsory retirement is a termination of employment by
operation of law. It is a matter of statute.

Under Art. 302 of the Labor Code, retiring employees shall be paid retirement
benefits computed as follows:
(22.5 days x Daily Rate) x Length of Service

The 22.5 days consist of 15 days representing half-month salary, 5 days as

service incentive leave, and 2.5 days representing 1/12 of 13th month pay. The full
22.5 days shall be used if the retiree is entitled to both service incentive leave and
13th month pay. Meantime, the 15 days must always be used.

2. Define, explain or distinguish the following terms: x x x

(d) Bona fide occupational qualifications (2019 BAR)

A: Employment in particular jobs may not be limited to persons of a particular

sex, religion, or national origin unless the employer can show that sex, religion, or
national origin is an actual qualification for performing the job. The qualification is
called a bona fide occupational qualification (BFOQ). (Armando Yrasuegui v. PAL,
G.R. No. 168081, Oct. 17, 2008)

3. Q: Lito was anticipating the bonus he would receive for 2013. Aside from the 13th
month pay, the company has been awarding him and his other co-employees a two to
three months bonus for the last 10 years. However, because of poor over-all sales
performance for the year, the company unilaterally decided to pay only a one month
bonus in 2013. Is Lito’s employer legally allowed to reduce the bonus? (2014 BAR)

A: Yes. A bonus is an act of generosity granted by an enlightened employer to

spur the employee to greater efforts for the success of the business and realization of
bigger profits. The granting of a bonus is a management prerogative, something
given in addition to what is ordinarily received by or strictly due the recipient. Thus,
a bonus is not a demandable and enforceable obligation, except when it is made part
of the wage, salary or compensation of the employee. It may, therefore, be
withdrawn, unless they have been made a part of the wage or salary or compensation
of the employees, a matter which is not in the facts of the case. (American Wire and
Cable Daily Rated Employees Union v. American Wire and Cable Co., Inc. and the
Court of Appeals, G.R. No. 155059, April 29, 2005)

4. Q: Mang Bally, owner of a shoe repair shop with only nine (9) workers in his
establishment, received proposals for collective bargaining from the Bally Shoe
Union. Mang Bally refused to bargain with the workers for several reasons. First, his
shoe business is just a service establishment. Second, his workers are paid on a
piecework basis (i.e., per shoe repaired) and not on a time basis. Third, he has less
than ten (10) employees in the establishment. Which reason or reasons is/are tenable?
Explain briefly. (2002 BAR)

A: NONE. First, Mang Bally's shoe business is a commercial enterprise, albeit

a service establishment.

Second, the mere fact that the workers are paid on a piece-rate basis does not
negate their status as regular employees. Payment by piece is just a method of
compensation and does not define the essence of the relation. (Lambo v. NLRC, G.R.
No. 111042, Oct. 26, 1999) Third, the employees' right to self-organization is not
delimited by their number.

The right to self-organization covers all persons employed in commercial,

industrial and agricultural enterprises and in religious, charitable, medical, or
educational institutions whether operating for profit or not. (Art. 243 [now 253],
Labor Code)

5. Q: Samahang East Gate Enterprises (SEGE) is a labor organization composed of the

rank-andfile employees of East Gate Enterprises (EGE), the leading manufacturer of
all types of gloves and aprons. EGE was later requested by SEGE to bargain
collectively for better terms and conditions of employment of all the rank-andfile
employees of EGE. Consequently, EGE filed a petition for certification election
before the Bureau of Labor Relations (BLR). During the proceedings, EGE insisted
that it should participate in the certification process. EGE reasoned that since it was
the one who filed the petition and considering that the employees concerned were its
own rank-andfile employees, it should be allowed to take an active part in the
certification process. Is the contention of EGE proper? Explain. (2014 BAR)

A: NO. Under Art. 258-A [now 271] of the Labor Code, an employer is a mere
bystander in certification elections, whether the petition for certification election is
filed by said employer or a legitimate labor organization. The employer shall not be
considered a party thereto with a concomitant right to oppose a petition for
certification election.
6. Q: ABC company and U labor union have been negotiating for a new Collective
Bargaining Agreement (CBA) but failed to agree on certain economic provisions of
the existing agreement. In the meantime, the existing CBA expired. The company
thereafter refused to pay the employees their midyear bonus, saying that the CBA
which provided for the grant of midyear bonus to all company employees had
already expired. Are the employees entitled to be paid their midyear bonus? Explain
your answer. (2010 BAR)

A: YES, under Art. 253 [now 264] of the Labor Code, the parties are duty-bound
to maintain the status quo and to continue in full force and effect the terms and
conditions of the existing CBA until a new agreement is reached by the parties.
Likewise, Art. 253-A [now 265] provides for an automatic renewal clause of a CBA.
Although a CBA has expired, it continues to have legal effects as between the parties
until a new CBA has been entered into. The same is also supported by the principle
of holdover, which states that despite the lapse of the formal effectivity of the CBA,
the law stills considers the same as continuing in force and effect until a new CBA
shall have been validly executed (MERALCO v. Hon. Sec. of Labor, 337 SCRA 90
[2000] citing National Congress of Unions in the Sugar Industry of the Philippines v.
Ferrer-Calleja, 205 SCRA 478 [1992]). The terms and conditions of the existing CBA
remain under the principle of CBA continuity

7. Q: When resolving a case of unfair labor practice (ULP) filed by a union, what
should be the critical point of analysis to determine if an act constitutes ULP? (2019
BAR)

A: The critical point of analysis is the violation of the rights of workers to self-
organization, characterized by interference, coercion, restraint by the employer to
discourage unionism and refusal to bargain a collective bargaining agreement.

8. Q: Define, explain or distinguish the following terms: x x x (c) Strikes and lockouts
(2019 BAR)

A: Strikes are any temporary stoppage of work by the concerted action of

employees as a result of an industrial labor dispute; whereas, lockouts are the
temporary refusal of an employer to furnish work as a result of an industrial or labor
dispute. (Art. 219 [formerly 212], par. o and p, Labor Code)

9. Q: Employees of ABC declared a strike after filing a Notice of Strike with the
DOLE. They barricaded company gates and damaged vehicles entering company
premises. On the second day of the strike, ABC filed a petition with the DOLE
Secretary to intervene through the issuance of an assumption of jurisdiction order
that the Secretary may issue when a strike or lock-out will adversely affect national
interest. ABC furnished the Secretary with evidence to show that company vehicles
had been damaged; that electric power had been cut off; and equipment and
materials were damaged because electric power was not immediately restored.

ABC forecast that the country’s supply of chlorine for water treatment (which die
company produces) would be affected adversely if ABC’s operations were closed
down by the strikers. Could the DOLE Secretary intervene, assume jurisdiction and
issue a TRO (Temporary Restraining Order)? Briefly justify your answer. (2004 BAR)

A: YES, the Secretary of Labor and Employment can assume jurisdiction over
the dispute because ABC could be considered as an industry indispensable to the
national interest since it produces the country’s supply of chlorine for water
treatment.

The assumption of jurisdiction by the Secretary of Labor and Employment has

the effect of ending the strike. The strikers will be subject to a return-to-work order
by the Secretary of Labor and Employment upon her assumption of jurisdiction.

10. Q: Tito Paciencioso is an employee of a foundry shop in Malabon, Metro Manila.

He is barely able to make ends meet with his salary of P4,000.00 a month. One day, he
asked his employer to stop deducting from his salary his SSS monthly contribution,
reasoning out that he is waiving his social security coverage. If you were Tito’s
employer, would you grant his request? Why? (2008 BAR)

A: NO. As Tito’s employer, I am bound by law to remit to SSS Tito’s monthly

contribution. The SSS law covers any person natural, juridical, domestic or foreign,
carrying in the Philippines trade, business industry, undertaking or activity and uses
the services of another under his order as regards employment. The compulsory
coverage of employers and employees under the SSS law is actually a legal
imposition on the employers and employees, designed to provide social security to
workingmen. Membership in SSS is in compliance with a lawful exercise of the
police power of the State, and may not be Waived by agreement of any party. (Phil.
Blooming Mills, Co., Inc. v. SSS, 17 SCRA 1077 [1966])