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NAME OF STUDENT: ___________________________________

LABOR LAW REVIEW MCQ EXERCISE 2ND SEM 2017-2018


LABOR RELATIONS

INSTRUCTIONS:
Read each question very carefully and then encircle the letter corresponding to your
chosen answer. Choose only one (1) letter for every number. Only one (1) answer is
correct, the rest are “distracters”. HAPPY TRIP!

1. How many days immediately preceding the expiration of the representation period of five (5)
years in the CBA does the freedom period consist of?
A. 60 days
B. 45 days
C. 30 days
D. 50 days

2. The employer may place the worker concerned under preventive suspension for a period of
A. 60 days
B. 30 days
C. 10 days
D. 90 days

3. The legal basis for the valid imposition of preventive suspension is found in the
A. Rules to Implement the Labor Code
B. Book V of the Labor Code
C. Position Paper
D. Decision finding illegal dismissal

4. Reinstatement under Article 279 of the Labor Code presupposes that


A. it is immediately appealable
B. the appeal was not perfected
C. the judgment has attained final and executory character
D. a motion for reconsideration is seasonably filed

5. The act of restoring the employee who was unjustly dismissed to the position from which he
was removed is called
A. Reinstatement
B. Backwages
C. Separation pay
D. Return to work

6. That which is granted to the employee to allow recovery of lost earnings as a result of illegal
dismissal is called
A. Payroll salaries
B. Backwages
C. Separation pay
D. Moral damages

7. The amount of the bond posted by the employer in case of a judgment involving monetary
award includes
A. the monetary award only
B. moral and exemplary damages
C. attorney’s fees
D. actual and nominal damages
8. Employees whose services are coterminous with the project and may be terminated upon
the end or completion of the project for which they were hired are
A. seasonal employees
B. casual employees
C. temporary employees
D. project employees

9. Employees who are legally entitled to remain in the service of their employer until their
service is terminated under the recognized modes of termination of service under the Labor
Code are
A. project employees
B. regular employees
C. fixed-period employees
D. contractual employees

10. A casual employee becomes a regular employee with respect to the activity in which he is
employed when
A. he completes one (1) year of service
B. he is issued a regular appointment by his employer
C. the employer declares him as regular employee
D. he completes six (6) months of uninterrupted service

11. Unfair labor practice is committed when an employee exercises the right to
A. Security of tenure
B. Labor standard benefits
C. Self-organization
D. Minimum wage

12. The Secretary of the DOLE has NO power to issue


A. Search warrants and warrants of arrests
B. Writs of execution
C. Cease and desists orders
D. Return to work orders

13. The remedy from an adverse decision, resolution, order and award of the NLRC is by
petition for certiorari in the
A. Court of Appeals under Rule 45
B. Court of Appeals under Rule 65
C. Supreme Court under Rule 45
D. Department of Labor and Employment

14. A labor organization acquires legal personality and becomes entitled to the rights and
privileges granted by law
A. Upon completion of all requirements for registration
B. Upon issuance of the certificate of election
C. Upon expiration of the freedom period
D. Upon issuance of the certificate of registration

15. Neither an existing collective bargaining agreement during its lifetime can be terminated or
modified nor an inter-union electoral contest be allowed is the essence of
A. Substitutionary doctrine
B. Deadlock-bar rule
C. Contract-bar rule
D. Grievance machinery
16. The existence of employer-employee relationship is determined by
A. Agreement between the employer and the employee
B. Law
C. Collective Bargaining Agreement
D. Company policy

17. The jurisdiction of the Labor Arbiter is determined by


A. Supreme Court
B. NLRC
C. Congress
D. Secretary of DOLE

18. To compel the employer to hire the services of a worker constitutes


A. Harassment
B. Oppression
C. Involuntary Servitude
D. Economic sabotage

19. The yardstick for the determination of existence of employer-employee relationship is the
so-called
A. Control test
B. Economic test
C. Pregnancy test
D. Four-fold test

20. The employer who forces his employee to render overtime work infringes the constitutional
guarantee against
A. Deprivation of property without due process of law
B. Involuntary servitude
C. Illegal dismissal
D. Freedom of expression

21. A case for money claims of Php 5,000.00 with prayer for relief of reinstatement is within the
exclusive original jurisdiction of the
A. Secretary of DOLE
B. Commission on Human Rights
C. Labor Arbiter
D. Barangay Justice System

22. Which industry is most vital to national interest as to be subject of immediate assumption
of jurisdiction by the DOLE Secretary or certification for compulsory arbitration in case of
strike or work stoppage arising from a labor dispute?
A. Bulletin daily newspaper publishing company
B. Local franchise of Jollibee and Starbucks
C. Shipping and port services in Davao, Cebu and Manila
D. LBC, DHL and FedEx centers

23. A security guard who has been temporarily placed in off-detail/floating status by his
employer for less than six (6) months is considered as
A. Constructively dismissed
B. Waiting to be posted
C. Resigned with severance pay
D. Illegally dismissed

24. An employee who was called upon to perform a mandatory military or civic duty
A. Forfeits his job subject to payment of severance pay
B. Is considered terminated from service
C. May return to work within six (6) months after his relief from such service
D. May resume work within one (1) month from relief from duty

25. Which of the following statements is indicative of a valid exercise of management


prerogative?
A. The disciplinary prerogative of the employer cannot be nullified by arguing that the
employer is the accuser, prosecutor, and judge at the same time
B. The prerogative to transfer business ownership of the employer is not absolute because
it may bring about the dismissal of its employees in the process
C. The management has the prerogative to close down his business in its entirety but not
any segment or branch thereof
D. It is the employer’s right to reorganize the business but it cannot abolish positions as a
result thereof

26. The law, CBA, employment contract, employer policy or practice and general principles of
fair play and justice limits
A. the employees’ enjoyment of security of tenure
B. the exercise of management prerogative
C. the employee’s right to self-organization
D. the jurisdiction of the Secretary of DOLE

27. The two-fold due process requirement consists of


A. Notice and Hearing
B. First written notice and Second written notice
C. Substantive and Procedural
D. Just cause and Authorized cause

28. Notice and hearing are not required in the imposition of the employee’s
A. preventive suspension
B. dismissal
C. punitive suspension
D. reprimand

29. If an employee is dismissed based on grounds different from those cited in the first notice,
he is deemed to have been deprived of
A. the constitutional right to information
B. the constitutional right to equal protection of law
C. substantive due process
D. procedural due process

30. In illegal dismissal cases, the onus of proving that the employee was not dismissed or if
dismissed, that the dismissal was not illegal, rests on
A. the respondent
B. the one who alleges illegal dismissal
C. the corroborating witnesses
D. the grievance committee

31. The right to counsel under the Bill of Rights of the 1987 Constitution attaches only upon
the start of an investigation; therefore, in an administrative investigation conducted by the
employer, the admissions made during such investigation without the presence of counsel
may
A. not be used as evidence in administrative proceedings
B. be used as evidence in criminal proceedings
C. be used as evidence to justify dismissal
D. not be used as evidence in quasi-judicial proceedings

32. The DOLE Secretary may suspend the effects of termination pending resolution of the case
in the event of a prima facie finding by the appropriate official of the DOLE before whom the
dispute is pending that the termination
A. may cause a company labor dispute
B. is in the implementation of a mass lay-off
C. may result in nationwide transport strike
D. constitutes economic sabotage

33. The employer may place the worker concerned under preventive suspension if his
continued employment poses a serious and imminent threat
A. to the life or property of the worker and his family
B. to the right of the employee to security of tenure
C. to the right of the employee to self-organization
D. to the life or property of the employer or of his co-workers

34. An illegally dismissed employee is entitled to be reinstated to his former position, unless
such position no longer exists at the time of his reinstatement, in which case, he should be
A. awarded with moral and exemplary damages
B. given a substantially equivalent position without loss of seniority rights
C. indemnified in the form of nominal damages
D. given backwages and retirement pay

35. Article 223 of the Labor Code provides that in case of a judgment involving a monetary
award, an appeal by the employer may be perfected only
A. upon the posting of a property bond
B. by filing an appeal to NLRC within 15 days from receipt of decision
C. upon the posting of a cash or surety bond
D. upon payment of damages

36. An employee who is ordered reinstated with backwages


A. is entitled to benefits and increases during period of dismissal
B. is not entitled to benefits and increases during his lay-off
C. is automatically entitled to payroll reinstatement
D. is not entitled to separation pay in lieu of reinstatement

37. An illegally dismissed OFW is entitled to


A. reinstatement and backwages under Article 279 of the Labor Code
B. money claims under Section 10 of RA 8042
C. reinstatement even pending appeal
D. separation pay and damages

38. Where no standards are made known to a probationary employee under which will qualify
at the time of his engagement, he should be deemed
A. a casual employee
B. a fixed period employee
C. a regular employee
D. a seasonal employee

39. A series of administrative irregularities, when considered together or in their entirety, may
constitute a valid ground to terminate employment for
A. gross and habitual neglect of duty
B. serious misconduct
C. loss of trust and confidence
D. abandonment

40. While generally, the doctrine of loss of trust and confidence may only be invoked against
managerial employees, there are instances when the doctrine may also be successfully
invoked against rank-and-file employees who, by reason of the nature of their positions,
A. are reposed with trust and confidence
B. are covered by fixed-period employment contract
C. are deemed officers of the majority union
D. are imbued with managerial functions

41. It is one of the economic grounds for dismissing employees and is resorted to primarily to
avoid or minimize business losses.
A. Redundancy
B. Reorganization
C. Retrenchment
D. Resignation

42. During the sixty (60) days freedom period, the union security clauses, being meant to
maintain the strength of the contracting union during the life of the collective
bargaining agreement (CBA) and safeguard it against the perfidy or fickleness of its own
members and incursions by the employer,
A. cease to be in force and effect
B. lengthen the freedom period
C. continue to be in force and effect
D. invalidate the contract-bar rule

43. At the expiration of the freedom period, the employer shall continue to recognize the
majority status of the incumbent bargaining agent where no petition for certification
election is filed because of
A. Substitutionary doctrine
B. Preventive mediation
C. Contract-bar rule
D. Automatic renewal clause

44. A mode of settling labor-management disputes by which the parties select a competent,
trained and impartial third person who shall decide on the merits of the case and whose
decision is final and executory is called
A. Voluntary arbitration
B. Compulsory arbitration
C. Conciliation and mediation
D. Reinstatement pending appeal

45. The authority to convert a notice of strike filed by the union into a preventive mediation
case if it finds that the real issues raised therein are non-strikeable in character is lodged
with the
A. President
B. Secretary of DOLE
C. NCMB
D. NLRC

46. A “no-strike, no lockout” provision in the CBA is a valid stipulation although the clause
may be invoked by an employer only when the strike is
A. for union recognition
B. economic in nature
C. grounded on unfair labor practice
D. staged by the minority union

47. A return-to-work order is an indispensable consequence of the assumption or certification


order issued by the DOLE Secretary in national interest cases and is automatic in nature;
returning to work therefore, on the part of the worker, is
A. a matter of option or voluntariness
B. discretionary
C. an obligation
D. a violation of his right to self-organization

48. The dues and other fees that may be assessed from non-union members within the
bargaining unit who accept and avail of the benefits flowing from the CBA are called
A. agency fees
B. union dues
C. check-off fees
D. membership fees

49. Union officers who knowingly participated in an illegal strike may be declared to have
A. been legally dismissed
B. been validly retrenched
C. lost employment status
D. retired from service

50. The process of determining through secret ballot the sole and exclusive bargaining
representatives of the employees in an appropriate bargaining unit for purposes of collective
bargaining is called
A. run-off election
B. consent election
C. direct certification
D. certification election

51. When the services of an employee are in excess of what is required by an enterprise, the
employer may resort to
A. Redundancy
B. Reorganization
C. Retrenchment
D. Resignation

52. A bargaining representative of a legitimate labor organization may be any officer or agent of
such organization
A. whether or not employed by the employer
B. whether or not a natural person
C. only if employed by the employer
D. only if a bona fide member of the such organization

53. The decision of a the Labor Arbiter reinstating a dismissed or separated employee, which is
appealed to the NLRC shall
A. be executory upon entry of judgment/finality thereof
B. immediately be executory
C. be executory upon posting of surety or cash bond
D. immediately be subject to review by the Secretary of DOLE

54. A lawyer legally representing a party before the Labor Arbiter may enter into a compromise
settlement with the opposing party in full or partial discharge of his client’s claim only if
A. he files an entry of appearance
B. he has a retainer’s contract with his client
C. he has a special power of attorney from his client
D. he has authority to bind client in all matters of procedure

55. After a labor judgment or decision has attained finality and became executory, parties
thereto, insofar as subject judgment/decision is concerned, may enter into a
A. compulsory/involuntary arbitration
B. new arbitration proceeding
C. compromise agreement/amicable settlement
D. collective bargaining agreement

56. Labor Arbiters have jurisdiction over labor disputes arising between
A. foreign employers and foreign workers
B. foreign workers and local recruitment agencies
C. foreign recruitment agencies and foreign employers
D. foreign employers and overseas Filipino workers

57. Complaints for violation of duty to bargain collectively, illegal dismissal due to lack of notice
to employee, and illegal strike due to failure to first bargain collectively is within the
jurisdiction of
A. Secretary of DOLE
B. NLRC
C. Labor Arbiter
D. NCMB

58. Despite proper service of an assumption order issued by the DOLE Secretary, the union’s
officers and members refused to return to work. Because of this, the employer terminated
all the officers of the union. Was the termination legal?
A. No, because the company is guilty of union busting
B. Yes, provided due process is followed
C. No, beause the assumption order did not categorically state that employees have to
return to work
D. Yes, because the union’s officer and members defied the assumption order

59. A proviso in the CBA, which binds the employer to hire only members of the contracting
union and allows him to dismiss an employee from work for failure to remain a member in
good standing is called
A. Maintenance of membership clause
B. Closed shop agreement
C. Union shop agreement
D. Preferential shop agreement

60. A strike to force the employer to grant 14th month pay, sick leave and vacation leave
allowances is
A. Wildcat strike
B. Union-recognition strike
C. Economic strike
D. Sit down strike

61. Y Co. bought the business of X Co. The employees of X Co. were not consulted of the sale.
Filing a case for illegal dismissal and money claims for accrued overtime pay and other
wage concessions, AXY, an employee of X Co., sues Y Co., before the Labor Arbiter. Decide.
A. The complaint will prosper because Y Co. is the new employer of AXY
B. The complaint will not prosper because AXY was not consulted of the sale
C. The complaint will prosper because the assets of X Co. were transferred to Y Co.
D. The complaint will not prosper because Y Co. is not a party to the employment contract

62. A company engaged in the refining and distribution of sugarcane products filed with the
NLRC a petition for injunction to stop its employees who have gone on strike from blocking
the means of egress and ingress to the plant. The NLRC ordered the strikers to return to
work and the company to accept them. Decide.
A. The order is invalid because it has no injunctive power
B. The order is valid because it has exclusive jurisdiction over petitions for
injunctions on labor disputes
C. The order is valid because the strike is illegal
D. The order is invalid because it has neither power nor authority to order the
strikers to return to work

63. After failing in its negotiations with management, the union filed with the DOLE a notice of
strike. The DOLE summoned the parties for conciliation hearings to resolve the deadlock.
Unable to agree the union called a strike participated in by its officers and union members,
including W, a rank-and-file employee, who led the “walk out”. The management filed a
petition to declare illegal the strike, which the union staged without observing the “waiting
period”. Claiming that the strike was illegal, all those who participated therein, including
W, the management dismissed them. Decide.
A. The dismissal is valid because the “walk out” was illegal
B. The dismissal is not valid because the right to self-organization is guaranteed by
the constitution
C. The dismissal is valid because W may be deemed to have lost employment status
for leading the “walk out”
D. The dismissal is not valid because W did not participate in the commission of
any illegal acts

64. Blu-job Labor Union declared strike has reached its third (3 rd) month with no end in sight.
The company is unyielding and the strikers are angry, hungry and growing weaker
everyday. Two Spanish missionaries, Sister Rosal and Father Sala, sharing compassion
with the strikers, distributed food and drinks to the strikers. They also donated money. Did
the missionaries commit illegal acts under the Labor Code for engaging in trade union
activities?
A. No, because their intentions were humane and pro-people
B. No, because they are not employed in the country
C. Yes, because they have no right to self-organization
D. Yes, because they are strictly prohibited from engaging, directly or indirectly, in
all forms of trade union activities

65. After the death of a taxicab operator, his “boundary system” drivers filed a complaint
against his mother, who succeeded in his estate as sole heir, for illegal dismissal and
money claims for collection of unpaid labor standard benefits. Which of the following is
NOT a valid defense, which the mother may raise against the drivers’ complaint?
A. The mother is not the employer of the “boundary system” drivers
B. The “boundary system” driver’s complaint did not survive the operator’s death
C. No employer-employee relationship exists between the “boundary system”
drivers and the taxicab operator
D. Employer-employee relationship is contractual in character

66. Under a seaman’s contract of employment with a local manning agent of a foreign shipping
company, Capt. TROY embarked on an ocean-going vessel in good health. One Stormy
night at sea, he was drenched with rainwater. The following morning, he contracted fever,
which lasted for days. He suffered loose bowel movement, lost his appetite, and eventually
died before a scheduled airlift to the nearest post. Subsequently, the widow of Capt. TROY
complained against the local manning agent and its foreign principal before the Labor
Arbiter, for actual and exemplary damages and attorney’s fees. She invoked the Labor Code
provision, which requires the employer to provide all necessary assistance to ensure the
adequate and necessary medical attendance and treatment of the injured or sick employee
in case of emergency. Respondent moved to dismiss the complaint on jurisdictional issue. If
you were the Labor Arbiter, how would you rule on the motion?
A. The motion to dismiss is granted because of absence of employer-employee relationship
between parties
B. The motion to dismiss is denied because the Labor Arbiter has jurisdiction over money
claims arising from employer-employee relationship pursuant to Article 217 of the
Labor Code
C. The motion to dismiss is granted for lack of jurisdiction over subject matter
D. The motion to dismiss is denied because it is not one of the prohibited pleadings under
the NLRC rules

67. On engagement as employee, Morales executed a document expressing deep gratitude to


his employer for giving him a job, and binding himself not to claim for underpayment of his
wages or non-payment of overtime work that he may render in the course of his
employment. Later on, Morales files a claim against his employer for underpayment of
wages and non-payment of overtime compensation before the Labor Arbiter. The employer
interposes the defense that Morales has waived the said claims. If you were the Labor
Arbiter, how would you rule on the employer’s defense?
A. The waiver is binding because Morales executed the same voluntarily, freely and
without duress
B. The document Morales executed partakes of a contract between employer and employee
and must therefore be the law applicable between the parties
C. The waiver contravenes public policy as it encourages the employer to violate with
impunity the laws on wages and overtime work
D. No law is violated in the waiver of personal rights

68. In an illegal dismissal case filed by X against Y Corporation, the Labor Arbiter rendered a
decision directing the employer for complainant’s immediate actual reinstatement, or at its
option, payroll reinstatement, and payment of full backwages. The corporation appealed to
the NLRC. Following his lawyer’s advice that the reinstatement aspect of the decision is
immediately executory, X went to the Personnel Officer of the company and demanded
immediate reinstatement. When the company refused, X’s lawyer filed a motion to cite the
company in contempt. Acting on the motion, the NLRC ordered the payroll reinstatement of
X. Is the NLRC order valid?
A. No, because the decision is not yet final and executory.
B. Yes, because no actual physical reinstatement is demanded by X
C. No, because the option for actual reinstatement of payroll reinstatement belongs solely
to the employer
D. Yes, because the NLRC has exclusive appellate jurisdiction over the decision of the
Labor Arbiter

69. MB was employed by RB Corporation as Chief Mechanical Engineer and Plant


Superintendent, a managerial position. She organized the Shootingstar Technical
Association and became an active member thereof. As a result, the company dismissed her
from employment for loss of trust and confidence. Claiming that she was dismissed
because of her union activities and union membership, she filed a complaint for unfair
labor practice against the company. Is the company guilty of unfair labor practice?
A. Yes, because MB enjoys the constitutional right to self-organization
B. No, because MB holds a supervisory position
C. Yes, because MB was holding a position imbued with trust and confidence
D. No, because MB cannot bargain collectively with RB

70. Applying for employment with Y Co., the personnel manager asked X to resign from his
union before he could be employed. Refusing to resign, X was not employed. Did Y Co.
commit an unfair labor practice?
A. Yes, because the employee can compel the employer to hire him notwithstanding his
union membership as a valid exercise of his constitutionally protected right to self-
organization
B. No, because no law against unfair labor practice was violated
C. No, because X was not yet hired by Y Company as its employee
D. Yes, because an employer cannot require as a condition for employment that a person
or an employee shall not join a labor organization or shall withdraw from one to which
he belongs

71. Union A filed for certification election. B Company opposed such petition on the ground
that employees with less than one (1) year of service and even probationary employees were
considered as qualified participants in the certification election process, hence, the 25%
requirement has not been properly complied with. B Company contends that such
probationary employees have not earned regular status and should not be considered in the
bargaining unit. Is the contention of B Company tenable?
A. YES, because in a certification election, only regular employees in the appropriate
bargaining unit are entitled to vote
B. NO, because in a certification election, all rank-and-file employees in the appropriate
bargaining unit are entitled to vote
C. YES, because in a certification election, not all rank-and-file employees in the
appropriate bargaining unit are entitled to vote
D. NO, because in a certification election, managerial employees in the appropriate
bargaining unit are disqualified to vote

72. Mr. T is an employee of P Company. He was awarded as the Top Salesman of the Year, with
a prize of house and lot. Mr. T now sues the company before the RTC for the delivery of the
prize contending that it is a civil controversy triable exclusively by the regular courts. P
Company moved to dismiss the case on the ground of lack of jurisdiction. Decide.
A. Motion to dismiss is denied because a demand for prizes and awards partakes of a
claim for damages
B. Motion to dismiss is granted because the controversy is purely an internal matter
C. Motion to dismiss is denied because the RTC has already acquired jurisdiction over the
case
D. Motion to dismiss is granted because the claim arose from employer-employee
relationship

73. Are the provisions of a CBA, entered into by A Union and D Company binding on B
Company as successor in the interest of D Company?
A. NO, because the CBA binds only parties privy to the agreement unless expressly
assumed
B. YES, because the welfare of the laborers is guaranteed protection under the
constitution
C. YES, because B Company, being the successor, steps into the shoes of D Company
D. NO, because A Union lost its majority status upon succession by B Company over the
interest of D Company

74. A union in a containerized shipping company declares a strike to compel the employer to
assign two (2) checkers to one (1) container. If it can be established that only one (1)
checker is needed for a container, has the union committed an unfair labor practice?
A. NO, because only the employer can commit unfair labor practice
B. YES, because featherbedding is unfair labor practice
C. NO, because there is no temporary cessation or stoppage of work
D. YES, because a slow-down strike is unfair labor practice

75. During the pendency of their appeal before the NLRC from the decision of the Labor Arbiter
awarding them severance pay, the workers executed affidavits declaring among others their
intention to withdraw their appeal since they have already received the separation pay
decreed in the decision of the Labor Arbiter. These affidavits, subscribed and sworn to
before the Labor Arbiter were not however brought to the attention of the NLRC. Unaware of
the affidavits, the NLRC rendered a decision ordering reinstatement of the workers and
payment of backwages. In view of the affidavit executed by the workers, may the decision of
the NLRC be enforced?
A. NO. Only the decision of the Supreme Court may be enforced in appeals cases
B. YES. The NLRC being an appellate court, it is vested with authority to affirm, modify of
reverse whatever findings the Labor Arbiter has rendered
C. YES. The affidavits not having been presented before the NLRC are deemed mere scrap
of papers and does not have the force and effect of the decision of the NLRC
D. NO. The validity and conclusiveness of the compromise agreements as a means to end a
labor dispute is recognized under labor and civil laws

76. A notice of hearing issued by the Labor Arbiter to the business owner of a restaurant was
duly received upon due service thereof. The owner did not appear on the scheduled date of
appearance. The Labor Arbiter, only on mere basis of the notice of hearing, proceeded with
the arbitration proceedings and rendered a decision. Did the notice of hearing upon the
owner confer jurisdiction over the person of the former?
A. YES. The service and receipt by the owner of the notice of hearing is sufficient to confer
jurisdiction over his person
B. NO. The Labor Arbiter cannot acquire jurisdiction over the person of the owner without
proper service of summons
C. YES. The notice of hearing is tantamount to a waiver of the legal requirement for the
acquisition of jurisdiction over the person via summons
D. NO. The notice of hearing is null and void for failure of the Labor Arbiter to observe the
NLRC Rules of Procedure on service

77. A group of executive secretaries working in a private corporation decided to join the union
of rank-and-file employees. Their employer opposed alleging that they are ineligible to form
or join a labor union. Is the contention of the employer valid?
A. YES. Management prerogative is absolute, limited only by its exercise in good faith
B. NO. Executive secretaries, just like every employee, is protected by the constitutional
guarantee of security of tenure
C. NO. Executive secretaries, just like every employee, enjoys the constitutional right to
self-organization
D. YES. Executive secretaries are considered confidential employees, who like managerial
employees, are prohibited to form or joint any labor organization

78. The union and the employer were renegotiating the economic provisions of their CBA,
which expired on April 30, 2010. During their final negotiations meeting on October 25,
2010, the union and the company were able to agree on all the major issues arising from
the negotiations. The parties signed the new CBA on November 5, 2010 and had the same
registered with the DOLE on November 10, 2010. What is the effective date of the new CBA
of the parties?
A. November 1, 2010
B. Agreement of the p arties on the retroactivity of the new CBA
C. May 1, 2010
D. July 1, 2010 or 60 days from date of expiration of the old CBA
79. Claiming that his transfer to far-flung assignment constitutes constructive dismissal, a
priest/minister instituted a labor case against his church. The church moved for dismissal
as case is of religious significance. What valid ground may the Labor Arbiter use in legally
resolving the motion?
A. Motion to dismiss is denied as the case is purely secular matter not related to the
practice of faith, worship or doctrine of the church
B. Motion to dismiss is granted for lack of employer-employee relationship
C. The case is dismissed for lack of cause of action
D. The case is dismissed as the dispute violates the constitutional provision on separation
of church and state

80. Alfredo was dismissed by management for serious misconduct. He filed suit for illegal
dismissal, alleging that although there may be just cause, he was not afforded due process
by management prior to his termination. He demands reinstatement with full backwages.
Decide.
A. Alfredo is entitled only to backwages but not reinstatement
B. Alfredo is entitled both to backwages and reinstatement
C. Alfredo is entitled only to indemnity in the form of nominal damages
D. Alfredo is entitled only to separation pay in lieu of reinstatement but not backwages

Zalman Tomato Corp., owned and managed by three (3) elderly brothers and two (2) sisters,
has been in business for 40 years. Due to serious business losses and financial reverses during
the last five (5) years, they decided to close the business.

81. Under the facts above-stated, which of the following statements is valid?
A. The owners cannot close the business without the consent of their
employees
B. The owners can close the business with or without the consent of their
employees
C. The owners can close the business if the DOLE allows them
D. The owners cannot close the business due to serious business losses

82. Instituting a case for illegal dismissal for closing the business without their
consent, which of the following statements sustains agreement?
A. The employees are entitled to reinstatement and backwages
B. The employees are entitled to backwages and separation pay in lieu of
reinstatement
C. the employees are entitled to separation pay and damages
D. The employees are entitled neither to backwages nor reinstatement nor
separation pay

83. If the reason for closure is due to old age of the brothers and sisters, does
the law allow the closure?
A. Yes, provided that the employees are paid their separation pay equivalent
to their monthly pay multiplied by the number of years in service
B. No, because old age is not a valid cause under the Labor Code
C. Yes, provided that the consent of the employees are obtained and
separation pay is paid to them
D. No, unless the DOLE’s permission is obtained 30 days earlier

84. Because of four (4) separate strikes, which caused economic dislocations, the company
gave notice to its employees of the suspension of its operations, advised them to look for
some temporary means of income, and assured them that they would be properly notified
when normal operations are resumed. About twenty (20) months thereafter, the company
sent letters to its employees informing them of the resumption of its operations and
requiring them to report for work within seven (7) days; otherwise, they would be
dismissed. Two (2) employees, who had gone to Yemen to work, could not comply with the
notice. Are they deemed to have abandoned their work?
A. Yes, because they failed to comply with the notice to report for work
B. No, because employment relations had already been deemed legally severed
C. No, because they have a valid reason in not complying with the notice
D. Yes, because the intention to abandon is present when they went to Yemen to work

Milyano Haryenda & Associates hired Maria Elena as Supervising Clerk sometime in
January 1989. In 2000, she was transferred to a branch office in Bicol Region as Cashier. In
the same year, she got married to a Bicolano and settled in Legazpi City. In 2007, to cut down
operational expenses, the company abolished her position and offered to transfer her to the
main office in Makati with relocation expenses. Ms. Elena declined the offer considering the
soaring cost of living in a highly urbanized city, and more importantly, she could not leave
behind her young family. The company assured her that the transfer would not involve any
demotion in rank or pay; however, it warned her that if she failed to report to her new
assignment, she would be dismissed from service. Two (2) weeks after the offer, Ms. Elena
tendered her resignation.

85. Under the facts obtaining, was Maria Elena constructively dismissed
because of the abolition of her position?
A. No, because Maria Elena’s tender of resignation negated constructive
dismissal
B. Yes, because Maria Elena’s tender of resignation is tantamount to
constructive dismissal
C. No, because abolition of the position in good faith is valid exercise of
management prerogative
D. Yes, because the management offer to transfer rendered Maria Elena’s
work impossible, unreasonable, or unlikely

86. In the event that Maria Elena changes her mind, may she withdraw her
resignation?
A. No, because resignations once tendered, they cannot be revoked at the
whim of the employee
B. No, because Maria Elena’s tender of resignation was voluntary
C. Yes, if management does not accept the same
D. Yes, if Maria Elena’s resignation is not effective immediately

87. Under the given facts, is Maria Elena entitled to separation pay?
A. Yes, because she was not illegally dismissed
B. No, because she voluntarily relinquished her position
C. Yes, because she was constructively dismissed
D. No, because separation pay is only given on dismissal grounded on
authorized cause under Article 283 of the Labor Code

88. May Maria Elena make her resignation effective immediately?


A. Yes, provided it is voluntary
B. Yes, provided the DOLE is notified
C. Yes, provided she notifies the employer in writing
D. Yes, provided it is with the consent of the employer
89. Noy Villar had worked for more than ten (10) years in CHZ Corporation. Under the terms of
the personnel policy on retirement, any employee who had reached the age of 65 and
completed at least ten (10) years of service would be compulsorily retired and paid 30 days
pay for every year of service.

Noy Villar, whose immigrant visa to the USA had just been approved, celebrated his 60 th
birthday recently. He decided to retire and move to California where the son who petitioned
him had settled. The company refused to grant him any retirement benefits on the ground
that he had not yet attained the compulsory retirement age of 65 years as required by its
personnel policy; moreover, it did not have a policy on optional or early retirement.

Taking up the cudgels for Noy Villar, the union raised the issue in the grievance machinery
as stipulated in the CBA. No settlement was arrived at, and the matter was referred to
voluntary arbitration. If you were the Voluntary Arbitrator, how would you decide?
A. The Labor Code provision on retirement applies, therefore Noy Villar is entitled to
optional/early retirement under its provision
B. The company’s personnel policy on retirement binds Noy Villar, therefore he is not
entitled to optional or early retirement
C. The CBA being the contract between the union, which Noy Villar belongs, and the
employer, its terms and provisions, which includes the company’s personnel policy on
retirement, binds the parties thereto, thus the company’s refusal to grant Noy Villar
optional/early retirement benefits is tenable
D. There being no optional or early retirement policy in the company’s personnel
retirement, there is no basis to grant retirement benefits to Noy Villar at age 60

90. A criminal case for thief was filed against an employee, and by reason thereof, he was
dismissed. In turn, the employee filed an illegal dismissal case against his employer. During
the mandatory conciliation/mediation conference, the employer moved for the suspension
of the labor case arguing that the criminal case is a prejudicial question to the illegal
dismissal case. Which of the following statements is valid?
A. The guilt of the employee being determinative of the validity of his dismissal, a
prejudicial question exists in the illegal dismissal case
B. The dispute obtaining in both the criminal case and the labor having arisen from
employer-employee relationship, there is no mutual exclusivity in the criminal and
labor proceedings
C. The filing of the criminal case does not have the effect of suspending or interrupting the
running of the prescriptive period for the filing of an action for illegal dismissal.
D. The right to liberty being superior to the right to property in the hierarchy of values
under the bill of rights, the criminal case must take precedence over the labor case

91. In the proceedings before the Labor Arbiter, only the unregistered trade name of the
employer-corporation (Hacienda Lamutan) and its administrator/manager (Jose Edmundo
Pison) were impleaded as respondents and subsequently held liable for illegal dismissal,
backwages and separation pay. On appeal, however, the NLRC motu propio included the
corporate name of the employer (Pison-Arceo Agricultural and Development Corporation) as
jointly and severally liable for the workers’ claims. Decide.
A. The action of the NLRC is not violative of due process because in quasi-judicial
proceedings, procedural rules governing service of summons are not strictly construed,
and substantial compliance thereto is sufficient
B. The action of the NLRC is invalid because no law empowers it to correct, amend, or
waive any error, defect or irregularity whether in substance or in the form of the
proceedings before it
C. The action of the NLRC is invalid for depriving a party of due process, thus any decision
rendered against that party is deemed ineffective
D. The action of the NLRC is valid as summons and notices of hearing are not strictly
required in labor proceedings

92. Peter North started working in Vivid Video Enterprises in January 1975, with a monthly
salary of Php 50.00, or below the minimum monthly wage prescribed by law then in force.
On December 31, 1981, however, the company started paying him in accordance with the
minimum wage law. In February 1982, he filed a claim with the Labor Arbiter for salary
differentials corresponding to the past seven years, i.e., 1975 to 1981. Decide.
A. Mr. North is not entitled to salary differentials because his money claims has already
prescribed when he failed to claim it within three (3) years from 1975
B. Mr. North is entitled to salary differentials covering four (4) years from December 31,
1981
C. Mr. North is entitled to recover salary differentials that accrued during the past seven
(7) years because it has already accrued in his favor
D. Mr. North is entitled to recover salary differentials, which fell due within three (3) years
from February 1982

93. After teaching in a university for eight (8) semesters (4 years), with a teaching load of 8 or 9
hours per week, Dr. B. was informed that his appointment would not be renewed. He filed a
complaint for illegal dismissal against the university. Decide.
A. Dr. B. was illegally dismissed because he was deprived of work without due process of
law
B. Dr. B. is considered a regular employee under the Manual of Regulations for Private
Schools and therefore his dismissal was illegal
C. Dr. B. did not have security of tenure, as he was merely a part-time faculty member
D. Dr. B. was not illegally dismissed because the university enjoys academic freedom in
choosing its instructors

94. Jose is employed on a probationary period for three (3) months. Although the employer is
not satisfied with his performance, he is allowed to work after the end of the three (3)
month period. Under the facts presented, which of the following statements is valid?
A. The probationary period being provided in the work contract between the employer and
employee, they are bound by its terms, and neither party may act on it unilaterally
without the consent of the other party
B. Probationary employment being less than six (6) months, the employment contract is
violative of security of tenure
C. Jose being employed on a probationary basis, he cannot qualify for regular employment
in a period of three (3) months
D. By allowing Jose to work after the expiration of the probationary period, the employer is
deemed to have approved of his qualifications for regular employment

95. Perez is hired by a textile firm as a weaving machine operator. The employment contract
with the company stipulates among others that the latter shall make an annual assessment
of his performance and his continued employment shall depend upon the said evaluation.
Which of the following statements is tenable?
A. Being engaged to perform an activity which is usually necessary or desirable in the
usual business or trade of his employer, Perez is considered a regular employee
B. The employment contract being the law between Perez and his employer, the annual
assessment of performance provided therein cannot be considered as undermining the
employee’s security of tenure
C. Perez cannot be considered as regular employee as his tenure is dependent on the
annual assessment of his performance
D. The annual assessment of performance is a valid exercise of management prerogative
and Perez cannot complain of illegal dismissal for failing the assessment
96. Lyric Theater Corp. issued a memorandum prohibiting all ticket sellers from encashing any
check from their cash collections and requiring them instead to turn over all cash
collections to the management at the end of the day. In violation of this memorandum,
Melody, a ticket seller, encashed five (5) checks from her cash collection. Subsequently, the
checks were dishonored when deposited in the account of Lyric Theater. For this action,
Melody was placed under a 20-day suspension and directed to explain why she should not
be dismissed for violation of the company’s memorandum. In her explanation, she admitted
having encashed the checks without the company’s permission. While the investigation was
pending, Melody filed a complaint against Lyric Theater for backwages and separation pay.
The Labor Arbiter ordered Lyric Theater to pay Melody Php 15,420.79 representing
separation pay and backwages. The NLRC affirmed the ruling of the Labor Arbiter. Under
the facts obtaining, which of the following statements is valid?
A. The finding of illegal dismissal is not proper where employer-employee relationship is
not severed
B. The decision of the Labor Arbiter having been affirmed by the NLRC on appeal, any legal
flaw in the findings of the Labor Arbiter is deemed cured
C. Melody being under investigation for insubordination, the appellate decision of the
NLRC affirming the Labor Arbiter’s decision is valid
D. Melody’s 20-day suspension constitutes illegal dismissal, as she was not afforded the
opportunity to be heard

97. Aramina was employed by Deepthroat Company to perform laundry service at its
staffhouse. While attending to her assigned task, she slipped and hit her back on a stone.
Unable to continue with her work, she was permitted to go on leave for medication, but
thereafter she was not allowed to return to work. She filed a complaint for illegal dismissal
but the company contended that Aramina was not a regular employee but a mere
househelp. Decide.
A. Engaged to perform laundry service, Aramina was a mere househelp and therefore did
not enjoy security of tenure
B. Aramina was a regular employee for performing laundry service at the company’s
staffhouse, which is desirable in its usual business operation
C. Aramina being a mere househelp, there is no employer-employee relationship between
her and Deepthroat Company
D. Aramina cannot be considered a regular employee, as laundry service is the work of
mere househelp, which not necessary in the business undertaking of the company

98. In May 1996, the Philippine Village Hotel closed and totally discontinued its operations due
to serious financial and business reverses; this resulted in the termination of the services of
its employees. The validity of the closure was upheld in a labor case filed by the union of its
employees. In February 1989, the hotel decided to have one (1) month dry-run to ascertain
the feasibility of resuming its business operations; for this purpose it hired some of its
previous workers for one (1) month period only. However, upon the lapse of the one (1)
month period, the hotel terminated their services. Under the circumstances, which of the
following statements is valid?
A. The termination was illegal considering that the employment for one (1) month is mere
continuation of the workers’ employment prior to the closure of the hotel in 1986
B. There is no illegal dismissal, as the workers did not enjoy security of tenure during the
one (1) month dry-rum employment
C. The termination was lawful the employment being for a fixed period of one (1) month
D. The hotel is in bad faith for employing previous workers during the one (1) month dry-
run period

99. Ruben, a security checker of a department store, was dismissed due to redundancy, as a
result of the abolition of the security section of the establishment. His services were
however terminated on the same day that he was given a notice of termination. Which of
the following statement is agreeable?
A. The dismissal being for valid cause, the absence of procedural due process entitles the
employee to indemnity as nominal damages
B. For want of procedural due process, the dismissal is deemed without valid cause and
therefore illegal
C. Notwithstanding the validity of dismissal for authorized cause, non-compliance with
requirements of notice under Article 283 of the Labor Code entitles the employee to
backwages from the time his employment was terminated up to the date of finality of
the decision declaring his dismissal valid
D. Non-compliance with requirements of notice under Article 283 of the Labor Code
entitles the dismissed employee to payment of backwages and separation pay in lieu of
reinstatement

100. Due to the expiration of its lease contract and the refusal of the lessor to renew the
same, the company relocated its printing business from Makati to Sto. Tomas,
Batangas. Its employees, despite notice, did not however report for work in the new
location considering the distance from their residences. They later on filed a complaint
for illegal dismissal against the company. Which of the following statement is
sustainable?
A. There is illegal dismissal for lack of both substantial and procedural due process
B. The company having a legitimate reason to relocate its plant, there is no illegal
dismissal, but the employees are entitled to payment of separation pay
C. Relocation of plant not being provided under the Labor Code, and notwithstanding
proper notice, there is no valid cause for employment termination, which renders
the dismissal illegal
D. The company having a valid ground to relocate its plant notwithstanding, the
employees are entitled to payment backwages and separation pay in lieu of
reinstatement

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