San Sebastian College Recoletos

COLLEGE OF LAW
Surigao City Extension
LABOR LAWS II
FINAL EXAMINATION
June 8, 2021
Atty. Alfonso S. Casurra
Professor
____________________________________________________________
(Write your answers in your test booklet)

I.
Pedro, the Chief Chemist of a cement company was found to have altered
the chemistry report in the production of cement bags for export to the United
States in order to comply with the ISO requirement. It resulted in the
cancellation of a number of cement orders and company’s embarrassment. For
the said offense, Pedro was dismissed from the service immediately, which he
contested as being arbitrary and in gross violation of his right to due process.
Under the given situation, is the dismissal of Pedro valid? Why? If not, what
relief, if any, will Pedro be entitled to? Explain your answer.

II.
The Labor Arbiter ruled in favor of a dismissed employee and ordered his
reinstatement from the service without loss of seniority rights and payment of
back wages.

1) Under the given situation, what are the two options which the
employer may choose, to comply with the aspect of
reinstatement?

2) In the event that reinstatement is no longer feasible, what if any,

would be the alternative relief to the dismissed employee?

3) If separation pay is the alternative relief, how should it be

computed?

4) With respect to the award of back wages, what rate shall be

based in computing the said benefits?

5) In computing the back wages, aside from the monthly basic

wage rate, what other benefits will be included in its
computation?
 III.
A plywood company dismissed 50 of its employees due to
business losses. The audited financial statements for the past 3 years showed a
decrease in net income and increase in company’s liabilities. It was the
contention of the company that the decrease in the net income was primarily due
to low market demand, ban on the cutting of trees, lack of raw materials, frequent
breakdown of old equipment and the high cost of operations. In fact, it had to
implement a rotation scheme to cope up with its daily operations. Is the dismissal
of the workers justified? Why? Explain your answer.

IV.
After 20 years of serving as Pollution Control and Safety Officer, Pedro
was dismissed by his employer for redundancy. Although his position is a
mandatory position pursuant to law, the company adopted a new staffing pattern
for which his duties and responsibilities were now absorbed by the Engineering
Manager of the company. He was already 60 years old which was considered the
mandatory age for retirement in the said company. Is the dismissal of Pedro
valid? Why? If his dismissal is not valid, will Pedro be entitled to reinstatement
and back wages? Why. Explain.

V.
Mario, a room boy at the Hotel Tavern for ten (10) years was dismissed
by the management after the security guard caught him bringing out of the hotel
premises, the hotel room’s bath towel. Upon investigation he readily admitted
the offense, defending however that he merely intended it to be taken home for
his personal use. For the said act, the services of Mario was terminated. Was the
dismissal valid? Why? Explain your answer.

VI.
Pedro was convicted of the crime of homicide while he was an employee
of a cement plant. The mitigating circumstance of incomplete self- defense and
voluntary surrender were considered in his favor. The crime was committed
while he was at his residence and not within company premises. Nevertheless,
he was dismissed from the service based on the company rule which
provided that an employee convicted of a crime involving moral turpitude may
be dismissed from the service. Pedro’s contended that the crime of homicide is
not an offense involving moral turpitude and the fact that the ground is not
among those enumerated in Art. 297 of the Labor Code and neither can the
same be deemed an analogous cause to that which are provided therein. Decide
the case with reasons.
 VII.
During the collective bargaining negotiations, Parola Arrastre and
Stevedoring Company, offered a wage increase of Php 10.00 per day to the
covered employees and rejected all the other demands of the union. The Union
filed a Notice of Strike based on Unfair Labor Practice citing the company to
have acted in bad faith. Since the company’s offer was not acceptable to the
members of the union, it filed a Notice of Strike on April 1, 2021. On April 15,
2021, it conducted a strike vote, and the results submitted to the NCMB later in
the afternoon. On April 17, the union declared a strike.

1. Was there a valid ground for the union to go on strike?

2. Assuming that the strike was peaceful and orderly,

was it legal from the very beginning? Why? Explain
your answer.

3. If not, what would happen to all the employees who

participated in the strike? Explain you answer.

VIII.
Due to a deadlock in collective bargaining, the Parola Labor Union, staged
a strike against the Parola Arrastre and Stevedoring Company. Subsequently, two
cases were filed by the company against the union for damages and to declare the
strike illegal, while the union filed a counter-complaint for unfair labor practice
and damages. The DOLE Secretary then assumed jurisdiction over the labor
dispute and ordered the consolidation of the three cases before him. Despite the
issuance of the assumption Order, Union members continued to go on strike
citing, that no categorical return to work was included in the assumption order.

1. Was the assumption of the DOLE Secretary over the

labor dispute justified? Why?

2. Was the reason for the refusal to return to work by the

striking union justified?

3. In the event that the strike is declared illegal, what will

happen to the employment status of all the members
who participated in the said illegal strike?

IX.
Mario was declared disloyal by his Union after it was found out after full
and exhaustive investigation that he was one of those responsible for the
formation of a rival union. He was expelled from the Union, and was the sole
basis for his dismissal from the service, pursuant to the closed shop agreement of
the existing CBA. Mario contested his dismissal, citing that the cause thereof,
is not among the just causes provided by the Labor Code. Is the position taken by
Mario correct? Why? Explain your answer.
 X.
Mario was dismissed from his work. He filed a case for illegal dismissal
against his employer before the Labor Arbiter for which a Decision was rendered
declaring the dismissal illegal and directed Mario’s immediate reinstatement
with payment of back wages, computed from the time he was dismissed up to the
time of his actual reinstatement. Management thereafter appealed the decision
before the National Labor Relations Commission on the 10 th day after receipt of
the Decision If you are the lawyer of Mario, what action will you take, to have
the Decision implemented, since management was able to file an appeal on time?

On the other hand, if you are the lawyer for management, what crucial
issue will you take to be sure that your appeal has been duly perfected? In the
event, that your client refuses to comply with actual reinstatement, what option
if any, is still available to your client?

XI.
Upon compliance with the legal requirements on the conduct of a strike,
Parola Labor Union (PLA) staged a strike against Parola Stevedoring Services
Inc. on account of a collective bargaining deadlock. During the strike, some
members of the Union broke the windows and punctured the tires of the
company-owned buses. The Secretary of Labor and Employment assumed
jurisdiction over the labor dispute. Majority of the union members together with
the union officers did not return to work claiming that (a) the assumption order
is illegal since the company is not engaged is an industry indispensable to the
national interest and (b) that the assumption order did not include a Return To
Work Order.

1. Is the contention of the union with merit? Why? Explain fully your
answer.

2. If all striking employees decide to return to work will they admitted

back to include those striking workers who damaged
company premises?

3. Will the company be justified if it readmit all the strikers only

through payroll reinstatement? Explain fully your answer.
 XII.
Mario, is a basketball coach with five years of experience in his field.
Before the start of the basketball season of 2020, he was hired for the sole
purpose of overseeing the training and coaching of the University’s Mens
Basketball Team. during his hiring, the VP for Sports Development expressed to
Mario, the university’s expectation that he should bring the University a
championship at the end of the season.

In his first basketball season, the University placed 8 th out of 10

participating teams. Soon after the end of the season, the VP informed Mario that
he was a mere probationary employee and hence, he need not come back for the
next season because of the poor performance of the team. Further, he claimed
that Mario was fixed-term employee whose contract ended at the close of the
year.

1. Is Mario a probationary, fixed-term or regular employee? Explain

your reasons as to why he is or he is not such kind of any
employee for each of the types of employment given.

2. Assuming that Mario’s services was terminated on the ground of

him being merely a probationary employee, can he be
dismissed right away, on the ground did not meet the
expectation of the University? Explain your answer.

XIII.
Due to serious business reverses brought about by the COVID 19
pandemic, the company decided to terminate the services of several officers
receiving fat compensation packages. One of these officers was Pedro, its VP for
External Affairs and a member of the Board of Directors. Aggrieved, Pedro filed a
complaint for illegal dismissal before the Labor Arbiter. The company moved for
the dismissal of the complaint on the ground of lack of jurisdiction, asserting that
since Pedro occupied the position of the VP for External Affairs, which is listed in
the By-laws of the corporation, the case should have been filed before the
Regional Trial Court. The Labor Arbiter denied the company’s motion and
proceeded to rule that Pedro was illegally dismissed. Hence, he was reinstated in
the company’s payroll pending appeal to the National Labor Relations
Commission.

1. Did the Labor Arbiter err in denying the Motion to Dismiss of the
company on the ground of lack of jurisdiction?

2. Assuming that jurisdiction is not at issue and the NLRC reverses

the Labor Arbiter’s ruling of illegal dismissal with finality,
may the company claim reimbursement for the amounts paid
to Pedro during the time that he was on payroll reinstatement
pending appeal. Explain.
 XIV.
Maria, a cashier in one of the malls in the city was tested positive for
COVID 19 SARS virus after the confirmatory tests conducted upon her. Due to
the confidential nature of her position, the mall management dismissed her on
the ground that she is suffering from a disease that is detrimental to the health of
her co-employees, as well as for loss of breach of trust and confidence. Maria
sought your legal assistance to contest her dismissal. How would you argue the
case for Maria? Explain your answer.

XV.
Mario, Maria and Pedro, brother and sisters, all of whom are single,
owned and managed the biggest hotel in the city which they inherited from their
deceased parents and which has been in the business for more than 40 years.
Due to serious business reverses and losses brought about by the COVID 19
pandemic, they decided to close the hotel altogether.

1. As their counsel, what legal steps will you take prior to its closure?

2. Are the employees entitled to separation pay?

3. What, if the ground for the closure is due to old age of the brothers
and sisters, will the law allow it to be considered an
authorized cause for its total closure?

4. Will the employees be entitled to separation pay based on the said

ground stated above? Explain your answer.

XVI.
Berto has a bad temper and in his work as Division Manager of Parola
Stevedoring Services, Inc., frequently loses his temper with his staff. One day he
physically assaults one of his staff by slapping him on the fact. The Staff member
sues him for physical injuries, and a case was filed in court. On the basis of this
incident, management decided to terminate the services of Berto after receiving
the copy of the Information of the case filed, citing loss of trust and confidence
as well as the commission of an offense by an employee against his
representative. Rico filed a complaint for illegal dismissal asserting that he has
been dismissed without just cause and due process. In fact, he argued that he is
entitled to the constitutional right to the presumption of innocence because he
has not yet been convicted.

1. Are the grounds relied upon by management proper to

immediately terminate the services of Berto? Why? Explain
your answer.
 2. Suppose, there is a just cause for termination, will the dismissal be
considered legal in the absence of due process? What, if any,
will Berto be entitled to? Explain your answer.

3. Suppose in the above situation, the staff employee took no action

against Berto, but just the same, management terminated his services merely on
the basis of the occurrence of the said slapping incident. Berto was afforded due
notice and hearing. Will the said dismissal be considered as legal? Why?
Explain your answer. If your answer is in the negative, will Berto still be entitled
to any relief?.

XVII.
Lucy filed a case of illegal dismissal against her employer. The Labor
Arbiter decided in her favor, and declared the dismissal as illegal. Considering
however, that during the trial, the Labor Arbiter have found that the relationship
between Lucy and her employer was already strained, the Labor Arbiter ordered
Lucy to be paid separation pay instead of reinstatement. Management appealed
the Decision arguing the dismissal was legal. Lucy aggrieved by the said Decision,
appealed the Decision citing among others that she should be reinstatement to
her former position instead of the relief of separation pay considering that she
has been only five (5) years in the employ of management.

1. Suppose the appeal of the management is denied, and the appeal of

Lucy is granted by the Supreme Court only after the lapse of
10 years of litigation, and reinstatement to her position and the
payment of full back wages has become final and executory,
how will the back wages be computed.

2. Suppose management offers a settlement of just paying separation

pay considering that the position is no longer existing, but
with no payment of back wages, will this offer be considered a
legal offer? Why? Explain your answer.

3. Can management also offer that instead of reinstatement, it will

just pay separation pay plus the payment of Lucy’s back
wages? If so, how will the separation pay be computed? Explain
your answer.

4. Suppose, Lucy has reached, the retirement age, can she be entitled
to back wages even if the position is no longer existing? What
if management offers to pay separation pay, and back wages,
but not retirement pay, will the said offer be considered legal?
Why? Explain your answer.
 5. Suppose, Lucy was already working in another establishment,
during the entire duration of the case, and management
offers to pay back wages less whatever salary and benefits Lucy
received from her new employer, will this be considered a legal
offer? Why? Explain your answer.

XVIII.
State the requirements before an employer can legally terminate the
services of an employee based on:

1. Authorized causes provided under Art. 298, of the Labor

Code;

2. The amount, if any, to be paid on the grounds of:

(2.a.) installation of labor saving device,

(2.b.) redundancy,
(2.c.) retrenchment,
(2.d.) closure not based on serious business losses or
financial reverses,
(2.e.) closure due to serious business losses or financial
reverses.

XIX.
1. What are the accepted tests to determine the existence of an
employer-employee relationship?

2. Applying the tests to determine the existence of an employer-

employee relationship, is a jeepney driver operating under the boundary system
an employee of his jeepney operator or a mere lessee f the jeepney. Explain your
answer?
XX.
1. State in your own words the provision in the Labor Code, which
mandates, that in all stances, the employee is entitled to his constitutional right
of security of tenure?
2. What are the two-folds aspect of due process in labor proceedings?
State the same in your own words and understanding.
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Good Luck to All.