LABOR LAW

PRACTICE EXAM 1
SUGGESTED ANSWERS
1.

Yes. The payments made to the SSS can be transferred to the

GSIS. Under RA 7699, otherwise known as the Portability Law,
one may combine his years of service in the private sector
represented by his contributions to the SSS with his government
service and contributions to the GSIS. The contributions shall be
totalized for purposes of old-age, disability, survivorship and
other benefits.

2.

A) Yes. The employees are allowed to self-organize under Article

III(8) and XIII(3) of the Constitution which recognize the rights of
all workers to self-organization. They cannot however demand for
better terms for the same are fixed by law and their salaries are
standardized by Congress.
B) No. Since the terms and conditions of government
employment are fixed by law, government workers cannot use
the same weapons employed by the workers in the private sector
to secure concessions from their employers.

3.

The Doctrine of Necessary Implication states that While Art. 245

of the Labor Code singles out managerial employee as ineligible
to join, assist or form any labor organization, under the doctrine
of necessary implication, confidential employees are similarly
disqualified. Every statute is understood, by implication, to
contain all such provisions as may be necessary to effectuate its
object and purpose, or to make effective rights, powers,
privileges or jurisdiction which it grants, including all such
collateral and subsidiary consequences as may be fairly and
logically inferred from its terms.

4.

The action of the workers against IBP will not prosper. It is true
that the Labor Code provides: In the event of bankruptcy or
liquidation of an employer's business, his workers shall enjoy first
preference as regards their wages and other monetary claims,
any provisions of law to the contrary notwithstanding. Such
unpaid wages and monetary claim shall be paid in full before
claims of the government and other creditors may be paid. But,
here, the mortgaged property is no longer owned by SJTC. The
first preference of the workers can only be enforced against the
judgement debtor, meaning SJTC, and not against IBC who now
owns the mortgaged property which has been fore- closed.
(Development Dank of the Philippines vs. Minister of Labor and

Employment, et al.. G.R. No. 75801, March 20,1991)

5.

In this 2014 case, the Supreme Court ruled that the Labor Arbiter,
not the regular courts, has original jurisdiction over the illegal
dismissal case filed by petitioner Cosare who was an
incorporator of respondent Broadcom and was holding the
position of Assistant Vice President for Sales (AVP for Sales) at
the time of his termination. The following justifications were cited
in support of this ruling:
(1) The mere fact that a person was a stockholder and an
officer of the company at the time the subject controversy
developed does not necessarily make the case an intra-corporate
dispute.
(2) A person, although an officer of the company, is not
necessarily a corporate officer thereof.
(3) General Information Sheet (GIS) submitted to SEC
neither governs nor establishes the nature of office.
(4) The Nature of the Controversy Test: The mere fact that a
person was a stockholder at the time of the filing of the illegal
dismissal case does not make the action an intra-corporate
dispute.

6.

a) Yes, There was a valid election. The Labor Code requires that
for a certification election to be valid, at least a majority of all
eligible voters in the unit must have cast their votes. (Article 256,
Labor Code) Here, the number of eligible voters was 800. Seven
hundred (700) or more than a majority voted. Thus, the election
was valid.
b) No union could be certified as bargaining representative of
employees. To be certified, a labor union should receive a
majority of valid votes cast of at least a majority of the 800 votes
cast which should be 401 votes. (Article 256, Labor Code) The
union obtaining the highest number of votes is Union A. It
obtained only 200 votes, short of the majority by 201 votes.
c) A new election should be conducted, but the Labor Code
provides that it should be an election not at all the four unions

who participated in the election but a run-off election where only

the labor unions receiving the two highest numbers of votes will
participate. This run-off election can be held because in the
earlier election, the total number of votes for all the contending
unions was at least fifty percent (50%) of the number of votes
cast. Here. 450 votes or more than a majority of the 800 votes
cast, were votes for all contending unions. (Article 256, Labor
Code)
d) Here, the total number of votes cast was 700 votes. Union A
can not be certified as bargaining representative. It did not get
the majority of the valid votes cast, namely 351 votes. Union A
got only 300 votes.
7.

"Night worker" means any employed person whose work covers

the period from 10 o'clock in the evening to 6 o'clock the
following morning provided that the worker performs no less than
seven (7) consecutive hours of work.
When women nightworkers become pregnant, measures shall be
taken to ensure that an alternative to night work is available to
them but they may still be allowed to work at night ONLY IF a
competent physician other then the companys physician certifies
their fitness to render night work.

8.

Katrinas objection is justified.

Having enjoyed across-the-board bonuses, she has earned a
vested right. Hence, none of them can be withheld or reduced. In
the problem, the company has not proven its alleged loss to be
substantial. Permitting reduction of pay at the slightest indication
of losses is contrary to full protection to labor.
As to the productivity-based bonus, she is deemed to have
earned them because of her excellent performance ratings for 3
quarters. This would violate non-diminution of benefits.