PART I: ESSAY been employed for the past three years have a fixed work

schedule from Monday to Friday 8 am-5pm, with lunch break

1. (Question 1: *inaudible voice*) between 12-1pm.
The policy is not valid. You cannot require/ oblige.
Otherwise it will violate the provision of the labor code that
prohibits the employer from interfering in the disposal of ones 1. At what minimum employable age can Mario hire his
wages. And after all, the employee is the owner of the wages then employees?
as the owner he has free disposal of his wages.
a) At 15 minimum age of employment
b) At 18 age of majority under the FC
c) At 21 age of majority under the CC
2. He will deduct P200 from the monthly salary of his employees d) No Age requirement
to recompense him for the value of the Jollibee meals and
Starbucks coffee He provide them everyday.

Atty: selling of native bags and hats is not considered a work

Atty:
In paying his employees we know the general that it has to be
paid in legal tender. However an exception arises when the
employer pays his employees partly in cash and partly in kind if
this kind qualifies as facilities, Now In this particular problem,
do this Starbucks coffee and Jollibee meals qualify as
facilities in the first place?
place of hazardous and deleterious in nature.
2. In the preceding set of facts is Mario under obligation to
pay his workers Holiday pay on August 6, 2013 which was
declared a Holiday in the province of Cebu if these workers
were made to work?

a) No. premium pay is due and not holiday

There’s nothing in the problem which indicates the pay
purpose so you cannot simply imply, deduce or infer that the b) No Mario is exempted from holiday pay having
purpose is for the benefit of the worker. Whether a commodity, less than 10 workers
goods or services will qualify as facility will depend on the c) Yes August 6 is a regular holiday and double
purpose. The problem is silent and therefore in case of doubt in pay is due to the worker
the silence of the purpose then at most you can qualify it as d) Yes no exemption from Holiday pay is allowed
supplements and not facilities. And even if they were facilities not
all the requisites for those facilities to be deductible from the Atty: August 6 is a Special Holiday, Premium pay is due and not
employees wage are present. Holiday pay.

There’s nothing in the set of facts that the value was fair
and reasonable, customarily given, consent of the employee in
writing was obtained by the employer that being the case the
policy is not valid. The employer cannot charge the employees to
decompensate for the value of meals given.
3. In the preceding set of facts if one of the Sales Lady is a
Qualified Solo Parent which of the following leave benefit
can she enjoy?

a) Parental leave
(How many points again? So you got 30 points so far) b) Paternity leave
3. Assuming that Digao pays all his employees an informed c) Vacation leave
daily wage of 250 pesos, is there a wage distortion? Why d) Bereavement leave
or why not?

Atty: Leave of Absence with Pay under the Solo Parents Welfare
Please discuss to me what the elements of wage Act is referred as letter A Parental Leave
distortion are. Of course there is no wage distortion here, because
there is no hierarchy of positions. It’s essentially a management
prerogative to pay his workers any amount as long as it is not 4. In the preceding set of facts, if one of the sales ladies
below the minimum wage. If there was any wrong in the part of undergoes surgery due to mastectomy requiring a
employer here it is because of underpayment of wages but recuperating period of 1 month for certification of a
definitely not wage distortion. Follow? So if I create an competent doctor for how many days will her paid leave
establishment and I want to pay all of them this much that is benefit be if any, assuming she has met the minimum
management prerogative. The only limitation is that I could not length of service.
pay them below the minimum wage. In the first place there was
no Wage Order even issued, but what was fixed was the salary
made by the employer. a) 1 month
b) 2 months
c) It depends on the company policy or practice
(Follow, so how many points? See very simple.) d) 7 days

5. Can Miguel use the floor wage method in fixing the Atty: Under the Magna Carta of Women, due to gynecological
compensation of his employees? Why or Why Not? disorder can enjoy a special leave benefit but duration of which
will depend on the certification of the physician. Not 2 months
because 2 months is the maximum.
In the first place floor wage method is a method not on
fixing compensation but on determining of wages. It is
determined by the Regional Director of Wages and productivity 5. In the preceding set of facts, will the messenger of
board, together with the salary ceiling method. So in this Mario be entitled to overtime pay if He renders work
particular case, Miguel cannot use the floor wage method because beyond 8 hours a day?
it is not method in fixing compensation. The method in fixing
compensation is found in article 97 which says that you could pay
your workers by 2x10, commission, base rate, and job or class a) Yes, the messenger is a time-based
basis. Payment based on floor wage method and salary ceiling are worker.
methods of determining wages and it is fixed not by the employer b) Yes, Mario has a compressed workweek
but by the Regional Tripartite Wages and Productivity Board. The c) No Mario has less than 10 workers
answer is no He can’t fix the wages. d) No Messenger is a field personnel.

PART II: MULTIPLE-CHOICE
Mario a single proprietor engaged in selling native bags
and hats in Lapu Lapu City, employing one male accounting clerk,
3 sales ladies and 1 male messenger. These workers who have
Atty: Facts stated that He (messenger) has a fix working time.
6. In the preceding set of facts is Mario obliged to pay his
workers 13th Month pay?

a) Yes, they are all rank in file workers
b) No, they’re compensation depends on the
number of native products sold.
c) Yes, they are paid minimum wage
d) No. Mario has less than 10 workers.
Atty: Based on the express provision of the Labor Code, the
correct answer is letter C. IF you are made to work on your
scheduled rest day; you get your basic wage. But since it is your
rest day, you get an additional compensation in a form of
Premium Pay of at least 30% of your regular wage.
12. If an employee works on Sunday which is not his
scheduled rest day, what compensation is he entitled to?

a) Regular Wage
Atty: 13th month pay law is applicable to all rank and files b) Premium Pay
employees, the fact that they are paid the minimum wage and c) Holiday Pay
that Mario’s workers are less than 10 does not exclude him from d) Sabbatical Pay
paying the 13th month pay.
Atty: Letter A. The Sunday is not the employee’s regular rest day.
Sunday is not always the regular rest day of a worker under the
7. In the preceding set of facts, what divisor may be used Labor Code.
by Mario in computing the equivalent monthly rate of his
workers?
13. What is the Premium Pay in which the employee is
entitled to if he works on a scheduled rest day which
a) 261 happens to be a Special Holiday?
b) 262 a) 30% Premium Pay
c) 313 b) 50% Premium Pay
d) 314 c) 100% Premium Pay
d) None

Atty: 5 days of work: Handbook of Dep. Of Labor suggests 261 as Atty: It’s letter B because it’s a Rest Day plus a Special Holiday.
the divisor; includes 12 regular holidays, 3 Nationwide Special
days and Ordinary working days.
14. From the decision or order of the Regional Director of
the Department of Labor and Employment, under Article
8. Is Mario obliged to provide his workers a weekly rest 129 of the Labor Code on Recovery of Simple Money
day? Claims, what is the reglementary period to appeal to the
NLRC?
a) Yes, work schedule consist of 8 hours a day
b) No Mario has less than 10 workers a) 15 days
c) No Mario only operates 5 days a week b) 10 days
d) Yes the workers are rank in file employees c) 5 days
d) None

Atty: Letter C, it’s 5 days.

Atty: The law provides that the obligation to provide a rest day is
only applicable if the work schedule is for 6 consecutive days.
15. The 13th Month Pay is equivalent to how much?

9. If the male accounting clerk is absent without leave on a) 1/12 of the monthly basic salary
August 8, 2013, Thursday, in order to extend his weekend b) 1/12 of the total basic salary earned during the
considering that Augsut 9 is Eidul Fitr. Will he be entitled month
to Holiday Pay? c) 1/12 of the total basic salary earned
during the year
a) Yes. Entitlement of Holiday Pay is a matter of d) 1 month salary
right for rank and file workers
b) No. He was absent on August 8, which Atty: Letter C.
precedes a regular holiday
c) No. Mario has less than 10 workers.
d) Yes. August 9 does not precede a regular 16. A machine operator in a tire company receives a daily
holiday. rate of Php400. IF he was required to work on May 1 for 8
hours, how much will he be paid?
Atty: What kind of business is Mario engaged in? Retail. Retail
establishments employing less than 10 workers are not required a) Php 327.00
to pay Holiday Pay. So, the correct answer is letter C. b) Php 400.00
c) Php 800.00
10. Vice Ganda is a professional make-up artist of a famous stage d) None
actress. He is paid a weekly pay of P2, 000. When his employer
has a performance, Vice Ganda has to work even during regular Atty: Under the Labor Code, if you work on a regular holiday, you
holidays. However, when there are no performances, he does not will be paid twice or double. So, 400 multiplied twice. The correct
work at all but is still paid. Can Vice Ganda claim payment of answer is letter C.
Holiday Pay?
a) No. Vice Ganda is in the personal service
of an employer 17. What is the minimum number of employees in an
b) No. Vice Ganda is a self-employed individual establishment to allow it to pay its workers wage through
c) Yes. Vice Ganda is a rank-and-file employee ATM?
d) Yes. Holiday Pay is due even no work is a) 15 or more
rendered. b) 25 or more
Atty: Correct answer is letter A. Under Article 82 of the Labor c) 20 or more
Code, persons in the service of another are excluded from d) None
entitlement of Holiday Pay among other labor standard benefits. Atty: Under the Rule the correct answer is letter D. There is no
need for a number of workers in payment through ATM. It is the
payment through bank that requires the minimum number of
11. In addition to the regular pay, what other benefit is paid to employees.
employees who work on their scheduled rest day?

a) Premium Pay equivalent to 25% of the regular

wage 18. Which of the following employees are entitled to 13th
b) Premium Pay equivalent to 20% of the regular month pay?
wage a) Those paid purely on commission
c) Premium Pay equivalent to 30% of the b) Those paid on piece-rate basis
regular wage c) Those paid on job or task basis
d) Premium Pay equivalent to 50% of the regular d) Those paid on boundary basis
wage
Atty: Correct answer is letter B. Those paid in piece-rate basis.
Because those paid on commission basis are excluded, the same
with boundary based, or job or task based. Those paid on piece-
rate basis is the exception to the exception.
19. How much is the retirement pay under the Labor code?
a) ½ Month salary for every year of service
b) 1 Month salary for every year of service
c) 15 days salary for every year of service
d) 20.5 days salary for every year of service
Atty: Based on the express provision of the Labor Code the
correct answer is Letter A.
20. Greg is an elementary teacher in a private school. His
hours of work a day is from 8am to 5pm with 1 hour lunch
break. If Greg is required to perform an overtime load or
extra work within his regular hours of work, will an
additional pay be considered in computing his 13th month
pay?
a) No. Such overload or extra pay is
excluded it being similar to overtime pay.
b) No. Such overload or extra-pay does not
constitute compensation.
c) Yes. Such overload or extra pay is considered
wage.
d) Yes. Such overload or extra work is performed
within his regular tour of duty.
Atty: Based on the Supreme Court case, the correct answer is
Letter A. In computing the 13th month pay, ½ of the total BASIC
salary earned. And the law defines basic salary as excluding
allowances, premium pay, overtime pay, etc. Supreme Court said
overload is similar to overtime, therefore, excluded in the
computation.
21. How many regular holidays are deemed paid when an
employer uses a 313-day divisor in computing an
employee’s equivalent monthly salary?
a) 10 regular holidays
b) 11 regular holidays
c) 12 regular holidays
d) 15 regular holidays and special holidays
Atty: Of course the answer is letter C. I am only testing whether
you know how many regular holidays are there.
22. How many years is an employer required to keep an
employees’ payroll and time records?
a) At least 3 years from the date of last entry
b) At least 3 years from the date of hiring
c) At least 3 years from the date of separation or
termination
d) For as long as the employer operates his
business
Atty: This is on the discussion on the topic of maintenance of
payroll and other time records. The IRR will tell you that the
correct answer is letter A.
23. What is the remedy of an employer for an adverse
notice of inspection results issued by the Regional Director
of DOLE under Article 128 of the Labor Code?
a) Appeal the notice of inspection result to the
Secretary of the Department of Labor
b) Appeal the notice of inspection results by
raising issues supported by documentary
proofs which were not considered in the
course of the inspection
c) Motion for Reconsideration to the Regional
Director of the Department of Labor and
Employee
d) Contest the notice of inspection result by
raising issues supported by evidentiary proof
which were not verifiable in the course of the
inspection
Atty: So were talking here about the Visitorial and Enforcement
Power and its Remedies. The correct answer is letter B.
24. A multi-million manufacturing company operating since
1980 in Mandaue City pays its rank and file production
workers uniformly by the month irrespective of the number
of days worked therein. It operates 48 hours a week from
Monday to Saturday. Can the employer validly re-classify their
work daily-paid employees?
a) No. It will violate the principle of non-
diminution of benefits
b) Yes. Employees are considered daily-paid
workers
c) No. The production workers are considered as
field personnel
d) Yes. It is a management prerogative.
Atty: The correct answer is letter A. You paid them 365 days
multiplied by daily rate divided by 12 months, and then you re-
classify it into daily wage multiplied by 313 divisor, divided by 12.
Of course it will be lesser. IT will violate the principle of non-
diminution of benefits. Especially here where they were classified
as monthly-paid workers.
25. In the same set of facts, can the employer use a 313
divisor to compute the Overtime Pay of its workers to come
up with a higher overtime pay?
a) No. It will violate the principle against non-
diminution of benefits
b) Yes. Employees will be paid much higher
c) No. It will violate the employment contract
d) Yes. 313 factor is used to pay monthly-paid
workers
Atty: The correct answer is letter B. Even though you are
classified as monthly-paid worker, if your divisor is lessened for
the purpose of paying your employees higher Overtime Pay as it
is mathematically, then there is nothing wrong in being more
generous. The principle against non-diminution of wages prohibits
the reduction of ones pay but does not prohibit the employer from
being generous and from giving more.
26. When may the DOLE order the stoppage of operation of
an establishment?
a) When the establishment employs children
below 18 years old without consent of parents
b) When the establishment is engaged in
hazardous undertaking without labor permit
c) When the establishment is deleterious in
nature and employs minors
d) When so ordered by the RTWPB
Atty: Under the applicable Department Order, the correct answer
is letter C. If the establishment is employing prostitutes for
example who are minors. Right then and there they can order the
stoppage of operation. Close first before they will hear you. This is
an example of the use of Police Power.
27. When a labor legislation is enacted to regulate a
business, profession or calling to insure respect for the
dignity of workers. It underscores what constitutional
principle?
a) Police power
b) Protection to labor
c) Equal protection
d) Social justice
Atty: Power to regulate or restrict liberty or property. That’s
police power.
28. When a worker is unjustly deprived of his monetary
benefits by existing labor legislation, it violates the
worker’s right to?
a) Due process
b) Equal protection
c) Non-impairment of contracts
d) Social Justice
Atty: Letter A. No person shall be deprived of life, liberty and
property without due process of law. Congress cannot enact a law
that will for example require employers to pay their workers
below the minimum wage because that will unjustly deprive the
workers their rights without due process of law.
29. Juan is paid commission for selling Marlboro cigarettes
to certain retail outlets in Mandaue City at a fix price, and
using a company-owned delivery truck.
a) He is an independent contractor since he is
paid for the sales that he makes
 b) He is an employee being under the control
of another person
c) He is an agent who is made to render service
for a fee
d) He is self-employed
Atty: Juan is paid commission. Being paid in commission is one of
the methods in fixing compensation. Look, he has to sell Marlboro
and no other products. And, he has to sell on certain outlets in
one particular location, that’s Mandaue City. So, there must be
somebody dictating upon him on the means and manner of
performing his job. So the correct answer is letter B.
30. Due to lack of facilities for women, the employer
considers its female employees as separated from work if
they get married
a) Valid. Providing for facilities is management
prerogative.
b) Not Valid. It denies equal employment
opportunities for women on account of
sex
c) Valid. The employer is not discriminating in
account of one’s marriage.
d) Not Valid. It violates the right to humane
condition.
Atty: Correct answer is letter B.
31. Which of the following is a type of Meliorative Labor
standard?
Atty: If you read RA 6272 otherwise known as the Wage
Rationalization Act, the correct answer is letter C.
36. The RTWPB of Region 7 denied a retail establishment
which applied for exemption under Wage Order No. 17
although it employs less than 10 workers. Does the
applicant have any remedy?
a) Yes, it may appeal to the NWPC
b) No, there is no appeal on denial of exemption
c) Yes, it qualified for exemption and may ask for
reconsideration
d) No, exemption is not allowed
Atty: You cannot assume that you are exempted. You have to
apply for it. In case you are denied, the remedy is to appeal to
NWPC.
37. If a Wage Order is issued by the RTWPB fixing the
minimum wage, it generally applies to?
a) All workers across the board
b) All workers receiving minimum wage
c) All workers receiving below the
prescribed minimum wage
d) All workers receiving above the minimum wage
Atty: The correct answer is letter C. The Wage Order is
prescribing a minimum wage hence it needs adjustment. Among
the options it is those receiving below the prescribed minimum
wage will be adjusted and be benefited by the same.

a) Work Hours
b) Rest Day 38. In the exercise of what power does the Regional
c) Profit Sharing Director of the Department of Labor and Employment is
d) Rest Period allowed to award an employee more than Five Thousand
Atty: The correct answer is letter C. It speaks about money. Pesos for non-compliance of Labor Standard?
Meliorative labor standard is intended to expand the flow of a) Visitorial and Enforcement Power
income or benefits of a workingman that are required for a decent b) Administrative Power
living. c) Quasi-judicial power
d) Quasi-legislative or rule-making power

32. When a wage distortion occurs in an organized Atty: There are 2 enforcement tools; Article 128 and 129. Now,
establishment, which has the jurisdiction to resolve the which power applies where the Regional Director can award more
same ultimately? than 5, 000? It’s Visitorial and Enforcement Power. There’s no
limitation as to the amount.
a) Voluntary Arbitrator
b) Labor Arbiter
c) Secretary of DOLE 39. Juan is given 10 hours of work each day to produce at
d) RTWPB least 1, 000 pieces of properly wrapped Mentos candy, and
Atty: The correct answer is letter A. IF it were an unorganized is paid by the number of such pieces.
establishment, the jurisdiction should have been reposed to the a) Juan is a piece rate basis worker
Labor Arbiter. But here, it is an organized establishment. b) Juan is a time-based worker
c) Juan is a job-based worker
d) Juan is a commission-based worker
33. What agency of the government issues rules of
procedure in fixing wages? Atty: Correct answer is letter B. Juan is a time-based worker.

a) NWPC 40. What is a distinctive feature of a worker who is paid on

b) RTWPB a piece rate basis?
c) DOLE
d) NCMB
a) Fixed work period is prescribed
Atty: Who promulgates the rules of procedure? IT’s NWPC b) Absence of control
c) Exercise of independent judgment
d) Freedom as to hours of work
34. Peter is a 15 year-old house boy working for the family
of Juan n Cebu City. Is he entitled to a statutory minimum
wage? 41. A carpenter works for a large poultry farm and does
a) Yes, at least P327 per day. regular repair of the sheds housing the chickens. The wage
b) No, he is excluded from the statutory rate applicable to him is?
minimum daily wage
c) Yes, because an employer-employee
relationship exists a) Agricultural wage rate
d) No, he is a free artisan b) Non-agricultural
c) Piece rate
Atty: The correct answer is letter B. Those domestic workers are d) Job or Task Rate
given monthly minimum wage standard and not daily minimum
wage standard.
42. A group of 10 workers who is hired to construct a
house under a “pakyaw” basis is expected to finish the
35. A wage distortion arose due to the issuance of Wage same in three months. How frequent shall these workers
Order No. 17 in Region 7, what is the primary mode of be paid?
setting wages?

a) Through grievance machinery

b) Through voluntary arbitration a) Once every two weeks in proportion of the
c) Through collective bargaining amount of the work completed
d) Through compulsory arbitration b) After the work is finally completed
 c) At intervals not exceeding 16 days
d) Once a week equivalent to the number of days
work
43. Due to the temporary lack of funds the employees were
not paid on time. Is there a criminal violation?
d) No, there are less than 10 employees
50. How much additional compensation is given to health
personnel in health clinics with bed capacity of 20 and
located in a fourth class Municipality with a population of
10,000 if they work on the 6th day?

a) At least 30% of their daily wage

a) Yes, there is unlawful withholding of wages b) At least 25% of their daily wage
b) No, the nonpayment of wages is neither c) At least 20% of their daily wage
retaliatory nor actuated by an unlawful d) None
purpose
c) No, there is no period to pay the wages.
d) Yes, the excuse is not valid and justified.

*fin*
44. A taxi company deducts 50 pesos per driver per shift
without the latter’s consent to maintain a deposit from
which the driver may obtain a loan.

a) Valid it’s for the benefit of the driver

b) Not valid such arrangement is prohibited by
law
c) Not valid there is no consent
d) Valid 50 pesos is a reasonable amount.

45. In paying the workers wage through the ATM whose

consent is needed?

a) Individual worker concerned

b) Majority of the workers
c) All of the workers
d) None of the above

46. What condition is required for an employer to pay its

workers’ wages through any commercial or savings banks?

a) Written permission of individual worker

concerned
b) Written permission of majority of the
workers
c) Written permission of all the workers
d) At least 20 percent of the workers concerned.

47. By practice the Company pays its workers’ wages due

for 8 hours although its work shift is only 7 hours a day.
Can it increase the working hours without increasing the
pay?

a) Yes, under the principle of “no work no pay”

b) No, overtime is after 8 hours of work.
c) No, it will violate the principle against
diminution of benefits
d) Yes, there must be proof of actual work.

48. By practice the company pays its workers’ wages due

for 8 hours although its work shift is only for 7 hours a day.
Due to increase of production the workers were made to
work for additional 2 hours. Are they entitled to overtime?

a) Yes, for extra 2 hours

b) Only overtime for extra 1 hour
c) No, Normal working hours is 8 hours
d) No, there must be proof of actual work

49. Gloria is a clerk typist in a catholic private charitable

institution with less than 10 employees that subsist on
donations and voluntary contributions. Is she entitled to
holiday pay?

a) Yes, the law covers non- profit institutions.

b) No, the institution is not for profit.
c) Yes, donations are considered income.