LabRel Finals 2014.ATTY.

PJUsita
I. True or False. Explain your answer briefly.

1. Deeds of release, waivers and quitclaims are always valid and binding.

False. The requisites for a valid quitclaim are: 1) the employees executes the deed of quitclaims voluntarily; 2) that
there was no fraud or deceit on the part of any of the parties; 3) that the consideration for the quitclaim is credible
and reasonable; and 4) that the contract is not contrary to law, public order, public policy, morals or good customs
or prejudicial to a third person with a right recognized by law. If the deed of release, waivers and quitclaims did
not comply with the requisites, it is not valid.

2. When there is a bargaining deadlock, a notice of strike may be filed by any legitimate labor organization in
the employer’s business.

False. In case of a bargaining deadlock, only a certified or duly recognized bargaining representative may file a
notice of strike.

3. The substitutionary doctrine prohibits a new collective bargaining agent from repudiating an existing CBA.

True. The employees cannot revoke the validly constituted collective bargaining contract with their employer by
the mere expedient of changing their bargaining agent. The new agent must respect the contract. The new
agent may, however, bargain for the shortening of said expiration date.

4. The Secretary of Labor may, based on his sound discretion, certify a labor dispute to the National Labor
Relations Commission for compulsory arbitration.

True. When there exists a labor dispute causing or likely to cause a strike or lockout in an industry indispensable
to the national interest, the Secretary of Labor may certify the dispute to the NLRC. This power of certification is
in the nature of police power measure.

5. A runaway shop is an act constituting unfair labor practice.

True. Runaway shop is an ULP practice of management which usually takes place by effecting the transfer of
ownership, the plant itself, or its equipment, or by temporarily closing its business purposely to bust the union
or to evade the payment of legitimate obligations.

6. The employer must observe both substantive and procedural due process when dismissing an employee
based on a just cause. If procedural due process is not observed, the dismissal will be regarded as an abuse of
employer’s discretion which renders the dismissal ineffectual.

False. When dismissal is for a just cause but due process is not observed, the dismissal should be upheld.
However, the employer is liable for indemnity in the form of nominal damages for non-compliance with the
procedural requirements of due process.

II. Assume that you are now a full-fledged lawyer. Your first would-be clients come to your office and consult
you on the following legal matters. Discuss briefly and completely what would you tell them.

1. How a legitimate labor organization becomes an exclusive bargaining agent.

A legitimate labor organization may become an exclusive bargaining agent either by certification election,
request for sole and exclusive bargaining agent (SEBA) certification, and consent election.

2. How to legally and validly retrench employees.

An employer may retrench employees by serving a written notice on the workers and the appropriate Regional
Office of DOLE at least 30 days before the effectivity of the termination, specifying the ground or grounds for
termination.

A separation pay equivalent to 1 month pay or at least ½ month pay for every year of service, whichever is
higher, must also be given to the employee.

3. The kinds of separation pay based on law and jurisprudence.

a. In lieu of reinstatement in illegal dismissal cases, where the employees is ordered reinstatement but
reinstatement is not feasible;
b. As employer’s statutory obligation in cases of legal termination due to authorized cause under Arts. 297
and 298;
c. As financial assistance, as an act of social justice and even in case of legal dismissal under Art. 296; and
d. As employment benefit granted in CBA or company policy.
4. When does a CBA take effect?

It depends.

If the CBA is the first in the bargaining unit, it takes effect on the day agreed upon by the parties.

If the CBA is a renegotiated CBA and renegotiation was finished and new CBA is concluded 6 months from the
date of the old one, the new CBA is subject to automatic retroaction to the day immediately following such date
of expiry.

On the other hand, if the CBA was completed beyond 6 months, the new CBA will retroact according to the
agreement of the parties.

5. The original and exclusive jurisdiction of the Labor Arbiters.

a. Claims for actual, moral, exemplary and other forms of damages arising from the employer-employee
relations;
b. Unfair labor cases;
c. If accompanied with a claim for reinstatement, those that workers file involving wages, rates of pay,
hours of work and other terms and conditions of employment;
d. Wage distortion disputes in unorganized establishments not voluntarily settled by the parties;
e. Monetary claims of overseas contract workers arising from employer-employee relations;
f. Cases arising from any violation of Art. 278 including questions involving the legality of strikes and
lockouts;
g. Except claims for employment compensation, social security, philhealth, and maternity benefits, all
other claims arising from employer-employee relations, including those of persons in domestic or
household service, involving an amount exceeding P5,000 regardless of whether accompanied with a
claim for reinstatement;
h. Termination disputes;
 i. Cases under the visitorial and enforcement powers of the DOLE Secretary;
j. Enforcement of compromise agreements when there is non-compliance by any of the parties
k. Other cases as may be provided by law.

III. Define/explain briefly and accurately the following:

1. Labor Disputes
Includes any controversy or matter concerning the terms and conditions of employment or the association or
representation of persons in negotiating, fixing, maintaining, changing or arranging the terms and conditions of
employment, regardless of whether the disputants stand in the proximate relation of employer and employee.

2. Duty to bargain collectively

The duty to bargain collectively means the performance of a mutual obligation to meet and convene promptly
and expeditiously, in good faith for the purpose of negotiating an agreement with respect to wages, hours of
work and all other terms and conditions of employment including proposals for suggesting any grievances or
questions arising under such agreement and executing a contract incorporating such agreements if requested by
either party but such duty does not compel any party to agree to a proposal or to make any concession.

When there is a collective bargaining agreement, the duty bargain collectively shall also mean that neither party
shall terminate nor modify such agreement during its lifetime.

3. Economic strike

One staged by workers to force wage or other economic concessions from the employer which he is not
required by law to grant.

4. Constructive dismissal
Constructive dismissal is an involuntary resignation resulting in cessation of work resorted to when continued
employment becomes impossible, unreasonable or unlikely; when there is a demotion in rank or a diminution in pay;
or when a clear discrimination, insensibility or disdain by an employer becomes unbearable to an employee.

5. Globe doctrine

In defining the appropriate bargaining unit for purposes of collective bargaining, the determining factor is the
express will or the desire of the employees themselves.

LabRel Finals 2015.ATTY.PJUsita

True or False. Explain your answer in not more than 3 sentences.

1. The voluntary arbitrator’s jurisdiction is limited to interpretation and implementation of collective

bargaining agreements and company personnel policies.
 False. Although the Art. 224 of the Labor Code speaks of exclusive and original jurisdiction of the labor arbiter,
the cases enumerated therein may still be submitted to a voluntary arbitrator by agreement of the parties. In
fact, the law prefers voluntary over compulsory arbitration.

2. If there is a “no strike, no lockout clause” in a collective bargaining agreement, no strike can be validly
declared and staged during the effectivity of the CBA.

False. A no-strike prohibition in the CBA is applicable only to economic strikes. Therefore, ULP strike is not
covered and workers may go on strike based on ULP despite the no-strike provision.

LabRel Finals 2016.ATTY.PJUsita

A. As a result of a bargaining deadlock between B Company and B Employees’ Union, 85 employees

belonging to the union staged a strike. During the strike, 15 of the strikers padlocked the main gate of the
company which prevented the ingress and egress of company personnel. However, the company
remained steadfast and refused to give the union’s demands. Eventually, the strikers relented and
informed the company of their intention to return to work.
1. Can B Company refuse to admit all the strikers?
No, the company may only refuse to admit the 15 strikers who padlocked the main gate of the
company which prevented the ingress and egress of company personnel as this constitute a
prohibited act under the law. These 15 striking employees who knowingly participated in the
commission of illegal act during a strike may be declared to have been lost his employment.

2. If due to the prolonged strike, B Company hired replacements, can it refuse to admit the
replaced strikers?
No. During the strike, the employer-employee relationship is not terminated but merely
suspended as the work stoppage is not permanent but only temporary. The employer,
therefore, is under obligation to reinstate striking employees upon termination of the strike
provided that the participation of the employee in the strike did not constitute grounds for
termination for his employment.

B. C was employed as a route salesman by respondent D company. His duties, which were spelled out in the
Company Handbook, included selling soft drink products either on cash or credit basis, receiving
payments for past due or current accounts, issuing sales invoices and receiving empty bottles and cases
of soft drinks.

Upon verification and audit of the accounts handled by C, the District Sales Supervisor of D Company discovered
transactions in violation of the Company Handbook.

1. Considering that C is not a managerial employee, may he be dismissed from employment based
on loss of trust and confidence? Explain.

Yes. C may be dismissed based on loss of trust and confidence even if he is not a managerial employee.
The law contemplates two kinds of employees who have positions of trust and confidence. The first class is
those of managerial employees and the other one is those who are rank and file employees but are
regularly entrusted with the handling, care and custody of the money or property of the employer.
Additionally, the law requires that with respect to rank-and-file employees, there must be proof of
involvement in the alleged events in question.

In this case, one of the duties of C is to receive payment for past due or current accounts which means that
he is entrusted with the employer's money in the exercise of his duties. Also, his violation was
discovered upon verification and audit. Thus, he may be dismissed on the ground of loss of trust
and confidence.

2. Before C’s dismissal may be validly implemented, discuss the statutory obligations of D Company
towards C.

For termination based on just causes under Art. 297, procedural due process means compliance with the
following:
● A written notice (first notice) served on the employee specifying the ground for
termination, and giving to said employee reasonable opportunity to explain his side.
● A hearing or conference (or at least an opportunity to be heard) during which the employee
concerned, with the assistance of counsel if the employee so desires, is given an
opportunity to respond to the charge, present his evidence, or rebut the evidence
presented against him.
● A written notice of termination (second notice) served on the employee indicating that
upon due consideration of all the circumstances, grounds have been established to justify
his termination.

3. Assuming that there is indeed a just cause to terminate the services of C, may he nevertheless be
awarded separation pay? Explain.

No. An employee is not entitled to separation pay if the cause of dismissal is valid and due to an act
imputable to him. Jurisprudence provides that separation pay is a substitute remedy which may
only be awarded in the event that reinstatement is not possible. It is not proper if there is no
finding of illegality of dismissal.

C may not be awarded separation pay if there is indeed a just cause for his termination and provided that D
Company complied with the twin requirements of notice and hearing, because is such case, there is
no illegality in his dismissal and the cause is valid and imputable to him.

4. Assuming that C’s dismissal is held to be illegal, may his prayer for “reinstatement to his former
position without loss of seniority rights” be denied? Explain.

Yes. Article 294 of the Labor Code states that, “In cases of regular employment, the employer shall not
terminate the services of an employee except for a just cause or when authorized by this Title. An
 employee who is unjustly dismissed from work shall be entitled to reinstatement without loss of
seniority rights and other privileges x x x”

C. DEF Union was voluntarily recognized as the exclusive bargaining agent by GHI Corporation, an
unorganized establishment. Thereafter, a CBA was executed and registered.

1. Before the expiration of the freedom period, may DEF Union again request GHI Corporation for
voluntary recognition? Explain.
2. Assuming GHI Corporation agrees to the request, will such voluntary recognition give rise to a
complaint for unfair labor practice? Why or why not?
3. Enumerate 5 salient features of RA 9481 which strengthen the workers’ right to self-organization.

1. No. DEF Union may not ask for voluntary recognition before the expiration of the freedom period.
As a rule, voluntary recognition is only available in case the establishment is an unorganized
establishment. Since GHI Corporation is already organized, it may not ask for voluntary recognition.

2. Yes. It may give rise to a complaint for ULP. Immediately granting the union exclusive recognition as
a bargaining agent without determining whether the union represents the majority of employees is
an illegal form of assistance amounting to ULP.

3. A. Voluntary cancellation of union registration

B. The employer is a mere by-stander when a petition for certification election is filed
C. Rank and file and supervisory unions may join the same federation
D. Inclusion of employees outside the bargaining unit shall not be a ground for cancellation of
registration
E. Failure to file reportorial requirements is not a ground for cancellation of registration but will subject
the erring officers to appropriate sanctions

D. The results of the certification election in a CBU with 1,500 employees are as follows:
Union 1 – 460 votes
Union 2 – 450 votes
Union 3 – 300 votes
No Union – 290 votes

1. Considering that there are no invalid votes cast, may Union 1 be declares as the winner? Explain.
No. For there to be a valid certification election, two majorities must be complied with:
1. Majority of bargaining unit must have voted; and
2. The winning union must have garnered majority of the valid votes cast.

Majority of the valid votes cast in the case at bar is 751. Union 1 only got 460 votes. Having failed to
comply with the second requirement, union 1 may not be declared as the winner.

2. Is run-off election proper? Explain.

 Yes. The contending unions obtained 1,210 votes which exceeds one-half of the votes cast. The run-off will
be between unions 1 and 2 because they received the two highest number of votes.

Run-off election is proper if the 5 concurrent conditions exists, namely:

1. A valid election took place because majority of the CBU members voted.
2. The election presented at least three choices.
3. Not one of the unions obtained the majority of the valid votes.
4. The total number of votes for all the unions is at least 50% of the votes cast.
5. There is no unresolved challenges of voter or election protest.

All these conditions are present in the case at bar.

E. KLM Company is a firm based in Marikina City with 1,000 employees. It makes and manufactures leather
and rubber shoes and sandals. It pays P70 million in income tax alone to the Philippine government.
While a labor dispute between the management and the exclusive bargaining agent of the company was
undergoing conciliation process, top officers of the union were dismissed. Wary that a strike might be
staged by the union, the Secretary of Labor and Employment immediately assumed jurisdiction over the
dispute.

1. Is the action of the Secretary justified and legal? State your reasons.

Yes. A labor dispute may be assumed by the Secretary or certified to the NLRC even before the actual
staging of strike since the law does not require the existence of a strike but only of a labor dispute
involving national interest. What constitutes “indispensable industry” is based upon the discretion
of the Secretary of Labor. However, the President of the Philippines may not be precluded from
determining industries which in his opinion are indispensable to national interest.

2. Assuming it is justified and legal, what, if any, are the effects of the Secretary’s assumption of
jurisdiction over the dispute?
a. Automatically enjoins the intended or impending strike as specified in the assumption or
certification order;
b. If one has already taken place at the time of assumption or certification, all striking
employees shall within 24 hours return to work from receipt of an assumption or
certification order; and
c. The employer shall immediately resume operation and re-admit all workers under the same
terms and conditions prevailing before the strike.

3. How do we determine whether a strike is legal or not?

F. A group of employees of NOPQ Factory belonging to a religious sect, in conformity with the teachings and
dictates of their religion, refused to join the labor union in the factory. The labor union was able to
negotiate a substantial wage increase in its collective bargaining agreement with management. A
provision therein stated that the wage increase would be paid to the members of the union only in view
of the “closed shop” union security clause in the new agreement. The members of the sect protested and
demanded that the wage increase be extended to them. The officers of the union countered by
 demanding their dismissal from the company pursuant to the closed-shop provision in the just-concluded
CBA.

1. Is the CBA provision valid? Explain.

Yes. In a closed-shop agreement, only member of the union can be hired by the company and they must
remain as union members to retain employment in the company. In view of the close-shop
agreement, the provision on wage increase was not discriminatory as it was intended to cover all
the employees of the NOPQ Factory.

2. Should the company comply with the union’s demand of terminating the services of the members
of the religious sect? Explain.

No. Although close-shop agreement is valid, employees belonging to any religious sect which prohibit
affiliation of their members with any labor organization are not covered by such agreement. The
free exercise of religious belief is superior to contract rights.

G. Z Union is a legitimate labor organization in Z Corporation. Desirous of becoming an exclusive bargaining

agent, Z Union wrote a letter to Z Corporation demanding that it be recognized as such.

1. If you were the President of Z Corporation, would you accede to the demand of Z Union?
No. D.O. No. 40-I-15 has already repealed and replaced the rules on voluntary recognition in D.O. No.
40-03 with rules on request for sole and exclusive bargaining agent (SEBA). Hence, as the president of Z
Corporation, I can no longer voluntarily recognize Z Union as the exclusive bargaining representative
(EBR). Z Union should ask for SEBA certification from DOLE to be recognized as the EBR of the
employees in the appropriate bargaining unit.

2. Assuming you accede, will such recognition of Z Union as exclusive bargaining agent possibly give
rise to a complaint for unfair labor practice? Why or why not?
3. Assuming you do not accede, what, if any, is your proper course of action? Why and where would
you file it?

H. True or False. Explain your answer in not more than 3 sentences.

1. When the employer or his representative hurls serious insult on the honor or person of the
employee, the law says that the employee may leave work at any time and file for constructive
dismissal.

False, the employee need not to file for constructive dismissal. The law provides that an employee may put
an end to the relationship without serving any notice on the employer when the latter or his
representatives hurls serious insult on the honor or person of the employee.

2. Collective bargaining deadlock is one of the grounds for a valid strike. There is a bargaining
deadlock when, despite negotiating in good faith, the parties do not agree regarding a specific
issue or subject matter.
True. Deadlock arises when there is an impasse, which presupposes reasonable effort at good faith
bargaining which, despite noble intentions, did not conclude in an agreement between the parties.
Bargaining to a point of impasse, however, must be on a mandatory subject of bargaining.
Otherwise, the impasse amounts to bargaining in bad faith.

3. In the absence of retirement plan or agreement providing for retirement benefits of employees in
the establishment, a retiring employee is entitled to retirement pay equivalent to 15 days his
salary for every year of service.

False. Art 302 par. 3 of the Labor Code provides, “In the absence of retirement plan or agreement providing
for retirement benefits of employees in the establishment, an employee upon reaching the age of
60 years or more, but not beyond 65 years which is hereby declared the compulsory retirement
age, who has served at least 5 years in the said establishment, may retire and shall be entitled to
retirement pay equivalent to at least ½ month salary for every year of service, a fraction of at last 6
months being considered as one whole year.”

4. An employee who has repeatedly incurred two absences monthly for the past 6 months may be
dismissed from employment.

False. In order to constitute a just cause for the employee’s dismissal, the neglect of duties must not only be
habitual but also gross. Gross neglect means an absence of that diligence than an ordinary prudent
man would use in his own affairs. While the employee’s absences may be habitual, it is not gross.