UNIVERSITY OF THE PHILIPPINES DILIMAN COLLEGE OF LAW BAR OPERATIONS COMMISSION 2013 MOCK BAR EXAM-LABOR LAW

Part I. MULTIPLE CHOICE. Choose the letter of the best answer. 1. An a. b. c. d. employer may not pay his employees wages through the following forms EXCEPT: Chits and tokens, vouchers and checks, provided agreed upon by the parties Vouchers or checks, in emergency situations as determined by law Checks, vouchers or money orders, when expressly requested by the employee Checks or money orders, when it is necessary because of special circumstances

LC, Art. 102. 2. Measures are mandatory to be taken to ensure that an alternative to night work is available to women workers who would otherwise be called upon to perform such work during the following times except: a. Before and after pregnancy for a period of at least 16 weeks, which shall be divided between the time before and after childbirth b. During childbirth and the succeeding 16 weeks from such point c. During pregnancy for which a medical certificate stating that additional periods are necessary for the health of the mother or child must be produced d. During a specified time beyond 16 weeks after childbirth, the length of which shall be determined by the DOLE after consulting labor organizations and employers. RA 10151 3. It shall be unlawful for a recruiter of OFWs to commit the following except: a. Grant a loan to an OFW with interest not exceeding 8% per annum, which will be used for payment of legal and allowable placement fees and make the migrant worker issue, either personally or through a guarantor or accommodation party, postdated checks in relation to the said loan b. Impose a compulsory and exclusive arrangement whereby an OFW is required to avail of a loan only from specifically designated institutions, entities or persons c. Impose a compulsory and exclusive arrangement whereby an OFW is required to undergo training, seminar, instruction or schooling of any kind only from specifically designated institutions, entities or persons, except for recommendatory trainings mandated by principals/shipowners where the latter shoulder the cost of such trainings d. For a recruitment/manning agency or a foreign principal/employer to pass on the OFW or deduct from his or her salary the payment of the cost of insurance fees, premium or other insurance related charges, as provided under the compulsory worker's insurance coverage. RA 10022, Sec. 5 4. This alien is exempt from securing an Alien Employment Permit: a. German professor promoting his research paper in the IRRI b. the ambassador of Kenya to the Philippines c. wife of the Singaporean consul d. son of the Dutch vice-president of the ADB

DO 97-09, Sec. 2 (pursuant to Arts. 5 and 40 of the Labor Code) 5. As a general rule, when shall wages be paid? a. Wages shall be paid at most once every 2 weeks or twice a month at intervals not exceeding 16 days. b. Wages shall be paid at least once every 2 weeks or twice a month at intervals not exceeding 16 days. c. Wages shall be paid at least once every 2 weeks or twice a month at intervals not exceeding 15 days. d. Wages shall be paid at most once every 2 weeks or twice a month at intervals not exceeding 15 days. LC, Art. 103 6. An employer who employs handicapped workers shall enter into an employment agreement with them which shall include: a. The names and addresses of the handicapped workers to be employed; the name/s and addresses of the employer/s; the rate to be paid the handicapped workers which shall not be less than 75% of the applicable legal minimum wage; the duration of employment period; and the work to be performed by handicapped workers b. The rate to be paid the handicapped workers which shall not be less than 70% of the applicable legal minimum wage; the duration of employment period; the name/s and addresses of the employer/s; the names and addresses of the handicapped workers to be employed; and the work to be performed by handicapped workers c. The work to be performed by handicapped workers; the period of employment; the names and addresses of the handicapped workers to be employed; and the rate to be paid the handicapped workers which shall not be less than 70% of the applicable legal minimum wage d. The names and addresses of the handicapped workers to be employed; the rate to be paid the handicapped workers which shall not be less than 75% of the applicable legal minimum wage; the duration of employment period; and the work to be performed by handicapped workers LC, Art. 80. 7. How are service charges distributed? a. All service charges collected by hotels, restaurants and similar establishments shall be distributed at the rate of 75% for all covered employees and 25% for management. The share of the employees shall be equally distributed among them. b. All service charges collected by hotels, restaurants and similar establishments shall be distributed at the rate of 85% for all regular employees and 15% for management. The share of the employees may be proportionately distributed among them. c. All service charges collected by hotels, restaurants and similar establishments shall be distributed at the rate of 85% for all covered employees and 15% for management. The share of the employees shall be equally distributed among them. d. All service charges collected by hotels, restaurants and similar establishments shall be distributed at the rate of 75% for all regular employees and 25% for management. The share of the employees may be proportionately distributed among them. LC, Art. 96. 8. In a work-related environment, sexual harassment is committed EXCEPT:

a. a sexual favor is made as a condition in the hiring or in the employment, reemployment or continued employment of said individual, or in granting said individual favorable compensation, terms of conditions, promotions, or b. When the sexual favor is made a condition to the giving of a passing grade, or the granting of honors and scholarships, or the payment of a stipend, allowance or other benefits, privileges, or consideration c. the refusal to grant the sexual favor result in an intimidating, hostile, or offensive environment for the employee d. the refusal to grant the sexual favor results in limiting, segregating or classifying the employee which in any way would discriminate, deprive or diminish employment opportunities or otherwise adversely affect said employee RA 7877, Sec. 3. 9. Which of the following is entitled to minimum wage: a. The driver of a company presidents son b. A lumberjack in a construction project c. The labandera of a diplomats wife d. Legal assistant in the DSWD LC, Art. 82. 10. Retirement age may be determined by the following EXCEPT: a. Collective bargaining agreement b. Employment contract c. Corporation by-laws d. Retirement plan LC, Art. 287. 11. Which of the following may not be covered by the Social Security Law? a. A dentist who operates his own clinic b. A domestic helper working for an employer based abroad c. A full-time housewife d. Office clerk in the Japanese Embassy R.A. 8282, secs. 9 and 9-A 12. Carling has already been employed by the U.P. College of Law as a messenger for more than 15 years when he was accidentally hit by a flying object while delivering records thereby resulting in the permanent loss of his hearing. He was already 60 years old at the time the accident happened. Under the GSIS Act of 1997, Carling may be entitled to: a. Retirement Benefits b. Permanent Total Disability Benefits c. Temporary Disability Benefits d. Only A and B R.A. 8291, secs. 13-A, 16-18 13. Under the Labor Code of the Philippines, who among the following has the right to join, form or assist labor organizations for the purpose of collective bargaining? a. A dentist who operates his own clinic b. A domestic helper

c. An employee who is vested with powers or prerogatives to hire, transfer, suspend, lay-off, recall, discharge, assign or discipline employees d. A security guard Labor Code of the Philippines, arts. 212 (m), 243, 245 14. Which of the following actions may not be taken by an employer? a. Filing a petition for certification election b. Voluntarily recognizing the representation status of a union c. Agreeing to a consent election d. Filing a petition for cancellation of union registration Labor Code of the Philippines, arts. 258 Omnibus Rules Implementing the Labor Code, Book V, Rule VII, sec. 1 and Rule VIII, sec. 10 Omnibus Rules, Book V, Rule XIV, sec. 2 15. This entity has the right to act the representative of its members for the purpose of collective bargaining: a. Labor organization b. Legitimate labor organization c. Workers Union d. Workers Cooperative Omnibus Rules Implementing the Labor Code, Book V, Rule I, sec. 1 (t) 16. Which of the following statements is the most accurate? a. Any Collective Bargaining Agreement that the parties may enter into shall be for a term of 5 years. b. A petition questioning the majority status of the incumbent bargaining agent may only be filed by a legitimate labor organization, national union or federation. c. The act of an employer requiring membership in a recognized collective bargaining agent as a condition for employment is not considered as an unfair labor practice. d. An agent of a labor organization may commit an unfair labor practice by refusing to bargain collectively with the employer. Labor Code of the Philippines, arts. 248 (e), 249 (c), 253-A, 258 17. The domestic worker may terminate the employment relationship at any time before the expiration of the contract for any of the following causes EXCEPT: a. Verbal or emotional abuse of the domestic worker by the employer or any member of the household b. Inhuman treatment including physical abuse of the domestic worker by the employer or any member of the household c. Fraud or willful breach of the trust reposed by the domestic worker on the employer d. Commission of a crime or offense against the domestic worker by the employer or any member of the household RA 10361, Sec. 33 18. Which of the following may assume jurisdiction over labor disputes causing or likely to cause a strike or lockout? a. The Labor Arbiter b. The National Labor Relations Commission

c. Med-Arbiter d. National Conciliation and Mediation Board Labor Code of the Philippines, arts. 263 (g) 19. Which of the following may have have original and exclusive jurisdiction over any termination dispute? a. National Labor Relations Commission b. Voluntary Arbitrator c. Regional Director of the DOLE d. Bureau of Labor Relations Labor Code of the Philippines, arts. 217 and 261 (c) 20. Which of the following statement(s) is correct? a. The Labor Arbiter has original and exclusive jurisdiction over all money claims arising from an employer-employee relationship. b. The National Conciliation and Mediation Board has original and exclusive jurisdiction over all inter-union and intra-union conflicts, and all disputes, grievances or problems arising from or affecting labor-management relations in all workplaces. c. The Secretary of Labor and Employment may assume jurisdiction over labor disputes causing or likely to cause a strike or lockout in an industry indispensible to national interest. d. The Regional Director of DOLE may hear and decide a complaint for reinstatement with recovery of wages and other monetary claims, provided the claim does not exceed P5,000.00. Labor Code of the Philippines, arts. 129, 217, 226, 263 (g) Part II. ESSAY I. Mia worked as a make-up artist for JKL News Broadcasting Inc. from 2007 until her termination in 2012. She filed an illegal dismissal case against JKL. In her complaint, she alleges that she used to be part of Kinis Group of Make-up Artists which was hired by JKL in 2006 but in 2007, JKL hired her personally to be the permanent make-up artist for its shows talents which resulted in her leaving Kinis. During the time of her employment, she alleged that she directly reports to the Manager of JKL News, that her payslips and ID card bear the logo of JKL, and that she reports to the studio on a regular schedule of 6pm to 3am. She claims to have received in 2012 a Memorandum informing her of her dismissal due to JKLs decision to contract Puti Make-up Artists Agency for its make-up needs. As a defense, JKL claims that Mia stayed on with them in 2007 not because she was personally hired but because shes the only one who was not involved with several controversial issues between Kinis and the networks talents and that they asked he r to stay along with other make-up contractors until the network finds a permanent make-up services agency so as not to impede the operations of the network. They dispute that Mia became their regular employee in 2007 and claim that shes an independent contractor just like the other make-up artists rendering services for them. They dispute the sufficiency of the payslips, ID card, and regular schedule as evidence of an employer-employee relationship. (a) Define employer and employee. (2 pts) Answer: Art 97 (b) and (c) of the Labor Code

(b) What are the factors to be considered in the determination of the existence of an employer-employee relationship? (3 pts) In determining the existence of an employer-employee relationship, the following elements are considered: (1) the selection and engagement of the worker or the power to hire; (2) the power to dismiss; (3) the payment of wages by whatever means; and (4) the power to control the workers conduct. Source: Perpetual Help Credit Cooperative vs. Faburada (c) What is the difference between an employee and an independent contractor? (5 pts) As stated in Chavez vs. NLRC, compared to an employee, an independent contractor is one who carries on a distinct and independent business and undertakes to perform the job, work, or service on its own account and under its own responsibility according to its own manner and method, free from the control and direction of the principal in all matters connected with the performance of the work except as to the results thereof. Hence, while an independent contractor enjoys independence and freedom from the control and supervision of his principal, an employee is subject to the employer's power to control the means and methods by which the employee's work is to be performed and accomplished. It bears stressing that the existence of an employer-employee relationship cannot be negated by expressly repudiating it in a contract and providing therein that the employee is an independent contractor when, as in this case, the facts clearly show otherwise. Indeed, the employment status of a person is defined and prescribed by law and not by what the parties say it should be. (d) Is Mia a regular employee or an independent contractor of JKL News? (5 pts) Mia is regular employee. According to TAPE, Inc. vs. Servana, among the factors to be considered in determining the existence of employer-employee relationship, the most important factor involves the control test. The power of the employer to dismiss an employee from service clearly indicates that the employer has control over the employee. In the case at bar, such control and power to dismiss were manifested by the Memorandum terminating Mias services. Contrary to JKLs defense, the ID card and payslips serve as badges that such relationship exists. Further, the fact that Mia was directed to render services on a regular basis for more than 5 years and to follow a strict schedule negates the argument that she was only an independent contractor. II. Sometime in 2005, Lisa, Marie, and Pricilla individually went to the recruitment agency office of Michael, Xander, and Tia in Cubao, Quezon City, to apply for employment abroad. They were required to submit to Xander their travel documents such as passports, NBI clearances, and birth certificates and paid various amounts of money to Michael for recruitment fees, placement fees, among others. Michael handed the money to his partner Tia, and afterward issued them a receipt. He allegedly promised to notify the 3 women as soon as they were accepted for employment so that they could leave for abroad. However, this promise was not fulfilled. Anxious that they might be victims of a scam, the 3 women checked with the Philippine Overseas Employment Administration (POEA) the background of their recruiters and found out that Michael and Tia were operating a recruitment agency without a license. They obtained from the POEA a Certification that Michael, Xander, and Tia were not licensed to recruit and subsequently demanded from Michael, Xander, and Tia the return of their money and travel documents but the latter refused to do.

(a) As a lawyer for the 3 victims, what crime should you describe in the complaint? (3 pts) The crime committed is Illegal Recruitment. As stated in Sec. 6 of RA 8042, Illegal Recruitment shall refer to any act of canvassing, enlisting, contracting, transporting, utilizing, hiring, or procuring workers and includes referring, contract services, promising or advertising for employment abroad, whether for profit or not, when undertaken by a non-licensee or non-holder of authority contemplated under Article 13(f) of Presidential Decree No. 442, as amended, otherwise known as the Labor Code of the Philippines: Provided, That any such non-licensee or non-holder who, in any manner, offers or promises for a fee employment abroad to two or more persons shall be deemed so engaged. (b) Define illegal recruitment committed by a syndicate and illegal recruitment committed in large scale. (2 pts) The same provision of law stated above provides that Illegal recruitment is deemed committed by a syndicate if carried out by a group of three (3) or more persons conspiring or confederating with one another. It is deemed committed in large scale if committed against three (3) or more persons individually or as a group. (c) Define recruitment and placement. (3 pts) Art. 13. (b) "Recruitment and placement" refers to any act of canvassing, enlisting, contracting, transporting, utilizing, hiring or procuring workers, and includes referrals, contract services, promising or advertising for employment, locally or abroad, whether for profit or not: Provided, That any person or entity which, in any manner, offers or promises for a fee, employment to two or more persons shall be deemed engaged in recruitment and placement. (d) What are some of the prohibited practices with regard to recruitment and placement of workers according to the Labor Code? Give 5. (7 pts) Art. 34. Prohibited practices. It shall be unlawful for any individual, entity, licensee, or holder of authority: a. To charge or accept, directly or indirectly, any amount greater than that specified in the schedule of allowable fees prescribed by the Secretary of Labor, or to make a worker pay any amount greater than that actually received by him as a loan or advance; b. To furnish or publish any false notice or information or document in relation to recruitment or employment; c. To give any false notice, testimony, information or document or commit any act of misrepresentation for the purpose of securing a license or authority under this Code. d. To induce or attempt to induce a worker already employed to quit his employment in order to offer him to another unless the transfer is designed to liberate the worker from oppressive terms and conditions of employment; e. To influence or to attempt to influence any person or entity not to employ any worker who has not applied for employment through his agency; f. To engage in the recruitment or placement of workers in jobs harmful to public health or morality or to the dignity of the Republic of the Philippines; g. To obstruct or attempt to obstruct inspection by the Secretary of Labor or by his duly authorized representatives;

h. To fail to file reports on the status of employment, placement vacancies, remittance of foreign exchange earnings, separation from jobs, departures and such other matters or information as may be required by the Secretary of Labor. i. To substitute or alter employment contracts approved and verified by the Department of Labor from the time of actual signing thereof by the parties up to and including the periods of expiration of the same without the approval of the Secretary of Labor; j. To become an officer or member of the Board of any corporation engaged in travel agency or to be engaged directly or indirectly in the management of a travel agency; and k. To withhold or deny travel documents from applicant workers before departure for monetary or financial considerations other than those authorized under this Code and its implementing rules and regulations. III. What are the rules on compensation for rest day, Sunday, and holiday work? (5 pts) Art. 93. Compensation for rest day, Sunday or holiday work. a. Where an employee is made or permitted to work on his scheduled rest day, he shall be paid an additional compensation of at least thirty percent (30%) of his regular wage. An employee shall be entitled to such additional compensation for work performed on Sunday only when it is his established rest day. b. When the nature of the work of the employee is such that he has no regular workdays and no regular rest days can be scheduled, he shall be paid an additional compensation of at least thirty percent (30%) of his regular wage for work performed on Sundays and holidays. c. Work performed on any special holiday shall be paid an additional compensation of at least thirty percent (30%) of the regular wage of the employee. Where such holiday work falls on the employees scheduled rest day, he shall be entitled to an additional compensation of at least fifty per cent (50%) of his regular wage. d. Where the collective bargaining agreement or other applicable employment contract stipulates the payment of a higher premium pay than that prescribed under this Article, the employer shall pay such higher rate. IV. Compare and contrast regular, casual, and probationary employment. (5 pts) As stated in Art. 280 of the Labor Code, notwithstanding the provisions of a written agreement to the contrary and regardless of any oral agreement of the parties, an employment is considered to be regular if the employee has been engaged to perform activities which are usually necessary or desirable in the usual business or trade of the employer, except where the employment has been fixed for a specific project or undertaking the completion or termination of which has been determined at the time of the engagement of the employee or where the work or service to be performed is seasonal in nature and the employment is for the duration of the season. However, an employment is considered casual when the above definition does not apply, provided, that any employee who has rendered at least one year of service, whether such service is continuous or broken, shall be considered a regular employee with respect to the activity in which he is employed and his employment shall continue while such activity exists. On the other hand, Art. 281 provides: Probationary employment shall not exceed six (6) months from the date the employee started working, unless it is covered by an apprenticeship agreement stipulating a longer period. The services of an employee who has been engaged on a probationary basis may be terminated for a just cause or when he fails to qualify as a

regular employee in accordance with reasonable standards made known by the employer to the employee at the time of his engagement. An employee who is allowed to work after a probationary period shall be considered a regular employee. V. Nick, prior to the termination of his employment in 2011, has been employed as an Administrative Assistant by Spark Real Estate, Inc. since 2000. As a result of the recession in 2008, business in the real estate industry slowed down, and profits coming into the corporation continuously dwindled. In order for the corporation to avoid massive lay-offs, it sold substantial properties in its possession. The corporation managed to stay afloat and keep its solvency until its Board decided to cease operating its business. On 23 Sept 2011, Sally, the Manager of the Administrative, approached Nick that effective 24 Sept 2011, Spark Real Estate is deemed closed for business and that he need not report for work. As a result, Nick filed a complaint for Illegal Dismissal. (a) What is security of tenure as contemplated by the Labor Code? (3 pts) Art. 279: 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 and to his full backwages, inclusive of allowances, and to his other benefits or their monetary equivalent computed from the time his compensation was withheld from him up to the time of his actual reinstatement. (b) As a lawyer for Spark, what defense may you state to justify the termination of Nick from the corporation? (3 pts) Nicks termination is authorized by Art. 283 of the Labor Code which provides that his employment may be terminated on the ground of closure or cessation of operations of establishment or undertaking not due to serious business losses or financial reverses. Such ground shall be further proved to be undertaken for valid purposes and not as a means to circumvent the requirements of labor laws and statutes. (c) Suppose the court found that the ground for termination was indeed authorized. What other requisite must be fulfilled in order for the termination to be legal? (1 pt) Payment of separation pay equivalent to one (1) month pay or at least one-half (1/2) month pay for every year of service, whichever is higher. A fraction of at least six (6) months shall be considered one (1) whole year. Source: Art. 283 (d) What are other just and authorized causes for termination by the employer? (6 pts) Arts. 282-284 (e) What are the notice requirements for termination on just/authorized causes by the employer? (5 pts) As provided in Art. 277 of the Labor Code, subject to the constitutional right of workers to security of tenure and their right to be protected against dismissal except for a just and authorized cause and without prejudice to the requirement of notice under Article 283 of this Code, the employer shall furnish the worker whose employment is sought to be terminated a written notice containing a statement of

the causes for termination and shall afford the latter ample opportunity to be heard and to defend himself with the assistance of his representative if he so desires in accordance with company rules and regulations promulgated pursuant to guidelines set by the Department of Labor and Employment. Any decision taken by the employer shall be without prejudice to the right of the worker to contest the validity or legality of his dismissal by filing a complaint with the regional branch of the National Labor Relations Commission. The burden of proving that the termination was for a valid or authorized cause shall rest on the employer. The Secretary of the Department of Labor and Employment may suspend the effects of the termination pending resolution of the dispute in the event of a prima facie finding by the appropriate official of the Department of Labor and Employment before whom such dispute is pending that the termination may cause a serious labor dispute or is in implementation of a mass lay-off. (f) It was found by the court that Nicks procedural due process rights were violated by Spark due to its failure to comply with the notice requirements laid down by the law. Is his termination still legal? If so, is there a remedy for him to redress such violation? (2 pts) Yes. As provided in the case of Agabon vs. NLRC, where the dismissal is for a just cause, or as in this case, for an authorized cause, the lack of statutory due process should not nullify the dismissal, or render it illegal or ineffectual. However, Spark should indemnify Nick for the violation of his statutory rights which may be in the form of nominal damages, the amount of which to be determined by the court taking into account all the facts and circumstances and the gravity of the due process violation committed by Spark. VI. What are bars to the filing of a petition for certification election? (5 pts) Omnibus Rules Implementing the Labor Code, Book V, Rule VIII Section 3. When to file.- A petition for certification election may be filed anytime, except: (a) when a fact of voluntary recognition has been entered or a valid certification, consent or run-off election has been conducted within the bargaining unit within one (1) year prior to the filing of the petition for certification election. Where an appeal has been filed from the order of the Med-Arbiter certifying the results of the election, the running of the one year period shall be suspended until the decision on the appeal has become final and executory; (b) when the duly certified union has commenced and sustained negotiations in good faith with the employer in accordance with Article 250 of the Labor Code within the one year period referred to in the immediately preceding paragraph; (c) when a bargaining deadlock to which an incumbent or certified bargaining agent is a party had been submitted to conciliation or arbitration or had become the subject of a valid notice of strike or lockout; (d) when a collective bargaining agreement between the employer and a duly recognized or certified bargaining agent has been registered in accordance with Article 231 of the Labor Code. Where such collective bargaining agreement is registered, the petition may be filed only within sixty (60) days prior to its expiry. (see also Labor Code of the Philippines, arts. 232, 250, 253, 253-A, 256 and Omnibus Rules Implementing the Labor Code, Book V, Rule VIII, sec. 14) VII.

What are the requirements for voluntary recognition? (5 pts) Omnibus Rules Implementing the Labor Code, Book V, Rule VII Section 1. When and where to file.- In unorganized establishments with only one legitimate labor organization, the employer may voluntarily recognize the representation status of such a union. Within thirty (30) days from such recognition, the employer and union shall submit a notice of voluntary recognition with the Regional Office which issued the recognized labor union's certificate of registration or certificate of creation of a chartered local. Section 2. Requirements for voluntary recognition.- The notice of voluntary recognition shall be accompanied by the original copy and two (2) duplicate copies of the following documents: (a) a joint statement under oath of voluntary recognition attesting to the fact of voluntary recognition; (b) certificate of posting of the joint statement of voluntary recognition for fifteen (15) consecutive days in at least two (2) conspicuous places in the establishment or bargaining unit where the union seeks to operate; (c) the approximate number of employees in the bargaining unit, accompanied by the names of those who support the voluntary recognition comprising at least a majority of the members of the bargaining unit; and (d) a statement that the labor union is the only legitimate labor organization operating within the bargaining unit. All accompanying documents of the notice for voluntary recognition shall be certified under oath by the employer representative and president of the recognized labor union. VIII. Union C decided to rent a new office space for the conduct of its operations. To finance such undertaking, Union C imposed individual contributions upon its members. Is Union C justified under the law and the given facts to take such action? (5 pts) No. Rental expenses may neither be considered as special assessments nor extraordinary fees which may be levied upon individual union members under the conditions provided in art. 241 (n) of the Labor Code. They are rather classified as ordinary expenses which are only chargeable upon union funds. IX. While in the process of negotiating the economic provisions (i.e., wages, hours of work, and all other terms and conditions of employment) of a collective bargaining agreement, Union D requested for copies of its employers records of its transactions for the past three (3) years. The employer rejected the said request on the ground that such records contain confidential information vital to its survival in the market. As a result, the parties failed to reach a collective bargaining agreement. a. May Union D invoke its right to declare a strike in this case? Explain. (2 pts) Yes. Under art. 263 (c) of the Labor Code, the duly certified or recognized bargaining agent may file a notice of strike in cases of bargaining deadlocks or unfair labor practice. b. May the employer invoke its right to declare a lockout in this case? Explain. (3 pts) Yes/No. Under art. 263 (c) of the Labor Code, the employer may file a notice of lockout in cases of bargaining deadlocks. If it is argued that the action of the

employer above amounts to a violation of its duty to bargain collectively under art. 252, then the employer may be said to have committed an unfair labor practice under art. 248 and is therefore not entitled to invoke its right to declare a lockout. On the other hand, if it is argued that the facts given above is not sufficient to conclude that the employer did not exert reasonable efforts in good faith to bargain collectively, then it may be said that the situation above presents a case of a bargaining deadlock, thereby entitling the employer to the right to file a notice of lockout.