Law Dictionary

Question B.12, Labor Law, 2019 Bar Exam

Notice: The following suggested answers simulate those that a bar examinee may provide as an answer to a bar exam question. Thus, specific citations (i.e., republic acts, articles/sections, jurisprudence, etc.) are not provided because it is not required in the bar exam. For purposes other than answering the bar exam, please be reminded that proper referencing or legal citation is required.

Question B.12, Labor Law, 2019 Bar Exam

Due to serious business reverses, ABC Co. decided to terminate the services of several officers receiving “fat” compensation packages. One of these officers was Mr. X, its Vice-President for External Affairs and a member of the Board of Directors. Aggrieved, Mr. X filed a complaint for illegal dismissal before the National labor Relations Commission (NLRC) – Regional Arbitration Branch.

ABC Co. moved for the dismissal of the case on the ground of lack of jurisdiction, asserting that since Mr. X occupied the position of Vice-President for External Affairs which is listed in the by-laws of the corporation, the case should have been tiled before the Regional Trial Court.

The Labor Arbiter (LA) denied ABC Co.’s motion and proceeded to rule that Mr. X was illegally dismissed. Hence, he was reinstated in ABC Co.’s payroll pending its appeal to the NLRC.

(a) Did the LA err in denying ABC Co.’s motion to dismiss on the ground of lack of jurisdiction? Explain. (2.5%)

(b) Assuming the LA’s ruling of illegal dismissal with finality, may ABC Co. claim reimbursement for the amounts it paid to Mr. X during the time that he was on payroll reinstatement pending appeal? Explain. (2.5%)

Suggested Answer:

(a) Yes. Answer

Under labor law jurisprudence, one who is included in the by-laws of a corporation in its roster of corporate officers is an officer of said corporation and not a mere employee. The determination of the rights of a corporate officer dismissed from his employment, as well as the corresponding liability of a corporation, if any, is an intra-corporate dispute subject to the jurisdiction of the regular courts. Rule

In the case at bar, Mr. occupies the position of Vice-President for External Affairs which is listed in the by-laws of the corporation. This makes him a corporate officer, and not an employee. The issue on his dismissal is an intra-corporate dispute within the jurisdiction of the Regional Trial Court. Apply

Thus, the LA did not err in denying ABC Co.’s motion to dismiss on the ground of lack jurisdiction. Conclusion

(b) No. Answer

Under labor law jurisprudence, the employer cannot recover amounts paid to the employee during the period of payroll reinstatement if subsequently the NLRC or an appellate court reverses the order of reinstatement by the Labor Arbiter. Rule

In the case at bar, ABC Co. observed payroll reinstatement pending appeal. Should the NLRC reverse the Labor Arbiter’s ruling of illegal dismissal with finality, ABC Co. cannot claim reimbursement for amounts paid during the period of payroll reinstatement. Apply

Thus, ABC Co. may not claim reimbursement for the amounts it paid to Mr. X during the time that he was on payroll reinstatement pending appeal. Conclusion

Disclaimer: All information is for educational and general information only. These should not be taken as professional legal advice or opinion. Please consult a competent lawyer to address your specific concerns. Any statements or opinions of the author are solely his own and do not reflect that of any organization he may be connected.

Suggested Answers

Question I, Civil Law, 2017 Bar Exam

State whether the following marital unions are valid, void, or voidable, and give the corresponding justifications for your answer: (a) Ador and Becky’s marriage wherein

Question B.12, Labor Law, 2019 Bar Exam

Due to serious business reverses, ABC Co. decided to terminate the services of several officers receiving “fat” compensation packages. One of these officers was Mr.

Top Read

Video Lessons

Legal Maxims

distingue tempora et concordabis jura

Latin maxim. • “Distinguish times and you will harmonize laws.” (Commissioner of Customs v. Superior Gas and Equipment Co., En Banc, G.R. No. L-14115, May

Read more

Annotations

Corpus delicti

1. Concept “Corpus delicti” – refers to the fact of the commission of the crime charged or to the body or substance of the crime.

Grave threats, Revised Penal Code

1. Concept and legal basis Art. 282. Grave threats. – Any person who shall threaten another with the infliction upon the person, honor or property

You cannot copy content of this page