2014 (Labor Law) Bar Exam Questions: Question 3

[Answer/discuss the question below. Or see 2014 bar exam Labor Law Instructions; 2014 Labor Law essay and multiple choice Questions: 1, 2, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27; See also 2014 Bar Exam: Information, Discussions, Tips, Questions and Results]

III.

Lolong Law Firm (LLF), which employs around 50 lawyers and 100 regular staff, suffered losses for the first time in its history. The management informed its employees that it could no longer afford to provide them free lunch. Consequently, it announced that a nominal fee would henceforth be charged. Was LLF justified in withdrawing this benefit which it had unilaterally been providing to its employees? (1%)

(A) Yes, because it is suffering losses for the first time.

(B) Yes, because this is a management prerogative which is not due to any legal or contractual obligation.

(C) No, because this amounts to a diminution of benefits which is prohibited by the Labor Code.

(D) No, because it is a fringe benefit that has already ripened into a demandable right.

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