2025 Labor Law, Q2

A filed a complaint against XYZ Corp. for unfair labor practice. A alleged that only workers who graduated from ABC University were given free breakfast and free lunch by the corporation. A, an alumnus of DEF University, was not entitled to this incentive. Is there unfair labor practice? Reason(s).

Quick check

What essential element must be present for an employer's act to constitute an Unfair Labor Practice under the Labor Code?

When does discrimination in employment conditions amount to an Unfair Labor Practice under Article 259 of the Labor Code?

Why was XYZ Corp.'s policy of providing free meals exclusively to ABC University graduates not considered an Unfair Labor Practice?

Which tribunal has original and exclusive jurisdiction to hear and decide cases involving Unfair Labor Practice complaints?

How does labor law classify employer actions that are unfair or discriminatory but unrelated to unionism or collective bargaining?

Learn more about these topics

1. Unfair Labor Practice
Unfair labor practice refers strictly to acts that violate or interfere with the constitutional and statutory right of workers to self-organization and collective bargaining under Articles 258 and 259 of the Labor Code. For an employer's conduct to constitute an unfair labor practice, it must have a direct connection to union activity, concerted action, or the exercise of organizational rights. Acts that do not infringe upon unionism or collective rights, even if seemingly unfair or discriminatory, do not fall within the legal concept of unfair labor practice.

2. Prohibited Discrimination
Under Article 259(e) of the Labor Code, discrimination in terms, tenure, or conditions of employment constitutes an unfair labor practice only when committed to encourage or discourage membership in any labor organization. Discrimination based on non-union factors, such as educational background, alma mater, or personal preferences, does not amount to an unfair labor practice. While such policies might raise issues of management prerogative or equal employment opportunity, they remain outside the scope of unfair labor practice provisions absent any anti-union motivation.

3. Management Prerogative
Management prerogative grants employers the inherent right to regulate all aspects of employment, including the grant of special perks, voluntary benefits, and employee incentives. An employer may freely design incentive schemes or offer special privileges to select groups of employees, provided such policies do not violate labor standards laws, public policy, or collective bargaining agreements. Unless a benefit scheme is used as a covert tool to undermine unionization or penalize union members, its selective implementation falls within the valid exercise of managerial discretion.

About these questions and answers
The questions reproduced here are the official texts of the Philippine Bar Examinations, published by the Supreme Court. They are reproduced for study purposes.The suggested answers are the author’s own.

They are not official answers, have no connection with the Supreme Court, the Office of the Bar Confidant, or any bar review institution, and are not endorsed by any of them. Official answer keys, where released, should be preferred over anything here.Nothing on this page is legal advice, and reading it creates no lawyer-client relationship. Do not rely on any suggested answer in an actual legal matter. Consult counsel on your own facts.Suggested answers reflect the law and jurisprudence the author considers applicable as of the date shown.

Where a question comes from an earlier examination, the suggested answer applies the law as it now stands, which may differ from the law in force when the question was given, and may therefore differ from what would have been the correct answer at that time. Where the difference is material, the answer notes it.The practice scoring feature measures wording overlap with the suggested answer. It is not a grade, carries no official weight, and says nothing about whether your reasoning is sound.Errors are possible. If you find one, please tell me and I will correct it.Last reviewed: October 2026