Philippine Bar review · Question

Practice question: Economic and Noneconomic Terms and Conditions

Multiple Choice Hard

Practice question

Economic and noneconomic provisions of a CBA expire on a stipulated date. The parties reach their new agreement eight months later. Neither has agreed on retroactivity. Management claims the law automatically makes every new term effective only on signing; the union claims automatic retroactivity to expiry regardless of the eight-month interval. Which is correct under Article 265?
  1. Management alone fixes retroactivity.
  2. The union alone fixes retroactivity.
  3. The within-six-month automatic rule applies regardless of delay.
  4. No new agreement can ever be valid after six months.
  5. For an agreement beyond six months, the parties must agree on the duration of retroactivity; neither asserted automatic rule resolves it.

Legal references

  • https://library.laborlaw.ph/wp-content/uploads/2023/10/2022.Labor_.Code_.DOLE-edition.pdf — Labor Code Articles 263 [252], 264 [253], and 265 [253-A].

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