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Retrenchment Pay: Delayed and On Installment Basis

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Arresto Menor
Hi! Sir / Madam,

Good day!

I am an employee who was retrenched from my previous employer seeking your assistance and clarification regarding the retrenchment process particularly the retrenchment pay. We we're retrenched(mass retrenchment) from our previous company(BPO-Business Process Outsourcing Company) and served our last day on October 31, 2011. As regular employees of the company, we are entitled for retrenchment pay. But according to our company due to its financial status (company also had a mass retrenchment last May 2011 prior to our batch) and with permission from DOLE/NLRC(according to our HR directress, which i doubt), they(company) will release our retrenchment pay on an installment basis for 6 pay-outs within 6 months.

[Below are the agreed schedule for payments:]
1st pay-out Nov 30, 2011
1st half of our 2011 13th month pay

2nd pay-out Dec 20, 2011
2nd half of our 2011 13th month pay

3rd payout Jan 30, 2011
Last pay from the remaining days we rendered that was not included
on our last salary due to cut-off(Oct21-31).

4th pay-out Feb 28,2011
1st part of retrenchment pay

5th pay-out Mar 2011
2nd part of retrenchment pay

6th pay-out April 2011
3rd part of retrenchment pay

Last day, February 28, 2011 our 4th pay-out which is the 1st part of our retrenchment pay, it didn't reflect on our ATM(company provided).We received a call from our company informing them that there would be a delay on our retrenchment pay due to insufficient funds because one of their client failed to pay the company. And release of our retrenchment pay will be extended until JUNE 2012 and as again allowed/permitted by DOLE/NLRC according to our company.

My clarifications would be:

Is it really legal for a company to have its previous employees' retrenchment pay to be in an installment basis? And on a 6 months long installment basis?

My previous company and I had a written agreement signed by both parties regarding the dates / amount of our pay-outs as stated above, but last day(Feb 28,2011-4th pay-out 1st part of retrenchment pay) our company informed us that the releasing of the remaining pays will be extended up until June 2012. They notified us day after the day should they should release the 1st part of retrenchment pay which is Feb 28, 2011.
How about for another delay / extension of release of remaining payouts of our retrenchment pay without any prior notice? Is it also legal?

Do you think that again this is allowed/permitted by DOLE/NLRC(according to our company)?

To which specific office should I coordinate this? Is it DOLE or NLRC or BUREAU OF LABOR RELATIONS?

I hope your good office can help me with my inquiries above.

Hoping for your favorable and immediate response.

Thank you very much and God Bless you!

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this is a gray area. from a practical point of view, something is better than nothing, but the law does require immediate payment so that the termination will be valid. your remedy if you wish to pursue one is to file an illegal dismissal case at nlrc.

you can also ask the company in writing and request for a copy of this supposed dole permission to issue it in 6 months. sounds bogus

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Arresto Menor

Meaning if my company cannot present to me/us a signed documentation by DOLE/NLRC that they allow our company to have our retrenchment pay to be on delayed / installment basis that would be illegal?

Thank you very much!

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