Free Legal Advice Philippines

Disclaimer: This web site is designed for general information only and does not create attorney-client relationship. Persons accessing this site are encouraged to seek independent counsel for legal advice regarding their individual legal issues.

Log in

I forgot my password




You are not connected. Please login or register

Change of Company Name/Eligibility for Separation Pay

View previous topic View next topic Go down  Message [Page 1 of 1]

kurog


Arresto Menor
My company is changing its business name but retaining its line of business. Everything will be the same except the name of the company. However, we were told that we will be signing a new contract under the new business name and that our tenure/years of service will be back to ZERO. We would like to know what our claims will be regarding this matter.

If our years of service will be reset to zero, are we eligible for a separation pay (from the previous company) mandated by the Labor Code of the Philippines? If so, what will be the computation? Or will it be the company's discretion to pay us anything for the resetting of our years of service?

View user profile

Patok


Reclusion Perpetua
Yes you are entitled for a separation pay. It shouldl be 1 month salary X every year of service. Anything lower, you can complain to DOLE.

View user profile

kurog


Arresto Menor
Patok wrote:Yes you are entitled for a separation pay.  It shouldl be 1 month salary X every year of service.  Anything lower, you can complain to DOLE.

Thanks, Patok. Is there a particular article in the Labor Code we could refer to just in case our employer doesn't follow this rule? Is it Art. 283 regarding Closure of establishment and reduction of personnel?

View user profile

Patok


Reclusion Perpetua
yes, arti. 283.

View user profile

kurog


Arresto Menor
Patok wrote:yes, arti. 283.

Thanks.

What if the new company decides to absorb us and retain our tenure? Would they be legally allowed to reduce our salary and/or take away some of our benefits?

Or, what if they decide to absorb us, pay us separation pay, reset our tenure back to zero but let us sign a new contract wherein we will start off as contractual/probationary and reduce our salary and benefits? Is that legal?

I hope you get my point.

View user profile

Patok


Reclusion Perpetua
if they decide to absorb you and retain your tenure, then it has to be in writing and no, your salary/benefits can not be decreased.

if they decide to absorb you and pay you separation pay, then they can reset your salary, that's legal as all of you will be new employees.

View user profile

stargazer


Arresto Mayor
company A was bought by company B. existing employees were decided to be transferred to company B.

employees are now asked to sign a new contract under company B retaining their compensations and benefits.

questions:
1) are they still entitled for separation pay from company A
2) what if they don't want to sign, what are their options?

View user profile

Patok


Reclusion Perpetua
It must be clear in the new contract if their years of services will be continued in the new company. If not, then they must be paid for their years of service before they transfer to the new company.

If employee doesn't want to sign, then they are deemed resigned. Only those that will sign will get the benefit if the years of service is paid.

View user profile

stargazer


Arresto Mayor
Patok wrote:It must be clear in the new contract if their years of services will be continued in the new company.  If not, then they must be paid for their years of service before they transfer to the new company.

If employee doesn't want to sign, then they are deemed resigned.  Only those that will sign will get the benefit if the years of service is paid.


For employees that won't sign, it means they are resigned? They won't get separation pay?

View user profile

kurog


Arresto Menor
Patok wrote:if they decide to absorb you and retain your tenure, then it has to be in writing and no, your salary/benefits can not be decreased.

if they decide to absorb you and pay you separation pay, then they can reset your salary, that's legal as all of you will be new employees.


Thanks Patok.

Our company decided to absorb us and retain our tenure including our salary and benefits. What's even better is that they're giving us signing bonuses for signing the new contract. The only downside of the transition though is having to read a 100-page document and having to sign each page. Lol.

Everything with the new contract is okay but I find one thing questionable. The contract says that "the company won't pay it's employees any amount in the form of separation pay in case of employee's dismissal due to disability". Is that legal?

I've discussed it with my colleagues and was told that it's because of our company's insurance policy? But still, it doesn't sound right.

View user profile

Patok


Reclusion Perpetua
that's good kung ganon.

regarding that disability clause, i'm not a lawyer but it doesn't sound right. Maybe you could consult DOLE.

View user profile

erlaz


Arresto Menor
Our company,which is a plastic manufacturing company,change their company name last year.But same line of business,same owner, and we even manufacture the same items.The owner told us they can't pay us anything 'cause they are bankrupt.But if they really are bankrupt why are we still manufacturing items...?!?
 What can we do?
 Can we file a case against them?
 Can we force the owner to compensate us for our years of service?

View user profile

HR Adviser


Reclusion Perpetua
You can file for money claims at NLRC

View user profile

erlaz


Arresto Menor
HR Adviser wrote:You can file for money claims at NLRC



What is a money claims?

View user profile

baboykanding


Arresto Menor
Same with the first question. We will sign new contract, but can our company remove our longevity bonus and transfer it to our basic pay. Our total salary is not decreased but without the longevity bonus anymore.

View user profile

Sponsored content


View previous topic View next topic Back to top  Message [Page 1 of 1]

Permissions in this forum:
You cannot reply to topics in this forum