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Account Sold to Other Firm - Is Separation Pay should be provided?

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Arresto Menor
I've been with the BPO company for over 6 years now. And just recently, we received an email stating that our department will be sold to a financial firm company based in US. We were advised that transition will take effect before this year ends and we will acquire the new company name with our IDs, badges, 202 form..etc.

Under the new umbrella, they said our benefits will be the same and nothing is going to change until the transition is done. Same with the location, we will still occupy the same floor and building where our previous company is located.

We are hearing that we will be SFC'd from the previous company, receive our last paycheck and our backpay. That being said, our contract will be terminated and we will sign a new contract for the new company.

Is it legal that our contract will be terminated due to these changes?
If yes, then aren't we suppose to receive separation pay aside from the backpay since we will be separated from the company involuntarily?
What if after a year we've been acquired they decided to adjust/modify our benefits/incentives, would that be against our labor codes?

Hope to hear your advice.

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Reclusion Perpetua
If in effect the new account or company will list you as continuously employed from the previous company (6 yrs in previous continuing to new) then you are not entitled to separation pay.

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Arresto Menor
The only time that you are due for any sepration pay for years of service is if there is any changes in monetarily meaning that your current salary will be lower with the new company then a new contract and agreement needs to be ratified with both you and the new company. If it is a continuation employment including the salary structure, tenureship and other benefits then a new contract is not needed.

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