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What is the right pay for employees to be separated due to merging

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Rejina


Arresto Menor
Hi Atty,

I'd like to know if employees are entitled to redundancy pay - 1 mo per yr of service or separation pay - half month only, in the case below

-Employer declared a merging 2 years ago
-employer updates employees on the ongoing restructuring of the organization
-found out that they are closing the company and transferring some employees to the newly created company as a result of merging(new contract), some will totally lost their job
-all employees will be separated due to cessation and will be paid only half month in every year of service

Question is - the above scenario would mean there is a redundancy and employees should be paid a redundancy pay, but the company is avoiding such the reason a cessation will be done, do employees have the chance to get a redundancy in this case since this is not a totally cessation but a result of merging? Employees felt they are being fooled. Thank you.

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mikos23


Reclusion Perpetua
It depends on how the "merging" is handled.

One scenario, your current company is being sold to the new company. They termed it as merging but in reality, they are closing the company, the new company just wants to buy your company because of its "brand". with this there is no redundancy pay. Unless you are in the top management, you would not know what is happening except what is being fed to you.

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Rejina


Arresto Menor
Thank you, Does it mean though we are informed that it is a merging we can just accept as an employee that it is a cessation, we are led to believe from the very start that it is a merging.

Do we have a chance that we can win, in case all employees brought this as a mere case of fraud?
In order to pay a much lesser pay they divert it to cessation instead of merging? The management said they are being transparent but it looks like they are not.

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mikos23


Reclusion Perpetua
I can't answer you on that. I'm just stating a scenario besides the one you pointed out since there are lots of data not stated like is the merging already effected?, is it a buy-off? (buying the brand name but not the whole operation), will the owner of your company retain shares? will there still be a company (your company) registered in SEC about this? will there be employees transferred?

The quickest way is to ask them on what they filed at DOLE. If you feel that they filed wrong, you can file a case against them and the burden of proof will fall to the shoulder of the company.


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Rejina


Arresto Menor
Hi, thank you again.
Have searched and found that the company has been bought, The brand, wherein the owners/stockholders hold the big shares in the newly formed company, and the buying company holds only small shares, it is the agreement when the both company merge.
The company is still registered in SEC and the closure has not been started but was about to in a month.
All employees are to be separated but some will be given a new contract in the new company.

We will inquire in DOLE in due time but we are happy to receive advises from you.

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Rejina


Arresto Menor
Hi Sir, in the recent data that I provide, is there a chance that this will be classified as redundancy or this is merely a closure though there are employees to be transferred to the new company?

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mikos23


Reclusion Perpetua
In my opinion its redundancy. but I could be wrong.

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Rejina


Arresto Menor
Thank you Sir for your response

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Rejina


Arresto Menor
Hi Atty,

The day has come employees are being informed of the cesaation and waiting for the amount of separation pay to give if they will provide the right pay., we have another question, on the support side we are being requested to extend for a few months, they said that we can only get our separation pay once we finished until the extended period of time, we feel it is unfair since the rest of the employees are to be on a garden leave for 30days and receive the pay, while we support would wait, when we demand that we will not continue with the extension and just get the separation pay, the management said that we will be considered resigned thus no separation pay to receive.. is it correct? And plus can we demand for a new contract for the extension since officially the company was ceased thus our work will be considered a new one.. can we have your advise on what shall we do, we feel we are being fooled.

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lukekyle


Reclusion Perpetua
cannot be considered resigned but they can consider you awol. hindi pwedeng kayo ang magdetermine ng last day. the company’s last day is when the company says it is. if na terminate kayo before the last day wala kayong makukuha na separation pay.

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