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Secondment Agreement Ending

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1 Secondment Agreement Ending on Thu Feb 01, 2018 5:14 pm


Arresto Menor
Here is my current status

Year Seconded : On my 10th year I was seconded to another subsidiary company also in PH from Company A to Company B.

Salary & Benefits : Company B > Company A

Secondment Salary & Benefits : Provided by Company B
- Company A does not settle to Company B
- Company B handles all legal aspect such as BIR, SSS, etc.

Issue : Company A will close down this year.

What is the correct legal application :

1. Company A to pay me retrenchment cost based on Company A salary on my 10th year

2. Company A to pay me retrenchment cost based on current salary with Company B.

3. Continue my tenure until I leave Company so if
Iam now 2nd year with Company B my total tenure is 12 yrs.
Patulong po kung ano ang dapat i-apply sa akin or if meron pa need na iba maliban sa 3 option sa taas?
Need ko din po malaman na kung ano mas ok na option antayin ko muna magshut down is Company A or let them pay me na the retrenchment?


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2 Re: Secondment Agreement Ending on Thu Feb 01, 2018 11:43 pm


Reclusion Perpetua
Let me just get this straight: this is not a case of retrenchment, but of closure of business. Now, on to your query. You will have to be paid separation pay (not retrenchment pay) based on your salary in Company A.

Even though Company B is a subsidiary of Company A, legally speaking they are still two separate entities. This also means that after you get separated from Company A (and get paid of your separation pay), your tenure in Company B reverts back to 0 years, because Company B because you are now considered employed for a different employer. Since you are now on your second year with Company B, your total tenure is only 2 years. Try reading this, I hope this helps you understand the implications of corporations having separate personalities.

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