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Corporation merger - employee's separation mandatory?

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robertb


Arresto Menor
Good morning!

if corporation A, B, C are merged into corporation X, are the employees of corporations A, B and C entitled for separation after the merger?
(employees where continually employed by corp. X)

Can an employee refuse employment in corp. X and get a separation pay?

Thanks and God bless

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attyLLL


moderator
a lot depends how these companies merged, and the position of the new corporation. there may have been a sale of assets or a sale of shares.

did x say that seniority is continued?


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robertb


Arresto Menor
Good morning attyLLL.

All branches under different corporate name whose shares of stocks is owned by corporation A where merged into corporation X.
X assumes all assets and liabilities of corporation A and its branches.
All employees will continue working with corp. X and there will also be continuity of tenure.

Will the merger of corp. B to corp. X be considered a closure of an establishment although there is continuity of employment and tenure? (Under section 283 of the Labor Code gives separation pay when an establishment is closed}

Thank for your time and effort.

God bless you.

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attyLLL


moderator
in my opinion, this is a valid merger and there is continuity of employment so there is no basis for separation pay.


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robertb


Arresto Menor
Thank you attyLLL for your opinion.

How about if I am being required to sign a new contract by the new corporation and I refuse to sign, am I still not entitled to separation pay if the new contract is unacceptable to me?

Hindi daw po ako bibigyan ng teaching loads at di papaswelduhin if I dont sign the new contract under the merged corporation.

Thanks and God bless

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attyLLL


moderator
what about the contract is unacceptable?


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robertb


Arresto Menor
I am a regular employee under corporationn A. When A,together with the other corporations were merged into corporation X, corp X wanted me to sign a new employment contract but the terms and conditions are different or unacceptable. (all branches under different corporate name have retired their BIR, business permits and bank account).

I decided not to sign the new contract with corp X (new corp) and they are preventing me to report for work evenif they have not issued a termination paper (for me its a case of constructive dismissal). dahil ayaw ko daw pirmahan ang new contract with corp. X di ko na daw puedeng hawakan ang mga klase na assigned sa akin. And when I reported this morning I was prevented by our security personnel to enter the classroom.

My layman's understanding is, since corp A is no longer inexistence and I did not sign a new employment contract with the new corp X and they prevented me from reporting for work, I am entitled to separation pay because there was no continuity of employment.

Am I still not entitled to separation pay for the services I rendered with corp A?

Thank you for your time and God bless

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robertb


Arresto Menor
Difference in the contract:
Corp. A
teaching services only
3 hours lab. class = 3 units
(if I am paid P200/unit or per hour I will be paid P600 for the 3hrs rendered)

Corp. X (new corp)

Teaching 24 units + 6 hrs consultation + 10 hrs administrative functions (consultation and administrative function may be increase from 16 to 28 hours at their discretion)
3 hours lab. class = 1.5 units
(if I am paid P200/unit or per hour I will only be paid P300 for the 3hrs rendered which is 50% less than I used to received under corp A)

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attyLLL


moderator
i recommend you report the matter to DOLE. you can sign the new contract, and still ask for separation pay. at least you'll still have work.


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robertb


Arresto Menor
On June 24 i decided not to sign the contract and when I asked for a written notice they refused. the following day I was prohibited from attending to my class and my classes were withdrawn. Last June 27 (Monday) to reported for work and again they prohibited me from attending to my classes. I have written them but no reply. they later on refused even to received my letters.

Much that I have the passion for teaching the tainted relationship with my employer made me file a complaint last June 29 at NLRC for Illegal Dismissal - Actual. We will have the first meeting this week for the mediation. I will post whatever updates there may be.

Thank you again for your time.
God bless.

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robertb


Arresto Menor
my employer's representative did not attend the scheduled 1st meeting. we again have another meeting this week.
God bless

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attyLLL


moderator
that's common. sometimes no one still arrives on the second hearing, then a third one will be scheduled 1 month later. enforcing your rights is hard work


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