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non-payment of 13th month

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1 non-payment of 13th month on Sun Dec 25, 2011 5:56 pm


Arresto Menor
I have browsed your topics and seems to be our case is unique.

On Dec 21 our HR sent an email to dept heads that they will pay our 13th month in 3 installments next year from January to March, they cite that this was due to economic difficulties but previous to that, on Dec 19 the President of our company announced that our operations were good and told the employees present at that time that we will get 10% salary increase starting next month for regulars and 5% for non-regulars.

I went to DOLE-makati on that same day to inquire what action we employees can take. They gave me a form and a sheet where other employees can sign on. The DOLE officer told me that the email sent to dept heads has to be cascaded to us since the email might not be final, if we did receive such email we have to question its legality, he also told me that I can only file the complaint on Dec 26 since our company has not violated any laws yet.

I explained to my colleagues what transpired at DOLE and they are on board. However, the following day our operations VP talked to them and told them that the company already "notified" DOLE about the installment plan and that the company will handle the complaint by declaring bankruptcy and who knows how long we will get or we will ever be paid, she also said she consulted her lawyer about this scenario, these made my colleagues a bit hesitant.

Now, declaring bankruptcy is not new to them since they always do this when they are not allowed to file a Net Loss at BIR anymore. They sometimes concide this with removing some employees. I reckon that they need to incorporate again by middle of next year.

Any advice on what we can do?

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2 Re: non-payment of 13th month on Wed Dec 28, 2011 6:34 pm


Sometimes something later is better than nothing forever. 13th month pay law requires payment on or before 24 december. if not, there is indeed a violation, but waiting a couple of weeks might have been better than receiving nothing at all.

but since it's all done, then if they don't pay 13th month, you'll have to escalate by filing a money claim at nlrc. if they do indeed file for bankruptcy, file a claim with the receiver.

if they incorporate again a new company, implead it as a runaway shop.

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