Change of Company Name/Eligibility for Separation Pay

My company is changing its business name but retaining its line of business. Everything will be the same except the name of the company. However, we were told that we will be signing a new contract under the new business name and that our tenure/years of service will be back to ZERO. We would like to know what our claims will be regarding this matter.

If our years of service will be reset to zero, are we eligible for a separation pay (from the previous company) mandated by the Labor Code of the Philippines? If so, what will be the computation? Or will it be the company's discretion to pay us anything for the resetting of our years of service?

Yes you are entitled for a separation pay. It shouldl be 1 month salary X every year of service. Anything lower, you can complain to DOLE.

Patok wrote:Yes you are entitled for a separation pay.  It shouldl be 1 month salary X every year of service.  Anything lower, you can complain to DOLE.

Thanks, Patok. Is there a particular article in the Labor Code we could refer to just in case our employer doesn't follow this rule? Is it Art. 283 regarding Closure of establishment and reduction of personnel?

yes, arti. 283.

Patok wrote:yes, arti. 283.

Thanks.

What if the new company decides to absorb us and retain our tenure? Would they be legally allowed to reduce our salary and/or take away some of our benefits?

Or, what if they decide to absorb us, pay us separation pay, reset our tenure back to zero but let us sign a new contract wherein we will start off as contractual/probationary and reduce our salary and benefits? Is that legal?

I hope you get my point.

if they decide to absorb you and retain your tenure, then it has to be in writing and no, your salary/benefits can not be decreased.

if they decide to absorb you and pay you separation pay, then they can reset your salary, that's legal as all of you will be new employees.

company A was bought by company B. existing employees were decided to be transferred to company B.

employees are now asked to sign a new contract under company B retaining their compensations and benefits.

questions:
1) are they still entitled for separation pay from company A
2) what if they don't want to sign, what are their options?

It must be clear in the new contract if their years of services will be continued in the new company. If not, then they must be paid for their years of service before they transfer to the new company.

If employee doesn't want to sign, then they are deemed resigned. Only those that will sign will get the benefit if the years of service is paid.

Patok wrote:It must be clear in the new contract if their years of services will be continued in the new company.  If not, then they must be paid for their years of service before they transfer to the new company.

If employee doesn't want to sign, then they are deemed resigned.  Only those that will sign will get the benefit if the years of service is paid.

For employees that won't sign, it means they are resigned? They won't get separation pay?

Patok wrote:if they decide to absorb you and retain your tenure, then it has to be in writing and no, your salary/benefits can not be decreased.

if they decide to absorb you and pay you separation pay, then they can reset your salary, that's legal as all of you will be new employees.

Thanks Patok.

Our company decided to absorb us and retain our tenure including our salary and benefits. What's even better is that they're giving us signing bonuses for signing the new contract. The only downside of the transition though is having to read a 100-page document and having to sign each page. Lol.

Everything with the new contract is okay but I find one thing questionable. The contract says that "the company won't pay it's employees any amount in the form of separation pay in case of employee's dismissal due to disability". Is that legal?

I've discussed it with my colleagues and was told that it's because of our company's insurance policy? But still, it doesn't sound right.

that's good kung ganon.

regarding that disability clause, i'm not a lawyer but it doesn't sound right. Maybe you could consult DOLE.

Our company,which is a plastic manufacturing company,change their company name last year.But same line of business,same owner, and we even manufacture the same items.The owner told us they can't pay us anything 'cause they are bankrupt.But if they really are bankrupt why are we still manufacturing items...?!?
 What can we do?
 Can we file a case against them?
 Can we force the owner to compensate us for our years of service?

You can file for money claims at NLRC

HR Adviser wrote:You can file for money claims at NLRC

What is a money claims?

Same with the first question. We will sign new contract, but can our company remove our longevity bonus and transfer it to our basic pay. Our total salary is not decreased but without the longevity bonus anymore.

Hello Sir,

I would like to ask our company is changing its business name but retain its line of business. Everything will be the same except the name of the company. Our tenure still continues. there's no update if there's a new contract to sign.

are they going to pay us for our tenure? my co-worker told me that when they are in other companies and change their names from Company A to Company B. they are being paid for their tenure and then their tenure will starts to zero again.

question
is it a discretion of the company to pay us.
or as long as our tenure continues, they are not required to pay us

Hi Mam/ Sir... Inquire lang po sana ako... Frequent po kasi ang pag-change ng company name namin.. Last time, pinapirma kami ng contract stating na we will be under a 'new company' (company A) - year 2014. We signed the contract and given separation but until now, we were not given a copy of it. All documents, including COE whenever we request, is under the new company name.

Until recently po, Jan 2017, nagchange na naman po sila ng company name (companmy B)... This time, no contract were given or served to be signed by us, although new IDs were issued under the new company name na. Lagi po ako nagchecheck ng contribution ko sa sss and all, only to find out na ang company name na declared nila since 2014 is yung company name na handle nila this year, 2017.

Ang tanong ko po, tama po ba yun at legal? Kaya naman po pala ni isa sa amin ay walang na-approved sa mga application namin e.g loans, eh dahil false information po yung nasa COE na binibigay nila samen since 2014 (company A), wherein, as shown on SSS website for example, 2014 pa ang company B at non-existing ang company A. Even sa sec po when we checked, no company A is listed, only company B.

Please advise...

hello i have a question same situation here.
ive been in a company for almost 10 yrs.
the company name starts momentum data east philippines 2006-2007
after then absorb by sourcecorp phils. then they registred the name sa sec 2007-2010
then another merged again the hov in india and the sourcecorp phils to shov 2010-2015 (no change of name in sec)
then again theres a rumors we merged again back to us shov to banctec. 2015-2017 (no change of name in sec)
then this year 2017 this month they welcome the new name of the company shov to exela (no change of name sa sec)

as a tenured to our company is their a way to file a case since they change the company name. they never told us about this? but some of us thinking they must paid our service since they change the name.

is there any laws about this? our company is an bpo located here in sbma subic

can u give me some advice

thank you

ps
no contract na pinirmahin liban dun sa pagiging regular namin sa work

you have to find out first if nag change lang ng name or ng entity. Parang tao lang yan, if nagpalit lang ng pangalan, wala ka dapat matanggap, if ibang tao na talaga, you may file for money claims sa nlrc

to reclusion:
papano ko malalaman?

ask ka sa sec or sa dti