RETIREMENT PLAN AFTER MERGER

Hi.

We currently belong to a company that have an existing retirement program (which is higher that what is required by RA 7641) for its employees as a part of its employee benefit programs.

Due to some strategic re-alignment, our department is being absorbed/transferred to another company with the condition that our years of service will be carried over to the new company and there will be no change in our compensation, benefits and allowances.

Unfortunately, we were informed that the new company does not have any retirement programs in place aside from what is mandated by law.

Our question is, what are our legal rights in terms of this retirement program. Does the merger/transfer removes our right from our previous company's retirement program?

i'm not sure of my answer.

the rule here is non-diminution of benefits meaning any benefit or compensation being received by the employee previously may not be taken away.

in this case, there is an expected benefit, but i believe it is conditional on several factors including length of service. so in my opinion, you weren't really enjoying the benefit yet and therefore, the rule won't apply.

if you want to challenge it, write a letter to the management and you can elevate to a complaint at DOLE.