What is the right pay for employees to be separated due to merging

Hi Atty,

I'd like to know if employees are entitled to redundancy pay - 1 mo per yr of service or separation pay - half month only, in the case below

-Employer declared a merging 2 years ago
-employer updates employees on the ongoing restructuring of the organization
-found out that they are closing the company and transferring some employees to the newly created company as a result of merging(new contract), some will totally lost their job
-all employees will be separated due to cessation and will be paid only half month in every year of service

Question is - the above scenario would mean there is a redundancy and employees should be paid a redundancy pay, but the company is avoiding such the reason a cessation will be done, do employees have the chance to get a redundancy in this case since this is not a totally cessation but a result of merging? Employees felt they are being fooled. Thank you.

It depends on how the "merging" is handled.

One scenario, your current company is being sold to the new company. They termed it as merging but in reality, they are closing the company, the new company just wants to buy your company because of its "brand". with this there is no redundancy pay. Unless you are in the top management, you would not know what is happening except what is being fed to you.

Thank you, Does it mean though we are informed that it is a merging we can just accept as an employee that it is a cessation, we are led to believe from the very start that it is a merging.

Do we have a chance that we can win, in case all employees brought this as a mere case of fraud?
In order to pay a much lesser pay they divert it to cessation instead of merging? The management said they are being transparent but it looks like they are not.

I can't answer you on that. I'm just stating a scenario besides the one you pointed out since there are lots of data not stated like is the merging already effected?, is it a buy-off? (buying the brand name but not the whole operation), will the owner of your company retain shares? will there still be a company (your company) registered in SEC about this? will there be employees transferred?

The quickest way is to ask them on what they filed at DOLE. If you feel that they filed wrong, you can file a case against them and the burden of proof will fall to the shoulder of the company.

Hi, thank you again.
Have searched and found that the company has been bought, The brand, wherein the owners/stockholders hold the big shares in the newly formed company, and the buying company holds only small shares, it is the agreement when the both company merge.
The company is still registered in SEC and the closure has not been started but was about to in a month.
All employees are to be separated but some will be given a new contract in the new company.

We will inquire in DOLE in due time but we are happy to receive advises from you.

Hi Sir, in the recent data that I provide, is there a chance that this will be classified as redundancy or this is merely a closure though there are employees to be transferred to the new company?

In my opinion its redundancy. but I could be wrong.

Thank you Sir for your response

Hi Atty,

The day has come employees are being informed of the cesaation and waiting for the amount of separation pay to give if they will provide the right pay., we have another question, on the support side we are being requested to extend for a few months, they said that we can only get our separation pay once we finished until the extended period of time, we feel it is unfair since the rest of the employees are to be on a garden leave for 30days and receive the pay, while we support would wait, when we demand that we will not continue with the extension and just get the separation pay, the management said that we will be considered resigned thus no separation pay to receive.. is it correct? And plus can we demand for a new contract for the extension since officially the company was ceased thus our work will be considered a new one.. can we have your advise on what shall we do, we feel we are being fooled.

cannot be considered resigned but they can consider you awol. hindi pwedeng kayo ang magdetermine ng last day. the company’s last day is when the company says it is. if na terminate kayo before the last day wala kayong makukuha na separation pay.

Thank you, tama po ba na pag ni close ang isang company ay iba iba ang termination date ng employees? Naiipit kasi kami dahil ayaw kami irelease kasabay ng iba dahil pagtatrabahuhin pa kami ng sobrang dami na trabaho kahit hindi kami ang dapat dahil trabaho yun ng mga tinanggal na, plus may ibang trabaho pa na pinapagawa sa amin na ibang company na, at dun din sa company na namerge.. 3 months pa daw kami bago makakuha ng separation pay at wala pa kasiguraduhan dahil hindi daw namin makukuha yun hanggat hindi namin ginagawa lahat ng pinagagawa nila nakakasama ng loob iniipit kami... yung kasama namin sa support pinayagan nila sumabay sa karamihan ng may separation pay pero kami hindi daw pwede ng walang dahilan sila sinasabi.. isang issue pa ay half month lang ang ibabayad nila which is dapat one month dahil redundancy dahil may naiwan pa na isang company na hinahandle namin at isa pa company yung namerge na company na lilipat na sa opisina ng niclose nila.. panlilinlang ito sa mga empleyado na tinanggal kasi continue naman ang line ng business, ang isinubmit nila sa dole ay cessation pero walang dahilan. Ano ang dapat ko gawin dahil iniipit ako, At yung sa half month lang? Diretso na ba kami sa labor? Mananalo ba kami?

Kung mag reklamo kayo, antayin ninyo after na inalis na kayo and after ninyo makita ang computation ng inyong separation pay. Kung di kayo satisfied sa separation pay, wag ninyong tangapin at dun kayo mag reklamo.

If gumalaw agad kayo ngayon, baka sabihin nila i absorb kayo kaya wala kayong separation pay... di wala kayong makukuha. pag nag resign kayo after kayo mag absorb, wala rin ang separation pay.

Thank you, I am given termination notice na 5 months pa pero ang ni file pala nila sa dole ay 30days lang, may mali duon meaning niloloko ako, kaya gusto ko ng makuha kasabay ng iba na 30days lang ang sep pay pero hindi pa daw pwede kasi 5 months pa, if i do go out sa company before 5 months eh wala daw makukuha, gusto kasi nila gawin ko ang napakaraming trabaho na dapat ay pang apat o limang tao, sa loob ng 5 months, parang unfair sa akin yun dahil baka hindi nila ako iclear gawa ng napakarami nun, pwede ko ba ipaglaban na 30days lang din ako so dapat bayaran nila ako kasabay ng iba? Proof is yung sinubmit nila sa dole na notice? O nagmamatter na dapat ang norice ay from employer regardless kung ano ang nifile nila sa dole about my termination date?

The notice they need to file to DOLE must be at "Least" 30 days notice to the employees it could be more. the 30 days notice is there to help the employee to look for another job. Pero pwede mas matagal. ang tanong, may papers ba binibigay sa inyo na napalitan ang date of separation ninyo?

Yung paper na inissue nila na termination date ko ay for 5 monthspa, though ang ni file sa dole ay 30 days na lang, like ang inissue nila na paper sa akin ay june 2018 pero ang termination date ko na pinasa sa dole ay jan 2018, masusunod pa din ba ang employer? Ang issue po kasi ay ang burden ay ipinapasa sa akin instead of having these done by 4 to 5 persons eh i am tied kasi i have to finish it all, tapos i have no choice daw or else no separation pay

If ni sanction ka or ni terminate ka for not being able to do the job na you claim is too much for you, then you can file a complaint for llegal dismissal but you cannot refuse o do the job. Do the best you can, if sobrang dami mag pa authorize ka ng overtime