Verbal Termination

Good day Atty! May we seek your assistance on the following?

Our employer is a non-profit corp. Almost two months ago, we were verbally informed by our boss in the US that the company has decided to close the local office supposedly due to severe economic losses and will terminate all the staff members within 1-2 months' time. It's now getting close to the end of that two-month verbal notice on Apr 30. To date, the company has not filed the necessary closure notice with DOLE nor has it served the required written termination notices to us. Management has been claiming that it is not obligated to issue such notices or give separation pay to us per Article 283 of the LC due to the supposed losses. They have instead offered to grant us a smaller severance package to be paid out over several months. None of these offers is in writing. In this situation, does the employer have the right to dictate how much it will pay the employees and the terms of payment? Shouldn't there be a mutual agreement between Management and affected employees on this matter?

Given the above, what legal recourse do we have? What if the company does not release the severance pay after our departure? When the month of May comes in, should we still report to work since we have not been served termination letters and no closure notice has been filed with DOLE? Baka naman they could always deny that they asked us not to report to work anymore effective May 1 at biglang sabihin po nila nag-AWOL kami. Lahat po kasi verbal lang ang pakikipag communicate nila. Kung ganun nga po ang magiging scenario by Apr 30, may habol po ba kami sa kanila? We understand may risk na di na nila ibigay yung separation pay namin once mag-file kami ng complaint sa NLRC. Any advice you can share on the proper course of action we should take will be much appreciated.

if they are not giving your written notice, then you be the one to initiate written communication by writing a letter stating what they said and inquire what will happen next. at least you have a written record.

i recommend you continue reporting to work. even if you receive what they offer, you can still file a money claim or illegal dismissal case afterwards.

Thank you Atty. We will do just that. But of course, should they take our keys to the main door and lock up the office after April 30, then we suppose we are left with no other option but to file the complaints at nlrc.

And to clarify what you said on taking the money and filing a complaint afterwards, are you saying that even after receiving the separation pay from the company over several months, we can still file a complaint as long as we continue to work? But if they do lock up the office and we are unable to continue working, would this actually affect our chances of filing the complaint after we receive the separation pay? Thanks again.

being removed for an authorized cause requires due process. 30 day notice to the employee and to dole. plus separation pay. if less than 1 month for every year of service or less, the company has to prove that it was in financial distress.

if this was not strictly followed, then you will have basis for a case of illegal dismissal.

This is what we presumed. Thank you.