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Sale of Business Assets and Absorption of Employees

prnd32 · 5 · 1288

prnd32

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I'm planning to sell the assets of my business to a friend, totally transferring the operation and management of the business to him,  with the condition that he will absorb my current employees, and will give them (employees) the same salary and benefits.  The employees agree to this arrangement.  The question is, am I legally obligated to provide separation pay to the employees in case the sale materializes?   

TIA for your replies.


Jayumaster

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Reply #1 on: Dec 03, 2014, 09:55 PM
Not an expert, better consult with a lawyer and or with DOLE.

Pero experienced that before. Binili ng ibang entity ang business. Siguro may condition din na iretain ang employees (pwede ring wala pero nagdecide na si buyer na iretain sila) (Confidential kasi ito)

The new owner gave the employees a choice:
1. Will provide separation pay. (do not know if si old or new owner magbabayad) But will erase the number of years in service and pay will reset back to minimum wage. Parang newly employed ulit.
2. No separation pay. Retain as is the current salary and years of service.

Just shared my experience. But didn't answer the question. My opinion based on that experience, not obliged. Need to consult a lawyer who specializes on merger/acquisition.

BTW, pagkabili ng business, nagpalit ito ng pangalan.


prnd32

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Reply #2 on: Dec 04, 2014, 07:29 PM
^ Thanks @jayumaster for sharing your experience.   What did the employees eventually choose? 


Jayumaster

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Reply #3 on: Dec 11, 2014, 12:23 AM
Unanimous number 2! Siguro they didn't like the thought of returning to minimum wage.
« Last Edit: Dec 11, 2014, 12:25 AM by Jayumaster »


gang13

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Reply #4 on: Dec 13, 2014, 03:08 PM
Im not an expert. I think u need to ask a labor lawyer about this. But heres what I think:
If your company is a corporation, then just sell the corporation with its assets to new owners. Mas simple ito, all your employees still work for the same company, mga board of directions/shareholders lang nagbago. So no separation pay required. Parang Phil Airlines from Lucio Tan to Ramon Ang.
If in case your biz is a sole prop. and the asset is under your name. Then if u sell your biz, u have to close your biz and he has to open a new biz and buy your asset. So as a biz owner who closes, I think u are obliged to give your employees a separation pay required by dole. If this is the case, new owner is not obliged to hire any of your employees.
Suggestion ko lang, since nagkakaintindihan naman kayo ng buyer at employees. Make ur employees sign nalang papers. One is a resignation letter sa company mo. Kasabay nito may Job offer/contract narin kayo between na new owner and your employees. Truth is, kung matalino ang employees he will still question this bec of his tenure.


 


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