Your Opinion regarding company bankruptcy/layoff

[artpogi]

I have a friend who works for a publishing firm and they were told that their company is going bankcrupt and they will not get any severance (?) pay/benefits because of the bankruptcy. Dahil wala na nga pera eh.

But.... the owner of the said publishing firm owns several companies and the publishing firm is just one of them. The other companies are doing well financially except for this particular publishing firm.

Ang sabi ng friend ko, wala daw sila makukuha benefits because the publishing firm is going bankrupt nga.

Ang argument/question naman ng friend ko, tama ba na wala silang makukuhang benefits even though yung ibang kumpanya ng boss nila eh financially capable naman of paying their severance pay/benefits (I don't know if severance is the correct term).

Sensya na kung medyo magulo.

Ano po opinyon nyo dito sa sitwasyon na ito?

thanks

[nugundam93]

hmmm. interesting. but i think your boss might counter with "ang pera ni juan ay kay juan, at ang kay pedro ay kay pedro" argument...

[CVT]

AFAIK, a corporation is considered an entity. So, its capacity to pay is limited only to itself.... Sad state of affairs....

:starwars:

[nitrox]

The publishing firm should have a number of available assets (machinery, equipment, land/building, vehicles, etc) which they can liquidate and use as payment for the employee's severance pay (assuming walang utang sa banko or hindi naka-mortgage ung mga assets ng publishing firm).

[empy]

di ako expert sa philippine laws on incorporation, so maybe one of our tsikot attorneys can correct any misinformation...

but most countries limit liability to the assets of the corporation (assuming it is incorporated), so you couldn't go after the owner's assets. if the publishing company is part of a conglomerate with the other businesses (kind of like how Disney has ABC, ESPN, Pixar, etc), then the entire entity is liable for the liquidated business's debts.

also, when a company is liquidated, the cash raised is used to pay creditors first (which would include outstanding salaries payable), and shareholders second. however, the company policy or employee benefits agreement should clearly state beforehand how much, if any, employees are entitled in severance if laid off. if it's not, then the employer can grant severance at its discretion, which could mean it decides to give zero severance.

[uls]

employees tend to think that way. They see the owner and the company as one and the same.

dito sa atin, pag bumili ng bagong sasakyan ang amo, bubulong ang mga empleyado "si sir kaya bumili ng bagong sasakayan pero hindi kaya taasan ang sweldo natin"

sentiments like that are pressure-cooked and next thing u know meron na full-blown labor strike.

[roninblade]

di pwede kunin sa ibang company yung money kahit same lang ang owner.

[MaNgo_Crepe]

[quote=artpogi;686800]I have a friend who works for a publishing firm and they were told that their company is going bankcrupt and they will not get any severance (?) pay/benefits because of the bankruptcy. Dahil wala na nga pera eh.

Sir artpogi nd p b surething na magfofold-up? i suggest he file his resignation....just to make sure n may makkuha sha.....maybe nagfile p lang ang company ng bankruptcy and nde pa lang to na GaGrant...Once n na grant na yan...i think wla cla talagang makkuha....

[niky]

Resignation doesn't entitle you to the same benefits as lay-off. If you're laid-off, depending on the circumstances, the company owes you severance pay.

If you resign... sorry.

[uls]

Ya, that's why many people would rather NOT resign.

Even if they hate the job, they would just perform badly and hope they get fired so they can collect severance pay.

[artpogi]

Resignation doesn't entitle you to the same benefits as lay-off. If you're laid-off, depending on the circumstances, the company owes you severance pay.

If you resign... sorry.

again thanks for all the opinions

yan din nga ang dilemna nya eh, matagal na sya sa company, around 10 years na, sayang yung makukuha nya (kung meron) kung sakaling mag layoff na lang to save the company.

If he resigns, he gets nothing

[theveed]

Si GMA nga ayaw magresign eh hehehe.

Hirap kasi sa case na to, the cause for retrenchment is bankruptcy, not redundancy.

[MaNgo_Crepe]

Resignation doesn't entitle you to the same benefits as lay-off. If you're laid-off, depending on the circumstances, the company owes you severance pay.

If you resign... sorry.

yeah ur ryt that is IF the issue was a mere cost cutting only...definitely there would be a retrenchment..BUT the main query was regarding the companys' BANKRUPTCY ...wherein u dont have any option...but if ur lucky enough to know the companys' bankruptcy b4hand...and u tend to file for an early retirement then u'l still get paid...depending on the length of service....

[BoyFerrari]

I think that's the same thing that happened in the U.S. regarding ENRON and WORLDCOM, both companies went bankrupt.

Please read this article about workers who get nothing after their company went broke:

http://www.mindfully.org/Industry/Wo...fer30sep02.htm

[empy]

yeah ur ryt that is IF the issue was a mere cost cutting only...definitely there would be a retrenchment..BUT the main query was regarding the companys' BANKRUPTCY ...wherein u dont have any option...but if ur lucky enough to know the companys' bankruptcy b4hand...and u tend to file for a resignation..then u'l still get paid...depending on the length of service....

this doesn't make sense to me kapatid....diba pag nagresign ka, you are voluntarily terminating your contract of employment? regardless of the reason, you're the one telling your company that you no longer wish to work for them. why would the company be obligated to pay me severance if i told them that?

I think that's the same thing that happened in the U.S. regarding ENRON and WORLDCOM, both companies went bankrupt.

Please read this article about workers who get nothing after their company went broke:

http://www.mindfully.org/Industry/Wo...fer30sep02.htm

masakit sa lahat, not only did the Enron employees lose their jobs but they lost their entire retirement savings that they had invested in company stock. unacceptable behavior by Enron management, but poor financial planning by the employees that put all their eggs in one basket.

[DoctorDoom]

but if ur lucky enough to know the companys' bankruptcy b4hand...and u tend to file for a resignation..then u'l still get paid...depending on the length of service....

Being laid-off and filing for a resignation are two different things.

When you resign, you are NOT entitled to severance pay. Severance pay, from the name itself, is payment to you because you are being "severed" by the company involuntarily. Resignation - you are severing yourself from the company by your own free will, therefore the company is not obligated to pay you when you decide to leave the company on your own.

One alternative is filing for early retirement instead of resignation. However, early retirement is a company-specific benefit with defined qualification requirements.

[badsekktor]

Had this similar situation, was employed by a certain company that was also going down the pits due to some uncontrollable reasons, I did try to stay hoping to get a severance pay, but things went from bad to worst, bottomline I did resign good thing I found a replacement job, whew!

So at the first sign of bad sign in the company you are working for, better start updating your resume and shop around for a new job.

the best advice that you could give to your friend.... ang problema pag medyo may age na yun friend mo at di na marketable ang skills nya... tapos kung wala pa naipon para magstart ng business... hmmm.... kawawa naman yun friend mo...

[MaNgo_Crepe]

Being laid-off and filing for a resignation are two different things.

When you resign, you are NOT entitled to severance pay. Severance pay, from the name itself, is payment to you because you are being "severed" by the company involuntarily. Resignation - you are severing yourself from the company by your own free will, therefore the company is not obligated to pay you when you decide to leave the company on your own.

One alternative is filing for early retirement instead of resignation. However, early retirement is a company-specific benefit with defined qualification requirements.

OH sorry...that's what i meant...the early retirement program...self employed kz....