Restructuring woes

Dear Atty. Peachy,

I have been working as a marketing manager for a mid-sized company in Makati for the past five years. Recently, due to a series of management changes, my immediate supervisor informed me that my position would be terminated as part of a “restructuring” process. While I understand that corporations sometimes need to make tough decisions, I am concerned about how this affects my rights as a long-term employee.

To date, I have not received any official notice regarding the termination, nor have I been told about any severance package. My understanding is that I should be entitled to a severance pay given my length of service, especially since the termination is being classified as a business decision rather than due to my performance. Could you kindly clarify my rights in this situation and what actions I should take?

Thank you for your assistance.

Reggie

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Dear Reggie,

Under the Labor Code of the Philippines, employees are entitled to security of tenure, which means they cannot be terminated from their employment except for just or authorized cause, and only after they have been afforded an opportunity to be heard. In your case, the restructuring process should be properly documented, and affected employees need to be given proper notice, which is at least 30 days advance notice for terminations due to authorized causes (like redundancy).

If the termination of your services was indeed decided due to restructuring, your employer is required to provide you with a written notice specifying the reason for the termination. This should occur at least 30 days before the date of the effectivity of the termination of your services. If you have not received this notice, it could be argued that the termination process was not followed correctly.

Under Article 298 of the Labor Code, you are entitled to severance pay if your termination is due to redundancy. The computed severance pay amounts to one month’s salary for every year of service. You should verify if the management has a policy in place for severance pay beyond what is mandated by law, as companies sometimes offer better terms.

It is important to seek clarity regarding your employment status. I recommend reaching out to your HR department to inquire about the status of your employment, the rationale behind the restructuring, and any official communication regarding the termination of your services. I suggest that you document all communications for your records.

Throughout this process, maintain a professional demeanor. While it may be tempting to express frustration with the situation, constructive dialogue will be more beneficial in navigating your rights and receiving the appropriate compensation.

I hope this advice helps clarify your rights regarding your employment situation. Do not hesitate to reach out for further information or support as you navigate this restructuring process.

Atty. Peachy Selda-Gregorio