Dear Attorney,
I am currently employed under a new agency that absorbed me after my previous agency was replaced by the client. I would like to understand what rights or remedies I may have with regard to my previous agency. Can you please provide legal guidance on what I should do next?
Sincerely,
Concerned Employee
Insights
When an employer transitions from one agency to another and employees are absorbed by the new agency, several legal concepts arise under Philippine law. The main issues pertain to security of tenure, labor contracting regulations, and the possible claims against the former agency. Here's a closer look at these concepts:
Security of Tenure Under the Philippine Constitution and the Labor Code, every employee is entitled to security of tenure. This means that an employee cannot be dismissed without just or authorized cause and due process. Even in the case of agency changes, the employees' rights should be protected, ensuring that there is no wrongful termination or unjust treatment in the transition process. If the previous agency did not follow due process, this could constitute illegal dismissal, and the employee might have the right to file a claim.
Contractual Obligations of the Former Agency The former agency may still be liable for any unpaid benefits or entitlements owed to employees before the transition to the new agency. These may include back pay, 13th-month pay, leave encashments, or other accrued benefits. Employees can claim these through the Department of Labor and Employment (DOLE) or file a complaint for unpaid wages.
Joint and Solidary Liability If the employment relationship was under a legitimate labor contracting arrangement, the principal (client company) and the previous agency may be jointly and solidarily liable for violations of labor standards. This means that employees can seek remedies from either the agency or the client company in case of issues related to labor standards, such as non-payment of benefits, overtime pay, or illegal deductions.
Transition to the New Agency When employees are absorbed by a new agency, it is crucial to review the terms of the new employment contract. The new agency should recognize prior service years in the computation of benefits, such as service incentive leave and retirement pay, as provided by law. Employees should ensure that there is no interruption in their continuous years of service unless explicitly agreed upon and legally permissible.
Possible Remedies Employees may file a complaint with DOLE for illegal dismissal if there was no valid reason for termination by the previous agency. Furthermore, employees can seek assistance from DOLE to claim any unpaid benefits. They may also opt to file a case before the National Labor Relations Commission (NLRC) if mediation fails.
In summary, workers who experience a change in employment agencies have the right to demand proper transition, ensure their benefits are intact, and hold the previous agency accountable for any unpaid entitlements or illegal acts.