ABC Tomato Corporation, owned and managed by three (3) elderly brothers and two (2) sisters, has been in business for 40 years. Due to serious business losses and financial reverses during the last five (5) years, they decided to close the business.
1. As counsel for the corporation, what steps will you take prior to its closure? 2.5%
2. Are the employees entitled to separation pay? 2.5%
If the reason for the closure is due to old age of the brothers and sisters:
1. Is the closure allowed by law? 2.5%
2. Are the employees entitled to separation benefits? 2.5%
1 comment:
X.
1.
Written notice must be served on the workers and the Department of Labor and Employment at least one month before the intended date of closure.
2.
The employees are not entitled to separation pay because the closure of the business was due to serious financial losses.
1. If the closure is due to old age of the brothers and sisters, the closure is still allowed by law so long as such closure is in good faith. Just as no law forces anyone to go into business, no law compels anybody to stay in business.
2. In such case, the employees are entitled to separation benefits.
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