Under Philippine labor law, a buyer must honor existing employees’ wages, benefits, tenure, and accrued leave, maintain their social security, health, and retirement contributions, and respect employment contracts and union agreements. This ensures continuity of employment and legal compliance during the acquisition.

When acquiring a business in the Philippines, existing employees’ rights can’t be ignored, and protecting them is both a legal and moral necessity. Buyers must honor all earned wages, leave balances, social benefits (SSS, PhilHealth, Pag-IBIG), and existing employment contracts, including seniority and tenure-based rights. Any changes to terms or layoffs must comply with the Labor Code, or you risk disputes. It can feel heavy, but treating employees fairly during a transition not only keeps you legally safe but also preserves morale and trust which is priceless when you’re trying to keep the business running smoothly after the sale.